Item 09 - Biennial Modification to the PY 2021-24 Regional and Local Workforce Plan

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Orange RPU 2023 Biennial Modification to PY 2021-24 Regional Plan 25 IV. FOSTERING DEMAND-DRIVEN SKILLS ATTAINMENT The local workforce development boards in Orange County and their workforce system partners are committed to supporting businesses of all types and sizes. However, central to the overall workforce development strategy for the region is a focus on industries that drive the economy. In addition to labor market information published by the California Employment Development, industry-specific information and intelligence are gathered from representatives of businesses in priority sectors and help to inform the content and quality of local workforce programs and regional initiatives. A. In-Demand Industry Sectors for the Region The Orange RPU has identified four priority sectors (or industry clusters), each with a substantial current and potential impact on the regional economy based on labor market information. Advanced manufacturing; healthcare; information and communication technology, including digital media; and retail, hospitality and tourism not only drive the county’s economy but contribute to the growth and stability of other supporting businesses, industry sectors, and jobs that lead to economic self-sufficiency and advancement opportunities for Orange County residents. NAICS industry codes included in each sector Industry NAICS Advanced Manufacturing 3241, 3251-54, 3259, 3271, 3279, 3311, 3313, 3315, 3331-3333, 3336, 3339, 3341-3346, 3351-3353 Healthcare 621,622,623 Information and Communications Technology (ICT)/Digital Media 51, 5415 Retail, Hospitality, & Tourism 44, 45, 71,72 Advanced Manufacturing The advanced manufacturing sector has 150,795 full and part-time jobs. The average earnings per job in 2022 was $118,252. There were 5,353 payrolled manufacturing businesses in the Orange County region in 2020. Manufacturing has been declining in the region; between 2017 and 2022, the industry declined by 4%. Nationally manufacturing increased by 1% for the same period. The expected change between 2022 to 2027 is -2%, with a loss of 3,423 jobs in the region. Automation, changes in skills required to perform new tasks, import competition, and a decrease in mobility are all reasons cited as contributions to the decline. Despite the declining jobs, advanced manufacturing is a priority in the Orange RPU due to the number of jobs and the impact on the local economy, given the sector’s total gross regional product (GRP) of $18.6 billion. The sector represents approximately 12.8% of the county’s total GRP. The advanced manufacturing sector has highly specialized and growing advanced manufacturing subsectors in the county. Medical equipment and supplies manufacturing had a concentration in the Orange County region that is five times higher than typical in EXHIBIT 1