byline: Joan Tupponce

When Hugh Joyce advertises to fill a warehouse position he receives at least 100 applications. But when he puts out the word that he is looking for a well-trained heating, ventilation and air conditioning technician, no one responds. “There is a significant shortage of and a tremendous need for these skilled HVAC workers,” says Joyce, founder of James River Air Conditioning in Richmond.

One of the reasons for the shortage is that many young people aren’t interested in pursuing technical positions. “That’s a problem,” says Joyce. “Everyone is saying ‘go to college’ so it’s not in vogue to become a technician. That mindset makes it difficult.”

The heating and air conditioning industry isn’t the only one in need of midlevel skilled workers, those who have more than a high school diploma but less than a four-year college degree. Dominion Virginia Power, for example, finds it difficult to recruit linemen to fill open positions.

“From both a historical and current standpoint, the job of lineman has been and is a difficult position to fill, particularly in Northern Virginia,” says Sherry Easter, staffing supervisor. “In Northern Virginia there is a high demand for this skill set, and there is stiff competition. Right now we have a lineman position in Northern Virginia that has been open for months.”

Each year hundreds of positions go unfilled in industries that range from health care and shipbuilding to truck driving and manufacturing. The shortages are being fueled by two major trends: the retirement of trained workers and job seekers that are not skilled in midlevel technical trades.

According to data from Economic Modeling Specialists International, a CareerBuilder company that works with labor market data, in 2012 over 50 percent of Virginians employed in skilled trades were 45 or older. “About 21 percent of our workforce is qualified for retirement in Virginia,” says Brett Vassey, president and CEO of the Virginia Manufacturers Association. “All industries are pretty much in the same boat.”

The health-care industry also is facing shortages because of growth and retirement. Registered nurses, for instance, are near the top of the list of occupations in demand. Chris Chmura, president of Chmura Economics & Analytics in Richmond, says the need for qualified nurses in Virginia  is on the rise. “There will be 1,500 needed because of growth and 1,100 because of nurses retiring to equal 2,600 per year for the next 10 years,” she says.

In addition to losing workers to retirement, many industries such as manufacturing have jobs that require midlevel workers trained in the latest technology. “The way we make products is different in the last decade because of technology,” Vassey says. “You can’t work with a basic high school diploma today. We need middle-level skills. Sixty-five percent of our occupational demand over the next five years are positions that require middle-level skills.”

Also, Vassey believes there are some misconceptions about jobs in the industry that help fuel the shortage of qualified workers. “People misinterpret manufacturing to be a picture from the 1920s,” he says. “Finally now, young people are starting to see that manufacturing is sexy again.”

In a recent survey by the National Association of Manufacturers’ Manufacturing Institute and Deloitte, 56 percent of industry executives surveyed said they expect the shortage of skilled workers to “grow worse in the next three to five years.” “In this highly competitive global market, our manufacturers’ business success is tied directly to their ability to innovate and the single most important factor in their innovation capacity is a skilled workforce,” says Jennifer McNelly, the organization’s president.

The Virginia Manufacturers Association is working to fill midlevel skills jobs by making sure that job seekers are ready to step into these positions. “That is why we built the Manufacturing Skills Institute,” says Vassey. The institute, sponsored by the VMA and ECPI University, provides training programs for careers in advanced manufacturing.

Jobs that require technical training are “desirable career paths” that can lead to prosperity, says Barry DuVal, president of the Virginia Chamber of Commerce. Technical education, he adds, “is a high priority for Virginia.”

The Virginia Chamber is working with local and regional chambers along with 300 organizations across the state to develop Blueprint Virginia, a state economic business plan. The strategic plan will be presented to the governor-elect in November as a recommendation. One of its priorities is a competent workforce. “We want to link basic education from kindergarten through grade 12 with workforce preparation,” says DuVal. “And we want to increase the emphasis on skills and technical training at the high school and post-high-school level.”

A recent study on workforce challenges conducted by Stephen Fuller, director of the Center for Regional Analysis at George Mason University, points out that one of the state’s major challenges in the next 10 years is “assuring a sufficient supply of qualified workers to fill the available jobs that the Virginia economy has the potential to generate.”

Education is one way to meet that need. One of the state’s big educational pushes is STEM-H training for jobs in science, technology, engineering, math and health care. “Virginia is one of the leading states for STEM-H jobs,” says Virginia’s Secretary of Education Laura Fornash, pointing to careers in health care.

The emphasis on STEM goes hand-in-hand with the Top Jobs legislation signed by Gov. Bob McDonnell in 2011. The legislation creates a pathway to award 100,000 more college degrees by 2025. Early data shows that an additional 22,000 students have enrolled in public institutions since the legislation was passed. “Our job is to prepare the workforce for the jobs that are out there, and industry tells us what it needs,” says Robert Vaughn, staff director for the Appropriations Committee in the Virginia House of Delegates. “This is an evolving process.”

Virginia’s community college system serves as “the bridge that connects good people to good jobs,” says Jeffrey Kraus, assistant vice chancellor for public relations for the Virginia Community College System. “We serve as a launch pad.”

In addition to associate degrees, community colleges in the state offer more than 400 different post-secondary credentials, from a commercial driver’s license to an electrician’s license. “Community colleges are experts in designing and delivering training,” says Craig Herndon, VCCS’s vice chancellor for workforce development.

The dual enrollment program offered by Virginia’s community colleges and public schools allows students to earn college credits while still attending high school. If they earn enough college credits, students can receive an associate degree, a general studies college certificate or both.

Like other manufacturing companies, Richmond-based MeadWestvaco recognizes the gap in workforce preparedness in the commonwealth and is working to close it. The global packaging company has large paperboard and chemical manufacturing facilities in Covington that employ approximately 1,000 workers requiring technical skills and training.

“We think investing in education in science, technology, engineering and math can play a major role in closing the gap,” says Linda V. Schreiner, senior vice president. “We are partnering with community colleges and veterans groups to fill our pipeline with candidates with STEM skills. We have to look at ways to continue to attract people who have technical training.”

CFO Stephen Goss sees his greatest accomplishments at SimVentions Inc. as getting the company started and making sure all the “right corporate structures were in place.”
The Navy veteran co-founded the small defense contractor in 2000. He is very proud that he has been able to keep the company debt-free. “I make sure that our company is in a strong financial position, and that the banks are happy,” he says. “We have had zero debt 80 percent of our company life.”

The company’s 67 percent revenue growth last year presented a few challenges for Goss, who wanted to make sure that everything flowed smoothly. He worked closely with company President Lawrence Root and the leadership team, he says, to make sure that the company “didn’t grow too quickly.” 

Goss is a strong supporter of employee ownership in the business and has been influential in establishing an employee stock purchase plan.

Recently, the company has had to deal with the defense industry’s sequestration and “brown-out periods” with no funding and no contract actions as well as a defense changeover in accounting systems.

While other corporate officers were meeting with the defense industry, Goss was “ensuring we were meeting with the bank, keeping them informed of the situation, what we thought the impacts would be to us and what we thought we would need from the bank in order to make it through the change,” Root says.

Goss also created a business tool that works with budget spreadsheets, helping company leaders and employees understand how different actions can affect the business. “We were able to put that out to all employees,” Root says. “It really made them feel comfortable and it prepared us for what was going on.”

This year the company was planning for 20 percent growth, but that number now seems too low, Root says. “It looks more like 30 to 40 percent growth, and the tool that Steve created was critical to making sure this year was successful for us.”

In his job, Goss draws from both his engineering and accounting backgrounds. “The role of CFO fell into my lap,” he says. “I love the numbers, and I love the administrative types of things that I do.”

Away from work, Goss is involved with the Christian Business Men’s Connection, an organization that provides business and biblical counsel. “These men have been my sounding board,” he says. “Seeking counsel is important.”

Root believes that Goss’ integrity is one of his most important attributes. “He has always been upfront in how he deals with things,” he says. “That discipline on his part has been very good for us. It has allowed us to manage our finances really well.”

Known as a specialist in advising early-stage businesses, Stephen Carroll is making sure that Health Diagnostic Laboratory Inc. continues its remarkable growth. One of the nation’s fastest-growing companies, HDL’s workforce has increased from 11 to nearly 700 employees in less than four years.
The company is a leader in health management. It provides advanced diagnostic testing that identifies genetic and other risk factors that could be missed by traditional testing.

HDL’s data is designed to help doctors provide more effective, customized treatment for patients in four areas: cardiovascular disease, diabetes, metabolic syndrome and fatty liver disease. The company also hires health coaches to assist patients in meeting disease management goals.

Carroll, a Certified Public Accountant, met Tonya Mallory, HDL’s CEO, president and co-founder, when she was solidifying her business plan and raising capital. Mallory’s idea was innovative, but Carroll says he had no idea the company would grow so fast. “It was not evident from day one,” he says. Revenue growth during Carroll’s tenure has exceeded 680 percent and is still climbing.

The company is a good match for Carroll, who is a strong believer in fitness and good nutrition. “I could see that Tonya was the real deal in understanding how medicine is going to have to change and move toward wellness, prevention and diagnosis,” he says. “She had a good vision, and it aligned with my belief.”

Mallory, in turn, appreciates Carroll’s financial expertise and entrepreneurial spirit. “He has a great understanding of a startup environment,” she says, adding that he also believes employees must be flexible and willing to grow with the company. “That is a rare trait. He has been a great asset for HDL’s growth.”

Carroll has been instrumental in all of the financial aspects of the company’s two-phase expansion in the Virginia BioTechnology Research Park. The $68.5 million expansion will more than quadruple its former space when it is completed next year.

“Purchasing and expansion decisions need to be made quickly and therefore financing must already be in place,” Carroll says. “I was able to establish financing arrangements that allowed us to grow how and when it best served the business.”

At HDL, Carroll is known for his friendly, personable demeanor as well as his open-door policy. “He’s the ultimate professional, but he’s very personable with a great sense of humor,” Mallory says.

Carroll describes HDL as a company full of overachievers, “which is good.” He believes his greatest contribution is providing sound leadership in using company resources to fulfill its entrepreneurial vision. “It can be a great drain on resources to be as entrepreneurial as we are,” he says. “I try to help people understand the cause and effect in business decisions from a financial perspective.”

HDL employees appreciate having the freedom to be creative and innovative, he says. “Without great people that step up every day, we couldn’t do what we are doing.” 

Barbara Niland faced a big challenge when shipbuilding giant Huntington Ingalls Industries (HII) became an independent, publicly traded company in 2011. As CFO of Northrop Grumman Corp.’s shipbuilding division, she led HII’s spinoff from the Fairfax County-based defense contractor at a time when her own position in the new company was uncertain.

As the spinoff process evolved, her leadership made her the natural choice to become HII’s chief financial officer. “She worked very diligently and with a lot of energy,” says Mike Petters, HII’s president and CEO.

In transitioning to a new role in the company that soon would join the Fortune 500, Niland had to figure out what she didn’t know about the public side of the industry. “It was like being in school again and doing research,” she says. “I think it helped coming from a business unit. I was able to take advantage of [that] experience.”

One of her first tasks was building a corporate financial team from scratch. An introvert, Niland says the process took her out of her comfort zone. “It took some getting used to, but now I’m enjoying that part of it,” she says.

Petters notes that, when a new ship leaves the dock, its first crew sets the standard for the vessel. He believes that Niland has helped set that standard at HII. “We have taken on the challenge of building the right crew,” he says. “Barbara did that with great insight, grace and flare.”

As corporate vice president for business management and CFO at HII, Niland has direct responsibility for the company’s revenues, which totaled more than $6.7 billion in 2012. In addition to reporting to the board of directors and the audit committee, she plays a critical role in the company’s corporate strategy, which now includes non-shipbuilding projects and manufacturing to support the energy industry.

Niland is seen as a tactical problem solver. “She is very good at taking a really tough issue beyond the emotion of the issue,” Petters says. “She gets to the problem and starts trying to solve it.”

At work she is active in employee development and often mentors employees on an informal basis. “She is a role model for the women of this organization, and she takes that job very seriously,” Petters says. “She reaches out to advise, mentor or coach them along the way.”

A member of the Board of Trustees of the Christopher Newport University Luter School of Business, Niland also mentors students. “One of the things I enjoy doing is getting to meet the next generation who will have this job one day,” she says. “I learn as much from them as they learn from me.”

While she appreciates receiving a Virginia CFO Award, Niland sees herself as part of a winning team, not an individual standout. “What we do to build ships gives me so much passion, and that passion comes from being one of 37,000 employees that make Huntington Ingalls what it is,” she says. “I happen to be the CFO, but it takes everybody to make it a great company.”