ADVANTAGE TYPE AND GRAPHICS -JACK GLADE
BANK OF BENNINGTON - GERALD KENEALLY, MARY CALLAHAN
BENNINGTON BANNER - DARRELL BYNE
CHITTENDEN BANK -EVA HESS
COMPUWORKS - JENIFER BUTTLE, ANN MANNS
CRAE PRINTING AND MAILING - ED MESSER
FACTORY POINT NATIONAL BANK -JILL HERRMANN, BARBARA O'BRIEN
GLOBALZ - LEONID GARDER, SASHA GARDER, HOWARD CROSS
HEMMINGS MOTOR NEWS - ABBY SHAPIRO
MANCHESTER CAPITAL - KERI TOWNE
ORVIS
PENNYSAVER PRESS - DAVE WESELEY
SANTÉ MAGAZINE - MARK VAUGHAN, CHRISTINE COSTELLO
SOUTHWEST VERMONT MEDICAL CENTER -CARREL MOORE
STOREY COMMUNICATIONS - SUZANNE OTTOMANELLI

Information-Based Business

Overview
As business and industry increasingly depend upon electronic communication, workers in every sector of the economy will soon require computer and information-technology skills. Experts predict that in the coming decades the strongest economies will be the ones that successfully utilize advances in information technology. According to one recent report:

In the last 15 years, a 'New Economy' has emerged in the United States spurred to one
degree or another by revolutionary advances in information technologies. Some of the most
obvious signs of change in the New Economy are in fact among the root causes of it; revolutionary
technological advances, including powerful personal computers, high-speed telecommunications,
and the Internet. But the New Economy is about more than high technology
and the Internet. Most firms, not just those producing technology, are organizing work
around it. 1

Information-based businesses and occupations are a strong and growing part of the Bennington County economy. They include magazine, newspaper and catalog publishers; Internet database developers and marketers; Web site designers and administrators; computer system technicians; software trainers; banking institutions and investment management specialists. Continued success in this potentially high-growth sector may depend largely on the capacity of the workforce development system here to respond quickly and to prepare workers to respond quickly to the continually changing specific technology skills demanded.

The information technology (IT) revolution is virtually being forced upon all workers in today's marketplace. Current research suggests that rural states such as Vermont may be well positioned to profit from the IT revolution, as the traditional manufacturing base of the U.S. economy shifts toward high-tech manufacturing and electronic commerce:

Between 1969 and 1995, virtually all the jobs lost in the production or distribution of goods
have been replaced by office jobs. Today, almost 93 million American workers (holding
approximately 80 percent of all jobs) do not spend their days making things; instead, they
move things, process or generate information, or provide services to people. The IT revolution
gives companies and individuals more geographical freedom, making it easier for businesses
to relocate, or start up and grow, in less densely populated states, farther away from existing
agglomerations of industry and commerce. 2

The price for increased opportunities is the challenge of adequately developing the workforce.

Current Workforce
Among occupations researched in the Information-based sector, skill requirements and entry-level
pay vary greatly. In broad terms though, average sector pay is generally well above the regional

1) Technology, Innovation and New Economy Project. The Progressive Policy Institute, Washington,     DC. (www.dlcppi.org)
2) The State New Economy Index: Benchmarking Economic Transformation in the States. The     Democratic Leadership
    Council & The Progressive Policy Institute, Washington, DC. (www.dlcppi.org)

average wage, but generally well below pay levels for similar jobs outside our area. National firms' "bargain" labor price can still be outstanding pay in the current Bennington County economy. This presents an economic development opportunity. However, retention and recruitment of sector workers, especially young singles, can be difficult here, especially when the sector's low pay here relative to
that in other areas is compounded by social factors, including our low key night-life. This presents a workforce development challenge.

Our analysis of the Information-based sector is focussed on three sub-sectors and related occupations of specific regional interest: (1) financial services, especially investment management; (2) publishing, including writers, editors, and graphic designers for print and Web formats; and (3) information processing and management, including software development, systems analysis, information system
management, and international data base management. Clearly, certain skills and occupations critical to all these sub-sectors are increasingly needed in other sectors as well.

Publishing
The consensus among graphic design directors at local publishing businesses is that the current sub-sector workforce is lacking the necessary combination of publishing skills and basic computer proficiency. Darrell Byne, at the Bennington Banner, Dave Weseley at the Pennysaver Press, and Ed Messer, owner of CRAE Printing and Mailing, all say they have found only a limited number of local workers with the complete set of skills they need. Hemmings Motor News seeks entry-level workers who display computer software proficiency, not just cursory knowledge, said Abby Shapiro, Art Department Director. Jack Glade, partner in Advantage Type & Graphics, a Pawlet Internet development company, adds, "It is very difficult to find [flexible] workers with spreadsheet skills, the ability to work with databases, advanced desktop publishing capabilities, Web design skills, or [a variety of forms of ] computer programming."

As a result, most businesses are prepared to provide in-house training. The Bennington Banner, Storey Communications and Santé Magazine, among others, all provide on-the-job training for entry-level employees. Santé Magazine and Storey Communications also utilize freelance and temporary workers. However, most businesses express a serious need for more advanced training in these areas and typically find it difficult to provide such training in-house. Recognizing the need for specific publishing skills as well as well-rounded "big picture" employees, the Community College of Vermont and the Southwest Vermont Career Development Center are working with a consortium of above-mentioned employers to develop a specific curriculum for this field.

Financial Services
At Manchester Capital, a small but growing investment advisory firm, one senior investment advisor and one or two support staff are being added per year, according to principal, Ted Cronin. A master's degree in finance, or a related field, is required for senior investment advisors, who manage clients' investment portfolios. Professional support positions require a college degree plus relevant experience.

Salaries in the investment field are exceptionally good, and according to Lance Matteson, Executive Director of BCIC, growth potential for this type of business is notable in Bennington County given its location and demographic advantage over the rest of Vermont. (About 400,000 people reside within a 30-mile radius of downtown Bennington due to the proximity of New York's Capital Region.)

Success in recruiting such firms to this area will depend greatly on the sufficiency of the workforce and the workforce development system.
Among Bennington County banking institutions, officials reported that job applicants sometimes lack the combination of basic technology, customer service and sales skills. Financial institutions routinely provide training in both "soft" and banking specific skills. Basic word processing skills are now required with future emphasis on Internet and data base skills. Though entry level positions are often part time, the schedule, duties and atmosphere make these positions attractive to a certain pool of workers. There is notable turnover however, as Customer Service Representatives - the important "front-end" people - frequently move up to other higher-paying positions within a firm. At one bank, managers are considering increasing pay for these jobs to boost retention. Finding employees appropriate for supervisory and mid-level administrative positions at local banks is also challenging.

Software Development and Information Processing
CompuWorks, based in Pittsfield, Mass, has a satellite office in Bennington. It designs and sells business computer systems and offers custom software programming. It prefers to hire employees with some computer experience and can train higher level skills in-house. But the firm reports challenges in finding individuals combining strong product knowledge with requisite sales and customer support skills.

This is definitely a theme among software development and information processing firms as well: workers with both technical competence and sales or customer service skills are at a premium. Some database management and marketing firms report workforce gaps virtually across the spectrum, from entry level data to high level account managers. Global-Z, which works with international address label databases, is an excellent example of a local firm in this sector for which qualified workforce is crucial. Growth prospects are extremely good if adequately skilled workers can be found. It is obvious that the need for high level computer technicians and programmers crosses all sectors. Representatives from the information systems departments at Putnam Memorial Health Corp., Orvis and Hemmings all report difficulty finding qualified technical people to meet their company's hardware, software and Internet needs.

Employers indicate there is a need for better marketing of existing education and training. Computer training at various levels is provided by the high schools, the Career Development Center, the Community College of Vermont, Southern Vermont College, and several commercial providers, as well as such on-line sources as the University of Vermont, Champlain College, and Norwich University. However the scope of the deficiency of technical and advanced computer skills among local workers, particularly database programming skills, underscores the need for additional enrollment in high-quality training programs, says Alison Ryan, Manager of DET's Bennington Career Resource Center. She sees the need - particularly in this sector - for stronger employer participation in local training as a longer term alternative to reliance on outside recruitment of workers.

Future Workforce
Growth is projected by many of the employers interviewed in this sector. Having a local workforce with the necessary skills, along with effective local training providers, will be imperative if that growth is to occur within Bennington County. Glade comments, "The impact on businesses of this shortage of talent is the inability to grow at the speed necessary to keep pace with the marketplace. I expect that within about ten years, every office and administrative worker will need to have a base level of Internet skills. The need for computer programmers will mushroom, as more and more business functions will be customized for computerized and Internet format." Clearly in some cases business growth is now limited by the unavailability of qualified workers, as the Global-Z case illustrates. However, local firms seem genuinely interested in contributing to development of relevant training, education, and mentoring. Though required proficiency levels will depend upon the industry and the particular occupation, the following specific sets of needed skills have been identified:

• Hardware maintenance
  
• Database programming: such as Foxpro, Visual Basic, Access, and
• FileMaker Pro
  
• Web site development, mainly HTML programming
  
• Publishing: such as Quark, Illustrator, and Photoshop
  
• Network administration: such as Novell, Windows NT, and Linux

In addition, emerging areas for skills development might include digital graphics, wireless networking, and networking to broad band Internet access (T1's, DSL, ATM, etc.). Obviously, the area's ability to achieve access to the latest broad band technologies is a prerequisite to significant business and workforce development in that specialty.

Soft skills such as customer service, communication and reliability will continue to be sought by employers in this sector, along with sales and marketing know-how. Among the most essential general worker attributes desired are (1) the ongoing motivation to learn productivity-enhancing skills, and (2) the flexibility to adapt rapidly to changing technologies.

This sector strongly suggests a need to transcend the traditional workforce focus on "employees" as distinguished from self-employed entrepreneurs. A great need is for entrepreneurial skills development, to nurture homegrown information-sector startups.

RECOMMENDATIONS

• Strengthen training and education in critical information sector skill areas: computer hardware maintenance, database programming, advanced use of publishing applications, advanced Web-site development and administration, and network administration
• Specifically for database programming skills, explore distance learning options and/or collaborations with UVM
• Expand one-year and two-year programs at local educational institutions leading to certificates of proficiency in the needed levels of computer skills, such as those mentioned in the first recommendation
• Develop and aggressively market information-technology oriented entrepreneurial skills development - in cooperation with area businesses, economic developers, and educational institutions at all levels
• Strengthen marketing of area training and education providers' information-technology courses to both employers and employees so as to stimulate enrollment
• Develop a detailed multi-provider investment management business training and education program ready for quick implementation upon the successful recruitment of a major new financial services organization to the area
• Explore development of a highly accessible community information technology center for use by individuals of all ages and situations interested in improving related skills and utilizing distance learning opportunities
• It should be noted that responsibility for implementing these recommendations must be shared by all concerned organizations. It is hoped some such organizations will come forward to act as "leads" in facilitating implementation