Legislature(2023 - 2024)BELTZ 105 (TSBldg)
02/22/2023 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Presentation(s): Workforce Challenges from the Perspective of the Resource Development Industry | |
| Presentation(s): Workforce Challenges from the Perspective of the Oil and Gas Industry | |
| Presentation(s): Workforce Challenges from the Perspective of the Mining Industry | |
| Presentation(s): Workforce Challenges from the Perspective of the Building Industry | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
February 22, 2023
1:31 p.m.
MEMBERS PRESENT
Senator Jesse Bjorkman, Chair
Senator Click Bishop, Vice Chair
Senator Elvi Gray-Jackson
Senator Kelly Merrick
Senator Forrest Dunbar (via teleconference)
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION(S): WORKFORCE CHALLENGES FROM THE PERSPECTIVE OF
THE RESOURCE DEVELOPMENT INDUSTRY
- HEARD
PRESENTATION(S): WORKFORCE CHALLENGES FROM THE PERSPECTIVE OF
THE OIL AND GAS INDUSTRY
- HEARD
PRESENTATION(S): WORKFORCE CHALLENGES FROM THE PERSPECTIVE OF
THE MINING INDUSTRY
- HEARD
PRESENTATION(S): WORKFORCE CHALLENGES FROM THE PERSPECTIVE OF
THE BUILDING INDUSTRY
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
LEILA KIMBRELL, Executive Director
Resource Development Council for Alaska
Anchorage, Alaska
POSITION STATEMENT: Gave a presentation on workforce challenges
from the perspective of the resource development industry.
KARA MORIARTY, Executive Director
Alaska Oil and Gas Association (AOGA)
Anchorage, Alaska
POSITION STATEMENT: Gave a presentation on workforce challenges
from the perspective of the oil and gas industry.
DEANTHA SKIBINSKI, Executive Director
Alaska Miners Association
Anchorage, Alaska
POSITION STATEMENT: Gave a presentation on workforce challenges
from the perspective of the mining industry.
ALICIA AMBERG, Executive Director
Associated General Contractors of Alaska (AGC)
Anchorage, Alaska
POSITION STATEMENT: Gave a presentation on workforce challenges
from the perspective of the building industry.
ACTION NARRATIVE
1:31:23 PM
CHAIR JESSE BJORKMAN called the Senate Labor and Commerce
Standing Committee meeting to order at 1:31 p.m. Present at the
call to order were Senators Gray-Jackson, Bishop, Merrick,
Dunbar (via teleconference), and Chair Bjorkman.
^PRESENTATION(S): WORKFORCE CHALLENGES FROM THE PERSPECTIVE OF
THE RESOURCE DEVELOPMENT INDUSTRY
PRESENTATION(S): WORKFORCE CHALLENGES FROM THE PERSPECTIVE OF
THE RESOURCE DEVELOPMENT INDUSTRY
1:32:17 PM
CHAIR BJORKMAN announced that today the committee would explore
workforce challenges from the perspective of resource
development, oil and gas, mining, and construction industries.
He invited Ms. Kimbrell from the resource development industry
to sit at the witness table.
1:32:58 PM
LEILA KIMBRELL, Executive Director, Resource Development Council
(RDC) for Alaska, Anchorage, Alaska, gave a presentation on
workforce challenges from the perspective of the resource
development industry. She offered the following prepared draft
of her testimony:
Good afternoon, members of the Senate Labor & Commerce
Committee. My name is Leila Kimbrell, Executive
Director of the Resource Development Council for
Alaska, or "RDC". RDC is a trade association
representing mostly private industry in the oil and
gas, mining, fishing, timber, and tourism sectors of
Alaska. RDC was established in 1975, and our mission
is dedicated to "growing Alaska through responsible
resource development" to ensure a strong, diversified
private sector for a robust state economy. RDC's
membership includes large and small companies, Alaska
Native Corporations, labor unions, other associations,
community associations and local governments,
individuals, and industry support services.
Collectively, RDC represents nearly 700 corporate and
individual members who employ thousands of Alaskans
statewide. As you can see, RDC is just as diverse as
Alaska.
I'd like to thank the chair and members of the
committee for inviting me and my colleagues to speak
today about the workforce challenges our private
industries face. If it pleases the chair, I will
provide a broad overview of impacts and challenges,
and then my other colleagues on this panel will
provide more specific data to share.
As a general matter, all of our industries face the
same challenges every employer in Alaska faces: record
low unemployment numbers, changes in workforce
demographics, housing costs, childcare costs, lack of
highly skilled workers, and adjusting to a post-
pandemic work environment where workers expect more
flexibility, remote working, higher wages, and
benefits, to remain competitive.
1:35:12 PM
MS KIMBRELL continued.
OIL & GAS:
In 2022, the monthly average of direct jobs for the
oil & gas sector was 6,700, according to the most
recent state Department of Labor and Workforce
Development analysis. That monthly forecast is
expected to grow to 7,400 this year based on new
project estimates. I will let Kara Moriarty from the
Alaska Oil and Gas Association address specifics but
note that if the Willow Project comes online, that
project alone estimates 2,500 construction jobs will
be created.
1:36:05 PM
MS KIMBRELL continued.
MINING & LOGGING:
In 2022, the monthly average of direct jobs for the
mining and logging sectors was 10,900, according to
the most recent state Department of Labor and
Workforce Development analysis. That monthly forecast
is expected to grow to 11,500 this year based on new
project estimates. I will let Deantha Skibinski from
the Alaska Miners Association address the specifics of
the mining industry. For forestry and timber, an
industry RDC supports, I'd like to note some
challenges.
As the committee knows, the Alaska timber industry,
particularly on federal lands, has been under fire for
decades. The recent reimposition of the Roadless Rule
for the Tongass National Forest presents the newest
challenge. But another external challenge has been
another decision from the U.S. Forest Service to stop
the harvest of old growth timber. This is a huge
hurdle to overcome, and there are concerns that there
is insufficient time to ensure an economic transition
from old to young growth without putting remaining
operators out of business.
Opportunities at the state level are more encouraging:
Alaska Mental Health Trust [Authority] lands and plans
to grant them more state lands to harvest is a good
signal. Also, the state's proposal to stand up a new
forest products program to allow commercial graded
Alaska lumber products to be produced and sold in
Alaska will create new opportunities it's hard to
believe with all the forested lands in our state that
you cannot go down to the lumber yard and buy Alaska
lumber to construct your home. A program like this
could also have the potential of lowering home
construction costs for Alaska.
1:38:36 PM
Some of the specific needs for this industry, however,
include the needs for:
• Licensed heavy equipment operators and CDL holders.
• Aging of the industry: The average age in the timber
industry is now in the late 60s. There are not
enough younger Alaskans entering the trades at a
pace equal to demand challenges as the millions in
federal infrastructure funds begin hitting our
communities.
• Wages this is a challenging issue but also a
reality federal funds will see an increase in
Davis Bacon (federal) or mini-Bacon (state)
construction jobs, and operators in the timber
industry often cannot pay or compete with these
wages and benefits, and we routinely see those
workers move from the timber industry to other jobs
when they come into the community or region.
• We also generally just do not have individuals going
into the forestry profession, and this also will
become more challenging in the coming years
foresters are needed for road development projects,
mapping, infrastructure evaluation, along with
forest management.
• So, a big question: What is the job pipeline we are
creating for our young children? How are we ensuring
we have as robust a trades program as we do for the
[Alaska Native Science and Engineering Program]
ANSEP or other professional university-based
programs and training?
• These are ongoing challenges and a reminder that we
need to continue to engage with the state and pursue
new ideas and opportunities if we are going to
maintain a strong Alaska timber industry.
1:40:36 PM
SENATOR MERRICK referred to the logging presentation, asking why
the U.S. Forest Service decided to stop old growth harvest.
MS. KIMBRELL replied she did not have the specifics, but it was
a federal-level decision made a couple of years ago in
conjunction with another program called the Southeast Alaska
Sustainability Strategy. This strategy was partly to pay for the
offset of removing opportunities in the timber industry.
1:41:21 PM
MS KIMBRELL continued.
FISHING:
Moving on to fishing, as we know, Alaska's seafood
industry is second to none. Like our other industries,
this industry faces the same challenges of workforce
shortages and demand. The state Department of Labor &
Workforce Development does not report commercial
fishing sector jobs in private, nonfarm employment
reports; however, according to a recent study
conducted by McKinley Research Group:
• The seafood industry directly employed 62,200 people
in 2019 (latest McKinley statistics) and created
an additional 10,500 secondary jobs.
• The seafood industry in Alaska is also the largest
manufacturing industry in the state because of its
processing sector.
• Alaska fish processing companies need a lot of
seasonal workers (about 27,000 people employed in
processing in Alaska, 2019) to process the 5 to 6
billion pounds of fish harvested by fishermen off
Alaska coasts every year.
• The seasonality of this work creates challenges in
filling work demands. Some seasons are 3 months,
some are 3 weeks, and in places with consistent
nearly, year-round fisheries, the jobs are year-
round as well.
• In commercial salmon fisheries, for instance, you
need thousands of people for short seasons in remote
areas, more off the road system than on. And the
fish don't wait, so you must have a sufficient
workforce at the right time.
1:42:57 PM
• Workforce shortages directly affect not just how
much fish Alaska can process but the type of seafood
products made, because higher value products take
more labor.
• And the need extends to the many highly skilled
positions in this industry. The seafood sector
engages in several workforce development initiatives
with the University of Alaska and the Department of
Labor and Workforce Development.
• Alaska Sea Grant provides in-state training and
education opportunities.
• Last year, the Alaska Research Consortium finalized
a report on Alaska's Seafood Future which
highlighted the skilled positions that seafood
processors have the most difficulty filling and
cannot operate without such as refrigeration
engineer, plant engineer, and machinists, to name a
few.
1:44:11 PM
• The University of Alaska now uses this report as a
basis for its work to help provide a skilled
workforce for seafood harvesters and processors
across the state. This includes growing awareness
for the types of skilled positions needed, trying to
improve awareness at the middle and high school
level, to improve in-state training availability and
general workforce readiness.
• Individual companies are also now investing in
developing their own training in partnership with
places like the [Alaska Vocational Technical Center]
AVTEC and company apprenticeship programs for those
people so they have jobs when they complete the
training.
1:44:55 PM
MS KIMBRELL continued.
TOURISM:
And finally, tourism: In 2022, the monthly average of
statewide direct jobs for the leisure and hospitality
sectors was 30,400, according to the most recent state
Department of Labor and Workforce Development
analysis, and that monthly forecast is expected to
grow to 35,700 this year based on new project
estimates. Alaska is on everyone's bucket list, and
the cruise ship industry alone estimates a 2023 season
of 1.4 million passengers.
The tourism industry is facing a situation where we
have many jobs to fill due to increased demand for
post-pandemic travel. In addition to federal
infrastructure-funded projects happening in the state,
this will put even more pressure on our already tight
statewide labor pool. Lack of childcare and affordable
housing are compounding employment issues for parts of
the state.
1:46:06 PM
To address these challenges, the tourism industry is
trying all manner of ways to attract workers to job
openings: higher pay, season-completing bonuses,
referral bonuses, travel allowances, and increased
schedule flexibility. However, without a larger labor
pool, we will end up competing with other industries
for the same workers or recruiting them from out of
state.
When it comes to awareness of opportunities in the
tourism industry, there also needs to be support for
working with middle and high schools, along with
universities and vocational training programs.
1:46:56 PM
MS KIMBRELL continued.
CONCLUSION:
For the short term, we all run the risk of having many
job openings which will be filled by out-of-state
jobseekers, potentially giving our industries some
blowback from in-state residents who don't understand
the situation. However, this is why these hearings you
are having are important. Thank you for the
opportunity to speak to you today. I hope I also
conveyed opportunities to give you ideas on how the
legislature can support our workforce development and
retention needs. We look forward to being a resource
for you going forward.
1:47:30 PM
SENATOR BISHOP complimented Ms. Kimbrell on the notes and
editorial she provided the committee. He drew attention to
milled Alaskan lumber in the last paragraph of page 3. He
announced the Interior has several mills providing a local
dimensional lumber source. He spoke to the seafood industry,
stating there are 62,000 direct jobs and a workforce of about
250,000. He harkened back to his tenure at the DOLWD; the
department tried hard to crack that nut and concentrated its
efforts on the year-round, legacy jobs in the seafood industry.
He mentioned that he was glad that is still the case.
MS. KIMBRELL recommended the committee read the Statewide
Comprehensive Economic Development Strategy [2022 - 2027]. It
was recently produced and is a great document. It identifies
priorities for the next five years and is beneficial in
addressing areas that a regional economic development
organization does not currently cover. It identifies some
priorities key to RDC industries.
^PRESENTATION(S): WORKFORCE CHALLENGES FROM THE PERSPECTIVE OF
THE OIL AND GAS INDUSTRY
PRESENTATION(S): WORKFORCE CHALLENGES FROM THE PERSPECTIVE OF
THE OIL AND GAS INDUSTRY
1:49:41 PM
CHAIR BJORKMAN announced Ms. Moriarty of the Alaska Oil and Gas
Association (AOGA).
1:50:06 PM
KARA MORIARTY, President and Chief Executive Officer, Alaska Oil
and Gas Association, Anchorage, Alaska, gave a presentation on
workforce challenges from the perspective of the oil and gas
industry.
1:50:19 PM
MS. MORIARTY advanced to slide 2, stating that AOGA's 14 member
companies represent the majority of companies exploring,
developing, producing, marketing, transporting, and refining in
Alaska. AOGA's mission is to advocate for the long-term
viability of the oil and gas industry for the benefit of all
Alaskans. Slide 2 lists these companies:
Alyeska Pipeline Service Company
Blue Crest Energy
Chevron
ConocoPhillips Alaska
eni
ExxonMobil
Furie Operating Alaska, LLC
Glacier Oil & Gas
Hilcorp
Marathon
Santos
Petro Star, Inc.
Repsol
Shell
MS. MORIARTY said the industry started 2022 with 100,000 fewer
jobs than before the COVID-19 pandemic at the national level.
While there were fewer jobs during the pandemic, finding and
keeping qualified workers was identified as the industry's most
significant challenge nationwide in a survey conducted by the
American Petroleum Institute at the end of 2022. This is further
evidence that the workforce development issue is not just an
Alaskan issue but a national one.
1:51:42 PM
MS. MORIARTY reviewed the facts on slide 3. She said the
McKinley Research Group summarized the oil and gas industry's
role in the economy as follows:
"Alaska's oil and gas remains the single most
important economic engine in the state."
MS. MORIARTY described how the McKinley Research Group
determined the oil and gas industry was the state's single most
important economic engine. The oil and gas industry creates
direct, indirect, and induced jobs that account for roughly 25
percent of all jobs and wages in Alaska. The oil and gas
industry provides the largest private sector funds to the state
treasury and several local government jurisdictions.
24 percent of all jobs
$4.4 billion with 1000+ local businesses
$4 generated for every $1 earned in primary companies
15 jobs for every 1 primary company job through
indirect spending and tax payments
1:53:03 PM
MS. MORIARTY said she intends to focus on the industry's private
sector employment challenges. She did an informal survey of
AOGA's member companies in preparation for this hearing. She
asked about their current workforce, the average age of
employees, the types of positions that are hard to fill,
projections of jobs needed in the coming year and into the
future, the biggest impediments to getting the type of workers
they need, and what needs to be done. Over half of AOGA
industries responded to the survey; most significantly, the
largest employers responded. This presentation contains a
summary of their responses. She noted the average age in the oil
and gas industry is in the mid-40s, with several companies
facing a significant number of employees eligible for
retirement. The jobs that are especially hard to fill require
college degrees and technicians.
1:54:20 PM
She advanced to slide 4 to review the first category of jobs
that are especially hard to fill:
Jobs Needed Most by AOGA Members Today
Engineering:
All types of engineers are needed, petroleum,
mechanical, electrical, chemical, and specialty
engineering (fire systems, corrosion, automation,
risk/process).
Crafts/Technicians:
Machinists were identified by almost every company as
well as needs for instrumentation specialists,
electricians and cyber security.
And believe it or not, there is a need for more
attorneys.
MS. MORIARTY said 13 percent of one member company's current
workforce is retirement eligible. Santos and Repsol have
immediate worker needs because the first phase of the Pikka
project was approved. They are ramping up significantly, likely
doubling the number of direct employees by the end of this year.
ConocoPhillips may also be looking at this type of growth if the
Willow Project obtains a favorable record of decision by the
U.S. Department of the Interior.
1:55:54 PM
MS. MORIARTY reviewed slide 5, "Biggest Impediments to
Attracting Workers for AOGA Members Today:"
- Qualified people who want to live and work in
Alaska, especially in remote locations
- Competition within the oil and gas industry and
other similar industries
- Less interest in working for the oil and gas
industry
- Need more high quality training and engineering
programs
- Lack of recruitment and marketing
1:59:27 PM
MS. MORIARTY reviewed slide 6, "Alaska Pipeline Job Info." This
slide has a snapshot of a social media website showing job
seekers where to find jobs on the North Slope.
MS. MORIARTY advanced to slide 7, which showed survey results on
workforce needs from the Alaska Support Industry Alliance, which
they conducted a few months ago. One hundred forty companies
directly supporting the oil and gas industry responded. Eighty
percent of those companies said they need to hire more than two
workers in the next six months. The total number of positions
these companies need to fill ranges from 144 to 400. She
reviewed the results of the survey on slide 7:
Survey Results of Alaska Support Industry Alliance Members
Oct 2022
Top Positions Needed Statewide:
-Equipment Operator/Truck Driver
-Diesel Mechanics
-Engineers
-Office Manager/Customer Service
-Project Managers
MS. MORIARTY said the biggest barriers for Alliance membership
were:
- a lack of qualified candidates,
- other jurisdiction wages and housing were more competitive
than Alaska, and
- workers failed to pass drug testing.
2:01:25 PM
MS. MORIARTY reviewed the graph on slide 8, "Going Down." She
shared data about petroleum engineers who the industry needs.
She said this year, the expected number of petroleum engineer
graduates in the United States would total about 400, an 83
percent decline from 2017. The number of petroleum engineer
graduates peaked at 2,300 in 2017. Professor Lloyd Heinze of
Texas Tech University conducted this research. He tracks the
annual enrollments at more than three dozen petroleum schools
worldwide. Texas A&M University, one of the top engineering
schools in the country, elected to dissolve its College of
Geosciences; it is now the Department of Geosciences.
MS. MORIARTY said Brunel International conducted an energy
outlook report on the oil and gas industry's key hiring and
employment trends this past year. It surveyed nearly 17,000
global energy industry companies, recruiters, and workers. It
found that 43 percent of employees want to leave the energy
industry altogether within the next five years. She expressed
her belief that there is not one single answer that addresses
all of these challenges. However, the industry is ready to
strengthen its partnerships with the university, trade schools,
unions, and other training programs to ensure a qualified
Alaskan workforce continues the long-term viability of the oil
and gas industry.
2:03:31 PM
CHAIR BJORKMAN commented on the system of developing the oil and
gas workforce, starting with school-age children on up to adults
who want to be reskilled to work in the oil and gas industry. He
asked how K-12 and postsecondary education can work closer with
the industry to increase the number of interested, skilled, and
motivated workers to serve in the oil and gas space.
MS. MORIARTY said that she is not an expert though she started
her career as an educator long ago. She expressed her belief
that it could be done in many different ways. She talked about
vocational education, clubs, and programs. She said that she
gets the idea that shop classes and vocational education
programs are less prevalent than they once were in Alaska.
Speaking as a former Alaska Resource Education (ARE) board
member, she said the board directly partnered with DEED 15 years
ago. The state offered a grant, and ARE married its curriculum
with the state standards in training teachers about the
industry. The industry could do more, like providing more
opportunities for internships. There is an interest in doing
tours for school counselors and teachers now that the pandemic
is in the past. It is a matter of identifying opportunities so
students can experience them through job and career fairs. She
added that the industry should reach out to students as early as
the 4th and 5th grades.
2:05:58 PM
CHAIR BJORKMAN asked whether she thought the number of skilled
workers graduating high school would increase if schools
provided guidance and career counseling that painted a vision
for kids as they advanced through the grade levels and if
students received career, technical, and vocational education as
a part of their high school curriculum.
MS. MORIARTY answered that she could not see how it would not.
She shared an anecdotal story. The Alaska Resource Education
board visited the Fairbanks Pipeline Training Facility about a
year ago last March. She said that she was unaware of the number
of welders needed and that there was difficulty finding enough
people to apply for the program. Fast forward three or four
months. Her son is on a baseball team, and a graduating senior
teammate shared that he did not want to go to college. He wanted
to be a welder. She told him about the opportunity for welding
at the Fairbanks Pipeline Training Facility. He was a senior at
a public high school in Anchorage and had never heard of that
opportunity or where he could get trained elsewhere in the
state. She said that this encounter informed her something was
missing. Students need to be made aware of vocational education
opportunities. It would not hurt to have guidance and career
counselors painting a vision of available options.
CHAIR BJORKMAN commented that he agreed and identified with her
anecdotal story. There needs to be more information and
purveyance of information for people who want to be reskilled or
get trained; they need to be made aware of opportunities.
2:08:42 PM
SENATOR BISHOP said he champions high school counselors, but
there are not enough. He said that one of the things he used to
do with the JATC [Joint Apprenticeship and Training Committee]
was boot camp for educators. They would visit the Palmer
training facility and receive a three-day boot camp, getting an
awareness of what the Alaska Operating Engineers do. He said he
tried to put a counselor in each classroom theoretically. He
challenged each employer in the room to be their own counselor.
He said he stops and talks to people during his daily routine,
always headhunting and looking for talent. It is all-hands-on-
deck for recruiting. He said he is interested to know whether
the number of applicants increased or decreased since legalized
marijuana. He said to work on the North Slope, under a covered
position, under Title 49 of the Code of Federal Regulations,
workers have to be able to pass a drug test. He said a test has
not been developed yet for marijuana, like blowing in a tube for
alcohol. He remarked that some JATC enrollment numbers have
dropped since legalized marijuana in the state.
MS. MORIARTY answered that she does not have hard data, but the
operators union [International Union of Operating Engineers]
told her there were 20 openings and 100 applicants. Only ten
applicants were eligible, partly due to that issue.
2:12:15 PM
CHAIR BJORKMAN commented that the education tax credit has
changed over time, shrinking in the past seven years or so. He
asked whether it would be valuable to the oil and gas industry
if the education tax credit were to expand, infusing dollars
more directly into workforce development, education, and
training opportunities.
MS. MORIARTY replied that type of incentive could work depending
on the company. She knows some companies took advantage of
education tax credits. She said the state could offer other
incentives besides education tax credits. Education tax credits
have not always been as stable as other options, but when
offered, companies have taken advantage of them.
CHAIR BJORKMAN sought confirmation that education tax credits
allow the oil and gas industry to apply a portion of their tax
dollars to educational opportunities, which forges lasting
connections between the industry and the organizations that
train industry workers.
MS. MORIARTY responded yes.
2:14:16 PM
At ease.
^PRESENTATION(S): WORKFORCE CHALLENGES FROM THE PERSPECTIVE OF
THE MINING INDUSTRY
PRESENTATION(S): WORKFORCE CHALLENGES FROM THE PERSPECTIVE OF
THE MINING INDUSTRY
2:15:06 PM
CHAIR BJORKMAN reconvened the meeting and recognized Ms.
Skibinski of the Alaska Miners Association.
2:15:17 PM
DEANTHA SKIBINSKI, Executive Director, Alaska Miners Association
(AMA), Anchorage, Alaska, gave a presentation on workforce
challenges from the perspective of the mining industry.
MS. SKIBINSKI advanced to slide 2, "Promoting Responsible
Mineral Development in Alaska." She reviewed the following facts
about AMA on slide 2:
• Established in 1939
• Over 1,400 members
• Eight statewide branches Nome to Ketchikan/Prince of
Wales Island
• Placer mines: small; family-owned
• Exploration and development projects
• Large-scale mines and projects
• Sand, gravel, industrial mining
• Support contractors and businesses
MS. SKIBINSKI advanced to slide 3, "Alaska Mining Workforce."
She said the data presented today is from 2021. She intends to
submit updated information to the committee as soon as she
receives it from the Department of Labor and Workforce
Development (DOLWD). She reviewed slide 3:
• 5,400 direct and 10,800 direct and indirect jobs
attributed to Alaska's mining industry
• Average wage of $130,000; twice the state average
for all sectors
• $985 million in total payroll
• Year-round jobs for over 95 Alaska communities
2:17:52 PM
MS. SKIBINSKI advanced to the map on slide 4, which illustrates
the distribution of mines and projects around the state. She
said the little circles on the map are the communities around
Alaska where mining industry employees live. The map shows a
geographically diverse distribution of mines, projects, and
exploration, many in rural areas where there are few other high-
paying economic opportunities. She said that AMA is very proud
there is mining industry employment and opportunity in these
communities.
2:18:50 PM
MS. SKIBINSKI reviewed the pie chart on slide 5, "Mining
Employment by Activity." The pieces of pie show the percentage
of mining activity involved in:
- Exploration 10 percent 303 employees
- Development 15 percent 494 employees
- Production 75 percent 2,428 employees
2:19:26 PM
MS. SKIBINSKI reviewed slide 6, "Alaska Mining Industry Jobs,"
which listed mining occupations in descending order by the total
number of workers within each classification:
Top 10 Occupations in Alaska's Metal Mining Industry, 2020
Total
Occupation Workers
1. Underground mining machine operators, all other 758
2. Extraction workers, all other 264
3. Mobile heavy equipment mechanics, except engines 260
4. Earth drillers, except oil and gas 162
5. Mining and geological engineers,
including mining safety engineers 147
6. Millwrights 105
7. Plant and system operators, all other 92
8. Electricians 90
9. Geoscientists, except hydrologists and geographers 85
10. Miners, except drillers and machine operators 82
MS. SKIBINSKI said the mining industry has challenges across the
board, and she listed them:
- recruitment and retention that started with the pandemic,
- supply chain,
- workers that are unable to show up for their shift on time due
to airline worker and flight shortages, and
- various factors in addition to having a shortage of available
people.
MS. SKIBINSKI said on average, it takes over 100 days to fill
skilled trade positions and about 50 days to fill other
positions. The average turnover rate is 24 percent, and she
explained that the industry is stealing workers and competing
with each other for employees. She said the occupations list
shows the trades that have the greatest number of total workers,
but the most problematic to fill are engineers, geologists,
diesel technicians and mechanics, mine and other types of
electricians, and Class A CDL drivers.
2:22:04 PM
MS. SKIBINSKI advanced to slide 7, "Training Investments." The
industry has enjoyed a longtime partnership with the University
of Alaska (UA). She said UA has everything from graduate
programs to vocational training to place students in mining
positions. She plugged "UA Giving Day," which runs today and
tomorrow. It is a major campaign rollout and a number of major
mines agreed to do a match, so today is a good day to remember
the university. She expressed appreciation to Senator Bjorkman
for bringing up the education tax credit. The mining industry
makes contributions to the programs that are important to the
industry and makes deductions from their State of Alaska taxes
accordingly. She expressed that the mining industry is hopeful
education tax credits remain an option with the university for a
long time. She described various mine training options available
in Alaska. Slide 7 reads:
• $1.1+ million to UA and vocational schools in
2021
• AVTEC, MAPTS, underground mine training center
• On-the-job training
• Scholarships: UA, ANSEP
• We need to look further!
MS. SKIBINSKI said AMA is looking at creative ways to attract
and keep workers through salaries, travel stipends, relocation
expenses, and signing bonuses. More needs to be done, like
making communities more desirable places to live. There needs to
be a focus on childcare issues, housing shortages, and energy
costs. She said it is not unusual to hire Alaskans who begin a
shift schedule, then find it a lot easier to live somewhere
else. They end up flying back and forth for their shift. It is a
statewide discussion on how to get people to live here because
people want to work here. She said the industry and state need
to better market to younger generations and demographics
unfamiliar with mining jobs. She said the mining industry
battles to combat the negative perceptions about the industry.
It is not just that it is not sexy; there is a negative
association with the mining industry. AMA needs to do more
education to show that the industry is environmentally
responsible, a safe place to work, with great jobs and community
partnerships.
2:27:44 PM
CHAIR BJORKMAN asked what techniques the industry employs to
hook or encourage kids to become miners.
MS. SKIBINSKI replied that the one thing that comes to mind is
Alaska Resource Education. Its primary focus is educating
children on the need for energy and minerals and why the world
depends on these resources. ARE then jumps to the careers and
opportunities available in these industries. ARE does a great
job corralling interested students and showing them the pathway
to a lucrative position. She said this is a place to concentrate
and a good conduit to reach young people.
CHAIR BJORKMAN agreed. He said the ARE curriculum and materials
are engaging and interesting. He said that he supports the
relationship between schools and industry. The connection could
be tightened to improve information flow so more kids could
access it.
2:29:54 PM
At ease.
^PRESENTATION(S): WORKFORCE CHALLENGES FROM THE PERSPECTIVE OF
THE BUILDING INDUSTRY
PRESENTATION(S): WORKFORCE CHALLENGES FROM THE PERSPECTIVE OF
THE BUILDING INDUSTRY
2:31:59 PM
CHAIR BJORKMAN reconvened the meeting and recognized Alicia
Amber of The Associated General Contractors of Alaska.
2:32:16 PM
ALICIA AMBERG, Executive Director, Associated General
Contractors of Alaska (AGC), Anchorage, Alaska, gave a
presentation on workforce challenges from the perspective of the
building industry. She reviewed slide 2:
AGC of Alaska, Who We Are
• Since 1949, AGC has served as the voice of Alaska's
commercial construction industry.
• As the state's leading construction trade association, we
provide our members products and services designed to
improve and grow their business and enhance the
professionalism of Alaska's construction industry.
• We proudly provide support to Disadvantaged Business
Enterprises, or DBEs.
MS. AMBERG said that AGC does not represent a specific resource
industry; instead, it advocates for a healthy economy,
responsible environmental and development partnerships, and
workforce efforts that support its cost industry careers that
are represented on today's panel.
2:33:51 PM
MS. AMBERG advanced to slide 3 and gave a brief overview of
AGC's economic impact in Alaska. The McKinley Research Group
compiled some construction industry employment facts, which she
reviewed on slide 3:
In 2021, Alaska's Construction Industry?.
Employed Alaskans
• Employed 23,700 workers, including wage & salary
(69%) and self-employed (31 percent) workers
• 82 percent Alaska Residents making 87 percent of
Alaska wages
Paid Alaskans
• Paid $2.3 billion in labor income, or 5 percent of
all Alaska earnings
Generated Multiplier Effects
• Total impacts of 39,400 jobs and $3.3 billion in
wages
• 9% of total employment in Alaska
• 10% of total labor income in Alaska
2:35:00 PM
MS. AMBERG advanced to slide 4, stating economic recovery in the
construction industry is underway. DOLWD predicts the
construction industry has achieved full recovery. The state is
excited about Infrastructure Investment and Jobs Act (IJAA)
funded projects that are on the horizon. She reviewed slide 4,
stating AGC is forecasting some pretty significant private and
public construction spending for 2023:
Overall 2023 Spending Forecast
2023 Alaska Construction Spending Forecast Summary
($Million)
Total Percent
Spending of Total
Category Spending
Private Construction Spending $2,830 51
Oil and Gas $730 13
Utilities $600 11
Residential $450 8
Hospitals/Health Care $290 5
Mining $225 4
Other Basic Industry $145 3
Other Commercial $390 7
Public Construction Spending $2,720 49
Highways and Road $700 13
National Defense $600 11
Airports, Ports, and Harbors $510 9
Education $315 6
Other State and Local Govt $370 6
Other Federal Government $225 4
TOTAL $5,550 100
Private Sector $2.8 Billion 51 Percent
Public Sector $2.7 Billion 49 Percent
TOTAL SPENDING $5.6 BILLION
2:35:47 PM
MS. AMBERG reviewed the bar graph on slide 5, "Construction
Sector Employment, Including Self-Employed Workers (2012-2021)."
This chart shows the year-over-year amount of construction
sector employment. The bar graph shows a big spike in 2015. The
industry anticipates these numbers to grow over the next few
years. The construction industry touches every city and borough
in the state, a fact of which the industry is proud.
2:36:18 PM
MS. AMBERG reviewed slide 6, explaining this slide is specific
to occupational growth. It encompasses predicted growth by craft
rather than by industry sector. She clarified that not all
construction-related occupations work exclusively in the
construction industry. For example, laborers, equipment
operators, carpenters, and electricians work on building and
road construction projects as well as in oil and gas, mining,
and other industries. These numbers are for the specific jobs in
each of the construction trades amongst all of the industries:
Expected Occupational Growth
• Accounting for COVID-19 impacts, between 2020 and
2030, construction trades occupational employment up
9.8%
• Including new jobs and openings from employees
leaving the trades, an expected 1,523 annual
openings Highest expected openings:
• Construction laborers (396 annual openings)
• Operating engineers and other construction
equipment operators (323)
• Carpenters (228)
• Electricians (202)
Growth in construction activity (new jobs)
+
Openings due to workers leaving the occupation or
leaving the workforce entirely (separations)
Total Openings
2:38:26 PM
MS. AMBERG advanced to slide 7 and spoke about the effects of an
aging population and retirement on the construction industry:
Impact of Aging Workforce - Top 10 Construction Occupations in
Alaska (2021)
Percentage of Resident Workers
Age 45+ Age 50+
Operating Engineers and Other Construction 47 37
Equipment Operators
Construction Laborers 25 18
Carpenters 35 25
Electricians 34 24
Plumbers, Pipefitters, and Steamfitters 35 26
Painters, Construction, and Maintenance 32 24
Sheet Metal Workers 32 23
Hazardous Materials Removal Workers 33 24
Construction and Building Inspectors 58 47
Roofers 19 13
2:39:21 PM
MS. AMBERG advanced to slide 8 and explained the industry's
predicament. She said Alaska would soon be awash in federal IJAA
funding, which will put more demands on the industry. She
described the challenges this creates on slide 8:
Our Goal: Put Alaskans to Work
• Competition for labor is fierce
• Cannot rely on Outside labor
• Must retain and attract local workers
• Hiring and training take time
• We prefer to hire Alaskans
2:40:08 PM
MS. AMBERG advanced to slide 9 to address what AGC is doing
about these challenges:
Alaska Proud
Real Work. Real Jobs. Real Paychecks
Careers
Competitive wages, excellent benefits and
opportunities to work outside or in an office - The
construction industry offers a variety of opportunity
& great pay - with or without a college degree!
Training
There are many paths into and within the construction
industry, take a look at the many different paths you
can follow in your career and discover the one that's
right for you!
Find a Job
After all of the training and on-site experience has
taken place, you are ready to join the industry!
You've got the skills and the experience - Check out
who's hiring in Alaska.
MS. AMBERG said The Associated General Contractors of Alaska
workforce development website address is
https://webuildalaska.com/. The website was designed as a one-
stop shop for Alaskans considering a career in construction,
including facts and figures about various career paths,
different ways to get started, resources for training and
education, and some job openings.
2:42:00 PM
CHAIR BJORKMAN brought up job seekers who want to reskill,
change careers, or start a career in construction. He asked what
some of the skills and abilities a job seeker needs to succeed.
MS. AMBERG replied many of them are soft skills, like showing up
on time, a good attitude, a willingness to learn, and the
ability to pass a drug test. The hard skills come later.
CHAIR BJORKMAN asked if there are locations around the state
where individuals can find job training opportunities.
MS. AMBERG replied absolutely. The webuildalaska.com website
lists all of those resources. It is a great way to find training
resources, and there is a special section for educators and
career resource counselors.
2:44:04 PM
CHAIR BJORKMAN thanked all the presenters for providing a wealth
of information and the industry point of view from around the
state. It is valuable information for generating ways to tighten
communication between job seekers and those with job
opportunities. Those pathways are essential as the state seeks
to find ways to connect job opportunities with job seekers.
2:45:21 PM
There being no further business to come before the committee,
Chair Bjorkman adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:45 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 02.22.23 AOGA Presentation to S&C.pdf |
SL&C 2/22/2023 1:30:00 PM |
AOGA Workforce presentation to SL&C |
| 02.22.23 AMA Presentation to SL&C.pdf |
SL&C 2/22/2023 1:30:00 PM |
AMA Workforce presentation to SL&C |
| 02.22.23 AGC Presentation to S&C.pdf |
SL&C 2/22/2023 1:30:00 PM |
AGC Workforce presentation to SL&C |
| 02.22.23 RDC Presentation to SL&C.pdf |
SL&C 2/22/2023 1:30:00 PM |
RDC Presentation to SL&C |