Introductions
California Manufacturing Technology Consulting
Kathleen Webber, San Diego Business Liaison
Rocio Leon, Manager of Workforce Partnerships
San Diego Workforce Partnership
Robert Chu, Business Programs Specialist
Why conduct Layoff Aversion?
“direction and guidance for conducting layoff
aversion activities as required by the federal
Workforce Innovation and Opportunity Act (WIOA)”
WSD16-04
But it’s more than a requirement…
Problem 1
High unemployment rates meant we had more
money to spend in addition to our general Rapid
Response activities.
We couldn’t hire people because funding
fluctuated year to year.
Problem 2
• ~3,200 manufacturing companies in SD County
• 82% of SD manufacturing companies have fewer than 20 employees
• Companies with 50 or more layoffs are required to issue a WARN
• Majority of SD manufacturing firms did not report layoffs
It happened once upon a time at a conference
just like this one…
SDWP and CMTC, two California-based
organizations, connected at a conference in
Washington, DC.
So how did we implement Layoff Aversion
Services?
In order to start a new partnership, we first had to
fix how we did business with
vendors/contractors.
We used to treat them like subrecipients.
Problem 1 (again)
At the time, our current Rapid Response (RR) contractor was treated as a subrecipient; they had to track every penny, nickel and dime.
This limited competition:
• Incumbent won every RR Request for Proposals (RFP)
• Barriers to entry for other organizations
Solution 1
We changed our Rapid Response contracts from
cost reimbursement to pay-for-performance
• Benefit 1: Increased competition for Rapid
Response vendors
• Benefit 2: Made it easier to do business with
companies from year to year
Remember…
• Rapid Response funding fluctuates so you
want to spend as little money as possible on
unnecessary things (like administrative costs)
• Layoff Aversion service agreement with CMTC
can be drafted in less than an hour
Data Intake Form
San Diego WDB At-A-Glance and Intake Form Rev 2017-08-24
Workforce Development Board Data Intake Form
Date Submitted 11-27-17
Company Name:
Address:
Product/Industry: Custom Hose & Gasket
Company Contact Name: Contact Title:
Contact E-Mail: Contact Phone:
CMTC Account Owner: Kathleen Webber Union Shop? [ ] Yes [x] No
Current Number of Full Time Workers: 35 Current Annual Sales: 13M
Number of Full Time Workers One Year Ago: 37 Annual Sales 1 Year Ago: 13M
Number of Jobs at Risk: 13 Minimum Commitment of Jobs to Retain*: 10
Top three to four Early Warning Signs that apply to customer (cut and paste from Early Warning Signs checklist):
1. Market Issues: Lack of competitive advantage
2. Quality – barrier to entry without ISO Certification
3. Business Climate – Increase in employee costs, tax uncertainties
*A retained job equal someone that remains in full time employment for 90 days after project completion Company background:
supplies both custom and off the shelf hose and gasket products. Founded in 1979 has proudly served customers for over 35 years. Their reputation of quality and integrity
assures clients of reliable and cost effective solutions. As a refurbishment resource for the defense and industrial industry they are expert at solving material requirements and expedited turnaround times.
They are proud of their bedrock principles of fair pricing, quality products, expert advice, and by standing behind what they sell. They are number one in Southern California because they have never compromised these values.
Problem statement:
is losing critical contract opportunities because they lack the necessary ISO 9001:2015 certification required by an increasing number of companies, including current customers. ISO certifications will continue to be required and without meeting these manufacturing requirements,
will be unable to meet the demands of current and potential clients. Many companies turn to for fabrication and repair of critical hose and gasket assemblies. Due to their lack of a certified ISO9001:2015 certification they are unable to secure valuable contracts. This year alone they lost a contract with for a 50K per year long term contract due to lack of certification. Without ISO certification, potential and existing customers will not send work to Westflex.
laid off 2 employees this year to help stabilized their decline in margins. Sales have been flat for the last 2 years. ISO certification will mitigate the need for additional reductions in staff. They are eager to gain back the reduction in margin by improving their quality system and securing new contracts to avert additional layoffs.
CMTC Proposal and Anticipated
Outcomes
San Diego WDB At-A-Glance and Intake Form Rev 2017-08-24
Proposed solution (CMTC service): CMTC will provide assistance in preparing the company for ISO certification, including: 1. Quality System Analysis 2. Creating and/or modifying the company’s quality management system documentation 3. Documentation Review of the company’s Quality Manual, Procedures, Templates and Forms 4. Third party audit prep audit Positions Impacted: Sales, Production, Quality Estimated Completion Date: May 2017 Estimated LOA Costs: $10,000.00 Anticipated outcome (quantified impact):
• Retain at-risk employees
• Ability to penetrate the market based on ISO 9001 Certification
• Satisfy customer requirements that lead to retention
• Ability to meet current customer demands and retain customer base
What did we get from working with
CMTC?
• Benefit 1: They do all the paperwork with
employers
• Benefit 2: They track every metric so we look
good
What did we get from working with
CMTC?
• Benefit 1: They do all the paperwork with
employers
• Benefit 2: They track every metric so we look
good
• Benefit 3: They develop strong relationships
with employers on our behalf
• Once companies recover, we can outreach
to them for other business services (e.g.,
internships, Customized Training and
placements)
Contact Information
California Manufacturing Technology Consulting
Kathleen Webber, [email protected]
Rocio Leon, [email protected]
San Diego Workforce Partnership
Robert Chu, [email protected]