National Council for Workforce Education Conference

Milwaukee, WI

October 16, 2013

NORTH COAST MARINE MANUFACTURING TRAINING

CENTER

• Jim Golembeski – Executive Director; Bay Area Workforce Development Board

• Dean Stewart – Dean of Corporate Training and Economic Development; Northeast Wisconsin Technical College

• Dr. Jeff Rafn – President; Northeast Wisconsin Technical College

• Steve Baue – Vice President of Human Resources; Fincantieri Marine Group

PRESENTERS

Executive Director; Bay Area Workforce Development Board

JIM GOLEMBESKI

BAY AREA WORKFORCE DEVELOPMENT BOARD

Bay Area WDB is a private nonprofit organizationcreated under the Workforce Investment Act (WIA)

to administer federal employment and training programsin an 11-county area in NE Wisconsin.

The employer-led board of directorscreates a regional workforce strategyto match worker skills with employerneeds.

www.newmfgalliance.org

created January 2007

Computer Integrated Manufacturing Mobile LabNortheast Wisconsin Technical College

2011

Mobile Manufacturing LabLakeshore Technical College

2013

The purpose of the North Coast Marine Manufacturing Alliance is to convene the ship, yacht and boat manufactures in the region to work in partnership with the leaders in workforce development, educational institutions, and economic development to promote, develop, and grow the industry.

www.northcoastmma.org

DWD Industry Sector Partnership Grant 2010-12

The Bay Area Workforce Development Board received a grant of$500,000 from the Wisconsin Department of Workforce

Development for training at Marinette Marine.We worked closely with the company management

to meet their precise training needs for incumbent workers,new hires, and potential hires.

Training includes:

Leadership Development WeldingElectrical Metering Electrical Mechanics

Shipyard Orientation

DWD Industry Sector Partnership Grant 2010-12

Training Outcomes

Incumbent Workers Trained 1,618Incumbent Workers Completed Training 1,601

Unemployed Workers Trained 618New Hires from Training 618

Cost per Trainee $ 224

Leveraged Match from Employer $ 688,971

President – Northeast Wisconsin Technical College

JEFF RAFN

NORTH COAST MARINE MANUFACTURING ALLIANCE

VISION STATEMENT

“North Coast region marine manufacturers are recognized the world over for the

unparalleled design, efficient production, and on-time delivery of superior quality

marine craft, from boats to yachts to ships.  We take tremendous pride in our

craftsmanship and it shows.”

• The current labor supply model seems to rely on the constant redistribution of the existing workforce in a reactionary fusion.

• This was adequate during the height of the baby-boomer workforce, but will likely fail to meet the industry needs in upcoming years.

A PARTNERSHIP TO BUILD A SUSTAINABLE WORKFORCE

• Provided support letters to Department of Defense including a financial commitment for training

• Provided documentation to justify the availability of a trained workforce as part of the bid process

• Invested $2.0M in training center supporting welding, pipefitter, shipfitter, and electrical trades using MMC compatible equipment

• Embedded Training Project Manager in MMC

• Assigned full-time Training Solutions Consultant

• Hired full-time Instructor to design curriculum

• Managed grant administration with BAWDB

• Provided computer labs for MMC sponsored training at no cost

NWTC INVESTMENT

• Designed center with the capacity to meet training requirements, 24/7

• 15,000 square feet

• Welding, electrical, fabrication, and computer workstations space available

• Flexible / Interchangeable

• Walking distance from Marinette Marine

• SMET Construction

TRAINING CENTER

Dean of Corporate Training and Economic Development

DEAN STEWART

NCMMTC OVERVIEW

Current Building 15,596 sq. ft.

Potential Expansion Area 7,121 sq. ft.

Total Building Square Footage 25,054 sq. ft.

PERFORMANCE – ENROLLMENTS

FTE

FY2013 FY2012 Change

28.9 20.2 8.7

ENROLLMENT

FY2013 FY2012 Change

2,520 1,235 1,285

RECEPTION AREA

GENERAL CLASSROOMS

• 2 rooms, 40+ capacity/each

• 1 smaller room, 14 capacity

COMPUTER LAB

25 work stations

WELDING LAB

23 Welding BoothsSeparate Grinding Room

PIPEFITTER/SHIP-FITTER LAB

Multi-Use Mechanical Lab

ELECTRICAL LAB

12 Customized Marine Trainers

Vice President of Human Resources; Fincantieri Marine Group

STEVE BAUE

WHO IS FINCANTIERI?

More than 1,000 engineers and approx. 2 Mln

design hours developed

Fincantieri is

– The # 1 globally

recognized shipbuilder

for business

diversification

– The clear market

leader in all the

segments where present

– The # 1 player in the

development of cutting

edge technological

solutions

– The leading player for

products innovation, with

continuous evolution of

prototypes

Naval

Cruise

Mega-Yachts

Offshore

Repair / Conversion

Marine Systems

Turnover of main global shipbuilders(1)

US$ Bn, average 2010-2012

(6)(5)(3)(2) (4) (5)

WITH A REAL GLOBAL FOOTPRINT

Ingleside

MiamiNew Delhi

Sasebo

Manama

Abu Dhabi(1)

Vũng Tàu

Singapore

Rijeka

TulceaBraila

• 2 shipyards• ~5,600 employees

Romania:

• 1 shipyard• ~700 employees

Vietnam:

Genova(2) Trieste

RomaMuggiano /Riva Trigoso

MonfalconeMarghera

Ancona

Bari

Palermo

Castellammare di Stabia

Sestri Ponente

• 8 shipyards• ~8,100 employees

Italy:

Niterói

Suape(3)

• 2 shipyards• ~1,600 employees

Brazil:

Brevik

Brattvaag

LangstenÅlesund Aukra

Søviknes

• 5 shipyards• ~1,600 employees

Norway:

The Fincantieri Group can leverage on a real global production footprint with 21 shipyards in 3 continents,approx. 20,000 direct employees and access to all high-potential markets

Operating subsidiaries

Representative / Sales offices

Corporate / BU headquarter

Joint venture

Shipyards

Chesapeake

Washington DC

Green BayMarinette

Sturgeon Bay

USA: • 3 shipyards

• ~2,100 employees

FMG COMPANY OVERVIEW

BSC Bay Shipbuilding Co.

ACE Marine

Fincantieri (Italy)

MMC Marinette Marine Corp.

Board of Directors

FMG acquired the Wisconsin operations in 2009

FMG Fincantieri Marine Group

• 4th Largest shipbuilder in the World• 20,000+ employees• 21 yards over 3 continents• Broad portfolio of designs

Sturgeon Bay, WI Marinette, WI Green Bay, WI

• FMG: US shipbuilding• Active in military and commercial shipbuilding,

repair and maintenance

THE “NEW” MARINETTE MARINE CORP.

New Outfitting BldgCompletedNov 2012

Erection Facility ExpansionCompleted Feb 2011

Warehouse Capacity ImprovementCompleted Jan 2012

New Paint/Blast Bldg.Completed Aug 2012

New Cut / Panel Fab BldgCompleted Oct 2011

New Mod Construct Bldg (Started Sep 2012)

Completed Apr 2013

MARINETTE MARINE CORP.WHERE WE WERE

WHAT WE BUILD TODAYProgram Role Yard Client

Littoral Combat ShipsLCS- 1 & 3

SustainmentSupport toLockheed Martin

MMC US Navy

Littoral Combat ShipsLCS- 5, 7, 9, 11, 13 & 15

Sub Contractor(Detailed Design & Construction)

MMC US Navy

Littoral Combat ShipsLCS- 17 & 19 (2014), 21 & 23 (2015) Sub Contractor

(Detailed Design & Construction)

MMC US Navy(Pending Options)

Alaska Regional Research VesselARRV (1 Unit)

PrimeContractor

MMCUniversity of Alaska (Fairbanks)

Fishery Survey VesselFSV-6 (1 Unit) Prime

ContractorMMC

National Oceanic and Atmospheric Administration

Response Boat – MediumRB-M (100+ Units) Prime

ContractorACE US Coast Guard

WHAT IS A LCS?• LCS is a high-speed, agile, shallow draft, mission-focused surface combatant designed

for operations in the littoral environment, yet fully capable of open ocean operations. LCS is complementary to the surface fleet, with the ability to counter and outpace evolving threats independently or within a network of surface combatants.

BAD BOY SPECS:

• 377 feet long

• Draft of 12 feet

• 40 Knots (50+ MPH)

• 3,000 Tons

“Our vision is to become the Best Shipyard in the United States”

• We are shifting from being a construction company to becoming a manufacturing company

• In the beginning we focused on one LCS in order to win the 10 ship contract

• Today we manufacture multiple ships at standardized work stations in a repeatable and continuously improving process

• We are changing our operations and culture to strengthen our focus on accomplishing our work as planned, measuring our performance, improving our processes, and on holding one another accountable for our commitments

• Fincantieri is providing expertise and accelerating our transformation

MMC STRATEGY

• In 2008, MMC approached NWTC for assistance in training our future Manufacturing needs

• MMC and NWTC embarked on an extensive Gap Analysis to determine what skills are necessary and what training would be required

• MMC was looking for a Training Center opportunity very close to Marinette Marine to reduce travel

• A very unique opportunity presented itself for NWTC to buy into a ‘co-op” arrangement to purchase the now current “North Coast Marine Manufacturing Training Center” on Main Street in Marinette

• Refurbishing began in 2011

• The facility opened for training on February 2012

BACKGROUND ON NWTC AND MMC

• The growth of Marinette Marine during 2011 was explosive

• In 2011, Marinette Marine Corporation hired over 500 trades personnel

• While NCMMTC was being built; MMC had to find available locations throughout Marinette just to train

• Temporary trailers for Electrical Training

• Pine Tree Mall for Orientation and Safety Training

• In 2012, Marinette Marine Corporation hired over 300 trades personnel

• In 2013, Marinette Marine Corporation will hire an additional 160 trades personnel

• During 2012 and 2013, over 500 contractors were qualified to supplement our existing workforce to meet our production demands

• Overall, over 5100 new and incumbent workers in have been trained in subjects such as welding, electrical, ship fitting, pipe fitting, blueprint reading and CAD

BACKGROUND ON NWTC AND MMC

• The partnership between MMC and NWTC was the first of its kind in the United States to mesh college training with production needs on this large of a scale in shipbuilding

• Two other shipyards (one in the South and another in the North West) are attempting to copy our success

• It is essential we not only continue our success that we started, but to embrace new and innovative training ideas to stay on the cutting edge of shipbuilding production training

• This will ensure our foothold in shipbuilding production in the North Coast, and develop a deep and broad shipbuilding human resource within Wisconsin shipbuilding industries

MMC AND NWTC CREATED HISTORY

• Union Trades Training

• Initially used for Welding, Ship Fitting, Pipe Fitting, and Electrical

• 2013 expansion to include Pipe Welding and advanced welding skills training

• Contractor qualifications

• MMC Hourly / Salary Training

• Leadership Training

• Professional Development Training

• Professional Skills Training utilizing NCMMTC Computer Lab

• Company Orientation

• Recruiting / Interviewing / Testing & Hiring

HOW MMC IS USING THE TRAINING CENTER

CAREERS WE OFFER:

• Electrical

• Mechanical

• HVAC

• Estimating Warranty

• Machinery

• Piping

• Corrosion

• Structural

• Naval Architecture

• Welding

• Project

• Industrial

• Environmental, Health and Safety

• Human Resources• Information Technology• Inspector• Integrated Logistic Services

(ILS)• Machinery Installer

• Machinist• Maintenance• Material Handler• Non-Destructive Testing Technician• Outfitter • Painter• Planning / Production Control• Plate Shop Operator• Pipefitter / Pipe Welder• Program Management• Quality• Shipfitter• Supervisor• Welder

• Administrative Assistant• Finance• Buyer• Clerk• Contracts• Designer• Drafter• Electrician• Engineers:

• NWTC’s creation of a Marine Manufacturing Certificate and Associate Degrees has raised the bar in shipbuilding training in Wisconsin

• Marine Engineering Technology

• Marine Construction

• Welding

• Marinette Marine Corporation is working with NWTC for future certificates of specialized areas of study that will allow MMC employees to gain knowledge today with the opportunity to continue their education in the future

HOW MMC IS USING THE TRAINING CENTER

A LITTLE PRESS…

A LITTLE CONTEXT (OR WHY WE LOVE NWTC)…

WORKFORCE OVERVIEW

19-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66+0

20

40

60

80

100

120

140

160

Union

Salary

Workforce by Age Category

WORKFORCE OVERVIEW

19-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65 66+0

5

10

15

20

25

Average Yearsof Service -Union

Average Yearsof Service -Salary

Average Years of Service by Age Group

• Fincantieri Marine Group looks to expand the successful training efforts with Marinette Marine Corporation to include similar training for the remaining FMG affiliates

• Bay Ship Building – Sturgeon Bay utilizing the NWTC Sturgeon Bay Campus

• Ace Marine – Green Bay utilizing both Sturgeon Bay and Green Bay Campus

• Marinette Marine – Marinette utilizing both the NCMMTC and Marinette Campus

• FMG will continue to use and expand learning events for both union trades and hourly & salary staff personnel

• Leadership Training

• Professional Skills Training

• Departmental Training

• MMC and NWTC continue to work together with local school systems in Vocational Outreach efforts to raise awareness and interest in the trades of shipbuilding

LOOK TO THE FUTURE