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welcome again and thanks for supporting
most widely watched program in carolina
business and public policy and other
favorite phrase
and knowledge economy
however there is an ocean of difference
between understanding the term
and grasping the implication of the
knowledge economy significance in it
goes well beyond just pushing along our
commercial ventures how pervasive is it
we start to answer with three experts in
just a moment
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this addition of carolina business
review was recorded may eleventh twenty
four
this week's program doctor john hartman
of the north carolina department of
commerce ambrose falling on the south
carolina research authority
rob has seen fire
welcome to our program but gentlemen
good to have you here thank you
pictures aren't well will trouble
technically getting some computer to be
a very patient thank you
i tried to start with you you know
that knowledge economy's been around for
a while but it's up to knock you mister
man we use it we use it interchangeably
with so many things now
what is the knowledge economy and in
well it's a plant
like manufacturing or biotech or
or or retailer tourism what is the
knowledge
well chris i'm sure if you asked
ten different people you might get in
differences on that i'll give you have
my definition which is probably a pretty
broad comprehensive definition into what
you could fit many of the things you
just mentioned
but at its core an economy is simply a
system of allocating scarce resources
and and everything in in the world is
his fears of prince finite
and so we have to have a way of of
combined re combining those things back
in a way that they're valuable and
people can use and people to consume
them
so the system we use in the united
states primarily as the market system
when we say knowledge economy what we
mean is that market system is driven as
much by people's brains now
as it is part of our own
and so whether your manufacturing
something or you're providing a service
the the quality of the of the
mental input that goes into that the way
it's produced
him matters and as much or more now than
it ever happens
and so biotechnology is part of the the
knowledge economy
many factories part of the knowledge
economy make manufacturing is not so
much
going away as it's changing it's
becoming smarter and leaner
and that's what we're talking about when
it comes the littlest anecdote equip
program note uh... debt also are on our
panel was at least planted nora's tolson
from the north carolina biotech center
in inducing technical challenges you
will not be joining us
uh... but ambrose in weighing about
welcome to the dialogue as well but look
let's talk about what stroll down here a
little bit more
houston it didn't you know and
especially in south carolina when uh...
a lot of the old-line textile business a
lot of the old farming business uh...
uh... some of jiji just some of the old
last century type of business is now
being replaced by what south carolina
researcher story's been able to build up
of a nucleus wrath
but weekend and let me start with you
when that one week
when we talk about manufacturing in when
we talk about the knowledge economy
manufacturing has been getting
a lot oppressive labor that there's some
resurgence going on in manufacturing and
arguably it's true
uh... does that is that something that
be you doesn't knowledge economy now
kinda fault in the background in is just
running in the background or is this is
this is the bigger picture blockquote
large economies about doing something
that
that isn't done anywhere else in the
world it's one of the kind kind of thing
and what what does that mean
well that means that when you're doing
manufacturing your brain a process
you're bringing a product you're doing
something that is competitive emina
animal scale and uh...
category of its own
and so prior theory to whatever their
process does not
that's exactly right because what we're
finding is in in a global economy
everyone can do the basics the
commodities well and to be expanding
economy you need to do something
particular you knew and different and
wet on finding in south carolina is this
this is transcending any economic
sectors
accounting it's in lawyers it law firms
everyone is giving the the innovation
message and in south carolina for
instance you mentioned the textile
uh... background that we have
south contest me a lot of changes um...
south i now is eighteenth it's ring to
eighteen th and get preparing for the
knowledge economy we now have an
an automotive sector with advanced
manufacturing you mention manufacturing
last year's south carolina announced
thirteen thousand new manufacturing jobs
and those are hiding and jobs high
manufacturing jobs
and they require
uh... std some advanced degrees and some
advanced
education beyond high school the summer
these are charles assembly-line jobs
is it isn't uh... embrose isn't inhibit
this is a
separate brought to our andy what what
makes after liner one makes more through
money for that matter can special
but ambrose who it mean isn't the
knology isn't everybody doing isn't
virginia doing it is in georgia doing
our other countries doing it what makes
it such a great competitive advantage
that
that we have
royero everybody is doing
the the the challenge to differentiate
what you are for and what you
kam produce verses anybody else for
instance
before the knowledge economy
let me just go to that we always had
competition it's in the free market
place
you buy a pair of shoes it has the best
value to you
is just like it is today states compete
among each other
fred differentiable value for why
companies want to be in that state or
that region in that area
so it's using the clever mindset and
technology driving solutions
that provided better value system
for companies to be located and
participating in what they're doing
if you look at boeing lighted boeing com
to south carolina
there's a lot of reasons sociated labor
force and all that kind of thing but
the implementation of technology and
what they're doing in sourcing products
from around the world coming there in
the charleston resulting in that
fantastic airplane most complicated
airplane bill today
is incredible
incredible
evolution of the integration of talent
people on talk back to april katie i
want to take the guy do the same
question to you what makes north
carolina mitnick's the carolinas
haven't edge when it comes to the
knowledge economy why would repeat the
same everywhere else which would bring
admitted common enough
felt that if you asked those companies
wide widely and
relocate from one state to another or
why they start out that a certain state
one of the first things are always been
a mentions the workforce you'd need to
have a skilled workforce at all levels
not a bunch of p_h_d_'s and only
p_h_d_'s you need
p_h_d_ level workers who need
uh... four-year college degree workers
you need associates agree workers
eighty high school page you know
degree workers better better
well-qualified
and and that north carolina is but a
particular emphasis on that the last
several governors have focused on
education
an abrupt north carolina from in
relatively low in education rankings in
workforce rankings
to fairly high
in those regions in north carolina also
has one of the strongest university
systems as well as one of the strongest
nikala systems
so it's one thing that we always talent
talking companies both within north
carolina
and outside of north carolina at one
conger with carolina
is the work force and has not just a
work force that's all the amenities
associated with that uh... the knowledge
economy worker wants the amenities they
want to be able to ok and let let me
fala not generated a lot just as i don't
like
you know when you talk about that the
past
uh...
the limit or eliminates traces that have
done this worked at it takes
to use a metaphor how far is the
antelope
in the board constrictor
how far along are we have this process
before we speak is it
for which is coming to fruition now
will we see much more dramatic results
in five years or twenty years when is it
it's connected speech coming to fruition
now but it's gonna be coming to fruition
almost uh... perpetual so it means for
it or what right it's constantly
evolving the that what we do is driven
by the
the world economy basement we are in the
world economy
and so it's not just one st competing
against other statements its one st at
company and companies competing against
nations and companies around the world
and so as as the pace increases we need
to increase as well so educational
standards will increase
alone speed to production and
distribution will increase and uh...
everything is just on a faster pace
uh... movement point about workforces
flexibility
and uh... the ability to adapt because
many of the two high demand jobs now
weren't didn't even exist twenty years
ago so if you start your education
career with one track
uh... and mine
you're gonna have a lot of changes the
in store for your career
and in south carolina
they tried of partner with industries to
really a line
with the the program that
uh... universities have with
industries
and they have several programs to do
that you have to do that because the
chain that she is in the technology that
industries are using the changes the
product
uh... it takes a lot of flexibility and
that takes some well well-educated ever
let me see hold on one second amro so
let me stay with you on this one uh...
coming up on whatever future programs
that jamming ernest and ronnie and
renewed probly nor is from the doodle
corn on interest of what person said
he's he has to work in cape through
twelve
to get the outcome much later in the
cycle to get the right people
in the seeds in the jobs and of course
they have to be the right people
uh... i would say from a public policy
standpoint wayne do you get the sense
that there's a not bizarre legislative
priority to get it right even given
tough budgets
do you think the south carolina state
house gets those i mean do they really
get enough to prioritize
you know i think everybody needs to get
it and definitely
where and uh... at the south carolina
bio knows that we need more people in
science and technology and engineering
math
uh... core courses
what you're talking about is really the
pipeline problem yet
even those people who are taking some
those advanced placement courses in
college they are dropping out of the
pipeline by the time to get ca too
uh... college and their they are not
going on to advanced degrees
i think in in many respects what's
happening is we're doing good on content
but not so good an inspiration and
motivation we've sold filled the
classroom with content
that we've got a drain people up with
white why do we need to learn all this
and that's where i think industry needs
to step up
and and get into the classroom show more
research chemist is showman the problem
solving and i think
in south carolina doing that in college
there starting with undergraduate
research programs to tell them the tell
the the student
you know what you're studying solves
problems if you wanna be a problem
solver q_-one make a difference in your
environment in your community
you need to start learning the language
of problem solving which is math and
engineering inside but they they start
with a early early exposure what
researches
yeah amro series unit well just build on
that
a classic case was bawling
seven thousand workers required in under
two years
with the tech school system their in
charleston
and applied laboratory mocking up much
of that facility
the people or there's the skills of
their that can be learned and have been
shown that they've got seven thousand
people through a pipeline
through the text school system that was
in alignment with the tech school in the
industry together
and that workforce is produced at first
airplane is that workforce who do they
cannot do they have who they need
now they have they did and
the nice thing about it
and i'm not speaking for boeing but
since we have collaborations there with
them i can tell you that
their approach here was to train the
workers
quickly multipath
multi provisional do several things
and that has worked and i think it's
been a very successful integration
of the tech school system the education
system with industry coming together and
say and what do you need
will provide jet john here's the and
here's the rub
and we've heard this from
fotis ralph the south carolina chamber
we've heard this from bob morgan with
the charlotte chamber we prefer
businesses in both states
and the rob is that they say
that sounds good but when it comes down
to we can't find all of the qualified
people that want
all these people unemployed papers and
unemployment
eight percent plots in some counties
double
but the phenomenon is their poaching
good workers from each other john have
how do you characterize seven woodward
is that come from and
and how does that connor
for what he wanted any kind of for a
moment and we're trying to go
well what with that
says to me is that
was it's of fairly well known fact that
that the supply of trained to knowledge
workers is less than the dominant
and that's because the needs
the demand for workers is changing very
rapidly
and what that says to me is that all
levels of our educational institutions
need to need to rise in the challenge
they're working on it
but it's but it's it's not something you
can solve overnight is it a funding
issue is it it is wayne said is it
motivational inspiration is shit
it's it's all of the above
um... they you know you can get in the
philosophical questions whether it's a
funny issue were not you know depending
on
did we might have enough resources but
they're not did being deployed
inefficient manner
i can't really addressed that question
but what i would say is that what's
clear is that
the outcome
the the
number of
trained workers is not what it needs to
be
and it's kids going to really take in my
opinion comprehensive approach a
systematic approach or systemic approach
because it's not just a single thing
it's in several faq
uh... just to be fair and people paying
all around here you know i asked you
about the south carolina st apt
do you get the sense that the general
assembly in north carolina did did they
get it enough
to commit the dollars that it will take
to get those
and uh... i wanna see kids
did get those those talented workers
coming out of this the fantastic schools
that we all have here
did they get it enough to fund it that
way i'd think they get the what question
question that is they get the issue they
know there's a under supply of trained
workers
what is much harder to agree on his
behalf how do you get this straight
do you and
do you throw money at the problem or do
you do you if you have more money what's
the most effective and efficient way to
use them where's that money needed
where the resources needed
do you want to have an experience will
based learning program or do you wanna
have a rote learning program do you want
to have testing based
programs in in theirs
philosophical differences on those and
and that's where the
the difficulty comes in as to how i'm
not so much what is is there in the
community college system in north
carolina technical assistance out joanna
seemed to have
stacked up some pretty good successful
you know you cameras to talk about
bowling and well what a great
opportunity there but is there or are we
missing something
by not leaning more into detectable
canary access i with personal experience
here
i think it's incumbent on
companies to forecast and really
set out there what they need for example
when i was manage in the savannah river
site
we had a shortage of skilled fire
protection health protection
uh... certain kinds of craps
and what we did is we went to the fact
that the colleges in the area and said
we need this and they've jumped on it
but the programs together
so i think the workforce thing is more a
combination of industry and the schools
working together to forecast needs
and where i've seen that forecast
it can be delivered in fairly short time
yeah yeah but what was the life cycle of
when you made it did be ask is uh...
than a river
bosses and when you got
when you have to tell about two years
about two years and we we supplied a lot
of the equipment to the tech school a
mock-up this work situations
they wrote the curriculums
you know develop the programs of courses
and in about two years we were getting
some of the nation's best sophisticated
health as its people
that that you've been pres
generally health physics people are not
produced enormous bulls
that's a rarity it's a profession at the
nuclear industry dated
but we were able to overcome that
shortage just by working with the
education system
and county government that kind of thing
to stimulate those programs and get it
done
divinely thank you for just a nuclear
the right way as is so interesting that
summer
uh... rejected in a little flippin
italian restaurant and here's another
buzzword when you're talking about
sports earlier uh... product
public-private partnerships what was
just mentioned illustrates that uh...
tell we're in punjab start that people
rolled their eyes when you talk on a
minority let me give you a specific
example of that what i mean is
just you know and
teeing off the example it was just given
the in north carolina biotechnology is a
very important industry it's uh... it's
notarized fairly ranked third in the
nation in terms of biotechnology
activity
bout ten years ago the biotechnology an
industry came to educational leaders in
the state at all levels community
college university
k through twelve and said we don't have
enough trained workers
and they came together in a partnership
the private sector
income in partnership with the public
sector
in public and institutions of higher
education
end came up with a curriculum in a
system in a way of training these
workers
for the biotechnology industry with
caroline
that's just one small example solution
the boeing example
but it really is a partnership and that
partnership is occurring
worldwide it's it's not just individual
companies competing against individual
companies
it's governments and companies competing
against other governments and companies
increased and that he should
he brought up a very important point is
so important that industry getting
gauged here because from a government
standpoint from a state legislator
standpoint you can spend
the entire budget on education trying to
educate everybody to an to learn
abstract level
when industry says here's some specifics
here's some specifics what we need and
here's what here's what we think you can
do that to get there
then it's just much easier for
legislatures to to appropriate to to go
with the program in in uh... south
carolina we have a commission on higher
education that will will create new
degree programs with the research
universities if that's necessary to
match them but the specific case that
began to engagement with private
industry
is what really can move uh... education
much faster than waiting for
for uh... general assembly to to move
the entire education so so who takes the
lead is it a specific company is it
industry in general is it a chamber
initiative anything else who's on the
point of the spirit soul saw it takes a
how do you get all those people working
together that's them that's the tough
part is not
benefit will it is tough except the
they're all we all have the same
interest when it comes to work force and
education
innovation is the goal everybody ok in
in again there's another term that is so
knock you listen we all agree that
innovation in his got to be in the
d_n_a_ of a company or you're just not
gonna make it so i guess
the question is hop how do you
cruelly who reads the argument who makes
the point
who comes out in a state like south
carolina when you get the south carolina
research it's already got life science
initiative to get u_s_c_ that close and
you got any receipts
you get you guess at sea by all of these
these rate ideas and wonderfully smart
people but how do you get in peace
and as single message too
to to get the money in to get initiative
going because that's a question
ait hit
sorry at
to me that matches clear its industry
it industry has to set the pace and set
the made in the panda skills
one of the skills that we run into
that's maybe a little different than was
thinking about
on this show is
we invest in start-up companies and help
those startup companies get from
basic prototype demonstration to through
the valley of death the venture capital
talk about the human resource need we
need is confident c_e_o_s
and business people who can take a
technology driven entrepreneur and help
him
take that company
through that valley of death for
prosperity
back to me is a skill set that were
shorter on than the kind of skills as
we've been talking about
and supplying workers to end a stroke a
surge on you're on the uh...
you're on the administration's that
uh... we do you agree that industry
needs to drive that
they need to run with the flag
i would say in general yes that that
it's it's it's as much their
responsibilities anybody because they
drive the economy
but there are some cases where industry
may not
always be the leader
and that's because they're often so busy
focused on their on their own companies
that they don't have time understandably
to look at the bigger picture
if there's a more collective needs
foreign industry
it's hard for single company to
necessarily rise to that and so
my office the office of science and
technology works with the board of
science and technology
which is an advisory board for state
policy makers that works with government
and works with industry to bring these
people together
to focus on common needs a common issues
of the spotlight problems
to look down on the horizon and seton
what are the big issues coming form some
who we have about a minute left then in
wayne people you know we can twenty last
on that and i'm gonna give you a last
word here what do you get unit literally
about a minute what do you most excited
about in everything we talked about what
do you look at her
he'll we do this right we're just gonna
knock it out of the park if we can do
so i'm just
really excited about what i see in that
entrepreneurial spirit
really do uh... understand that it's
about starting something new
that we can't pol
be selling each other hamburgers we are
going to do something then
and that messages rippling through all
of south carolina in any number of
different uh... measures
and so that they were taking proprietary
uh... five p intellectual property their
commercializing
are are
research universities want to
commercialize things annum in a stronger
way
we even health systems
commercializing their research in their
clinical practice
there is uh... anew
they got they get it
the the the idea is to have a and create
something that uh... wayne thank you for
being here ambrose courtesy of thank you
john uh... always nice to see if they
could be here as well
uh... thank you for watching your
program if you have any comments or
suggestions you like to watch past
programming
pretty simple carolina business review
dot com
one big long word
until next week and chris wegener
major funding for carolina business
review was provided by it
the duke endowment a private foundation
in charlotte enriching communities in
the carolinas through higher education
healthcare rural churches and children's
services
blue cross and blue shield of north
carolina who was responsible for rising
health care costs joined blue cross and
blue shield of north carolina and many
others in a candid discussion at let's
talk costume dot com
grant fortune and international
accounting tax and business advisory
organization dedicated to serving middle
market companies grant fortune a passion
for the business of accounting
belafonte held including presbyterian in
charlotte in forsyth in winston-salem
our affiliate heart hospitals of the
cleveland clinic consistently ranked
number one in the nation for heart care
blue cross and blue shield of south
carolina probably serving south
carolinians since nineteen forty six
sunoko a global manufacturer of consumer
and industrial packaging products and
provider of packaging services with more
than three hundred operations in thirty
five countries and by viewers like you
think u
promotional consideration provided by
business north carolina magazine
for more information visit carolina
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