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Tidewater Community College Profile Page C-151 Grantee: Tidewater Community College (TCC) Grant Title: Hampton Roads Workforce Development Board Incumbent Dislocated Worker Skill Shortage II Demonstration Program Grantee Service Area The Tidewater Community College (TCC) service area included five Virginia counties and one North Carolina county. Through 2002, all of the counties were part of the Norfolk-Virginia Beach-Newport News, Virginia-North Carolina (VA-NC) Metropolitan Statistical Area (MSA). All comparative information in this profile represents the entire Norfolk-Virginia BeachNewport News, VA-NC MSA. Figure 1 Skill Shortage II Demonstration Program Evaluation Final Report April 2005 Public Policy Associates, Incorporated Tidewater Community College Profile Page C-152 Table 1: Grantee Service Area MSA Facts Region: State: Counties: 2002 Metropolitan Status Northeast Virginia Gloucester Isle of Wight James City Mathews York North Carolina Currituck Norfolk-Virginia Beach-Newport News, VANC MSA Norfolk-Virginia Beach-Newport News, VANC MSA Norfolk-Virginia Beach-Newport News, VANC MSA Norfolk-Virginia Beach-Newport News, VANC MSA Norfolk-Virginia Beach-Newport News, VANC MSA Norfolk-Virginia Beach-Newport News, VANC MSA State: County: Key Industries and Employment As reported by the U.S. Census Bureau, nongovernmental employment in the TCC target area (Norfolk-Virginia Beach-Newport News, VA-NC MSA) is concentrated in five broad sectors: manufacturing, retailing, health and social services, accommodations and food services, and construction. These five sectors comprised 56 percent of total nongovernmental employment in the Tidewater region during the second week of March 2001. This area has extensive government employment, particularly employment by and for the U. S. Navy. As noted below in Table 2, this area also included more than one-half million individuals who were employed by the private sector in 2001. The average annual salary or wage for nongovernmental employees in this area in 2001 was $27,685. The manufacturing and health care sectors each employed more than 10 percent of the region’s workforce, and annual salaries or wages for health care and manufacturing in 2001 were $31,548 and $40,747, respectively. These data are the most recent detailed subnational industrial information that is available from the U.S. Census Bureau’s annual report, County Business Patterns. This annual report covers most of the country’s economic activity, excluding data on self-employed individuals, employees of private households, railroad employees, agricultural production employees, and most government employees. Beginning in 1998, data have been tabulated by industry as defined in the North American Industry Classification System: United States, 1997 (NAICS). Skill Shortage II Demonstration Program Evaluation Final Report April 2005 Public Policy Associates, Incorporated Tidewater Community College Profile Page C-153 Table 2: Nongovernmental Employment by Major Sector in the Grantee Service Area, 2001 Nongovernmental Employment Industry Total Retail Health care Accommodation & food services Manufacturing Construction (March 12, 2001) 573,634 85,830 68,290 61,989 61,423 43,642 Annual Payroll ($1,000) 15,880,965 1,685,886 2,154,436 659,378 2,502,796 1,354,501 Number of Establishments 34,213 5,962 2,938 2,986 1,028 4,165 % of all Nongovernmental Employment 100.0% 15.0% 11.9% 10.8% 10.7% 7.6% Average Annual Wage/Salary $27,685 $19,642 $31,548 $10,637 $40,747 $31,037 Source: U.S. Bureau of the Census, County Business Patterns, 2001. Shipbuilding. Data from the U.S. Census Bureau’s 2001 County Business Patterns indicate that the Tidewater area of Virginia and North Carolina has a widely diversified manufacturing sector. An important component of the manufacturing base, however, is devoted to shipbuilding and ship repair, mainly for the U.S. Navy. Examination of Table 3, below, reveals that approximately one-third of manufacturing employment within this area is in ship and boat building activities, and these positions are relatively well paid. The average annual wage or salary for the area’s 20,000 shipbuilders in 2001 was $49,199. Skill Shortage II Demonstration Program Evaluation Final Report April 2005 Public Policy Associates, Incorporated Tidewater Community College Profile Page C-154 Table 3: Manufacturing and Shipbuilding Employment in the Tidewater Area, 2001 Employees (3/12/01) Manufacturing Primary metal mfg.* Ship & boat building Food mfg. Computer & electronic product mfg. All other transportation equipment mfg. Machinery mfg. Fabricated metal product mfg. Printing & related support activities Nonmetallic mineral product mfg Beverage & tobacco product mfg. Chemical mfg. Plastics & rubber products mfg. Furniture & related product mfg. Wood product mfg. Paper mfg. Electrical equip, appliance, & component mfg. Apparel mfg. Textile product mills 61,423 1,000-2,499 20,003 7,776 Annual Payroll ($1,000) 2,502,796 NA 984,135 253,025 Number of Establishments 1,028 9 42 76 % of Total Manufacturing Employment 100.0% NA 32.6% 12.7% Annual Average Salary $40,747 NA $49,199 $32,539 5,462 150,720 34 8.9% $27,594 4,277 3,915 3,334 2,057 2,049 1,347 1,135 1,002 931 879 743 246,988 166,792 117,779 57,533 76,394 61,795 55,908 31,572 24,844 26,623 31,405 19 59 155 132 60 10 32 30 86 40 11 7.0% 6.4% 5.4% 3.3% 3.3% 2.2% 1.8% 1.6% 1.5% 1.4% 1.2% $57,748 $42,603 $35,327 $27,969 $37,284 $45,876 $49,258 $31,509 $26,685 $30,288 $42,268 621 437 347 21,950 12,365 8,075 20 35 37 1.0% 0.7% 0.6% $35,346 $28,295 $23,271 Source: U.S. Bureau of the Census, County Business Patterns, 2001. * Estimated. The number of employees in this industry category is estimated due to suppression of details in order to maintain employer confidentiality. Average salary is slightly underestimated due to suppression of payroll data for smaller employers. Unemployment As shown below in Figure 2, the unemployment rate for the six-county TCC target area peaked in mid-2003 at about 4.8 percent, but then declined to 3.7 percent by the end of 2003. Similar high rates are recorded for the month of January in previous years. Trends, as well as the actual levels of unemployment in the target area and the average for the state of Virginia, seem to Skill Shortage II Demonstration Program Evaluation Final Report April 2005 Public Policy Associates, Incorporated Tidewater Community College Profile Page C-155 follow closely. However, the unemployment rate for the Tidewater target area has been consistently and considerably lower than the rate for the entire nation. Figure 2 Grantee Service Area Unemployment Rate January 2000 - January 2004 Unemployment Rate (Percentage) 7 6 5 4 3 2 1 0 Source: U.S. Department of Labor, Bureau of Labor Statistics, 2004. Unemployment rates as of January 2004 for each Virginia and North Carolina county are illustrated in Figure 3, below. As of January 2004, the TCC target area had an average unemployment rate of 4.5 percent, higher than 3.9 percent average unemployment rate for the state of Virginia but considerably lower than the nationwide unemployment rate of 6.3 percent Skill Shortage II Demonstration Program Evaluation Final Report Ja n M 200 ar 0 M 200 ay 0 2 Ju 000 l2 Se 00 p 0 N 200 ov 0 2 Ja 00 n 0 M 200 ar 1 M 200 ay 1 2 Ju 001 l2 Se 00 p 1 N 200 ov 1 2 Ja 00 n 1 M 200 ar 2 M 200 ay 2 2 Ju 002 l2 Se 00 p 2 N 200 ov 2 2 Ja 00 n 2 M 200 ar 3 M 200 ay 3 2 Ju 003 l2 Se 00 p 3 N 200 ov 3 2 Ja 00 n 3 20 04 Service area Virginia U.S. April 2005 Public Policy Associates, Incorporated Tidewater Community College Profile Page C-156 Figure 3 Unemployment Rates by County, Not Seasonally Adjusted, Virginia and North Carolina, February 2004 Source: U.S. Department of Labor, Bureau of Labor Statistics, 2004. Lower Living Standard Income Level The adjusted 2002 Lower Living Standard Income Level for a family of four (LLSIL4) in the Norfolk-Virginia Beach-Newport News, VA-NC MSA is $26,900. This figure was chosen for use as the standard for the five-county TCC target area. As discussed earlier, the five largest industry sectors in the five-county TCC target area of Virginia and North Carolina are manufacturing, retail, health and social services, accommodations and food services, and construction. Persons employed in retail services in the target area in 2001 earned an average of $19,642, and those employed in the accommodations and food service industry earned even less ($10,637). Both of these sectors fall considerably below the area’s $26,900 LLSIL4, and neither of these sectors was targeted by the TCC. In contrast, the TCC has targeted manufacturing within its service area. As noted below in Figure 4, manufacturing generated the highest average salaries in 2001, considerably above the target areas 2002 LLSIL4 level. Skill Shortage II Demonstration Program Evaluation Final Report April 2005 Public Policy Associates, Incorporated Tidewater Community College Profile Page C-157 Figure 4 Average Annual Salary 2001 and 2002 LLSIL4 for the Largest Industry Sectors in the Grantee Service Area 2002 LLSIL4 $45,000 $40,000 $35,000 $40,747 $31,548 $31,037 $27,685 $19,642 $10,637 Salary $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Manufacturing Retail Health & social Accommodations services & food services Construction All industries Industry Source: U.S. Bureau of the Census, County Business Patterns, 2001; U.S. Department of Labor, Employment, and Training Administration, 2002. Occupations Targeted by Grantee TCC focused it efforts on the manufacturing and shipbuilding industries. As can be seen in the analysis above, manufacturing and shipbuilding are key economic sectors for the grantee and include positions that are at or above the 2002 LLSIL4. Distinct occupations that were targeted by the grantee included: Shipfitters Burners Welders Pipefitters Machinists Electricians Mechanics Skilled machine operators CNC machinist Tool and die makers Injection molding maintenance mechanic CAD drafters Wage Level Analysis Of the12 specific occupations that were targeted for southeastern Virginia and northeastern North Carolina by the TCC, 10 may be directly compared with data provided through the U.S. Department of Labor’s Occupational Employment Statistics (OES) series for this area. The remaining two targeted occupational categories are not specific enough to compare directly. As Table 4 (below) shows, most of these occupations appear likely to provide wage levels that are in excess of the LLSIL4 base for this region of $26,900. However, for several of the occupational categories, such as pipelayers, plumbers, pipefitters, and electrician helpers, annual salaries are likely to be lower than the LLSIL4 level. These data are also illustrated in Figure 5 on the following page. Skill Shortage II Demonstration Program Evaluation Final Report April 2005 Public Policy Associates, Incorporated Tidewater Community College Profile Page C-158 Table 4: DOL Occupation & Employment Data for Targeted Occupations in the Norfolk-Virginia Beach-Newport News, VA-NC MSA, 2002 Occupations Welders, cutters, solderers, and brazers Helpers: pipelayers, plumbers, pipefitters, and steamfitters Plumbers, pipefitters, and steamfitters Machinists Electricians Helpers: electricians Industrial machinery mechanics Computer-controlled machine tool operators, metal and plastic Numerical tool and process control programmers Tool and die makers Area Employment 3,000 830 5,340 2,020 4,820 710 1,320 360 70 200 Median Hourly $16.58 $10.29 $16.96 $16.42 $16.46 $9.43 $16.94 $16.28 $14.67 $20.51 Mean Hourly $16.58 $10.79 $17.08 $15.91 $16.42 $9.97 $16.93 $16.35 $16.03 $20.78 Mean Annual $34,500 $22,430 $35,530 $33,090 $34,160 $20,740 $35,210 $34,010 $33,350 $43,230 Source: U.S. Department of Labor, Occupational, and Employment Statistics, 2002. Figure 5 Average Annual Salary for Selected Targeted Occupations in the Grantee Service Area, 2002 2002 LLSIL4 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 $43,230 $34,500 $22,430 $35,530 $33,090 $34,160 $20,740 $35,210 $34,010 $33,350 Salary st s Pl Occupation Source: U.S. Department of Labor, Occupational, and Employment Statistics, 2002. Outcomes Analysis The hypothetical wage levels that trainees may expect to earn were illustrated in Table 4 and Figure 5, above. Final outcome information is also available from TCC for individuals that were Skill Shortage II Demonstration Program Evaluation Final Report C ne s ry te m r-c ec on ha tro N ni um lle cs er d m ic al ac to hi ol ne an ... d pr oc es s To co ol ... an d di e m ak er s pu s, a. ye . rs be ,p rs lu ,p m be ip ef rs it t ,.. er . s, an d st e. .. s ec tri El el p ci er s: H In d an er er M rs , so ld el us tri a lm cu tte er s, el d er s: pi el p um pe la W H om ac hi ec tri ci an ac hi ni April 2005 Public Policy Associates, Incorporated Tidewater Community College Profile Page C-159 trained and are employed. The guidelines for the grant were such that only nonunion workers were held to the LLSIL4 standard. These data indicate that 97 percent of nonunion training participants receive annual salaries that are at or above the $26,900 LLSIL4 for this region. Roughly one-quarter have salaries at or above $40,000 per year. These patterns are illustrated in Figure 6, below, which includes both unionized and nonunionized workers. Figure 6 Participants' Annual Salaries Compared to LLSIL4 for Targeted Area Nonunion participants $60,000 $50,000 $40,000 Union-member participants 2002 LLSIL4 Salary $30,000 $20,000 $10,000 $0 Individual Participants Source: Tidewater Community College, 2004 Note: The outcome data submitted by the grantee was missing outcome wage data for 71 nonunion trainees (53 percent of participants). Figure 6, above, represents individual outcome data. Specific job titles that fell below the 2002 LLSIL4 included: 3rd class mechanic welder 3rd class rigger Assistant safety/personnel Corrosion control technician Feed water/mechanic Government storeroom clerk Labor Material handler Mechanic Procurement technician Supervisor Technician apprentice Technician I Trade supervisor Welder Summary of Findings The data provided in this profile and overview of the TCC demonstration site indicate that the six Tidewater area counties in Virginia and North Carolina have a broad industrial base with relatively high levels of employment in five major categories: retail, health care, manufacturing, accommodations and food services, and construction. Manufacturing is the fourth largest employment sector in this region with approximately 11 percent of all nongovernment Skill Shortage II Demonstration Program Evaluation Final Report April 2005 Public Policy Associates, Incorporated Tidewater Community College Profile Page C-160 employment in this region. Almost a third of manufacturing employment is concentrated in shipbuilding. During the past four years, the unemployment rate in the six-county Tidewater area has closely tracked the unemployment rate for the entire state of Virginia. For most of this period, Virginia’s unemployment rate has consistently been 1 percent to 2 percent below the unemployment rate for the entire nation. TCC has targeted a number of occupations within the area’s important shipbuilding industry. Of the occupations that were directly comparable with data from OES resources, most may be expected to provide incumbents with annual salary levels above the $26,900 LLSIL4 for the demonstration site area. Outcome data provided by TCC indicate that of the employed nonunion trainees, 97 percent have jobs that pay more than the $26,900 LLSIL4 for this area. Approximately 25 percent have annual salaries in excess of $40,000 per year. Skill Shortage II Demonstration Program Evaluation Final Report April 2005 Public Policy Associates, Incorporated
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