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2021 PENNSYLVANIA CLEAN ENERGY INDUSTRYWorkforce DevelopmentNeeds Assessment & GapAnalysis APRIL 2021 2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis [bw] RESEARCH PARTNERSHIPTable of ContentsTable of Contents ..............................................................................................................................iAbout This Report............................................................................................................................ 1Executive Summary ......................................................................................................................... 3 Key Findings ................................................................................................................................. 3 Recommendations....................................................................................................................... 7Introduction ..................................................................................................................................... 8 Clean Energy Jobs in Pennsylvania .............................................................................................. 9 Clean Energy Occupations ......................................................................................................... 12Clean Energy Training Landscape .................................................................................................. 16Clean Energy Employers ................................................................................................................ 20 COVID-19 Impacts & Expectations ............................................................................................ 20 Hiring Needs, Challenges, & Preferences .................................................................................. 24 Qualification Requirements & Promotion Pathways ................................................................ 28Clean Energy Workers ................................................................................................................... 31 Overall Qualifications & Program Participation ........................................................................ 31 Employment Benefits & Career Satisfaction ............................................................................. 34 Career Advancement & Promotion Pathways ........................................................................... 37Conclusions.................................................................................................................................... 41Occupational Career Profiles ......................................................................................................... 43 Assemblers or Fabricators ......................................................................................................... 43 Insulation Workers .................................................................................................................... 44 HVAC Mechanics, Installers, or Technicians .............................................................................. 45 Solar Photovoltaic Installers ...................................................................................................... 46 Energy Auditors ......................................................................................................................... 47 Electricians................................................................................................................................. 48 Plumbers, Pipefitters, & Steamfitters........................................................................................ 49Appendix A: Survey Research Methodology ................................................................................. 50Appendix B: Training Inventory ..................................................................................................... 51 i 2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis [bw] RESEARCH PARTNERSHIPAbout This ReportThe Pennsylvania Department of Environmental Protection (DEP) commissioned BW ResearchPartnership to produce the following Pennsylvania Clean Energy Industry Workforce DevelopmentNeeds Assessment and Gap Analysis Report. As mentioned in the 2020 Pennsylvania Clean EnergyEmployment Report, the clean energy industry had been a growing source of jobs in Pennsylvania forseveral years prior to the global pandemic. The following report is meant to identify how to best supportcontinued job growth in the state’s clean energy technology sectors
For the purpose of this report, the clean energy industry in Pennsylvania are the same sectors as definedin the 2020 Pennsylvania Clean Energy Employment Report. The industry is comprised of five majortechnology sectors—energy efficiency, clean energy generation, alternative transportation, clean gridand storage, and clean fuels—as well as various sub-sectors within each such as solar, wind, efficientlighting, hydropower, smart grid, electric vehicles, and biomass fuels. For more information on whattechnologies and sub-technologies are included in Pennsylvania’s clean energy industry definition,please refer to the 2020 Clean Energy Employment Report or the forthcoming 2021 Clean EnergyEmployment Report
The 2020 Pennsylvania Clean Energy Employment Report highlighted particular strengths in the state’sgrowing clean energy industry.1 Most notably, Pennsylvania is a strong manufacturing hub for windturbines and ENERGY STAR® products. At the same time, the state has ramped up the deployment ofenergy efficient and clean electricity generating technologies, boosting the clean energy constructionand installation industry. Yet despite this growth, eight in ten clean energy employers in the statereported difficulty finding qualified applicants at the end of 2019, citing lack of experience, industry-specific knowledge, and competition as main concerns.2The global Coronavirus (COVID-19) pandemic in the first quarter of 2020 resulted in layoffs, furloughs,and project delays for clean energy businesses across the state. BW Research estimates thatPennsylvania lost a net 13,200 clean energy jobs between March and December 2020 due to the COVID-19 economic fallout—a 14 percent decline compared to the 2019 baseline.3 As the overall economy andclean energy businesses begin to recover from the recession, some employers have indicated that thepandemic has created backups in their project pipeline, resulting in a need for more skilled workers tofulfill project demands
1 For the purposes of this report, clean energy jobs are defined as those that dedicate any portion of their labor hours to theresearch, development, production, manufacturing, distribution, sales, installation, and repair of clean energy and energy-related goods and services; these include clean energy generation, energy efficiency, alternative transportation, clean fuels, andclean grid and storage
2 See generally: 2020 Pennsylvania Clean Energy Employment Report
http://files.dep.state.pa.us/Energy/Office%20of%20Energy%20and%20Technology/OETDPortalFiles/2020EnergyReport/2020PACEIR.pdf
3 For more information on the impacts of COVID-19 to U.S. energy sector employment, please visithttps://www.bwresearch.com/covid/
1 2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis [bw] RESEARCH PARTNERSHIPThe purpose of this report is to identify what partnerships and programs can most effectively train andprepare the Pennsylvania workforce to meet the needs of clean energy businesses in the state. Morespecifically, the research efforts gathered data on the following: o Employer hiring needs and difficulties, including education, experience, and certification requirements; preferred hiring sources; the provision of mentorship, internship, and apprenticeship programs; and typical promotion pathways
o Current clean energy training and education offered in Pennsylvania, both in-person and online, including geographic distribution; energy sector and occupational focus; and degree outcomes
o Detailed data on seven clean energy occupations found in the state’s key technology sectors, including typical career pathway, educational attainment, common certifications, and work experience; career satisfaction; wages; and employment benefits. These data are found in the Occupational Career Profiles section beginning on page 47
Data in this report is compiled from a variety of sources, including the 2020 United States Energy andEmployment Report, the 2020 Pennsylvania Clean Energy Employment Report, and novel to this report,two surveys administered to both clean energy employers and workers in the state of Pennsylvania, andexecutive interviews with clean energy businesses in the state. Survey data was collected in the thirdand fourth quarters of 2020 between August 27th and November 2nd, 2020. The survey methodology isdescribed in Appendix A. The report also synthesizes publicly-available data from the Bureau of LaborStatistics and proprietary economic data from Emsi, a proprietary economic modeling and labor marketdataset
This research effort was originally commissioned before the onset of the global pandemic. While thereare still many uncertainties and it remains difficult to forecast how various industry sectors will recover,this report highlights current workforce development needs and opportunities within Pennsylvania’sclean energy industry. Moving forward, targeted regional workforce development initiatives andpartnerships could assist both clean energy businesses and Pennsylvania residents as they recover fromthe pandemic-induced economic recession
2 2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis [bw] RESEARCH PARTNERSHIPExecutive SummaryKey FindingsOVERALL PROJECTED DEMAND & HIRING DIFFICULTIESThe seven clean energy jobs selected for this study were high-growth occupations prior to thepandemic and will likely remain in demand in the coming years. Over the last five years, the sevenoccupations grew by a collective six percent, and these occupations are pivotal to clean energydeployment. Pennsylvania is a manufacturing hub for wind, hydro turbine, and ENERGY STAR products,which means the state is well-poised to supply nationwide demand for clean energy goods and services,possibly requiring the need for more skilled assemblers and fabricators and other manufacturingpositions. Meanwhile, within state borders, the ramping up of clean energy generation and energyefficiency measures indicates a need for construction and installation workers such as HVAC mechanics,electricians, and solar photovoltaic installers
Despite furloughs and layoffs due to COVID-19, the majority of surveyed employers indicated thatthey expect to have either the same or more workers by the end of the year. Six in ten employersnoted that they expected to have the same number of employees they had in January 2020 by the endof December 2020, and a quarter of firms indicated that they expected to have more workers byDecember 2020 compared to their original January 2020 baseline employment
In general, prior to COVID-19, employers reported hiring difficulties related to a small applicant pool,lack of experience, and competition with other industries. The employer survey found that 84 percentof businesses had some level of hiring difficulty before the onset of COVID-19. Most commonly,employers indicated that hiring difficulties were related to having a small pool of applicants to selectfrom; just over a third of employers indicated that this contributed to their difficulty in finding qualifiedcandidates to fill open positions. About a third of employers also reported that candidates lack the workexperience needed for the job and another two in ten employers cited job competition with otherindustries
Employers especially noted that they faced industry competition for skilled electricians. Several solarfirms mentioned an ongoing shortage for master electricians and generally for electricians withsignificant work experience and industry-specific knowledge. These skills are valuable across a variety ofindustries and are not only clean energy specific
3 2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis [bw] RESEARCH PARTNERSHIPEXPERIENCE, EDUCATION, & CERTIFICATIONSLack of experience or qualified applicants with industry-specific knowledge is especially difficult in theaftermath of COVID-19. During the executive interviews, several employers indicated that lack ofrelevant work experience is particularly prevalent now, as many new applicants to clean energypositions are transitioning from industries that were hardest hit by the pandemic; these include largelycustomer service-related positions such as hospitality, food service, and retail. Without relevantconstruction-related experience working outdoors, on roofs, and with electrical equipment, these newjob candidates lack the hands-on skills required to land entry-level installer positions
Relevant work experience is required by significantly more employers over an academic degree. Ninein ten surveyed employers reported that their highest required level of education is either a high schooldiploma or vocational technical training, yet three-quarters of employers require some amount of workexperience. About six in ten surveyed employers indicated that they require one to three years ofrelevant work experience and 13 percent noted that they require more than three years of experience ina comparable position
Surveyed clean energy workers also cited the importance of relevant work experience in landing theirjob. Fewer than one percent of surveyed clean energy workers indicated that they did not have anyrelated work experience prior to landing their current job; almost three-quarters of current workers hadmore than three years of related work experience. In fact, the biggest obstacle to finding employment inthe clean energy industry, according to current workers, was getting relevant industry and workexperience. About three in ten surveyed clean energy workers reported that this was a considerablechallenge and another 44 percent indicated this was somewhat of a challenge to finding employment;this received the highest rating as an obstacle to finding employment in the clean energy industry
According to clean energy workers, programs that provide on-the-job training were pivotal to landinga clean energy job. The majority of surveyed workers indicated that they have participated in aninternship (65 percent) or apprenticeship (71 percent) program. Of survey respondents that participatedin these programs, between 95 to 96 percent indicated that it improved their ability to land their currentjob
Half of employers require or prefer specific certifications. Fifty-three percent of employers indicatedthat they require or prefer specific certifications. Of these 53 percent, 30 percent reported that theyrequire specific certifications and 23 percent indicated that they prefer, but do not require, specificcertifications. Forty-seven percent of survey respondents reported that they neither require nor prefercertifications. In executive interviews with solar firms, NABCEP (North American Board of CertifiedEnergy Practitioners) certifications were reported to be highly valued yet difficult to find due to a lack oftraining programs and exam courses available in Pennsylvania. For energy efficiency occupations, suchas HVAC mechanics, the EPA certification was noted by several employers as either required orpreferred. For electricians, employers largely indicated that they would prefer electricians to have alicense, though it is not necessarily required
4 2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis [bw] RESEARCH PARTNERSHIPTALENT PIPELINEThe talent pipeline relies mostly on word-of-mouth. Seven in ten employers reported regularly usingword-of-mouth when searching for job candidates. Just under half of survey respondents (49 percent)indicated regularly using online job sites such as Indeed, Monster, and CareerBuilder when seekingqualified candidates. At the same time, surveyed clean energy workers indicated that they regularly useonline job sites and social media sites when searching for a job
PROJECT PIPELINESCOVID-19 has resulted in project pipeline backups for most clean energy employers. In fact, 85 percentof survey respondents agreed that the pandemic impacted their firm’s ability to complete projects, andanother 69 percent reported that COVID-19 reduced their firm’s overall work
Despite a slowdown in installations, project sales did not stall for some clean energy firms. Severalemployers noted that they had continued project sales throughout COVID-19, despite being unable tofulfill installations. As social distancing measures have eased, these businesses are faced with bandwidthissues trying to catch up to prior projects on pause due to the pandemic as well as new projects thathave additionally come online in 2020. Though some firms reported continued sales during thepandemic, the majority of firms (77 percent) agreed that COVID-19 impacted their ability to acquire newcustomers or projects
TRAINING LANDSCAPEIn-person clean energy training programs in Pennsylvania are largely focused on the electrical, HVAC,and construction trades. About a third of all programs in the inventory were for electrical-relatedtrainings, followed closely by HVAC programs, which represent 27 percent of the inventory. Otherconstruction-related programs accounted for 15 percent of programs while clean energy engineering-related training represented 14 percent of programs in the training inventory. Online course offeringsare largely focused on building analysis,4 construction, HVAC, and weatherization
With the prevalence of programs for skilled trades, it is not surprising that the state’s clean energytraining landscape appears largely focused on the energy efficiency sector. Ninety-five percent of in-person programs and 82 percent of web offerings in the training inventory are related to energyefficiency, which includes all construction and electrical programs that are not explicitly focused onrenewable energy
Three counties have the highest concentration of program offerings at physical locations, thoughthere are many clean energy training courses offered online. The counties of Allegheny, Bucks, and4This includes energy auditor, building analyst, multifamily building analyst, healthy home evaluator, and home energyprofessional trainings offered by the Building Performance Institute (BPI)
5 2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis [bw] RESEARCH PARTNERSHIPPhiladelphia each had the highest number of training programs within the county, with 25 to 37programs each; altogether, these three counties represented a quarter of all physical clean energytraining locations. However, there are 627 training programs in the inventory that are offered online,which enhances access for a wider population
EMPLOYMENT BENEFITS & CAREER SATISFACTIONThe majority of surveyed clean energy workers in each of the seven occupations reported receivingboth healthcare benefits and retirement contributions from their employers. Overall, across alloccupations surveyed, about seven in ten workers reported that their company pays for all healthinsurance costs and another 25 percent indicated that their company pays for part of their healthinsurance. More than three-quarters of current workers also reported that their company contributes totheir retirement. For information on healthcare and retirement benefits by occupation, please refer tothe Occupational Career Profiles section beginning on page 47. Additional employment benefits cited byclean energy workers include paid vacation, flexible work hours, company vehicles, transportationstipends, and tuition support
Clean energy workers are also very satisfied with their current careers as well as their opportunitiesfor career advancement. Almost all surveyed clean energy workers indicated that they are satisfied withtheir clean energy career, and more than half reported that they are very satisfied. Furthermore, nearlyall surveyed workers expect to advance, either within their current company or at another company inthe same industry. In fact, 78 percent of current workers expect to be promoted within their currentcompany, while 17 percent of respondents expect to advance at another company in the same industry
Less than one percent of current workers indicated that they expect to remain in their current positionsbut move to another industry or field
6 2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis [bw] RESEARCH PARTNERSHIPRecommendationsThe clean energy industry has the potential to contribute to Pennsylvania’s economic recovery. Manyclean energy occupations have higher hourly wages compared to the national and statewide median aswell as jobs in industries hardest hit by the pandemic, such as hospitality, food service, and retail
Median hourly wages for the seven occupations examined in this report were between $17 to $33 perhour. By comparison, food preparation and serving-related occupations in Pennsylvania had an hourlymedian wage of $10.72 while retail sales workers earned an hourly wage of $11.53.5 Furthermore, cleanenergy workers are more likely to receive healthcare and retirement benefits compared to nationalprivate sector averages and are very satisfied with their careers and their opportunities foradvancement. With often lower formal educational requirements than a four-year degree, the cleanenergy industry is largely accessible with fewer barriers to entry and can serve as a source of high-quality jobs for displaced workers
However, in order to create more jobs and support displaced worker transitions, clean energybusinesses need workforce development support that creates partnerships with training providersacross the state to provides hands-on training and industry-specific knowledge. With these supports, theCommonwealth of Pennsylvania and programs that support a clean energy economy can help to meetthe needs of clean energy businesses in the state that are unable to find qualified workers to fulfillproject demand. In training the next generation of clean energy workers, the state will also be well-poised to meet the demands of the coming energy transition
ACTION ITEMSThe following are recommended action items based on the research findings that could support cleanenergy workforce development in Pennsylvania:Facilitate on-the-job training opportunities and hands-on industry experience for workers. Relevantwork experience was considered important by both employers and current workers, yet difficult toobtain for both. The Commonwealth can facilitate opportunities for workers to get on-the-job training(OJT) through apprenticeships or internships at a lower risk to companies. These experiential trainingscould also be tacked onto existing clean energy training programs that do not have a hands-on trainingmodule or component. Examples of successful programs in other states include the Massachusetts CleanEnergy Center’s Vocational Internship program, which funds internships for vocational high schoolstudents at clean energy companies.6 The Workforce Development and Training Chapter in NYSERDA’sClean Energy Fund Investment Plan facilitates employer and training provider partnerships to developOJT training modules, internships, and apprenticeships. In Rhode Island, the Department of Labor and5 Statewide wages for food preparation and serving-related occupations and sales workers are from the Bureau of LaborStatistics, Occupational Employment Statistics, May 2019
6 https://www.masscec.com/vocational-internship-program-0 7 2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis [bw] RESEARCH PARTNERSHIPTraining partners with the Apprenticeship Rhode Island program, part of a national initiative7 that workswith employers to build apprenticeship programs across a number of industries including manufacturingand technology. The program has a goal of doubling the number of workers trained throughapprenticeships within five years
Support curriculum sharing and procurement. It is a lengthy and expensive process to developcurriculums from scratch. The DEP could facilitate round table discussions with clean energy employers,identifying key skills and certifications, then assist training providers in either finding curriculums alreadyin use or in procuring nationally accredited curriculums. An example of this would be offering moreopportunities for NABCEP certification and testing within Pennsylvania. NABCEP is particularly suited forthe solar industry because it includes OSHA training and is consistently up to date with standards
Create a pipeline for displaced workers to transition into the clean energy workforce. Individuals mostnegatively impacted by COVID-19, including hospitality, retail, and food service workers, may need moreassistance navigating the educational and experience requirements of the clean energy workforce. Solaremployers in particular reported that the high volume of hospitality workers applying for installationpositions lack experience and industry-specific knowledge. Pennsylvania could consider supportingprograms that connect these individuals to training providers in the state that give them basicknowledge and skills to prepare them to enter the clean energy workforce. The Pennsylvania College ofTechnology can be used to provide the initial industry-specific trainings, as they are already equippedwith virtual seminars focused on energy efficiency skills. The online simulations include virtual walk-throughs with a hands-on skills training module as well and many courses have reduced the timerequired for completion, which means these trainings are viable options for displaced workers
Promote manufacturer-specific certifications for clean energy technologies. These would include air-source heat pumps or high-efficiency heating and cooling technologies and could be integrated intoexisting training programs as an additional component or module. Manufacturers such as Rinnai, Fujitsu,Carrier, Trane, or Mitsubishi often offer certifications to demonstrate both industry- and technology-specific knowledge. Such certifications would be valuable to both new and incumbent clean energyworkers to improve skills and expertise with specific technologies. Pennsylvania could facilitateconnections between employers, manufacturers, and training administrators in the state to determineways that these certifications can be incorporated into existing programs
Introduction7 Apprenticeship Rhode Island is part of the American Apprenticeship Initiative (AAI), which was launched by the U.S
Department of Labor in 2015. AAI funded public-private partnerships across the country between employers, organized labor,non-profits, local governments, and educational institutions to train and hire apprentices in high-growth and high-techindustries. For more information, please see https://innovativeapprenticeship.org/wp-content/uploads/2017/08/AAI-Success-Stories-Summer-2017.pdf. c 8 2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis [bw] RESEARCH PARTNERSHIPClean Energy Jobs in PennsylvaniaBetween 2017 and 2019, the clean energy industry in Pennsylvania saw a nearly nine percent growthrate, creating just under 7,800 new jobs for residents across the state in only two years. In the lastquarter of 2019, the clean energy economy totaled to about 97,200 workers in the labor force (Figure 1)
Before the onset of the COVID-19 pandemic, the clean energy industry was growing faster than theoverall statewide labor market by four to seven percentage points annually. At the end of 2019, cleanenergy jobs accounted for almost two percent of all jobs in the state.8F IGURE 1. CLEAN E NERGY EMPLOYMENT, 2017 – OCTOBER 2020 98,000 97,186 10.0% 9.0% 96,000 8.7% 8.0% 94,245 94,000 7.0% 6.0% 92,000 5.4% 5.0% 90,000 89,391 4.0% 88,000 3.0% 2.0% 86,000 1.0% 84,000 0.0% 2017 2018 Q4 2019 (pre-COVID-19) Total Employment Cumulative % Change8Statewide employment data is taken from the Bureau of Labor Statistics, Quarterly Census of Employment and Wages. Dataaccessed December 2020
9 2021 Pennsylvania Clean Energy Workforce Development Needs Assessment & Gap Analysis [bw] RESEARCH PARTNERSHIPCOVID-19 IMPACTS TO THE CLEAN ENERGY LABOR MARKETFollowing two years of marked growth, clean energy businesses were hard hit by the global pandemic
Between March and December 2020, Pennsylvania’s clean energy businesses have shed a net 13,200jobs, wiping out any job gains from 2017 through 2019
Losses were concentrated in March through May, at the peak of business closures and social distancingmeasures. Throughout these three months, the clean energy industry lost more than 17,000 workers
Since June, however, the sector has seen gradual gains in employment, adding back about 4,000 jobsfrom June through December (Figure 2)
Despite these job gains over the last several months, overall employment across Pennsylvania’s cleanenergy businesses remains six percent below the 2017 baseline and about 14 percent below the 2019baseline (Figure 3)
F IGURE 2. MONTHLY JOB C HANGE , MARCH 2020 - DECEMBER 2020 2,213 207 322 325 439 166 320 -462 -6,389 -10,346 March April May June July August September October November December 10
Please refer to the 2020 Clean Energy Employment Report or the forthcoming 2021 Clean Energy Employment Report. The 2020 Pennsylvania Clean Energy Employment Report highlighted …
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