BioNetwork
Meeting Long-Term Skills Needs of
North Carolina’s Biomanufacturing Industries and Biotechnology Cluster
H. Martin Lancaster, President
North Carolina Community College System
Report to State Board of Community Colleges
May 16, 2003
SLIDE ONE
I want to bring you up to date on the most important and most exciting economic development effort in the North Carolina Community College System right now …and for the foreseeable future. It is our commitment to meeting the long-term skills needs of North Carolina’s biotechnology and biomanufacturing cluster. You know that I was in Europe with the State Department of Commerce last week. This is what we talked about. This is what Europeans know about. This is what we must all talk about…from now on. We all know that in our state and our nation, traditional production industries such as furniture and textiles are in drastic decline…and will never again be what they were when we were growing up. Yes, the decline has hit North Carolina hard, but it also presents opportunities for our state to move into the knowledge-based new economy industries…and none is more promising that the industries surrounding biotechnology.
SLIDE TWO
Let’s start with a definition. What is biotechnology? According to the North Carolina Biotechnology Center, biotechnology is a collection of technologies that use living cells and/or biological molecules to solve problems and make useful products. Biotechnology, biomanufacturing and bioprocessing are essential parts of today’s pharmaceutical, health care, agricultural and other bioscience industries.
SLIDE THREE
Those related industries make up a "cluster" of potential employers with overlapping requirements and thus overlapping skills needs for employees.
The "cluster" approach to economic development has become very important as our economy continues to demonstrate the danger of focusing specialized training too sharply on a narrowly defined industry. In biotechnology, life sciences and chemical industries, manufacturing employees must function in highly regulated environments, often with sterile clean rooms, and understand exacting quality standards and high consequence of errors. Our approach to training for biotechnology thus takes note of the major opportunities in closely related fields, too.
SLIDE FOUR
Why do we care about biotechnology? As an industrial sector, it’s enormous, it pays well, and it’s growing fast, as our population ages, world population continues to grow, and demand for health care and agricultural products skyrockets. By the end of this decades, health expenditures in our country will account for 16 percent of the gross domestic product, and a lot of that will be drugs manufactured with bioprocesses. The pharmaceutical industry is the most profitable in the United States, with profit margins of 18 percent, more than three times the median… a good industry to have in our state!
SLIDE FIVE
What is North Carolina doing now in Biotechnology? Quite a lot. Our state is home to one of the world’s strongest biotechnology clusters, and we are investing heavily in its continued growth. Our strong work ethic, excellent workforce training, great climate and quality of life, and concentration of medical centers and research universities combine to make us the south’s largest biotech community, and number five in the country. We have more than 32-thousand workers in 228 companies, producing seven BILLION dollars a year in revenues. In a little more than 20 years, that workforce is expected to quadruple. Already, we are number one in contract research, number two in ag-bio research and development, number three in bioprocess manufacturing and number four in pharmaceutical companies, with seven of the top 10 companies having facilities in North Carolina.
SLIDE SIX
Here’s just a sample of the major players in North Carolina’s biotech and bioscience community:
SLIDE SEVEN
Another major player in North Carolina is the North Carolina Biotechnology Center, a private non-profit corporation established in 1981 by the General Assembly to provide long term economic benefit to North Carolina through support of biotechnology research, development and commercialization statewide. The Biotech Center works with public and private universities, industries and of course community colleges.
SLIDE EIGHT
We are especially pleased with our Partnership for Biotechnology Workforce Training, a comprehensive three-part training series.
SLIDE NINE
Biotechnology employers are particularly enthusiastic about workforce training we offer through scheduled maintenance shutdown training. Local community colleges work with major employees to make plant shutdown into productive training time. Examples are:
SLIDE TEN
Our community colleges also offer curriculum programs in several disciplines tailored for biosciences.
SLIDE ELEVEN
Community Colleges are also working to support biotechnology through biotechnology-related program transfer agreements with research universities. Pitt and Wake Tech offer them now, and more are planned. We teach workforce and curriculum programs in related areas in industrial management, manufacturing, other essential skills, and health care, environmental science and agricultural programs that provide employees for end users of many biotechnology products and services.
SLIDE TWELVE
The work underway at Pitt Community College deserves a special
mention for its comprehensive, seamless approach, which includes biotechnology
as part of new Science Academy for Middle Schoolers, BioWork starting in the
fall of 2003,
a Biotechnology AAS with regional collaboration, as mentioned earlier, and a
strong transfer relationship with bioscience/medical programs at ECU. Pitt is
taking advantage of an excellent university and a fine medical center OUTSIDE
the Triangle/Triad areas, offering great potential for spreading the benefits of
this industry.
SLIDE THIRTEEN
So what do we do next? A recent survey underlies the conservative estimate that over the next three years, 6,000 new workers with less than baccalaureate degrees will be needed in biotechnology and biomanufacturing. That does not include all the other related fields. That’s a huge opportunity and challenge for community colleges, where those workers will be prepared. Access to specialized programs is now mostly limited to Triangle-Triad area, with Pitt a notable exception. NCCCS must match training to industries that need workers and people who need jobs statewide.
SLIDE FOURTEEN
How do we do that? With BioNetwork, one of the most ambitious and important initiatives in the history of your community college system. BioNetwork is the focus of the Plan we present today for Sustaining a World Class Biomanufacturing Industry and Biotechnology Cluster in North Carolina. Your System has developed this plan with the assistance of consultant Regional Technology Strategies, Inc. (RTS). Funding has come through the generosity of Golden LEAF Foundation. We are also returning to Golden LEAF for major funds to take BioNetwork from plans to reality.
SLIDE FIFTEEN
BioNetwork will be a cost-efficient, effective way for community colleges to serve biotechnology cluster, biomanufacturing companies and North Carolinians by sharing information, innovations and resources. The only way North Carolina can offer high quality and industry-specific programs and services at a manageable cost is by the North Carolina Community College System assigning key responsibilities to particular institutions. These lead colleges will be part of the economic development strategy for the entire state and will serve as a hub of specialized expertise for the entire state community college system. By providing resources and support to the "cluster centers" and systematically networking all of the colleges that offer education and training for this industry will enable all to have access to the highest quality resources.
SLIDE SIXTEEN
The goals of BioNetwork are to:
SLIDE SEVENTEEN
BioNetwork’s structure will have three major components. First, We will have a biotechnology office at the North Carolina Community College System. Second, We will be part of a central training center, likely to be based at a major university. That location decision has not yet been made. The training center will function as a "pilot plant" using good manufacturing practices (GMP). It will provide both hands-on "capstone" training for community college students in a sterile suite set aside for our use and practical experience for university students. The center will include large-scale labs, clean rooms, and other top-of-the-line facilities to prepare works for biotechnology and the many related fields in biosciences that require careful attention to aseptic environments, quality, precision and regulatory requirements -- including medical devices, food processing, environmental-related industries and more. A mobile training lab will supplement the central center.
SLIDE EIGHTEEN
The third component of BioNetwork consists of the Community College Biotechnology Centers. These will be located on community college campuses selected through an RFP process. The plan calls for five centers to start.
Three address specifics skills:
We also plan two functional centers:
SLIDE NINETEEN
For BioNetwork to succeed, we must have funding and a way to measure its success. The plan calls for a fund for innovation and improvement., a fund for program start-up, facilities, and equipment expansion and modernization, and very importantly, systems to develop performance outcomes measures and a tracking system.
SLIDE TWENTY
When all the pieces are in place, BioNetwork will look like this (reference to org chart on slide. If using without slides, omit.) It will take partnership. It will take focus. It will certainly take money. And the payoff will be a secure economic future, founded on good jobs that pay well -- and produce medicines, food and other products that help us stay healthy and live longer. This is the future of North Carolina’s community colleges…and of North Carolina.
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