U.S. GOVERNMENT PUBLISHING OFFICE

33–809 WASHINGTON : 2019

JOBS AND OPPORTUNITY: 

LOCAL PERSPECTIVES ON THE JOBS GAP 

HEARING 

BEFORE THE

SUBCOMMITTEE ON HUMAN RESOURCES 

OF THE

COMMITTEE ON WAYS AND MEANS 

U.S. HOUSE OF REPRESENTATIVES 

ONE HUNDRED FIFTEENTH CONGRESS 

SECOND SESSION 

APRIL 12, 2018 

Serial No. 115–HR05 

Printed for the use of the Committee on Ways and Means 

( 

ii 

COMMITTEE ON WAYS AND MEANS 

KEVIN BRADY, Texas, Chairman 

SAM JOHNSON, Texas 

DEVIN NUNES, California 

DAVID G. REICHERT, Washington 

PETER J. ROSKAM, Illinois 

VERN BUCHANAN, Florida 

ADRIAN SMITH, Nebraska 

LYNN JENKINS, Kansas 

ERIK PAULSEN, Minnesota 

KENNY MARCHANT, Texas 

DIANE BLACK, Tennessee 

TOM REED, New York 

MIKE KELLY, Pennsylvania 

JIM RENACCI, Ohio 

PAT MEEHAN, Pennsylvania 

KRISTI NOEM, South Dakota 

GEORGE HOLDING, North Carolina 

JASON SMITH, Missouri 

TOM RICE, South Carolina 

DAVID SCHWEIKERT, Arizona 

JACKIE WALORSKI, Indiana 

CARLOS CURBELO, Florida 

MIKE BISHOP, Michigan 

DARIN LAHOOD, Illinois 

RICHARD E. NEAL, Massachusetts 

SANDER M. LEVIN, Michigan 

JOHN LEWIS, Georgia 

LLOYD DOGGETT, Texas 

MIKE THOMPSON, California 

JOHN B. LARSON, Connecticut 

EARL BLUMENAUER, Oregon 

RON KIND, Wisconsin 

BILL PASCRELL, JR., New Jersey 

JOSEPH CROWLEY, New York 

DANNY DAVIS, Illinois 

LINDA SA ́ NCHEZ, California 

BRIAN HIGGINS, New York 

TERRI SEWELL, Alabama 

SUZAN DELBENE, Washington 

JUDY CHU, California 

GARY ANDRES, Staff Director 

BRANDON CASEY, Minority Chief Counsel 

SUBCOMMITTEE ON HUMAN RESOURCES 

ADRIAN SMITH, Nebraska, Chairman 

JASON SMITH, Missouri 

JACKIE WALORSKI, Indiana 

CARLOS CURBELO, Florida 

MIKE BISHOP, Michigan 

DAVID G. REICHERT, Washington 

TOM REED, New York 

DANNY DAVIS, Illinois 

LLOYD DOGGETT, Texas 

TERRI SEWELL, Alabama 

JUDY CHU, California 

iii 

C O N T E N T S 

Page 

Advisory of April 12, 2018, announcing the hearing ............................................ 2 

WITNESSES 

Connie Wilhelm, Chief Executive Officer, Home Builders Association of Central Arizona ........................................................................................................... 8 

Toby Thomas, President, Austin Electric Services, LLC ...................................... 13 

Brian Potaczek, Electrician, Austin Electric Services, LLC ................................. 17 

Kelly Tessitore, Vice President of Advancement, Jewish Vocational Service ..... 20 

Heather Terenzio, Chief Executive Officer, Techtonic Group, LLC .................... 26 

Tony Girifalco, Executive Vice President, Delaware Valley Industrial Resource 

Center .................................................................................................................... 50 

Justin Welner, Vice President for Human Resources, Spirit AeroSystems ........ 57 

Andrew Wells, Director, Workforce Development Center, Chicago Urban 

League ................................................................................................................... 64 

Peter Barrett, Senior Vice President, Marketing and Corporate Development, 

Smoker Craft, Incorporated ................................................................................. 68 

(1) 

JOBS AND OPPORTUNITY: 

LOCAL PERSPECTIVES ON THE JOBS GAP 

THURSDAY, APRIL 12, 2018 

U.S. HOUSE OF REPRESENTATIVES, 

COMMITTEE ON WAYS AND MEANS, 

SUBCOMMITTEE ON HUMAN RESOURCES, 

Washington, DC. 

The Subcommittee met, pursuant to notice, at 2:02 p.m., in Room 

1100, Longworth House Office Building, Hon. Adrian Smith [Chairman of the Subcommittee] presiding. 

[The advisory announcing the hearing follows:] 

2 

ADVISORY 

FROM THE COMMITTEE ON WAYS AND MEANS 

SUBCOMMITTEE ON HUMAN RESOURCES 

FOR IMMEDIATE RELEASE CONTACT: (202) 225–3625 

Thursday, April 12, 2018 

HR–05 

Chairman Smith Announces Human Resources 

Subcommittee Hearing on Jobs and Opportunity: 

Local Perspectives on the Jobs Gap 

House Ways and Means Human Resources Subcommittee Chairman Adrian Smith 

(R–NE), announced today that the Subcommittee will hold a hearing entitled ‘‘Jobs 

and Opportunity: Local Perspectives on the Jobs Gap’’ on Thursday, April 12, at 

2:00 p.m. in room 1100 of the Longworth House Office Building. This hearing 

will highlight employers’ demand for workers and the need to get more Americans 

into the labor force. 

In view of the limited time to hear witnesses, oral testimony at this hearing will 

be from invited witnesses only. However, any individual or organization may submit 

a written statement for consideration by the Committee and for inclusion in the 

printed record of the hearing. 

DETAILS FOR SUBMISSION OF WRITTEN COMMENTS: 

Please Note: Any person(s) and/or organization(s) wishing to submit written comments for the hearing record must follow the appropriate link on the hearing page 

of the Committee website and complete the informational forms. From the Committee homepage, http://waysandmeans.house.gov, select ‘‘Hearings.’’ Select the hearing for which you would like to make a submission, and click on the link entitled, 

‘‘Click here to provide a submission for the record.’’ Once you have followed the online instructions, submit all requested information. ATTACH your submission as a 

Word document, in compliance with the formatting requirements listed below, by 

the close of business on Thursday, April 26, 2018. For questions, or if you encounter technical problems, please call (202) 225–3625. 

FORMATTING REQUIREMENTS: 

The Committee relies on electronic submissions for printing the official hearing record. As always, submissions will be included in the record according to the discretion of the Committee. 

The Committee will not alter the content of your submission, but we reserve the right to format 

it according to our guidelines. Any submission provided to the Committee by a witness, any materials submitted for the printed record, and any written comments in response to a request for 

written comments must conform to the guidelines listed below. Any submission not in compliance with these guidelines will not be printed, but will be maintained in the Committee files 

for review and use by the Committee. 

All submissions and supplementary materials must be submitted in a single document via 

email, provided in Word format and must not exceed a total of 10 pages. Witnesses and submitters are advised that the Committee relies on electronic submissions for printing the official 

hearing record. 

All submissions must include a list of all clients, persons and/or organizations on whose behalf 

the witness appears. The name, company, address, telephone, and fax numbers of each witness 

must be included in the body of the email. Please exclude any personal identifiable information 

in the attached submission. 

Failure to follow the formatting requirements may result in the exclusion of a submission. All 

submissions for the record are final. 

3 

The Committee seeks to make its facilities accessible to persons with disabilities. 

If you are in need of special accommodations, please call 202–225–1721 or 202–226– 

3411 TDD/TTY in advance of the event (four business days’ notice is requested). 

Questions with regard to special accommodation needs in general (including availability of Committee materials in alternative formats) may be directed to the Committee as noted above. 

Note: All Committee advisories and news releases are available at 

http://www.waysandmeans.house.gov

f 

/ 

Chairman SMITH. The Subcommittee will come to order. Good 

afternoon, and welcome to the first in an important series of hearings the Human Resources Subcommittee will be holding to focus 

on jobs and opportunity. 

The purpose of these hearings is to demonstrate how as our economy continues to strengthen following the enactment of the Tax 

Cuts and Jobs Act, employers’ demand for workers is growing and 

our Human Services programs have a role in supporting the next 

wave of workers needed to continue this economic growth. 

On Tuesday, the President signed an Executive Order directing 

agencies to seek new opportunities to reorient our welfare system 

toward economic opportunity. I agree with the President on this 

matter and appreciate his bringing the right tone at the right time 

to this conversation. 

There is a chart here. During these hearings, we are going to be 

talking a lot about the jobs gap, the difference between employers’ 

demand for workers, shown as job openings in the chart, and the 

declining number of individuals in the workforce, shown as the 

labor force participation rate. 

The space in the middle separating these two lines is what we 

are calling the jobs gap. Addressing the jobs gap is about accessing 

economic growth and opportunity for those on the sidelines of the 

American workforce. This is particularly important given the 

healthy labor market and low unemployment rate we are seeing as 

a result of businesses creating jobs and expanding after the enactment of the new tax law. 

[The submission for the Record of Hon. Adrian Smith follows:] 

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Just this week, The Washington Post editorial board highlighted 

this issue by saying, ‘‘American employers in an array of industries, manufacturing, agriculture, trucking, home building, energy, 

food service, retail, and others are warning a long brewing labor 

shortage is reaching crisis proportions.’’ 

The Wall Street Journal reported if every last jobless citizen in 

the 12 Midwestern States filled an open job in the region, 180,000 

positions would still be left unfilled. 

What do employers and job openings have to do with the programs under the Human Resources Subcommittee? A lot, actually. 

We know when individuals and parents are working full-time, the 

poverty rate drops to just 3 percent. 

We know when workers are matched to employers with the supports provided by programs under the Subcommittee, such as child 

care, case management, and transportation, that job opportunities 

and the American dream can become a reality for more Americans. 

Last year, the Subcommittee set the stage for this discussion 

today. Those hearings were about people on the sidelines. 

We heard from experts who examine the declining unemployment of working-age men who told us there are more than 7 million men in America not working or looking for work. 

We also heard about the troubling trend we are seeing among 

our youth and young adults, those 16 to 24 years old. We learned 

that there are 5.5 million not in school and also not working. 

This hearing takes the next step to see how this reality is translating for employers and workers at the local level. Now we see employers getting more involved by investing in apprenticeships, 

training, and helping individuals get connected to supportive services to address barriers to employment. 

What is different now is a strong economy fueled by the Tax Cuts 

and Jobs Act. This isn’t about charity or government programs. We 

will hear from our witnesses there is a strong business case, meaning it is in the best interest of their business to invest in building 

the workforce. 

Today, we will hear from Connie Wilhelm, Chief Executive Officer at the Home Builders Association of Central Arizona. Ms. Wilhelm runs a large Home Builders Association representing employers with growing workforce needs. 

As a way to address this, her association has partnered with Arizona correctional facilities to prepare inmates for jobs after release 

by getting them access to training in the construction trades and 

addressing needs for transportation, housing, and soft skills. 

She is not running a social services agency either. This is a mutually beneficial partnership which supplies home builders with 

much-needed workers and gives inmates marketable skills they can 

use to find employment when they are released. It is win-win. 

We are also very excited to hear from Mr. Potaczek—did I get 

that right—okay, sorry about that—the embodiment of the partnerships we are referencing. He is now working as an electrician at 

Austin Electric after participating in training at the Arizona Department of Corrections’ Employment Center. I am grateful to him 

for sharing his story and helping our Subcommittee gain a fuller 

picture of the issue at hand. 

6 

My top priority for this Subcommittee and this Congress continues to be ensuring greater opportunity for all Americans. This 

hearing features two panels of witnesses who are experiencing real 

workforce challenges and have stepped up to show ways we can get 

individuals back into the labor force. 

Today, I am excited to learn from our witnesses about their experiences and what is working in local communities, so we can translate these lessons into better public policies which help families escape poverty and climb the economic ladder. 

With that, I recognize Ranking Member Davis for 5 minutes for 

his opening statement. Mr. Davis. 

Mr. DAVIS. Thank you very much, Mr. Chairman, and I want 

to thank you for holding this hearing. And I believe that this area 

of work is one of the most important that is needed to be done in 

our country. 

This month marks the 50th anniversary of the assassination of 

Dr. Martin Luther King, Jr. His work remains unfinished. At the 

time of his assassination, Dr. King was focusing the civil rights 

movement on economic justice and the opportunity gap that exists 

in this country. Indeed, I am proud to represent North Lawndale, 

the community in which Dr. King lived as he directed attention to 

the structure barriers that keep groups of Americans poor. 

If communities lack quality education, economic opportunity is 

limited. If communities lack transportation, affordable housing, 

and employers offering good jobs, economic opportunity is limited. 

If communities lack substance abuse services or job training programs, economic opportunity is limited. 

I hope we can agree that if we have a gap between available jobs 

and the Americans searching for opportunities, it is our obligation 

to close the gap by knocking down the obstacles keeping people 

from work, not by vilifying workers who have fallen on hard times 

and who need our help to overcome barriers. 

The Executive Order the President issued yesterday which instructs agencies to find ways to cut services and basic necessities 

for people who are poor or don’t have jobs is exactly the wrong approach. 

For our Subcommittee, the right approach must include addressing structural barriers in the Temporary Assistance for Needy 

Families programs or TANF. Otherwise, our policies will fail our 

rural, urban, and suburban constituents who hit these barriers 

daily and are being left behind. 

I work closely with a number of programs in Chicago that work 

alongside employers to provide real opportunities for people who 

have been left behind by the labor market and are hitting walls 

every time they try to get a good job to make a better life. When 

I talk to these outstanding workforce development programs, I am 

struck by how few of them get any support from TANF, which is 

in this Subcommittee’s jurisdiction. 

TANF provides $16.5 billion a year in State grants which are 

supposed to support work and ensure that low-income families can 

access basic necessities like food and housing. If TANF is not supporting these local education and training programs that lift work, 

are open to good jobs, and put them on a path to better things, that 

is TANF’s failure and Congress has set TANF up for failure. 

7 

TANF includes arbitrary limits on education and training, even 

though we know a lack of skills and credentials is a key reason 

why many struggling parents cannot find good jobs. 

TANF provides States with incentives to reduce the number of 

families being helped, but no incentives to knock down barriers or 

provide real opportunities for parents to find good jobs that will lift 

their children out of poverty. 

And TANF’s investment in children and families is shrinking 

every year, as States divert TANF funds to fill budget gaps, and 

the Federal Government funding is not adjusted for inflation. 

Right now, TANF is creating additional roadblocks to good jobs 

for people who are already facing barriers. Our Subcommittee has 

the chance to make TANF a key to unlocking economic opportunities and continuing Dr. King’s work. 

I look forward to hearing from our witnesses about how we can 

lift out of poverty and close the economic gap. 

Again, Mr. Chairman, I thank you for this hearing and yield 

back the balance of my time. 

Chairman SMITH. Thank you, Dr. Davis. I appreciate your comments. 

Without objection, other Members’ opening statements will be 

made a part of the record. 

I would like to welcome our first panel of witnesses to the table 

and recognize Mr. Schweikert for the purpose of introducing his 

constituents from Arizona. 

Mr. SCHWEIKERT. Thank you, Mr. Chairman, though you actually covered part of it. 

This is sort of a special occasion for me. Ms. Wilhelm, Connie, 

is actually one of my oldest friends. Not a comment about age, but 

I have known her probably the majority of my life. Her brilliant 

son is actually an intern in our office. 

But she is unique in the fact she is running a very large Home 

Builders Association and is a true pioneer as a woman doing that. 

But she also had an amazing vision here of could we reach into 

parts of our communities that have had a tough time, and in this 

case those who have been in correctional facilities, and bring them 

into our shortage of labor. 

Toby Thomas is the President of Austin Electric. He is one of the 

partners with Connie Wilhelm and the Central Arizona Home 

Builders Association in bringing this program together and training. 

And Brian—and it is Potaczek—Potaczek is, actually I am very 

proud of him coming here because sometimes walking into a room 

like this can be somewhat intimidating, but he has a very important story for us to hear. Because as we are looking at the most 

recent U6 crosstabs, we are actually seeing something amazing 

happen, and those who have been marginalized, particularly those 

with felonies, are actually getting opportunities to work, and I believe we are about to hear about a program that is working. 

Thank you, Mr. Chairman. 

Chairman SMITH. Thank you. 

The remaining witnesses on our panel include Ms. Kelly 

Tessitore—you are not just saying yes—okay, okay—Vice President 

of Advancement at Jewish Vocational Serice in Boston, MassachuVerDate Sep 11 2014 08:22 Mar 08, 2019 Jkt 033809 PO 00000 Frm 00011 Fmt 6633 Sfmt 6602 I:\WAYS\IN\33809\33809.XXX 33809
8 

setts; and Ms. Heather Terenzio, Chief Executive Officer of the 

Techtonic Group from Boulder, Colorado. 

Witnesses are reminded to limit their oral statements to 5 minutes. You will see the indicator there. Once you see that yellow 

light, just kind of bring the flight in for a safe landing and wrap 

that up by the time the 5 minutes conclude. So, all your statements 

will be included in the record. 

And so, we will begin with Ms. Wilhelm. You may begin when 

you are ready. 

STATEMENT OF CONNIE WILHELM, CHIEF EXECUTIVE OFFICER, HOME BUILDERS ASSOCIATION OF CENTRAL ARIZONA 

Ms. WILHELM. Chairman Smith, Ranking Member Davis, and 

Members of the Subcommittee, it is an honor to be with you here 

today to provide a brief overview of a workforce development program for ex-offenders during their last couple months of incarceration. 

I represent the Home Builders Association of Central Arizona. 

And not unlike other growing markets, the biggest obstacle that 

builders face in satisfying the demand for new homes is the labor 

to build them. So, in early 2016, the Association launched a number of initiatives on workforce development, including a partnership with the Arizona Department of Corrections. 

The key to our partnership with Corrections is that it is employer-centric. We initially traveled throughout the State holding 

hiring fairs at prisons with companies representing residential 

plumbing, electrical, masonry, framing, and drywall trades, seeking 

inmates releasing into the Phoenix market. Participating employers were required to have paid training programs and be willing to 

work with this population’s unique challenges of parole, drug tests, 

and transportation. 

In March of 2017, as part of a statewide effort to reduce recidivism, Governor Ducey established three Second Chance Centers 

within the correctional facilities for those inmates releasing in 60 

days who had a moderate to high probability of recidivating. 

This collaboration between the Arizona Department of Corrections and the Department of Economic Security consists of a 10- 

week training program to prepare and equip inmates with the career and life skills they need to succeed after release. Since studies 

have shown that employment is the most direct link to reducing recidivism, job fairs and connecting with employers is a huge part of 

this effort. 

At our first construction job fair at the Second Chance Center 

outside Phoenix, we found that many inmates had construction experience and others were eager to learn a construction trade. 

Shortly thereafter, we piloted training for two trades, electrical and 

painting, at the Center. 

The Lewis Second Chance Center is currently expanding for 100 

to 275 inmates, and we are expanding our career training offerings 

from two trades to six trades at this center. We will now offer 

training in electrical, drywall, framing, door and trim, masonry, 

and plumbing. Our employers provide the trainers, curriculum, material, and tools for their specific trade. 

9 

Two of the three instructors for the electrical class were former 

felons, which provided real-life examples of success for the inmates. 

While 6 to 8 weeks of training is not a lot, it’s enough to familiarize the inmate with the trade, learn how to work safely, and to 

establish a relationship with the potential employer. Additional 

training is provided once they are released and employed. 

Participating inmates also have the opportunity to earn an 

OSHA 10-hour card. 

Working with this population, however, has not been without its 

challenges. The majority of inmates are released to a halfway 

house and are on parole for up to 6 months, so it is a major challenge to find employers that are willing to take a chance on an exoffender. We have had several employers join our program only to 

leave after one bad incident with a former offender. 

We have also had employers tell us they don’t want the liability 

of hiring felons. To address that concern, last week, Governor 

Ducey signed a bill we initiated which helps protect employers 

from liability solely for hiring an ex-offender. 

Without question, the biggest challenge ex-offenders face in the 

Phoenix metro area when trying to get a job is transportation. 

Many have suspended driver’s licenses because of civil court fines 

or penalties. 

To overcome that obstacle, we worked with the courts to pursue 

legislation to allow for a restricted driver’s license that allows them 

to drive to work, to meet their parole officers, and to seek medical 

care. This bill was also signed into law last week. 

Since we started our recruitment and job training programs, our 

employers have hired over 300 ex-offenders and we expect that 

number to increase significantly with our additional onsite training. 

During the 5 months of piloted training, 80 inmates completed 

training and approximately 40 percent of them were hired by the 

companies who trained them. 

Since last March, over 817 individuals have graduated from a 

Second Chance Center and 54 percent of them have successfully 

gained employment upon release. 

Additionally, Arizona has seen a 10 percent drop in released inmates going back to prison on a technical violation and is experiencing the largest drop in the number of inmates in prisons since 

1974. 

We are excited about the future of this partnership and the opportunity to offer careers in construction to ex-offenders. 

[The prepared statement of Ms. Wilhelm follows:] 

10 


33809A.002

HIB A C A 

Home Builders AssoCiation of Central Arizona 

TESTIMONY OF CONNIE WILHElM 

Chief Executive Officer, Home Builders Association of Central Arizona 

Phoenix, Arizona 

HOUSE WAYS AND MEANS SUBCOMMITIEE ON HUMAN RESOURCES 

Aprlll2,2018 

Chairman Smith, Ranking Member Davis and members of the subcommittee. It is an honor to 

be with you to provide a brief overview of a unique workforce development program that has been 

successfully initiated in Arizona. 

I represent the Home Builders Association of Central Arizona which is a trade association for the 

home building industry. The metro Phoenix home building market is rapidly expanding. In 2015, there 

were almost 16,000 residential building permits issued. Last year, there were nearly 20,000, 

representing a 25% increase in 2 years. All forecasts indicate that we can expect this trend to continue 

in 2018. The biggest obstade that our builders face In satisfying the demand for new homes is the labor 

to build them. So in early 2016, we launched a number of Initiatives on workforce development 

Including our partnership with the Arizona Department of Corrections. 

Our initial work with the Department of Corrections centered on two efforts. One was to visit 

the various correctional institutions to see the construction programs being taught by the community 

colleges. Through these education programs, we initially travelled throughout the State with residential 

plumbing, electrical, masonry, framing, and drywall companies holding hiring fairs at prisons targeting 

inmates releasing into the Phoenix area. Participating employers were required to have paid training 

programs and be willing to work with this population's unique challenges such as parole, drug tests, and 

transportation. Since most prisons are about4 hours outside of Phoenix, these recruitment efforts 

were extremely inefficient and took employers out of their offices for several days. 

Another was to connect appropriate employers with Arizona Correctional Industries (ACI), a 

unique self funded 30 year old business within Corrections that provides "jobs" for 2,000 inmates any 

given day. Working in a safe, positive work and learning environment, inmates gain skills that will help 

them secure employment upon their release. We were instrumental in facil itating a contract with one 

of our framing contractors to have a shift of inmates at their yard building wall panels and roof trusses. 

Several inmates have since been hired by t he framing contractor upon release. 

In March of 2017, as part of a statewide effort to reduce recidivism, Governor Ducey established 

3 Second Chance Centers for inmates releasing in 60 days who had a moderate to high probability of 

recidivating. Two of the Second Chance Centers, one male and one female, are in minimum custody 

7310 N. 16"' Sl. Suite 305 Phoenix, AZ 85020 602.274.6545 fax 602.325.0353 WNW.hbaca.org 
11 


33809A.003

prison complexes outside Phoenix, and one is in Southern Arizona in Tucson. This collaboration 

between the Arizona Department of Corrections and the Department of Economic Security consists of a 

10 wee~ training program to prepare and equip inmates with the career and life skills they need to 

succeed after release. Inmates are Instructed in writing resumes, job interview skills, budgeting, 

conflict resolution, and counseled about child support and other obligations they may have. Many faith 

based organizations also provide support for various needs during this program. Since studies have 

shown that employment Is the most direct link to reduce recidivism, job fairs and connecting with 

employers are a huge part of this effort. The Department of Economic Security regularly hosts job fairs 

for the inmates at the Centers. 

Since Its Inception, over 8171ndlvlduals have graduated from a Second Chance Center and S4% 

of them have successfully gained employment upon release. Additionally, Arizona has seen a 10 

percent drop in released Inmates going back to prison on a technical violation and is experiencing the 

largest drop in the number of inmates in Arizona prisons since 1974. 

In April, 2017, at our first construction job fair at the Second Chance Center at the lewis Prison 

outside Phoenix, we found that many inmates had construction experience and others were eager to 

learn a construction trade. Shortly thereafter, we piloted training for two trades, electrical and 

painting at the Center. Inmates were provided the opportunity to sisn up for a training class, they 

were interviewed by the instructors, and If chosen, they were required to report to class at the 

designated time. A portion of the electrical training was hands on training with three framed walls that 

the Inmates would take turns running the electrical wires through. The residential painting class spent 

most of their time painting doors and walls Inside the prison complex. 

Currently, the largest Second Chance Center is expanding from 100 inmates to 275 and we are 

expanding our training offerings from 2 trades to 6 trades at this Center. We will offer training in 

electrical, drywall, framing, door and trim, masonry and plumbing. The Center ha.s provided us a 

building with 6 training rooms for our classes. We are digging footings for the walls for the masonry 

class and are building a framed house for the other trades to have areas for hands on training. 

Our employers provide the trainers, curriculum, materials and tools for their specific trade. 

While 6-8 weeks of training is not a lot, it Is enough to familiarize the Inmate with the basic skills of the 

trade, learn how to work safely, and establish a relationship with their potential employer. 

Participating inmates also have the opportunity to leave with an OSHA 10 hour card. Additional training 

is provided once the Inmate has been released and hired. · 

There were a number of reasons why this population made sense for us. First, 60% of Arizona's 

prison population Is between the ages of 18-39. Due to the physical nature of construction, this age 

demographic was generally Interested In more physically challenging jobs, and many have previous 

construction experience. Second, inmates recognize the opportunity to enter a career that would allow 

them to support themselves and their families. Third, when we allow ex-offenders to work we assist 

individuals become productive members of our communities, we assist our employers to address the 

labor shortage, and we assist taxpayers and our communities by keeping former offenders out of prison. 
12 

f 


33809A.004

Working with this population, however, has not been without Its challenges. First, there Is the 

challenge of finding employers that are willing to take a chance on a former offender. We have had 

employers join our program only to leave after an incident with a former offender. Additionally, we 

have had employers tell us that they don't want the liability of hiring a former offender. To address that 

concern, last w~k Governor Ducey signed a bill which helps to protect employers from liability solely 

for hiring a former offender. 

Without question, the biggest challenge ex-offenders face when trying to get a post-release job 

is transportation. Many former offenders have suspended driver's licenses because of civil court fines or 

penalties. If someone wants to go to work, we didn't want this to be an obstacle, so we worked with the 

Courts to pursue legislation to allow for a restricted driver's license . . This bill was also signed Into law by 

our Governor last weel<. 

Over the last 2 years our efforts with Corrections has resulted in approximately 300 former 

offenders being hired by our participating employers. During the 5 months of piloted training 80 

inmates completed training prior to release and approximately 40% of them were hired by the 

companies that trained them. While we would have liked to see a higher percentage of trainees hired, 

we saw enough success that It warranted expansion of the program. We also recognized that at the 

same time we needed to address barriers to employment such as transportation. 

We are excited about the opportunities this partnership presents and look forward to growing 

the program in the coming years. 
13 

Chairman SMITH. Great timing. 

I understand Mr. Thomas and Mr. Potaczek will be splitting 

their time, so begin when you are ready. 

STATEMENT OF TOBY THOMAS, PRESIDENT, 

AUSTIN ELECTRIC SERVICES, LLC 

Mr. THOMAS. Mr. Chairman, Ranking Member Davis, Members 

of the Subcommittee, thank you for your invitation to speak here 

today about the workforce development and our work with the 

Home Builders Association of Central Arizona and the Arizona Department of Corrections. 

As the housing market began to recover, we quickly identified 

that we had a labor shortage. As production demands increased, so 

too did the shortage of qualified workers. 

To grow our business and capitalize on the increase in demand, 

we began an in-house training program to teach people who want 

a new career to wire new homes. 

In rolling out our training program, we found the single biggest 

challenge was attracting individuals who wanted to learn a new 

skill. After an exhausting 6-month recruitment effort, we simply 

could not find enough people with an interest in construction to 

grow our workforce in the numbers that we needed. 

In early 2016, we contracted with Connie Wilhelm and the Home 

Builders Association. Prior to our introduction, Ms. Wilhelm had 

been working on several solutions to address the labor shortage. 

One of her initiatives was to work with the Arizona Department of 

Corrections. 

Over the next several months, we participated in job fairs at 

prisons across Arizona. Through these job fairs, we were excited to 

learn that there’s an eager population willing and ready to learn 

a new trade. 

Through our partnership with the Home Builders Association 

and Department of Corrections, for the past 10 months, we have 

operated a 60-day training program at the Lewis Prison outside of 

Phoenix. 

During this training, we teach wiring, blueprint reading, and 

other applicable skills. In addition, we teach conflict resolution lessons to improve character building abilities that will not only enhance them in the workforce, but in their personal lives and the 

community as well. 

Today, we have trained and hired 86 former offenders from our 

training program and have about an 80 percent retention rate. 

Although we have had immense success with the program, we 

have had some challenges. The most glaring are transportation, 

housing, and proper attire. These challenges can have a direct effect on an individual’s ability to succeed on the job. 

Then there are the psychological aspects. While trainees are in 

the program, we have their undivided attention. Once they are released, there are outside influences that could have negative impacts both professionally and personally. 

Fortunately, this has been the exception to our program and has 

led to the workforce expansion that we planned for. More importantly, the program has exceeded all of my expectations with the 

14 

impact it has had on individual lives and the community at large. 

We are excited to continue the program and grow our company. 

[The prepared statement of Mr. Thomas follows:] 

15 


33809A.005

AUSTIN COMPANIES elt<1:k • concrete • hvtc 

Statement of Toby Thomas, President 

Austin Electric Services, LlC 

Before the House Committee on Ways and Means 

Subcommittee on Human Resources 

April12, 2018 

Mr. Chairman, Ranking Members Davis, members of the subcommittee, thank you for your Invitation 

to speak today about workforce development and our work with the Home Builders Association of Central 

Arizona and Arizona Department of Corrections. 

·As the housing market began to recover, we quickly identified t hat we had a labor shortage. As 

production demands Increased, so too did the shortage of qualified workers. To grow our business and 

capitalize on the increase in demand, we began an in-house training program to teach people who wanted a 

new career how to wire new homes. In rolling out our training program, we found the single biggest challenge 

was attracting Individuals who wanted to learn a new skill. After an exhausting six-month recruitment effort, 

we simply could not find enough people with an interest In construction to Rrow our workforce In thPnumbers we needed. 

In early 2016, we connected with Connie Wilhelm and the Home Builders Association. Prior to our 

Introduction, Ms. Wilhelm had been working on several solutions to address the labor shortage. One of her 

Initiatives was to work with the Arizona Department of Corrections. Over the next several months we 

participated in job fa irs at prisons across Arizona. Through these job fairs, we were excited to find an eager 

population willing and ready to learn new skills In the electrical fleld. 

Through our partnership with the Home Builders Association and Department of Corrections, for the 

past ten months, we have operated a 60-day training program at the lewis Prison outside Phoenix. During 

this training, we teach wiring, blueprint reading, and other work skills. In addition, we teach conflict 

resolution and lessons to Improve character building abilities that will not only enhance them In the 

workforce, but within their personal life and community as well. 

To date we have trained and hired 86 former offenders from our training program and have an 80% 

retention rate. 

Although we have had immense success with the program, we have had some challenges. The most 

glaring are transportation, housing, and proper work attire. These challenges can have a direct effect on an 

individual's ability to succeed on the job. Then there are the psychological aspects. While trainees arc in the 

program, we have their undivided attention. Once they are released there are outside Influences that could 

have negative lmpact.s professionally and personally. 
16 

f 


33809A.006

Fortunately, this has been the exception and our program has iead to the workforce expansion we 

planned for. More importantly, the program has exceeded all my expectations with the impact It has had on 

individual lives and the community at large. We are excited to continue the program and grow our company. 
17 

STATEMENT OF BRIAN POTACZEK, ELECTRICIAN, 

AUSTIN ELECTRIC SERVICES, LLC 

Mr. POTACZEK. Thank you, Chairman Smith, and all Members 

of this Committee for allowing me to speak to you today about programs such as Sunrise Employment Center in Arizona Department 

of Corrections. 

My name is Brian Potaczek and I would like to share the impact 

this program has had on my life and how it has made me a part 

of society and helped me regain my family and friends back into 

my life. 

Before completing this program, I can truthfully say that I had 

no positive direction in life, along with no sense of hope that I 

could make things better. I never was a drug user. However, when 

I was 19, I had all four of my wisdom teeth pulled and was prescribed opioids for pain. The next thing I knew, I was hooked. 

Being an avid drug user of prescription pills for 6 years, I slowly 

but surely had seen my life declining before my eyes. I ended up 

losing everything I owned and loved and ended up incarcerated for 

6 years due to the desire to do whatever it took to keep getting 

high. 

After another two prison stints because of my addiction, I finally 

came across a program that I desired and wanted more than anything to complete and that was the Sunrise Employment Center in 

Arizona Department of Corrections. 

Many companies came to this Employment Center, but one that 

truly had me fascinated was Austin Electric. After listening to the 

guests speak about the criteria and requirements, I quickly signed 

up for the training program and never looked back. 

One thing that caught my attention was how they would talk 

about the company as a family, and how they would help us out 

and do whatever it took to make us successful. 

In the training program, I learned the tools and knowledge of 

how to be an electrician, which is something I had never done before and never imagined doing. 

Upon my release, I was hired and started work that week. I was 

given rides to and from work and maintained a job with this company. I started with Austin at $13 an hour and now I’m making 

$22 an hour after 7 short months. 

I can truthfully say from firsthand experience that this program 

has made many success stories and only will continue to make 

more. It instills a sense of hope in the lost, a family for those who 

need one, and the motivation to be a better person of society. 

It is amazing when you can work with others in the program and 

slowly but surely see their life changing. That is something that always encourages me to stay on the right track. 

I never really had goals after being released from prison until I 

entered the program. Since then, I have rebuilt my trust with my 

family and friends and have regained their love and encouragement. 

Not only have I obtained employment with Austin Electric upon 

my release, I have also been able to support myself and not become 

another statistic by going back to prison. I am doing things now 

that I never thought I would, like going to have coffee with my 

18 

mom, buying Girl Scout cookies, or just giving back to the community. 

Staying out of prison has been the best success story of my life. 

And every day I wake up, it is a success, and I measure it by that. 

Every day I am out of prison is something I look forward to. Thank 

you. 

[The prepared statement of Mr. Potaczek follows:] 

19 

f 


33809A.007

Statement of Brian Potaczek 

Electrician Austin Electric 

House Ways and Means Committee 

Subcommittee on Human Resources 

April12, 2018 

Thank you, Chairman Smith and all the members of this committee, (or allowing me to speak to you 

today about programs such as the Sunrise Employment Center in AZ Department of Corrections. 

My name is Brian Potaczek and I would like to share the impact this program has had on my life and how 

It has made me a part of society and help me regain my family and friends back into my life. 

Before completing this program, I can truthfully say that I had no positive direction in life along with no 

sense of hope that I could make things better. When I was 19, I had my wisdom teeth removed and was 

prescribed opiolds for t he pain. Next thing I knew, I was hooked. 

Being an avid drug user with prescription pills for 6 years I slowly but surely saw my life declining before 

my eyes. I ended up losing everything I ever owned and loved and ended up incarcerated for 6 years due 

to the desire to do whatever it took to keep getting high. After another two more prison stents because 

of my addiction I finally came across a program that I desired and wanted more than anything to 

complete, the Sunrise Employment Center AZ Department of Corrections. 

Many companies came to the Employment Center but one that truly had me fascinated was Austin 

Electric. After listening to the guests speak about the criteria and requirements I quickly signed up for 

their training program and never looked back. One thing that caught my attention was how they would 

talk about the company as a family and how they would help us out and do whatever they could to 

make us successful. 

In the training program I learned the tools and knowledge of how to be an electrician which is 

something I had never done before and never Imagined doing. Upon my release I was hired and started 

work that week and was given rides to and from work to maintain a job with this company. I started 

with Austin at $12 per hour and in seven short months I am up to $22 per hour. 

I can truthfully say from first-hand experience that this program has made many success stories and only 

will continue to make more. It Instills a sense of hope in the lost, a family for those who need one and 

lhe motivation to be a better person of society. It's amazing when you can work with others in the 

program and slowly but surely see their lives changing. That's something that always encouraged me to 

stay on the right track. 

I never really had goals after being released from prison until I entered this program. Since then have 

rebuilt my trust with my family and friends and have regained their love and encouragement. Not only 

have I obtained employment with the same company upon my release I also have been able to support 

myself and not become another statistic by going back to prison. I'm doing things now that I never 

thought I would be able to do like buy Girl Scout cookies and meet my mom for coffee. 
20 

Chairman SMITH. Thank you very much. A very compelling 

story. Thank you. 

Ms. Tessitore. 

STATEMENT OF KELLY TESSITORE, VICE PRESIDENT OF 

ADVANCEMENT, JEWISH VOCATIONAL SERVICE 

Ms. TESSITORE. Good afternoon, Chairman Smith, Ranking 

Member Davis, and Members of the Subcommittee. I am Kelly 

Tessitore and I am the Vice President of Advancement at Jewish 

Vocational Service in Boston, which is a nonprofit, communitybased organization in workforce development. 

I began my career at JVS in 1996, the same year as the 1996 

welfare reform. And since then, I have designed and operated dozens of programs for low-income populations. I would like to talk to 

you today about my experience helping people strengthen skills, access jobs, and build careers. 

Last year at JVS, we served 15,000 individuals in our skills 

training, education, and job placement programs, including through 

our one-stop career center. 

Our greatest strength is our deep relationships with employers. 

We placed job candidates with more than 1,200 employers last year 

and we worked with 20 more to provide on-site training to 1,600 

incumbent workers. 

Our employer partners tell us they can’t find enough workers 

with the skills they need, and in many cases, they are facing critical labor shortages. The current low unemployment rate is encouraging employers to look at hiring populations they haven’t considered previously, which is great, but employers need skilled workers. 

To provide those workers and because we believe that the best 

way to lift people out of poverty is to equip them with in-demand 

skills, we partner with employers to build training programs. 

Let me walk you through one of our programs. Our pharmacy 

technician program includes training on medications and anatomy, 

pharmacy law, hospital basics, customer service, and inventory. 

We partner with pharmacy leaders CVS and Walgreens to provide an externship to each participant. These externships give students real-world experience that helps them adjust to work before 

taking on a full-time job, and they give CVS and Walgreens access 

to a pool of trained applicants that can meet their skill needs. 

The 12-week program prepares graduates to take and pass the 

national Pharmacy Technician Certification Exam. We cover the 

exam fees and our graduates pass the certification exam at higher 

rates than the national average. 

Pharmacy technicians earn $31,000–$44,000 on average nationally per year. Last year, 8 out of every 10 students enrolled in our 

program were hired. And the pharmacy technician program is just 

the first step on a career pathway, including pharmacy or nursing 

school, specialized certifications, or even store management. 

Although Pharm Tech and other career pathway programs at 

JVS are highly effective at moving people out of poverty, they don’t 

serve many TANF recipients. On average, fewer than 10 percent of 

participants in our programs are on TANF. 

21 

We have an excellent relationship with our State TANF authority. We have spent a lot of time thinking together about why TANF 

doesn’t move people into work and how we could change it. I think 

at the end of the day there are three major issues. 

First, TANF emphasizes job placement and de-emphasizes skills, 

even though we have 20 years of research showing that ‘‘work first’’ 

doesn’t work. Although employers can’t find workers with the skills 

they need to fill their critical labor shortages, the structure of 

TANF restricts education and training activities. TANF hasn’t been 

updated in 20 years and it hasn’t kept up with the way that employers are hiring now, and we need changes that will allow and 

support skills acquisition. 

Second, TANF is overly complicated for both clients and systems 

to administer. It counts the wrong things and it doesn’t focus on 

work and skill development. TANF has become a benefits processing program focused on preventing abuse, rather than a transitional catalyst to work. 

In my 22 years of working with low-income populations, I can tell 

you that most of the people I have met do in fact want to work, 

desperately want to work, but they don’t want their economic situation to worsen when they leave cash assistance. Earnings from 

work affect TANF, which affects childcare, which affects housing, 

which affects food stamps, and the interaction of those things 

makes work risky, instead of the safer choice for people on public 

assistance. 

We have to change the paradigm about how the benefit programs 

interact so that they can work together to launch people into economic mobility. I am not talking about growing TANF, but once 

people are on the caseload, we need to keep them engaged and continuing on a path to self-sufficiency. 

If we want people to use TANF as a transitional catalyst to work, 

we need to change the rules so that we can incentivize work, allow 

for training and skill development, and make it clear to participants how working will affect their future benefits. 

Finally, work requirements. I have operated at least a dozen programs that feature a work requirement, and in all cases, the very 

real struggle is that compliance becomes the primary deliverable 

and outcomes take a backseat. 

To maximize results, work requirements efforts should one, focus 

on outcomes, like increasing self-sufficiency rather than outputs 

like participation hours; two, focus on labor market demand and 

local employer needs; three, make it easier to align adult basic education, job training, post-secondary education, and support services 

like childcare and transportation assistance; four, certify programs 

as compliant with the work requirement rather than counting individual participation hours; and five, coordinate and recognize reciprocal compliance with other programs such as SNAP, WIOA, and 

Medicaid. Thank you. 

[The prepared statement of Ms. Tessitore follows:] 

22 


33809A.008

Statement of Kelly Tessitore on behalf of Jewish Vocational Service, Boston, Massachusetts 

Before the House Committee on Ways and Means Subcommittee on Human Resources 

"Jobs and Opportunity: local Perspectives on the Jobs Gap" 

Aprill2, 2018 

Good afternoon Chairman Smith, Ranking Member Davis, and members of the Subcommittee 

on Human Resources. My name is Kelly Tessitore and I am the Vice President of Advancement 

at Jewish Vocational Service in Boston. JVS Boston is a nonprofit, community-based 

organization in workforce development. Our tag line at JVS is "Skills Jobs Careers" and that's 

exactly how we approach our work. We target our services to unemployed and underemployed 

working-age adults, to low-wage workers in need of career advancement services, and to the 

businesses that employ t hem. 

I began my career at JVS more than 20 years ago, the same year as the 1996 welfare reform, 

and since then I have designed and operated dozens of programs for low-income populations. I 

would like to talk to you today about my experience helping people strengthen skills, access 

jobs, and build careers. 

At JVS we use a variety of models in skills training (for 8 different sectors), education (including 

high school diploma, ESOl , and college access programs) and job placement. We operate a onestop career center AKA American Jobs Center. JVS's greatest strength is our deep relationships 

with employers. Last year more than 1,200 employers hired a candidate from us, and we 

worked with 20 employer partners to provide onsite training (primarily English language 

training) to 1,600 incumbent workers. 

Our employer partners tell us they can't find enough workers with the skills they need, in many 

cases creating critical labor shortages. Although the current low unemployment rate is 

encouraging employers to look at hiring populations they haven't considered previously, most 

employers need skilled workers. To give them those skilled workers, and because we believe 

that the best way to lift people out of poverty is to equip them with in-demand skills, we work 

with employers to build training programs. We look at the positions they need to fill, and the 

skills and characteristics that make someone a good match for those positions. Currently we are 

training in: healthcare, biotechnology, pharmacy, information technology, hospitality, banking, 

food service, and retail. let me walk you through one of our programs. 

Our pharmacy technician program includes training on medications and anatomy, pharmacy 

law, hospital basics, customer service, and inventory. We partner with pharmacy leaders CVS 

and Walgreens to provide an extern ship to each participant. These externships give students 

real-world experience that helps them adjust to work before taking on a full-time job, and they 

give CVS and Walgreens access to a pool of trained applicants that can meet their skill needs. 

The twelve-week program prepares graduates to take and pass the national Pharmacy 

Technician Certification Exam. We cover the exam fees, and our graduates pass the certification 
23 


33809A.009

exam at higher rates than the national average. The relatively short length of the program is 

attractive for adults who may not be able to afford to return to school for longer periods of 

time and are looking to get into the workforce as soon as possible. 

Pharmacy technicians can expect to earn an average annual income of $31,00~4,000. Last 

year, eight out of every ten workers enrolled in our program were hired. And completing the 

pharmacy technician program is just the first step in any number of possible career pathways. 

Students can build upon their pharmacy technician certificate by going to pharmacy or nursing 

school, or get more specialized training leading to a chemotherapy or a sterile prep 

certification. Some of our graduates have gone on to become assistant store managers earning 

more than $60,000 annually. 

This is one of several career pathway programs, which are highly effective at moving people out 

of poverty. But our fabulous training programs don't serve very manyTANF recipients-on 

average fewer than 10% of participants are on TANF. We have an excellent relationship with 

our state TANF authority and we work very closely with them. We have spent a lot of time 

thinking together about why TANF doesn't move people into work and how we could change it. 

I think at the end of the day there are three major issues. 

First, TANF emphasizes job placement and de-emphasizes skills, even though we have 20 years 

of research showing that "work first" doesn't work-that job retention is poor and people 

return to assistance, and that we are still seeing generational poverty (in Massachusetts, more 

than half of young parents receiving TANF today were also members of a household receiving 

assistance when they were a chi ld). Even though employers can't find workers with the skills 

they need to fill their critical labor shortages, the structure ofTANF restricts education and 

training activities. TANF hasn't been updated in 20 years and it hasn't kept up with the way that 

employers are hiring now, and we need changes that will allow and support skills acquisition. 

Specifically, the 30% caseload limit, the "non-core" activities designation, and the 12-month 

time limit on education are major barriers to giving TANF recipients the skills that employers 

need. 

Second, TANF is overly complicated for both clients and systems to administer, counting the 

wrong things that don't focus on work and skill development. TANF has become a benefits 

processing program focused on preventing abuse rather than a transitional catalyst to work. In 

my 22 years of working with low-income populations, I can tell you that most of the people I 

have met do in fact want to work, desperately want to work, but they don't want their 

economic situation to worsen when they leave cash assistance. People need help navigating 

their way to economic mobility, and they need help navigating the effects of earned income as 

they make that transition. 

If we want people to use TANF as a transitional catalyst to work, we need to change the rules so 

that we can incentivize work, allow for training and skill development, and make it clear to 

participants and to program staff assisting them how working will affect their future benefits. 

2 
24 


33809A.010

Specifically, we should treat income and assets differently, and give careful consideration to 

how TANF interacts with other systems. TANF affects child care, which affects housing, which 

affects food stamps, and the interaction of those things makes work risky, instead oft he safer 

choice. We have to change up that paradigm about how the benefit programs interact, so that 

t he investments we are making in people who are in our public benefit programs can work 

together to launch people into economic mobility. I'm not talking about growing TANF, but 

once someone is on the case load, we need to keep them engaged and continuing on a path to 

self-sufficiency. 

Finally, t here is a third issue about how work requirements operate and how they affect a 

program. It is a myth that work requirements motivate more people to work, although they do 

motivate more people to focus on their monthly participation reports. I have operated at least 

a dozen programs that feature a work requirement, and in all cases t he very real struggle is t hat 

compliance becomes the primary deliverable and outcomes take a backseat. To maximize 

results, work requirements efforts should include these principles: 

Universal compliance: Public assistance recipients are often involved in or eligible for other 

services, and efforts to help them achieve self-sufficiency should be complementary rather than 

conflicting. Programs should not set up potentially conflicting participation requirements, and a 

participant who is satisfying a participation requirement in one program (WIOA, TANF, SNAP, 

Medicaid, etc.) should be considered to satisfy all others. 

Client enrollment in approved program meets participation requirement: Programs should be 

approved as compatible with the work requirement, and participants enrolled in qualifying 

programs should be deemed to be meeting the standard. Counting and certifying participation 

hours for each individual is time-consuming and expensive, and distracts program staff from 

helping participants build skills and find employment. 

Focus on outcomes (increasing self-sufficiency) rather than outputs (participation hours): The 

goal of investments in employment and training programs is to increase participants' 

employment and income. Work requirements should promote the achievement of participant 

outcomes- learning gains, credential attainment, job placement - rather than counting their 

hours of participation. 

Include all services needed in a career pathway model: Career pathway models allow lowskilled individuals to combine work and education while obtaining in-demand training and 

postsecondary credentials. State policies that support career pathway strategies make it easier 

to align adult basic education, job training, postsecondary education, and support services like 

chi ld care and transportation assistance. Work requirements for public assistance recipients 

should recognize all career pathway components and accommodate these models. 

3 
25 

f 


33809A.011

Focus on labor market demand and local employer needs: The focus of workforce 

development activities should be labor market demand, and developing skills-based solutions 

to help job seekers meet that demand. Program design must be flexible enough to adapt to 

regional and local employer needs, and include a range of education, training, and job search 

activities. 

4 
26 

Chairman SMITH. Thank you. 

Ms. Terenzio. 

STATEMENT OF HEATHER TERENZIO, 

CHIEF EXECUTIVE OFFICER, TECHTONIC GROUP, LLC 

Ms. TERENZIO. Thank you for having me here today to speak 

about a new way to build talent in high-tech fields. I believe we 

have an innovative, low-cost way to get Americans to work in highpaying technology jobs without a college degree and without acquiring any debt. 

My name is Heather Terenzio. I am the Chief Executive Officer 

and founder of Techtonic Group, a software development company 

based in Boulder, Colorado. 

I have been the Chief Executive Officer of a technology company 

for 15 years. Our company works on writing software code for 

websites and mobile applications. Our clients have been everyone 

from venture-backed start-ups to Fortune 1000 companies. I have 

an Ivy League degree and was an engineer, but most of what I 

learned about writing software I learned on the job. 

Over the years, I have worked with other Ivy Leaguers, college 

graduates, and people with all different kinds of backgrounds. And 

the one thing that I have learned is that if you have a desire and 

an aptitude for software development you can be a great software 

developer. 

About 4 years ago, I was giving a talk at a vocational school in 

Boulder about careers in software development. And at the end of 

the talk, a young man approached me. 

He said, ‘‘Your company sounds so cool. I have been teaching myself to code for 10 years, but I only have a GED, so I can’t find a 

job. But I promise if you hired me and gave me a chance, you 

would never regret it.’’ And so right then and there, I said, ‘‘I will 

see you on Monday.’’ 

And we learned that he had grown up in the foster care system, 

that his mother was in jail, and he had bounced around a lot as 

a kid. The one thing that gave him solace was playing computer 

games, and teaching himself how to write code, and build his own 

games. 

He absorbed everything we taught him about building software 

in a production environment and quickly became a contributing 

member of our team. 

About 4 months into his job with us, he walked into my office 

and said, ‘‘Thank you so much for this job. I am so grateful to be 

here. You have changed the course of my life.’’ 

And I thought, in my 15 years in this industry, nobody had ever 

said that to me. So right then and there, I said, ‘‘Do you have any 

friends? This is a really interesting thing that is happening here.’’ 

It turns out there were a lot of people out there like him. We decided to explore further and called our program an apprenticeship 

program, and we did this kind of tongue-in-cheek because we were 

training people using a paired program just like a journeyman and 

his apprentice might in the trades. 

We soon realized that apprenticeship had a Federal designation 

and decided to make it official. We worked closely with the Department of Labor to modify the application process to relevant compaVerDate Sep 11 2014 08:22 Mar 08, 2019 Jkt 033809 PO 00000 Frm 00030 Fmt 6633 Sfmt 6602 I:\WAYS\IN\33809\33809.XXX 33809
27 

nies like us and we became an official apprenticeship with the Department of Labor. 

We were the first software apprenticeship in the United States. 

We are still the only one in Colorado and we are still only one of 

a handful in the whole United States. 

For our class now, we have formalized our selection process and 

our training. For our last class, we had 500 applications for 10 

spots. We have now had over 50 apprentices come through our program. 

We now offer a service to our clients where they can hire us to 

build their software, and at the end of our engagement, they can 

hire in those apprentices as their own. It is a win for everyone. Our 

clients get their software written with a senior team while we train 

apprentices. Our apprentices work on real-world projects while 

working toward a career in software development. Our clients can 

acquire our team of fully-trained and diverse talent as their own 

full-time employees. 

We have had apprentices come through our program who are 

now working for companies like Lockheed Martin, IBM, Zayo, and 

Pivotal Labs. 

Our program is able to attract a more diverse talent pool than 

a software boot camp or a college because we partner with our local 

government and foundations to pay our apprentices a salary while 

they are actually in our program. We are currently 75 percent 

women, minorities, and veterans, and they are paid a livable wage 

throughout the entire program. 

We recently closed on a Series A round with a likeminded venture fund and we have plans to grow aggressively this program in 

the next couple of years. 

Software development developers are in high demand. Unemployment rates for software developers are under 2 percent. A college 

degree is not required to be a great software developer. We strongly 

believe that programs like our apprenticeship are a cost-effective, 

no debt pathway to a high-paying, middle-class job in a desirable 

field with unlimited career potential. 

Thank you for your time and attention here today. 

[The prepared statement of Ms. Terenzio follows:] 

28 


33809A.012

Testimony of Heather Terenzio 

CEO, Tecbtonic Group, LLC. 

Boulder, CO 

House Ways and Means Subcommittee on Human Resources 

April 12, 2018 
29 


33809A.013

Techtonlc Group 

Solving the Software Development 

Talent Pipeline Crisis 

A WHITE PAPER BY THE TECHTONIC ACADEMY 
30 


33809A.014

What Everyone In Software 

Is Talking About 

(Except the Solution) 

Software companies are acutely aware that tnost scrtw-dl'e de-;elopment is 

learned on I he job. Even lhe basi students coming out of I he top colleges 

with Ccn~JUter SCience degrees will need ramp li ne 10 become p<eficienl W1 

a given tech<1ology. 

fndustl)' research shows that the average entry-level software developer 

takes 6-8 months 10 ramp-up and become a lull contributor. 

lllhat weren't enough of a problem. finding top-level talent is even a bigger 

is..<;ue. According to lhe Bureau of Labor Statistics. lhe nAtiOnal 

unempiOymEnl rate among software developers and engineers was just 

2.5% in the fourth (Jlarter of20td, companad wilh a natioo181 joblessness 

rate of 5.7%. Finding talent is a lui-time battle and wage inflation is out of 

CQfltrol even lor entry-level programn1e<s. n1e problem is only forecasted 

to get worse. The Bureau ol Labor Statistics projects a wnopping 22.8 

percent employment growth for software developers belween 2012 and 

2022. which is muelt raster Lhan average for an ooo.•pations. Thete is also a 

strong desire to hire women and mW1orit•es itto ted~tical roles. However, 

High Schools. Colleges and Boot Camps can't churn oul gnaduales fast 

enoLJQh to fill the void All this adds up to equal a huge demand for Lop level 

so:tware developers. 

Even though the 

outlook for our talent 

needs appears bleak, 

there is a solution. 

We have discovered an 

untapped talent pool 

that can be mobilized 

to fill the talent gap. 

Teehlonie Group 
31 


33809A.015

Techtonic Academy 

Developing New Talent Channels 

Tech tonic Academy was developed to specifically address the talent 

de'ICiency in software development. Tecl1tonic Group has a program that 

beMfits our business, our clients, and our oonmL.:,.ty. TI1is is a rare 

in·vlin·\o\~n si1ualion. 

At Techtooic Academy we are proving that anyone with desire and a 

passion for software development can become successful in this field. 

We are specifically targetw19 YOUf'l9 populatiolos U1at rnay nol have had lhe 

means for higher education or chose the m1hta<y as a career. And we are 

teaching them llOW to be great sofiware developers. 

For example, Ieday there are tens of thousandS of underemployed youU1 

and Veterans who do not have the economic means to artend a software 

boot camp (•Nh1ch can cost from $20,000·530,000) but have the desire. 

aptituoo. and abilty to become software developers. TecillO(liC Group has 

created a proprietary system to identify promising cJeo;eloper talent. After 

qualified c,andillates comprete a rigO<OUS traning they are moved into a 

software clevelopmet 11 appretlll<:esh•P program whict1 gives them 

progressi•leiY more and moro complicated tasks. After approxmatety 6 

1l1011thS, successlul Techtonlc Group Apprentices graduate to thO status of 

Jr. Developer Ounng the apprenlicesl1it) program they ate paid a livable 

wage and work beside seasoned developers. 

( 

Apprentices have 

unprecedented access 

to real world leaming 

opportunities on real 

projects with real 

clients and deadlines. 

And, of course, a fully 

stocked kitchen. 

Teehtonle Group 
32 


33809A.016

Building a Talent Pipeline 

for Clients 

Not on~, is th$ apprentice program beneficial to !he Techtonic Group 

talent pipelo1e but to c~ents as well. The I echtcn'c Academy results in 

lower client fees and potential new team members for a client's 1n·house 

development team. Whm chents hire Techtonic Group for lheir 

outsourced so"ware needs they wt1 always !laVe a senior develOper 

architectng and overseeing the application develOpment. The rest of the 

toom "''"be rounded out wiU1 m1d-tevet and J•. Developers. Tectllonic 

Gr0t4> bits out local Jr. Developers at rates comparable to offshore 

dev(!topment SllOPS. At the end of an 1.1 month engagement, clients wiP 

have the option to hire those Jr. Developers as U1elr own employees. 

This gives Techtonlc Group cl1ents the opport1.11ity to hire people w1th 

kno\•Aedge of their systems and Teehtonic Acaoemy Jr. Developers the 

opportunity to adVance tt1eir career. 

"A bacllelor's degree in computer science is a good idea, 

but a degree alone does not a coder make, • says Heather 

Terenzlo, CEO of Techtonic Group. "Employers look at track recordSsomeone from a great school with no outside coding projects or 

interesting technical accomplishments is seer1 as a project that will 

need ramp up over time. Compare U1is with someone who is a rock 

star coder with no degree but a huge list of achievements - that's an 

appealing and easy hire. 

Clients f11d 11181 develOpers coming oo.rt of the TGA program are loyal, 

knowledgeable (lll(;i lla\le a str0119 work ethic. Craduales have at teas! 

one year of software expenence. have seen a vancly of real-world 

development projects, and wo~~ed wi;h a valle~/ of tools and 

tecmologies. Graruares understand the importance of deadliles, 

meehng ellen! expectaliol'l:l and \VOtklllg wrthin a re<d offiCe environn1ent 

- skills that cannot be taught by any bootcamp or motersity. Typical 

staning salaries when clieolls convert rGA radt~ates to emplOyees are 

around $45,000·50.000 per year 

THE BENEFITS: 

1. A solid pipeline of junior and 

mid·level talent who are 

contributing team members on 

their first dayl 

2. Help a young adult or Veteran a 

chance at a rewarding and 

lucrative career 

3. Break the cycle of poverty among 

Colorado youths 

4. Hire more women and minority 

talent. 

5. Give back to a veteran who has 

served our country 

6. Gain a loyal and grateful workforce 

7. Lower your talent recruiting costs 

8. Employees who are trained in soh 

skills such as being on time. 

professional dress and office 

etiquette. 

9. "Try before you buy" software 

developers 

1 o. Developers who understand 

Agile methodologies 

Techtonlc Group 
33 


33809A.017

CASE STUDY 

Breaking the Cycle of Poverty 

"I never would have omagJned lhal a careef loke lh>S was even a pos$ibitily. 

Techt01ic Academy 11as literally dlanged my life." Jose is U1e son or a 

janotC)( and hoes in a? bedronm hOuse w1th 6 relalives. He wentlo 1 year or 

coom1LI1ity oollege with a focus n software development but foLnd the 

costs prohibitive. Jose dropped out of oollege end was working at a 

restaurant when he applied to Techton,~ Academy. He was hirod as an 

apiJ(enlioe and quickly started contribo.rting to his Drupal team. Wothin 6 

months he was prornoted to Jr. Developer and was overseeing 2 new 

ap!J(entioes. He is ourrenUy an employee of Techtonic Group w()(king 001 a 

large, complex .Net project 

CLIENT CASE STUDY 

Building Great Software and a Reliable 

Pipeline Of Employees 

A l;uge Health <:are technOlogy <;on1p111y on Del over. Colorado has open 

roquisilions for 20-JO developers per year. The-JI"'1Ve a full time recruiter on 

staff and re1aln several expensive staffing seard1 corrpanoes The limellne to 

fi1d good talent is excn;cialo1Q~f IC)(1Q. Employees a-e rrusttated and 

lntcmal mornle os low because they arc understaffed. They outsouroed one 

of their mission critical Ne1 P<Oiecls 10 Techlonic Group. This panioular 

prOjeCt rectu11ed 1 SE!IliOr developer. 3 mid-level developers and 4 Jr. 

Developers. They 11ave since hired 3 of tM 4 jun« de-JetopefS. At U'le 

cfieni's request, Techlonlc Academy 11as also added 2 Jr. Developers 10 tM 

toom with tho intention of hiring them ~~ fL•I time team mcmbcro. Tho end 

result. IS tl1at tl)ey 1\ave a Qual~y software IJ(cduct. 111at was developed for 

a reasonable rate. and has added 3 (and potcmJ<llly more) loyal and trao>ed 

membefs to tl1elr workforce ror less tl'lan they would have paid a recruiter. 

In l echtonic ACademy, they have found a reliable source ot talent to 

develop otl1ef products woU111o theor company. 

\_ 

) 

I 

I 

/ 

/ 

Techtonic Group 
34 

f 


33809A.018

Who Is Benefitting? 

Trailblazing companies already taking advantage of a new way 

to develop software and recruit talent with Techtonic Academy: 

I 

healthgrades· 

How America finds a doctor." 

Tec:htonic Group 
35 

Chairman SMITH. Thank you. Great perspectives. It is exciting 

to hear success stories, inspiring, in fact, from different perspectives, so I am very grateful. 

Mr. Potaczek, again, thank you for being here and sharing your 

personal story and being open to providing all of us up here with 

a better understanding of the challenges and opportunities facing 

individuals transitioning back into the labor force. 

One of our Committee’s priorities is to ensure that Federal programs are providing the right incentives and supportive services to 

help folks escape poverty and move up the economic ladder. Can 

you speak a little more about the transition back into the labor 

force and perhaps even some of the concerns you had upon or during that return to the workforce? 

Mr. POTACZEK. Transitioning back into society and working, it 

is a difficult challenge; transportation, you know, boots for the job, 

tools. With this program, it has kind of given me a head start at 

that. They gave me transportation. They gave us work clothes like 

shirts. The tools, they gave us the tools to get started. 

So instead of getting out of incarceration with a lot of things on 

my mind, I knew that if I just did the right steps, by the time I 

got out, if I called them and asked to get hired, I would be hired, 

and I would have a jumpstart on things. 

And one of the things that always got me, the times I got out 

and went back, was I had so much on my plate I felt like it was 

hard for me to stay focused. When you are working, and you are— 

they give you the tools and whatever you need to work, it was a 

lot easier for me to stay out there and be part of society with working. 

And I noticed that I was working so hard that I didn’t have time 

to want to do anything else. I would go home, and I would sleep, 

and I would get up and go to work. 

And then I noticed that my money started going to good things. 

It started going to society, it started going to my family, clothing, 

tools. 

I mean, that is all part of living nowadays. It is not—my time, 

assets, it was all going to positive things and I have never been 

able to say that my whole life. 

Chairman SMITH. Very good. And can you say again, you were 

released and then you, the next day, was it, that you reported for 

work? 

Mr. POTACZEK. I was released, I think, on a Friday and the 

weekend was—or maybe it was a Monday. I was released on Monday, and I called up Austin Electric, and I was employed at my 

interview the next Monday and started work. 

And that is another thing. I have gotten out before and I have 

called, I went and applied to 20, 30 places, I mean, fast food, every 

place you can think of. I never got one call back and it really kind 

of left me in distraught. It messed with my mind a little bit. 

And I am afraid of failure and I tend to shut down as a human 

when I see failure, so this program has given me a sense of hope. 

It has given me a family that I didn’t have at the time, friends, motivation, inspiration, and success. 

36 

And I am sitting here today, I thought I would never be here. 

I mean, you could tell me 8 years ago you are going to be sitting 

in that chair and I would tell you absolutely not. 

And the thing about it is the knowledge, you have to want it. 

That is the thing. An individual has to want to do the right thing, 

to be better, to learn more. 

It is on both ends. It is not on, you know, just my end or their 

end. Working together, and putting something positive into something, and making it grow has done a lot for me. 

Chairman SMITH. Very good. 

Mr. Thomas, would you care to add anything in terms of maybe 

the training that took place and how you kind of envisioned being 

able to use the skills that were required? 

Mr. THOMAS. Sure. So, when we started the program when we 

actually connected with Connie, you know, the first phase of the 

program was we would go to various Arizona prisons. And the biggest challenge we had in doing that was most of the inmates that 

were interested that would come to our table and show interest in 

our trade weren’t getting released until 2021 or 2022. And, unfortunately, the problem that we have, the shortage of manpower that 

we have, it is effective today. It is not a tomorrow problem, it is 

a today problem. 

So, we looked at it and said, well, you know, what would be really ideal would be to actually have a training program while they 

are incarcerated. So, we started the program and it has been very 

successful. 

You know, at the end of the day, the only requirement we have 

is that they have to have the desire to want to learn and the ability 

to show up and put their best foot forward each and every day. 

Chairman SMITH. Very good. Thank you again for your perspectives. 

And in the interest of time, I will now recognize the Ranking 

Member, Dr. Davis, for 5 minutes for questions he might have. 

Mr. DAVIS. Thank you very much, Mr. Chairman. And I must 

tell you that this is one of the most pleasant hearings that I have 

ever participated in, and one of the reasons is that I have personally spent a great deal of time working with programs like these 

and to see the kind of success that you have experienced just reinforces my belief that there is much more success to be had. 

So, I commend all of you, I thank all of you, and I just know that 

if we can put into the programs themselves what is needed for people to experience the kind of successes that you have had, and especially when we talk about individuals who have been incarcerated, who have prison records. 

Mr. Potaczek, do you still have what is called a record, or have 

you been able to have anything done with that? 

Mr. POTACZEK. I am still—I have completed parole and I still 

have a record. I think I will for a while until I can, I guess I don’t 

really know the process to get it dropped. That has always, I mean, 

even getting housing or something, it has always had an effect on 

me having a record, they can look that up. 

Mr. DAVIS. Ms. Wilhelm, let me ask you, is there much opportunity that you would expect him to be able to get his record exVerDate Sep 11 2014 08:22 Mar 08, 2019 Jkt 033809 PO 00000 Frm 00040 Fmt 6633 Sfmt 6602 I:\WAYS\IN\33809\33809.XXX 33809
37 

punged or get executive clemency or anything where he will not 

have a record? 

Ms. WILHELM. That is one of the things we are looking at right 

now. We keep trying to remove these obstacles for them as they get 

out and get released. We have not really looked into that. I know 

that there are other people in the social justice area that have 

looked at that type of thing and we will continue to try to work 

with them. I think that is a major obstacle that we need to take 

a serious look at. 

Mr. DAVIS. Thank you. Ms. Tessitore, you mentioned that work 

requirements make programs focus on compliance sometimes instead of work. Could you elaborate a little bit on that? 

Ms. TESSITORE. Sure. For TANF, we have to complete a monthly form for each person showing the hours attended on each day. 

A better system would be to ask us—‘‘during this month, was this 

client active in your program?’’ And we could say yes instead of 

spending hours and hours combing through all of our attendance 

records to compile those. 

For ABAWDS who are receiving SNAP, their standard is 80 

hours a month and they actually have a restriction on how many 

hours they can spend in job search versus an education and training component, so we have to count up their hours that are job 

search and their hours that are education and training. 

We pull information from four sources, from our One-Stop database for workshops they have attended, from our client database 

for meetings we have had with them and other activities, from CRI 

which is the software they can log into that has a unique user ID 

and records their time spent doing Career Ready 101, and for their 

self-certification of the small job search portion. 

We compile all of that and then those records must be transmitted securely to the TANF authority, which is not a simple matter either. There are multiple steps on how you safeguard people’s 

personally-identifiable information and transmit securely. 

Mr. DAVIS. Thank you. Ms. Wilhelm, can I ask you, where do 

you get your funding? Who funds your program? 

Ms. WILHELM. The individual employers provide and pay for 

the trainers, the curriculum, the tools for the program, and our association which is a trade association funded by builders and trades 

is paying for all of the equipment that is out there. 

Mr. DAVIS. I will tell you, your stock just went up another 

notch. 

[Laughter.] 

Ms. WILHELM. Thank you. I appreciate that. 

Mr. DAVIS. Ms. Terenzio, let me ask you the last question. The 

work is technical that you train people for. How is it received in 

terms of them being able to get jobs? 

Ms. TERENZIO. Well, once they get into our program, as long 

as they successfully complete the initial class we put them through, 

we will hire them as a full-time employee with us. And then once 

they are with us, we will put them on a client project and the client 

also has the option to hire them as a full-time employee from our 

program. So, it is actually kind of you get to work with the person 

before you actually have to commit to hiring them, so it is almost 

guaranteed. 

38 

Mr. DAVIS. Thank you very much, Mr. Chairman. I yield back. 

Chairman SMITH. Thank you. 

Ms. Walorski. 

Ms. WALORSKI. Thank you, Mr. Chairman. 

Mr. Potaczek, thank you so much for coming. You did a great job. 

Ms. Terenzio, you say in your testimony you have been successful 

in taking people that don’t have degrees and teaching them to be 

software developers. 

The Subcommittee held a hearing last year examining the 1 in 

7 16- to 24-year-olds that are neither in school nor working. We 

heard stories from groups that help these young people train for, 

find, and keep jobs and we heard firsthand from one bright young 

lady who had been through one of these programs. 

One takeaway from that hearing for me was that sometimes we 

put too much pressure on kids to go to a 4-year university right 

out of high school whether they are ready or not, and worse, we 

imply that anything less is failure. This mindset does more harm 

than good. The pressure we keep on these kids can lead to failure 

because they get discouraged, throw up their hands, and say, ‘‘I am 

not smart enough. I am not going to do this, and it is over.’’ Maybe 

they needed a few years of community college, maybe they needed 

a 4-year degree, maybe apprenticeships and trade schools were a 

better route. Whatever the case, the discouragement leads to discouragement. 

I also took away from that the power of human connection, and 

if someone comes alongside that person, that disengaged person, 

coaches them, believes in them, all that doubt washes away and 

they can be successful. 

So first, I want to applaud you for working to bring people into 

an industry that, from the outside looking in, probably looks like 

an unclimbable mountain for somebody without a degree. 

I want to ask you, what are the untapped talent pools that you 

look at? How do you engage them? For our most disadvantaged and 

disengaged people in the shadows, do you think there is hope to be 

able to connect them to apprenticeships like yours and these other 

talent pipelines to reconnect to the workforce so they can build a 

better life for themselves and their families? 

Ms. TERENZIO. Thank you. So, the beauty about software development is that if you are a great software developer, once you are 

in this industry, nobody really cares where you went to school and 

what your background is. And our office in Boulder is actually, was 

across the parking lot from the Google office. 

And we have a theory that people who come to our office feel 

supported, see people all around them who came from the jail system or the foster system, all different kinds of backgrounds, and 

they are succeeding with us. And so, it is very much a culture of 

if they can make it, so can I. And so, I think it gives people that 

kind of motivation to know that other people with different kinds 

of backgrounds can also make it in this kind of career. 

And the word in our program has gotten out very quickly. We 

work really closely with our workforce centers, with nonprofits, 

with foundations all within Colorado. And every time we even just 

open up on our social media that we have a new class starting, we 

instantly get 500 applications. 

39 

Ms. WALORSKI. And pardon me for the interruption, but do you 

immediately connect them? So, when they come on your program 

and they may come from that shaky kind of a past where they may 

not have a whole lot of confidence or feel like they have failed 

something for no reason, do you connect them with the human 

interaction then? Is there somebody that is absolutely connected to 

keep making sure that they are moving forward? 

Ms. TERENZIO. Yeah. We do have a mentor system within our 

company so that you are paired up with people. And, actually, you 

are paired up with somebody who was just an apprentice a year before you, so they know where you came from, they have a really 

close firsthand knowledge of where they were just about a year ago 

and that person is actually responsible for training them on what 

they have just learned and getting them integrated into our company. 

And we are a for-profit company, so we are pretty motivated to 

get people integrated and productive as fast as possible. And so, we 

are putting them on projects, we are exposing them to clients, we 

are exposing them to work going on within our company, we are 

trying them out on different kinds of projects because we want 

them to be working and we want them to be effective really quickly 

within our company. 

But, again, I think it is more the culture that we have created 

of achievement and that everybody from every kind of background 

can make it with us. 

Ms. WALORSKI. Interesting. Thank you. 

Mr. Potaczek, you mentioned something that struck me because 

I really believe this, and you are a glowing example. But can you 

just speak for a couple seconds on, you talked about the employer, 

the electrical company that you work for was like a family, and 

what struck you when you—because you said, you know, you were 

out for a week, you looked at fast food and all those other places, 

but when you engaged with these folks, what struck you about 

that? I mean, did you really see that, ‘‘Oh, my gosh, I am actually 

going to work for the person’’? Just, do you have any thoughts on 

that? 

Mr. POTACZEK. Absolutely. When they came and visited us, 

and they got to talk and speak about what the requirements were 

and what they were looking for, they said that they instill a sense 

of family in people and I have had nothing but a family orientation 

with this company. And I am not saying that all companies will 

bring that. I hope they do, you know. I can’t say that. 

They have supplied me with the tools, I didn’t have to worry 

about the tools. I am getting picked up for work. I mean, I have 

never had a company that would do that for me. 

Ms. WALORSKI. Did you feel like on days that maybe, you 

know, you had questions or whatever, there was a person you could 

connect to that was not going to give up on you? 

Mr. POTACZEK. All the time. 

Ms. WALORSKI. That is awesome. 

Mr. POTACZEK. I have been able to call anyone for help. 

Ms. WALORSKI. That is awesome. Thank you so much. Thanks 

to the panel. And I yield back, Mr. Chairman. Thank you. 

Chairman SMITH. Thank you. 

40 

Ms. Chu. 

Ms. CHU. Thank you. 

Ms. Tessitore, thank you for joining us to speak about your successful workforce development program, but I was shocked when 

you said that less than 10 percent of your participants are on 

TANF. Many of the programs that have been discussed today provide great opportunities for individuals if they have stability already in other parts of their lives, but what if they don’t? Individuals need to have support such as childcare, housing, and transportation in order to come to work and to carry out their duties and 

that can be difficult. 

Say, for instance, in my home of Los Angeles county, the average 

cost annually of childcare for an infant at a family childcare home 

is $9,186 and it is $8,579 for preschoolers. The average single-family household cost to rent is expected to hit $1,416 a month, which 

is an 8 percent increase from last year and could only increase I 

think. At the same time, TANF has not been indexed for inflation, 

making it increasingly more difficult for low-income people to meet 

their basic needs. 

So how does your program work with others in the community 

or utilize government resources to ensure that the basic needs of 

your participants are met while they pursue training and how 

could TANF be changed to be more effective in this regard? 

Ms. TESSITORE. So, thank you for your question. Honestly, programs don’t work well to move people off of TANF, resources need 

to be aligned. In order to move off of TANF, and to move successfully into work, people need some understanding of what benefits 

and supports will be affected when, and how those things interact. 

They need to be able to pay a reduced cost for childcare for a period 

of time, and a reduced cost for housing for a period of time. 

We have spent a lot of time, with the TANF authority and other 

agencies, thinking about what those risky points are for people, 

what are those points at which multiple things are falling away 

from you, and that work actually doesn’t make sense for you, and 

trying to put in place things that would help with that. 

I think also incentivizing work would help. Changing the way, 

and this is something that our TANF authority has proposed to our 

State legislature, changing the way, maybe disregarding income for 

the first 6 months or a higher disregard rate for earned income 

than for other income that you are considering in the caseload, 

changing the way assets are considered, looking at the grant 

amounts and aligning for different categories so that there’s not— 

you actually get more money if you are not in a work participation 

program, which unfortunately TANF is so byzantine that that actually is happening to people. A higher benefit amount if you are not 

work-required is something that is happening. 

It really needs to be a thoughtful design so that both the participant and the people trying to help the participant can predict reasonably what is going to happen to their income and their supports 

as they transition into work, and participants do need support for 

a period of time. 

There have been initiatives like the Secure Jobs Initiative in 

Massachusetts, which is a partnership between housing and the 

TANF authority and philanthropy. It was actually started by phiVerDate Sep 11 2014 08:22 Mar 08, 2019 Jkt 033809 PO 00000 Frm 00044 Fmt 6633 Sfmt 6602 I:\WAYS\IN\33809\33809.XXX 33809
41 

lanthropy, and then it was picked up by the State legislature to 

bring together all of the services that a family needs in order to 

transition successfully out of all of those things and they have done 

a lot of good work by planning together what those steps are going 

to be for participants. 

Ms. CHU. And can you say more about the assets? You said 

something about an asset should be determined differently. 

Ms. TESSITORE. Yeah. I think that in, some of it may be specific to Massachusetts, but every State is doing it somewhat differently, the way we, the amount that you disregard for an asset. 

I think it is that a car is exempted, your first car up to a certain 

value, but the second car is also in there. So, looking at the asset 

limits that we allow people to have, they are quite low, so if you 

have a car worth more than $2,500 or $5,000, you are over the 

asset limit and not eligible. I can’t speak exactly. 

Ms. CHU. And what if your client had healthcare needs? I mean, 

thank goodness we have the Affordable Care Act, but there are 

some of those who are trying to get into the workforce that could 

have healthcare needs and mental healthcare needs. And as a psychologist, I am very cognizant of the fact that there could be a need 

for services to treat depression or substance abuse. What do you do 

in that regard? 

Ms. TESSITORE. So, I will say that we are very, very fortunate 

in Massachusetts to have had universal healthcare for many years 

now and we do not see this as a major problem because we have 

universal healthcare. So, people would be maybe transitioning from 

the type of healthcare that they have, but they would not be 

threatened with the loss of healthcare in Massachusetts. 

Ms. CHU. And for those who have been addicted? Because I 

think TANF bars individuals from receiving assistance if they have 

a drug conviction. 

Ms. TESSITORE. I can’t speak about that. I’m sorry. I don’t 

know. 

Ms. CHU. Well, thank you. I yield back. 

Chairman SMITH. Thank you. 

Mr. Schweikert. 

Mr. SCHWEIKERT. Thank you, Mr. Chairman. 

Mr. Thomas, particularly, and maybe this is somewhat unique to 

Arizona in our Phoenix market, but we actually have jobs desperately looking for workers. Can you first, and I want to walk you 

around because you will see some of the different views sometimes 

on the Committee when you have an environment that desperately 

wants to give you a job, but why have you had such difficulties? 

Why did you have to move to this level of creativity? What is your 

environment like? Tell me about the jobs that are still looking for 

someone? 

Mr. THOMAS. Well, I think, and I can’t remember who alluded 

to it earlier, I think it was Ms. Walorski, we have created this environment with this younger generation, you know, that without a 

college degree you have no chance of success in life. And so, I think 

that there’s this feeling toward construction, for example, or 

against the skill trades, that it is, you know, substandard I guess, 

if you will. 

42 

And when we started our training program in mid-2015, one of 

the biggest challenges we had was simply finding people who were 

interested in the skill trades. So, for us, you know, finding a population, you know, that was more than willing and ready to come 

learn was a great success, right? 

Mr. SCHWEIKERT. If you, tomorrow, could find those willing to 

either go through the training or had the skill set, how many positions do you think you have or are still available in the Phoenix 

market? 

Mr. THOMAS. Well, in the Phoenix market, I would say it is 

thousands. For us personally, I mean, we could probably hire between another 200 or 300 and still have capacity for more, to be 

honest with you. 

Mr. SCHWEIKERT. In your top end, I don’t know if you would 

call them a journeyman or what, but how much can a highlyskilled, someone that has been in the profession a decade and 

learned their craft, make? 

Mr. THOMAS. So, our top guy last year, a field guy, made about 

$140,000 a year. 

Mr. SCHWEIKERT. Okay. So, there is this really interesting 

thing, you know, if you are willing to sit down and look at what 

we call the U6 data in unemployment, we are still just hovering 

at about what we call a 63 percent labor force participation. We 

still have, as of today’s report, 1.8 million folks on long-term unemployment and then those who have fallen off. And yet, I hear story 

after story after story from, you know, my community that we have 

thousands of jobs and just need people. It is so—this is—I am looking for a solution. 

Mr. THOMAS. Aren’t we all? 

[Laughter.] 

Mr. SCHWEIKERT. Yeah. Ms. Wilhelm, Connie, what do you see 

happening with the rest of the homebuilding community in the 

Phoenix market? 

Ms. WILHELM. Well, I am hoping we are going to continue to 

expand our program and hire more ex-offenders. It doesn’t help to 

just solve the electrical situation, you know, because we are all 

part of a system and I need framers, you know, I need everybody 

along the way so that we are all building our workforce together 

so that there are no bumps in the road and there is nobody that 

has to be laid off because the other trade is not there. 

So, you know, this is a ready and willing population that I have 

seen nowhere else. I have been to a lot of job fairs in a lot of different environments and I have never seen the hope and the gratitude that has been expressed by the incarcerated. And, you know, 

I tell you, it is an honor to be able to provide jobs for them. 

Mr. SCHWEIKERT. Brian, how do we tell your story to others 

that may be in a tough position that there is opportunity and hope? 

Mr. POTACZEK. I think you could take me to them and I could 

talk to them and tell them my personal experience. 

[Laughter.] 

Mr. SCHWEIKERT. You are pretty good at this. Hopefully, one 

day you are not planning on running for my job. 

[Laughter.] 

43 

Mr. POTACZEK. I feel that seeing gives a lot of faith. You can 

read a story and not believe it. For others, like I said, I would like 

to go into the prisons one day and tell them my success story. And 

that is with the two other trainers that were at the program, they 

were ex-felons. And to see them and hear their success stories really made me want to achieve it, and the hope that they have for me 

and instilled on me, I mean, like I said, it is a family-oriented 

thing. 

Mr. SCHWEIKERT. This is a really uncomfortable question, but 

I grew up in a household where my mother was a substance abuse 

counselor, so you know those sorts of things. What is the key to 

staying sober? Is it the fact that there is work and opportunity and 

is it that hope? What do you think the key is for our brothers and 

sisters out there that have had such a tough time? 

Mr. POTACZEK. I love that question. For me, the key to staying 

sober has been working and seeing how much my family appreciates what I have done for myself. You have to want it for yourself. You have to want to be sober. But to see people that I have 

never met, my family being proud of me and to say they are proud 

of me, it brings me to tears. I have never been like that. 

Mr. SCHWEIKERT. Brian, we are all proud of you. 

Thank you, Mr. Chairman. 

Chairman SMITH. Thank you. 

Ms. Sewell. 

Ms. SEWELL. Thank you, Mr. Chairman. And I want to thank 

all of our panelists. This has truly been a very inspirational, uplifting panel. When I first became a Member of Congress, my top priority was job creation. I grew up in my district and my district is 

in Alabama. It includes Birmingham, and Montgomery, and Selma, 

my hometown, so it is an old civil rights district. 

But the reality is a family of four in my district only makes $32,000 and the highest unemployment in the State of Alabama is 

in my district. So being able to figure out ways that I can close the 

skills gap and get people opportunity is really, really important. In 

fact, we have made a commitment to do a job fair annually and to 

move it around my district because Birmingham’s needs may be 

different than the rural parts of my district’s needs. And I have to 

tell you, every time we have had a job fair, it has grown bigger and 

bigger. More jobseekers and more employers are willing to come. 

But so often, the jobs go unfilled, so you get a lot of folks who 

feel a little frustrated because the skills that are being looked for 

these days are more, you know, technical and are computer-related. 

And for someone who has been a displaced steel worker, to tell 

them to go back and learn something new, it is hard. It really is 

hard. 

So, I guess my question—I have two questions. Ms. Wilhelm, I 

actually have a really great homebuilders association in Alabama. 

They are awesome. They have an apprenticeship program. But how 

do I encourage them to branch out and actually take a risk and 

hire felons? 

Ms. WILHELM. Tell them to call me. 

[Laughter.] 

I would be happy to share our experiences with them. And that 

is one of the reasons we wanted to come today because, you know, 

44 

hopefully we can be a model for other areas, and you do have to 

take a chance, and it is worth it. 

Ms. SEWELL. So how did you convince the homebuilders in Arizona to do it? I mean, did you guys purposely decide to do a second 

chance? 

Ms. WILHELM. I have been there for a number of years working 

with them. And every board meeting, I would hear, ‘‘We need workers, we need workers, we need workers,’’ and I was running out of 

options. I had been to refugee relocation agencies. I had been to a 

lot of high schools and everything. 

We were moving, and I ran across a binder where I had participated in a task force with corrections. And I remember that I had 

gone and seen some of their construction programs, so I just called 

them up. 

Ms. SEWELL. Did you? 

Ms. WILHELM. And said, ‘‘I would like to see what you are 

doing in the prisons. I would like to bring some of my trades out 

and look at what you are teaching them.’’ 

Ms. SEWELL. Was there resistance from your trades? 

Ms. WILHELM. I had to talk to them about the opportunity. I 

don’t know that I would say there was—there was hesitation, certainly. I mean, we are going into a correctional facility, you know. 

Ms. SEWELL. But success breeds success, obviously. 

Ms. WILHELM. Yes, yes. But it was definitely worth it. And, you 

know, what is really important is that you have a really strong 

commitment by the employer, and they were all in. I mean, they 

had to have a paid training program, they had to understand how 

it is to work with this population and that the challenges are a little different. They had to be able to work with us to try to overcome those challenges. 

Ms. SEWELL. What do you think is the biggest barrier as a— 

so I am sure you had strict requirements of who can come into your 

program, were some of the requirements barriers in and of themselves? 

Ms. WILHELM. From the employers’ standpoint? 

Ms. SEWELL. Yes. 

Ms. WILHELM. They had to have a paid training program because we were going in and trying to give these women and men 

hope, and a lot of them didn’t have the skills but we still wanted 

them in. It was very interesting because as we did our hiring fairs, 

we heard from a lot of them telling me, ‘‘Oh, I used to work for soand-so. Are they still in business?’’ So, it was very enlightening for 

us to see that there was a lot of skill there that we wanted to capture. 

Ms. SEWELL. Mr. Thomas, so how did your company decide to 

participate in a program and what are the requirements of that 

program? I really want to try to encourage the employers that I 

represent back home to take a risk. 

Mr. THOMAS. Well, and that is what it is. I mean, it definitely 

is an investment. 

Ms. SEWELL. Not a risk but an investment. 

Mr. THOMAS. I mean, and that is the way we—that is the approach we took is that it is an investment, you know. We are either 

going to pay today or we are really going to pay tomorrow. So, for 

45 

us, it was really, it was an easy sell. I mean, it was, look, it is a 

great population. They are healthy and willing to try this, you 

know, to try our trade. 

Ms. SEWELL. What is your success rate? I mean, not everyone 

is going to be brought in. 

Mr. THOMAS. We have had about an 80 percent retainage rate, 

which is, by all standards, a fantastic rate. 

Ms. SEWELL. Eighty percent? That is great. Absolutely. 

Well, Brian, you are truly an inspiration and I just want to encourage you to tell your story because no one can tell your story 

better than you, but your story speaks to so many people’s, you 

know, barriers and their own roadblocks. So best of luck in everything. 

Mr. POTACZEK. Thank you, thank you. 

Chairman SMITH. Thank you. 

Mr. LaHood. 

Mr. LAHOOD. Thank you, Mr. Chairman. And I want to thank 

the witnesses for being here today for this important hearing and 

for your testimony. 

In a prior life, I spent 10 years as a State and Federal prosecutor. And I am not proud of it, but I sent a lot of people to prison 

and jail, and I know that system very well. And I also served in 

our State legislature in Illinois and was very involved with criminal justice reform. 

We have talked a lot about how we find that balance between 

safety of our community, letting people out of prison early, getting 

them back into our communities, but also protecting society, and 

that political balance has been difficult. And, frankly, we haven’t 

had much success in doing that at the Federal level with criminal 

justice reform. 

And, you know, in the State of Illinois, our goal with our criminal 

justice reform was to get 25 percent of our current State prison 

population out and figure out how to do that, particularly the nonviolent offenders. And, again, everybody wants to be tough on 

crime when you run for office, and so finding that balance is important. And so, I am listening to your testimony today, and particularly, Brian, your testimony, and trying to find that right balance. 

And, Mr. Thomas, I read that I think you have 86 former offenders working for you and you have had, as you just mentioned to 

Ms. Sewell, an 80 percent retention rate. And I wonder if you have 

suggestions on that balance between protecting our citizenry and 

safety, but also giving people a chance. 

Mr. THOMAS. Sure. So, you know, you had mentioned the safety 

factor. You know, I mean, obviously, we want to protect our communities. The best way to protect them is to give them purpose. 

And so many of these inmates that I have had interaction with 

over the last, you know, 18 to 24 months, the biggest thing was 

just the fact that they wanted somebody who believed in them. 

Most of the inmates that we have hired, they are not bad people. 

Let me rephrase that. All of them are not bad people. They have 

made some poor choices in life. I think the best way to serve them 

is to give them that belief that they can do it. We have also made 

it a point that, you know, all of our managers get in touch with 

them at least every day to some degree. 

46 

So, I think, to answer your question, it is really about just giving 

them purpose. I think, ultimately, it is going to create the safety 

for our communities. 

Mr. LAHOOD. Well, I tend to agree with you. Being wanted or 

having a purpose is a big part of that. I am curious, you mentioned 

that your managers interact with them. Obviously, we have a parole system as Brian mentioned earlier. We have lots of integration 

systems. I am curious, do you feel that your managers are much 

more involved in aspects of their life or is it just related to what 

they do workwise? 

Mr. THOMAS. Oh, no, it is absolutely, if they have any issue 

that they are dealing with, whether it is personally or professionally, they are there to mentor them really, in essence, that is 

what they are there for. 

I do think it is more effective, just from an employer’s perspective, in the sense that it is more personable. You know, the parole 

board or the probation officers that they see, you know, those are 

just individuals that are there to do their job, to make sure that 

they are staying in line, whereas our managers are more, are there 

to support them, you know, in their personal life as well so there 

is a significant difference. 

And I think that has really, truly been one of the successes of 

this whole program is that it is not just teaching them a trade. It 

is, you know, they are mentoring them. And I can tell you, I have 

had a number of managers come to us and just tell us how it has 

impacted their lives personally as well. You know, they feel like 

they are really doing something beyond just for themselves or just 

for the company. 

Mr. LAHOOD. And it sounds like, from what you are saying, in 

some ways, they are kind of a life coach, right, on some of those 

core decisions that are being made. 

Mr. THOMAS. Exactly made. 

Mr. LAHOOD. So, I am curious on that. I mean, do you give 

them training, your managers, or how do they acquire those skills 

to engage in that? 

Mr. THOMAS. No, I don’t give them the skills personally. I 

mean, you know, obviously, it is something that we meet once a 

month and have a discussion around. Some of the managers will 

bring to us, you know, maybe some of the problems that some of 

the particular inmates are having and we kind of all work together 

to come up with a viable solution for them. We have had individuals that couldn’t find housing, so we stepped up and we basically 

paid for their housing to get them over the hump. So, it is a combination of, I think, a lot of different things. 

A lot of it is just learning on the fly, you know. A lot of these 

guys are just learning it as they are—because everybody is a different case, right? I mean, everybody is an individual, so all the 

problems are individually different too, so—— 

Mr. LAHOOD. Well, thank you for what you do, and for trying 

to help your community, and for sharing here today. I appreciate 

it very much. 

Mr. THOMAS. You bet. 

Chairman SMITH. Thank you. That is an amazing background. 

Oh, sorry, one more. My apologies. 

47 

Mr. BISHOP. Wow. 

Chairman SMITH. Mr. Bishop is recognized. 

[Laughter.] 

Mr. BISHOP. I am a low man on the totem pole. I won’t be long. 

First of all, thank you all for being here today. I am grateful, and 

we are all benefitted by your testimony. In my previous life, I was 

a prosecutor. I have been in and out of courts and had some time 

to spend in the prison system with folks, not personally, but in my 

role as a prosecutor. 

I don’t know that there are any services within the prison system 

that will prepare folks, inmates, for leaving. And I am wondering, 

Brian, what would it have been like if you had left without this, 

this transition into this beautiful opportunity that you have had? 

Mr. POTACZEK. I had already had results with being released 

and being reincarcerated because I didn’t have job stability. I 

mean, for me, that is what it comes down to is job stability and 

everything else comes past that, paying your fines with work, clothing, dental, health insurance, not using access, or I mean, it is just, 

it is better. For me with the job stability, everything else just kind 

of fell in place after that. 

Mr. BISHOP. That hits close to home for me because I have an 

18-year-old at home too and he just had wisdom teeth out, and he 

came home with a prescription for an opioid. And I didn’t, I purposely did not fill it because I just thought it was incredibly, let us 

just say, negligent on the part of the doctor for having prescribed 

it. It was way over prescription, as far as I was concerned. But I 

know what happens all the time and this is a message that we 

need to get out to a lot of parents who are in the same situation. 

But I wondered if I might ask the panel, there is a study by a 

Princeton economist, Alan Krueger, and he found that the increase 

in prescribing rates can account for between 20 and 25 percent of 

the approximately 5-point drop in labor force participation between 

1999 and 2015. Is that real? 

This is where the opioid crisis and the job issue interact. It is 

amazing to me that that is indeed an issue and it is that big of 

an issue. So, I don’t know, does anybody feel inspired to answer 

that question? 

Ms. WILHELM. I would be happy to talk a little bit about our 

experience. I would say probably 90 plus percentage of the people 

we interact with are incarcerated for some drugs or drug-related offenses and it is a huge problem. 

And I think one of the reasons that sometimes they are not successful, even after they know they have a job getting out, just actually showing up and whatever, is that intervention into them going 

out and starting to use again, so it is a huge crisis. And then sometimes they will work for a week, get their first paycheck, and they 

are gone, and they are out buying drugs again. So, no, we see it 

every day, not just in this population, but in the workforce certainly. 

Mr. POTACZEK. My experience with it, you know, I got my wisdom teeth pulled and I just started doing the pills. I was coming 

from a good family, my mom is supportive, not on drugs, came from 

a good community, and that spiraled me down and I lost everything just from that. I lost my job, so I believe in it. I believe there 

48 

is others out there and I believe it is affecting our communities 

really, really bad. And I have seen it from firsthand experience and 

I have had experiences with talking to other inmates about the 

same stories, how it just gets out of control. 

Mr. BISHOP. That is incredible testimony. And I have heard the 

same thing, I just didn’t know it was at this level, that it had had 

that kind of impact. 

Ms. Terenzio, you have a program that you participate in called 

Skillful. And the Skillful, I think it is the Skillful State Network? 

Ms. TERENZIO. Mm-hmm. 

Mr. BISHOP. Can you share with us what that is about? It 

sounds like a very interesting program for States. 

Ms. TERENZIO. Yeah. Skillful’s mission is to have employers 

consider employees based on their skills, not necessarily their background and degrees. And so, we work with them pretty closely as 

a model of basically what a company can look like if you consider 

people just based on what they can do and not necessarily what 

their pedigree looks like. 

And so, we helped them kind of get the word out. We are a case 

study for them. We support each other, you know, through literature and speaking engagements, and so we have worked pretty 

closely with them just in kind of getting the word out to other employers about what you can do if you don’t just consider degrees on 

every job application. 

Mr. BISHOP. So how many States are you in and how is this 

funded? 

Ms. TERENZIO. Our particular program or Skillful? 

Mr. BISHOP. Skillful. 

Ms. TERENZIO. Skillful is an offshoot of the Markle Foundation 

based out of New York City and they are just expanding. But we 

just, we partner with them. We are not a part, we are not actually 

Skillful, so we are just an apprenticeship program through the Department of Labor. 

And we are currently in Colorado, but we are looking, we are 

looking at rural-sourcing kind of jobs, so we are also looking at creating opportunity in rural areas where we can use our apprenticeship program to train people and maybe instead of Silicon Valley 

or going to India for software development, they actually go to 

rural parts of America to write their software. 

Mr. BISHOP. That’s fascinating. Thank you very much. 

Chairman SMITH. Thank you. So, you are saying someone could 

show up with a Nebraska Huskers attire on and still get a job in 

Boulder, Colorado? 

Ms. TERENZIO. Correct. 

[Laughter.] 

Chairman SMITH. Very good, very good. Thank you so much. 

Really, your insight, your perspectives, and these are great stories. 

Thank you again, Brian, for sharing your story and thanks to all 

of you. 

It involves everyone here, the complexities of the system that we 

need to look at, and I think this hearing is particularly instructive 

for us as we try to work together to move forward for the betterment of our country through the betterment of individuals and 

49 

some second chances, or third, or fourth from time to time as well. 

So, thank you very much for your participation here today. Thanks. 

We will now focus on the second panel of witnesses. 

So, as we are shifting positions here, I will say that, unfortunately, one of our witnesses was unable to attend today, a Mr. 

Tony Girifalco, and he is the Executive Vice President of the Delaware Valley Industrial Resource Center in Philadelphia, Pennsylvania. 

I do ask for unanimous consent that his written statement be 

made a part of the record. 

Without objection, we will do that. 

[The prepared statement of Mr. Girifalco follows:] 

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33809A.019

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House Ways and Means Human Resources Sub-Committee 

Testimony by 

Tony Girifalco 

Executive Vice President 

Delaware Valley Industrial Resource Center 

Philadelphia PA 

Chairman Brady, Subcommittee Chairman Smith, Subcommittee Ranking Member Davis, and members 

of the subcommittee, it's a privilege to provide t est imony before this distinguished body on today's 

issue-Jobs and Opportunity: Local Perspectives on the Jobs Gap. I suspect that some of what I offer is 

well-known by many of you. Still, I hope these notes add some value to this important discussion. 

I work for the DVIRC-a regional economic development organization with a public purpose: to support 

the profitable growth of small and mid-sized U.S. manufacturers. Our mission is to strengthen regional 

manufacturing companies by helping them continuously improve t heir competitiveness and profitable 

growth. We are affiliated with the national Manufacturing Extension Partnership (MEP) program 

supported by the U.S. Department of Commerce and the Commonwealth of Pennsylvania. The MEP 

program is a national network of organizations such as DVIRC that provide a wide range of technical 

resources, consulting, and training and education to small and medium-sized manufacturers (SMMs). In 

most instances companies pay for these services; in some instances they are offered through a costshare model. 

Our center supports manufacturers through three practice areas: customized consulting (business 

management, operational excellence, and top line growth), training and education, and executive 

network groups. Our clients are independently surveyed to assess our performance and value-added 

impact. Since 1988 we have served more than 2,000 manufacturers and generated over $2 Billion in 

client impact. I have been with the company for almost 30 years. 

In this brief I offer some of the research I've come across, a local perspective, and some observations 

based on working directly with t he workforce syst em and schools to increase t he talent pool and engage 

targeted populations. 

The Greater Philadelphia region is one of the densest manufacturing regions in the country. The 

regional tri-state market has over 14,000 manufacturing businesses and over 16,000 manufacturingrelated businesses within a 50 mile radius of Center City Phi ladelphia. Many of these manufact urers are 

DVIRC clients and finding the right talent has been their top concern for over the past 20 years. We've 

been tracking regional on-line job postings for manufacturing for over two years and there have been 
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over 2,500 openings every month; last month there were over 3,000 openings.' These openings 

represent positions in all parts of the company: production, management, finance and accounting, IT, 

sales, etc. And t hose 3,000+ openings are only for the five counties of Southeastern Pennsylvania! 

We also hear from our clients some of the challenges associated with recruiting and hiring. Too often 

we hear about appl icants failing drug tests, or companies testing dozens of applicants only to find a few 

with the 10'" grade reading and math levels they need to go through training and orientation. Too 

often, applicants that don't make the grade here and channeled to lower paying career paths instead of 

being offered remedial education that could get them up to speed fairly quickly. And with the 

emergence of new advanced technologies the bar for entry w ill only get higher. The importance of 

manufacturing to regional economies has been well documented and cannot be overstated. 

In its 2015 report The Skills Gap in Manufacturing, the Manufact uring Institute reports that "(e)very 

dollar spent in manufacturing adds $1.37 to t he U.S. economy, and every 100 jobs in a manufacturing 

facility creates an additional 250 jobs in other sectors."' 

In the same report, the authors note that: "Over the next decade nearly 3 X million manufacturing jobs 

likely need to be filled. The skills gap is expected to result in 2 million of those jobs going unfilled."3 

While there are outstanding programs being developed and offered through state and federal programs, 

resources, and agencies, I'm hard pressed to find a national strategy that deals with the multiple 

dimensions of the problem. Through the Department of Labor, the Workforce Investment Act has made 

some strides in creating training programs that are "employer-driven", and many Workforce Investment 

Boards are doing some innovative and effective things. Still, the education system in our region (which 

is substantial) always seems to be "catching up". 

According to the Employment and Training Administration, the President's FY 2018 budget request was 

submitted to Congress. ETA's request for FY 2018 totals $7.66 billion."4 The investment is still 

1 Data is from from The Conference Board Help Wonted OnLine•• data set, courtesy PA Department of Labor & 

Industry. 2 http://www.themanufacturinginstitute.org/Research/Skills-Gap-in-Manufacturing/Skills-Gap-inManufacturing.aspx 

3 Ibid 

4 The public workforce investment system is a network of federal, state, and local entities that support economic 

expansion and develop the talent of our nation's workforce. Businesses and job seekers primarily access services 

through nearly 3000 federally-funded One-Stop Career Centers. Required One-Stop partners include the Adult, 

Dislocated Worker, and Youth programs, Adult Education, and Post Secondary Vocational Training under the 

Workforce Investment Act of 1998, Wagner-Peyser-funded employment services, Unemployment Insurance, Trade 

Adjustment Assistance programs and benefits, and other employment and training programs such as the Senior 

Community Services Employment Program, Jobs for Veterans State Grant programs, the Indian and Native 

American Program, the National Farmworker Jobs Program, Community Services Block Grants, Employment and 

training activities by the Department of Housing and Urban Development, and Job Corps. Additional human 

2 
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substantial, though down about $2 billion over the past five years. Part of the challenge for local WIBs is 

that state and federal resources are typically tied to special populations, instead of being offered as 

block grants. 

A new repo~ from the Information Technology and Innovation Foundation suggests that it is time to 

revise workforce development and education policy. The author argues that new advanced 

technologies such as Artificial Intelligence, Robots, and Automation "will provide a tremendous boost 

to society and their development should not therefore be slowed down to protect a relatively sma II 

number of workers. Instead, much more should be done to help t hose people adapt." (Emphasis added) 

One key point Dr. Atkinson makes is that a "major risk to the global economy is not too much disruption, 

but too little. In other words, the risk is that productivity will grow too slowly. Therefore, it is critical 

that policies not hinder technology-led creative disruption." 

The report- How to Reform Worker-Training and Adjustment Policies for an Era of Technological 

Change- goes into depth on three principles for effectively managing this new transition: 

1. Embrace the next technological wave 

2. Support a full-employment economy 

3. Focus on helping dislocated workers make speedy and successful transitions 

The report offers insight into the implications of the disruptions that come with the 4"' Industrial 

Revolution. For the complete report, click here. 

Following below are a few "headwinds" and "tailwinds" that are blowing on the issue. 

HEADWINDS 

The headwinds are strong, including a 20+ year disinvestment in technical education. We've seen the 

erosion of Career and Technical Education (CTE), particularly manufacturing-related CTE programs, 

throughout our region. A recent (February 2018) report by Advance CTE, documents the decline of 

federal funding for the federal Perkins appropriation, which funds CTE nationwide: "Between 2004 and 

2017, Perkins funding declined by over $116 million dollars, the equivalent of 427 million inflationadjusted dollars."

6 

resources program partners include transportation, Temporary Assistance for Needy Families (TANF), and USDA 

Supplemental Nutrition Assistance Program (SNAP) Employment and Training Programs. 

https:ljwww.doleta.gov/budget/ 

' See http:ljwww2.itif.org/2018·innovation·employment·workforce· 

policies.odf? ga=2.83536534.1609185863.1519373644·2139559703.1519373644 

• https:ljcte.careertech.org/sites/default/files/Funding CTE American Imperative 2018.pdf 

3 
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While progres.s has been made, CTE still suffers from the stigma that it is "something less" than a 4-

year college degree. And while most 4-year college degrees are good, they have been over-valued at 

the expense of other alternatives, never mind the resulting student loan debt crisis ... perhaps a topic for 

another subcommittee. 

Much has been writt en about the misperception of manufacturing and manufacturing careers- the socalled image problem. The Manufacturing lnstitute/Deloitte 2017 Report' on the Public Perception of 

Manufacturing documents some of the progress that has been made over the past several years ... but 

the problem persists. Another useful report by the Institute, prepared in partnership with Skills USA and 

the St udent Research Foundation, is Attracting the Next Generat ion of Students- The Role of Career & 

Technical Education.

8 This is worth a close look since there's not much we can do about the generation 

we lost. 

One of the most recent headwinds is t he acceleration of new, advanced manufacturing technologies3D Printing, Robotics, Data Analytics, The Internet of Things, Advanced Materials, etc. These, and 

others, have creat ed challenges for bot h schools and employers, both of which are trying to fashion 

programs and approaches to articulating and developing the cross-functional skill sets required by 

industry to put these new technologies t o work. 

Program Sustainability. This has been and continues to be a challenge. Federal resources have 

contributed to building some successful manufact uring educat ion and training programs, and outreach 

and awareness dollars have been built into the budgets to recruit individuals into those programs. 

Often, however, after t he completion of a grant period (2-3 years in most cases) there are no residual 

dollars to continue the "hand-to-hand combat" recruiting required to continue to fill those classes. 

TAILWINDS 

luminaries. Stars such as Mike Rowe (numerous videos and articles) and John Ratzenberger (Made in 

America series for the Travel Channel) are having a positive effect on changing the image of 

manufacturing and manufacturing careers. More must be done. 

Apprenticeships. One federal bright spot is funding in the Department of Labor's Office of 

Apprenticeships: t he President's 2019 budget calls for $200 million for apprent iceships. Manufacturing 

will get its share but still, these take time to develop and put in place. And they're expensive and a 

challenge to install, especially for smaller firms. 

1 http://www.themanufacturinginstitute.org/Research/ Public·Perception··Of-Manufacturing/Public-Perception-ofManufacturing.aspx 

• http://www.themanufacturinginstitute.org/Research/Other-lnstituteReports/-/media/24EC017A43324F7696BF758A9A11686F.ashx 

4 
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Manufacturing Day. Nationally, Manufacturing Day is gaining more momentum every year since its 

inception in 2012. The number of Manufacturing Day events has grown 1000% since then. In 2016, 

Manufacturing Day affected 595,341 participants, including 267,607 st udents." 

"Manufacturing Day is an annual celebration of modern manufacturing during which manufacturers 

invite their communities - including students, educators, businesspeople, media, and politicians- to 

their facilities in a collective effort to educate visitors about manufact uring career opportunities and 

improve public perceptions of manufacturing." You can read about some of the success stories here. 

Manufacturing Summit. As part of our annual Summit we bring students from middle schools, high 

schools, and universities to see and hear from manufacturing leaders who speak on a variety of topics 

important to the manufacturing community. These "out of school" enrichment opportunities are few 

and far between but are extremely effective in broadening st udents' perspectives and their academic 

and career options. 

Dream it Do lt. In 2005, the Manufacturing Institute launched the "Dream It Do It" initiative to begin to 

change to perception of manufacturing. By 2015, the initiative reached some 426,000 students. 

What's So Cool About Manufacturing? In Pennsylvania, What's So Cool About Manufacturing is an 

annual video contest designed to excite students across Pennsylvania to explore cool manufacturing 

careers and produce profiles of companies. Each contest features an online vote for its Viewers Choice 

Award. Started in the Lehigh Valley, the contest has taken root in a dozen other regions in Pennsylvania 

involving hundreds of schools. The contest format also has been adopted inll additional states. 

Industry Partnerships. The Pennsylvania Department of Labor has been funding Industry Partnerships 

for about a decade. They bring toget her multiple employers, educators, economic development 

organizations, and workers or worker representatives when appropriate, in the same industry cluster to 

address common or overlapping human capital needs. While helping employers largely with incumbent 

worker training, many of these partnerships are now trying to influence the educational pipeline to 

create more human capital with the skills their companies need. In Southeastern Pennsylvania, the 

Philadelphia Workforce Investment Board (Philly Works) has been managing a successful Industry 

Partnership for nearly a decade, helping manufacturers with incumbent worker training and, recently, 

developing a "Manufacturing Boot Camp" to prepare people for entry level manufacturing posit ions. 

National Science Foundation Advanced Technological Education program. This is a strong program 

worthy of aggressive investment. "With an emphasis on two-year colleges, the Advanced Technological 

Education (ATE) program focuses on the education of technicians for t he high-technology fields that 

drive our nation's economy. The program involves partnerships between academic institutions and 

industry to promote improvement in the education of science and engineering technicians at the 

undergraduate and secondary school levels. The ATE program supports curriculum development; 

s 
55 

f 


33809A.024

r4mc 

2905 Southampton Road 

Philadelphia, PA 19154 

215.464.8550 

www .dvirc.org 

professional development of college faculty and secondary school teachers; career pathways; and other 

activities. The program invites research proposals that advance the knowledge base related to 

technician education. It is expected that projects be faculty driven and that courses and programs are 

credit bearing although materials developed may also be used for incumbent worker education." 

I would be glad to participate in a broader discussion about these issues and to contribute to a root 

cause analysis exercise that leads toward a strategic approach that gets individuals ready for these jobs 

and helps companies find the human capital they so desperately need. 

I hope these notes are useful and I thank you for this opportunity. 

6 
56 

Chairman SMITH. I now recognize Ms. Jenkins for the purpose 

of introducing her constituent from Kansas. 

Ms. JENKINS. Thank you, Mr. Chairman. 

It is my pleasure to introduce Justin Welner from Spirit 

AeroSystems based out of Wichita, Kansas. Spirit AeroSystems designs and builds aero structures for both commercial and defense 

customers and is the largest private employer in my home State of 

Kansas. 

Mr. Welner serves as Spirit’s Vice President for Human Resources and the Environmental Health and Safety Department. He 

has worked for his entire career in the aerospace industry, having 

previously worked for Bomabardier Learjet, where he served as Director of Human Resources in addition to holding numerous other 

leadership roles during his nearly 20 years with the company. 

Mr. Welner, thank you for being here today. We are looking forward to hearing your expertise in this subject area. Welcome. 

I yield back, Mr. Chairman. 

Chairman SMITH. Thank you, Ms. Jenkins. 

Dr. Davis for the introduction of your constituent. 

Mr. DAVIS. Thank you very much. And it is my pleasure to introduce Mr. Andrew Wells. 

Not only am I pleased to do so because of his expertise and 

knowledge, but he also grew up in the community where I live, 

which is on the west side of Chicago which is known as one of the 

most poverty-stricken areas in the country, an area where the riots 

occurred after the assassination of Dr. King and an area that has 

been called a microcosm of what is wrong with urban America, and 

that has been for many years. 

The Chicago Urban League has been around since the early 

1900s and then intimately engaged in program development that 

is designed to lift the country out of its position of need to a position of productivity. 

So, Mr. Wells, thank you so much for being here, and I am delighted that the Urban League is doing the work that you do. 

Chairman SMITH. Thank you. 

I would like to recognize Ms. Walorski for the purpose of introducing her constituent from Indiana. 

Ms. WALORSKI. Thank you, Mr. Chairman. I have the pleasure 

of introducing Peter Barrett. Peter is the Senior Vice President of 

Marketing and Corporate Development at Smoker Craft in New 

Paris, Indiana. 

Smoker Craft is a multigeneration, family-owned boat manufacturer located in my district. Peter has been with the company since 

1996 and is carrying on the family tradition as the fourth-generation owner/employee. 

I love visiting Peter at his company, Smoker Craft, and hearing 

from Peter and his employees, and I am delighted that he is with 

us today to share his insights on the jobs gap. 

Thank you, Mr. Chairman. 

Ms. WILHELM. Thank you. 

Chairman SMITH. And witnesses are reminded to limit their 

oral statements to 5 minutes. All of your written statements will 

be included in the record. 

57 

We will begin with Mr. Welner. You may begin when you are 

ready. 

STATEMENT OF JUSTIN WELNER, VICE PRESIDENT FOR 

HUMAN RESOURCES, SPIRIT AEROSYSTEMS 

Mr. WELNER. Chairman Smith, Ranking Member Davis, and 

Members of the Ways and Means Committee, thank you for allowing me to testify today about the workforce pipeline challenges facing our company along with other advanced manufacturing businesses across our country. 

Spirit AeroSystems designs and builds large, complex aerostructures for both commercial and defense customers. Our largest 

customers include Boeing and Airbus, and in 2016 we were named 

as one of seven suppliers on the B–21 Raider program for the Air 

Force. 

With headquarters in Wichita, Kansas, Spirit operates manufacturing sites in Oklahoma, North Carolina, Europe, and Asia. Our 

core products include fuselages, pylons, nacelles, and wing components. 

Spirit is the largest private-sector employer in the State of Kansas with more than 11,500 employees. Last December, our company 

announced we would be expanding our Wichita operations by adding 1,000 new jobs over 2 years and investing $1 billion over 5 

years in capital projects. This was driven by production rate increases on existing programs as well as new programs in the areas 

of defense and fabrication. 

Building a talented workforce from today’s labor pool is one of 

the largest challenges our company faces as we hire to keep up 

with natural attrition rates and seek to expand our base employment to meet production requirements of our customers. 

Before I explain our experience with workforce constraints, I 

want to provide additional context for what we are up against. 

At our Wichita site, we employ about 7,500 line-workers. These 

include sheet metal mechanics, assembly mechanics, CNC operators, and composite tech who fabricate, build, and assemble large 

metallic and composite aircraft structures. 

At our four U.S. sites, we have hired more than 4,000 front-line 

employees since 2015, about 1,000 of those in the last 3 months. 

But like many other advanced manufacturers, we are faced with 

an aging workforce. And what keeps me up at night is the fact that 

within 5 years, 40 percent of my entire workforce will be retirement-eligible. The enormity of this reality and the challenge it 

poses for us, along with thousands of other advanced manufacturers, cannot be overstated. Spirit has been hiring as quickly as possible to fill open positions, but we are struggling to find qualified 

workers with the skillsets needed in today’s aerospace manufacturing environment. 

Three years ago, it was customary for us to hire someone and put 

them through 2 to 3 weeks of training depending on the experience 

level of that new employee. Today, we have retooled and expanded 

our in-house training programs that now last up to 7 weeks, so 

when we recruit and hire somebody, it is 7 weeks before they hit 

the shop floor and actually produce any real work and it is several 

additional weeks before they become fully productive. 

58 

The challenge we are experiencing is not isolated to a State or 

regional problem. It is a national problem, and we are nearing the 

verge of what could become a watershed moment for our country 

as we determine what we want the future of manufacturing to look 

like in the United States. How we respond and our ability to 

proactively pursue collaborative solutions will define our success. 

While I’ve described some of our industry’s obstacles to filling 

open jobs, I want to pivot for a moment and share with you some 

of the solutions we have deployed to help to try to overcome those 

barriers. 

We are investing millions of dollars into an expanded in-house 

training program that includes growing our training department by 

30 people. Their focus is on improving the skillsets of the new hires 

and getting them better prepared to be successful on the shop floor. 

We have expanded our recruitment efforts to reach well beyond 

the State border and we are now offering very generous relocation 

packages for experienced hourly employees. While we have had 

some isolated examples of success with this, most hourly workers 

come from two-income families and are well-rooted in the communities in which they reside. 

In the last few months, we have launched a retiree and alumni 

program where former employees are now hired to come back to 

work as a workplace coach to mentor and guide less experienced 

mechanics as they begin to navigate the complexities of the manufacturing environment. 

For several years, Spirit has had an apprenticeship program with 

the International Brotherhood of Electrical Workers, and this year, 

we are launching several additional apprenticeship programs with 

the International Association of Machinists and Aerospace Workers. 

In addition, for many years, we have worked cooperatively with 

the technical colleges located near our manufacturing facilities to 

guide and shape curriculum programs that meet the needs of our 

industry. We have intensified that engagement based on the tightening of the labor market. 

Last year for the first time, we started a high school intern program to bring high school students into the factory and introduce 

them to careers in manufacturing. Based on the success of that 

program, we will be doubling the size of that program this year. 

One other strategy that was targeted toward high school students that has helped is the Excel in Career Technical Education 

initiative, which is more commonly referred to as Kansas Senate 

Bill 155. That law took effect in 2012 and pays for students to obtain technical certifications and credentials before they graduate 

high school. We have hired many students through this program. 

But while all of these initiatives are helping address the challenge faced by our industry, unfortunately they are not yielding 

nearly enough potential workers. So, I would like to conclude by 

highlighting a few additional opportunities that this Committee 

and Congress could consider to further assist aerospace and advanced manufacturing. 

The first thing is for leaders to understand that if our country 

cannot solve the workforce problem and talent pipeline issues, our 

U.S. industrial base will erode because businesses will be forced to 

59 

move work to countries that can satisfy production demand. This 

is not a threat targeted at our elected leaders. It is a threat we all 

face together, given the realities of operating in a global economy. 

A second thing for us all to address is the need to better promote 

the dignity of career paths in technical fields such as advanced 

manufacturing. All too often, parents and our education system encourage students to seek post-secondary education through a 4-year 

degree, and we ignore career paths that require vocational training. 

And finally, I would encourage this Committee and Congress to 

consider options that allow Pell Grants to be used for students 

seeking certifications and credentials in technical programs that 

are less than 16 weeks long. By limiting qualifying students from 

receiving Pell Grants for credentialed technical training programs 

that are under 16 weeks, we create an unnecessary barrier for 

lower-income students to achieve success through a career in manufacturing. 

I appreciate being invited to testify on behalf of Spirit 

AeroSystems. This Committee is faced with many challenges of national significance. We are grateful for the work you did on tax reform and we are grateful you are spending time to further explore 

ways to help the private sector address these workforce challenges. 

Thank you for your leadership on these matters. I look forward 

to answering your questions. 

[The prepared statement of Mr. Welner follows:] 

60 


33809A.025

ON: 

TO: 

FROM: 

DATE: 

Testimony of Spil'it Ae1·oSystems 

Jobs and Opportunities: Aerospace Manufacturing Perspective on the Jobs Gap 

House Ways and Means Committee 

Justin Weiner, Vice President, Human Resources, Spirit AeroSystems 

April 12, 2018 

Testimony on 

.Jobs and Opportunities: Aerospace Manufactul'ing Perspective on the .Jobs Gap 

THE HOUSE WAYS AlW MEANS COMMITTEE 

by 

.Justin Weiner 

Vice President for Human Resources 

Spirit Ae1·oSystems 

Chairman Smith, Ranking Member Davis, members of the Ways and Means Committee, thank 

you for allowing me to testify today about workforce pipeline challenges facing our company 

along with other advanced manufacturing businesses across our com1try. I am Justin Weiner, 

Vice President for Human Resources at Spirit AeroSystems, and I have responsibility for 

managing our global workforce and talent acquisition programs. 

Spirit AeroSystems designs and builds large, complex aerostructures for both commercial and 

defense customers. Our largest customers include Boeing and Airbus, and in 2016 we were 

named as one of seven suppliers on the B-21 Raider program for the Air Force. With 

headquarters in Wichita, Kansas, Spirit operates manufacturing sites in Oklahoma, North 

Carolina, Europe, and Asia. Our core products include fuselages, pylons, nacelles, and wing 

components. Spirit's - 16,000 employees focus on affordable, innovative composite and 

aluminum manufacturing solutions to support customers around the globe. 

Spirit is the largest private-sector employer in the state of Kansas with more than I I ,500 

employees. Last December, our company announced we would be expanding our Wichita 

operations by adding I ,000 new jobs over two years and investing S I billion over five years in 

capital projects. This was driven by production rate increases on existing programs as well as 

new programs in the areas of defense and fabrication. 

Building a talented workforce from today's labor pool is one the largest challenges our C·Ompany 

faces as we hire to keep up with natural attrition rates and seek to expand our base employment 

Page l of4 
61 


33809A.026

to meet production requirements of our customers. Before I explain our experience with 

workforce constraints, I will provide additional c.ontext for what we are up against. 

At our Wichita site, we employ about 8,000 front-liue workers. These include sheet metal 

mechanics, assembly mechanics, CNC operators, and composite technicians who fabricate, 

build, and assemble large metallic and composite aircraft structures. 

At our four U.S. sites, we have hired more than 4,000 front-line employees since 2015. About 

I ,000 of those front-line employees have been hired in the past three months. These hiring rates 

have been driven by our need to backfLU positions from nonnal attrition, including reti.rements, 

as well our need to expand our production output to meet expanding customer programs. 

As of the begirming of April, we had about 350 hourly openings at our Wichita site. 

And like many other advanced manufacturers, Spirit is faced with an aging workforce. What 

keeps me up at night is that within the next five years, nearly 40 percent of our workforce will be 

retirement eligible. The enonnity of this reality and the challenge it poses for us - along with 

thousands of other advanced manufacturers- cannot be overstated. 

Spirit has beeu hiring as quickly as possible to fill open positions, but we are increasingly 

struggling to find qualified workers with the skillsets needed in today's aerospace manufacturing 

environment. A few years ago our industry found it difficult to find skilled labor, but it was a 

manageable challenge with a higher unemployment rate, which made it easier to fmd and attract 

higher-skilled talent. Today, our industry is struggling to find enough qualified workers for the 

open positions on our production lines. The jobs are available. The production programs are 

expanding. The work is rewarding. But the workforce pipeline has not kept pace with demand. 

Three years ago it was customary for us to bring new hires into our training programs that lasted 

two to three weeks, depending on the experience level of new employees. Today, we have retooled and expanded our in-house training programs that now last up to seven weeks. That means 

when we recruit and hire new employees today, depending on their skill level, it may be seven 

weeks after their start date before they ever begin to do real work on the shop floor. And it takes 

several weeks beyond that before they are fully productive. 

The challenge we are experiencing is not an isolated state or regional problem, it is a national 

problem. And we are nearing the verge of what could become a watershed moment for our 

country as we detennine what we want the future of manufacturing to look like in the United 

States. How we respond and our ability to proactively pursue collaborative solutions will define 

our success. 

While I've described some of our industry's obstacles to filling open jobs, I want to pivot for a 

moment and share with you some of the solutions we have deployed to help overcome those 

barriers. 

We are investing millions of dollars into an expanded in-house training program that includes 

growing our training department by 30 employees whose focus is on improving the sk:illsets of 

Page 2 of 4 
62 


33809A.027

new hires and getting them better prepared to be successful on the shop tloor. Spirit has 

expanded its recruitment efforts to reach well beyond the state borders where we operate, and in 

some situations, we are offering relocation packages for hourly employees. While this is much 

more common for salaried positions, it is very unusual for such packages to be ofl'ered for frontline employees because the labor pools have traditionally provided enough talent within a region. 

In the last few months we launched a retiree and alumni program where former employees are 

now hired as workplace coaches to mentor and guide Jess experienced mechanics as they 

navigate the complexities of the manufacturing environment. We have hired about 40 former 

employees where many of them are focused on helping coach, mentor, and train front-line 

employees. We are already seeing positive results using this approach, and it has helped Jess 

experienced mechanics learn processes and build confidence necessary for long-term success. 

For several years, Spirit has had an apprenticeship program with the International Brotherhood of 

Electrical Workers, and we are in the process of launching an apprenticeship program with the 

International Association of Machinists this year. 

Spirit bas a long history of working cooperatively with the technical colleges located near our 

manufacturing facilities to guide and shape curriculums to best meet the needs of our industry, 

and we have intensified our engagement with these schools in recent months as the job markets 

have tightened. A week ago today, we announced a collaboration agreement with Wichita State 

University (WSU) that expands their applied learning program for students to engage with Spirit 

on active design and production programs. The collaboration agreement includes a plan for the 

WSU Campus of Applied Sciences and Technology (WSU Tech) to replicate a shop floor 

environment that more accurately mimics a rea l production line. This new model will simulate 

an educational environment where training is Jess about textbooks and classroom instruction and 

more about advancing the instruction model to better equip students with skillsets and technical 

certifications tailored for aerospace and advanced manufacturing. 

As of last year, Spirit is a participating member of the Kansas Advanced Manufacturing Program 

(KAMP) grant, which is a partnership between the Workforce Alliance Center, WSU Tech, and 

Spirit. This state program is funded through the U.S. Department of Labor. Spirit's participation 

in the KAMP grant focuses on three areas for front-line employees: employee onboarding 

training that allows lower-skilled recruits to earn a wage while they are trained at Spirit; on-thejob-training for our defense program employees; and upskilling training for some of our existing 

employees. Through this grant, for example, assembly mechanics hired by Spirit who meet the 

eligibility requirements can earn e ight hours of college credit and a Structural Assembly 

certificate upon completion. 

In addition to Spirit's college intern programs, last year we offered a high-school summer 

internship program. Based on the interest in the program and its success, we are doubling the 

number of high-school interns this summer as one more way to engage prospective students and 

demonstrate career opportunities in manufacturing. 

Another strategy targeted toward high school students that has helped address the talent pipeline 

shortage is through the Excel in Career Technical Education initiative, commonly referred to as 

Page 3 of4 
63 

f 


33809A.028

Kansas SB155. This Kansas law took effect in 2012 and pays for students to obtain technical 

certifications and credentials before they graduate high school. By covering the cost of tuition at 

a technical college and creating a financial incentive for high schools to encourage their students 

to enroll, more than 7,000 credentials have been eamed by high school students since the 

program began. While these certifications span numerous other industries outside aerospace, 

there have been a significant number of certifications obtained by high school students targeted 

for aircraft manufacturing. 

Spirit bas hired many of these SB155 students who have successfully completed their 

certification programs, and because of this program's success, the Kansas state legislature is 

currently considering additional funding to expand and fully fund the program. 

Wl1ile all these initiatives are helping address the challenge faced by our industry on a local 

level, I will conclude by highlighting three additional opportunities this Committee and Congress 

could consider to further assist aerospace and advanced manufacturers nationally. 

The first thing is for more leaders to understand that if our country cannot solve the workforce 

problem and talent pipeline issues, our U.S. industrial base will erode because businesses will be 

forced to shift work to countries that can satisfy production demand. Without qualified workers 

to perform the required statements of work, businesses callllot continue placing production where 

there is a labor shortage. This is not a threat targeted at our elected leaders - it is a threat we all 

face together given the realities of operating in a global economy. 

A second thing for all of us to address is the need to better promote the dignity of career paths in 

technical fields such as advanced manufacturing. All too often parents and our education system 

encourage students to seek post-secondary education through a four-year degree, and we ignore 

career paths that require a technical degree or certification. As we encourage high school 

students to pursue careers in technical fields, I think we will begin to see the talent pipeline 

expand for manufacturing and te·chnical positions. 

Finally, I would encourage this Committee and Congress to consider legislative options that 

allow Pel! Grants to be used for students seeking certitications and credentials i11 technical 

programs that are less than 16 weeks long. By limiting qualifying students from receiving Pell 

Grants for credentialed technical trai11ing programs that are under 16 weeks, we create an 

UJlllecessary barrier for lower-income students to achieve success through a career in 

manufacturing. I believe there is an under-tapped labor market across the country who could find 

success earning higher wages in fields such as advanced manufacturing, and I hope we can 

continue finding ways to encourage upward mobility for those who are eager for the opportunity. 

I appreciate being invited to testify on behalf of Spirit AeroSystems. This Committee is faced 

with many challenges of national significance, and we are grateful you are spending t1me further 

exploring ways to help the private sector address these workforce challenges. 

Thank you for your leadership on these matters. I look forward to answering your questions, 

Page4 of4 
64 

Chairman SMITH. Thank you, Mr. Welner. 

Mr. Wells, you are recognized. 

STATEMENT OF ANDREW WELLS, DIRECTOR, WORKFORCE 

DEVELOPMENT CENTER, CHICAGO URBAN LEAGUE 

Mr. WELLS. Thank you, Chairman Smith, Ranking Member 

Davis, and Members of the Subcommittee for the opportunity to 

offer testimony here today. My name is Andrew Wells and I am the 

Director of Workforce Development at the Chicago Urban League. 

In my role at the Chicago Urban League, I am tasked with the 

very important job of connecting people to employment opportunities, training, and career pathways to high-growth sectors. In the 

100 years our organization has been in service to the African American community, this has been a staple of our work. 

Employment is the most essential building block in individual 

and community economic growth. A good job helps to alleviate 

household poverty and a strong job market gets more people in a 

community working and more dollars circulating locally and nationally. 

The Chicago Urban League focuses specifically on assisting individuals in the highest areas of need, in racially concentrated areas 

of poverty, the areas that have the highest unemployment rates in 

the city, located primarily on the South and West sides of Chicago. 

Youth and adults living in racially concentrated areas of poverty, 

however, have a significant number of barriers to accessing jobs. 

One, there is a significant employment spatial mismatch. Strong 

central business districts and suburban employment cores house 

many of the best opportunities for workers. In places like Chicago, 

where jobs are located are not where African Americans most in 

need of jobs live. 

Someone who doesn’t live near transportation or who lacks a car 

might have a very difficult time getting to work. The distance 

might be too considerable to manage working, child, and household 

obligations. 

The pay may not be adequate to overcome increased costs related 

to commute and child care. All of these barriers conspire to reduce 

a person’s ability to both find and keep a good job. 

The collateral consequences of criminal records significantly impede employment opportunities. We know that employment is a 

critical part of the re-entry process, and yet there are barriers at 

all levels of hiring and promotion throughout all industries and sectors. 

Skills, job readiness and training programs need to be more 

abundant. These skills need to be targeted in areas of growth, like 

green and emerging industries. 

The Chicago Urban League strongly encourages more training 

opportunities for youth and adults from the most disadvantaged 

neighborhoods to build on their employability skills. But that is not 

the only answer. We also need to do the following. 

Enact an employment subsidies program that would place unemployed individuals in the private sectors, private and public sectors, 

including those with criminal records. 

Expand apprenticeships, summer and employment opportunity 

programs for youth. 

65 

Increase workforce training opportunities for African American 

adults and match them with employment through public and private partnerships. 

Reduce the collateral consequences of a criminal record and barriers to employment through sound criminal justice reforms. 

Create or expand transportation subsidies to ensure that workers 

can get to their places of employment. 

Create small business incubators in racially concentrated areas 

of poverty to bring local, accessible jobs to these disinvested communities. 

Last, but not least, ensure equity in public education. Illinois has 

the worst disparities for funding in the Nation when it comes to equity for low-income minority students. Providing youth with good 

quality education will go a long way toward improving access to 

jobs, to quality jobs by preparing youth to get jobs. 

I know that this will not be easy. I know this takes political and 

community will to accomplish. But we all know how critical increasing employment opportunities are to our neighborhoods and to 

cities across the country. 

Expanding these opportunities will not only increase employment 

in our most under-resourced communities, but also reduce crime, 

decrease household poverty, increase home ownership, and build 

community wealth. 

We cannot continue to accept that, in great cities like Chicago, 

the highest unemployment rate for people of color in the Nation is 

the norm. We must do what is right to ensure equal access to opportunity for all American citizens. Thank you. 

I would like to just share this one thing. We operated a transportation construction apprenticeship highway program for about 3 

years. We trained 598 individuals in this, in this program, most of 

whom were ex-offenders or came from disadvantaged neighborhoods. I want to share this one success story because this is why 

I keep doing the work that I do. 

There was a young lady, and I will call her Ms. Dewberry, who 

was a single mother with three children. Literally, she was making 

decisions at the gas pump on whether to put gas in her car or to 

put food on the table. At the time that she applied to the Chicago 

Urban League, she worked at Monterrey Security making $11.54 

an hour. Now, mind you, she has three kids. 

So, I did her interview when she enrolled in the program and I 

asked her, I said, ‘‘Well, you already have a job.’’ I said, ‘‘Why are 

you enrolling in a program?’’ She said, ‘‘Well, Mr. Wells,’’ she said, 

‘‘I can’t continue.’’ She said, ‘‘I don’t know what to do.’’ She said, 

‘‘Every night, I am crying. I can’t take care of my kids off of $11.54 

an hour.’’ 

Well, I enrolled her in the program and she ended up becoming 

the best laborer, the best apprentice at the Chicago Urban League. 

And right now, this young lady is making $37.50 an hour and it 

changed her life. 

Not only did it change her life, but it changed the lives of so 

many other people who came through our doors. If you have quality 

training programs that can provide real skills that employers can 

use, it works. So, I just want to leave you with that. 

[The prepared statement of Mr. Wells follows:] 

66 


33809A.029

Andrew Wells - Chicago Urban League Director of Workforce Development 

Testimony of Andrew Wells 

Congress of the United States I U.S. House of Representatives 

Committee on Ways and Means Subcommittee on Human Resources 

Jobs and Opportunities: Local Perspectives on Jobs Gap 

Apri112, 2018 

To the Committee on Ways and Means Subcommittee on Human Resources· my name is Andrew Wells, 

and I am the Director of the Workforce Development Center at the Chicago Urban League. Thank you for 

the opportunity to offer testimony here today. 

In my role at t he Chicago Urban League, I am tasked with the very important job of connecting people to 

employment opportunities. In the 100 years our organization has been in service to the African 

American community, t his has been a staple of our work. 

Employment is the most essential building block in individual and community economic growth. A good 

job helps to alleviate household poverty, and a strong job market gets more people in a community 

working and more dollars circulat ing locally and nationally. The Chicago Urban League focuses 

specifically on assisting individuals in the highest areas of need, in racially concentrated areas of poverty, 

the areas that have t he highest unemployment rates in the city -located primarily on the Sout h and 

West sides of Chicago. 

Yout h and adults living in racially concentrated areas of poverty, however, have a significant number of 

barriers to accessing jobs. 

1. There is a significant employment spatial mismatch - Strong central business districts and 

suburban employment cores house many of the best opportunities for workers. In places like 

Chicago, where jobs are located are not where African Americans most in need of jobs live. 

Someone who doesn't live near transportation- or who lacks a car- might have a very difficult 

time getting to work. The distance might be too considerable to manage working, child and 

household obl igations. The pay may not be adequate to overcome increased costs related to 

commute and child care. All of these barriers conspire to reduce a person's ability to both find a 

keep a good job. 

2. The collateral consequences of criminal records significantly impede employment opportunities. 

We know that employment is a critical part of the re-entry process, and yet there are barriers at 

all levels of hiring and promotion, throughout all industries and sectors. 

3. Skills, job readiness and training programs need to be more obundont. These skills need to be 

targeted in areas of growth, like green and emerging industries. 

The Chicago Urban League strongly encourages more training opport unities for men and womenfor youth and adults- from the most disadvantaged neighborhoods to build on their employability 

skills. But that is not the only answer; we also need to do the following: 
67 

f 


33809A.030

Andrew Wells- Chicago Urban League Director of Workforce Development 

1. Enact an employment subsidy program which would place unemployed individuals in the private 

and public sectors, including those with criminal records. 

2. Expand apprenticeship, summer and other employment opportunity programs for youth. 

3. Increase workforce training opportunities for African American adults and match t hem with 

employment (through public private partnerships). 

4. Reduce the collateral consequences of a criminal record and barriers to employment through 

sound criminal justice reforms. Create or expand transportation subsidies to ensure that 

workers can get to their places of employment 

5. Create small business incubators in racially concentrated areas of poverty to bring local, 

accessible jobs to these disinvested communities. 

6. Ensure equity in public education. Illinois has the worst disparities for funding in that nation 

when it comes to equity for low-income minority students. Providing youth with good quality 

education will go a long way towards improving access to quality jobs by preparing youth to get 

jobs. 

I know that this will not be easy. I know this takes political and community will to accomplish. But we all 

know how crucial increasing employment opportunities are to our neighborhoods and to cities across 

the country. Expanding these opportunities will not only increase employment in our most underresourced communities, but will also reduce crime, decrease household poverty, increase home 

ownership and build community wealth. We cannot continue to accept that in great cities like Chicago, 

the highest unemployment rate for people of color in the nation is the norm! We must do what's right 

to ensure equal access to opportunity for all American citizens. 

Thank you. 
68 

Chairman SMITH. Thank you. Thank you, Mr. Wells. 

Mr. Barrett. 

STATEMENT OF PETER BARRETT, SENIOR VICE PRESIDENT, 

MARKETING AND CORPORATE DEVELOPMENT, SMOKER 

CRAFT, INCORPORATED 

Mr. BARRETT. Good afternoon. Thank you, Chairman Smith, 

Ranking Member Davis, and Members of the Subcommittee, for the 

opportunity to appear before you today to discuss an issue important to my business and the recreational boating industry, workforce development. My name is Peter Barrett. I am proud to represent Smoker Craft, Incorporated, a boat manufacturer located in 

New Paris, Indiana. 

Founded in 1903, we are a fourth-generation family-owned and 

operated business that builds pontoon boats, fiberglass boats, aluminum fishing boats under the brand names Smoker Craft, 

Starcraft, Sunchaser, and Sylvan. Last year, Smoker Craft built 

and distributed over 11,000 boats to our worldwide dealer network. 

Our company employs over 690 people at our two manufacturing 

and transportation locations. 

The recreational boating industry is an important driver of the 

U.S. economy, with an annual economic impact of more than 

$121.5 billion. Our industry is uniquely American. Our industry is 

a uniquely American-made product. Ninety-five percent of boats 

sold in the United States are made in the United States. Behind 

a fun day on the water with family and friends are American businesses and manufacturing jobs. 

Our manufacturing is unique to the boat business and employees 

must have a broad range of skills. Our highly-skilled employees 

must weld, rivet, and fiberglass laminate. Less-skilled workers 

need the skills to read a tape measure, utilize simple power tools, 

and follow basic instructions. Our jobs do not require a 4-year degree. They pay well and have great benefits. A solid employee can 

quickly move up and establish a career in our organization. 

The boating industry is strong and many of our 300-plus dealers 

report that 2017 was their best year ever. Many dealers have indicated that they could sell more product if we could meet the demand. We have plenty of work. Today, our backlog is 20 percent 

larger than last year. Unfortunately, we will be challenged to meet 

this demand and will struggle to continue to grow if we cannot find 

skilled employees. 

Our current employment situation is troubling, and the future 

looks even worse. We are located in a region with lower unemployment and higher job opening rates than the rest of the country. 

With an aging workforce and a small pool of qualified workers to 

recruit from, we are concerned with the future prospect of finding 

skilled workers, a critical component for our growth as a business. 

Last month, we thanked an employee named Frank Perales for 

50 years of service on our aluminum riveted line. Frank is dedicated to our company and an excellent boat builder. His ability to 

quickly solve problems, coupled with a strong work ethic, have 

made him a model employee. As we presented his gift, he said he 

would like to retire in a year or two. 

69 

Unfortunately, replacing someone like Frank might require two 

people to achieve the same level of production. If we could find the 

right person, Frank should be mentoring his replacement right 

now. 

Beyond the production line, a similar issue impacts our transportation division. Our drivers haul boats around the country and into 

Canada. The long days and nights on the road coupled with unloading boats upon arrival is exhausting for our older drivers. 

Many of our senior drivers face further challenges in adapting to 

the use of electronic log books and have changed jobs or retired 

simply to avoid learning new technical skills. Replacing these drivers is difficult as younger people show little interest in this career 

path and we need our boats delivered. 

The future challenge we see is attracting and training the younger employee for our workplace. Our area, once known for its strong 

family farm work ethic, is struggling to find young people with the 

grit and desire to participate in American manufacturing. 

Very well-designed skills training programs have been tried 

through our local community college but have failed as employers 

can’t wait for live bodies, trained or untrained. As participation in 

these programs dwindled, funding was frozen. 

The concept of workforce training programs is vital to bridging 

the jobs gap we are facing today and in the future. Simply put, we 

need skilled workers. Our industry needs welders, riveters, assembly people, and truck drivers. Shop classes need to return, and exposure to careers in manufacturing through internships and apprenticeships should be encouraged. Careers in the trades need to 

be recognized and glorified. Our workforce is the backbone of this 

country. We need to support the expansion of career and technical 

education or CTE, just as we support 4-year and graduate education. 

I am pleased to see Congress taking steps in the recently passed 

Appropriations legislation to support the Department of Labor and 

Department of Education programs that promote access, completion, and affordability of workforce training efforts. The funding 

and support is crucial to States and localities trying to meet the 

needs of employers such as Smoker Craft, Incorporated. 

Thank you again for the opportunity to appear before you today. 

I look forward to answering your questions. 

[The prepared statement of Mr. Barrett follows:] 

70 


33809A.031

United States House of Representatives 

Committee on Ways and Means 

Human Resources Subcommittee 

"Jobs and Opportunity: Local Perspectives on the Jobs Gap" 

Thursday, Aprill2, 2018 at 2:00PM 

II 00 Longworth House Office Building 

Written Testimony for Mr. Peter Barrett, Smoker Craft, Inc. 

Good Afternoon. 

Thank you Chairman Smith, Ranking Member Davis, and members of the 

subcommittee for the opportunity to appear before you today to discuss an issue 

important to my business and the recreational boating industry: workforce 

development. 

My name is Peter Ban·ett, and I am proud to represent Smoker Craft, Inc., a boat 

manufacture located in New Paris, Indiana. Founded in 1903, we are a 41

h 

generation family owned and operated business that builds pontoon boats, 

fiberglass boats and aluminum fishing boats under the brand names Smoker Craft, 

Starcraft, Sunchaser and Sylvan. 

Last year Smoker Craft built and distributed over 11,000 boats to our worldwide 

dealer network. Our company employs over 690 people at our two manufacturing 

facilities and our 25 truck transportation division. 

The recreational boating industry is an important driver of the US economy, with 

an annual economic impact of more than $121.5 billion supporting 650,000 jobs at 

nearly 35,000 businesses. Our indusuy is a uniquely American made product: 95% 

of boats sold in the US, made in the US. According to the Bureau of Economic 
71 


33809A.032

Analysis, the outdoor recreation economy accounted for 2 percent of GDP, with 

boating and fishing growing at a faster rate than the overall economy. Boating 

means business, and behind a fun day on the water with family and friends, are 

American businesses and manufacturing jobs. 

Manufact11ring is unique to the boat business. Due to the wide range of our 

products, we require several different sk:illsets to produce all our boats. Our 

fiberglass boats require lamination experts who can properly work with resins and 

woven fibers. Our pontoon boats depend upon skilled craftsman for intense 

welding done with careful precision that does not bum through the delicate 

aluminum. Furthermore, our aluminum fishing boats are both welded and riveted, 

another very labor-intensive skilL 

Across the product lines of Smoker Craft, Inc., we need assembly workers to use a 

tape measure and work a screw gun, while reading and following basic instructions 

to ensure high quality products for our customers. After final assembly, we rely on 

our transportation division and truck drivers to deliver 15 loads a day to effectively 

manage our inventory. Our jobs do not require a 4-year degree, they pay well, and 

have great benefits. A solid employee can quickly move up and establish a career 

in our organization. 

The boating industry is strong and many of our 300-plus dealers report that 2017 

was their best year ever. Many dealers have indicated that they can sell more 

product if we can meet demand. Today, our backlog is 20% larger than last year. 

Unfortunately, we will be challenged to meet this demand and will struggle to 

continue to grow if we cannot find skilled employees. 

Our current employment sit11ation is very troubling, and the fut11re looks even 

worse. We are located in a region with lower unemployment and higher jobopening rates than the rest of the country. With an aging workforce, and small 

pool of qualified workers for area businesses to recruit from, we are concerned 

with the fut11re prospect of finding skilled workers - a critical component for our 

growth as a business. 

Currently, our older employees tend to be our craftsmen. They enjoy working with 

their hands, thinking through problems, and are passionate about their jobs. Many 
72 


33809A.033

have navigated their way through our organization, starting at an entry level 

assembly job and working their way into a manufacturing leadership role. 

Several of our employees have been with us for over 40 years. Just last month we 

thanked an employee named Frank Perales for 50 years of service on our 

aluminum riveted line. Frank is dedicated to our company and an excellent boat 

builder. His ability to quickly solve problems, coupled with a strong work ethic, 

have made him a model employee. As we presented his gift, he said he would like 

to retire in a year or two. Unfortunately, replacing someone like Frank might 

require two people to achieve the same level of production. His replacement would 

need training in riveting, basic assembly, tool usage and assembly line 

management skills. We hope to find an apprentice soon to help fill this hole when 

Frank decides to leave us. 

It has been and will be extremely difficult to replace these employees. As we seek 

to fill the positions of our out-going employees and fill positions to keep up with 

growing customer demand, we are experiencing tremendous difficulty in hiring 

employees with the skills necessary to join our workforce. There is a void in not 

just basic and advanced manufacturing skills, but also a lack of leadership 

characteristics as well. 

Beyond the production line, a similar issue impacts our transportation division. Our 

drivers haul boats around the country, enduring long days and nights on the road. 

Once the driver atTives at the dealership, the boats are unloaded which can be vety 

physically demanding. This work is exhausting for our older drivers. Many of our 

senior drivers face fi.trther challenges in adapting to the use of electronic log books 

and other processes requiring computer skills, several have quit simply to avoid 

these new skills required. 

The future chaUenge we see is attracting and training the younger employee for our 

workplace. Our area, once known for its strong family farm work ethic, is 

struggling to find young people with the grit and desire to participate in American 

manufacturing in spite of offering an attractive compensation package and a 

secure, stable work environment. New hires today do not join our company with 

basic skills that an employee had several years ago. Many new hires struggle to 

meet the basic skill requirements for our positions, and some seem unable to work 
73 

f 


33809A.034

an alann clock. Perhaps, they do not find manufacturing exciting, or fully 

comprehend the benefits of a career with our industry. 

Despite the hardships and obstacles of finding qualified employees, our company 

and d1e marine industry, have sta1ted to look for ways to equip potential employees 

with the necessary skills and discipline to enter our workforce. 

Smoker Craft has explored opportunities to partner with a local community college 

and other manufacturers in Elkhart County on a skills training facility. With a rich 

history of manufacturing and a robust industrial presence in the county, marine and 

RV manufacturers have an interest in educating workers on the necessa1y skillsets 

to enter the local workforce. Demand for qualified workers from the program was 

so high that many participants were "picked off' or left programs prior to 

completion simply because employers could not wait for a live body. 

The concept of workforce training programs is vital to bridging the "Jobs Gap" we 

are facing today and in the future. 

Simply put, we need skilled workers. 

Shop classes need to return, and exposure to a career in manufacturing through 

internships and apprenticeships should be encouraged. We need to support the 

expansion of Career and Technical Education, or CTE, just as we support four-year 

and graduate education. 

I am pleased to see Congress taking steps in the recently passed Appropriations 

legislation to support the Department of Labor and Department of Education 

programs that promote access, completion, and aftordability of workforce tTaining 

efforts. This funding and support is crucial to states and localities trying to meet 

the needs of employers such as Smoker Craft, Inc. 

Thank you again for the oppornmity to appear before you today, I look forward to 

answering your questions. 
74 

Chairman SMITH. Thank you, Mr. Barrett, and thank you to our 

entire panel. It is, again, great to hear your perspective, your expertise as well. 

We know that there is oftentimes the challenge of, you know, we 

know that folks need a job and want to work, there are openings 

out there, and bringing everyone together is oftentimes more difficult than one would think. 

America is a big country, too. And geographically, there can be 

some distances that are problematic or a challenge, even in the 

city. And transportation can be a challenge with a worker getting 

to a job site. 

I am proud to say Nebraska, I think, has done fairly well in 

terms of advancing these causes. I am glad that Forbes recently 

has ranked Nebraska the fourth best place to do business, but I 

know that I still hear from many employers who face the challenge 

of job openings that remain unfilled. 

And so, we know, as Mr. Wells already indicated, that some community partnerships can really deliver positive results, positive 

outcomes, increasing wages. I mean, not only getting someone perhaps into a job, and you know, that might just be checking a box, 

but when you really look at raising oneself up out of poverty, it 

means increasing wages and that drive to see higher wages with 

time, with time and effort. 

So, I was wondering if others on the panel, and certainly, Mr. 

Wells, if you want to add emphasis as well to the community partnerships that have been formed that bring folks in need, whether 

it is the job opening, whether it is the unemployed individual, or 

the underemployed individual as was mentioned before, can you 

point to some specific community partnerships that have been particularly successful? 

Mr. WELLS. Sure. So right now, at the Chicago Urban League, 

we have two projects running with ComEd. ComEd is one of the 

largest electric suppliers in the Midwest, specifically in Illinois. 

And one of the projects is called Construct. It is an 11-week 

training program to equip individuals with the skills to go into the 

electrical construction industry. So, we partner with about seven 

other agencies and 47 companies are a part of this project. 

The 47 companies pay into the program to create that pipeline 

of individuals. The 47 companies are subcontractors with ComEd, 

so we are essentially building that pipeline for those companies 

who claim that, hey, we don’t have talented workers, we need 

skilled workers, so we are creating it for them. 

Another project that I am running with ComEd is the solar PV 

installation jobs training program. We currently have a cohort of 

15. It just started April 6th and this is a project that we received 

$1 million for to train one hundred people over the course of 4 

years. 

We have other partnerships with corporations such as AT&T, in 

which we do digital literacy training to eliminate the digital divide 

and then to also provide individuals to their call center jobs and 

other technical jobs. 

We work with Comcast. We have a relationship with them. We 

train people for jobs at Comcast. We just renewed our contract with 

them. 

75 

And I recently received a contract with the Chicago Transit Authority, in which we are training individuals similar to a project 

that we are running with Construct where it is, this one is 8 weeks 

and it is training people to become bus operators and also call center representatives. 

Chairman SMITH. Very good. 

Mr. Welner. 

Mr. WELNER. Yes. So, we work with the Kansas Workforce Alliance to bring in the underemployed and put them through a training program. In fact, we have a Camp Grant to help do that. 

We have been fairly successful with it. The challenge that we 

face is that the manufacturing environment isn’t necessarily appealing to some people. It is a 5-day, sometimes 6-days a week job. 

We are a heavily-unionized company, so you start on second shift 

based on seniority and that brings some challenges with it as well. 

But, nonetheless, we are absolutely exploring every avenue we 

can to find workers including looking for community partnerships 

to get to everybody we possibly can. 

Chairman SMITH. Very good. 

Mr. Barrett. 

Mr. BARRETT. We have explored several different avenues over 

the years. But, unfortunately, we have found that being where we 

are in the pecking order in Elkhart County makes it more difficult 

in our line of work. As you may have seen in the Wall Street Journal article, the focal hub of manufacturing is the RV industry in 

Elkhart County. And the boat business, we are a little bit different. 

We are classified with RV, but we are a different animal. We tend 

to work at a slower pace. Our boats tend to be a little bit more customized than an RV. Our pace attracts entry level employees that 

can work a little bit slower, but at the same time, we tend to pay 

a little bit less. 

So being in that place in the employment pecking order, the 

more valuable or the more skilled employees tend to go to RV first 

and then they filter down to us. So, what happens is typically the 

vocational schools will feed RV before us. We have tried several 

programs to capitalize on job placement, but we just have not had 

much luck. 

Chairman SMITH. Okay. Thank you. 

I now recognize Dr. Davis for 5 minutes of questions. 

Mr. DAVIS. Thank you, Mr. Chairman. 

Mr. Welner, do the high schools and community colleges in the 

area where your plants and facilities are located, are they preparing individuals for work in the manufacturing areas? 

Mr. WELNER. So certainly, the community colleges and the vocational schools are trying. The challenge is getting the students 

into them, right? We do have some high school programs that are 

starting to take positive effect in terms of partnering with a technical school and allowing students to get their technical certifications or credentials while they are in high school. 

The big challenge seems to be the lack of interest in that generation in this type of work. We are starting to push all the way down 

into the middle schools and elementary schools, starting to talk to 

kids about the positive benefits of careers in manufacturing. And 

we don’t think of it as just a job, we think of it as a career. 

76 

When I started 25 years ago at Learjet, I started as a payroll clerk at $8.50 an hour, coming out of a 4-year school with a degree 

in finance. That wasn’t my aiming point, but it was a way in the 

door, and that is the promise we are trying to talk to these kids 

about. And if you look at most of our leaders in the manufacturing 

world, they started on the shop floor, so it can absolutely be a career and not just a job, but we have to get the kids interested in 

it. 

Mr. DAVIS. So, if there was perhaps more focus put on recruitment, because many of the individuals who end up in need of 

TANF are individuals who have gone past or didn’t complete or did 

not follow the high school curriculum to the point, so I am just 

thinking that some additional recruitment of this population group, 

especially young adults who have no skill but fit the category and 

the requirements for TANF assistance, I think would probably 

be—— 

Mr. WELNER. I think that would be great. I think we have lost 

a lot of the shop classes in the school system. When I came through 

the school system, you could take a mechanical shop class, you 

could take a woodworking class. All of that is gone. So, the kids 

that maybe the regular curriculum isn’t right for, they don’t have 

anywhere to go. 

Mr. DAVIS. Mr. Wells, I know that the Urban League does not 

officially have a training program that is directly related to TANF 

recipients, but you do get them, right? 

Mr. WELLS. That is correct. 

Mr. DAVIS. I understand people do come who meet the criteria 

to be a TANF recipient. Are you able to connect them in any way 

with TANF or to pursue resources through TANF that could benefit them? 

Mr. WELLS. I’m sorry. Are you saying, are you talking specifically about TANF participants that come through Chicago Urban 

League’s doors and connecting them to different resources? 

Mr. DAVIS. Right. 

Mr. WELLS. Yes. So, we do an assessment to figure out what the 

need is, if they come through our doors and they are interested in 

some type of training. Right now, we run several of them. We have 

the Ready to Work Grant in which we provide technology training. 

We have training in supply chain management. We have construction training to increase minority participation in the trades. So, it 

depends on what, it depends on what they want to do and if they 

qualify for that, for those programs and then we will enroll them 

in the programs. 

Mr. DAVIS. Well, let me just, I have been particularly warmed 

with the coming with that as an activity relative to helping individuals get into the electrical area, so let me just commend the Urban 

League for that affiliation. Thank you very much, and I yield back 

to the Chairman the balance of my time. 

Mr. WELLS. Thank you. 

Chairman SMITH. Thank you. 

Ms. Walorski. 

Ms. WALORSKI. Thank you, Mr. Chairman. And to Peter’s 

point, there was an article that he referenced in the Wall Street 

Journal last week, and the headline is ‘‘The Future of America’s 

77 

Economy Looks a Lot Like Elkhart, Indiana,’’ and Peter is right 

down the road from Elkhart in my district. 

The article says, ‘‘High school students skip college for factory 

jobs that offer great pay and benefits. Workers are so flush that car 

dealers can’t keep new pickups on the lot. At the same time, employers can’t hold onto employees.’’ It points out that the unemployment rate is essentially zero because there are 9,500 jobs available 

in this place in Elkhart. 

So, Peter, to your point, as we talk about that, there are challenges between this article and your testimony. Which is the hardest to do, find workers, teach them skills, or retain them? What is 

the toughest part of those three for you? 

Mr. BARRETT. That is a really tough choice because all three 

are exceptionally difficult. Retaining employees has been very difficult. I will give you an example that happened on Monday. I 

walked into my office and an employee who had been with us for 

20 years came to me, with tears in his eyes to tell me he was leaving. Our employees are family, and so when a 20-year employee 

comes to us and he is saying that he is going to leave, that is a 

big deal. 

Martin has worked for us for 20 years. He drives a forklift. He found a job across town for $10 more an hour. Our industry and 

our company doesn’t have the means to be able to raise rates that 

abruptly, to get into a wage war and to chase employees. So we 

just lost a really good employee who I would love to still have, and 

as I said, he is part of the family. This is one of many heartbreaking stories where we are losing good employees with longevity. They are leaving good benefits and stability in a short-term 

wage war. 

Ms. WALORSKI. And let me ask you this. With 2017 being a 

record year you talked about, and with tax cuts, with more money 

in folks’ pockets, looking at things they want to be involved in, do 

you need to hire more workers? And what if you found enough 

workers, what would that do for your company? 

Mr. BARRETT. If we found more workers we would certainly 

bring our factory up to full capacity. We have three different product lines, pontoons, aluminum fishing boats, as well as fiberglass. 

Our aluminum fishing boat’s welded line could use several more 

employees. Right now, we have 44 openings which need to be filled. 

Also, if we could get more employees in the Elkhart area it would 

help relieve the supply chain. It is not just our business, but it is 

the supply chain underneath us that is suffering, too. So, if our 

console supplier can’t build consoles due to an employee shortage, 

we can’t build those boats that day. 

Ms. WALORSKI. I appreciate it. I yield back, Mr. Chairman. 

Chairman SMITH. Thank you. 

Mr. Curbelo. 

Mr. CURBELO. Thank you so much, Mr. Chairman. And thank 

you all for being here to discuss this very important topic with us. 

We are focused on how we can help some of the most vulnerable, 

needy people in our country. 

And I have been fortunate to team up with Dr. Davis, this Congress, to figure out how we can perhaps modify or leverage our existing social welfare programs such as TANF to open new doors, 

78 

provide new opportunities to those who are on the sidelines as 

Chairman Brady tends to say. 

Do you all have any ideas as to how we might be able to use 

those programs, not just to help people get by, but to help get them 

into the workforce, to help them get up on their feet, and hopefully 

eventually become independent of all these programs? Anyone who 

wants to take it. 

Mr. WELLS. I think one of the things that needs to happen is 

an exception needs to be made for those who are interested in enrolling in a skills training program. So, if they are interested in it, 

the 20-hour stipulation each week, that needs to come down because most of the training programs go past 20 hours, so I think 

an exception needs to be made in order for them to get an industryrecognized credential and go into some type of good-paying job. 

Mr. CURBELO. Does anyone else want to add to that? 

Do you have any thoughts on wage support for employers who 

contract higher, TANF beneficiaries for example? 

Mr. WELNER. We are not really involved with that. Most of the 

people we hire have to have some credentials from a skills standpoint because we are building very complex aerostructures that require precision and training, so my company is not very involved 

in that, so I can’t add much to it. 

Mr. CURBELO. Thank you, Mr. Chairman. 

Chairman SMITH. Thank you. Thank you to everyone here for 

your participation. It means a lot that you would share your perspective. 

And please be advised that Members will have 2 weeks to submit 

written questions to be answered later in writing. Those questions 

and your answers will be made part of the formal hearing record. 

With that, the Subcommittee stands adjourned. 

[Whereupon, at 3:58 p.m., the Subcommittee was adjourned.] 

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