Why Workforce Systems Matter More Than Ever
For decades, businesses seeking a new location evaluated the regional workforce through a relatively straightforward, data-based lens in site selection. Communities showcased their labor availability by using population size, unemployment rates, educational attainment, and the presence of employers operating in similar industries. If a region could demonstrate a sufficient labor pool with transferable skills, it was generally considered a viable option for a business to locate.
That equation has changed.
Today’s workforce challenges extend far beyond just finding workers. The central challenge is how do communities consistently invest in growing a workforce pipeline in an economy that is defined by rapid technological change and accelerating demographic shifts. As a result, workforce development has evolved from a supporting economic development function into a an essential infrastructure that factors heavily into site selection considerations.
The evidence that the workforce has evolved from a labor pool metric into a form of strategic infrastructure is confirmed by the 2026 State of Site Selection Pulse Check, published by the Site Selectors Guild and DCI.1 The results found that, after infrastructure capacity and site readiness, “workforce availability and quality” ranked as the third most common factor that could eliminate a location from consideration for a project. In some cases, even a fully serviced site with utility capacity and transportation access becomes noncompetitive when employers lack confidence in the local talent pipeline.
While many communities laud their workforce as an asset available and ready to work, it is imperative to set the site apart by outlining why the workforce system as a whole stands out from other locations and is responsive to an industry’s unique needs. While incentives are important, investing in workforce development infrastructure and the skills that go with it will sustain your site selection and investment long after the incentives have expired.
In this article, we explore how workforce development has become integrated into site selection, which programs and policies are driving successful workforce development, and close with a self-assessment to determine how connected your workforce and economic development teams really are.
Workforce Is No Longer Just About Labor Availability
Historically, workforce competitiveness was often measured by the size and composition of an existing labor market. Communities with concentrations of manufacturers, healthcare providers, logistics operations, or technology firms could point to established talent pools that aligned with employer needs. Today, site selectors are evaluating something at a much more comprehensive level: the ability of a region to continuously produce talent, both in the near term and over the long term. For economic developers, this means workforce competitiveness can no longer be defined solely by current labor market conditions. It must also be measured by a community’s ability to engage underutilized populations and build pathways that actively steer people into the workforce.
This distinction matters because many regions are simultaneously developing initiatives that address the challenge of creating strong career pathways for youth while creating on-ramps for adult learners seeking to diversify or expand their skill sets. Taking an approach that builds talent pipelines across a range of skill levels, credentials, and occupations that are aligned with regional industry strengths is becoming increasingly important as the factors constraining labor force participation remain persistent.
According to Lightcast2, shrinking labor force growth and limited workforce availability are among the most significant long-term pressures facing employers nationwide. At the same time, approximately one in seven Americans between the ages of 18 and 24 are considered disconnected from work, education, or training, representing more than four million potential3 workers who remain outside traditional talent pipelines. These individuals represent a significant source of untapped talent, but many require more individualized support to overcome barriers to employment, education, or training. Helping these populations reconnect to the workforce is challenging work, but it has the potential to create meaningful long-term impacts for both individuals and regional economies.
Workforce Systems Are a Component of Competitive Infrastructure
The Manufacturing Talent Pipeline Index, developed by Lightcast and Area Development, evaluates states based on workforce supply, industrial context, and long-term talent development factors.4 The index goes beyond traditional labor market measures by evaluating whether states are actively building future manufacturing talent through education, training, and workforce partnerships.
Top states in the index include Kentucky, Alabama, and Wyoming. The top-ranked states differ significantly in geography, demographics, and industrial structure. Yet they share several characteristics:
- Strong community college and technical education systems.
- Active employer participation in curriculum design and training programs.
- Long-term investment in workforce development capacity.
- Alignment between economic development and workforce development organizations.
- Clear pathways connecting education, training, and employment.
Combined, these approaches represent coordinated talent ecosystems that support long-term business investment. For site selectors, the presence of these systems provides confidence that a region can respond to changing workforce needs over time rather than relying solely on existing labor availability.
The Rise of Work-Based Learning
To build durable workforce pipelines capable of addressing today’s labor force challenges, workforce development has increasingly moved beyond the traditional separation of education, training, and hiring. Instead, employers, educational institutions, workforce organizations, and economic development partners are working to create seamless transitions between learning and employment through work-based learning.
At its core, work-based learning creates a structured pathway where individuals develop skills through a combination of classroom instruction and applied workplace experience. The goal is not only to build technical competency but also to help individuals understand workplace expectations, culture, and career opportunities. This approach is often complemented by skills-based hiring practices that recognize an individual’s demonstrated abilities rather than relying solely on degree attainment.
Of course, work-based learning is not a new concept. Many occupations have long relied on experiential learning to ensure workers master their craft. The building trades have used apprenticeship models for generations, while professions such as healthcare require extensive supervised learning and practical experience before practitioners can work independently. What has changed is the growing recognition that these models can be applied across a much broader range of industries and occupations.
The value of work-based learning lies in its ability to align workforce development directly with employer needs. It allows companies to customize training around specific technologies, equipment, processes, and workplace expectations while creating a more reliable pipeline of future talent. It also gives employers an opportunity to evaluate employees over time while individuals simultaneously build technical competencies and industry experience.
Perhaps most importantly, work-based learning helps organizations respond to rapidly evolving skill requirements. As new technologies emerge and business models change, employers often need workers with competencies that may not yet be reflected in traditional educational programs. Whether it is advanced automation, cybersecurity, data analytics, or artificial intelligence, work-based learning provides a mechanism for employers to quickly develop talent in response to changing market conditions.
Work-based learning is best viewed as a continuum of workforce development tools rather than a single program. Depending on an employer’s needs and readiness, opportunities can range from career-connected learning and sector partnerships to internships, employer-led training programs, on-the-job training, and registered apprenticeships.
Registered Apprenticeships remain the gold standard of work-based learning. While apprenticeship programs have historically been concentrated in the building trades, recent policy and programmatic changes have expanded apprenticeship opportunities into advanced manufacturing, information technology, healthcare, life sciences, cybersecurity, education, and many other fields. To support this growth, there has been a substantial redirection of funds towards apprenticeships at the federal and in some cases, state level. In spring 2026, the US Department of Labor announced $85 million in funding to support states and territories in ramping up their Registered Apprenticeships to advance this administration’s goal of reaching 1 million active apprenticeships nationwide.5
Registered Apprenticeships typically range from 2,000 to 8,000 hours of paid, structured work experience and may be time-based, competency-based, or a hybrid of the two. Participants also complete a minimum of 144 hours of related technical instruction annually, creating a comprehensive model that combines learning with real-world application.
Apprenticeships, however, represent only one component of a broader work-based learning ecosystem. Through Camoin Associates’ conversations with hundreds of executives each year as part of business outreach, lead generation, and industry engagement efforts, manufacturers consistently emphasize the importance of flexible, employer-driven training models that accelerate workforce readiness. While employers continue to value traditional degrees, many are increasingly focused on what workforce leaders describe as “speed-to-skill”—the ability to develop competencies quickly and efficiently.
As a result, many companies are investing in their own workforce development initiatives, including:
- Customized equipment-specific boot camps
- Short-term technical training programs
- Mechatronics pathways
- Embedded industry certifications
- Train-the-trainer models
- Structured on-the-job training programs
The most successful workforce systems are those where public-sector workforce organizations and private-sector employers work in partnership. Educational institutions, workforce boards, apprenticeship offices, and economic development organizations help build the framework, while employers provide the real-world context and career opportunities that make workforce development meaningful. Together, they create talent pipelines that are responsive to employer demand today while positioning regions to remain competitive in the future.
New Policies Are Expanding Workforce Development Opportunities
In addition to the growth of work-based learning, the increasing recognition of skills-based hiring has elevated the importance of credentials as part of a region’s workforce development toolbox. Employers are increasingly looking beyond traditional degree requirements and focusing on whether candidates possess the specific skills needed to succeed in a role. As a result, industry-recognized credentials have become an important way for workers to demonstrate competency and for employers to verify skills.
This shift has significant implications for workforce competitiveness. Communities that can provide accessible pathways to industry-recognized credentials are often better positioned to respond to changing labor market needs and support employer growth. Credentials can help individuals enter the workforce more quickly, advance within their careers, and adapt to evolving technologies and workplace requirements.
Recognizing the growing value of short-term, skills-focused training, Congress recently expanded Pell Grant eligibility to include certain short-term credential programs.6 Historically, Pell Grants primarily supported students pursuing two- and four-year degree programs. The expansion allows eligible students to access financial assistance for shorter-term workforce training programs that lead to industry-recognized credentials in high-demand occupations.
This change has the potential to accelerate workforce development in sectors experiencing acute labor shortages by reducing financial barriers to participation and expanding access to targeted training opportunities. For employers, it creates another mechanism to develop talent more quickly and align workforce preparation with industry demand.
The Workforce Innovation and Opportunity Act (WIOA), the U.S. Department of Labor’s primary workforce development program, has similarly emphasized credential attainment and employer-driven training strategies. Through local workforce development boards and workforce partners, employers may have access to training assistance, wage subsidies, incumbent worker training programs, and other resources designed to support workforce development needs. Available programs vary by region and funding availability, but they often provide meaningful support for employers seeking to recruit, train, and retain talent.
Beyond federal programs, many states offer workforce incentives, training grants, and customized assistance programs that further strengthen regional talent pipelines. Community colleges, career and technical education centers, workforce development boards, and state workforce agencies frequently work together to align and coordinate these resources. Rather than operating independently, successful workforce systems braid funding sources and partner across organizations to address both employer demand and worker needs.
For companies evaluating locations, these programs can influence more than just workforce availability. They can affect everything from hiring timelines to training costs or the long-term sustainability of a talent pipeline. Ultimately, one of the strongest indicators of a competitive workforce system is not any single program or funding source, but the ability of local partners to act as a coordinated network.
A Workforce Competitiveness Check for Economic Developers
For economic developers, the current site selection environment raises an important question: How integrated are you with your local workforce ecosystem?
Consider the following self-assessment:
- Are you conducting joint business retention and expansion (BRE) visits with workforce partners to better understand employer needs?
- Are you regularly engaging with your local workforce development board and sharing business intelligence or industry trends?
- Are you familiar with the latest services, programs, and employer supports available through your local American Job Center?
- Do you have established relationships with community colleges, career and technical education providers, apprenticeship representatives, and workforce agencies?
- Are workforce organizations involved in your business attraction and retention strategies from the beginning, rather than after a project has been secured?
- Can you clearly demonstrate workforce outcomes and employer successes, rather than simply describing available programs?
- Do employers know who to call when they need help recruiting, training, or upskilling workers?
If any of these questions prompt hesitation, there may be opportunities to strengthen collaboration and improve the competitiveness of your workforce system. The communities that can confidently answer “yes” to these questions will be best positioned to compete for future investment. C
Sources:
1 Site Selectors Guild and DCI, The 2026 State of Site Selection Pulse Check, 2026
2 Elizabeth Crofoot, Tim Hatton, Ron Hetrick, Elena Magrini, and Cole Napper, Fault Lines, 2026
3 Jennie Wenger, Stpehanie Bonders, Understanding Disconnection Among American Youth, 2025
4 Kimberly Graulein, Where Workforce Capacity is being Build – and where It’s Being Deployed, 2026
5 U.S. Department of Labor, US Department of Labor Announces Availability of $85M in Grant Funding to Support Registered Apprenticeship Expansion, Modernization, 2026
6 U.S. Department of Education, U.S. Department of Education Issues Final Rule to Create New Workforce Pell Grant Program, 2026
- Train-the-trainer models
- Structured on-the-job training programs
The most successful workforce systems are those where public-sector workforce organizations and private-sector employers work in partnership. Educational institutions, workforce boards, apprenticeship offices, and economic development organizations help build the framework, while employers provide the real-world context and career opportunities that make workforce development meaningful. Together, they create talent pipelines that are responsive to employer demand today while positioning regions to remain competitive in the future.
New Policies Are Expanding Workforce Development Opportunities
In addition to the growth of work-based learning, the increasing recognition of skills-based hiring has elevated the importance of credentials as part of a region’s workforce development toolbox. Employers are increasingly looking beyond traditional degree requirements and focusing on whether candidates possess the specific skills needed to succeed in a role. As a result, industry-recognized credentials have become an important way for workers to demonstrate competency and for employers to verify skills.
This shift has significant implications for workforce competitiveness. Communities that can provide accessible pathways to industry-recognized credentials are often better positioned to respond to changing labor market needs and support employer growth. Credentials can help individuals enter the workforce more quickly, advance within their careers, and adapt to evolving technologies and workplace requirements.
Recognizing the growing value of short-term, skills-focused training, Congress recently expanded Pell Grant eligibility to include certain short-term credential programs.6 Historically, Pell Grants primarily supported students pursuing two- and four-year degree programs. The expansion allows eligible students to access financial assistance for shorter-term workforce training programs that lead to industry-recognized credentials in high-demand occupations.
This change has the potential to accelerate workforce development in sectors experiencing acute labor shortages by reducing financial barriers to participation and expanding access to targeted training opportunities. For employers, it creates another mechanism to develop talent more quickly and align workforce preparation with industry demand.
The Workforce Innovation and Opportunity Act (WIOA), the U.S. Department of Labor’s primary workforce development program, has similarly emphasized credential attainment and employer-driven training strategies. Through local workforce development boards and workforce partners, employers may have access to training assistance, wage subsidies, incumbent worker training programs, and other resources designed to support workforce development needs. Available programs vary by region and funding availability, but they often provide meaningful support for employers seeking to recruit, train, and retain talent.
Beyond federal programs, many states offer workforce incentives, training grants, and customized assistance programs that further strengthen regional talent pipelines. Community colleges, career and technical education centers, workforce development boards, and state workforce agencies frequently work together to align and coordinate these resources. Rather than operating independently, successful workforce systems braid funding sources and partner across organizations to address both employer demand and worker needs.
For companies evaluating locations, these programs can influence more than just workforce availability. They can affect everything from hiring timelines to training costs or the long-term sustainability of a talent pipeline. Ultimately, one of the strongest indicators of a competitive workforce system is not any single program or funding source, but the ability of local partners to act as a coordinated network.
A Workforce Competitiveness Check for Economic Developers
For economic developers, the current site selection environment raises an important question: How integrated are you with your local workforce ecosystem?
Consider the following self-assessment:
- Are you conducting joint business retention and expansion (BRE) visits with workforce partners to better understand employer needs?
- Are you regularly engaging with your local workforce development board and sharing business intelligence or industry trends?
- Are you familiar with the latest services, programs, and employer supports available through your local American Job Center?
- Do you have established relationships with community colleges, career and technical education providers, apprenticeship representatives, and workforce agencies?
- Are workforce organizations involved in your business attraction and retention strategies from the beginning, rather than after a project has been secured?
- Can you clearly demonstrate workforce outcomes and employer successes, rather than simply describing available programs?
- Do employers know who to call when they need help recruiting, training, or upskilling workers?
If any of these questions prompt hesitation, there may be opportunities to strengthen collaboration and improve the competitiveness of your workforce system. The communities that can confidently answer “yes” to these questions will be best positioned to compete for future investment.
Sources:
1 Site Selectors Guild and DCI, The 2026 State of Site Selection Pulse Check, 2026
2 Elizabeth Crofoot, Tim Hatton, Ron Hetrick, Elena Magrini, and Cole Napper, Fault Lines, 2026
3 Jennie Wenger, Stpehanie Bonders, Understanding Disconnection Among American Youth, 2025
4 Kimberly Graulein, Where Workforce Capacity is being Build – and where It’s Being Deployed, 2026
5 U.S. Department of Labor, US Department of Labor Announces Availability of $85M in Grant Funding to Support Registered Apprenticeship Expansion, Modernization, 2026
6 U.S. Department of Education, U.S. Department of Education Issues Final Rule to Create New Workforce Pell Grant Program, 2026
About the Authors
As a Senior Project Manager, Alex leads complex strategic planning efforts in geographies ranging from bustling urban centers to pastoral villages. She harnessed the power of collaboration in Los Angeles County, the country’s most populous county, where she managed a multi-disciplinary team to develop a strategic plan that was swiftly approved by the US Economic Development Administration. Alex works with clients to balance the competing interests of stakeholders while helping the client develop a plan that is ambitious yet achievable under their existing organizational capacity.
Mike Lawrence leads Community Workforce Advancements, LLC and brings more than 47 years of experience in workforce development, economic development, education, and community advancement. Throughout his career, he has helped communities build integrated talent development systems that align workforce, education, economic, and community development goals, with particular expertise in rural regions.
Mike is a nationally recognized leader in work-based learning and workforce strategy, with experience spanning internships, sector partnerships, and Registered Apprenticeships. His leadership roles have included serving as Executive Director of the North Central Pennsylvania Workforce Development Board, Interim Director of South Central PA Works and the Bucks County Workforce Development Board, and Interim Executive Director of the National Association of Workforce Development Professionals. He has also provided leadership for national workforce initiatives, including the Cybersecurity Youth Apprenticeship Initiative and workforce programs serving dislocated workers and emerging industries.
