The U.S. business environment is always adjusting to market competition and continually in a state of flux. The dominant trend in today’s economy is for businesses to focus on creating the highest quality and most innovative products and exporting them to consumers around the world. This trend affects many of our state’s top corporations and smaller enterprises. In order for Kentucky to develop and manufacture high-quality products and compete globally, a well-educated workforce is essential.
Ed Lane is publisher of The Lane Report.
In a June 2014 One-on-One interview with The Lane Report, Kentucky Gov. Steve Beshear said, “A quality workforce is the No. 1 priority of every CEO I talk to, and I talk to a lot of them. Companies already in Kentucky that are looking to expand and grow as well as the companies the state is recruiting to move to Kentucky, I ask them, ‘How can we help you?’ And while every one of them will say tax incentives, tax structure and location are important, the top priority is a qualified, skilled workforce that can do their jobs, produce their products, deliver on time and create high quality. And that has spurred us to reemphasize developing a quality workforce here in Kentucky. Our community and technical colleges, our universities and our high schools are working together so much better than they have in the past.
Bruce Katz, from left, Lexington Mayor Jim Gray, Paul Costel, Amy Liu, and Louisville Mayor Greg Fischer spoke at the recent Global Cities Initiative event in Louisville.
The state is also beginning to develop apprenticeship programs. Many European countries, Germany in particular, have long-established apprenticeship programs where high-school students can choose to go into a program where they actually work part-time for the company. Students get paid for the work they do and go to school at the same time. There’s a rigid academic curriculum as well as a technical curriculum. And at the end of their course of study, they receive a certification recognized throughout that country. Most of the students stay with the company where they apprenticed.”
At the recent Global Cities Initiative Conference held in Louisville and sponsored by the Brookings Institution and JPMorgan Chase, the theme presented by economic development leaders from diverse metropolitan areas and different sectors – private, public and nonprofit – was to collaborate in order to effectively compete in a global economy.
At the conference, Bruce J. Katz, Brookings’ vice-president and co-director of the Metropolitan Policy Program, emphasized, “Louisville and Lexington (members of Bluegrass Economic Advancement Movement) were good examples of collaborating to compete. In a globalized economy, traditional boundaries and antiquated rivalries don’t cut it. Exporting high-quality and innovative products to a global market is the future of the U.S. economy.”
Kentucky employers, state and local governments, high schools and postsecondary educational institutions are already initiating programs to train students for positions in advanced manufacturing, research, technology, innovation, science and engineering. In order for Kentucky to continue as a leader in economic development, a large and well-educated pipeline of high school, college and technical school students will be needed to fill the strong demand for employees.
Many of Kentucky’s companies have developed “earn and learn” programs, facility tours, scholarships and internships to attract new employees. Education and workforce development are top initiatives as businesses place a high emphasis to recruiting and creating a quality workforce for their operations.
The demand for an educated workforce is likely to increase wages, accelerating students’ ability to earn a good return on their educational investments. “Earn and learn” programs may also substantially reduce educational expenses for many students.
In order for companies to innovate, offer quality products and successfully compete globally, a robust supply of talented, productive workers is a critical ingredient. The economic future for Kentuckians may ultimately be defined as “a golden era for employment and educational opportunities.” Kentucky’s economic success is definitely linked to how well the state’s next generation of workers is educated.
