Key factors of attractiveness for Airport Areas and the special role of human resources
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The document discusses the strategic importance of airport areas for regional economic development, highlighting their role as job creation engines and the challenges associated with human resources in these regions. It emphasizes the need for a skilled workforce to match the diverse job opportunities created by airports and the importance of creating favorable urban environments to attract talent. Additionally, it outlines strategies for workforce development, social inclusion, and improving the attractiveness of airport areas to residents and businesses.
Key factors of attractiveness for Airport Areas and the special role of human resources
- 1. 1 Key factors of attractiveness for Airport Areas and the special role of human resources M. Vincent Gollain, IAU Ile-de-France, Director of the Economic Department 2016 SAA Conference, Atlanta, USA Atlanta, Thursday, September17, 2016
- 2. 2 I. Airport Areas, strategic drivers for the attractiveness of urban regions II. The challenges of human resources © Sébastien Le Clézio for Hubstart Paris Region Structure of the Presentation
- 3. 3 Airport Areas, strategic drivers for the attractiveness of urban regions © Atlanta Aerotropolis Alliance, 2016
- 4. 4 An airport area is a strategic factor of regional economic development “The empirical results show that a 10 per cent increase in passenger enplanements in a metro area leads approximately to a 1 per cent increase in employment in service-related industries” (at regional level). Jan K. Brueckner, economist
- 5. 5 Airports Areas are Job-creation engines Source : InterVISTAS, Economic Impact of European Airports, 2015
- 6. 6 The case of Paris CDG international Airport 680,000 inhabitants in 1982 (7%) 835,000 in 2011 (7%) 190,000 jobs in 1982 (4%) 320,000 in 2011 (6%) Airport Area:
- 7. 7 The Paris CDG Airport Area within the Paris Region Economic System Seine Gateway Bioscience Corridor Sustainable City & Tourist Cluster Paris CDG Airport AREA Innovation Hub Business District Source : Hubstart, 2014
- 8. 8 Airport Areas are the new hotspots of the Urban regions Economic Development Denver, USA Amsterdam, NL Shanghai – Pudong AA, CN
- 9. 9 Airport Areas have become a strategic asset for the regional economic development Airport Areas have become regional economic accelerators to: . global supply chains . business people . air passengers and airport-area visitors . ….and as a result of that we are seeing: . Rapid economic development around many major airports . “Marketing and branding strategy” Airport areas have become significant employment, shopping, tourist, trading and business destinations in their own right
- 10. 10 The DNA of Airport Areas is: Connectivity For :
- 11. 11 The spatial Impact of the Economic Development: The “3AR” Model. Airport City / Aerotropolis / Airport corridor / Regional level
- 12. 12 Focus on the Aerotropolis model Source : John Kasarda and Greg Lindsay Economic development strategies aim to diversify the economy of the airports areas by attracting non-aeronautical activities.
- 13. 13 List of activities attracted to an Airport Area 40% of global airports’ revenues deriving from the non-aeronautical sector, (Source: 2015 ACI Airport Economics Report) Source : IAU Ile-de-France, 2015
- 14. 14 Example. ATLANTA AIRPORT AREA : FIELDS OF SPECIALIZATION “People and businesses, including Fortune 500 companies are moving to Atlanta because of the airport. There has been a recent growth in the automobile and movie industry. Porsche has decided to build its headquarters for North America next to the airport on a brownfield zone, while Kia motors built its plant on the south of the airport and more manufacturing is on the way”. Michael Cheyne, Director, Atlanta Airport, 2013 Source : Atlanta Aerotropolis Alliance, 2016
- 15. 15 Example. PARIS CDG AIRPORT AREA : FIELDS OF SPECIALIZATION Specialization of the Airport Area at regional level: Logistics – Wholesale – Hotels – Retails – Construction– Commercial – Business Fairs Targeted clusters : Executive aviation, air freight, safety and security, eco activities, airport services, corporate meetings and events. Targeted functions : showroom, training centre and research and innovation facility. Source : IAU Ile-de-France, 2015
- 16. 16 Example. SHANGHAI AIRPORT AREA : FIELDS OF SPECIALIZATION “Pudong International Airport is the air gateway to Shanghai. It is one of the 3 largest airports in China. The Pudong Airport free trade zone with a surface of 3.59km² (1.81km² inside and 1.78km² outside the airport) was established in 2009. Priority sectors for the zone are: international cargo transit, procurement and distribution, international express transit, repair and test, financing leasing, warehousing, export processing, commodity exhibition and its supporting business finance insurance and agency”. Jiewei Jiang, Deputy Director, Shanghai Free Trade Zones Administration, 2013 Source : www.ftz-shanghai.com
- 17. Jobs Creation and Human Resources Challenges
- 18. 18 People, People, People Many countries and cities have been able to develop themselves due to the will, capacity and skill of their human resources.
- 19. 19 Workforce is a key location Criteria for Companies “Sustainable success in attracting and retaining corporate business investment requires excellence across a range of location factors, but chief among them is workforce”. Phil Schneider, President, of Schneider Consulting, Site Selection, 2014
- 20. 20 2 Main issues for Airport Areas regarding Human resources . Quantitative Issue. Airport Areas create a large number of jobs and more and more diverse professions. . Qualitative Issue. Airport Areas face a qualitative evolution of jobs. They have to match at local level the needs of companies with the qualification of the population. Companies and local authorities have to train people to help them to get new jobs. Social inclusion is key in some Airport Areas.
- 21. 21 4 Key Factors of success regarding Human Resources . Support local employment by increasing the number of jobs that benefit the inhabitants of the Airport Areas. Creating new opportunities for local inhabitants . . “Find the right person, in the right job, with the right skills, at the right time”. Workforce Development policies are key factors of success . Attract human resources: commuters, new inhabitants and talents to the airport area. For non aeronautical activities, companies look for talented workers. . Create an attractive urban environment. Create amenities that people and workers of Airport Areas like.
- 22. Key issue n°1 : Support local employment
- 23. 23 Worforce is key for the future of Airport Areas . Dr Stephen Appold and Dr John Kasarda : 3.1 million of jobs were located in 2009 within a 2.5-mile radius around the 25 busiest passenger airports in the US (2.8% of total US employment); over 7.5 million jobs within a five mile distance (6.8% of all US employees) and 19 million jobs (17.2% of the US total) within 10 miles. . Cape Town, South Africa, feb. 2016: thousands of new jobs can be created in the development of an Aerotropolis surrounding Cape Town International Airport. 3,000 jobs stand to be created by just one regular scheduled long-haul service. . Hamilton, Canada, Jan. 2015: the new developments will create roughly 20 to 25 thousand jobs. . Brisbane, Australia, 2015: the new developments of the airport will create several thousands of jobs Airport Areas don’t have enough local workforce to meet the needs of businesses. How to find employees for the companies ?
- 24. 24 Invest in transportation to facilitate mobility By 2030, the Greater Paris Express: • 205 km of automatic metro lines; • 68 new stations will connect the Grand Paris clusters with the three airports and TGV stations; • 2 million passengers will travel on this new network every day; • Travel times will be significantly reduced, especially from suburb to suburb.
- 25. 25 Create bridges between the airport and your Community : Hounslow (Greater London) . 16,000 local residents are directly or indirectly employed at Heathrow Airport, predominantly in lower skilled occupations. . The Council cooperates with Heathrow Airport and Heathrow Academy Objectives : - diversify employment at the airport for residents - ensure residents can access suitable training
- 26. 26 Social inclusion . Airport Areas are very dynamic, but . Some Airport Areas concentrate social difficulties and depressed areas . A high rate of residents don’t have formal qualification or have different qualifications from those sought by companies . In these SAA, the economic development created by the Airport Area fuels initiatives of social inclusion. . According to the policy makers, it’s key for Airport Areas global competitiveness.
- 27. 27 Attract companies / people / workers in renovated areas 27 . Public authorities finance a large number of renovation projects and demolition of buildings. . Public authorities also try to attract companies, entrepreneurs and workers to these areas by creating “Special Economic Zones” or attractive “New redevelopment zones” Example : Terre d’Avenir, in Sevran, a major urban renewal and development project (120 hectares) with 2 new stations of the Greater Paris Express. Goal. Make the City a regional destination for: . Business : . Living. . Sports & play. Renovation : Aulnay sur Seine
- 28. Key issue n°2 : A question of skills
- 29. 29 What type of employment do AA need? http://www.statista.com/statistics/434359/number-of-direct-airport-employees-in-europe-by-employment-type/
- 30. 30 Today, the professions in Airport Areas are more diverse than ever before Airport areas create jobs with a large range of diversity from low qualification jobs to executives According to FlyingWay, more than 250 types of jobs and carriers are possible in Airports. At the Airport Area Level, a large and diverse number of jobs are available. Aeronautical jobs Non - Aeronautical jobs Competencies of the workforce - - - + + + Pilots CEO Consulting Group Manager terminal Marketing manager Sales Agent Security Aeronautic eng. R&D engineer Non qualified technician Show-room employee Taxi driver Flight attendants Trade officer Mechanic Source : IAU Ile-de-France, 2016 artist
- 31. 31 Higher education is key to economic development (but it's not as simple as you think) • The widely adopted human capital view is that higher education increases skill and knowledge and results in higher income. • But the researchers behind a new study conducted in South Africa say many more things need to be taken into consideration: geography, sectors, available skills and education systems and networks of companies are all important factors. • Airport Areas need 1. professionals across all sectors – doctors, teachers and engineers will be vital to our future success, and education is central to producing those professionals.” 2. Professionals with capabilities dedicated to the sectors and firms located in the Airport Area (today and in the future)
- 32. 32 How to define yous strategy? Measure your KSAOs Knowledge, skills, abilities and other characteristics Identify the attributes - the KSAOs – of the active population of your Airport Area : - Knowledge: "A collection of discrete but related facts and information about a particular domain...acquired through formal education or training, or accumulated through specific experiences.“ - Skill: "A practiced act". - Ability: "The stable capacity to engage in a specific behavior“ - Other characteristics: "Personality variables, interests, training, and experiences"
- 33. 33 Link your KSAOs analysis with your strategy Match the attributes of your Airport Area with the needs (existing and projected) of businesses. Attributes Needs of Cies (existing and targeted) SWOT Analysis What to do ? Knowledge competencies Skills competencies Abilities competencies Other characteristics competencies Source : IAU Ile-de-France, 2016 A successful economic development strategy of an Airport Area must focus on improving the knowledge, skills, abilities and key others characteristics of the area's workforce
- 34. 34 What can you do in the strategic field? Key aims of your strategy : 1. Clusters and Functions : support local employment growth and enterprise through improving access to skills and reducing mismatch between demand and supply 2. Improving all young people’s achievement and progression into employment 3. Reinforcing pathways into work for the unemployed and progression in work for low paid residents 4. Facilitating the access to information, advice and guidance and labour market information
- 35. 35 What can you do in the operational field? Examples of Activities : • Developing shared responsibility for skills with partners – businesses, public sector, voluntary sector, training providers, residents – and creating a local commitment to moving people into work, and giving them opportunities to progress in work • Building strong and creative relationships between business and schools, further education and higher education to support skills, innovation and competitiveness • Create relationships with the main companies/administrations and to influence the way they recruit, retain and develop staff • Develop local Job Forum • Target new businesses which are looking for employees close to your Airport Areas inhabitants competencies • Help mobility of inhabitants from the places where they live in the AA to the place where they can find a job You have to put in place activities which will reinforce your “workforce assets”
- 36. 36 Create bridges between Economic Development & Employment The French State, the Regional Council, Paris Airports and some others players have created the GIP emploi Roissy CDG, an association dedicated to reinforce bridges between Companies, Education & Training Policies and Social Inclusion. To allow the inhabitants of Paris CDG Airport Area to benefit from economic Development, the GIP is in charge to : • Anticipate needs of the companies • Coordinate training session • Associate stakeholders • Facilitate the recruitment of marginalized populations
- 37. Key issue n°3 : Attract new human resources
- 38. 38 Where do the benefits of job creation by AA go ? New Jobs Occupied by people living in the Airport Area (30% to 50%) Occupied by people living outside the Airport Area (50% to 70%) In the Regional Urban Area (70% to 90%) Outside the Regional Urban Area (10% to 30%) Source : IAU Ile-de-France, 2016
- 39. 39 How to attract commuters and new inhabitants ? Airport Areas don’t have a very strong and positive reputation among executives and qualified workers. To attract these workers, the Airport Areas must put in place a coordinated action plan : - Change the reputation of the Airport Area and target specific occupations sought by companies with the help of territorial marketing - Increase the accessibility from and to other sites in the urban region - Retain people who are already working in the Airport Area - Offer opportunities to non-residential workers to find a place to live with their family (create edge city such as Las Colinas close to DFW)
- 40. 40 How to attract commuters and new inhabitants by using a marketing / branding strategy ? Create a public/private alliance to market the AA Brand the Airport Area as a destination (create and reinforce the reputation / image). Change the reputation : An Airport Area is not only infrastructures! Create and reinforce affinities between the AA and the targeted clients Create a Commercial funnel of conversion Put in place a retention strategy Use the social networks to disseminate a positive image (word- of-mouth communication)
- 41. Key issue n°4 : Create amenities that people and workers like
- 42. 42 Create amenities to attract new inhabitants and workers Airport Areas are rarely attractive to workers. By creating places where people feel good, they are more likely to want to stay, to return and to tell others about the experience. The differences between ‘just a regular public space’ and a ‘great pubic place’ can be viscerally felt by people – a sense of welcome, of belonging, of pleasure and of sharing. Source : www.placeleaders.com
- 43. 43 Create amenities by using Placemaking Source : Public Spaces
- 44. 44 Example. MUMBAI AIRPORT AREA is targeteing functions to the local population “The airport of Mumbai is inserted in a dense urban fabric with very limited land availability, surrounded by slums. The future development of the airport is highly constraint and a new airport is envisaged Navi Mumbai. The airport city project has accurately analyzed functions that are missing in the Mumbai airport area. It currently proposes these missing functions in a joint development program that includes a large convention center, hotels, and upscale offices, focused on companies but also functions that are more targeted to the local population including medium range hotels, hospitals, services to residents and shops / businesses”. Sanjay Khanna, Vice President, Real Estate, Mumbai International Airport, 2013
- 45. 45 Challenge : avoid the negative effects of the qualitative development of AA, gentrification
- 46. 46 Final remarks : Human resources are a key asset fo Airport Areas
- 47. 47 Strategy for Airport Areas : 6 key pillars for Job creation Source : The 10 pillars of AA strategy, Metropolis Initiative, 2016
- 48. 48 THANK YOU FOR YOUR ATTENTION! A Public Foundation for better living Cities A Paris Region’s Agency Mr Vincent GOLLAIN Chief Economic Development Officer [email protected] us: www.iau-idf.fr/en