Evolution of Supply, EmploymEnt and ... - European Commission

Evolution of Supply, EmploymEnt and SkillS in thE EuropEan maritimE tEchnology SEctor

final report of the Eu-funded project “creating a European Skills council for the maritime technology Sector” (2014-2016)

With the Support of the European Commission

I

Creating a European Skills Council for the Maritime Technology Sector

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CreatingaEuropeanSkillsCouncilfortheMaritimeTechnologySector

TableofContents1 Introduction...................................................................................................................................1

2 TheEuropeanMaritimeTechnologySector...................................................................................2

EuropeanShipyards:.................................................................................................................3

EquipmentManufacturersandSuppliers:................................................................................4

Designoffices,researchcentresandclassificationsocieties:...................................................5

3 Employmentsituation,forecastsandtrends.................................................................................6

Employmentsituationintheshipbuildingandmarineequipmentindustry............................6

EmploymentDevelopments:ThecaseofEuropeanyards........................................................7

NewSkillRequirementsandNewContractForms..................................................................10

4 Evolutionof theEuropeanMaritimeTechnologySector.Drivers and trends influencing futureskillsneeds:..........................................................................................................................................13

Fuelefficiency,costreductionsandenvironmentalregulations............................................13

OffshoreOil&Gas...................................................................................................................14

NewMarkets:BlueGrowthactivities......................................................................................15

Renewableenergysources.........................................................................................15

Marinerenewables(MRE)..........................................................................................15

Offshorebiomassproductionanddesalination.........................................................15

Aquaculture................................................................................................................15

MutualisationandColocation....................................................................................15

ICT...........................................................................................................................................16

TheArcticDimension..............................................................................................................16

5 QualitativeanalysisofSkillsandOccupations..............................................................................17

Skillsdemandanalysis.............................................................................................................21

Skillsgapinnewrecruits.........................................................................................................23

Futureactions.........................................................................................................................23

Recruitmentstrategies............................................................................................................24

6 InnovativeToolsandStrategiestoMonitorSkillNeedsandAddressSkillsMismatchinSector.25

CompanyLevel.............................................................................................................................25

ThecaseofRoyalIHC.................................................................................................25

ThecaseofFactoríasVulcano....................................................................................25

ThecaseoftheFrenchNavalIndustry.......................................................................26

Cooperationbetweenindustryandeducation............................................................................27

ThecaseofIRT(InstitutdeRechercheTechnologique)JulesVerne..........................27

TheVascoDaGamaProject.......................................................................................27

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ThecaseofMarineValleyKlaipėdaUniversity..........................................................28

Inter-sectoralcooperation...........................................................................................................28

ProposalsoftheFrenchNationalCouncilforIndustry...............................................28

SectoralcooperationattheEUlevel............................................................................................29

EuropeanSectoralSkillsCouncil(ESSC)fortheTextileClothingLeatherandFootwearindustry(TCLF)............................................................................................................29

7 Conclusions:.................................................................................................................................30

8 Policyrecommendations.............................................................................................................32

1.AEuropeanstrategy............................................................................................................32

2.Promotionofenvironmentallysustainablelegislation........................................................32

3.Planningsecurity.................................................................................................................33

4.FaircompetitionandAttractionofSkilledTalent...............................................................33

5.EducationandLifelonglearning..........................................................................................34

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TableofFigures

Figure1:TheEuropeanmaritimetechnologyindustry............................................................................................................3

Figure2:AnnualTurnoveroftheEuropeanMaritimeTechnologyIndustry...........................................................................3

Figure3:ComparisonofOrderbooksmid-2015(Bill.$)............................................................................................................4

Figure4:EquipmentSuppliersMarketShare...........................................................................................................................5

Figure5:AbsoluteandrelativenumberofemployeesinMarineEquipment,ShipbuildingandSMRCin2013ofSEAEurope

Members....................................................................................................................................................................................6

Figure6:EmploymentatSEAEuropeYardsandEquipmentSuppliersbyCountryin2013....................................................6

Figure7:Numberofemployeesinmarinesuppliespercountry(1stand2ndtier)total452kforEU28+NorwayandTurkey

....................................................................................................................................................................................................7

Figure8:Shipbuilding,boatbuildingandrepairofshipsandboats-EU-28............................................................................7

Figure9:EmploymentDevelopmentinTenEuropeanShipbuildingCountriesbetween2004and2014..............................8

Figure10:EuropeanShipbuildingOrderbookDevelopmentfrom2004to2014...................................................................9

Figure11:OrderbookCompositionbyShipTypeinGermany–evolutionfrom2004to2014...........................................10

Figure12:CompositionofstaffintheGermanshipbuildingindustrybyareaofwork(in%)..............................................11

Figure13:ProblemPressurefortheSupplyofSkilledWorkersfrom1(noproblem)to10(bigproblem)..........................11

Figure14:EuropeancommercialOrderbookbyShipTypes(inCGTterms).........................................................................13

Figure15:DistributionofTechnicalPersonnel–%ofTechnicalPersonnelEmployed.........................................................17

Figure16:DistributionofTechnicalPersonnelpercompanytype(fourmaincategories)...................................................18

Figure17:Recruitmentissuespercompanytype...................................................................................................................18

Figure18:Currentrecruitmentissues.....................................................................................................................................19

Figure19:ReasonsforPlannedRecruitmentintheMediumTerm.......................................................................................19

Figure20:Medium-termstaffforecast...................................................................................................................................20

Figure21:MediumTermRecruitmentTypesofPersonneltobeemployed.........................................................................21

Figure22:MediumTermRecruitmentTypesofPersonneltobeemployed.........................................................................21

Figure23:SkillsGapsinNewRecruits....................................................................................................................................23

Figure24:SkillsGapsinNewRecruitspercompanytype......................................................................................................23

Figure25:FutureActionstoAddressShortfallinSkills..........................................................................................................24

Figure26:CentralisedEurope-wideonlinerecruitmenttool.................................................................................................24

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1 IntroductionOverthelastdecade,theEuropeanmaritimetechnologyindustryhasdevelopedtowardsdesigning,buildingandrepairingthemostadvancedandspecializedsystems,technologiesandvessels.Inordertoimproveitspositioninthemarket,theindustryiscontinuouslyintroducinginnovativetechnologiesandprocessesandtherefore,thecompetitivenessofthesectorreliesonitshighlyskilledworkforce.

However,theincreasedcomplexitiesoftheproductshavecreatedadditionaldemandforhighlyskilledstaff. A wide swath of the industry is suffering from a pronounced scarcity of skilled personnel,challengingthegrowthofthesectorandriskingthelossofacriticalmassofskillsandtechnologicalcompetences.

Inordertosupportthefacilitationof futureskills, trainingandmobility, the industryandworkers’representativesattheEuropeanlevel(SEAEuropeandIndustriALL,withthesupportoftheEuropeanCommission) are working towards the creation of a European Skills Council for the MaritimeTechnology Sector. This report has been prepared in support of this initiative and to provideintelligenceaboutthestatusoftheindustry,theemploymentsituation,skillsneedsandshortagesandtoidentifytoolstoimprovetheskillssupplyintheindustry.

The creation of European Skills Council for the Maritime Technology Sector is one of therecommendationsofLeaderSHIP20201strategy,adoptedbytheEuropeanCommissionandindustrystakeholdersinFebruary2013andendorsedbytheEuropeanCompetitivenessCouncilinMay2013.

LeaderSHIP 2020 strategy contains the vision of the maritime technology sector for a strong,sustainableandcompetitiveEuropeanmaritimeindustryin2020,employmentandskillsbeingoneofthepillarsoftheindustry’s‘strategicvision’for2020.

In the context of the Sectoral Social Dialogue, the social partners for the shipbuilding industry(IndustriALL Europe and SEA Europe, representing respectively the trade unions and maritimetechnology industry) jointly took the lead in creatingaEuropeanSkillsCouncil tomoreeffectivelyanticipatetheneedforskillsinthemaritimetechnologysectorandachieveabettermatchbetweenskillsandlabourmarketneeds.

InOctober2012, theSocial Partners finalised theEU-fundedproject “Identifying theactors in theshipbuildingsector inviewofsettingupaEuropeanShipbuildingCouncilon JobsandSkills”. Thisfeasibilityprojectidentifiedandmappedalmost200organizationsinvolvedintrainingandeducationfor the shipbuilding and repair sectors across Europe. Itwas found that these organisationsworkindependently, focused in their respective geographic areas, and do not collaborate or exchangeinformationwithsimilarorganizationsinothercountries.ThisrealityleadstotheexistenceofverydifferenttrainingprogrammesandcertificatesthatconstrainthemobilityofworkersandstudentsthroughoutEurope.Itisalsodifficultfortheregionalandnationalactorstomonitorandanticipatemarketand industryneedsat theEuropean levelandeffectively implementeducationaloffers forthem.ThestudyconcludedthattherewasastronginterestamongstthemaritimestakeholdersonthecreationofaEuropeanSkillsCouncilforthesectorandthatitwouldproviderealaddedvaluetoexistingactivities.

Onthebasisoftheoutcomesfromthatproject,itwasdecidedtomoveaheadwiththecreationoftheEuropeanSkillsCouncilforthesector.Uponthecallforproposals2013(VP/2013/010),thecurrentprojectwasgrantedwithadoubleobjective:1. Establishing the structure of the European Skills Council: roles, responsibilities, organisation,cooperationanddisseminationmechanisms2.SynthesisinglabourmarketintelligenceinthesectorThecurrentReportcontainstheoutcomesoftheresearchandworkcarriedoutduringthelifeofthisproject.

1http://ec.europa.eu/growth/sectors/maritime/shipbuilding/ec-support/index_en.htm

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1 IntroductionOverthelastdecade,theEuropeanmaritimetechnologyindustryhasdevelopedtowardsdesigning,buildingandrepairingthemostadvancedandspecializedsystems,technologiesandvessels.Inordertoimproveitspositioninthemarket,theindustryiscontinuouslyintroducinginnovativetechnologiesandprocessesandtherefore,thecompetitivenessofthesectorreliesonitshighlyskilledworkforce.

However,theincreasedcomplexitiesoftheproductshavecreatedadditionaldemandforhighlyskilledstaff. A wide swath of the industry is suffering from a pronounced scarcity of skilled personnel,challengingthegrowthofthesectorandriskingthelossofacriticalmassofskillsandtechnologicalcompetences.

Inordertosupport thefacilitationof futureskills, trainingandmobility, the industryandworkers’representativesattheEuropeanlevel(SEAEuropeandIndustriALL,withthesupportoftheEuropeanCommission) are working towards the creation of a European Skills Council for the MaritimeTechnology Sector. This report has been prepared in support of this initiative and to provideintelligenceaboutthestatusoftheindustry,theemploymentsituation,skillsneedsandshortagesandtoidentifytoolstoimprovetheskillssupplyintheindustry.

The creation of European Skills Council for the Maritime Technology Sector is one of therecommendationsofLeaderSHIP20201strategy,adoptedbytheEuropeanCommissionandindustrystakeholdersinFebruary2013andendorsedbytheEuropeanCompetitivenessCouncilinMay2013.

LeaderSHIP 2020 strategy contains the vision of the maritime technology sector for a strong,sustainableandcompetitiveEuropeanmaritimeindustryin2020,employmentandskillsbeingoneofthepillarsoftheindustry’s‘strategicvision’for2020.

In the context of the Sectoral Social Dialogue, the social partners for the shipbuilding industry(IndustriALL Europe and SEA Europe, representing respectively the trade unions and maritimetechnology industry) jointly took the lead in creatingaEuropeanSkillsCouncil tomoreeffectivelyanticipatetheneedforskillsinthemaritimetechnologysectorandachieveabettermatchbetweenskillsandlabourmarketneeds.

InOctober2012, the Social Partners finalised theEU-fundedproject “Identifying theactors in theshipbuildingsector inviewof settingupaEuropeanShipbuildingCouncilon JobsandSkills”. Thisfeasibilityprojectidentifiedandmappedalmost200organizationsinvolvedintrainingandeducationfor the shipbuilding and repair sectors across Europe. Itwas found that these organisationsworkindependently, focused in their respective geographic areas, and do not collaborate or exchangeinformationwithsimilarorganizationsinothercountries.Thisreality leadstotheexistenceofverydifferenttrainingprogrammesandcertificatesthatconstrainthemobilityofworkersandstudentsthroughoutEurope.Itisalsodifficultfortheregionalandnationalactorstomonitorandanticipatemarketand industryneedsat theEuropean levelandeffectively implementeducationaloffers forthem.ThestudyconcludedthattherewasastronginterestamongstthemaritimestakeholdersonthecreationofaEuropeanSkillsCouncilforthesectorandthatitwouldproviderealaddedvaluetoexistingactivities.

Onthebasisoftheoutcomesfromthatproject,itwasdecidedtomoveaheadwiththecreationoftheEuropeanSkillsCouncilforthesector.Uponthecallforproposals2013(VP/2013/010),thecurrentprojectwasgrantedwithadoubleobjective:

1http://ec.europa.eu/growth/sectors/maritime/shipbuilding/ec-support/index_en.htm

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2 TheEuropeanMaritimeTechnologySector

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Supplying, Building & Maintaining the Futurewww.seaeurope.eu

© 2014, SEA EuropeData source: IHS Fairplay

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Backhoe Dredger

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Pipe Burying Vessel

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Gas Processing Vessel

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Offshore Construction Vessel, Jack Up

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Grain Elevating Pontoon, Non Propelled

Power Station Pontoon, Non Propelled

Crane Vessel, Non Propelled

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Whale Catcher

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2 TheEuropeanMaritimeTechnologySector

InsertMayaWheel

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TheEuropeanmaritimetechnologyindustryencompassesalltheenterprisesinvolvedinthedesign,construction,maintenanceandrepairofshipsandothermaritimestructures,includingthecompletesupplychainofsystems,equipmentandservicessupportedbyresearchandeducationalinstitutions(Figure1).

Figure1:TheEuropeanmaritimetechnologyindustry

WithanannualturnoverofEUR91billion,thesectorprovidesmorethan500,000directjobsalloverEurope(Figure2).

Figure2:AnnualTurnoveroftheEuropeanMaritimeTechnologyIndustry

EuropeanShipyards:TheEuropeanshipbuildingandShipMaintenance,RepairandConversion(SMRC)industryiscurrentlycomposedofapproximately300shipyardsspecialisedinbuildingandrepairingthemostcomplexandtechnologicallyadvancedcivilandnavalshipsandotherhardwareformaritimeapplications.TheseshipyardsproduceanapproximateturnoverofEUR31billionyearlyandemploymorethan200,000directjobsinEurope,whereupto75%ofthoseshipsbuiltgotoexportmarkets.

10%3%

12%

5%

4%66%

COMMERCIALNEWBUILDINGSHIPYARDS

COMMERCIALSMRC

NAVALNEWBUILDING

NAVALMAINTENANCE

MEGAYACHTSNEWBUILDING

MARINEEQUIPMENT

Thegraphsexcludes:OFFSHORESTRUCTURESBOATBUILDING

Source:. SEA Europe

4%66%

91bn€

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Europeanyardsare theonlysuccessfulcruisebuilders in theworld,building99%of thesevessels.Someattemptsfromoverseascompetitorstoenterthecruiseshipsmarkethavefailedoverthepastyears,leadingtohugelossesforthecontractingshipyards.Thecomplexityanduniquenatureofthesevesselsrequiresexpertiseandknow-howthattodaycanonlybefoundinEurope.Therefore,itisofoutmostimportanceforthesectortoretainthisknow-howandskilledpersonnelinEurope.

OfMegaYachtsdeliveredeachyear,65%arebuiltinEurope.Invalueterms,European-builtYachtsaccountfor80%ofthevalueofannualworldwideMegaYachtproduction.

Attheforefrontofenvironmentalandsafetytechnologies,themostadvancedferries,offshoresupplyvessels,researchvessels,workboats,fishingvessels,dredgers,tugsandothernon-cargo-carryingshipsarealsobuiltinEurope.

Inthenavalfield,Europeisagloballeaderintheexportmarket.Fromthepointofviewofsupply,thenavalexportorderbookisrelativelyconcentratedinafewshipyards.Inthecaseofsurfacevesselsexports, over 66%of theorder book is in European shipyards, proving their competitiveness. Theexportmarketforsubmarinesisevenmoreconcentrated,whereEuropeancompanieshavemorethan80%ofworldwideexports.

Comparingthevalueofthetotalorderbookbothforcivilianandnavalshipsinthemainshipbuildingareas,itappearsthatEuropeisbiggerthanitstraditionalAsiancompetitors,anditspositionasoneofthemarketleadersisunquestionable(Figure3).

Figure3:ComparisonofOrderbooksmid-2015(Bill.$)

Currently,theshipyardscontinuetodiversifyandenterthenewBlueGrowthmarkets,buildinganddesigninginfrastructureandvesselsfortheoffshore

Apartfromshipbuildingyards,therearealsoyardsspecializedinrepair,maintenanceandconversionofvesselsandplatforms.InEurope,suchactivitiestakeplaceinatleastsixteencountries.

EquipmentManufacturersandSuppliers:Marineequipmentsuppliersdelivermaterials, systems,andequipment;actasserviceproviders inengineeringandconsulting;orare integratedas subcontractors inpre-productmanufacturingandassembly.Theindustryprovidesaverywiderangeofsupplies,from5mmtitaniumboltsto50MWdieselgeneratorswitheverythinginbetween,foranequallydiverserangeofvesseltypesandsizes.TheEuropeanmarineequipmentindustrygeneratesanaverageyearlyturnoverestimatedataroundEUR60billion. It ismadeupofaround22,000enterprises,directlyemployingmore than350,000workersandgeneratingmorethan436,000indirectjobs.Themajorityofthecompaniesaresmall,butit

0

50

100

150

200

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SK CHI EU JAP US RoW

ComparisonofOrderbooksmid-2015(billionUSD)

NavalMerchant

Source:. SEA Europe

5


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areledbysomelargemultinationals.Currently,theEuropeanindustryrepresentsalmost50%oftheworldwidemarketshare2(Figure4)

Figure4:EquipmentSuppliersMarketShare

From a technological standpoint, the European maritime technology industry is of outmostimportance.Asan innovation-driven industry, it isoneof the sectorswith thehighest investmentintensity in Research, Development and Innovation (RDI) activities: 8-9%of the industry sales areinvestedinRDI,comparedto4.2%,representingoverallRDIinvestmentinrelationtotheEUGDP.

Designoffices,researchcentresandclassificationsocieties:Designofficescanactasindependentcompaniescollaboratingwiththeshipyardsinspecificprojects.But in many cases, these offices are integrated with the shipyards to develop a ship design thatmatchestheoperationalcriteriasetbyeithertheyardortheowner.Thisisacrucialphasetoensurethevessel’soperationalefficiency.

Thedesignoffices,researchinstitutes,classificationsocietiesandR&Danddesigndivisionsofotheractors along the value chain play a very important role in certain innovations (e.g. hull design).Designers also increasingly cooperatewithmarine equipmentmanufacturers to take part in jointdevelopmentprojects.

Insomecases,classificationsocietiesalsoplayanimportantroleinthedesignandbuildingphasesbyprovidingtheirtechnicalexpertise,whichcanbeusedforpre-projectconsultingtoassistinbuildingavessel and establishing and approving safety and security standards. Classification societies areimportantbecausetheysetstandardsandsuperviserules intheshipbuilding industry. Inprinciple,classificationsocietiescheckwhethertheproductsandsystemsaboardashipcomplyornot.Theysetandapplytechnicalstandardsrelatingtothedesignandconstructionofships,andcarryoutextensivesurveysofshipsandtheirmainsystems.

2Supplying,Building&MaintainingtheFuture2014EditionPubSEAEurope

48%52%

EquipmentSuppliersMarketSharesGlobalproductionvolumeaverage=125.5bn€

EuropeanCompaniessuppliedvolume(EU28+Norway

RestoftheWorldsuppliedvolume

Source:.BalanceTC

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3 Employmentsituation,forecastsandtrends

Although the focus of this report lies on the evolution of skills in the European shipbuilding andmaritime technology sector, thesedevelopmentsmust be considered against thebackdropof thesector’s general employment situation in recent years. The intention of the following chapter is,therefore,togiveasynopticoverviewonquantitativeemploymentfigures,whichcanhavepossibleimpactsonskills-relateddevelopmentsaswell.

EmploymentsituationintheshipbuildingandmarineequipmentindustryIn total, over 500,000 people are directly employed in the shipbuilding and maritime technologyindustries inEurope.Whilethemajorityoftheseworkinthemaritimeequipmentindustry,almost40%ofoverallemploymentcanbeattributedtonewbuilding,aswellasrepairandmaintenanceyards(seeFigure5).

Source:SEAEurope(2014);ownillustration

Figure5:AbsoluteandrelativenumberofemployeesinMarineEquipment,ShipbuildingandSMRCin2013ofSEA

EuropeMembers

Employment is, furthermore, concentrated in fourcountries, Germany, Italy, France and the UK, whichtogetheraccount forapproximately50percentof thetotalEuropeanworkforce.However,asthesenumbersarerelatedtothegeneralsizeofthenationaleconomyand labour force, the shipbuilding and marine equipment sector plays also an important role forregionallabourmarketsinothercountries,suchasDenmark,SpainortheNetherlands(Figure6).

Figure6:EmploymentatSEAEuropeYardsandEquipmentSuppliersbyCountryin2013

Themaritimeequipment industry is characterizedby itsheterogeneitydue todiversifiedmarkets,firms’varyingsizesanddegreesofspecialization,anddiversecustomerbases.Basically,itispossibleto distinguish between 1st tier and 2nd tier suppliers. While 1st tier suppliers directly produceequipment (i.e. for shipyards), 2nd tier suppliers are responsible for manufacturing components

350,00061%

175,00031%

45,0008%

MarineEquipment Shipbuilding SMRC

7


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utilized by 1st tier suppliers and can, therefore, be considered sub-suppliers3. In most Europeancountries, themajority of employeeswork at 1st tier suppliers, though 2nd tier suppliers have aconsiderableshareintotalemploymentaswell(seeFigure7).

Figure7:Numberofemployeesinmarinesuppliespercountry(1stand2ndtier)total452kforEU28+NorwayandTurkey

EmploymentDevelopments:ThecaseofEuropeanyardsConsideringemploymentdevelopmentsintheEuropeanshipbuildingandshiprepairindustryinmoredetail, a decline in overall employment can be observed since 2008 as a consequence of theinternationalfinancialandeconomiccrisis,afteremploymenthadincreasedfrom2000onwardsduetogrowingorderbooks(seeFigure8).

Figure8:Shipbuilding,boatbuildingandrepairofshipsandboats-EU-28

AsurveyconductedonbehalfoftheSectorCommitteeforShipbuildingofIndustriAllEuropeshedsfurtherlightondirectemploymentchangesbetween2004and2014atcommercial(civilian)shipyards

3BalanceTechnologyConsulting(2014):CompetitivePositionandFutureOpportunitiesoftheEuropeanMarineSuppliesIndustry.ReportpublishedfortheEuropeanCommission,January2014,p.34.

8


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in tenmainEuropeanshipbuildingcountries.4As reveal,mostcountries,exceptCroatia, sufferedemploymentlossesbetween15and75percent.(seeFigure9).

Source:SectorCommitteeIndustriALLEurope2015

Figure9:EmploymentDevelopmentinTenEuropeanShipbuildingCountriesbetween2004and2014

ThesurveydataindicatesthemostseveredecreasesinemploymentinPoland.ThePolishStatisticalYearbook of Maritime Economy, edition 2004 and 2014 shows that in 2004 15.500 people weredirectlyemployedbyPolishshipyards.In2014thenumberofworkersonthepayrollwasaround5.200and6.824wereworkingasself-employed.Thisdevelopmentwasparticularlytriggeredbyclosuresofthetwobiggestyards.Furthermore,alotofformerdirectlyemployedworkersarenowworkingonPolishshipyardsassocalled“self-employed”workersorone-man-companies(mainlyinstate-ownedshipyards).

TheemploymentdeclineinthePortugueseindustrywasduetotheclosureoftwoshipyardsin2009and2010thatwerereopenedin2013withdifferentownership.AccordingtothePortugueseNationalInstituteofStatistics(INE–InstitutoNacionaldeEstatística),intheperiod2004–2014,thenumberofemployeesinthePortugueseshipyardsreducedby49.8percent,butinthelast3yearsincreased9.3percent.

Denmark,FinlandandSpainalsohadtofacesharpdecreasesintheoverallworkforceinshipyards.Despite the fact that four out of five yards still existing in Denmark even recorded employmentincreasesof50percentandmore,thedeclineresultedmainlyfromtheclosureofthebiggestyard.BankruptciesandclosuresplayedanimportantroleinSpainaswell,and23.7percentofthelossofemployment in the Spanish shipbuilding sector was caused by bankruptcies and closures. ThedevelopmentsintheFinishshipbuildingindustryare,instead,mostlyaconsequenceofredundanciesonstillexistingyards.GermanyandtheUKexperienceddecliningemploymentonshipyardsaswell,butduring the last fiveyears thesituation iscomparativelystable.At themajorityofGermanandBritishshipyards,thenumberofemployeesremainedunchangedorevenincreased,whereaslayoffsinafewshipyardsweremainlyresponsiblefortheemploymentdecline.InCroatia,ontheotherhand,thenumberofemployeesworkinginshipyardsincreasedslightlyby6.4percent.ThedevelopmentinCroatianshipbuildingwas,however,notentirelypositiveeither,sincejoblossescouldbeobservedon

4ThesurveywascarriedoutbyAgenturfürStruktur-undPersonalentwicklungGmbH(AgS)inBremen/Germany.ThesummaryoftheresultspresentedonthefollowingpagesisacontributionofAgStotheSectorSkillsCouncilProject. The sample consists of responses from trade union officials from ten major European shipbuildingcountrieswithafocusondirectlyemployedworkersin124shipyards.

9


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sevenoutofeightyards,andonlyoneyardincreaseditsnumberofemployeesbymorethan1,000employees,whichelucidatestheoverallpositiveresults.

Thereasonsforshrinkingdirectemploymentnumbersinthesectoraretwofold:thebankruptcies(andclosures)of16yardsinsixdifferentcountriescausedatotallossofemploymentof16,000jobs.Asaforementioned, not just bankruptcies, but also layoffs at the remaining yards led to thisdevelopment.Afurtherreasoncouldbefoundinanadjustmentsofthemakeorbuymodelofsomeshipyards,which ledtotheoutsourcingofcertainactivitiespreviouslycarriedoutwith internal -ordirect-manpower.

ThisquantitativeevolutionofemploymentintheEuropeanshipbuildingsectormustbeconsideredagainst the backdrop of general economic developments in the industry. Southern Europeancountries,whichwerehitmostseverelybythefinancialcrisis,stillsufferfromthenegativeeconomiceffects,whichalsoaffectedtheshipbuildingsector.Othercountries(forinstance,Germany)quicklyrecoveredfromthecrisisandso its impactonthenationalsector’semploymentsituationwas lessdramatic.

Nevertheless,nearlyallmajorEuropeanshipbuildingcountrieshavefaceddecliningcommercialorderbooksduringthelasttenyears(seeFigure10),resultinginlessworkonshipyards.Inthisregard,thetotalEuropeanorderbook(byCompensatedGrossTonnage,orCGT)decreasedfrom12,406,000CGTin2004to7,247,000CGTin2014(-41.6%).ThespecialisationofEuropeanshipyardsduringthisdecadewastowardsbuildinghightechnologyvessels.Leavingbehindthelargesteel-intensivecargocarriershas also impacted employment in the industry, and the structure and organisation ofwork. As aconsequence,thevaluepervesselandCGThasalsoincreasedconsiderably.Bytheendof2004theshipyardsunderCESA5membershiphadanorderbookof12millionCGT,accountingforatotalEUR23.5millionwithaunitvalueof1,96€/CGT).In2014,theorderbookforCESAcountriesaccountedfor7millionCGTandEUR30million,bringingtheunitvalueto4€/CGT.

Source:SeaEuropeShipbuildingMarketMonitoringFY2014–ReportNo.38–April2015

Figure10:EuropeanShipbuildingOrderbookDevelopmentfrom2004to2014

Since2012,however,thedownwardtrendhasreversedandtheEuropeancommercialorderbookhasstartedtogrowagain.

5CESA(CommunityofEuropeanShipbuildersAssociation)NowintegratedinSEAEurope

-‐8-‐


could be observed on seven out of eight yards, and only one yard increased its number of employees by more than 1,000 employees, which elucidates the overall positive results.

The reasons for shrinking direct employment numbers in the sector are twofold: the bankruptcies (and closures) of 16 yards in six different countries caused a total loss of employment of 16,000 jobs. As aforementioned, not just bankruptcies, but also layoffs at the remaining yards led to this development. A further reason could be found in an adjustments of the make or buy model of some shipyards, which led to the outsourcing of certain activities previously carried out with internal -‐or direct-‐ manpower.

This quantitative evolution of employment in the European shipbuilding sector must be considered against the backdrop of general economic developments in the industry. Southern European countries, which were hit most severely by the financial crisis, still suffer from the negative economic effects, which also affected the shipbuilding sector. Other countries (for instance, Germany) quickly recovered from the crisis and so its impact on the national sector’s employment situation was less dramatic.

Nevertheless, nearly all major European shipbuilding countries have faced declining commercial order books during the last ten years (see Figure 10), resulting in less work on shipyards. In this regard, the total European order book (by Compensated Gross Tonnage, or CGT) decreased from 12,406,000 CGT in 2004 to 7,247,000 CGT in 2014 (-‐41.6%). The specialisation of European shipyards during this decade was towards building high technology vessels. Leaving behind the large steel-‐intensive cargo carriers has also impacted employment in the industry, and the structure and organisation of work. As a consequence, the value per vessel and CGT has also increased considerably. By the end of 2004 the shipyards under CESA5 membership had an order book of 12 million CGT, accounting for a total EUR 23.5 billion with a unit value of 1.960 €/CGT). In 2014, the order book for CESA countries accounted for 7 million CGT and EUR 30 billion, bringing the unit value to 4.300 €/CGT.

Source: Sea Europe Shipbuilding Market Monitoring FY 2014 – Report No.38 – April 2015

Figure 10: European Shipbuilding Order book Development from 2004 to 2014

Since 2012, however, the downward trend has reversed and the European commercial order book has started to grow again.

Moreover, in Poland and Portugal (which were the countries with the most dramatic employment decreases), a political strategy for promoting the evolution of the sector (for instance through financial aid), is still lacking, which may jeopardize further jobs at the yards in the future. 5 CESA (Community of European Shipbuilders Association) Now integrated in SEA Europe

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Moreover, inPolandandPortugal (whichwere thecountrieswith themostdramaticemploymentdecreases),apoliticalstrategyforpromotingtheevolutionofthesector(forinstancethroughfinancialaid),isstilllacking,whichmayjeopardizefurtherjobsattheyardsinthefuture.

NewSkillRequirementsandNewContractFormsConsideringtheorderbooksofthemainshipbuildingcountriesinEurope,aqualitativechangecanbeobserved.Alackoforders–interaliaduetorisinginternationalcompetitionanddiminishingnationalordersinthenavalsector–forcesEuropeanshipbuildingcompaniestodiversifyandspecializetheirproducts-rangebyenteringnewmarkets(e.g.offshore,mega-yachts,etc.).Inthisregard,thegrowingcommercialorderbookmostlyreliesonnewordersforpassengerships,offshorevesselsandotherhigh-technon-cargo-carryingvesselssuchasfishing,tugs,dredgers,researchvesselsetc.6ThecaseofGermany illustrates the trend towards specialized vessels such as passenger ships and offshorevessels,andtheoverallchangeinorderbooks(seeFigure11),averysimilartrendcanbeseeninmostofEuropeancountries.

Source:VSM2015,presentedontheparliamentaryeveninginJanuary2015,Berlin

Figure11:OrderbookCompositionbyShipTypeinGermany–evolutionfrom2004to2014(inMillionsofEUR)

Consequently,theskillrequirementsforworking inthemaritimesector increases,asexpressedbyhighersharesofengineersaspartofthetotalworkforce,forinstance.Theshareofemployeesworkingin the engineering departments is particularly high in the maritime supply industry (35%) whencomparedtothatofshipyards(27.8%)(seeFigure12).Bycontrast,intheKoreanshipbuildingindustry,the percentage ofworkers involved in engineering is significantly lower (13.1% in 2012) than, forinstance,inGermany.7

6cf.SeaEuropeShipbuildingMarketMonitoringFY2014–ReportNo.38–April2015,p.27cf.OECD–CouncilWorkingPartyonShipbuilding(2015):PeerReviewoftheKoreanShipbuildingIndustryandrelatedGovernmentPolicies,p.19

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Source:IGMetallShipbuildingsurvey2015,p.7

Figure12:CompositionofstaffintheGermanshipbuildingindustrybyareaofwork(in%)

This developmentposes a challenge for the sector’s employment situation, as companieshave toadapt the skills profile of their workers to the new technological advances in order to competesuccessfully.Vocationaltrainingthusbecomesevenmoreimportant.Andeventhoughyardsstillhaveto cut jobs, the availability of skilled workers represents one of the main employment relatedchallenges throughoutmost European shipbuilding countries (see Figure 13). The pressure arisingfromthelackofskilledlabourisapparentlynotdirectlyrelatedtonationaltrainingsystems,sincethedatapointstohighproblempressuresindifferenteconomicmodels.ParticularlyinPoland,Portugal,Norway,CroatiaandtheUKtheproblempressureissignificantlyhigherthantheaveragevalue.AsforCroatiaandPolandthisphenomenoncanbeexplainedbytheexpatriationofworkersmaderedundantathome,duetomoreattractivewagelevelsandemploymentperspectivesabroad.

Recruitingskilledpersonnel,however,isproblematicinmostEuropeanshipbuildingcountries.Onlyin Spain, Italy and Finland is the pressure considerably below the overall mean (see Figure 13).EspeciallyinFinlandandSpain,thisresultcanbeexplainedbythefactthat,duetothehugenumberof redundancies in the shipbuilding sector in recent years, the required skilled workers are (still)availableonthenationallabourmarkets.

Source:SectorCommitteeIndustriALLEurope2015

Figure13:ProblemPressurefortheSupplyofSkilledWorkersfrom1(noproblem)to10(bigproblem)

DrawingontheGermanexampleagain,asurveyamongGermanworkscouncilsonshipyardsrevealedthat60percentoftheyardsparticipatinginthesurveyhadproblemsfillingjobvacancies.Inthiscase,theproblemisnotsolelylimitedtojobsrequiringspecializedskills,butcanbeobservedacrossthe

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wholespectrumofjobsintheshipbuildingsector.8WithinthesurveycarriedoutbytheSectorSkillsCouncil, 67%of the shipyardsparticipating confirmed that theyexperience important recruitmentissues.Theshareislowerforequipmentmanufacturers,classificationsocietiesanddesignoffices(seeFigure17).

A further employment-related challenge is the increasingnumberof sub-contractorsonEuropeanshipyards.OnGermanyards,forinstance,nearlyonethirdofallemployeesworkingattheshipyards(29%)areemployedbyasub-contractor,whileafurthertenpercentareagency-workers.

Incomparison,theshareofworkerswhoaresub-contractorsintheKoreanshipbuildingindustryisevenhigher,andincreasedfrom33percentin2000tomorethan60percentin2012.9

In conclusion, this brief overview on employment development in the European shipbuilding andmarine equipment sector demonstrated that the firms are facing quantitative decline in directemploymentaswellasqualitativechangesinskillsrequirementsandemploymentcontractsandthatthereisneedtomanagethissituationbyincreasingcooperationbetweenemployeesandemployers’organizations, education and institutions and more proactively use anticipation of changeinstruments.

8cf.IGMetallShipbuildingSurvey2015,p.8,99cf.OECD–CouncilWorkingPartyonShipbuilding(2015):PeerReviewoftheKoreanShipbuildingIndustryandrelatedGovernmentPolicies,p.19

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4 EvolutionoftheEuropeanMaritimeTechnologySector.Driversandtrendsinfluencingfutureskillsneeds

Overthelastdecade,Europeanorderbookhascompletelychanged.In200475%oftheorderbookinCGTtermswascomposedbysteelintensivevessels(containerships,tankers,bulkersandothercargocarriers).In2014thepicturehascompletelychanged,cargocarriersaccountingjustfor20%oftheorderbook,and80%beingadvancedtechnologyhighvaluevessels,suchaspassengerships,offshorevessels,researchvessels,workboats,mega-yachtsorfishingvessels(seeFigure14).

Figure14:EuropeancommercialOrderbookbyShipTypes(inCGTterms)

Thereareseveraldriversinfluencingthemarketandfromwhichsomeskillsneedscanbeanticipated:

Fuelefficiency,costreductionsandenvironmentalregulationsPricesandcostsareimportantcompetitionfactorsinshipping(andhenceshipbuilding).Historically,highoilpricesoverthelastdecadeandtheovercapacitysituationinthecargoshippingmarkethaveledtoanattempttolowertransportcosts.Since2012,demandfornewvesselshasbeendrivenbyfuelefficiencyimprovements,withtheaimofreducingthecostsofshipping,butalsothoseofotheractivitiessuchasoffshore,transportofpassengers,fisheries,etc.Althoughthisisnotagreeningtrendin itself, lower fuel consumption results in lower emissions of both CO2 (greenhouse gas) and airpollutantssuchasSOxandNOx.Hence,animprovementinfuelefficiencyresultsinanimprovementof theenvironmentalperformanceof ships.Stakeholdersconfirmthatcost reduction through fuelefficiencyisthemainmarketdriverforgreeninginthesectoratpresent.

Despitethecurrentdownturninoilprices,internationalexpertsforecastarecoveryofpricesby2017,andthetrendtoreplaceoldfleetwithmoreenergyefficientvesselsisexpectedtocontinuedrivingthemarket.

Recentenvironmental regulations, coming fromboth the IMOand theEU,arealsobenefiting theEuropeanmaritimetechnologyindustry,inthesensethattheystimulatethedemandfornewvesselsandtechnologiestoensuregreenershipping.ThetargetstoreduceemissionsofCO2,NOxandSOx,and recentandupcoming regulations (suchas theestablishmentofEmissionControlAreasor theBallastWaterTreatmentConvention),ledtoaninvestmentinRDIactivitiesandthedevelopmentofnewtechnologiesandtoanincreaseintheneedfornew,greenervesselsandmoreretrofits.

Theuseof LNGasbunker fuel, installationof scrubbers,dual-useenginesandbatteries is alreadyimprovingtheenvironmentalfootprintofmaritimetransport.Dieselemits73.2kgofCO2perMillion

0%

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20%

30%

40%

50%

60%

70%

80%

90%

100%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

European commercial Order book by Ship Types (in CGT terms)

Ferries/Passenger ships Non-cargo/Offshore vessels General cargo ships Gas TankersTankers Containerships Bulk carriers

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Btu,whilenaturalgasemitsonly53.1kgperMillionBtu.Moreover,SOxemissionscanbereduced(to0withLNG),aswellasNOx(40%-90%dependingontheengine)andparticulatematter(95%-100%).

Attheendof2015,thereweremorethan70LNG-fuelledvessels inoperation,while80areintheorderbook.Europeanshipyardswillbuild55%oftheorderbookand86%oftheoperationalvesselsareownedbyEUandNorwayoperators.

LNGisalreadyanoptionasabunkeringfuelinEurope,thankstobunkeringfacilitiesin8Europeancountries and 21 new facilities under construction, expanding its availability to 14 countries. Themaritimetechnologysector isattheforefrontofanewopportunity,namelytheretrofittingofoldvesselsandnewbuildingwithstate-of-the-arttechnologythatwillbebuiltinEurope.

In order to achieve EU andUN environmental targets by 2020/2050, the implementation of newenvironmentalregulations(MARPOLAnnexVI,BWMConvention,HongKongConvention,BiofoulingandNoiseGuidelines)andrelatedsafetyrequirements(IGFCode,DamageStability)isnecessary,andtheindustrywillneedtodevelopfurthergreentechnologies.Thenewinstrumentshaveasignificantinfluence on ship design, ship production and the competences required at shipyards and shipequipment manufacturers. Future ships will be designed and constructed with more and morecomplexequipmentbasedonfunctionalrequirementsusingagoal-basedapproach,whichrequireshighly educated naval architects and crews capable of copingwithmore new equipment and theinteractionofitwiththeshipanditsoperation.

In order to ensure that European companies invest in RDI activities and lead the development inpioneeringinnovativeandgreenertechnologies,theremustbecertaintyabouttheenforcementandimplementationdeadlines of those regulations.Delays andpostponements in the enforcement ofregulationscanhaveanegativeeffectonfirstmovers.

OffshoreOil&GasThekeydriverforthedemandofoffshoreoilandgastechnologyandvesselsistheprevailingoilpriceandtheperceptionoffutureoilpricedevelopmentvs.actualandexpectedcostdevelopment.Withhigheroilprices,wegetahighernumberofprofitableoffshorefields,moreexplorationactivityandthushigherspendingandahigherdemandforrigsandships.ThecurrentlowoilpricesareaffectingthemaritimetechnologyindustryandchallengingsomeEuropeancompaniesthatarespecialisedinthismarketsegment.However,mostinternationalexpertsconsiderthatthecurrentoilprice(around$30perbarrel)isnotregardedassustainableinthelongerterm.Mostobserversseehigheroilpricesin2017,oralreadyin2016.

Withinoilandgasproduction, there isa trendtowardsoffshoregrowing faster thanonshore,andwithinoffshore,deep-waterisgrowingfasterthanshallow-waterproduction.Thistrendisexpectedtocontinue.Since2008,60%ofoffshoreoilandgasdiscoverieshavebeenindeep-water.Inaddition,distancesfromshoreareincreasing,leadingtohigherdemandformoreefficientvessels.Moreover,therearenewrequirementsandaneedformorerigsandshipscapableofoperatingintheseareasinthemostefficientandsafeway.Morecost-efficientvesseldesignsandsystemsarealso importantdrivers,sincevesselswill thenhaveacompetitiveadvantage,obtainhigherutilisationandthusbepreferredinthemarket.Intheshortterm,mostoffshoremarketswilltakeahit,whileafewothersmaybepickingup,butincreasedactivityisagainexpectedtowards2020.

Insummary,asidefromthecurrentdifficultiesforthecompaniesspecialisedinoffshoreoilandgas,arecuperationisexpectedinthecomingyears.Withtherecuperationtheoilprices,asharpincreaseisexpectedinthedemandfornewvesselsandtechnologiescapableofworkingmorecostefficientlyindeeper,moredistantwatersandinadverseenvironmentalconditions.Forasuccessfuldevelopmentofthosetechnologiesandvessels,skillsinthisregardneedtobedeveloped.

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NewMarkets:BlueGrowthactivitiesThescarcityofresourcesonshoreispromptingtheneedtosignificantlydevelopindustrialactivitiesatsea.Thesebusinesseswillbeasdiverseasrenewableenergies,aggregatemining,shallow&deepseamining,offshoreoil&gas,shipping,yachtingandmarinas,cruisetourism,coastaltourism,fisheries,maritimesecurity,biotechnologies,desalination,aquaculture,fishfarming,etc.

RenewableenergysourcesEU energy and environmental policies aim to rely more on renewable energy sources, given theexpectedpopulationgrowthincoastalareas,saturationoftheshoreandclimatechange.Inparticular,by2030,renewableenergiesshouldrepresent27%oftheEuropeanenergymix. Inadditiontothecontributiontothelong-termobjectivesoftheEUwithrespecttothereductionofgreenhousegasemissions, the target of self-sufficiency and reduced dependency towards volatile and unsecuredenergy sources is a strong identified trend that will lead to an acceleration of renewable energydeployment.Inthenexttwodecades,renewableenergywillbeoneoftheworld'sfastest-growingenergysources,increasingatover5%peryear.

Marinerenewables(MRE)Marinerenewables(MRE)isamajorconstituentofthis,andtherewillbeanincreasingmarketforenergydevices forwave,wind (both floatingor gravity-based), tidal current andOTEC alongwithvesselstosupportmaintenanceandmonitoringofthesedevices(manyofwhicharepredictedtobeunmanned,ifnottotallyautonomous).

ThedevelopmentofMREwillhelpreducetheEU'sdependencyonfossilfuelsfortheproductionofelectricityandreinforceitsenergysecurity.Thisaspectcouldprovetobeparticularlyimportantforisland states and regions where ocean energy can contribute towards energy self-sufficiency andreplacehigh-costelectricityproducedbydieselpowerstations.

Alltheavailabletechnologieswillhavetocontributetowardachievingthisambition,whichshallallowEuropetokeepitsleadershipinthisfield.In2030,marinerenewableenergieswillhavestartedtheircommercial deployment phase, with a forecast 100 MW plus installed for wave power and tidalcurrentpoweralone,andover30GWforoffshorewindfarms.

OffshorebiomassproductionanddesalinationAmongothermarineresources,offshorebiomassproductionanddesalinationwillbecomeotherkeydrivers. These two industrial offshore developments will support human shore-based activitiesconcentration,with lessand lessareadedicatedtoagricultureandmoreandmoretocleanwaterrequirements.

AquacultureThese trends are also being observed in aquaculture. Continuously expanding, it is expected thataquacultureproductioninEuropewillnearlydoubletoreach4.5Mtonsoffoodproductionby2030,andincreaseby50%thenumberofworkersdirectlyemployed,reaching150,000indirectworkforceand100,000indirectlyinvolved.

Thisisbeingrealisedthroughacontinuousmodernisationofthisindustry.Currentfarmsarealreadyinstalledfurtheroutatseaandrequireevenmoreadvancedtechnologies.Automation,monitoringsystemsandadvancedprocessingmachinehavestartedbeingusedorenteringthemarket.

MutualisationandColocationTheseparatedevelopmentoftheseindustriesbringsalonganothertrend.Thedevelopmentofnewoffshoreactivitiesislookingtowardsthemutualisationofcoststhroughtheutilisationofmulti-use

16


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offshoreplatforms.Thiswillleadtoevenmorecomplexsystemsofsystemsatseathatwillhavetobeappropriatelyhandledbyacompetentworkforce.

BeitforMRE,Aquacultureorotherrelatedactivities,itisexpectedthattherewillbeasharpincreaseinthedemandforspecificorcross-sectoralnewvesselsandadvancedtechnologiescapableofworkingmorecostefficientlyindeeper,furtherwatersandinadverseenvironmentalconditions.Forsuccessfuldevelopmentofthosetechnologiesandvessels,therelevantskillsneedtobedeveloped.

ICTThenewoffshoreactivitiesandtheincreasedcomplexityofvesselswillleadtoariseintheneedforICT. New technologies are being developed in the fields of manufacturing and automation. Theindustry is looking at robotics and additive manufacturing and 3D printing as cutting-edgetechnologiesthatwillcontributetotheinnovationofproductionprocesses,asignificantreductionofcostsandimprovedefficiency.Thedevelopmentof3Dprintingwillsignificantlyincreasetheabilityofships’stafftocarryoutcomponentreplacementandmaintenancetasks.

The development of ICT is also forecast to have a significant impact on vessel operations, on theimprovementofcommunicationsbetweenshipandshore,vesselmonitoring,improvedvesselsafetyandsecurityandwell-beingofseamen,includingmedicaltreatment.ThecontributionofICTtowardsvesselcontrolmaypotentiallyleadtounmannedvesseloperation.

TheArcticDimensionAsglobaltemperaturesrise,theArcticareasoftheworldareopeninguptoshippingandexplorationandextractionofnaturalresources(oilandgas inparticular).Themarketpotential ismassive:thevalueoftheArcticMaritimeTransportMarketcouldrunuptoEUR30billionthrough2020(Source:TeamArcticFinland).TheArcticSocietyofFinlandestimatesthat,inthenext10-20years,around20-40newicebreakerswillbeneededtoreplaceexistingshipsalone.Furthervesselswillbeneededtoguide ships through the Northern Passage and to pave the way for offshore energy operations.Icebreaking offshore support vessels and icebreaking construction vessels are expected to seeincreasingdemand.TheoilandgasreservesinArcticareasarelocatedunderice-covered,deepwater,and extraction will have to take place in very harsh conditions. Hence, Arctic offshore energyoperationswillrequiretop-of-the-rangevessels.

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5 QualitativeanalysisofSkillsandOccupations

Contrary to the old conception of a manual, non-sophisticated industry, European maritimetechnology is an innovation-driven, technologically advanced industry thatprovidesquality, highlyskilledjobs.

Together with the specialisation of the industry in high technology, complex products (the mostadvancedvesselsandtechnologies) the innovativemanufacturingprocessesandglobalisedmarketandsupplychainrequiremoreandmorehighlyskilledtechnicalpeopleandsellers,andfewerandfewerlower-qualifiedpeople.

This levelofemploymentofhighlyqualifiedandhighly skilledpersonnel supports theviewof thereport “Competitive position and future opportunities of the European marine supplies industry”(FundedbytheECDGEnterpriseandIndustryContractNo.SI2.630862)thatthelong-termfutureofthe sector is dependent on the utilisation of key strengths, such as a strong market position,technologicalleadership,stronginfrastructure,co-operativepartners,theskillsofemployeesandtheabilitytoidentifyopportunitiesinnewemergingmarketsaswellasmaintainacloserelationshipwiththeircustomerbase.

Nowadays,itisestimatedthat50%oftheemployeesintheindustrycomefromahighereducationbackground,with a technical university degree. These personnel are essential for the companies,coveringintermediatemanagementanddesignpositions.Another30%arehighlyskilledworkerswithvocationaleducationandtraining,doingworksuchaswelding,painting,electricity,boiler-andpipe-making,etc.Whitecollarsdoingadministrative,management,financing,etc.accountfor13%ofthetotalstaff(seeFigure15).

Figure15:DistributionofTechnicalPersonnel–%ofTechnicalPersonnelEmployed

Lookingmorecloselyattheprofileofemployeesbycompanytype(seeFigure16),itcanbeseenthat:

- 35-40% of the workers in Shipyards and equipment manufacturing companies have atechnical/engineeringeducation,and40-50%aretechnicalworkerswithaVETbackground.

- Companieswhicharenotinvolvedinmanufacturinggoodsandmostlyprovideservices(i.e.classificationsocieties,consultingofficesetc.)tendtoemployahigherpercentageofhighly

skilledpersonnelwithhigheracademicqualificationsanddegrees

Whitecollar/admin

13%

Technical/engineeringAcademic,49%

Technicalhighskilledvocational,33%

OtherS

killed

Workers5%

DistributionofTechnicalPersonnel

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Figure16:DistributionofTechnicalPersonnelpercompanytype(fourmaincategories)

Theeconomicandfinancialcrisisthatstartedin2008broughtdrasticreductionindemandfornewordersglobally,impactingbothshipyardsandequipmentsuppliersinEurope.Thelossofexperiencedworkerswholefttoothersectorsischallengingtransmissionofknowledgetonewgenerations.Eachvesselbuiltisauniqueprototype.Foreachneworder,companiesdesignauniqueproductaccordingtotheneedsofthecustomer(theship-owner).Thecomplexityanduniquenatureoftheproductsmakes it necessary to count on themost highly skilled and experiencedworkers. However,manycompaniesareexperiencingdifficultiesrecruitingworkerswithadequateskills.

ThischallengewasalreadymentionedbytheexpertsgrouponskillsandemploymentissuesintheframeoftheLeaderSHIP2020strategy.WithinthesurveycarriedoutbytheSectorSkillsCouncil,44%oftherespondentsconfirmedthattheyexperienceimportantrecruitmentissues.Figure17illustratesinmoredetailtherecruitmentissuespercompanytype

10%

17%

10%

9%

90%

41%

83%

34%

37%

5%

54%

5%

3%

3%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

ClassificationSociety

ComponentSupplier

ConsultingOffice,NavalArchitecture

Shipyard

Distributionofpersonnelpercompanytype

Whitecollar/administration Technical/engineeringwithacademictechnicalbackground

Technicalhighskilledworkerswithavocationaltrainingbackgroundorsimilar Otherskilledworkerswithnon-formaleducationbackgroud

33%

33%

25%

67%

67%

67%

75%

33%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


ComponentSupplier


Shipyard

Currentrecruitmentissuespercompanytype

Yesproblemswithrecruitmentprocess Noproblemswithrecruitmentprocess

-19-


Figure17:Recruitmentissuespercompanytype

Amongthereasonsidentifiedbytheindustryasdriverstothedifficultyinrecruitmentofworkerswithan adequate set of skills, amain issue is the lack of appropriately experienced and appropriatelyqualifiedstafftrainedandreadilyavailableonthejobmarket(seeFigure18).

Figure18:Currentrecruitmentissues

ThetypeofproductsbuiltinEuropemakehavingahighlyskilledworkforcewithextensiveexperienceandknow-howessential.Thelossofexperiencedworkersduringthecrisisyearsandtheagingoftheworkforcemakeitchallengingtoretainknow-howinthesector.Amongthemainreasonstorecruitin themediumterm(2 to5years), theexpected largenumberof retirements isoneof them(seeFigure 19). Ensuring the transfer of knowledge between generations is, therefore, of outmostimportancefortheindustryinthecomingyears.

Thediversificationoftheindustryintonewemergingmarkets,suchasoffshorerenewableenergies,andsupportingbusinessdevelopmentand technologicalevolutionarealsomaindrivers for futurerecruitment.

74%68%

53%

21%

0%0%

10%

20%

30%

40%

50%

60%

70%

80%

Lackofappropriatelyexperiencedstaff

Lackofappropriatelyqualifiedstaff

Lackofappropriatemixofskillsorhighly

specificskill(s)

Unabletoofferappropriate

salary/package

Issueswithvisas/immigration

CurrentRecruitmentissues

2% 2%5%

2%

16%

7%

12%12%

2%

7%

7% 12%2%

2%

7%7%

9%

7%

12% 7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

TosupportbusinessexpansioninEurope TosupportbusinessexpansionintheRoW Replacementofretiringstaff Diversificationofbusinessactivities

Reasonsforplannedrecruitment(2-5Years)

ClassificationSociety ComponentSupplier ConsultingOffice,NavalArchitecture Other Shipyard

19


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Figure17:Recruitmentissuespercompanytype

Amongthereasonsidentifiedbytheindustryasdriverstothedifficultyinrecruitmentofworkerswithan adequate set of skills, amain issue is the lack of appropriately experienced and appropriatelyqualifiedstafftrainedandreadilyavailableonthejobmarket(seeFigure18).

Figure18:Currentrecruitmentissues

ThetypeofproductsbuiltinEuropemakehavingahighlyskilledworkforcewithextensiveexperienceandknow-howessential.Thelossofexperiencedworkersduringthecrisisyearsandtheagingoftheworkforcemakeitchallengingtoretainknow-howinthesector.Amongthemainreasonstorecruitin themediumterm(2 to5years), theexpected largenumberof retirements isoneof them(seeFigure 19). Ensuring the transfer of knowledge between generations is, therefore, of outmostimportancefortheindustryinthecomingyears.

Thediversificationoftheindustryintonewemergingmarkets,suchasoffshorerenewableenergies,andsupportingbusinessdevelopmentand technologicalevolutionarealsomaindrivers for futurerecruitment.

74%68%

53%

21%

0%0%

10%

20%

30%

40%

50%

60%

70%

80%

Lackofappropriatelyexperiencedstaff

Lackofappropriatelyqualifiedstaff

Lackofappropriatemixofskillsorhighly

specificskill(s)

Unabletoofferappropriate

salary/package

Issueswithvisas/immigration

CurrentRecruitmentissues

2% 2%5%

2%

16%

7%

12%12%

2%

7%

7% 12%2%

2%

7%7%

9%

7%

12% 7%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

TosupportbusinessexpansioninEurope TosupportbusinessexpansionintheRoW Replacementofretiringstaff Diversificationofbusinessactivities

Reasonsforplannedrecruitment(2-5Years)

ClassificationSociety ComponentSupplier ConsultingOffice,NavalArchitecture Other Shipyard

20


21


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Figure21:MediumTermRecruitmentTypesofPersonneltobeemployed

Amongtherespondentsmentioningtheirintentiontorecruitschoolleaversandapprentices,shipyardcompanies and component suppliers represent themajority. Their business needs are focusedonskilledoperatorsandtechnicianstoreplacehighlyskilled,retiringstaff(seeFigure22).

Figure22:MediumTermRecruitmentTypesofPersonneltobeemployed

SkillsdemandanalysisAmongthemostdemandedskillsandoccupations,asshownbytheresultsoftheSkillsCouncilsurvey,wefindthefollowing:

Engineer NavalArchitect Designer ProjectManagerWelders Fitters ElectricalEngineers 3DDesignexperts

28%

40%

63%58%

9%

0%

10%

20%

30%

40%

50%

60%

70%

Schoolleavers/apprentices

Graduates Experiencedtechnical

Experiencedprofessional

Other

Mediumtermrecruitmentroles

10%

28%

10%

33%

13%

31%

21%

20%

40%

31%

28%

30%

33%

33%

38%

21%

30%

33%

3%

3%

10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


ComponentSupplier


Shipyard

Other

Mediumtermrecruitmentrolespercompanytype

Schoolleavers/apprentices Graduates Experiencedtechnical Experiencedprofessional Other

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Thetablebelowprovidesanoverviewoftheresponsesreceivedpercompanytype.

ComponentSuppliers ConsultingOffice,NavalArchitecture Shipyards Other

Perm

anen

tSta

ff

TechnologistNavalArchitectMarineEngineerEngineering/Design/ProductionElectronicsProjectManagersMechanicalSpecializationDesignerServiceEngineerQualityManagerCNCoperatorAdministrator

NavalArchitect3DModellerHullandStrengthexpertAeronauticalEngineer

AssistantManagerMechanicalengineerDesignerSteelFittersProjectmanagers

ICTExpertWeldersElectriciansElectro-MechanicalEngineerCuttersOffshoreengineersSustainabilityexpertsMechatronicsoperators

Fixe

dTe

rmS

taff

Welders StabilityExpertOHSAS18001managerElectrical systemsengineer3DPipingdesigner3DMechanicaldesigner3DHulldesigner

WelderPaint &ScaffoldingSupervisorPipers / PipefittersManualSupervisors

OffshoreengineersSustainabilityexperts

Typeofskilland/orpositionrequired

Specific skills shortages envisaged in themedium termwere also identified by the Skills Council´ssurvey.Thequestionpromptedtherespondentstodescribe intheirownwordswhattheyfelttheskillsproblemstheywouldbefacedwithinthemediumtermwere.Theresponsesreceivedcouldbegrouped in two main categories: Company Related, where the responses were describing skillsshortageissuesspecifictotherespondent’scompanyandSectorRelated,wheretheresponsesweredescribing more generic, medium-term skills issues that the sector and their company areencountering.Belowaretheresponses:

CompanyRelated SectorRelatedMore personnel needed due to CompanygrowthPracticalexperienceandskillsshortage in thefollowingdisciplines:productionstabilitycalculationselectricalsystemsshippingandportssalespersonnelqualityengineerstechnicalwritersFEMengineerstechnicalStaff

DifficultiestoattractpeopleintheindustryMismatches between the Educational Systemand the employers requirements leading tolossofcompetitiveness.Vocationalschoolsdonot produce ready-to-work employees forshipyards.Shipbuilding of complex vessels (i.e. CruiseShips) requires relatively longexperienceandthattypeofpeoplearenotamongjobseekers.Personnel with poliqualification (design, inserviceoperation,conformityassessment)Level of competence in different areas -Welding,electricity,boilermaking

Specificskillsshortagesenvisagedinthemediumterm

23


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SkillsgapinnewrecruitsThequestiononwhethernewrecruitsintheorganizationoftendonothavetheskillsrequiredfortherole was also investigated. Of respondents, 67% confirmed that there is a skills gap for newrecruitments(seeFigure23).Thisisasubstantialresponserateforacrucialissue,whichdemonstratesthereisaneedforsectoralactioninordertoaddressthis.

Figure23:SkillsGapsinNewRecruits

Analysingtheskillsgapfornewrecruitsfurthershowsthatthecompanieswhichsuffermorefromtheskills gaps fornew recruitmentsare shipyards,whichalready facebigger issues for recruiting (seeFigure24).

Figure24:SkillsGapsinNewRecruitspercompanytype

FutureactionsInordertoassessfurtherhowtheorganisationswouldaddresstheskillsgapissues,theywereaskedwhat actions they plan to take. The majority of respondents plan to take specific actions, whichreinforcestheperceptionthatthereisasectoralviewthataskillsgapexists,andalsodemonstratesthatthecompaniesinthesectorarewillingtodosomethinginordertoimprovethesituation.

Yes,67%

No,33%

Doyoufindthatnewrecruitstoyourorganizationoftendonothavetheskillsrequiredfortherole?

100%

42%

63%

60%

100%

58%

38%

40%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


ComponentSupplier


Other

Shipyard

SkillsGapsinNewRecruits(responsespercompanytype)

Yes No

24


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Figure25:FutureActionstoAddressShortfallinSkills

Amongfutureactionstoaddressskillsgap,fourinitiativesappeartobemostpopular:“Reviewinternaltrainingprogrammes”,“Utiliseexternaltrainingprogrammes”,“Workwithotheractorsinthesectortodeveloptheskillsrequired”and“Promotethesectortoschoolleaversandgraduates”(seeFigure25). Some of these actions have been presented during the workshops as best practices orrecommendationsforcommoninitiativesataEuropeanlevel.

RecruitmentstrategiesRespondentswereaskediftheyconsideredacentralisedEurope-wideonlinerecruitmenttoolforthemarinesectorwouldbebeneficialforrecruitingstaffandalsoifthisplatformshouldbeonlyforjobseekersorforcompanies,orforboth.

Byfarthemajorityofrespondentsfelt thatacentralisedEurope-wideonlinerecruitmentplatformwouldbebeneficial,andthatitshouldincludedetailsofbothavailablejobsandprofilesofindividualslookingforemployment(seeFigure26).

BenefitofCentralisedEurope-wideonlinerecruitmenttool

UseofaCentralisedEurope-wideOnlineRecruitmentTool

Figure26:CentralisedEurope-wideonlinerecruitmenttool

0%

10%

20%

30%

40%

50%

60%

70%

80%

Reviewinternaltrainingprogrammes

Utiliseexternaltrainingprogrammes

Workwithotheractorsinthesectortodevelop

skillsrequired

EmploystafffromoutsideEU

Promotethesectortoschoolleaversand

graduates

Payhighersalaries Other,pleasespecify Noneoftheabove

FutureActions

Yes- verybeneficial

28%

Yes- quitebeneficial

46%

Don'tknow19%

No- notbeneficial 7%

EUonlinerecruitmenttoolfortheMarineSector

Advertiseavailablejobs

only18%

Both77%

EUonlinerecruitmenttoolfortheMarineSector

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6 InnovativeToolsandStrategiestoMonitorSkillNeedsandAddressSkillsMismatchesinSector

Three thematic workshops were organized to present, discuss and analyse, amongst experts andstakeholders, the sector’s employment situation, including forecasts and trends, the qualitativeevolutionofskillsinthesector,innovativetoolsandnational,regionalandlocalinitiativestoolsandstrategiestomonitorskillsneedsandtoaddressthequestionofskillmismatchandgapsinthesector.Annex1includesathoroughdocumentationofthethreethematicworkshopsthattookplacein2015and all the presentations and relevant files that were presented in these three events can bedownloadedfromhttp://wegemt.com/skills/

Thissectionprovidesashortsummary,outlininginfourdifferentcategoriesthoseInnovativeToolsand Strategies to Monitor Skill Needs and Address Skills Mismatch successfully implemented byvariouscompaniesinthesector(asexamplesofgoodpractice).

CompanyLevel

ThecaseofRoyalIHCRoyal IHC, the market leader in the design and manufacture of efficient and integrated dredgingvesselsandequipment,employsmorethan3,900staff,themajorityofthembeingpermanent.TheaverageeducationlevelatIHCisincreasing,andthistrendisexpectedtocontinueoninthefuture.ArecentskillsevaluationatRoyalIHCresultedinthefollowingfindings:

• TherewillbeafutureneedformorehighlyeducatedemployeesinthedisciplinesofSales,EngineeringandProduction.

• Achangeinthestructureofthecompany’ssalesforcewouldbenecessaryinordertoadapttothechangingneedsofthecustomers.

• Thereisanincreasingneedforbasicengineersandadecreasingnumberofdetailedengineers.• Itisexpectedthattherewillbelessdemandforproductionemployeesinthecomingyears

duetotheshifttocountriesoutsidetheNetherlands,suchas:Poland,Romania,Croatia,ChinaandVietnam.

Inordertoaddresstheskillsrequirementsoftheworkforce,thefollowingstrategiesandbestpracticesareemployedatRoyalIHC:

• Thecompanyoperates itsownschool,where theyoffera2-yearweldingand ironworkingeducationprogrammetoapproximately30youngpeopleeveryyear.

• Thecompanyintendstoincreasetheentrancelevelofyoungpeoplethatentertheschoolinordertobeabletotrainthemtoahigherlevel,suchas(service)engineers.

• ThecompanyiscloselycooperatingwithlocaluniversitieslikeTUDelftinordertoattracttheirstudents.

• ThecompanyisplanningtoshiftoneoftheirR&DdepartmentstothecampusofoneofthelocalUniversities(TUDelft)inordertocooperatemorecloselywiththem.

ThecaseofFactoríasVulcanoFactorías Vulcano is a shipyard in Vigo, Spainwith expertise in product carriers, offshore vessels,research vessels, as well as other miscellaneous vessels, such as trawlers, RORO containerships,cementcarriersandLPG’s.Currently,theshipyardencountersthefollowingskills-relatedissues

26


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• There is a serious training problem, as the old highly specific training schools havedisappeared. The current qualifications are not specifically tailored to the needs of theshipbuildingindustry.

• Thesynthesisshipyardneedsprofessionalsabletoperformanalysis,diagnosis,reportinganddecision-makingtasksinlarge,complexprojects.

• Mostdegreesdon’tmakesignificantreferencetotheindustryand,insomecases,noneatall.Thisbecomesaseriousissuewhenconsideringtheabilitiesthatamiddlemanagermusthavetodohis/herjobasamanager.

Inordertoaddresstheskillsrequirementsandtodefinetheskillswhichareessentialforashipyard,FactoríasVulcanohasconsideredthreekindsofskillsrequiredtodevelopaprofessionalcareerinthecompanyforthecorrectperformanceofhighlevelfunctions:

• AccessTraining:thisisthetrainingand/orminimumqualificationsrequiredfortheadaptationofapersontoajob/role.

• AdditionalAccessTraining:thisistheprofessionaltrainingrecommendedforthepersonwithaspirations to access a job/role. This includes training programs related to the mostprestigiousbusinessschoolsinthecountry.

• Transversal and/or Additional Training: this improves the ability of theworker to develophis/herskills,withoutconstitutinganaccessrestriction.

ThecaseoftheFrenchNavalIndustryThe naval industry and yachting, togetherwith oil and gas, constitute an industrial branch of theFrenchMaritimeCluster,whichemploys100,000people in France. The Frenchnaval industry is amajor economic partner in local territories as it provides work for 69 shipyards and about 480companies(2012statistics).

The skills situation is quite complex,withmore than 300 different positions existingwithin navalindustry companies, mostly in technical areas such as welding, mechanics, electro-technics,maintenance,designandengineering.

In order to address the skills requirements needed by business, several strategic initiatives areundertakenbytheFrenchNavalIndustry,suchas:

• Agroupofindustrialmembers(HRpersonnel)meeteverymonth(OneHourConferenceCall)andworkoncommonprojectsrelatingtoskillsneeds.

• Anothergroupofvocationaltraining(VT)providershelpsstructureandofferinitialtrainingthatiscloselyadaptedtobusinessneeds.

• ProjectshavebeenlaunchedwithFrenchNationalEducationtoadaptdiplomaswhichconcernmostlyoperatorsandtechniciansinmechatronics,vesselconceptionandwelding.

• LaunchedduringEURONAVALattheendof2012byGICAN,theFrenchNavalCampusisawayforthekeytrainingactorsinthenavalindustrytogetdirectinformationregardingbusinessneedsandtoworkwithcompaniesonshort-andlong-termsolutions.Themaingoalsofthiscampusaretoprovideaneffectivestructuringof“bottom-up”trainingpathsforspecificskillsrequired by the naval industry (from operator to engineer) with professional (and whenpossible, international) certificates, as well as to promote careers through a website(www.campusnavalfrance.fr)wherevideosanddocumentsarepubliclyavailable.

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Cooperationbetweenindustryandeducation

ThecaseofIRT(InstitutdeRechercheTechnologique)JulesVerneTheInstitutdeRechercheTechnologiqueJulesVerneisdedicatedtoadvancedcompositesproductiontechnology,metal andhybrid structures, and aims tobecome,within thenext ten years, a globaltechnological innovation campus. The institute is active in 4 main areas: strategic technologicaldevelopment,researchprojects,training,technologytransferandintegrationofSME’s.

TheJulesVerneManufacturingValleyconsistsofatechnologicalclusterofmorethan300companies,aresearchclusterwithmorethan1,000researchers,acampuswithmorethan2,000studentsandcoversanareaofmorethan60,000m².Thiscreatesarelativelycomplexenvironment,asfarasskillsandexpertiseneedsareconcerned.

In an attempt to respond to the expertise needs expressed by companies in the sector (such asdifficultiesinrecruitmentnow,preparingforthefutureandtheindustryofthefuture)andinordertoimprove the quality of the training, the IRT Jules Verne federates and supports development viatrainingandhasinitiatedaManufacturingAcademyonitssiteinNantesthatwillaccommodate1,000studentsandwillsupportadvancedtraining.

TheManufacturingAcademyiscloselycooperatingbetweenacademicpartnersandlocalcommunitiesintheregion,witheducationalgoalsdefinedbycompanies.TheIRTJulesVerneanditspartnersareworking on the construction of this campus, which will establish a network of education centreschargedwithprovidingtrainingwhichfulfilsthedemandsofindustryaswellasamutualisedcampusdedicated to apprenticeship training, and which is expected to welcome students from the 2018academicyear.

TheVascoDaGamaProjectOneexcellentexampleofcooperationbetweenindustry,educationandpublicauthoritiesistheVascoDaGama Project. The aim of the VDG-TGSMT project (co-financed by the EU) is to contribute toachievingthedevelopmentofhighprofessionalskillsandthedevelopmentofEducationandTrainingwithintheEU.Inparticular,itsaimisimprovetheskillsofpersonsemployedinEuropeanshipping,withaviewtoaddressingspecificchallenges,suchasmaritimesafetyandreductionofenvironmentaldamage, and to lay the foundations for mobility within Europe, involving education and traininginstitutions(alongthelinesofa‘maritimeErasmus’).

TheprojectleaderistheCPMR,anorganisationthatbringstogethersome160regionalauthorities.ManyofthemareinvolvedinthegenericVascoDaGamainitiative,forwhichmainobjectivesare:

• Topromotethequalityofeducationandtraininginthemaritimetransportsector• EnhanceEuropeanmobility forstudents,teachersandseafarers in linewiththe“Maritime

ErasmusConcept”• Encouragenetworkingbetweenregions,educationalandtraininginstitutionsandtheprivate

sector

Thestructureanddifferentworkpackagesoftheprojectwerepresented.Theprojectaimedtoalsoaddresstheskillsgapinthemaritimetransportsectorby:

• Developinginnovativemoduleswithafocuson“key”issues;• Encouragingparticipationofstudentsandseafarersinmobilityschemes;• HarmonisationofprogrammesandsemestersinEUMETs;

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• Designinginnovativehardwareandsoftware;• Developing“transnationalcooperation”exercises;and• Identifyingthatstudentsshouldspendmorehours insimulatorsmeansthere isaneedfor

moreinvestmentsin“infrastructures”andmore“teachers”.

ThecaseofMarineValleyKlaipėdaUniversityInLithuania,the“BalticValley”Associationwasestablishedinordertocoordinateresearch,academicandbusinessactivitieswithin the“IntegratedScience,StudiesandBusinessCentre (Valley) for theLithuanian maritime sector”. The founders of the association are public scientific and academicinstitutions and business entities. TheMarine Valley Programme is aimed at creating a cluster ofmaritime, knowledge-based economy by consolidating the existing potential and promotingintegrationofmaritimeresearch,academicstudiesandbusinesses.MainobjectivesoftheProgrammeinclude:

• Creating a modern infrastructure for the general needs of Lithuania’s maritime research,academicstudiesandtechnologicaldevelopment;

• Encouragingmoreactiveapplicationofscientificoutputinproductionandbusiness;• Promotingtheoccurrenceofneweconomicentitieswithtechnologicalprofileandbasedon

thepracticalapplicationofscientificoutput;openingpossibilities forcooperationbetweenknowledge-demandingmaritimebusinesses,academicinstitutionsandresearchteams;

• Strengthening the competitiveness of Lithuanian maritime research and technologies oninternationalmarkets;creatingconditionsforattractingmoreforeigninvestmenttobusinessandresearchactivitieswithinLithuania’smaritimesector.

ProjectsoftheProgrammeinclude:

• DevelopmentoftheMarineValleyNucleusandRenewalofStudyinfrastructure• DevelopmentofStudyInfrastructure• DevelopmentoftheLaboratoryoftheFisheryandAquaculture• DevelopmentoftheEngineeringNetworksandCommunications• DevelopmentoftheInfrastructureofKlaipėdaScienceandTechnologyPark• Strengtheningofthe“BalticValley”Association• DevelopmentandUpgradeofthe1stand2ndLevelProgrammesforMaritimeStudies• Upgradeofdoctoralstudies,qualificationofacademicstaffandstimulationofMobility• EstablishmentoftheNationalCentreforMarineScienceandTechnology

Inter-sectoralcooperation

ProposalsoftheFrenchNationalCouncilforIndustryThe French National Council for Industry has set up a working group with representatives fromstrategicindustrycommittees,unionconfederations,ministriesforeducation,employment,economyandindustryandregionalcouncils

Theworkinggroupmetonceamonthinordertoshareexperiencesanddiscusshowtoaddressskillmismatchesandgapsbetweenjobdemandsandoffers,andtoelaborateproposals.

The purpose of these proposals, focusing only on initial professional training, is to improve theinteraction between industrial skills-related needs and educational systems, providing initial

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professional training and developing an attractive professional and technological training policy,includingacommunicationcampaignaimedatteenagers,parents,teachersandmedia.

TheStrategicIndustryCommitteeswillshare,withintheFrenchNationalCouncilofIndustry,specificinformationregardingtheevolutionof jobs,skills,technologicaltoolsandworkingorganizations.Aroad map focused on Professional and Technological Education and Training will be defined andsupportedbyallthepartiesinvolvedintheworkinggroups.

ToimproveinteractionbetweenIndustryandEducationalandTrainingSystems,asharedanduniquemethodwillbeappliedbyeachStrategicIndustryCommitteeinordertoproduceaprospectivevisionofjobsandcompetenciesneeded,resultingfromrealsituationsandtransformationsobservedintheirterritories.Thiscommonreferencewillhelpbuildanationalindustrialvisionofjobsandcompetenceneedsandcanevaluatehowmanypeoplethesystemshouldeducateandtrain,andhowmanyofthemgetajobintheindustry

Toestablishexchangesonaregularbasisbetweenindustryandeducationalsystematthenationaland regional levels, each Strategic Industry Committee gets a referee within the Ministries forEducation,Employment,Economy&Industry,andtheregionalStrategicIndustryCommitteedevelopscontactsandinitiativesatthelocallevel.

SectoralcooperationattheEUlevel

European Sectoral Skills Council (ESSC) for the Textile Clothing Leather and Footwearindustry(TCLF)TheTCLFESSCaimsatimprovingthelevelofeducation,skillsandemploymentintheTextileClothingLeatherandFootwearsector,addressing(amongothers)issuesregardingtraining,qualificationsandskillsintheEuropeanlabourforceintheseindustries,theappealofthesectorforattractingyoungprofessionalsandtheassistanceneededbyenterprisesforbeingmoreflexibleinmeetingchangingcompetitivedemands.

Bybringing together key industrial stakeholders, educators, bi-partite and tri-partiteorganizationsdealingwitheducationandskillsdevelopment,andinterestedgovernmentrepresentatives,theTCLFESSCaimsataddressingawiderangeofissuesrelatedtoimageandtechnologicalchange,qualificationstandardsandpractices,planning,andhumanresourcedevelopment.Throughtheirparticipation,theEUsocialpartnerspledgetocooperateactivelyandloyallywiththeEUTCLSKILLSCOUNCILandtocontributetoitssuccessinaspiritofopennessandtransparency.TheoverallmissionsoftheEUTCLSKILLSCOUNCILare:

• TomonitorlabourmarketdevelopmentsintheTCLFindustriesandcontributetotheactivenetworking/informationexchangeoftheinvolvedsectoralnationalISPsand/ortherespectivesocialpartnersatEuropeanlevelregardingEducationTrainingandEmployment;

• To carry out reports/surveys/analyses to construct and maintain the interaction with thereferencemarketrelatedtoEducationTrainingandEmploymentoftheTCLFIndustries;

• Tofosterallianceswithin theTCLF Industriesandalsowithrelatedsectors (e.g.machinerymanufacturers,chemicalindustry,distribution,etcetera.)inordertomaximisesynergieswiththem;

• Todevelop andpromote an effective innovationpolicy, in keepingwith sustainability andflexibility,toincludetechnicalresearch,technologytransfers,vocationaltraining,etc.;

• Topromotetheimageofadynamicandforward-lookingindustrywithpublicinstitutions,themediaandeconomicdecision-makersregardingEducationTrainingandEmploymentoftheTCLFIndustries;and

• Toprovidethememberswithrelevantinformation

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7 Conclusions:TheEuropeanmaritimetechnologyindustryencompassesalltheenterprisesinvolvedinthedesign,construction,maintenanceandrepairofalltypesofshipsandothermaritimestructures,includingthecomplete supply chain of systems, equipment and services, as well as research and educationalinstitutions.

The maritime technology industry is the key industry for achieving the goals of the Europe 2020strategyforsmart,sustainableandinclusivegrowth,inparticularthrough‘bluegrowth’.

• Smart:The Europeanmaritime technology industry is a pioneer in the development of themostadvancedtechnologiesandvessels.InvestmentinR&D&Iandahighlyskilledworkforceareessentialforthesuccessoftheindustry.ThesectorcontributestoEurope´ssmartgrowthandknowledge-basedeconomy.

• Sustainable:o ThemostefficienttechnologiesaredevelopedinEuropetoensurethereductionof

environmental emissions from waterborne transport. The industry is forming acomprehensiveresearchstrategytoworktowardszeroemissionandtowardszero-accidentvesselconcepts.

o Theindustrycontributestodevelopmentofoffshorerenewableenergies,providingthetechnologiesandstructuresfortheirproduction,transmissionandstorage.

• Inclusive:WithanannualturnoverofEUR91billion,itcomprisesmorethan22,000companies,mostofthem SMEs, providing in excess of 500,000 direct jobs and thousands of indirect jobs,contributingtotheeconomicdevelopmentoftheregionsinwhichtheyaresituated(morethan200regionsinatleast18Europeancountries).

The'blue'economyrepresentsaround5.4millionjobsandgeneratesagrossaddedvalueofalmostEUR500billionayear.However,furthergrowthispossible,andthemaritimetechnologyindustryisthekeyenabler,providingthetechnologies,vesselsandstructuresneededtoensurethesustainabledevelopmentofallthemaritimeactivities(maritimetransportofgoodsandpassengers,promotionofoilandgas,offshorerenewableenergies,aquacultureandfisheries,securityanddefence,etc.).

Overthelastdecade,theindustryhasexperiencedameaningfulevolution.Europeancompanieshavespecialisedtowardsbuildingthemostinnovativeandadvancedtechnologiesandhigh-valuevessels.TheEuropeanmaritimesupplier industryproduces50%oftotalmarinesuppliesworldwide,andincivilshipbuilding,Europeanshipyardsrepresent20%oftheglobalorderbookvalue,ranking3rdafterSouthKoreaandChina.Ofglobalinvestmentinnewbuilding,40%comesfromEuropeanship-owners.Furthermore, several studies forecast growth in the demand for vessels and technologies in thecomingyears,providingapositiveoutlookforthesector.

However, the sector in Europe is facing challenges as a direct result of the ongoing financial andeconomic crises, and unfair competition from overseas, where protective legislations and tradebarriersareputinplaceinordertosupportmaritimetechnologyindustries.

In order to maintain its leading position and to continue contributing to Europe´s innovative,sustainableandsmartgrowth,thesectorneedstocountonahighlyskilledworkforcewhocandrivetheindustrialinnovation.

The maritime technology industry is one of the sectors with higher RDI intensity in Europe.Approximately9%oftheturnoveris investedinRDIactivities.Asaninnovation-drivensector,withoneofthehighestinvestmentintensityinRDI,itisdifficulttoanticipatetheskillneedsandadaptthe

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education, training and re-training programmes accordingly. Moreover, nowadays, the industrycontinues leading technologicaldevelopment in theemergingmarkets, designingandbuilding thetechnologies,infrastructuresandvesselstoenablethedevelopmentBlueGrowthactivities(offshorerenewables,greenandsafeshipping,maritimesurveillance,deep-seamining,etc.).

Somecompaniesexperiencedifficultiesfindingworkerswiththerightskills,andfindthatmismatchesbetweentheindustry’sdemandandtheexistingskillssupplyisarealchallengeforthedevelopmentofthesector.SeveralinitiativesarebeingdevelopedalloverEuropetosolvetheshortageofskillsandthechallengethatitconstitutesfortheindustry.However,theseinitiativesareimplementedatthenational,regional,localorcompanylevels,andthereisnocoordinationamongtheseinitiativesattheEuropeanlevel.

IntheframeworkoftheactionstakentocreateaEuropeanSkillsCouncilfortheMaritimeTechnologysector, it has been proven that the stakeholders see the need to act at the European level. Thefollowingobjectivesareseenasnecessarytoimproveskills,employmentandeducationinthesector:

- ImprovethecooperationamongdifferentstakeholdersalloverEurope,mainlycooperationbetweeneducationandtrainingprovidersandtheindustry,inordertodesignprogrammeswhich address the actual needs of the industry in terms of skills and knowledge. Theadaptation of innovative programmes for the sector should include high education(university),VETandlifelonglearningprogrammes.

- HarmonisationofcertificatesacrossEuropetoimprovethemobilityofworkers.

Inordertoachievetheabovementionedgoals,theSkillsCouncilwilltakethefollowingactionsinthecoming2-3years:

- BasedonoutcomesfromthecurrentReport,in-depthanalysisandidentificationofkeyskillneeds;

- Coordinatejointactivitiesandworkshops,bringingtogetheractorsfromdifferentEuropeancountriestoimprovetheexchangeofgoodpracticesandinnovativetoolstoanticipateskillsneedsandsolveexistingmismatches,andtofostercommunicationandcollaborationamongorganisationsindifferentcountries;

- Analysisofexistingeducationprogrammesforkeyoccupationswithinthesector,comparingcontents and identifying possible improvement, cooperation and harmonisation ofcertificates;and

- Support projects and activities in the field implemented at the national, regional or locallevels.

Basedon theoutcomesof theseactivities, theSkillsCouncilwillhave the information required tofurtherdevelop findings inorder todelivernewand innovativeeducationprogrammes (VET,higheducationandLLL).

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8 PolicyrecommendationsThemaritime industry is the economicbackbone formany coastal regions throughout Europe. ItsworkforceishighlyspecialisedandhighlyskilledanditiscrucialthatEuropemaintainsacriticalmassofactivityinordertoremaincompetitiveontheglobalmarket.Inanefforttocontributetoachievingthiscrucialgoal,thisreportputsforwardasetofrecommendationsforpolicymakersworkingonthefutureofEurope’smaritimeindustry.

1.AEuropeanstrategyTheEuropeanUnionrequiresaholisticindustrialstrategyforthemaritimesectorbasedonasharedvisionofhowtobestrongertogetherbydevelopinghighvalueproductsandsystems.Inparticular,theshipbuildingindustryhasevolvedintoafieldinwhichonlyafewcountriescompeteonaglobalscale.Nationalstrategies,whicharenotinplaceinallEUMemberStates,cannotsufficientlyaddressthechallengesofsuchascale.Therefore,furtherEuropeanactionisnecessary.

• Inorder tosupportand fosterEuropeanexpertise, theCommissionneeds toplace furtheremphasisonadvancinganambitious,butneverthelessrealistic,industrialpolicystrategyforthesector,aswassuggestedintheLeaderSHIP2020document,devisedbytheCommission,theEUMemberStates,theSocialPartnersandfurtherstakeholders.

• Supporting the installation of a Skills Council for the Maritime Sector that promotes thetraininganddevelopmentofthenecessaryskillsneededtocompeteinthissectorwouldbeawelcomestep.

• Encourage the establishment of cross-border maritime clusters that bring togethercompetencesfromthroughoutthevaluechainandeducation.

• FacilitatethemobilityoftheEuropeanworkforcethroughharmonisationofcertificateswhileensuring that social standards, as agreed by the European Sector Social Dialogue, arerespectedthroughouttheEU.

2.PromotionofenvironmentallysustainablelegislationLegislativeandfinancialincentivesfromtheCouncilofMinistersandtheCommissionmustbeputinplacetoencourageshipownerstoordernew,environmentallyfriendlyandenergy-efficientshipsandtodismantleorretrofitoutdatedshipsofmorethan30yearsofage.Thismustincludemeasurestoensure these ships are built or retrofitted in Europe. Besides serving the purpose of stimulatingdemand,considerableheadwaywouldbemadeinaddressingenvironmentalandsafetyconcernsinthisway.Themaritimeindustrywouldalsobeprovidedwithastableperspectivetofurtherinvestin‘greening’ the sector. Thus, it is absolutely crucial that investments made by European yards toimprove the environmental performance of their ships and to expand their know-how are finallyaccompanied by a legislative framework rewarding these green innovations. Consequently, a newstrategyshouldincludefollowingmeasures:

• Agree as quickly as possible on the Vessels for the Future contractual public-privatepartnership (CPPP), supported by the WATERBORNE-TP through its research association(Vessels for the Future),with the aim of focusing research toward zero-emission, energy-efficient,andzero-technical-accidentvesselsandemerging-marketopportunities.

• SupporttheroleoftheindustrythroughdedicatedR&Dprogramsinthedevelopmentof‘BlueGrowth’opportunitiesandmaximisingthesector’sroleinharnessingeconomicpotentialfromtheoceansandseas,asdescribedintheWATERBORNE-TPBlueRoadmap.

• Encourage pioneering companies to invest in new technologies with an effective policybenefitingfirstmovers,asagilityontheimplementationofnewregulationsisamust.

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• Linkshiptaxationtotheirrespectiveenvironmentaltrackrecord.

• Ship-ownersandtheirclientsmustbeheldresponsiblefortheenvironmentalperformanceoftheirships.

• Environmental aid must be granted to shipbuilders that produce and develop emission-reducingtechnologiesinEurope.

• SECA/ECAregulationsshouldbeexpandedtoallEUcoasts.

• PromoteenvironmentallysustainabletechnologiesforshipbuildingenterprisesinEurope.

3.PlanningsecurityThe economic and financial crisis, and the resulting worldwide credit crunch, have significantlyimpairedthechronicproblemofshipfinancinginEurope.Thisdevelopmentisparticularlyworrisome,sincethesectorisexposedtoglobalcompetitionthatissupportedbyitsnationalbanksectorandcanoffer technological as well as financing solutions. Withdrawing further from the sector of shipfinancingwoulddiminishtheEU’scapacitiesasarelevantactorandpresentacriticallosstoknow-how.Inordertoremainleadersininnovationanddevelopment,itisessentialthat:

• Therebesufficient incentivestoallowthe industrytomaintainasustainablemarketshareand to exploit the full potential of current capacities. For this reason, it is necessary toreconsidersomerestrictiveinterpretationsregardingcompetitionlawinaccordancewithEIBGuidelines;

• Revisionoffinancinginstrumentsforthesector,especiallyEIB,inordertoimproveaccesstofinanceindependentoftheregional/nationaleconomicsituation,bestudied;

• Ensuring that any financing being provided by the European Commission to undertake‘retrofitting’orsimilarprojectstostimulatetheuptakeoftechnologybyship-ownersbegiventotheEuropeanmaritimetechnologytosupporthome-growntechnologydevelopmentandnotbeprovidedtooverseascompetitors;and

• Theguarantee thatEU financial supportwillbenefit theproductionandserviceabilities inEurope.

4.FaircompetitionandAttractionofSkilledTalentInthelightofthelackofinternationalregulationsforshipbuilding,theburdenliesallthemoreontheEuropeanCommissionanditsMemberStategovernmentstoensurethat,inbilateralormultilateralnegotiations,Europeanshipbuildersareshieldedfromunfaircompetition.Suchaneffortiscrucialsothatasignalissenttotheyoungergeneration,thatacareerinshipbuildingwillnotbethreatenedbyunfairtradepractices,orfallvictimtoever-increasingpricepressurethatnegativelyinfluencessalariesorworkingconditionsorfundsavailabletobeinvestedinskillsdevelopment.

• TheEUCommissionshoulddeployalltheresourcesatitsdisposalinabidtoimposefairglobalcompetitive conditions. This position should be reflected in any free trade agreementbetweentheEUandtheAsiancountriesinquestion.

• It is nomystery that the competitiveadvantagesof Far-East shipbuilding stems toa greatextendfromstateaid,disregardforprotectionoftheenvironmentandviolationofhumanandworkers'rightsandsocialdumping,amongothers.Stepsmustbetakentocorrectthisnegative image in Europe, where working conditions are good, salaries attractive andinvestmentsinR&Dandaskilledworkforcearethebasisofvaluecreation.

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• Unfairtradepracticesneedtobeeradicatedandgoodglobalstandardsshouldbepromoted,sothatyoungpeopleareencouragetoseekacareerinthemaritimeindustry.

5.EducationandLifelonglearningFinally, education and skills are the key drivers for growth and jobs because they provide thefoundationsforinnovationandvalueadded,inparticularinahigh-technology,high-precisionsectorlikethemaritimeindustry.ThesustainabilityofEurope’spositiondependsondesigningandbuildinghigh-end products that are leaders in their field. Therefore, this report recommends theimplementationoffollowingpractices.

• Timely anticipation of employment and skills needs coupled with re-skilling/re-trainingprogramsthataddressemergingskillgapsandshortageswhereidentifiable.Inthisrespect,theestablishmentofaSectoralSkillsCouncilandthecreationofsectoraltraininginstitutesshouldbeencouraged.

• Thepromotionof lifelonglearningandtransferofcompetencesbetweenjuniorandseniorstaffshouldbepromoted.

• Thesettingupoftransfersystemsbetweeneducationandindustry:systemsofdualeducationandapprenticeshipswithhighqualitystandardsforyoungpeople.

• Dualeducationsystems(VETandthesimultaneouspursuitofauniversitydegree)shouldbeextended, inparticular inregionswithmaritimeclusters.Cooperationbetweenuniversitiesandon-sitetrainingcentresneedstobedeepenedandextended.

• The curriculumof training centres in Europe should be reviewed andharmonized to suchextent as toestablish a commonEuropean standard that facilitates theawardof EU-widerecognizeddegrees.AnEUSkillsCouncilcouldplayanessentialroleinsuchaprocess.

• Extensionofthecompetencesof theEuropeanGlobalisationFund inordertoupgradetheskillsofworkersinsectors/supplychainsthataresufferingfromoff-shoringandinternationalcompetition.

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EditorialCredits

Organisationsthatcontributedforthecreationofthisreport:

ShipsandMarineEquipmentAssociation

IndustriAllEuropeanTradeUnion

DCNSGroup

AgenturfürStruktur-undPersonalentwicklungGmbH(AgS)

WEGEMTFoundation,EUMarineUniversityAssociation

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EditorialCredits

Organisationsthatcontributedforthecreationofthisreport:

ShipsandMarineEquipmentAssociationMs.SaraiBlanc

IndustriAllEuropeanTradeUnionMr.MischaTerzyk

DCNSGroupMs.SophieNormand

AgenturfürStruktur-undPersonalentwicklungGmbH(AgS)Mr.ThorstenLudwig

WEGEMTFoundation,EUMarineUniversityAssociationMr.GeorgesSmyrnakis

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ThispublicationissupportedbytheEuropeanUnionProgrammeforEmploymentandSocialSolidarity– PREGRESS (2007-2013). This programme is implemented by the European Commission. It wasestablishedtofinanciallysupporttheimplementationoftheobjectivesoftheEuropeanUnionintheemployment,socialaffairsandequalopportunitiesarea,andtherebycontributetotheachievementoftheEurope2020Strategygoalsinthesefields.Theseven-yearProgrammetargetsallstakeholderswhocanhelpshapethedevelopmentofappropriateandeffectiveemploymentandsociallegislationandpolicies,acrosstheEU-27,EFTA-EEAandEUcandidateandpre-candidatecountries.

Formoreinformationsee:www.ec.europa.eu/progress

The information contained in this publication does not necessarily reflect the position of the EuropeanCommission.

Picturescoverpage:CourtesyofKongsberg,RollsRoyce

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tel.: +32 2 230 27 91fax: +32 2 230 43 [email protected]

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