U.S. GOVERNMENT PUBLISHING OFFICE

30–502 WASHINGTON : 2019

SHRINKING THE SKILLS GAP: SOLUTIONS TO 

THE SMALL BUSINESS WORKFORCE SHORTAGE 

HEARING 

BEFORE THE

SUBCOMMITTEE ON ECONOMIC GROWTH, 

TAX, AND CAPITAL ACCESS 

OF THE

COMMITTEE ON SMALL BUSINESS 

UNITED STATES 

HOUSE OF REPRESENTATIVES 

ONE HUNDRED FIFTEENTH CONGRESS 

SECOND SESSION 

HEARING HELD 

JUNE 14, 2018 

Small Business Committee Document Number 115–077 

Available via the GPO Website: www.govinfo.gov 

SBR002 with DISTILLER


Congress.#13
(II) 

HOUSE COMMITTEE ON SMALL BUSINESS 

STEVE CHABOT, Ohio, Chairman 

STEVE KING, Iowa 

BLAINE LUETKEMEYER, Missouri 

DAVE BRAT, Virginia 

AUMUA AMATA COLEMAN RADEWAGEN, American Samoa 

STEVE KNIGHT, California 

TRENT KELLY, Mississippi 

ROD BLUM, Iowa 

JAMES COMER, Kentucky 

JENNIFFER GONZA ́ LEZ-COLO ́ N, Puerto Rico 

BRIAN FITZPATRICK, Pennsylvania 

ROGER MARSHALL, Kansas 

RALPH NORMAN, South Carolina 

JOHN CURTIS, Utah 

NYDIA VELA ́ ZQUEZ, New York, Ranking Member 

DWIGHT EVANS, Pennsylvania 

STEPHANIE MURPHY, Florida 

AL LAWSON, JR., Florida 

YVETTE CLARK, New York 

JUDY CHU, California 

ALMA ADAMS, North Carolina 

ADRIANO ESPAILLAT, New York 

BRAD SCHNEIDER, Illinois 

VACANT 

KEVIN FITZPATRICK, Majority Staff Director 

JAN OLIVER, Majority Deputy Staff Director and Chief Counsel 

ADAM MINEHARDT, Staff Director 

SBR002 with DISTILLER

(III) 

C O N T E N T S 

OPENING STATEMENTS 

Page 

Hon. Dave Brat ........................................................................................................ 1 

Hon. Dwight Evans ................................................................................................. 2 

WITNESSES 

Mr. Todd Hitt, CEO, Kiddar Capital, Falls Church, VA ...................................... 4 

Mr. Kelly McCreight, President and CEO, Hamilton-Ryker IT Solutions, 

Nashville, TN, testifying on behalf of the American Staffing Association ...... 6 

Ms. Angela Dine Schmeisser, President and CEO, St. Marys Foundry, Inc., 

St. Marys, OH ...................................................................................................... 8 

Mr. Bryant Greene, Administrator, Always Best Care Senior Services, Philadelphia, PA ........................................................................................................... 10 

APPENDIX 

Prepared Statements: 

Mr. Todd Hitt, CEO, Kiddar Capital, Falls Church, VA ............................... 23 

Mr. Kelly McCreight, President and CEO, Hamilton-Ryker IT Solutions, 

Nashville, TN, testifying on behalf of the American Staffing Association ................................................................................................................. 36 

Ms. Angela Dine Schmeisser, President and CEO, St. Marys Foundry, 

Inc., St. Marys, OH ....................................................................................... 41 

Mr. Bryant Greene, Administrator, Always Best Care Senior Services, 

Philadelphia, PA ........................................................................................... 50 

Questions for the Record: 

None. 

Answers for the Record: 

None. 

Additional Material for the Record: 

CompTIA ........................................................................................................... 53 

WIPP - Women Impacting Public Policy ........................................................ 57 

SBR002 with DISTILLER

SBR002 with DISTILLER

(1) 

SHRINKING THE SKILLS GAP: SOLUTIONS TO 

THE SMALL BUSINESS WORKFORCE SHORTAGE 

THURSDAY, JUNE 14, 2018 

HOUSE OF REPRESENTATIVES, 

COMMITTEE ON SMALL BUSINESS, 

SUBCOMMITTEE ON ECONOMIC GROWTH, 

TAX, AND CAPITAL ACCESS, 

Washington, DC. 

The Subcommittee met, pursuant to call, at 10:00 a.m. in Room 

2360, Rayburn House Office Building, Hon. Dave Brat [chairman 

of the Subcommittee] presiding. 

Present: Representatives Brat, Chabot, Norman, Evans, and 

Murphy. 

Chairman BRAT. Good morning. I would like to call this hearing 

to order. 

Welcome to our C-SPAN friends in the back of the room. The 

cameras are rolling, so everyone be on your best behavior. And I 

call this hearing to order right now. 

We are waiting for some of our colleagues to get here. I think 

they are on their way, but I do want to—I usually don’t start off 

by calling attention to the title of our hearing today, but I think 

it is one of the most important issues facing the country. And so 

today we are having a hearing on shrinking the skills gap: solutions to the small business workforce shortage. And we have got a 

great panel before us this morning, and so I would like to welcome 

everybody. And let’s get underway. 

The American economy is creating jobs at historic rates. Over 1 

million jobs have been created so far this year. The unemployment 

rate is at an 18-year low of 3.8 percent, and there are now more 

vacant jobs than unemployed job seekers in the United Stares. 

That is the good news. On June 1, there was even an article in The 

New York Times with the title, ‘‘We Ran Out of Words to Describe 

How Good the Jobs Numbers Are.’’ 

Small business optimism is at an all-time high. Tax reform has 

created an opportunity for small businesses to hire that extra employee or make that needed expansion or renovation. 

The problems is when there are 6.6 million job vacancies, small 

businesses have a particularly difficult time finding and retaining 

qualified employees. According to the National Federation of Independent Business, 57 percent of surveyed small business owners either hired workers or were trying to hire workers in the last 

SBR002 with DISTILLER

2 

month. However, 88 percent of those hiring or trying to hire reported few to no qualified applicants for vacant positions. 

This raises a significant secondary issue. According to the American Enterprise Institute, there are 7 million men currently missing from the workforce. The female labor force participation rate 

has declined by 6 percent since 2000. Also, one in seven 16- to 24- 

year-olds are neither in school nor working, which could have serious economic implications for decades to come. These groups are 

not even included in our labor market. We do not want to forget 

them either. 

Our Committee has held several hearings in the past few months 

that have examined the workforce shortage and the skills gap. This 

morning we have brought together an excellent panel to learn more 

about how to solve this problem. Through today’s hearing, we hope 

to hear ideas that will ensure America’s small businesses have a 

workforce with the right skill set to propel the American economy 

forward. 

To be clear, this hearing is not about a few tweaks here and 

there. These distortions in the labor market affect every State, 

every congressional district, and the nearly 30 million small businesses in our Nation. 

I thank you all for being here this morning, and I yield to the 

Ranking Member for his opening remarks. 

Mr. Evans. 

Mr. EVANS. Good morning. And thank you, Mr. Chairman. 

As our Nation strives to regain its global competitiveness, it is 

critical that companies of all sizes have access to the skilled workforce they need to succeed. In fact, in the next decade, nearly twothirds of all job vacancies will require some postsecondary education. And this will only increase as the pace of technology 

changes accelerate. Small business creates 70 percent of all new 

jobs, and it is essential that these workers have sufficient technical 

skills. 

Analyzing the United States workforce reveals two areas of concern: an existing skills gap among workers and a large increase in 

the retirement of baby boomers within the next decade. Both emphasize the importance of transforming the education process and 

requirements for future workers. 

For businesses, this reality has dire consequences. If we are unable to meet the demand for trained workers, it will weaken our 

ability to compete globally. The manufacturing, technology, and 

healthcare sectors in particular face challenging obstacles to this 

deficiency. 

And what is essentially troubling is that there are fewer workers 

seeking jobs, compounding the problems further. With the unemployment rate at a low of 3.8 percent, small businesses will be at 

even more of a disadvantage as they compete for any workers, especially those with training. 

This begs the question, how do we address this skills gap now 

to get people qualified for these jobs? 

Targeted postsecondary education, such as skill certificate systems, can assist small firms in securing qualified employees to help 

them grow. Novel partnerships among industry, educators, and polSBR002 with DISTILLER

3 

icymakers are also playing a role by preparing the workforce and 

incentivize school completion. 

Too many American workers and small businesses have been left 

behind. That is why creating incentives for training, certification, 

and apprenticeship programs leads to a stronger workforce, better 

learning, higher productivity. Most important, we must change the 

stigma surrounding these jobs and refocus the discussion for our 

future generation as they need it. 

Efforts such as these we will discuss today are critical to our economic recovery. By preparing America’s workforce to compete in a 

global marketplace, firms will be better positioned to succeed, paving the way for stronger growth. Prudent investments in training 

and education will also reduce the unemployment rate, leading to 

higher consumer confidence and demand. 

This is exactly what our Nation needs now that we look to turn 

the corner, create more jobs, ensure that America’s small businesses are prepared to move our economy forward. 

I look forward to today’s hearing, and thank the witnesses for 

being here. 

Thank you, Mr. Chairman, for bringing this very important 

panel together, and I yield back the balance of my time. 

Chairman BRAT. Thank you, Dwight. 

If Committee members have an opening statement prepared, I 

ask they be submitted for the record. 

I would like to take a moment to explain the timing lights for 

each of you today. You will each have 5 minutes to deliver your testimony. The light will start out green. When you have 1 minute remaining, the light will turn yellow. Finally, at the end of your 5 

minutes, it will turn red. I ask you try to adhere somewhat to that, 

but we are flexible. I think we have got a pretty flexible hearing 

today with plenty of time to spare. 

And so with that, let’s get to introducing our first witness. Our 

first witness today is Mr. Todd Hitt, CEO of Kiddar Capital in 

Falls Church, Virginia. Kiddar Capital is a global asset management firm that manages investments and private equity, real estate, infrastructure, and hospitality. They have expertise on labor 

markets across all of these sectors and are a good leadoff to explain 

what is going on in the real world this morning. 

Mr. Hitt frequently speaks across the country and writes about 

how to improve the American economy, create opportunities for the 

middle class, and is a bold, innovative voice on navigating America’s greatest economic challenges. 

And so we welcome you today and thank you for joining us, Mr. 

Hitt, and you may begin. 

SBR002 with DISTILLER

4 

STATEMENT OF TODD HITT, CEO, KIDDAR CAPITAL; KELLY 

MCCREIGHT, PRESIDENT AND CEO, HAMILTON-RYKER IT SOLUTIONS; ANGELA DINE SCHMEISSER, PRESIDENT AND CEO, 

ST. MARYS FOUNDRY, INC.; AND BRYANT GREENE, ADMINISTRATOR, ALWAYS BEST CARE SENIOR SERVICES 

STATEMENT OF TODD HITT 

Mr. HITT. Well, good morning. Chairman Brat, Ranking Member 

Evans, I really appreciate the opportunity to be here this morning 

and talk with you about this critical problem our country is facing. 

My name is Todd Hitt. I am the founder and CEO of Kiddar Capital, a private equity firm based in the Washington, D.C., area. 

Kiddar manages a wide variety of assets across established and 

emerging asset classes, including venture real estate, construction, 

and energy. 

Through my work, it has become clear to me that the United 

States is facing a critical labor shortage that could well topple the 

economy if we don’t fix it. There are pockets of the country that 

have few jobs and too many workers, but there are far more with 

many jobs and too few workers. 

Labor shortages mean small businesses can expand and they 

constrain economic growth in a visceral way. Turning down work 

is the last thing an entrepreneur and business owner wants to do, 

but when you don’t have the labor you need, it is one of the only 

options you have. 

My goal today is to offer practical solutions to address our labor 

shortage. First, let me briefly illustrate the scope of the problem we 

face. 

In April, there were 6.7 million jobs open in the United States, 

and while the unemployment number doesn’t include workers who 

have simply dropped out of the workforce, it was the first time 

since 2000 that the number of jobs open exceeded the number of 

workers. I site many of these stories in my written testimony. 

The firms Kiddar Capital has worked with have lived the labor 

shortage that is definitely an issue that the CEOs and investors I 

know talk about constantly. In my written testimony, I have included a graphic that shows the ratio of unemployed individuals to 

jobs available. Two years after the Great Recession was over, there 

were four unemployed workers for every U.S. job open. Today, it 

is less than a one-to-one ratio. 

The worker shortage affects all regions of the country. In my 

written testimony, I have also included graphics showing the divergence between the prime age population and the number of workers in large cities and midsize cities and suburbs and in rural 

America. Everywhere there is a gap between jobs and the prime 

age working population. 

As I noted above, these shortages hit small businesses the hardest. As candidates for office, you are familiar with the issue of 

name ID. Well-known candidates have an instant advantage. The 

same principle applies to hiring workers. When you are smaller, a 

potential employee is less likely to be familiar with your reputation 

and your name. Many people perceive working for a smaller business, especially a startup or a riskier—a far riskier challenge, of 

SBR002 with DISTILLER

5 

course. Main Street employers also have a harder time absorbing 

the wage inflation that goes along with the labor shortage. 

There are economists who will argue today’s shortage could be 

solved if employers simply offer higher wages, but higher wages 

can’t attract workers who aren’t there, and more often than not, 

higher wages impact pricing and make the businesses’ thesis untenable. 

There are several factors that contribute to the nation’s labor 

shortage. Today, I will address one: labor mobility. This is one we 

don’t hear enough about, I think. 

If you remember one statistic from my remarks today, I want it 

to be this: In 2017, fewer Americans moved than in any year in at 

least the last 50 years. The U.S. mover rate is now 11 percent. 

That is an historic low, and it is half of what it was just 30 years 

ago. Instead of moving in search of a new job, today’s out-of-work 

Americans are more likely to drop out of the workforce. 

The University of California at Berkeley’s Enrico Moretti even 

has connected to the client and labor mobility to increased income 

equality. Family ties, housing costs, and level of education all impact a family’s willingness to move, but I believe if we make it easier for them to move, Americans will get moving again. 

Businesses clearly have a role when it comes to encouraging mobility. We must attract talent with fair wages, family sustaining 

benefits, and the promise of a stable job, but I believe lawmakers 

need to work in tandem with American job creators to solve this 

problem. 

The first solution is to reinstitute the tax deduction individuals 

can receive for work-related moving expenses. I was a vocal supporter of the Tax Cuts and Jobs Act, but I believe doing away with 

that deduction was a mistake. 

As you know, when you tax something, you generally get less of 

it. When you incentivize it, you get more. Mobility incentives will 

help unstick our workers. 

One way to pay for these grants is to let unemployed individuals 

collect their State and Federal unemployment benefits up front if 

they are using them to move to another location in order to take 

a job. 

The U.S. Labor Department executed a small scale mobility 

grant program in the 1970s. The Job Search and Relocation Assistance Program involved 40 different unemployment offices across 

several southern States. Different offices offered different types of 

assistance ranging from providing information about jobs to actually giving individuals grants to take jobs in other places. 

A 1981 analysis of the program found wages for those who relocated through the program were higher. Local, State, and Federal 

levels of government provide tax incentives to businesses to provide 

worker training. Similar incentives should be given to employers 

who spend capital to relocate workers. Very important issue. 

Differing rules for Federal programs like Medicaid and Supplemental Nutrition Assistance Program create a major barrier to 

keep people from moving. And while Section 8 rental housing 

vouchers promote mobility within metro areas, a long waiting list 

in most areas are a strong disincentive against relocation. High 

SBR002 with DISTILLER

6 

housing costs are a major reason families don’t move to cities with 

robust job markets. 

I am running out of time here, Chairman. I maybe have another 

40 seconds. 

Chairman BRAT. That is fine. 

Mr. HITT. High housing costs are a major reason families don’t 

move to cities with robust job markets. In The Atlantic, last fall, 

Alana Semuels pointed out that states like Texas, which have less 

strict zoning laws, have high in-migration rates. Cities should loosen land use regulations. 

It is not only urban areas that struggle to provide housing for 

new workers. The Wall Street Journal’s Shayndi Raice found that 

in Platte County, Nebraska, there are around 990 jobs available, 

but only a total of 65 homes for sale. Housing prices are rising so 

fast in Nebraska the State is considering incentives for homebuilders to build. Reducing occupational licensing regulations also 

will reduce disincentives for professionals to move. 

I want to thank you again for the opportunity to testify here this 

morning. The labor shortage and the lack of labor mobility should 

concern Republicans and Democrats alike. This is a nontribal issue. 

It is an issue we must tackle to increase growth rates and to improve income inequality. 

Thank you for your time and consideration today and for your 

service to our great country. 

Chairman BRAT. Thank you for your testimony, Mr. Hitt. It is 

good to have a nontribal win-win, and I think you hit the nail on 

the labor mobility piece. And so we will be coming back to you on 

the Q&A part. 

Next witness today is Kelly McCreight, president and CEO of 

Hamilton-Ryker IT Solutions in Nashville, Tennessee. HamiltonRyker is an information technology staffing firm, and also provides 

businesses with recruiting, management consulting, and information technology solutions. 

Thank you for joining us today and for lending your expertise, 

Mr. McCreight, and you may begin. Thank you. 

STATEMENT OF KELLY MCCREIGHT 

Mr. MCCREIGHT. Good morning, Chairman Brat, Ranking 

Member Evans, and other members of the Committee. Again, I am 

Kelly McCreight. I am the chief executive officer of HamiltonRyker, and I am also current Chairman of the American Staffing 

Association. It is my privilege to represent both organizations this 

morning. 

Founded in 1971, Hamilton-Ryker is a total workforce solution 

and industry leader for the provision of industrial, administrative, 

and information technology staffing, as well as recruiting, management consulting, and IT solutions. We are headquartered in Nashville, Tennessee. We have 35 locations across the U.S. For 45 years, 

we have helped thousands of people find great jobs in great careers, while providing our customers, many of which are small 

businesses, with a staffing solution concentrating on manufacturing, distribution, clerical, and skilled trade disciplines. 

The American Staffing Association is a national trade association 

that has been the voice of the U.S. staffing industry for more than 

SBR002 with DISTILLER

7 

50 years, promoting the interests of the industry and flexible employment opportunities through legal and legislative advocacy, public relations, education, and the establishment of high standards of 

ethical conduct. The ASA strongly supports policies that help 

America’s workers, and is working closely with the Department of 

Labor and other Federal agencies on the development of a new and 

expanded apprenticeship program. 

The staffing industry employs more than 3 million employees per 

day and more than 15 million each year. Staffing firms recruit and 

hire their own employees and assign them to businesses to assist 

in special work situations, such as employee absences, skill shortages, and seasonal workload, or to perform special assignments or 

projects. Employees work in virtually every skill level and job category, including industrial labor, office support, engineering, IT, 

legal, and accounting. 

Most everyone is aware of the latest reports highlighting the current situation in the workforce. Basically, there is more jobs than 

people. We see that firsthand at Hamilton-Ryker in almost all of 

our markets. We are in a lot of small towns in Tennessee, Mississippi, and Kentucky, as well as in larger cities like Houston and 

Nashville. 

With the economy at full employment, we are taking measures 

to upskill the existing workforce. For instance, by taking workers 

that may have a certain skill set and providing them training to 

allow them to be promoted or move into another position at a higher wage rate. Additionally, we have instituted soft skill orientations 

that address issues like conflict resolution, workplace violence, and 

even basic workplace practices, such as on time arrival to work, 

call-in procedures, and how to deal with differing workplace cultures. 

This morning, I wanted to highlight specific measures our company is taking in Tupelo, Mississippi, in order to assess skills and 

train workers for one of our manufacturing clients. Last year, our 

company partnered with IVR Train, a spin-off company from Tennessee Tech University that develops virtual reality training for 

manufacturers. For those of you that don’t know, virtual reality is 

an interactive computer-generated experience taking place within a 

simulated environment that incorporates auditory, visual, and 

other types of sensory feedback. 

Current VR technology most commonly uses headsets or multiprojected environments, sometimes in combination with physical 

environments or props, to generate realistic images and other sensations that simulate a user’s physical presence and a virtual or 

imaginary environment. 

In Tupelo, we specifically were interested in how VR could assist 

us in recruiting, testing, and training forklift drivers. We purchased a VR forklift and installed it in our office in early January. 

The VR forklift has eight assessments that test a variety of forklift 

skills from beginner to advanced. Prior to purchasing the VR forklift, we could only interview our applicants and then send them out 

to our client for testing on the actual machine. We are now better 

able to assess the applicants’ skills using the VR technology, resulting in a 70 percent plus pass rate for our applicants versus less 

than 50 percent in 2017. 

SBR002 with DISTILLER

8 

This summer, we are implementing a training program for those 

workers who may have had previous forklift experience but need 

to upgrade their skills before being placed at client sites. 

I have included a short video that will give the Committee a better understanding of how the VR forklift operates. This is just one 

of the examples our company and other members of the ASA are 

doing to train workers for tomorrow’s jobs and help close those 

skills gap. 

Thank you for your time. 

So I don’t believe there is any sound, but this is the actual machine in our office. And so it fits on about a 12-by-12 space. And 

he is putting on the glasses and he is going through one of the test 

assessments. 

[Video shown.] 

Mr. MCCREIGHT. So the major cost for this is the computer, obviously, and the video card that is inside there. So the costs are 

$15- to $20,000, which includes a simulator and the computer 

equipment. We have eight assessments that we can test. 

Chairman BRAT. How is he doing? 

Mr. MCCREIGHT. He has passed. I included the one that 

passed. 

So that is—I wanted to show you that is what he is looking—that 

is what it looks like. So the first assessment is go through the 

cones and can he turn the forklift, and then it gets progressively 

harder each time, including going into a trailer, picking up a pallet, 

backing it out. So if they pass the first three, then we will send 

them on for testing on the physical machine. 

So thank you. 

Chairman BRAT. All right. Super. Thanks for your testimony, 

Mr. McCreight. 

Our next witness is Angela Dine Schmeisser. Ms. Dine 

Schmeisser is president and CEO of St. Marys Foundry, Inc., an 

iron casting producer in St. Marys, Ohio. Under her leadership, St. 

Marys Foundry recently established the St. Marys Foundry Technical Institute, which encourages employees to set goals and take 

classes outside of their department specialty to be well rounded, 

while remaining experts in their field. 

Thank you for being with us today, and you may begin your testimony. Thank you. 

STATEMENT OF ANGELA DINE SCHMEISSER 

Ms. DINE SCHMEISSER. Good morning, Chairman Brat, Ranking Member Evans, and members of the Committee. Thank you for 

the opportunity to testify today to discuss the skills gap and workforce shortage facing U.S. metal casting industry and for taking the 

time and energy to address this challenge. 

As announced, I am Angela Dine Schmeisser, fourth generation 

president of St. Marys Foundry. My great grandfather started our 

manufacturing facility in 1917 in St. Marys, Ohio. I care about the 

state of manufacturing in our country, which is why I am here 

today, and which is why I actively participate in the American 

Foundry Society and serve on the board and as president of the 

Ohio Cast Metals Association. 

SBR002 with DISTILLER

9 

Ohio remains among the top three States for manufacturing employment in the country, and is also home to over 150 metal casting facilities, which is the highest concentration of metal casters in 

the Nation. Metal casting is one of our Nation’s oldest and most 

important industries, as castings made from iron, steel, or aluminum alloys are used to produce 90 percent of manufactured durable goods and nearly all manufacturing machinery in the U.S. 

Today, St. Marys Foundry employs 160 associates and manufactures iron castings ranging from 500 to 60,000 pounds. We melt 

scrap metal, add necessary alloys, and transform them into key 

components, such as compression cylinders for the natural gas 

pipeline and diffusers for flood control. If you have ever used natural gas, I can proudly say one of our fine castings has touched 

your lives. 

As you know, America’s labor shortage has reached a record 

high, and as Chairman Brat said, with U.S. unemployment rate 

dropping to an 18-year low of 3.8 percent in May, this is a real 

challenge. If you gather a group of metal casters and ask them 

what their biggest challenge is today, more than 80 percent will 

cite the talent shortage of both skilled and unskilled workers. This 

shortage threatens to slow the economy, impede manufacturers’ 

ability to deliver on customer demands, burn out our workers, and 

hurt our bottom line through lost revenues and lost opportunities. 

At St. Marys Foundry, we have a great working environment 

with competitive wages and benefits, and we are still struggling to 

fill job openings. We are challenged on a number of fronts: an aging 

workforce, local housing shortages, a local unemployment rate 

averaging 2.8 percent, the drug epidemic, and less people choosing 

manufacturing careers due to the perception that manufacturing is 

outdated and legacy work. With a combination of all these factors, 

the shortage of skilled and unskilled workers has turned into a perfect storm. 

We currently have 16 openings for a variety of jobs specific to our 

industry, such as casting finishers and mold makers. In January, 

we held a job fair. We promoted the fair on our Facebook page, put 

up billboards along the interstate, and encouraged our employees 

through incentives to promote our job openings on social media. 

Our job fair resulted in 76 applicants, which we felt was successful. 

However, out of those 76 applicants, 46 failed the onsite drug test, 

and six applicants didn’t follow up on the next step of the interview 

process. We ended up hiring 24 applicants, and now, primarily due 

to attendance issues, only four of these individuals remain employed at the foundry today. 

As you can see from the results of our job fair, finding applicants, 

especially drug-free applicants, is a real struggle. Typically, only 25 

to 30 percent of perspective employees can pass the drug test. 

Given the fact that we have heavy equipment and molten metal in 

foundries, it is vitally important that our workers are drug free. 

Our industry is stepping up and making a commitment to actively reach out to introduce the metal casting process to local elementary, middle schools, high schools, and other venues. Foundries 

are working with their local labor departments, technical colleges, 

veteran organizations, and correctional facilities for referrals. We 

are providing in-house training, including apprenticeships for our 

SBR002 with DISTILLER

10 

more technical positions, and paying for our associates to go to 

technical classes. 

There is a role for Congress to help facilitate the rebuilding of 

this pipeline of students into manufacturing by refocusing resources in vocational and technical programs available to high 

schools and community colleges across the country. 

We appreciate the House passing the Strengthening Career and 

Technical Education for the 21st Century Act, also known as the 

Carl Perkins Career and Technical Education bill, which provides 

resources for secondary schools and community colleges to teach 

manufacturing skills and other technical trades. I understand that 

the Senate Health Committee is scheduled to act on several Perkins Career and Technical Education bills on June 20, and I hope 

that the Senate will vote to move forward on bipartisan legislation 

soon. 

In addition, it would be helpful if Congress would fully fund the 

Perkins Career and Technical Education Act. Increasing student 

participation in work-based learning opportunities would go a long 

way to help increase interest in manufacturing job opportunities. I 

personally believe we should also consider connecting these educational programs to drug rehabilitation programs and behavioral 

correction programs for exponential success. 

I want to thank you again for the opportunity to be here today 

and share our company and industry workforce challenges, and I 

look forward to your questions. 

Chairman BRAT. Thank you very much for that compelling testimony. It was very good. 

And now I would like to yield to our Ranking Member, Mr. 

Evans, for introduction of the final witness. 

Mr. EVANS. Thank you, Mr. Chairman. 

It is my pleasure to introduce Mr. Bryant Greene, owner and administrator of Always Best Care, a senior service healthcare serving greater Philadelphia. He has a TV and radio show ‘‘Did You 

Know’’ connecting people to home, community, and business resources. Mr. Bryant is the advisory board over 1199C, an ASMEaffiliated labor management partnership. They provide training to 

community members, as well as union members, to help secure a 

skilled workforce, something his industry is in dire need of acquiring. 

Mr. Greene is a graduate of Philadelphia University where he received his MBA. 

Welcome, Mr. Greene. 

STATEMENT OF BRYANT GREENE 

Mr. GREENE. Thank you. 

Good morning, Chairman Brat, Ranking Member Evans, and distinguished members of the Subcommittee. Thank you for convening 

today’s hearing on small business workforce development needs 

and how to address the skills gap. 

My name is Bryant Greene, and I am the owner of Always Best 

Care Senior Services in both Philadelphia, Pennsylvania, and 

throughout Delaware. Always Best Care Senior Services is one of 

the Nation’s leading providers of nonmedical in-home care, assisted 

living placement services, and skilled home healthcare. 

SBR002 with DISTILLER

11 

It is an honor for me to be here today to testify before this Subcommittee and to share my experience as a private sector employer 

working to address the skills gap in my industry. 

As the owner of Always Best Care, I have more than 25 years 

of day-to-day operations experience, which includes staffing and 

workforce development in a healthcare environment. In addition to 

my experience in home healthcare, I currently serve on the public 

policy committee/political action committee board of the Pennsylvania Home Care Association, and I am a member of the Board of 

Trustees of the Philadelphia University Legacy Board, now acquired by Thomas Jefferson University; the Overbrook School for 

the Blind in Philadelphia; the Magee Rehabilitation Hospital Foundation Board of Directors; and the board of Philadanco. 

Growing up, I was a part of the family who qualified for 1199C 

benefits, which provide eligible union members with comprehensive 

educational services in the healthcare field. As a result, my mother, 

grandmother, and I were able to attend college in the same timeframe, giving us a chance to persist and succeed in our chosen 

fields. Without access to this type of targeted training, I would not 

be where I am today. 

Middle-skill jobs like those at Always Best Care Senior Services 

account for 53 percent of United States labor market, but only 43 

percent of the country’s workers are trained at the middle-skill 

level. In healthcare industries, this skills gap is even more pronounced. 

Home healthcare is one of the fastest growing industries in the 

U.S. As the labor market has tightened, employers like Always 

Best Care increasingly struggle to identify hires with credentials 

and work experience, both of which are required to earn licenses. 

When there were more workers looking for jobs, new entrants 

earned work experience in helper roles, enabling a constant stream 

of newly licensed workers to meet middle-skill demand. With lower 

levels of unemployment, the pipeline no longer exists. 

For small- and middle-sized businesses like Always Best Care in 

particular, the skill care gap can create daunting challenges when 

it comes to hiring and retaining workers. 

Challenges in recruiting workers. First, quality in-home care requires the right kind of person. Always Best Care looks for kind, 

compassionate caregivers who treat clients with dignity and respect. We provide in-home care services, both companion and personal care. We serve patients with Alzheimer’s, dementia, and cancer. In addition to comfort and companionship, we offer dressing, 

escort transportation, errands, bathing and grooming, incontinence 

care, light housekeeping, grocery shopping and meal preparation, 

laundry, and medication reminders. 

Recruiting the right person for this work requires significant outreach to our communities, a detailed interview process, and a 

structured onboarding process. Always Best Care has over 1,000 

caregivers, but we can’t do this on our own. We have worked with 

the PA career link, diversity career fairs, social organizations, and 

training programs like 1199C to recruit individuals into the field. 

These community partnerships help us identify a diverse set of 

workers across our service area and fill roles in the company. 

SBR002 with DISTILLER

12 

I also work with community organizations and reentry programs 

that serve individuals who have been released from incarceration. 

The Pennsylvania Older Adult Protective Services Act, OAPSA, requires all home care agencies to complete criminal background 

checks prior to hire. However, a 2015 court decision by the Commonwealth of Pennsylvania known as Peake v. Commonwealth 

found lifetime bans on unemployment unconstitutional. Although 

background checks are still required, the Department of Aging now 

recommends that providers perform a risk assessment if they 

choose to hire an individual with a prior criminal conviction. While 

we are awaiting more guidance from the State, we believe this is 

a step in the right direction and urge Federal policymakers to consider similar measures when it comes to addressing barriers to hiring. 

Challenges training new and incumbent workers. Training new 

workers in home healthcare requires dedication and intensity. All 

of the jobs at Always Best Care call for on-the-job training to ensure each client has access to quality, personalized individual home 

care program. Every one of our team members and caregivers receive comprehensive training before assigned on a care plan. Our 

workers also achieve periodic reviews and upskilling opportunities. 

To help provide—I am about to run out of time, sorry. 

Chairman BRAT. That is okay. 

Mr. GREENE. To help provide greater opportunities for our 

workers, I sit on the advisory board of 1199C Training and Upgrading Fund, AFSCME-affiliated labor management partnership. I 

along with several other business leaders work with 1199C staff to 

identify core competencies in home healthcare workers and translate into curriculum and training 1199C can deliver, complemented 

by the training my team can deliver workers on the job. 

This partnership is vital but takes significant work. Currently, 

1199C is a funding portion of their work and subsidizing the cost 

of training through Federal Department of Labor grants and with 

funding from Workforce Innovation and Opportunity Act. I urge 

policymakers to continue investments in our workforce and apprenticeship systems, as they are crucial to supporting the efforts of 

small business workers to close the skills gap. 

Challenges retaining workers. Retaining workers is also a tremendous challenge. Much of my workforce consists of part-time 

workers, since the average care plan is 3 to 6 hours a day. Additionally, because of low Medicaid reimbursement rates, home care 

agencies can only afford to pay $10 to $12 an hour, on average. 

Given the nature of tasks caregivers must perform daily, I feel this 

level of compensation is inadequate, not enough, and does not provide an incentive for individuals to remain in the field. These workers can easily find higher pay in retail and food service industries, 

which is one of the main reasons the industry has a turnover rate 

of 70 percent. 

Also, the insufficient Medicaid reimbursement rate makes it difficult for home care agencies to cover the increasing cost of providing care and services to seniors. Within the last 6 months, additional background check and child abuse clearance requirements 

for home healthcare workers have been handed down by the State 

of Pennsylvania. While these background checks are undeniably 

SBR002 with DISTILLER

13 

important, the cost of hiring just one direct care worker is projected 

to increase by $43 in 2019, yet Medicaid reimbursement rates are 

set to stay the same. 

In conclusion, we can all agree that home healthcare workers are 

crucial to providing high quality to some of the most vulnerable 

members of our society. I am here today to tell you that our industry is facing significant hurdles when it comes to building and 

maintaining a strong pipeline of workers, and there is no doubt in 

my mind that this will adversely affect millions of Americans if not 

corrected. 

I ask that the Federal policymakers work to help provide education and training opportunities to individuals from all backgrounds who are likely to find and retain gainful employment. We 

cannot afford to miss this opportunity too close to our Nation’s 

growing skills gap. 

Thank you. 

Chairman BRAT. Great. Thank you very much, Mr. Greene, for 

your testimony. 

All four of you together put together, I don’t want to say a depressing package, but a set of challenges right from mobility 

through, Ms. Dine Schmeisser, I think you gave us quite a list. And 

I will just go over that and just kind of at a gut feel, if you each 

just want, we will start with Mr. Hitt, and if you want to move 

down. 

You started off with 76 applicants, and then the whole panel 

brought up showing up on time, quitting, 70 percent turnover, the 

stigma of going to college versus getting technical skills in K to 12, 

people being skill ready, huge dropoff due to the drug issue, labor 

mobility. And so you are at the Federal Government right now, and 

in some ways, we can be very helpful on certain policy levers and 

on others it is very blunt. 

So like on education, K to 12, we probably control 10 percent of 

the funding, et cetera, right, and then State and local is 90 percent. 

But we do put mandates down, right? And we lifted mandates last 

year. And so the only required testing going forward under last 

year’s education bill for K to 12 now is going to be math and reading, et cetera. And schools are free to do and have a little more 

flexibility. 

So I am curious to hear your—if we are spending $13,000 a year 

per kid for 13 years, what can we do to get folks ready for the labor 

market in a better way K to 12? And then higher ed, you gave 

some hints as to where Perkins loans and those kind of things, how 

can we shift things. And then these are a lot of band-aid programs, 

and Mr. Hitt is kind of getting at the bigger package of labor mobility, making sure we are getting people to the right labor markets 

in the first place. But there is a daunting task, right, when you go 

from 76 apps to 46 drugs to showing up on time, setting the alarm 

clock in the morning, work ethic is involved. And this is common, 

right, this is what we hear, and that is why we are having this 

hearing. It is a daunting challenge. 

And so, Mr. Hitt, the Federal Government—I mean, and don’t 

limit yourself to what the Federal Government can do, but where 

would you—right, in economics you do efficiency and you aim for 

the low hanging fruit first. Where would you aim our resources to 

SBR002 with DISTILLER

14 

get the biggest bang for the buck in terms of improving this situation? 

Mr. HITT. Well, Chairman Brat, for me, ultimately, the number 

of people in the country feeling disenfranchised because of the 

labor issues that we have go to the American Dream. The American Dream is the belief that your children will do better than you. 

They will always be set up to do better than you. And when you 

lose that vision of that American Dream, and people think that 

they can’t possibly do better than their parents did, and their parents can’t do better, aren’t mobile enough to move to a higher paying job in a better spot, then I think you do get this inertia that 

we have in the country right now. And in middle America, many 

people are stuck. 

From my perspective, I would be incentivizing big business to get 

these people moved. And that, to me, are tax credits, tax breaks, 

maybe on a multiple—you know, to go ahead and move people. If 

you think about it right now, there are people in the country who, 

you know, their houses are still upsidedown in pockets of the country. You know, so the idea of moving from maybe Youngstown to 

Seattle, it is untenable because your house is still $50,000 

upsidedown and you are working two jobs. So these are huge problems, I think. 

I also think, to the problem that Ms. Dime Schmeisser has, I 

think that you are really talking about great education and market 

at the education level K through 12. We need to change the way 

we educate people, and we need to let them see the future of what 

can happen in our job markets. We are rolling through a very 

digitized economy right now, and it is going to move far faster than 

we ever saw the economy moved through the industrial revolution. 

It is going to move in 15 years where the industrial revolution took 

us 35. It is going to move quickly. So we want to let them know 

that through spot education that there are great opportunities coming for them in other areas in other industries. 

So that is where I would start, because I think when you have 

46 applicants where over 50 percent failing a drug test, you have 

a far bigger problem, and to me that goes right back to the American Dream. They need to believe that there is great hope and that 

their future will be better and better. It is in our DNA. It is why 

we are Americans. It is why we originally came here. We all came 

here from somewhere, right? Over 200 years ago. It is in our DNA 

to move. And I think I made the point in my testimony, in my written testimony that we were moving at rates of 22 percent. That is 

almost one in four Americans every year moved. It is almost like 

that sort of gold rush dream, you know, I have got to move for a 

better opportunity. The impacts of this are huge. 

Think about a recession. When you have a recession and you are 

in it, you might be in a recession for 3 years, but when people are 

moving to find that better opportunity, they are picking up GDP 

by going where jobs are instead of just staying stuck in that spot. 

So you actually have—recessions are actually balanced out when 

people are moving. So, to me, mobility is the number one issue we 

have. It is not talked about enough, and I would like to see it be 

at the forefront, and I would like to see these solutions start to be 

SBR002 with DISTILLER

15 

tested and start to be implemented so we can actually get these 

people moving again and get them in better spots and better jobs. 

Chairman BRAT. Great. Thank you much. 

We will circle around to everyone else on the panel with that 

question coming up too, but I want to yield to the Ranking Member. 

Dwight, why don’t you kick it off. 

Mr. EVANS. Thank you, Mr. Chairman. 

Mr. Hitt, I want to go to something that this Committee was conducting a discussion last week and see if you can reconcile this balance. We just held a hearing on millennium entrepreneurship. We 

talked about the gig economy, and we found that many are choosing to work for themselves for many reasons. How do we balance 

the need for encouraging more startup activity with ensuring the 

next generation of workers also consider the skilled workforce? 

Mr. HITT. Yes, I think it is a tough one. You know, we went 

through—you know, unfortunately, we went through a financial 

crisis in 2006, 2007 and 2008, you know, and millennials were 

caught up. I hate to call them millennials, they are just, you know, 

the next generation, young, hardworking Americans. You know, 

they were caught up in a time that was tough for them. Many of 

them went through foreclosures on their homes. Many of them saw 

their parents lose their jobs. Many of them watched some big business get sort of taken out and taken out to pasture a little bit for 

failures that, you know, they had, and so they lost some of their 

faith in big business. So the idea of working for yourself is actually 

a great thing for them. I think it is a natural reaction, human nature to feel that way, right? 

So I think what we need to be doing are simple things to bring 

them back in to big business to help train them so that they are 

actually in a better position to go out and take advantage of the 

gig economy. You know, part of that is making sure that we are 

talking about all the wonderful things that are happening in big 

business, Congressman, you know, that 99 percent of big business 

and small business, you know, they are wonderful actors. You 

know, they are conscious, you know, about their capital’s pursuits. 

And so I would like to see more of that and more discussion of that 

on broader things. 

And then I think from the perspective of startup activity, you 

know, we didn’t incentivize investment and startup activity. I 

mean, we are involved in that. You know, we are involved in the 

venture world in a very big way. And, you know, from our perspective, you know, there is great opportunity in that world, and we 

want to attract millennials into that space as well. So we have— 

sort of have both these spaces that we want to, you know, be 

incentivizing them to jump in and get into the labor force. 

Mr. EVANS. Mr. Greene, me—can you speak about the important training programs with a chronic unemployed that can help 

aid the growth of our economy? 

Mr. GREENE. So the stigma associated with technical training 

in place of a 4-year degree will be a difficult one to erase in today’s 

youth. However, the growing cost of postsecondary education, 

young adults are beginning to recognize that the technical careers 

can play in reducing or even preventing student loan debt and 

SBR002 with DISTILLER

16 

starting them on an earlier path to financial independence. Successful training programs need to take advantage of their graduates and alumni and use peer reviews to entice other young 

adults into the field. Students do not respond well to schools and 

counselors pushing them toward technical training, but they appreciate the experience of their peers in their generation who have 

taken this option and can prove that in a promising career. 

I just think that, you know, these organizations that exist, you 

have to make them more available, make them more known. The 

community partnerships, the not-for-profits, all of that out there, 

you just have to evangelize it better amongst, I guess, the growing 

workforce. 

Mr. EVANS. You used an interesting word. You said ‘‘evangelize.’’ You think we are at that point that we have to do that? 

Mr. GREENE. We have to, and we have to—I say that because, 

you know, you look at how we are communicating as a whole. I 

mean, you know, how are we—the traditional putting an ad in the 

paper for programs or jobs is just, in my opinion, obsolete amongst 

the young folks. They want to see things, or they look for jobs on 

Craigslist, at least in my workforce, you know, which is highly part 

time. So when I say evangelize, yes, of course, evangelize on social 

media, on radio, TV. You know, every time you turn on the TV 

now, you hear one or more programs, but sometimes to the young 

people that translates to debt. 

So I think they have to see the reward to really with the—you 

can’t get instant gratification all the time in this workforce. You 

have to put in the time, and I think that is the balance of what 

millennials don’t see. They want instant gratification, and as you 

asked the question about entrepreneurship, it is the freedom—as 

I talk to them a lot, a lot of times I am connecting young people— 

in my season, I am connecting young people a lot of times to older 

folks, which is kind of an intergenerational vibe, if you will. But 

when you talk to young people and you listen to them, they want 

the freedom of the entrepreneur spirit as opposed to routine. So I 

guess it is nonconformity, and bring them into the workforce to 

know that they have value. 

Mr. EVANS. I yield back the balance of my time. Thank you, Mr. 

Chairman. 

Chairman BRAT. Thank you, Mr. Evans. 

I would like to now yield to my good friend from South Carolina, 

Ralph Norman. 

Mr. NORMAN. Thank you, Chairman Brat. 

I want to thank the panel for taking the time to come today. It 

is valuable to hear your comments. 

I am a contractor and, you know, the challenge that I see for hiring people is if you are 19, have never worked, it is kind of hard 

to get them in the routine. That is a society problem to have people 

work as they come up, but that is an issue now. 

But, Mr. McCreight, we have in our area colleges, technical 

schools. And do you find businesses partnering with them to, one, 

let the millennials know that a welder, a framer, a truck driver 

with a CDL can make 80 to—on up thousand a year? Have you all 

partnered with them? And if not, how do we spur that on? 

SBR002 with DISTILLER

17 

Mr. MCCREIGHT. Yes, we definitely have partnered with them. 

I can remember, you know, maybe 15, 20 years ago, if you had 

openings, you would just send the openings over to the community 

college and then they would send you some applicants, and that 

was how you would hire from them. And it is not like that anymore, because everybody wants to access that pool that is there. 

And so it is almost a cradle-to-career kind of approach. You have 

got to get in there early in high school. 

I think there is a stigma, maybe I will speak to the manufacturing piece, that it is not cool to be in manufacturing. But you are 

exactly right, there are so many great jobs that you don’t have to 

go to college for. And I know States have—in our State of Tennessee, we have promoted that. I know the other southeast States 

have promoted that because of the influx of the automotive jobs 

that we have seen over really the last 25 or 30 years. But we have 

got to do a better job of making it cool to be in manufacturing, and 

you don’t have to go to—you know, even go to community college. 

You can literally be an apprentice right out of high school, come 

in and have a great job and have a great career. 

Mr. NORMAN. I just got off a panel with opioid addictions. 

What—and this is to not any particular person, what is your take 

on beginning to solve that? And how would you—as a business person, how would you start the ball to try to unravel that issue? 

Mr. Hitt, I will start with you. 

Mr. HITT. Well, I think we need programs that, you know, obviously add a mental health element to the hiring and training 

issues that we have. I mean, clearly, you know where I stand on 

this. I mean, you know, you fall into these huge crises in our country when people are feeling disenfranchised. There is a reason we 

have an opioid conflict. It just didn’t pop up. You know, it comes 

from a lack of opportunity and a feeling of disenfranchisement. And 

I think that there is some failed leadership in our business communities. There is probably some failed leadership, you know, overall 

in the country in this entire area. 

You can’t just have people on the coasts being wonderfully prosperous and people around middle America not being prosperous. 

And so I do think this come down to programs that, again, move 

people where the opportunity is and create incentives for opportunities where they do live so we can create better jobs for them 

there. Then you can work on the training element of it, and 

through the training element of it, certainly mental health has to 

be a part of that. 

We don’t do a great job in this country in the mental health area. 

It is an area that we should be focusing on more. If anybody in the 

room has any experience in it, you know, with children or family 

members, you probably understand the frustration, you know, of 

trying to get the appropriate help for people that are, you know, 

addicted to something or depressed or have anxiety disorders. You 

know, these are big issues, you know, and they are not solved with 

a snap of the finger, so real leadership has to come. 

And I think it comes back to incentivizing business to step in and 

work with, you know, both local and State governments and the 

Federal Government to help solve these problems. Get people in 

jobs. The dignity and respect that comes with a job, you know, the 

SBR002 with DISTILLER

18 

ability to go home and actually enjoy your weekend with your family, you know, instead of going to work the second or third job to 

try to make ends meet where you are and you become critically underemployed. I mean, it is a very vicious circle, you know, that is 

there. So that is how I would address it, Congressman. 

Mr. NORMAN. Anybody else want to take a pop at that? 

Mr. GREENE. Sure. I deal with recovering addicts all the time, 

and so, I guess, again, what we have started to do, at least with 

the reentry programs where people have been recently released 

from incarceration, we try to connect those folks with the folks that 

are currently going through a stage in their addiction. Addressing 

it first. I guess, you know, a lot of times in the culture people, have 

to reach their bottom, but if you are trying to address it positively, 

I think you just have to keep in tune with the outreach, understand why, you know, different folks are getting high or seeking to 

get high, and then really connecting them to the multiple choice of 

what happens if you continue to get high. 

There are all types of programs out there, and the ones that are 

successful are the ones that have people that have joined that 

haven’t been forced by their parole officer or by a judge or by a 

priest or by a family member. The most successful programs that 

I work with are the ones that people have hit rock bottom and 

want to make a change. 

And so then when you talk to people that are currently using, 

at least it has been my experience, you just continue to encourage 

them to make better choices, and give them better options out 

there, whether that be in entertainment, horticulture, art, different 

things and different hobbies. 

A lot of times if we talk to, particularly young people, they don’t 

feel that they have a lot of options. There is a lot of depression, and 

I know it personally because I raised a child with depression. So, 

you know, you really have to really have this honest assessment 

and you have to deal with it. You know, you have to deal with it 

directly. 

And again, I guess what we are trying to do, and in a lot of ways 

we have reached some success, is that we connect folks that have 

gone through addiction and are on the other side of it, and we continue to talk to the people that are going through it currently. 

Mr. NORMAN. Great. I am out of time. Thank you so much. 

Chairman BRAT. Thank you, Ralph. 

I would like to yield to Stephanie Murphy of Florida. 

Mrs. MURPHY. Thank you all for being here. I really appreciate 

it. 

And, Mr. McCreight, I appreciate you showing us a sample of 

how virtual reality can be integrated for training. I represent a district in Orlando that is known for being the hub of modeling, simulation, and training, and there are a number of companies there 

that build those machines just—or technology just like the one that 

you showed to train people in the healthcare space, for military 

purposes, and a variety of other jobs. And so I think it is an exciting space that we are probably likely to see more of as we look at 

workforce training. 

But my question, you know, we have held a similar hearing here 

on this Committee where we discussed the possible causes of this 

SBR002 with DISTILLER

19 

persistent skill gap problem, labor force job gap issue, and one idea 

is that schools might not be adequately preparing students with 

the exact skills that they need for specific jobs. And on the other 

side, it appears that there is a guessing game that students have 

to play as far as what jobs might exist. So as they try to figure out 

what to go to school for, they are not quite sure what the demand 

signal on the other side is. 

And so it is suggested there is a communications gap between 

higher ed and industry or educational institutions and industry. 

And, in fact, in 2012, a McKinsey report found that 72 percent of 

higher education institutions believe that graduates are fully prepared for the workforce, and only 42 percent of employers agree. 

So what kinds of things do you think we can do to close this gap, 

better prepare our students, also give them a better sense of what 

the demand signals are from industry? Kind of open question. 

Mr. MCCREIGHT. I will start. I think that, you know, there is, 

to me, there is two skills gaps. There is the technical skills gap, 

which I showed on the forklift of how we would address that, and 

then we also see what we call the soft skill gap or basic skills, and 

it is things that you just would not think you would have to teach 

someone, which is showing up for work on time and not walking 

off a job, or if you are going to be out calling in advance, and things 

that probable many of us were just inherent in maybe the way we 

were raised or a culture. And, you know, so we find that we are 

having to teach that, which is really surprising. As an employer, 

you wouldn’t think you would have to do that. And I do think that 

the K through 12 could address that in some form or manner, and 

whether it is job readiness or how they would do that, rather than 

the employers. 

I think probably most of us have stories of that that we just can’t 

believe that these people don’t understand kind of the basic 101 of 

working. 

Mr. GREENE. I think that public schools can do a better job of 

discussing postsecondary training options, but the better solution is 

creating more opportunity for public and private efforts. Schools 

should have relationships with local training institutions that can 

talk about what students can expect in their programs and what 

kind of positions and salaries they can attain with training. 

We are going to be participating with a program, as I sit here 

and think about it, with 1199C, again, with high school students. 

And so getting them more involved or at least, you know, 4 days 

out of a workweek. And again, you know, in my—again, in my 

workspace in terms of workers, at least caregivers are in a situation where they are in a lot of ways highly unsupervised. 

But when we talk about soft skills too, I think another thing that 

we talk about, again, with young people, a lot of times with the 

seniors, is just general courtesy. A good morning, good afternoon. 

Putting down the cell phones. You know, we have almost gotten to 

a culture, at least in my place, where the cell phones are a big nono in the workplace because people can’t live without them. But 

when you talk to young people, you know, we try to tell them we 

don’t want to talk to the top of your head, we want to talk to your 

face. And it is reinforced in our workforce because, again, we are 

SBR002 with DISTILLER

20 

connecting a lot of times this intergenerational vibe where we are 

putting a young person into a senior’s home. 

And for me, the struggle is twofold. One, there are not a lot of 

people standing in a long line to be a caregiver to help people for 

the low salary that we can offer because of the Medicaid rate. But 

the other part of it is too, a lot of the young people are, I don’t 

want to say entitled so much as uninformed. And the attention 

span of trying to keep them sometimes engaged, because that is— 

it is not my only workforce, I supervise probably four generations 

of folk. And so really, again, just having diversity and inclusion, 

but soft skills training, more intern programs, you know, and really 

making it more attractive for employers like myself to get involved 

with kind of training programs, creating some type of benefit for 

that. 

Mrs. MURPHY. Thank you. And I yield back. 

Chairman BRAT. All right. I get now to yield to my boss, the 

Chairman of the full Committee, Steve Chabot, and thank you very 

much. 

Mr. CHABOT. Thank you very much, Mr. Chairman. 

And I apologize if any of the questions I ask have already been 

asked. I had another hearing going on, which I have to go back to, 

but Small Business Committee is the most important committee in 

Congress so those others can wait. That is my attitude. I know that 

is the others as well. 

The first question I would like to ask is kind of relative to the 

education system. It seems like obviously, you know, parents, at 

least a lot of us, perhaps have encouraged our young folks over the 

years that a 4-year college is absolutely critical nowadays. But in 

reality, obviously, there is a lot of jobs and opportunities out there 

that don’t require a 4-year degree, you know, a 2-year community 

college degree, or vocational degree, or a technical certification of 

some sort or another. 

And if you could, whoever would like to, just kind of address that 

issue and perhaps how we ought to look at that either differently 

or more thoughtfully or just kind of as a society. Are we pushing 

too many of our young people into 4-year liberal arts degrees when 

perhaps there are other alternatives to that? Anybody like to address that? 

Ms. DINE SCHMEISSER. I am going to go ahead and jump in 

so I have a chance to respond. I think a lot of it is about what the 

panel has said today, redefining the American Dream. What does 

it mean to have it all? Because I think have it all now can be a 

home that you can pay for and children you can clothe and food you 

can buy. And there is a housing shortage, but the stigma does start 

with how you are raised, and I think business can do a lot about 

that. 

If you put yourself out in the community and you connect, and— 

like when we got business of the year, I made sure we talked about 

that a lot, so that that is something they can talk about around the 

table, and say, hey, I wonder what they are doing down there, and 

make it seem—make people realize that there is opportunities that 

aren’t 4-year colleges. 

In the educational system. I just had a son graduate. No one 

talked to him about any other choices other than college, and at 

SBR002 with DISTILLER

21 

graduation, the kids that didn’t go to college, they didn’t even announce what their future plans were going to be. And I think we 

could really glorify that and make it seem better by the fact that 

if the Federal Government thinks it is important enough to increase Pell grants, or technical colleges or vocational schools get 

more money, then it must be a really big need. 

And I think when there is a lot said about millennials that is not 

kind, but I do think they go where they are needed. They feel a 

draw to being needed and being part of a bigger picture and being 

part of something that is successful. And I know when we wanted 

to get—when we want more employees, I realized I had to reintroduce ourselves to the community, because the image we had was 

old and dated. And so what we did was ask the employees, what 

is important to you? What is important to your kids? Where should 

we be? 

We pay our employees to volunteer in the community. People see 

that and they say, wow, I would like to be part of that. And I think 

that same energy can be put towards vocational schools and technical colleges or, you know, really on-the-job training is huge. 

There is nothing that can be offered at a vocational school that we 

need, other than like forklift training. Everything we teach is on 

the job. But I would love it if somebody in K through 12 would 

have a life skills class so they know how to balance a checkbook 

or get to work on time and realize they have to bring a lunch with 

them. No one is going to give them lunch at work. 

There is so many things that they really don’t know, and I can 

say that without, you know, being smug because my son is one of 

them. The first day he showed up for summer internship, he didn’t 

understand why there wasn’t a lunch for him just because everywhere else he had worked had been so generous and things like 

that. So I think there is a lot of things they don’t know. 

And I agree, it is not because they are entitled, they are just 

completely uninformed. And I think a lot of it comes from the support they get at home, what they see both—maybe both parents are 

super busy, and they don’t have time to show them that. So as 

business leaders and elected officials, we have to show them what 

is important in life and what matters and what will get them recognition. 

Mr. CHABOT. Thank you very much. 

Mr. Chairman, I will yield back my time. Thank you. 

Chairman BRAT. Well, I think we couldn’t have had a better 

panel today. I appreciate just—we covered, I think, the full spectrum of all the issues. And the closing, that was fantastic testimony you just gave that I think will give us plenty to think about 

to move forward on. And that is why we do hold these panels. We 

do seek your input. I am from the business community, and we are 

going to prepare another round and zoom in until we hit the target 

and solve the problem. 

And so I want to again thank all of our panelists today for coming in and sharing your time and expertise. 

I ask unanimous consent that members have 5 legislative days 

to submit statements and supporting materials for the record. 

Without objection, so ordered. 

This hearing is now adjourned. And thank you again very much. 

SBR002 with DISTILLER

22 

[Whereupon, at 11:07 a.m., the subcommittee was adjourned.] 

SBR002 with DISTILLER

23 

A P P E N D I X 

SBR002 with DISTILLER


Insert offset folio 23 here 30502.001

Testimony 

Todd Hitt, U.S. House Committee on Small Business 

June 14,2018 

Introduction. 

Chairman Chabot, Ranking Member Velazquez, Congressman Brat, and other members of the 

committee: thank you for the opportunity to be here this morning. 

My name is Todd Hitt and I'm the founder and CEO of Kidder Capital, a private equity firm 

based in the Washington, DC area. I formed Kidder Capital 10 years ago, at the beginning of the 

financial crisis. It was, perhaps, not the most opportune time to start a company, but we have been 

successful. Today Kidder manages a variety of investments across established and emerging asset 

classes, including private equity, real estate, construction, venture, credit, energy, and hospitality. We're 

one of the fastest growing private equity firms in the region and we've almost doubled our workforce in 

the last year. 

Kidder uses my private capital, along with capital from like-minded co-investors, to initiate and 

accelerate innovative business ideas. The entrepreneurs we invest in are building our future economy. In 

the process, they are transforming core industries like construction and are revitalizing entire communities 

and creating jobs. 

My family has a long, entrepreneurial history in northern Virginia. My grandparents, Warren 

and Myrtle, founded Hitt Contracting in the 1 930s out of their home in Arlington. They soon had six 

employees and grew throughout World War II even while facing lgbor shortgges.' By the 1950s my 

grandparents had 60 employees. 

By 2000, the company my grandparents founded employed more than 500 people, moving it 

beyond the standard definition of a "small business." My grandfather passed away in 1 978, but my 

grandmother lived to see this achievement. Today, the company is in 11 U.S. cities and employs more 

than 1,000 individuals. 

Through my work across multiple business sectors and across the country, it's become clear to me 

over the last few years that the United States is facing a critical labor shortage that will severely 

constrain our nation's economy if the private and public sectors do not work together to address it. There 

1 Hltt Controc:flng web$lte, ''T!mellne oi Tradition." Acc:enible at: http://bjtt.som/tJme!Jne.trqdjtion 

1 
24 

SBR002 with DISTILLER


Insert offset folio 24 here 30502.002

are pockets in the United States that have few jobs and too many workers. But there ore far more places 

with many jobs and too few workers. 

I've witnessed the devastating effects o labor shortage con have on a business. Quite simply, it 

means o company cannot grow. Turning down work is the last thing an entrepreneur wants to do, but 

when you don't hove the labor you need, It's one of the only options. In the construction industry, at least, 

a business con try to delay work or lengthen project timelines, but if you're in agriculture and you're 

facing a labor shortage, crops die. If you're in retail or hospitality, long lines and stropped customer 

service specialists means customers will leave your store or hotel and go somewhere else. Or they'll shop 

online. Businesses of all sizes suffer when labor is scarce, but our Main Streets ore impacted the most 

severely. 

My goal today is to offer practical solutions about how we can move workers to where jobs exist 

today. 

Discussion Of The U.S. Labor Shortage. 

There's little question the notion as a whole faces o labor shortage. In April, there were 6.7 

million jobs open in the United States. It was the first time since 2000 that the number of jobs open 

exceeded the number of unemployed workers. There were nearly a quarter of a million jobs unfilled in 

the construction industry and more than 450,000 in the manufacturing sector. The numbers are even more 

staggering in the leisure and hospitality industry-with 940,000 available jobs-and for education and 

health services, where there are nearly 1.27 million jobs left unfilled. 2 

American employers cannot find workers. Below is a graphic that shows the ratio of unemployed 

individuals over time. 3 Two years after the Great Recession was over there were four unemployed 

workers for every U.S. job open. Today it's less than a one-to-one ratio. You'd better hope that one 

person has the skill set you need. 

1 U.S. 8vreou of labor Statistics, Job Openings and labor Turnover Summary, JuneS, 2018. Accessible at 

bttps,(/www b!s goy/news relegselio!ts.tOJ btm 3 U.S Sureau of Labor Statistics, Number of Unemployed Penons Per Job Opening, Seosonolly Adiusted, April 2018. Accessible at 

https•//www bls goy/chgrts/job~openjogs-gnd-!gbor-turnoverlunemp•per-lob-ooenjoo.btm# 

2 
25 

SBR002 with DISTILLER


Insert offset folio 25 here 30502.003

local and national newspapers are filled with stories about employers, particularly small 

employers, searching for workers. I know there are members of this committee from Pennsylvania. Todd 

Taylor, vice president of postsecondary education at Central Pennsylvania Institute of Science and 

Technology, recently told the Centre Daily Times, "[T]here has never been a more significant shortage of 

skilled workforce, skilled technicians."• 

NatureFresh, a Canadian company that was planning to expand its existing workforce in Ohio 

last year, put those plans on hold because the company couldn't find enough workers. That's a 

multinational company that wants to expand in the United States, but can't because we don't have the 

labor. Those jobs will go elsewhere. The company's president, Peter Quiring, said when he goes to trade 

shows-and he goes to a lot of them-the labor shortage is "pretty much the only topic of conversation 

today." Quiring also noted, "It's not a NatureFresh problem, it's not an Ohio problem ... [It's] a coast-to· 

coast, border-to-border problem.''> 

I could not agree more. The construction, manufacturing, retail, and energy firms that Kiddar 

Capital has worked with certainly have experienced this problem, and It definitely Is an issue that the 

CEOs and investors I know talk about. 

The worker shortage affects oil regions of the country, and all types of cities. Below are graphics 

from The Wall Street Journal showing the divergence between the prime age population ond the number 

3 
26 

SBR002 with DISTILLER


Insert offset folio 26 here 30502.004

of workers in Iorge cities, in mid-sized cities, in suburbs, and in rural America.• From rural areas and small 

towns to urban centers, there is a gap between jobs and the prime age working population. 

As noted above, these shortages hit small businesses the hardest. As experienced candidates for 

office, you're familiar with the issue of name 10. Well-known candidates have an Instant advantage In 

elections. The some principle applies to hiring workers. When you're smaller, a potential employee is less 

likely to know your nome or be familiar with your reputation. Many people perceive working for a small 

business, especially a startup, as riskier. Main Street employers also hove a much harder time absorbing 

the burdens of the wage inflation that goes along with the type of severe labor shortage we face today. 

Help Wanted 

Suburban al'l!lls nMr big cities 

M!d·slzed ctias 

There are economists who will argue todoy's shortage could be solved if employers simply 

offered higher wages, but higher wages can't attract workers who simply aren't there. 

According to the Notional Federation of Independent Business, in April of this year 22 percent of 

small businesses said finding qualified workers was their "single most important business problem." That 

4 
27 

SBR002 with DISTILLER


Insert offset folio 27 here 30502.005

was more than the percentage who said they were concerned about taxes ( 1 8 percent) or regulations 

( 1 3 percent).' 

About 35 percent of small employers reported that there were positions they weren't able to fill, 

even though a net 33 percent of small employers-the highest percentage since November 200Q-soid 

they hod raised compensation. • In a separate report, the NFIB sold 35 percent of small business owners 

reported raising compensation In May, the highest In monthly records going bock to 1986.9 

Additionally, according to a recent survey by the jobs platform Snag, this summer more seasonal 

worker employers are willing to stretch to the max to get the labor they need. lost year, only 12 percent 

of employers said they were willing to offer the highest wage they could possibly afford. That number 

nearly quadrupled this year and is now at 46 percent. Three quarters of seasonal worker employers soy 

they will pay at least $11 an hour, compared to lost year when only half said they were willing to pay 

that amount. 1 o 

Anecdotally, with news stories about the labor shortage, there's recently been o proliferation of 

articles about industries offering major hiring bonuses and incentives to attract workers in all industries. 

The Wall Street Journal recently examined the perks (besides higher pay) that firms ore using to 

try to attract plumbers. The package of benefits rivals Facebook's: a firm in Minnesota has built on 

arcade. A company in Manassas, VA is giving biweekly massages. A Kansas company has offered 

$5,000 signing bonuses and one In Colorado has Installed o croft beer tap. 

The Journal noted the annual median pay for plumbers, plpefitters, and steamfitters was nearly 

$53,000 a year In 2017, but also sold It "Isn't uncommon to see jobs advertised for for higher wages, 

from $70,000 up to six figures."" 

There's o huge difference between raising wages and benefits and wage Inflation. Higher 

wages ore good-and we're finally starting to see evidence of that-but If we do not address our labor 

7 Notional Federation of Independent Business, April 2018 Smoll BvsineS$ Optimism Index. Accessible at bttQl·/!www nfjb comhprveys/small~ 

bus!nen~economjc-trends/ 

6 Sho Chandra, "A1 U.S. Jobs Go Begging, Forget Those Monthly Goins of 200,000," Bloomberg, May 31, 2018. Accessible at 

https·//www bloomberg.com /news/articles /201 8-05-3 l las-u-s-lobs-gO=beggjng-forget-those-mootbly-ggjns-of-200-000 9 Viru:e Golle, "Shore of U.S. Small Bvslnesses Boosting Compen5otion Hih Record," Bloomberg, May 31, 2018. Accessible at 

https://news.bloomberglgw com/dally-labor-reportfshgre-of-us-smg!!-busineues-boosting-compemgt!on-hlts-record 10 Snag, Preu Release, "New Report Finds Summer Hiring Strongest ln a Decode," May 23, 2018. Accesslble at 

http;: //www prnewswire com/news-releqset!new-report-fjnds-summer-birjna-strongest-jn-g-decgde-emp!oyers-turning-to-bentfjts-qnd-wggesto-s:omptte-for-workers-300653472 btm! 

11 Jennifer lcvltx, "Perks for Plumbers: Hawaiian Vacot!ons, Croft Beer and 'a Lot of Zen,"' The Wall Street Journal, May 23, 2018. Accessible at 

bttps· //www wsj com /grtjdes /perks-for-p!umbers-hgwgHgn-vgcgtiom-craft-beer-god-g-!ot-of-zen- 1 527087328 

5 
28 

SBR002 with DISTILLER


Insert offset folio 28 here 30502.006

shortage now, things will soon get out of control and wage inflation will continue to drive up costs for 

, everything from housing to food. 

Our labor shortage has also already begun to constrain job growth. Moody's Analytics' Mark 

Zondi recently said job growth would have been even higher in May if not for the labor shortage. Zandi 

noted, "Job growth is constrained for the first time in a decade." 12 

There are several factors that contribute to the notion's labor shortage: the vast Baby Boomer 

generation exiting the workforce, declining U.S. birth rates, the opioid epidemic that is gripping our 

country, and the gop between skills and employer needs, which I know the committee addressed at a 

hearing in February. 

Today, I will address the problem of labor mobility. 

An Overview Of U.S. Labor Mobility. 

If you remember one statistic from my remarks today, I wont it to be this: in 2017, fewer 

Americans moved than any year in the last 50 yeors. 13 The willingness to strike out for greener 

postures-or golden ones, if you're talking about the move westward to California-used to be In 

Americans' DNA. Now, as Citylab's Richard Florida has pointed out, Canadians ore more likely than 

Americans to move. Europeans aren't for behind. If you're from Denmark or Finland, you're almost as 

likely as an American to move,14 

The U.S. mover rate is now 11 percent, 15 down from 18.6 percent in 1987 and from even higher 

rates in the 1950s, 60s, and 70s.•• Our rate today is at an historic low. 

Homeowners always hove been less likely to move, but the rate of homeowner movers has 

declined since the late 1980s and is now around just five percent. The percentage of renters willing to 

12 Steve leVine, Acvte Job Shortage Is Hitting Not!onol Hiring Nvmben," Axios, May 31,201 B. Accessible at httptl/www gxjos cpmltbe~Jobs~ 

sOOrtaoe-Js.muting·skjlls-shortgge::gglns-ogtjona!-soole=6b3bc543- J el 2-4b38-gd37 -94fgedb5956f.btml 13 Alec MacGillis, "Why Do Americans Stay When Their Town Hos No Future?'' Bloomberg, May 23,2018. Acceuible at 

https• I /www.b!oomberg com /news/fegtures /2018-05-23 /why-dQ:::gmerkgnNtay-when-thefr-town-bas-no-future 14 Richard Florida, "America the Stuck," Citylab, Feb. 2,2017. Ae<:euible at bttps.f/www.dtylab.com/egujty/2017/02&mericgn-mobllity-bosdec!ined /51 431 0 I 15 U.S. Census Bureau, Press Release, "Declining Mover Rate Driven by Renters, Census Svreau Reports.'' Nov. 15, 2017. Accenlble at 

Https://www.Cemm.Gov (Newsroom /Press~Rei¢Qses/20 17 /Mover-Rqtes Htm! 16 U.S. Census Bureav, Current Popvk:ttion Survey, Historical Mlgration/Geographlc Mobility Tables, Table A-1. Annual Geographical Mobility 

Rates, by Type of Movement: 1948·2017. Accessible at bttp!·llwww s;emmgoy/dgtghgblts!tjmt-serjes/demo/ge9QraohlGmobjljty/b!Jt9ridrtm! 

6 
29 

SBR002 with DISTILLER


Insert offset folio 29 here 30502.007

move hos declined even more sharply, from about 35 percent 30 years ogo to just 21 percent today. 

That rote also is now at on historic low.'7 

Even when they're young, without mortgages and kids already in o school system, Americans ore 

moving less: 

• For 18- to 24-yeor-olds, 45.2 percent moved in 2015, down from 48 percent in 2010. 

• Among 25- to 29-yeor-olds, 61.2 percent moved in 2015, down from 65.5 percent in 2010. 

• For 30- to 34-yeor-olds, 52.5 percent moved in 2015, while 57.0 percent moved in 201 O.'s 

Across the board, Americans ore less likely to move from state to stole. In the early 1 990s, 2.7 

percent of the population moved too new state. Today tho! figure is 1.5 percent.19 

Percent Of Renters, Homeowners Who Move 

151 2017. Acoouible at 

7 
30 

SBR002 with DISTILLER


Insert offset folio 30 here 30502.008

Instead of moving in search of a new job, today's out of work Americans are more likely to drop 

out of the workforce. Nick Bunker from the Washington Center for Equitable Growth identified this trend 

about three years ago. Bunker noted mobility used to be the "key way people responded to losing a 

job." But today, according to research by Andrew Foote of the U.S. Census Bureau and Michel Grosz and 

Ann Huff Stevens of the University of California-Davis, workers today are twice as likely to exit the labor 

force as they were before the Great Recession. Bunker concluded, "Moving is still the largest response to 

being laid off, but it has become increasingly less important."20 

Our declining mobility rate has a profound effect on the U.S. economy. As Yale Law School's 

David Schleicher explains: 

"Economic growth does not automatically occur when there are new innovations, nor is 

it necessarily shared by large parts of the population. Instead, innovation creates the 

possibility of new economic activity and employment. But we need to change where 

and how we live in order to capture these gains." 

Schleicher says the result of declining labor mobility "is a misallocation of labor and capital, and 

lower output levels.'' He argues this problem also affects the federal government's ability to help those in 

need. Schleicher explains: 

"Major parts of federal policy work less well ••• Monetary policy is harder to execute 

well without mobility, as unemployment and inflation rates differ substantially across 

the country. And federal safety-net spending is less efficacious, as people in worse 

job markets require more of it. These, too, have effects on output levels, and may 

even worsen productivity growth indirectly."21 

Schleicher notes that University of California at Berkeley economist Enrico Moretti and Chang-Tai 

Hsieh from the University of Chicago have estimated the lost output from workers not moving is equal to 

roughly 1 3.5 percent of GDP.» 

10 Nidc Bunker, "The Consequences and Causes Of Declining Geographic" Mobility in the United States," Woshlngt'on Center for Equitable 

Growth, Nov. 18, 2015. Acceu!b!e ot http•//eguitablegrowth.org/eaultgbloglthe~conseguences-gnd~cguses.of-dedining-geographic-mobl!!tyln-the-unlted-stgtes I 21 David Sehlekher, "Getting People Where the Jobs Are," Democracy, Fol12016. Accessible at 

bttps·/ldemocrgcylourog! orq /mgggzine/42 /gettjng-peop!e:where-the=jobs-gre I 

22jbid. 

8 
31 

SBR002 with DISTILLER


Insert offset folio 31 here 30502.009

Moretti also has connected the decline in labor mobility to increased income inequality. By age 

30, high school graduates are about half as likely to move from the state of their birth as college 

graduates.23 

Writing in National Affairs in 2014, Eli Lehrer and Lori Sanders of the R Street Institute also tied 

geographic mobility with income inequality. Lehrer and Sanders said, "This decline in Americans' 

geographic mobility has correlated with a well-documented 40-year trend of falling income mobility. 

While this correlation does not, by itself, prove a causal link, the evidence that geographic mobility can 

mitigate poverty is robust."'4 

Income and education, of course, are not the only reasons for declining labor mobility. 

Unaffordable housing costs in some of the nation's largest cities make it difficult for many 

Americans to ever conceive of moving to San Francisco, Seattle, and Washington, DC. Other families are 

in homes where their mortgages remain underwater even though we are almost a decade past the 

housing crisis. New data released in May 20 1 8 indicate nine percent of homeowners are still underwater 

on their mortgage.25 

Emotional ties are another reason. A decade ago, Pew Research Center asked Americans who 

had stayed in their hometowns and states why they stayed put. Family was the most significant reason. 

Americans who have never left their hometowns have a greater number of extended family members 

who Jive within an hour's drive of them than do Americans who no longer live in their hometowns-a 

median of nearly eight family members versus about three, Pew found. When given a list of reasons why 

they have not left their hometown, 74 percent of respondents cited the ''tug of family ties." Only 40 

percent cited a job or business opportunity as the reason they stayed. 

Family bonds are strong, that is certain. It's hard to leave a place where you have an immediate 

support system, especially if it's childcare during the workweek or even on the weekends. 

However, the Pew survey also asked Americans who had moved why they did so. The most 

frequently cited reason was a jab or business opportunity.26 That indicates that, when the opportunity is 

23 Enrico Moretti, Op~Ed, ''What Workers lose by Staying Put/' The Wall Street Jovrnal, May 26, 2012. Acceulble at 

https· I lwww wsi com /grtichu/SBJ 90014 2405270230361 0504577420701942867 41 4 24 Ell Lehrer and lor! Sanders, "Moving to Work," National Affairs, Winter 2014. Accessible ot 

https·f/www.notlona!gffa!rgom/publlcgtjons/defqil/mov!nq~tO:=WOrk 

15 Zil!ow, "Negative Equity Dip$ Below 10 Percent for First Time Since the Bottom of the Market," May 30,2018. Accessible at 

bttos• I /www zjllow com/resegrch/neggtive-eoujty-20080/ 

16 Pew Research Center( "Who Movesf Who Stays Put? Where's Home~" Dee. 29, 2008. Accessible at 

htto· //www ptw$Oclgltumds.org lfilts /20 J 0 /J 0 /Moyers-gnd-Sto yers pdf 

9 
32 

SBR002 with DISTILLER


Insert offset folio 32 here 30502.010

good enough, and if businesses and government support them, Americans would be willing ta cut regional 

ties and move for a job. 

We just need to make things a little easier for them. 

Solutions To Our Labor Mobility Crisis. 

Businesses clearly have a role when it comes to encouraging mobility in the workforce. It's our job 

to attract talent with fair wages, family-sustaining benefits, and the promise of a stable job. I believe this 

crisis is so profound, however, that it is time for government action as well. It's imperative that local, state, 

and federal officials work in tandem with American job creators. 

There is precedent, starting with the Homestead Act in the mid-19th century, far federal action 

that helps move workers to where the jobs are or to where their labor is needed. The Moving To Work 

program, which was championed by the late Jack Kemp when he was in charge of the U.S. Department 

of Housing and Urban Development, helped disadvantaged families in crime-ridden areas move. As Eli 

Lehrer and Lori Sanders pointed out in National Affairs, the centrist Brookings Institution called Moving to 

Work a 11Striking11 success.27 

The first solution I hope you will consider is to reinstitute the tax deduction individuals can receive 

for work-related moving expenses. I was a vocal supporter of the Tax Cuts and Jobs Act-it was an 

incredibly important piece of legislation for small businesses-but I believe doing away with that 

deduction was a mistake. If there's going to be a second piece of tax legislation this year, I encourage 

you to revive this important piece of tax policy. 

Next, I encourage you to explore: 

Mobility Incentives. 

As each of you know, when you tax something, you generally get less of it. When you incentivize 

it, you get more. As we've discussed, there are many factors that, combined, keep Americans stuck where 

they are. Mobility incentives will help unstick our workers. 

27 Ell Lehrer and Lori Sanders, "Moving to Work," Notional Affairs, Winter 2.014, Accessible at 

httpt:/ /www ngtjono!gffgjrs.s:cm /pub!icgtjons !detgil/mgyjogwfo·work 

10 
33 

SBR002 with DISTILLER


Insert offset folio 33 here 30502.011

Mobility grants and incentives ore on ideo championed by Enrico Moretti and others. One way 

to pay for these grants is to let unemployed individuals collect their state and federal unemployment 

benefits upfront if they ore using them to move to another location in order to toke a job. 

The U.S. Labor Deportment executed a small-scale mobility grant program in the 1970s. The Job 

Search and Relocation Assistance Program involved 40 different unemployment offices across several 

southern states. Different offices offered different types of assistance, ranging from simply providing 

information about jobs to actually giving individuals grants to toke jobs in other places. A 1981 analysis 

of the program found individuals with less education took advantage of relocation assistance more often 

than more highly-educated individuals did. Additionally, wages for those who relocated through the 

program also were higher.28 

Local, state, and federal levels of government provide tax incentives to businesses to provide 

training to workers. Similar incentives should be given to employers who spend capitol to relocate 

workers. For example, you could offer a deduction or credit to a firm that helps a prospective employee 

sell a home for which the mortgage is underwater. 

Next, Congress must ... 

Harmonize Rules For Public Assistance. 

In addition to providing mobility incentives, I encourage you to examine how you might 

harmonize the rules and requirements for public assistance across states and localities. In the National 

Affairs article mentioned earlier, Lehrer and Sanders note: 

• Differing state eligibility requirements for Medicaid and other health insurance programs, and for 

the Supplemental Nutrition Assistance Program, mean that some low-income individuals will lose 

health coverage if they move; and 

While Section 8 rental-housing vouchers promote mobility within metropolitan areas, the long waiting 

lists in most areas ore a strong disincentive against relocotion.29 

As illustrated, less-educated and lower income Americans ore less likely to leave cities that ore 

struggling economically. One reason is fear of losing the public benefits that ore keeping their family 

28 ibid. 

~ ... ibid. 

11 
34 

SBR002 with DISTILLER


Insert offset folio 34 here 30502.012

afloat today. Getting more Americans bock into the workforce and off public assistance will require the 

federal government to streamline rules for federal welfare programs. 

Finally, in your work with your colleagues in state and local government I hope you will ... 

Encourage Housing Policy Reforms. 

In The Atlantic last fall, Alana Semuels pointed out that states like Texas, which have less strict 

zoning laws, have high in-migration rates. According to Semuels, Texas added 500,000 residents 

between 2015 and 2016, the highest growth rate in the nation. Semuels also noted Enrico Moretti and 

Chang-Tal Hsieh, mentioned earlier, have found reducing housing and land use regulations in San 

Francisco, New York, and San Jose to the level of regulation in the average U.S. city would increase GDP 

by 9.5 percent.30 

It's not only urban areas that struggle to provide housing for new workers. In a May 31 article, 

The Wall Street Journal's Shayndi Raice said, "Fewer homes are being built per household than at almost 

any time in U.S. history, and it is even worse in rural communities."31 Raice found that in Platte County, 

Nebraska, there are around 990 jobs available but only 65 homes for sale. Housing prices in Nebraska 

are growing so rapidly that the state is considering a grant program that will give incentives for 

homebuilders to build. 

With more construction, of course, comes more jobs, and the state already is having trouble 

filling positions that are open. 

It's not a vicious cycle--clearly this problem is a better one to have than high unemploymentbut it Is a major problem and, If left unsolved, will hove major romlflcotlons for the U.S. economy, 

including slower growth; particularly for small businesses. It also will result in expanding companies taking 

their jobs to countries where labor is more plentiful. 

Conclusion. 

I want to thank you again for the opportunity to testify. I believe that the growing labor 

shortage is the central issue holding back the U.S. economy today. The lack of labor mobility clearly 

Jo Alana Semuels, ''The Barriers Stopping Poor People from Moving to Better Jobs," Thft Atlantic, Oct. 1 2, 2017. Aceeulble at 

htfpid/www tbtqtlgntk com/business /prclljye/20 1 7 I 1 0 /gepgrgph!s~mobWty-gncHousJng /542439 I 

Jl Shoyndi RCJ1Ce1 "Rurol Amerleo Hos Jobs. Now It JtJst Need~ Housing," The Wall Street Journal, May 31, 2018. Accessible at 

bttos•//www wsj COJn lamp /artjcJesfsoordty~of~bousjng~Jn.rurgJ:amerj-ca~driyeswwO{ktf~$bO(fOge,.. 1527672602 

12 
35 

SBR002 with DISTILLER


Insert offset folio 35 here 30502.013

harms small businesses more than it does large ones and it hurts low-income individuals more than it does 

high-income. 

This issue is one that should concern Republicans and Democrats alike, regardless of the region 

they represent, and it's one we must work together to tackle in order to break free from historically low 

annual growth rates we've experienced over the last two decodes. I hope you will consider the solutions 

I've outlined here. 

Thank you. 

13 
36 

SBR002 with DISTILLER


Insert offset folio 36 here 30502.014

American Staffing Association 

Sout!: Wast1mgton Street, Swte 200 • i\lexandna, VA 22314-367b 

703 7b12fl20 

703,2532053 lax 

orner1canstaft>ng net 

Shrinking the Skills Gap: Solutions to the Small Business 

Workforce Shortage 

Statement by 

Kelly McCreight 

President and CEO, Hamilton-Ryker IT Solutions 

Nashville, TN 

Bifore the 

United States House of Representatives 

Small Business Committee 

Subcommittee on Economic Growth, Tax, and Capital Access 

June 14, 2018 
37 

SBR002 with DISTILLER


Insert offset folio 37 here 30502.015

Shrinking the Skills Gap: Solutions to the Small Business Workforce Shortage- Page 2 

Good morning, my name is Kelly McCreight and I am the chief executive officer of 

Hamilton-Ryker and current chairman of the American Staffing Association (ASA). It is my 

privilege to represent both organizations this morning. 

Founded in 1971, Hamilton-Ryker is a total workforce solution and industry leader for 

the provision of industrial, administrative, and information technology staffing, as well as 

recruiting, management consulting, and information technology solutions. Headquartered in 

Nashville, TN, Hamilton-Ryker has offices in 35locations across the U.S. For 45 years we 

have helped thousands of people find great jobs and great careers while providing our 

customers with a staffing solution concentrating on manufacturing, distribution, clerical, and 

skilled trade disciplines. 

ASA is a national trade association that has been the voice of the U.S. staffing industry 

for more than 50 years, promoting the interests of the industry and flexible employment 

opportunities through legal and legislative advocacy, public relations, education, and the 

establishment of high standards of ethical conduct. ASA strongly supports policies thathelp 

America's workers and is working closely with the Department of Labor and other federal 

agencies on the development of a new and expanded apprenticeship program. 

The staffing industry employs more than three million employees per day and more 

than 15 million each year. Staffing firms recruit and hire their employees and assign them to 

businesses to assist in special work situations such as employee absences, skill shortages, and 

seasonal workloads, or to perform special assignments or projects. Employees work in virtually 

every skill level and job category, including industrial labor, office support, engineering, IT, 

legal, accounting, and health care. 
38 

SBR002 with DISTILLER


Insert offset folio 38 here 30502.016

Shrinking the Skills Gap: Solutions to the Small Business Workforce Shortage- Page 3 

Hamilton-Ryker continuously strives to offer solutions for developing skilled workers 

to our clients, which is why I am so pleased to take part in this morning's hearing, "Shrinking 

the Skills Gap: Solutions to the Small Business Workforce Shortage." 

Most everyone is aware of the latest reports highlighting the current situation in the 

workforce. Basically, there are more jobs than people. We see that firsthand in almost all of 

our markets-we're in a lot of small towns in Tennessee, Mississippi, and Kentucky, as well as 

in larger cities like Houston and Nashville. 

With the economy at full employment, we're taking measures to "upskill" the existing 

workforce-for instance, by taking workers who may have a certain skill set and providing 

them training to allow them to be promoted or move into another position at a higher wage 

rate. Additionally, we have instituted "soft skill" orientations that address issues like conflict 

resolution, workplace violence, and even basic workplace practices such as on-time arrival to 

work, call-in procedures, and how to deal with differing workplace cultures. 

This morning, I want to highlight specific measures our company is taking in Tupelo, 

MS, in order to assess skills and train workers for one of our manufacturing clients. Last year, 

our company partnered with IVR Train, an offshoot company from Tennessee Tech 

University that develops virtual reality training for manufacturers. 

Virtual reality (VR) is an interactive, computer-generated experience taking place 

within a simulated environment that incorporates auditory, visual, and other types of sensozy 

feedback. 
39 

SBR002 with DISTILLER


Insert offset folio 39 here 30502.017

Shrinking the Skills Gap: Solutions to the Small Business Workforce Shortagt-'- Page 4 

Current VR technology most commonly uses virtual reality headsets or multi-projected 

environments, sometimes in combination with physical environments or props, to generate 

realistic images, sounds, and other sensations that simulate a user's physical presence in a 

virtual or imaginary environment. A person using virtual reality equipment is able to "look 

around" the artificial world, move around in it, and interact with virtual features or items. 

Most people are aware-especially if you have teenage children-of virtual reality in the 

gaming environment; however, VR has many practical benefits-especially in the medical and 

manufacturing industries. 

In Tupelo, we were specifically interested in how VR could assist us in recruiting, 

testing, and training for forklift drivers. We purchased a VR forklift and installed it in our 

office in early January. The VR forklift has eight assessments that test a vari~ty of forklift skills 

from beginner to advanced. Prior to purchasing the VR forklift, we would interview our 

applicants and then send them to our client for testing on their physical machine. 

We are now better able to assess applicants' skills using VR prior to sending them to 

our clients-resulting in a 70% pass rate for our applicants versus less than 50% for 2017. This 

summer we are implementing a training program for those workers who may have had 

previous forklift experience but need to upgrade their skills before being placed at client sites. 

Hamilton-Ryker is one of the first staffing companies using VR to test and train its 

workers-we see the value in using technology to upskill our workers and intend to further 

this program in many of our other markets. 
40 

SBR002 with DISTILLER


Insert offset folio 40 here 30502.018

Shrinking the Skills Gap: Solutions to the Small Business Workforce Shortage- Page 5 

I've included a short video that will give the committee a better understanding of how 

the VR forklift operates. 

This is just one of many examples of what our company and other members of the 

American Staffing Association are doing to train workers for tomorrow's jobs-and help close 

the skills gap. 

Thank you for your time this morning. 
41 

SBR002 with DISTILLER


Insert offset folio 41 here 30502.019

TESTIMONY OF 

ANGELA DINE SCHMEISSER 

PRESIDENT & CEO 

ST. MARYS FOUNDRY, INC.- ST. MARYS, OHIO 

BEFORE THE 

U.S. HOUSE OF REPRESENTATIVES 

COMMITTEE ON SMALL BUSINESS 

HEARING ON 

"SHRINKING THE SKILLS GAP: 

SOLUTIONS TO THE SMALL BUSINESS WORKFORCE 

SHORTAGE" 

JUNE 14, 2018 
42 

SBR002 with DISTILLER


Insert offset folio 42 here 30502.020

Good morning, Chairman Chabot, Ranking Member Velazquez, and members of the Committee. 

Thank you for the opportunity to testify at this hearing to discuss the skills gap facing the U.S. 

metalcasting industry and ways to shrink that gap. 

I am Angela Dine Schmeisser, president & CEO of St. Marys Foundry, Inc., located in Saint Marys, 

Ohio, a small town of 8,500 residents and I 00 miles from Columbus, Ohio. I care a lot about 

manufacturing in our country, which is why I'm here today, and it's also why I am proud to be a 

member of our national trade association, the American Foundry Society and serve on the board and as 

President of the Ohio Cast Metals Association. 

Ohio is powered by manufacturing and remains among the top three states for manufacturing 

employment based on the Census Bureau's Annual Survey of Manufacturers. In fact, Ohio 

manufacturing is responsible for 18% of our state's Gross Domestic Product and contributes to the 

quality of life in Ohio by providing over 600,000 jobs for Ohio workers. Ohio is also home to over 

150 metalcasting facilities, the highest concentration ofmetalcasters in the country. 

St. Marys Foundry has been family-owned and operated since 1917 when my great grandfather started 

the foundry. Following a decline in my father's health, I returned to our family business in 1999, and 

then became the 4th generation President/CEO in 2005. Growing up, I spent many hours around the 

foundry and continued my experience through high school and college. 

Metalcasting is one of our nation's oldest and most important industries. It is the most cost-effective 

method to manufacture a shaped metal component. The process consists of pouring molten metal 

(virtually any type of metal) into a mold made of sand, metal or ceramic, to form geometrically 

complex parts. 

St. Marys employs 160 associates and manufactures iron castings ranging from 500 to over 60,000 

pounds for the natural gas compression, pump and valve, municipal water, energy transmission, and 

specialty machinery sectors. [See Attachment A for pictures of just a few of the types of castings our 

foundry produces.] 

We operate an in-house laboratory which provides chemical testing, metallurgical analysis, and sand 

testing to ensure quality throughout the casting process. We have a classroom with proprietary webbased educational materials for job training. We offer profit sharing, health care, paid vacation and 

holidays, and traditional retirement packages. We give back to our employees and their families by 

offering recurring scholarships for those attending any 2- or 4-year college, community college, 

technical school, or university. 

I wish I had a simple answer on how we shrink the shortage of workers in the manufacturing sectorbut quite honestly, I don't. I will talk in a minute about some of the challenges we face recruiting and 

retaining new employees my foundry and others in the metalcasting industry. 

2 
43 

SBR002 with DISTILLER


Insert offset folio 43 here 30502.021

Background on U.S. Metalcasting Industry 

Metal castings are integral to virtually all U.S. manufacturing activities. In fact, castings are used to 

produce 90% of all manufactured durable goods and nearly all manufacturing machinery in the U.S. 

Our industry is composed of 1,956 facilities which produce metal castings made from iron, steel and 

aluminum alloys, for a diversified group of customers which have thousands of applications. The 

American metalcasting industry provides employment for over 200,000 men and women directly and 

supports thousands of other jobs indirectly. The industry supports a payroll of more than $8 billion and 

sales of more than $33 billion annually. Metal casting plants are predominately small businesses, with 

75% of domestic metal casters having fewer than 100 employees and many are still family-owned. 

In addition to being the underpinning of the energy, transportation, aerospace and defense industries, 

countless sectors in the United States depend upon the existence of metal castings, including those 

related to automotive, construction, agriculture, medical supplies, computers, sporting goods, 

plumbing, gas and electrical transmission, renewable energy, water infrastructure and mining. 

Foundries are also the mainstay of national defense. All sectors of the U.S. military are reliant on 

metal castings for jet fighters, ships, tanks, trucks, weapon systems and other vital equipment. Some 

examples of this broad contribution by a single foundry such as St. Marys Foundry would be iron 

castings such as compression cylinders, crossheads and bases for the nation's natural gas pipelines; 

mixing bowls for the melting of chocolate or for breading chicken nuggets; mandrels used for forming 

the nosecones and radomes for fighter jets; muller wheels for pigmentations in finished products; 

bases, blades, and spindles for consumer products ranging from industrial bakeries to personal health 

care; braiding disks for textiles and mesh; hurricane flood protection for our nation's inlets; and dry 

dock capabilities for our naval yards. 

Difficulty Filling Skilled & Unskilled Jobs in the U.S. Metalcasting Industry 

America's labor shortage has reached a record high, with U.S. unemployment rate dropping to an ISyear low of3.8% in May. It's likely that the United States will soon be in a situation where there 

are more job openings than job seekers. Over the next decade, nearly 3.5 million manufacturing jobs 

will likely need to be filled according to a report by Deloitte and the Manufacturing Institute. 

If you gather a group ofmetalcasters and ask them what their biggest challenge is today, you'lllikely 

hear them respond in unison: difficulty in filling job openings and retaining workers. In fact, today, 

more than 80 percent of metal casters report a talent shortage in our industry of both skilled and 

unskilled workers- from entry level, mold makers, maintenance and technician positions, to 

machinists, electricians, patternmakers, and foundry engineers. 

The shortage of workers is both a result of a retiring workforce and overall growth in the economy and 

the manufacturing sector. There are no words that can describe the harm opioids and other drugs'are 

having on our area in rural Ohio on 20-, 30- and 40-year old residents. Couple this with the perception 

or stigma that manufacturing is outdated and legacy work, the shortage of skilled and unskilled 

workers has turned into a perfect storm. It threatens to slow the economy, impede manufacturers' 

ability to deliver on customer demand, burn out their workers, and hurt their bottom line through lost 

potentiaL 

3 
44 

SBR002 with DISTILLER


Insert offset folio 44 here 30502.022

At St. Marys, we are challenged by a local unemployment rate averaging 2.8%. We currently have 16 

job openings for casting finishers, mold maker, core maker, mold assembly, maintenance and general 

labor. These are jobs specific to the foundry industry, but we provide on-the-job training opportunities 

for new employees. Experience is always valued and reflected in starting pay. We work with local law 

enforcement, trade schools, community groups and churches. We held a job fair in January [See 

Attachment B]. We advertised these interview days on our Facebook page, encouraged our employees 

to promote our job openings on social media, and put up several billboards along interstate and local 

routes: In addition, we have an employee referral bonus program. Our job fair resulted in 76 

applicants and 24 hires. Out of those 76 applicants, 46 failed the on-site drug test and six applicants 

didn't follow-up on the interview process. We ended up hiring 24 of the applicants, then eight didn't 

attend the plant orientation, three didn't come for the first day of the work and nine missed enough 

work or stopped showing up that they were terminated. Today out of the 76 applicants, only four 

individuals remain at our facility. 

As you can see from the results of our Job Fair, finding drug-free applicants is a real struggle. 

Typically, only 25 to 30% of prospective employees can pass the drug test. Given the fact we have 

heavy equipment and molten metal in foundries, it is critical that our workers are drug-free. Many of 

our applicants lack basic life skill knowledge about how to be a good employee. They struggle with 

coming to work every day as opposed to most days. 

During our "Month of May Hiring Push" [See Attachment C], we held walk-in interviews every 

Wednesday. We had 10 people apply, we interviewed nine of those individuals, and eight are now 

employed! 

Specific Actions/Policies for Fixing the Skills Gap 

Metalcasters are using a multi-channel approach to attract workers - we will try about anything! Our industry 

trade association, AFS, along with their member companies, like mine, as well as chapter and state metalcasting 

organizations, work diligently to attract potential employees to our industry. We introduce the metalcasting 

process through interactive demonstrations, known as Foundry-In-A-Box, at local elementary, middle schools, 

high schools, science fairs, and other venues. I speak to middle school students about careers at our foundry 

and answer questions about working in manufacturing. 

Thirty-five student metalcasting chapters exist at universities and community colleges across North 

America. Many AFS Chapters provide support to these students, including scholarships. In tum, our 

member companies provide internships for high school and college students to spend summers 

working in our facilities. Foundries are providing in-house training, including apprenticeships for our 

more technical positions, and paying for our associates to go to technical classes. 

In addition, foundries are working with their local labor departments for referrals. We host job fairs at 

high schools and technical colleges. We advertise through online services like Indeed and Monster. 

We put billboards along the interstate and prominent streets. Many foundries are revising their hiring 

practices to ensure that they do not rule out any potential good workers, including people who have 

criminal histories and have served time in jail. St. Marys Foundry purchased a nearby vacant church 

4 
45 

SBR002 with DISTILLER


Insert offset folio 45 here 30502.023

to help a local aid organization offer a free meal on Sundays which has expanded to also helping to 

purchase a home or providing housing on a transitional basis for individuals in need of help after jail 

time and/or drug rehabilitation. After three years, we have had one success story of two months of 

employment for an individual. This is after offering individuals often 2-3 times to come back and try 

again. We have a foundry with a great working environment and we still struggle. 

While no single action addresses the entire problem, metal casters are modernizing their operations, 

introducing some robots, and making better use of their existing workforce. Automation still does not 

replace the need for employees in our industry. 

Changing public perceptions to match the realities of U.S. manufacturing is critical to addressing the 

worker shortage in our sector, especially among millennials. Also important is rebuilding a pipeline of 

potential recruits through high school and career technical programs. On the technical skills side, 

there has been a hollowing out of the manufacturing education system over the last 25 to 30 years. 

Many of the [vocational and technical] programs available to high schools around the country have 

been reduced or outright eliminated. Companies have scaled back or eliminated apprenticeship 

programs that were prevalent in the 1940s, '50s and '60s. There is a role for Congress to help 

facilitate the rebuilding of this pipeline of students into manufacturing. 

We appreciate the House passing the bipartisan H.R. 2353, the Strengthening Career and Technical 

Education for the 21st Century Act, also known as the Carl Perkins Career and Technical Education 

bill. This legislation enables resources for secondary schools and community colleges to teach 

manufacturing skills among other technical trades. However, the Senate has not yet acted on a Perkins 

bill, and we hope tbat legislation will pass when it is brought to the Senate floor. The Congress needs 

to fully fund the Carl D. Perkins [Career and Technical Education] Act, which supports technical 

education in high school. 

In addition, metalcasters support efforts to: 

Align career & technical education programs to the needs of the regional, state and local labor 

market; 

Support effective and meaningful collaboration between secondary and postsecondary 

institutions and employers; 

Increase student participation in work-based learning opportunities; and 

Promote the use of industry recognized credentials and other recognized postsecondary 

credentials. 

Conclusion 

Manufacturing is probably the most important industry to the U.S. economy- not just in terms of 

overall GDP but because it's really the engine that drives much of the private sector economy. If we're 

not able to ensure a skilled workforce and a steady supply of skilled workers for manufacturers in this 

country, then they're either going to go out of business or be forced to look elsewhere. 

And, while this skills gap is a complicated challenge, I believe they can be solved by working 

5 
46 

SBR002 with DISTILLER


Insert offset folio 46 here 30502.024

together, but we must tackle our nation's drug problem, and restart and build on the 

vocational/technical programs at the high school and community college levels. 

Thank you again for the opportunity to be here today and share our company's workforce challenges. I 

look forward to your questions. 

6 
47 

SBR002 with DISTILLER


Insert offset folio 47 here 30502.025

-Examples of Iron Castings Produced by St. Marys Foundry 

ST. MARYS TEAM MEMBERS STAND IN FRONT OF A 

27-TON DIFFUSER CASTING WHICH IS NOW PART 

OF THE WORLD'S LARGEST PUMP STATION BUILT IN 

NEW ORLEANS, LA BY THE U.S. ARMY CORPS OF 

ENGINEERS. THE DIFFUSERS CAN HANDLE A 

PUMPING RATE OF 150,000 GALLONS OF WATER 

PER SECOND. 

NI-RESIST 15.000 LB. 

Pf<OPELLER CASTING PLAYS AN 

LSSENTif'L ROlE IN FLOOD 

CONTROL FOR THE HURR!C;\NE 

BA,R!\!ER ON THE COAST 

THIS CASTING IS USED IN POTASH PRODUCTION WHICH IS EXPORTED TO 

CANADA. 

EXAMPLES OF IRON CASTINGS USED TO COMPRESS 

NATURAL GAS ALONG OUR NATION'S PIPELINES. 
48 

SBR002 with DISTILLER


Insert offset folio 48 here 30502.026
49 

SBR002 with DISTILLER


Insert offset folio 49 here 30502.027

uf 

We f3USY. so you qor llll)timc to fill out an applkntinn! Visit us at 405 L South SL SL 

Marys. If you preic'L lnok us up at ®W.Slffi[(mnds:t.&WI! for an onlin<C application. J(>in Our Team! 

9 
50 

SBR002 with DISTILLER


Insert offset folio 50 here 30502.028

Statement of Bryant Greene on behalf of Always Best Care Senior Services, 

Philadelphia, Pennsylvania House Committee on Small Business Subcommittee 

on Economic Growth, Tax, and Capital Access "Small Business Workforce 

Development Needs and How to Address the Skills Gap" 

June 14, 2018 

Chairman Brat, Ranking Member Evans, and distinguished members of the subcommittee, thank you for 

convening today's hearing on Small Business Workforce Development Needs and How to Address the 

Skills Gap. 

My name is Bryant Greene and I am the owner of Always Best Care Senior Services in both Philadelphia, 

Pennsylvania and throughout Delaware. ABC Senior Services is one ofthe nation's leading providers of 

non-medical in-home care, assisted living placement services and skilled home health care. It is an honor 

for me to be here today to testify before the subcommittee and to share my experience as a private 

sector employer working to address the skills gap in my industry. 

Background 

As the owner of ABC Senior Services, I have more than 25 years of day to day operations experience, 

which includes staffing and workforce development in a health care environment. In addition to my 

experience in home health care, I currently serve on the Public Policy Committee/Political Action 

Committee Board of the Pennsylvania Homecare Association and am a member of the Board of Trustees 

of the Philadelphia University Legacy Board (now acquired by Thomas Jefferson University), the 

Overbrook School for the Blind in Philadelphia, the Magee Rehabilitation Hospital Foundation Board of 

Directors and the board of Philadanco. 

Growing up, I was part of a family who qualified for 1199C benefits-which provide eligible union 

members with comprehensive educational services in the healthcare field. As a result, my mother, 

grandmother and I were able to attend college in the same time frame, giving us the chance to persist 

and succeed in our chosen fields. Without access to this type of targeted training, I would not be where I 

am today. 

Middle·skill gap in home health care 

Middle-skill jobs, like those at ABC Senior Services, account for 53 percent of United States' labor 

market, but only 43 percent of the country's workers are trained at the middle-skill level. In health care 

industries, this skills gap is even more pronounced. 

Home health care is one of the fastest growing industries in the U.S. As the labor market has tightened, 

employers like ABC Senior Services increasingly struggle to identify hires with credentials and work 

experience, both of which are required to earn licenses. When there were more workers looking for 

jobs, new entrants earned work experience in helper roles, enabling a constant stream of newly licensed 

workers to meet middle-skill demand. With lower levels of unemployment, this pipeline no longer exists. 

For small and medium sized businesses like ABC Senior Services in particular, the skills gap can create 

daunting challenges when it comes to hiring and retaining workers. 
51 

SBR002 with DISTILLER


Insert offset folio 51 here 30502.029

Challenges in Recruiting Workers 

First, quality in-home health care requires the right kind of person. ABC Senior Services looks for kind, 

compassionate caregivers who treat clients with dignity and respect. We provide in-home care services, 

both companion and personal care. We serve patients with Alzheimer's, dementia and cancer. In 

addition to comfort and companionship, we offer dressing, escort/transportation, errands, bathing and 

grooming, incontinence care, light housekeeping, grocery shopping and meal preparation, laundry and 

medication reminders. Recruiting the right person for this work requires significant outreach to our 

community, a detailed interview process and a structured on-boarding process. ABC has over 1000 

caregivers, but we can't do this on our own. We have worked with PA career link, diversity career fairs, 

social organizations and training programs like 1199c to recruit individuals into the field. These 

community partnerships help us identify a diverse set of workers across our service area and fill roles in 

the company. 

I also work with community organizations and re-entry programs that serve individuals who have been 

released from incarceration. The PA Older Adult Protective Services Act {OAPSA) requires all homecare 

agency employees to complete criminal background checks prior to hire. However, a 2015 court 

decision by the Commonwealth of PA-known as Peake v. Commonwealth-found lifetime bans on 

employment unconstitutional. Although background checks are still required, the Department of Aging 

now recommends that providers perform a risk assessment if they choose to hire an individual with a 

prior criminal conviction. While we are awaiting more guidance from the state, we believe this is a step 

in the right direction-and urge federal policymakers to consider similar measures when it comes to 

addressing barriers to hiring. 

Challenges training new and incumbent workers 

Training new workers in the home health field requires dedication and intensity. All of the jobs at ABC 

Senior Services call for on-the-job training to ensure each client has access to quality, personalized inhome care program. Every one of our team members and care givers receive comprehensive training 

before being assigned to a care plan. Our workers also receive periodic reviews and upskilling 

opportunities. 

To help provide greater opportunities for our workers, I sit on the advisory board for 1199c Training and 

Upgrading Fund, AFSCME affiliated labor-management partnership. I, along with several other business 

leaders work with 1199c staff to identify core competencies for home health care workers and translate 

that into curriculum and training 1199c can deliver, complemented by the training my team can deliver 

workers on the job. This partnership is vital, but takes significant work. Currently, 1199c is funding a 

portion of their work and subsidizing the cost of training through federal DOL grants and with funding 

from the Workforce Innovation and Opportunity Act. I urge policy makers to continue investments in 

our workforce and apprenticeship systems, as they are crucial to supporting the efforts of small 

businesses working to close the skills gap. 

Challenges Retaining Workers 

Retaining workers is also a tremendous challenge. Much of my workforce consists of part-time workers 

since the average care plan is 3-6 hours a day. Additionally, because of low Medicaid reimbursement 

rates, homecare agencies can only afford to pay $10-12 an hour on average. Given the nature ofthe 
52 

SBR002 with DISTILLER


Insert offset folio 52 here 30502.030

tasks caregivers must perform daily, I feel this level of compensation is inadequate and does not provide 

an incentive for individuals to remain in the field. These workers can easily find higher pay in the retail 

and food service industries-which is one of the main reasons the industry has a turnover rate of 70 

percent. 

Also, the insufficient Medicaid reimbursement rate makes it difficult for homecare agencies to cover the 

increasing cost of providing care and services to seniors. Within the last six months, additional 

background check and child abuse clearance requirements for home healthcare workers have been· 

handed down by the state of Pennsylvania. While these background checks are undeniably important, 

the cost of hiring just one direct care worker is projected to increase by $43 in 2019, yet Medicaid 

reimbursement rates are set to stay the same. 

Conclusion 

We can all agree that home healthcare workers are crucial to providing high-quality care to some ofthe 

most vulnerable members of our society. I am here today to tell you that our industry is facing 

significant hurdles when it comes to building and maintaining a strong pipeline of workers-and there is 

no doubt in my mind that this will adversely affect millions of Americans if not corrected. I ask that 

federal policymakers work to help provide education and training opportunities to individuals from all 

backgrounds who are looking to find and retain gainful employment. We cannot afford to miss this 

opportunity to close our nation's growing skills gap. Thank you. 
53 

SBR002 with DISTILLER


Insert offset folio 53 here 30502.031

CompTIA. 

United States House of Representatives 

Subcommittee on Economic Growth, 

Tax, and Capital Access "Shrinking the 

Skills Gap: Solutions to the Small 

Business Workforce Shortage" 

June 14, 2018 

CompTIA 

515 znd Street NE 

Washington, D.C. 20002 

Thank you for the opportunity to express our views on this very important subject. On 

behalf of the Computing Technology Industry Association (CompTIA), I urge members 

of this subcommittee, and Congress as a whole, to consider the increasing importance of 

work-based, experiential learning in information technology occupations. Specifically, 

Congress should consider and pass H.R. 3174, the Championing Apprenticeships for 

New Careers and Employees in Technology (CHANCE in Tech) Act. The proposed 

legislation would provide needed reforms to the Department of Labor's registered 

apprenticeship program and help shrink the nation's skills and confidence gaps by 

creating an apprenticeship program for technology occupations. Such a program would 

be particularly beneficial for small- and medium-sized technology firms. 

CompTIA is a leading voice and advocate for the $4.5 trillion global information 

technology ecosystem; and the more than seven million technology professionals, who 

design, implement, manage, and safeguard the technology that powers the U.S. 

economy. Through education, training, certifications, advocacy, philanthropy, and 

market research, CompTIA is the hub for advancing the tech industry and its workforce. 

The CHANCE in Tech Act would make commonsense reforms to the registered 

apprenticeship program and spur job and economic growth. The proposal would help 

create public-private partnerships to serve as intermediaries between employers 

participating in the registered apprenticeship program, industry and training partners, 

and government entities. Each intermediary would assess and train potential 

apprentices, and importantly, lessen the regulatory burden on participating employers 

by tracking success indicators and managing other reporting requirements. The 

proposal would also establish a program to recognize those high schools providing 

515 2nd St., N.E Washington, DC 20002 

www.comptia.org 
54 

SBR002 with DISTILLER


Insert offset folio 54 here 30502.032

exemplary IT training and counseling. Collectively, the plan put forth would offer 

regulatory relief for those small· and medium-sized technology firms participating in 

the program, and better align workforce upskilling with local and regional workforce 

demands. 

The Technology Workforce 

To fully understand the scope of the issue, it is important to distinguish between 

technology industry employment and technology occupation employment. The 

technology industry workforce consists of anyone employed by technology companies. 

On the other hand, technology occupations are filled by those technology specialists 

who work in adjacent industries like health care, finance, media, and government, to 

name just a few examples. In 2017, the technology industry employed more than 3.8 

Americans, while another 7.6 million American technology specialists worked in 

adjacent industries.' 

The technology industry-both domestically and abroad-is rapidly growing. Last 

year, 34,000 new technology firms were started in the United States, and 194,000 new 

technology jobs were added, helping to make ours one of the strongest IT industries in 

the world. These jobs are lucrative and stable, with the average wage hovering right 

around $113,000, which is more than double the national average of $54,500. In total, 

more than 7 percent of the nation's workforce works in technology. 2 

The IT industry in the United States represents 31 percent ($1.5 trillion) of the world's 

$4.5 trillion IT industry.' To put into perspective, the gross output of the technology 

industry exceeds that of the legal services industry, the automotive industry, the airline 

industry, the motion picture industry, the hospitality industry, the agriculture industry 

and the reStaurant industry, to name just a few examples. And research suggests 2018 

could be another strong year for the technology industry, as it is expected to grow by 5 

percent.4 

However, if our technology industry is to meet its full potential and continue to be an 

economic engine, policymakers must redouble their efforts to equip Americans with the 

skills they need in this new economy. In 2017 alone, there were nearly 3 million 

postings for technology job openings.5 Hiring managers most often cited finding 

candidates with the appropriate levels of experience, "hard" (technical) skills, and "soft" 

(interpersonal) skills as a few of the biggest contributors to the skills gap in a 2018 

survey.6 

1 CompTIA "Cyberstates," 2018. http://www.cyberstates.org 

2 1bid. 

3 CompTIA "IT Industry Outlook," January 2018. https://www.comptia.org/resources/it-lndustry~trends-analysis-2017 

4 1bid. 

5 CompTIA "Cyberstates," 2018. http://www.cyberstates.org 

6 CompTIA "Employer Perceptions of IT Apprenticeships," 2018. https://www.comptia.org/resources/employer~ 

perceptions-of-it~apprent1ceships 

2 
55 

SBR002 with DISTILLER


Insert offset folio 55 here 30502.033

New Marketplace Demands 

Policymakers across the board have traditionally looked to STEM undergraduate 

degrees and graduate degrees as the policy solution best suited to shrink the skills gap. 

Indeed, these degrees play a critical role in our ecosystem. However, a "one size fits all" 

model is not the most optimal method to shrink the skills and confidence gaps and spur 

economic growth. Many technology careers do not require a four-year degree, let alone 

a graduate degree. For instance, about half of the open STEM jobs last year were 

available to workers without a four-year degree, highlighting that policy solutions 

should focus on competency-based outcomes, not time-based outcomes.7 

What is more, several of the fastest growing sectors within the technology industryInternet of Things, cybersecurity, and emerging technology-are increasingly in need of 

a workforce that could benefit from innovative training options that do not require 

degrees. Indeed, of the nearly 3 million technology job postings last year, more than 

200,000 were in emerging technology arenas.' As such, policy solutions should meet the 

demands of students and industry to expand opportunities for those not seeking four· 

year degrees as an important addition to current policies focused on undergraduate and 

graduate degrees. Creating a pipeline that goes well beyond the traditional policy model 

is important for the success of the technology industry and growth of the economy. 

H.R. 317 4 as a Policy Solution 

The CHANCE in Tech Act will ensure that quality candidates are recruited and provided 

with compressed and targeted training to meet specific employer needs including 

experience, hard, and soft skills. The proposal will provide an avenue for private-sector 

entities like businesses, state and regional technology associations, trade associations, 

and others, to help align curricula to ensure apprentices are equipped with the tools 

today's marketplace demands. 

Apprenticeships like those that H.R. 317 4 would create, are a commonsense solution to 

create a stable, predictable, and skilled pipeline of American workers, and are equally 

beneficial to the employee and employer. Apprentices work alongside industry experts 

in a real work environment, acquiring transferrable, practical experiences and, notably, 

are compensated. The ability to earn an income while gaining this experience, along 

with sharpening hard skills, make apprenticeships alluring, especially to non-traditional 

students like displaced workers or those pursuing a career change. 

Apprenticeships can also help put a face on the technology industry. Too many 

American workers are reticent-or Jack the confidence-to take on a job in the 

technology industry for fear of having to Jearn new skills or simply because they do not 

see people who look like themselves working in the industry. Apprenticeships could 

help to reverse this trend, bridge the "confidence gap," enhance soft skills, and grow the 

7 1bld. 

8 CompTIA "Cyberstates," 2018. http://www.cyberstates.org 

3 
56 

SBR002 with DISTILLER


Insert offset folio 56 here 30502.034

talent pool by giving workers the opportunity to learn from someone like themselvessomeone who shares a similar background, career pathway, or was similarly fearful of 

having to learn new skills at one time. 

On the other hand, employers enjoy apprenticeship benefits as well. An employer may 

compensate an apprentice at a lower rate than a full-time employee, and importantly, 

witness in real time how an apprentice handles his or her tasks. Research shows that 

about 60 percent of technology hiring managers have a positive view of 

apprenticeships, and 80 percent believe technology-based apprenticeships would 

benefit the industry and economy.• 

There is little doubt that apprenticeships are a net positive for workers and employers 

and should be adopted on a more widespread basis. Shrinking the skills gap requires 

training opportunities that create technology career pathways in the near-term and 

help build a lasting pipeline to grow the workforce over the long-term. 

By passing the CHANCE in Tech Act, Congress can take a critical first step toward 

ups killing Americans. Apprenticeships can help to build a diverse, robust and 

sustainable talent pipeline that benefits employers and employees alike. They can 

personalize learning, helping workers to bridge a confidence gap that they too can 

pursue lucrative careers alongside mentors who may share similar personal and 

professional experiences. 

Thank you for your attention to this important matter. I look forward to working with 

you and your staff and am happy to answer any questions you may have. 

Elizabeth Hyman 

Executive Vice President, Public Advocacy 

9 CompT!A "Employer Perceptions of IT Apprenticeships/' 2018. https://www.comptia.org/resources/emp!oyer~ 

perceptions-of-it-apprenticeships 

4 
57 

SBR002 with DISTILLER


Insert offset folio 57 here 30502.035

~* 

WIPP 

Women Impacting Public Policy 

June 22, 2018 

The Honorable Dave Brat 

Chairman 

Subcommittee on Economic Growth, Tax, and 

Capital Access 

House Small Business Committee 

U.S. House of Representatives 

Washington, DC 20515 

Dear Chairman Brat and Ranking Member Evans, 

The Honorable Dwight Evans 

Ranking Member 

Subcommittee on Economic Growth, Tax, and 

Capital Access 

House Small Business Committee 

U.S. House of Representatives 

Washington, DC 20515 

Women Impacting Public Policy (WIPP), a national, nonpartisan organization advocating on behalf of 

women entrepreneurs, submits the following comments for the record regarding your recent hearing, 

"Shrinking the Skills Gap: Solutions to the Small Business Workforce Shortage." 

Women business owners across the country have shared with WIPP the challenges they face with 

finding qualified, dependable workers. The concerns ranged from finding truck drivers and master 

electricians to highly skilled technical personnel and qualified project managers. Key to the success of 

any business is human capital- a dynamic workforce that meets the needs of an ever-changing business 

environment. Government and the business community need to work together to ready a workforce 

that can meet those challenges. 

Women Impacting Public Policy would like to share the following workforce development 

recommendations: 

Promote Partnerships Amongst Educational Institutions and Businesses 

As mentioned, human capital is the vital to the success of our economy. In order to create a pipeline of 

skilled workers, WIPP encourages Congress and the Administration to promote partnerships between 

large and small businesses and educational institutions- from primary schools to colleges and advanced 

education programs. Working together to develop curriculum and/or training to meet local, regional 

and national workforce needs will help us to address the skills gap our nation is facing. 

Key areas of focus are on middle and high skills training to help meet the needs in industries such as 

manufacturing, construction, and STEM fields. Additionally, WIPP's members have noted that as 

employers, they observe a lack of important soft skills such as communication, problem solving, and 

collaboration. Curriculum around these types of soft skills should be incorporated in middle and high 

schools to prepare students for the workforce and be part of any job training for underserved areas or 

1120 Connecticut Ave NW#IOOO 

Washington, DC 20036 

415a434~4314 •!• \-V\\'W,WlPP.org 
58 

SBR002 with DISTILLER


Insert offset folio 58 here 30502.036

dislocated workers. These soft skills are particularly important given the digitized world we live in where 

we have grown accustomed to interacting digitally but not socially (i.e. face-to-face). 

Increase Investment in STEAM Education & Workforce Development for Women & Girls 

The technology sector is creating the jobs of tomorrow, yet women and girls are not keeping pace in this 

industry. According to the Economics and Statistics Administration (ESA) within the Department of 

Commerce, while nearly as many women hold undergraduate degrees as men overall, they make up 

only about 30 percent of all STEM degree holders. 

In the workforce, science, technology, engineering, and mathematics (STEM) occupations are the 

leading source of wage growth in the United States and account for two- thirds of all expected jobs. 

However, women made up less than one-quarter (24%} ofthose employed in STEM occupations. In 

2016, women in the United States made up only: 

25.5% of computer and mathematical occupations 

14.2% of architecture and engineering occupations 

In one of the fastest growing technology fields- cybersecurity- women make up only 11 percent of the 

information security workforce. For women of color, this gap is wider with women of color making up 

slightly less than 10"Ai of working scientists and engineers in the United States in 2015. 

Congress should ensure appropriate funding and investment in STEAM education in schools and 

prioritize investment in cybersecurity workforce development and training to address the current 

shortage of cybersecurity talent. This investment is imperative to U.S. competitiveness around the 

globe. 

Support Apprenticeship & Workforce Development Programs 

According to the Department of labor, women are severely underrepresented in apprenticeship 

programs. While women make up nearly half of the U.S. labor force, they comprise less than 10 percent 

of apprentices. 

Last year, President Trump signed an Executive Order (EO), "Expanding Apprenticeships in America," 

which provides industry associations, unions, and other stakeholders the flexibility to develop industryrecognized apprenticeships, loosening the Department of labor regulations on apprenticeship 

programs. In addition, Congress provided increased funding for apprenticeship grants from $95 million 

in FY2017 to $145 million in FY2018. 

Apprenticeships play a critical role in helping to develop a workforce with vital technical and trade skills 

necessary for key sectors like manufacturing and construction. WIPP encourages Congress to continue 

their support of apprenticeship programs in FY2019 with an appropriations request of $175 million. In 

addition, Congress should increase funding for the Women in Apprenticeship and Nontraditional 

Occupations Grant Program which funds grants to organization that provide technical assistance to 

employers, small businesses, and labor unions to encourage the participation of women in 

apprenticeship programs and provides training for women to go into nontraditional, but high paying, 

occupations. 

lncentivize Deployment and Modernization of Our Technological Infrastructure 

Technology plays an indispensable role in our economy, yet 34 million Americans still lack a broadband 

connection-- the vast majority are located in rural areas. Furthermore, 6.5 million students across 45 

1120 Connecticut A w NW # 1000 

Washington. DC 20036 

415-434-4314 •:• vm~v.WJPP.org 
59 

Æ 

SBR002 with DISTILLER


Insert offset folio 59 here 30502.037