Workforce study

The key takeaways from the study include:

1. Overall, labor supply is extremely tight in the region.

• Much like the U.S. as a whole, the Savannah region is experiencing record low unemployment and is struggling to fill job vacancies.
• The region has about 700,000 people and is growing quickly, which means potential workforce in the future.
• The majority of population growth is expected to be in the four-county Savannah JDA area. Population growth is projected to be 23,750.
• Imported labor (commuting outside the four-county Savannah JDA) is very high in certain job groups. More than 10% of workers are from outside the area.
• Employment focus in most sectors are on hourly, entry-level roles.
• Most firms have reduced temporary staffing and are hiring directly to focus on engagement.
• Local professional outlook is generally positive with some exceptions.
• Supply outlook presents the greatest challenge. By 2025, industrial labor supply will fall short of meeting demand.
• Starting in 2024, annual industrial demand will outpace professional jobs for the rest of the decade.
• The shortfall is initially covered by the one-time existing supply of underemployed. By 2025, this resource is largely depleted.

2. Future demand will vary annually, but top needs will continue to be technical and production roles.

• Entry hourly production wages are up with 20% growth in two years.
• Turnover is most likely in first 90 days but also differs significantly based on wages, engagement and onboard efforts.
• Turnover can cost upward of 60% of annual salary.
• Employee retention and competitive pay have become increasingly important.

3. Competitive pay and enhancing employee retention have been increasingly important.

• High-demand positions are primarily found in logistics, manufacturing, maintenance roles.
• Job needs anticipated to be a ramp-up over a nine-year period but peak years for hiring will be in 2024 and 2025.

4. Workforce development initiatives must work to draw more high school graduates into industries including manufacturing.

• 84% of new hires have no more than a high school diploma, highlighting the emphasis on comprehensive training.
• There are many educational institutions and pathway programs to support local workforce needs. Partnerships are vital to ensure valuable industry certification and skills.
• High school and technical college graduates are key to solving industrial worker gap. Without access to industry for career exploration, students likely do not know these opportunities exist.

5. Available labor from annual military departures is underutilized.

• A key source of talent in the Savannah region is military separations from regional installations:
  – More than 3,500 annual separations from Ft. Stewart and Hunter Army Airfield
  – Most have transferable skill sets to related industries
  – Nearly 75% prefer local employment
  – Military spouse employment opportunities
• Typically, higher wages and target outreach are needed to capture this pool.

6. The Savannah region has a number of workforce strengths and several challenges.

• Strengths:
  – Port of Savannah is a major driver behind a lot of activity.
  – Incentives also a key driver behind location decisions.
  – The Savannah region has appeal to transferees due to quality of life.
  – Growing technology-based jobs in region.
  – Economic development efforts have been successful.
• Challenges:
  – Initiatives will need to attract high school graduates to trades.
  – High wage inflation, tight labor supply.
  – Absence of childcare staff due to low wages and COVID. Most childcare facilities are operating at 50% staffing levels.
  – Limited affordable housing for growing entry-level workforce.
  – Available buildable land for housing becoming an issue in Savannah region.
  – Lack of regional public transportation options.

7. Regional employers must take a more active role in addressing workforce challenges.

• Workforce culture
• Proper onboarding
• Alternative labor sources
• In-migration recruitment

Workforce Development Plan

• While the Savannah region’s labor market is much like the U.S. as a whole, the Savannah region is proactively addressing the key takeaways outlined.
• Partnership is key. Strong leadership and direction needed from single local coordinating entity.  Must have excellent employer and investor connections and fundraising capabilities.
• Collaborative regional partnership should be created to include economic development agencies, chambers of commerce, workforce development and employment services, regional employers, educators, military, transportation stakeholders, nonprofits, county/municipal leaders and others.
• A long-term workforce development strategy must be integrated directly into economic development and coordinated with infrastructure development.
• Coordination between regional partnership, job seekers and students preparing for the job market.
• Build upon existing workforce infrastructure and create new programs and initiatives for those already located in the region.
• Principal coordinator to oversee workforce development plan design, implementation and management.
  – Oversee the development and operation of a Coastal Employers’ Forum.
  – Facilitate communications between task forces and Coastal Employers’ Forum.
• Coastal Employers’ Forum to facilitate member messaging for HR guidelines relative to region’s HR best practices for recruiting and retaining employees, address childcare as well as establish programs and initiatives that improve labor supply.

Workforce Development Plan Task Forces