How Businesses Advance Industry Sector Partnership Investments: Michigan Energy Workforce Development Consortium

The energy sector has long dealt with labor shortages – a challenge that has only grown as the baby boomer generation retires. At the same time, demand for energy is growing. To meet this demand, we must invest in and build a skilled workforce trained to operate new technologies including solar and wind energy.

Industry sector partnerships (ISP) are a proven way to build strong talent pipelines that train workers for quality, in-demand jobs and help businesses address labor shortages. They succeed by bringing together key stakeholders such as businesses, training providers, higher education, community-based organizations, and labor organizations to create training strategies collaboratively. The Michigan Energy Workforce Development Consortium (MEWDC) shows what’s possible when states and business leaders work together to create and advocate for the growth of ISPs.

In the late 2000s, local labor unions in Michigan and major utility companies including DTE Energy and Consumers Energy recognized that upcoming retirements and general attrition would strain the energy industry’s workforce. Broadening the talent pipeline to provide more on-ramps to energy jobs was critical, but key investments in the training system would be costly.

Given this reality, the State of Michigan saw a need for partnership between businesses, organized labor, K-12 schools, higher education, and the workforce development system. The administration convened these partners to begin discussing the development of an ISP, and in 2008, MEWDC was born.

State and federal funding underpinned MEWDC’s ability to achieve its goals, and business voices championed efforts to secure the investments and advocate for them throughout its lifespan.

KEY LEARNINGS

• Timing is Everything: Enacting workforce development policy frequently occurs when the “stars are aligned.” In this case, businesses were confronting a workforce problem they could not solve alone and sought to build a workforce that reflected the people who lived in the communities that they served. At the same time, a new governor was taking office who prioritized investments in workforce development strategies. Taken together, these dynamics created a situation that was ripe for advancing industry sector partnership policy.

• State Government as a Convener: Securing stakeholder commitment takes real time and energy and can be difficult, so identifying an influential leader(s) that can bring the necessary stakeholders to the table is critical. A Governor’s office, for example, is uniquely positioned to lead this kind of effort and can bring business leaders to the table. As MEWDC took shape, experts from state agencies built relationships with energy companies over time and demonstrated how the state’s workforce and education systems can train workers for quality, in-demand jobs.

  The Michigan Department of Labor and Economic Opportunity (LEO) spearheads the integration of Talent Pipeline Management (TPM) into its sector strategies work with the MEWDC and other employer-led collaboratives.

  “We recognize the consortium’s ongoing efforts are critical as stakeholders work together to develop training solutions that benefit our state’s workers — offering pathways to financial security for themselves and their families — and providing employers with access to a large pool of highly-skilled workers,” said Krista Johnson, LEO’s Deputy Director of Workforce Development. “With the TPM model supporting our efforts, Michigan’s employer-led collaboratives are playing a critical role in growing our economy.”

• Business Voices Were Critical to Advancing Public Investment: Throughout the life of the partnership, more than 600 workers have secured employment in the energy industry, and over 1,450 students have earned an industry-recognized credential. These outcomes galvanized business support for the MEWDC, and spurred companies to advocate for sector partnership advancements at the state and federal levels.
  

As MEWDC Co-Chair Christopher HooSang, DTE Energy Director – Corporate HR ＆ Innovation explains, “By working hand-in-hand with state leaders, our industry has demonstrated the critical need for public investment in workforce development. We’ve provided data-driven insights on job demand, training gaps, and economic impact, which have directly influenced funding decisions. This collaboration has positioned MEWDC to have ‘asking rights’ for national, state, and local public funding, ensuring we can sustain and scale these efforts.”

The coalition’s ability to engage energy companies was built on trust and strong relationships that were built over time in addition to successful outcomes.

• Leveraging WIOA Funding: Policy advocacy does not always involve promoting new investments but taking advantage of flexibility in existing resources. With state support, the Workforce Innovation and Opportunity Act (WIOA) Title I 15% Discretionary Funds were allocated to MEWDC and other partnerships – a choice allowed, but not required, under WIOA legislation.

Today, the MEWDC continues to broaden the talent pipeline for careers in the energy sector and has grown to include more clean energy companies, including energy efficiency and renewable companies in addition to large utility companies. Although they are competitors, their mutual need for workers with specific skills and competencies brought them together to tackle workforce challenges. MEWDC Co-Chair Christopher HooSang adds, “What makes MEWDC successful is that it’s not just talk—it’s action. Businesses, educators, and policymakers are all committed to building a sustainable workforce, and we’ve already seen the impact with hundreds of workers trained and employed.” Maintaining the MEWDC, though, has required strong support from the business community and their willingness to advocate for public investments in skills training.