This is the first in a two-part interview with Kosciusko Economic Development Corporation director George Robertson. It’s been about seven months since George Robertson took over the re-organized Kosciusko Economic Development Corporation. Robertson sat down with the Times-Union last week to discuss the state of business in Warsaw, rethinking what skills workers need to be successful and living in a global economy, among other things. Robertson and members of KEDCo are currently in the process of going to about 90 businesses in Kosciusko County to determine what their needs are. He said he’s been impressed with the leadership of the companies he’s seen so far. One thing Robertson said he’s noticed is how local companies have incorporated lean manufacturing techniques. And because of that lean manufacturing, Robertson said, it has actually limited the amount of layoffs by companies in the area. While there have been layoffs in the area recently, most notably at Zimmer, Robertson said lean manufacturing softens the blow. “When implemented it increases productivity and decreases chances you’ll lose (a company),” said Robertson. There have been rumors circulating for years that certain companies will move out of state or even out of the country. Robertson said that in fact only 10 percent of jobs lost in the United States go overseas while 90 percent are lost to advances in technology. Of that 10 percent that is lost, Robertson said most of those jobs are low skill jobs. Robertson said having a strong workforce in the community is beneficial. Bringing more skills to workers in the community is a goal of Robertson’s. And by doing that, the goal of keeping businesses from leaving is reached. In terms of the workforce, Robertson said one area where economic developers and other institutions have fallen behind is career counseling. In 2010, Robertson said, 12,600 students graduated from college with a degree in electrical engineering. There were 25,000 jobs open in 2010 looking for electrical engineers. And half of the electrical engineering graduates are foreign students who head back to their home country after graduation. Also in 2010, 12,600 students graduated in park management, said Robertson, while there were only 350 job openings for people with that degree. “If your passion is park management go for it,” said Robertson. “But we’re not giving those kind of numbers, that kind of advice to young people.” Robertson said that while college is vital to some people, the idea that everyone has to get a college degree is antiquated. “80 percent of all new jobs in America will have an equivalent of a two-year degree,” said Robertson. Robertson also noted that of 35 industrialized nations, the United States has the highest percentage of high school graduates going to college but the lowest college graduation rate. Robertson said the key to success for those seeking employment is moving from resume-based to skills-based qualifications. Robertson said there are skilled jobs that don’t have enough people to fill the positions. He said the average age of a plumber is 59. While Robertson did economic development in Louisiana, he noted that the average plumber in New Orleans made $164,000 a year because they were in such high demand. “People in the education system and business people don’t speak the same language,” said Robertson. “This tends to create a disconnect in what employers really need.” He said many times employers overestimate or don’t really know what skillset an employee needs based on their education. In other ways its underestimated. “Carpenters used to be at a 5th/6th grade level in math,” said Robertson. “Now they’re at a 9th grade level. “ Robertson said one goal of KEDCo. is to provide skills employees really need to match up with business. Robertson noted that one skill that has dropped off in recent years is reading blueprints. So one key is to offer those sorts of classes to younger people in the workforce. Conversely, a lot of older workers, Robertson said, need to learn things like Excel. Robertson said a lot of times companies don’t have the resources or inclination to provide such training. So what about bringing new business to the area? Many people get excited when a new store or restaurant comes into town. Is that that key to economic growth? “Attraction is the sexy part of economic development,” said Robertson. “But it’s not the bread and butter.” Robertson noted retention was a key to a strong economy. When it does come to attraction, Robertson said the key is to bring in company that are stage-2 companies or “Gazelles”. Those companies typically employ between 10 and 100 people. Robertson noted that 90 percent of all new jobs are created by 4 percent of companies. And 30 percent of that original 90 percent come from start up companies. “Some could be 10 years old,” said Robertson. “But then they have the right product at the right time.” Winona PVD was cited by Robertson as an example of one those Gazelle companies. In the next part, Robertson lauds Winona PVD, discusses how higher fuel prices may mean more U.S. Jobs and gives his best guess as what Kosciusko County’s business climate will be like in the next few years.
