Maren asked if I would take the time to share my experiences regarding the setup and effectiveness of our local economic development efforts based on my experience with the start-up of the General Electric Plant on Scenic Highway. Being fairly active in the Pensacola Chamber I see the current efforts made to recruit new business to Pensacola. My experience of having been on the receiving end of the economic development process during my time with GE however offers a little different perspective.
I was one of the first people hired when the plant was purchased from Westinghouse in 2000. The purchase entailed numerous local economic incentives including property tax abatement, workforce training funds, tangible and sales tax abatement and substantial assistance by PJC.
By far, the incentive most valued by GE was the workforce development incentive offered by Workforce Escarosa and Pensacola Junior College. Tax abatements are common and not a differentiator to companies these days. Education and commitment in the area to training the needed workforce was the major value perceived by GE.
GE has plants all over the world, but many are staffed by employees with no post high school education and who receive on-the-job training to perform a specific role or function. Many of these plants such as in Schenectady, New York have been in place for as long as 75-100 years. Being the progressive company it is, when GE purchased the Pensacola site, GE Human Resource management decided that in order to make the maximum return on investment the Pensacola site needed the most dynamic and adaptable workforce in the Energy sector.
When Westinghouse closed the Pensacola plant in 1998 it laid off 650 Pensacola area workers. As part of the layoff, Westinghouse offered employees a college tuition assistance program. Most Westinghouse employees DID NOT ACCEPT THE OFFER.
When GE bought the plant, in order to ensure a workforce that was self directed, had the ability to work in many areas of the process, had the capacity to learn new and different skills such as Six Sigma and Lean Manufacturing, GE insisted that each new hire have AT LEAST an Associates degree in order to interview. Therefore, MOST of those laid off by Westinghouse were ineligible even to interview for the new high paying jobs. Once in place the 181 GE employees at the plant formed one of the best labor forces in GE and rapidly equalled the output of the Schenectady plant's workforce in Generator manufacturing. The employees needed less management oversight, less engineering direction, and had a much greater capacity to see the entire process and find the most cost effective means to produce the product.
Once the power generation bubble burst in late 2001, GE had insufficient orders to keep 2 generator plants active. Due entirely to the education, adaptability and self directed nature of the Pensacola workforce, GE transitioned the plant from generator manufacturing to the manufacturing of wind turbine blades. The two processes are as different as night and day. Once again the local GE employees had the capacity to learn new concepts and techniques, most of a much more precise and unforgiving nature as mistakes in blade manufacturing can cost $20,000 to $30,000 each. The plant continued to be a shining example of adaptability.
Finally, due to the rapid rise of the wind turbine market in the last few years, the plant has had to adapt once again into wind turbine generator assembly. The plant has had 3 major shifts in the last seven years. The Pensacola workforce and its ability to rapidly change is discussed and admired throughout all of General Electric.
This success was created by a Company demanding an employee with the capacity to learn new and advanced concepts and a workforce development incentive built around education not tax give aways.
When Maren began talking about the Kalamazoo plan, I immediately saw the natural benefit it would provide our community based on my GE experience.
Alabama offers tax breaks, invests pension funds in new developments and spends the millions of taxpayer funds needed to attract the Billion dollar investments. Unfortunately the State of Florida will not assist Northwest Florida with these types of programs.
I see few Pensacola graduates using the proposed plan to go straight to UWF. Due to UWF admission requirements most would actually be covered under Bright Futures anyway. I see the major beneficiary being kids in Pensacola who graduated from high school but with less than a B average. I believe these kids without this program will merely enter the workforce and begin working in whatever job they can find. The program Maren proposes will allow them to acquire additional skills in areas that interest them, training and education that will make them more attractive to both local employers and new businesses.
Finally, instead of investing substantial City tax dollars in chasing the elusive elephant to relocate to Pensacola, we would be stepping out to invest City dollars, in City residents, to attend City colleges. Dollars that in turn will be spent by the College in salaries and benefits that are pumped back into the local economy.
I for one think that based on my experience and history, her idea shows a track record of success and should be aggressively explored.
