Statement of The Honorable Neil Abercrombie First District of Hawaii February 18, 2004 Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies Hawaii Jobs Summit Mr. Chairman, I am honored to be here today in my role as Representative of the First District of Hawaii, as well as in my position as Honorary Chairman of the Hawaii Jobs Summit. I am proud to have played a part in the conception and direction of the Hawaii Jobs Summit. And, I am equally thrilled to contribute to the effort to prepare Hawaii’s workforce for what is projected to be dramatic economic growth.
This projected growth is a part of a long term federal development strategy for the State of Hawaii in which Senator Inouye has played a major part. One of the events commemorating the federal investment in Hawaii was the Army Residential Community Initiative signing ceremony, on September 13, 2003. It was at this ceremony that the idea of a Job Summit was born. Jim Tollefson and Bennette Evangelista of the Chamber of Commerce of Hawaii and Bruce Coppa of Pacific Resource Partnership shared my desire to act on the community-wide concern that Hawaii’s labor pool may not be ready to fulfill the demands of upcoming federal, state, county, and private construction projects. Another shared concern was the recruitment, training, and availability of skilled seafaring labor for Norwegian Cruise Lines new American flagged ships.
Since the new federally based jobs were driving this new demand, I asked the Chamber of Commerce, Pacific Resource Partnership and the Hawaii Institute for Public Affairs (HIPA) to convene a summit and prepare the factual information. A community audit was deemed an essential first step to accurately assess Hawaii’s capabilities to absorb this new work. This audit would include an inventory of public and private sector projects and a projection of current and future labor supply and demand.
A community leadership group from the business, labor, education, training, and government sectors was organized to contribute to the process. Organizations represented on the Jobs Summit Advisory Committee include, but are not limited to: Norwegian Cruise Lines, Actus Lend Lease, Fluor/Hunt Development, Hawaii Military Communities, the Building Industry Association, Hawaii Carpenters Union, Hawaii State AFL-CIO, Electrical Workers Local 1186, Laborers’ Union Local 368, Building and Construction Trades, Associated Builders and Contractors, General Contractors Association, Swinerton Pacific, Dick Pacific, Hawaiian Dredging, Nanakuli Housing, Central Pacific Bank, Bank of Hawaii, Oahu Workforce Investment Board, the University of Hawaii (UH), Hawaii Department of Business, Economic Development and Tourism (DBEDT), Hawaii Department of Labor and Industrial Relations (DLIR), Winners at Work, Hawaii Business Roundtable, U.S. Small Business Administration, Hawaii Government Employees’ Association (HGEA), Job Corps Hawaii, Alu Like, Inc., Hawaii Hotel and Lodging Association, military RCI and PPV project managers, Minority Business Development Center of Honolulu and selected members of the Hawaii State Legislature.
Dr. Sang-Hyop Lee, a labor economist at the University of Hawaii Department of Economics, formulated the highly specialized, original research on the construction industry’s expected demand. To give a broader perspective, Dr. Burt Barnow, Associate Director for Research at the Institute for Policy Studies of Johns Hopkins University, assisted the group by researching the national construction scene and preparing a presentation on policies used by other states to handle new workforce demands generated by large projects.
At the January 20, 2004 Jobs Summit, Dr. Lee and Dr. Barnow presented their research and data to over 175 community stakeholders. I will submit all the Jobs Summit presentations for the record but let me provide a few highlights that have significant indications.
• Dr. Lee’s combination of historical and survey research indicates that over the next five years, 7,325 new workers will be required in the construction industry alone.
• Bob Kritzman of Norwegian Cruise Lines suggested that he is seeking 3,000 ship board employees; 2,000 are needed by mid-2004.
• The University of Hawaii’s Mike Rota used DLIR projections to conclude that we will need more than 21,000 new workers per year to sustain Hawaii’s entire economy thru 2010.
• Bruce Coppa provided Pacific Resource Partnership’s public and private construction projects outlook for Fiscal Year 2004. Other than 16 large private construction projects under development; federal projects include the multi-billion dollar military housing projects, Ford Island development, $350 million in Department of Defense projects, and $400 million for other federally appropriated projects. State projects amount to $100 million in improvements to UH system campuses, $375 million Department of Accounting and General Services construction improvement projects, $300 million in Department of Transportation improvements, and the Governor’s multi-million dollar supplemental budget proposal for repairs and maintenance of schools, parks and harbors.
The program also included expert panels on workforce development and training; and the spill-over effects on Hawaii’s real estate market, wages and the social impact on families and the community. Another important component of the Jobs Summit was the break-out session workgroups. Using their professional expertise and the research presented at the summit, these groups discussed challenges that need to be addressed; opportunities to be seized; and what activities and resources were needed to meet Hawaii’s workforce demands.
The outcome of this important community input brings me to why I am here before the subcommittee today: There is more work to be done. The Jobs Summit was just the beginning.
The conveners of the Hawaii Jobs Summit propose that this effort evolve into a Hawaii Jobs Initiative with a time frame of 12 to 18 months. During that time, additional research will be undertaken, data will be collected and analyzed, collaborative discussions will continue with appropriate groups and an action plan will address the areas of shortfall, assignment of responsibility and criteria for evaluation.
The Hawaii Institute for Public Affairs has submitted a $212,000 funding request to the Hawaii State Legislature for this work. Additionally, initial discussions are taking place with local governments and the private sector to request their continued support. I would like to work with Senator Inouye to find the appropriate mechanism to provide $1 million in federal funding for this effort.
The strategic plan that is under development includes additional research in the following areas:
• Type of demand by workforce category; • Current training programs and their ability to expand; • Current and future worker supply; • Demographic profile of people needing workforce training; • Project timelines; • Housing demand (rental and single family); and • Private construction demand over the next 10 years.
While acknowledging that Hawaii’s geography presents unique challenges, HIPA will continue seeking out information from other states that have experienced large workforce demands. Additionally, research and data must be facilitated and gleaned from further collaborative discussions of the spillover effects on housing, the family and the community, wages, education and training. The results of the additional discussions would be presented at a second summit in November 2004 where an action plan for legislative and administrative action would be presented.
In summary, Senator Inouye, I share your commitment to supporting the long term economic vitality of these islands. Through today’s hearing, I believe that we can focus our attention on making sure Hawaii’s families share and prosper in the economic growth that lies ahead. Mahalo nui loa for the opportunity to testify before you today.
