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“Regional Strategies in Skills Development -Addressing the issue of the skills shortage facing industry in NE
England Process Industries”
ECRN Congress of European Chemical Regions Network, Ludwigshafen,Germany
Thursday 29th November2007
George Ritchie SVP SembCorp Utilities
& Chair NEPIC Skills & Education Engagement
City Regions
Physical Centres
Pri
vate
F
inan
ce
Sci
ence
&
Ind
us
try
C
ou
nci
lRegional
Partnership
NaREC
Related Activities e.g.
PV North
Cluster Development
Leadership Council
Related Activities e.g.Bii
New Cluster
Cels
Leadership Council
CPI
Related Activities
e.g. Tees Valley
Hydrogen Project
NEPIC
EnergyHealthcare Process
Universities
Centre for Enabling
Technology (Cenamps)
Design eBusinessManagement
Skills NStar
One NorthEast Three Pillars Strategy to Develop the NE Economy
Clusters…?
Clusters are groups of inter-related industries that drive wealth creation in a region. Often they represent the entire value chain of a broadly defined industry from suppliers to end products, and are interconnected by the flow of goods and services throughout this chain.
17%
3%
80%
Pharmaceutical&Speciality Petrochemical Other Industry
15%
10%
75%
Pharmaceutical&Speciality Petrochemical Other Industry
Pharmaceutical & Speciality Petrochemical Other Industry
Regional GDPRegional Direct Employment in Manufacturing
The Process Industry is absolutely critical to the North East economy and to its successful development and prosperity
There are over 200 individual Chemical, Pharmaceutical, Speciality and Biotechnology companies operating in the region producing a total of £8.8 billion GDP.
NE REGION -The Importance of NEPICThe region’s biggest industry sector
Geographic Intimacy
200
Pharmaceutical,
Biotech,
Speciality &
Base Chemical
Companies
Plus
200
Supply chain
Companies
NEPIC’s Economic Impact has many features of a true economic cluster
• Teesside Petrochemical cluster is the largest integrated chemicals complex in the UK in terms of manufacturing capacity
• North East Pharmaceuticals includes the top three global pharmaceutical manufacturers producing in excess of 33% of the UK’s pharmaceutical GDP
• UK’s second largest port 70% occupied by Process Industry Goods
• Largest non-military R&D Centre in Europe & see also next slide
• Region has many top speciality and consumer products manufacturers
• The Supply Chain of these combined industry sectors has more than 350 companies based in the North East
• 350 of these companies are already formally engaged through membership
• Together the companies in the combined cluster employ 34,000 people directly with a further 280,000 are indirectly impacted
ABB EutechACS DobfarActinomedAES LaboratoriesAesica PharmaceuticalsAir Prod (Gases)Aker Kvaerner EngineeringAlexander Hughes Interim ManagementAMECAmicus the union MSF SectionAngel BiotechnologyApple Action PlanningApplied Neurodiagnostics Avecia BiologicsB T Bell AssociatesB2B Manufacturing CentreBAILEYGOMMBASFBaker PetroliteBHR GroupBiosystems Informatics InstituteBKE MowlemBOCBrassaire Containments Business 550Business Education Matters C.N.A. International C6SolutionsCarbis FiltrationCarbon TrustCareer & CoachingCEL InternationalCELS CEM Event ManagementCenelic Standards Inspections ChemsonCIECClean DesignCleveland BiotechCOGENT SSCCordell GroupCPACTCPICrane Process Flow TechnologyCRBCreative Gene TechnologyCrystal Faraday
Curvaceous SoftwareDatatrialDavy Process TechnologyDay ZimmermannDDADegussa - Fine OrganicsDickinson DeesDigital Speciality ChemicalsDow - HaltermannDRD ConsultantsDSJ ConsultantsDurham OrganicsEdwards’ AnalyticalElementis ChromiumeMeditExcelsynExwold TechnologyFaithful & GouldFine & Performance ChemicalsFirst ChambersFirst GenesisFoster WheelerFrutarom GlaxoSmithKlineGlobalMSDSGreenchemistry CICGriffonHammondsHart BiologicalsHigh Force ResearchHoneyman GroupHuntsman PetrochemicalsHyClone UKICI Measurement Science GroupIDSImpact FaradayICSPEIndustrial Technology SystemsInternational Plastic SystemsIntertek Testing ServicesINVISTAJames Robinson Johnson Matthey CatalystsJohnson Matthey ZirconK Home InternationalKeane AnalyticalKelly Scientific Resources
KT AssociatesLDR SquaredLink Associates InternationalLucite International Lundbeck PharmaceuticalsLyraChemManro Management ConsultingManrochemMCB AssociatesMcQuillan-Byrne ManagementMerck Sharp & DohmeMicrochem SystemsMills Advertising & PublicityMi-Services GroupMottram CommissioningMowlem Engineering SolutionsMP Storage & BlendingNAP PartnershipNCD Separations SolutionsNewcastle Tool & GaugeNewChem TechnologiesNorman Hood EngineeringNigel Wright ConsultancyNitech SolutionsNonlinear DynamicsNorth WaterNovocastraNRL Personnel ServicesOctel Corporation Onyx ScientificOxford ChemicalsPACTPentagon ChemicalPartners4TechnologyPerry Process EquipmentPetroplusPfizerPICMEPM & PSPolo PR PartnershipPPD TechnicalPrice Waterhouse CoopersProctor & GamblePromanexProtensiveQuality QuestQuantachrome UK
Talent EngineTayburnTVEPTefen EuropeTerraTessenderloThe Specials LaboratoryThermal DetectionThomas Broadbent & SonsThomas SwanTHPATomlinson Hall TRMSUniqemaUNIVARValueKMVelva LiquidsWard HadawayWolviston ManagementWSP EnvironmentalWynyard ConsultantsXcellsyz
> 350 companies have Industrial involvement in NEPIC
Ray Thorp (Fire Safety & Emergency Planning)RCIDRenew Tees ValleyRhodia Pharma SolutionsRoevin Management ServicesRohm & HaasRTC North LtdRutherford ChemicalsSanofi-AventisDurham School of Biological & Biomedical SciencesScientific & Medical ProductsSembCorp Simon-CarvesSembCorp Utilities TeessideSolutions RecruitmentSORIS (CIRCE)SRGSimon Storage SSL InternationalState of LouisianaSynergy Interactive
The Team’s Challenge
The North East is short of £9 billion of GDP compared to the average UK Region (per capita calculation)
The Process Industry is 25% of the NE Economy - £8 billion of £32 billion
Therefore,
Can the Industry contribute £2billion of additional GDP to help close this GDP Gap within the next 10 years? (The Opportunity – The Leitch Dividend)About £1800 productivity gain per employee in NE
NEPIC GDP Growth and Investment Team
NEPIC is leading and aiming higher than ever before
Marketing, Communication & NetworkingGrowing the activity to achieve regional spread, UK and Global recognition and the involvement of all sectors
Skills and Education Expanding targeted activities in the adult skills and science education to deliver a better trained workforce across all sectors.
GDP Growth and InvestmentFocusing regional resources to increase investment opportunities and indigenous growth
Trade GrowthEstablishing a greater understanding of region, industry and company capability enabling companies to find and fulfill new business opportunities
Innovation, Research and DevelopmentCreating Collaborative mechanisms to build projects between industrial and academic partners
Manufacturing & ProductivityLeveraging regional providers to drive performance and take up improvement programs
NEPIC’s big idea
Key to the development and delivery NEPIC’s programmes will be the sub-teams populated by more than 120 industry leaders from its sector in the North East who will lead and develop strategic priorities for the NEPIC executive and Industry support bodies in 7 programme areas:
1. Marketing, Communication & Networking2. International Trade3. Innovation4. GDP gap closure & Investment5. Manufacturing & Productivity
6. Skills & Education
Some simple facts
• Today over 70% of our 2020 workforce have already completed their compulsory education
• In UK one third of adults do not hold the equivalent of a basic school leaving qualification
• One half of adults have difficulty with numbers
• One seventh are not functionally literate
The Leitch Vision and Ambition –The Opportunity
UK to commit to becoming a world leader in skills by 2020
• 95% adults achieve functional literacy & numeracy• Exceeding 90% of adult population qualified to at
least Level 2 (currently 70%)• Shifting the balance of intermediate skills from Level
2 to Level 3(doubling the number of apprentices to
500K, most of growth from adults)• Exceeding 40% of adult population qualified to Level
4 and above
The Leitch Vision and Ambition –The Opportunity continued
• We all need to embrace it• Hasn’t sunk in yet• It actually means at least a doubling of the level of attainment (employers to
change behaviours)• i.e. Every 2nd person in the NE needs to attain another level qualification
than has now – Just to stand still
• WHY:• Skilled workers are better able to adapt to new technologies and market
opportunities• Higher levels of skills drive innovation, facilitate investment and improve
leadership and management• Without world class skills, UK businesses will find it increasingly difficult to
compete and innovate.• The Global playing field is changing fast – the biggest restructuring of the
world economy since the rise of the USA e.g. over the next 10 years China & India will double in economic size – the UK will only be 25% bigger??
The problem as we see it• Fewer school children taking science plus 16 to 18 year old population going into decline
from 2007
• Insufficient technicians coming through via apprenticeships
• Not enough engineering and science graduates – viewed as difficult
• Difficulty recruiting engineers & scientists and demand is very high– Poor reputation of the industry – Lack of engagement over past 5 years from industry
• New investment and technology is driving the need for recruitment and enhancing skills – both for construction and operation
• New technologies require a new higher level of employee skills
• Demographics –aging workforce 15% are over 55
• Industry regionally has now more Global ownership and regionally need to be more productive/competitive –the forces of globalisation are not going to fade away, they are only getting stronger
Process Industries: The Skills Gap!
Growth is currently constrained by the lack of suitably qualified employees• Ageing workforce and shortage of new entrants• Inadequate training and development infrastructure• Limited transferable qualifications for individuals• Complicated funding mechanisms• Failure to keep pace with innovation
We in industry must take the initiative to solve our problem
So our ChallengeTO DO SOMETHING ABOUT IT!
• I cannot get involved, I have not got the time.
• UK Training and Education is not my concern, we are Singaporean owned.
• I am only concerned when I cannot recruit.
• It is a waste of time getting involved, it makes no difference.
• We are expanding and in a high tech area, we have no problems.
• We can hide our heads in the sand and pretend we won’t be affected – but the consequences will be disastrous – a slow but inevitable economic decline
Does it have an Effect?
Two multinational companies have stopped validation of training (not the training) as they lost too many people to the North Sea.
Question: How much should an employer be involved ?
Prime directive: Profit Key Question: Over what timescale?
: is it a cost ? Or is it a value?
Skills, Education and Engagement Team Organisation
Attracting and engaging talent
Strategy Chair: George RitchieSecretariat: CogentKey Members: NEPIC, Industry, ONE,SEMTA, LSC, Business Link
Workforce development, and retention
Education & EngagementChair: Kevin ThrowerSecretariat: CIECKey Members: NEPIC, Industry,Educationalists, SLC, FE/HE
SkillsChair: George RitchieSecretariat : SEMTAKey Members: NEPIC, Industry, Training providers, Cogent, LSC, HE/FE, NEHSN
Core purpose
Define the number, type and level of resources needed to support the growth plans within the Process industry in the North East of England.
Ensure that skills gaps and shortages are effectively addressed through improved utilisation, coordination and development of regional training provision.
Core purposeDevelop and implement the strategy to present the Process Industry in the North East of England as being an attractive place to work.
Skills, Education & Engagement Strategy Strategy Team Priorities to Support the Delivery of the GDP Strategy
Skills, Education and Engagement
Leader:
George Ritchie
Purpose:
To upskill the existing workforce and to attract and retain new entrants.
1. Skills
Define the number, type and level of resources to support the growth plans within the Process industry in the North East of England.
• Ensure that skill gaps and shortages within the industry are prioritised and addressed through appropriate project identification and implementation.
• Improve productivity in the Process Industry through better coordination, utilisation and development of regional training provision.
2. Education & Engagement Develop the strategy to present the Process Industry in the North East of
England as being an attractive place to work.– Attract and retain young people in general to the science-based industries &
reverse the trend of reduced number of entrants to science & engineering courses in FE / HE, and increasing closure of science & engineering faculties.
– Encourage more entrants in general to the industry to combat the ‘demographic time-bomb’ of an ageing workforce, particularly in the base sector, and to improve the perception of the industry with the general public, a block to recruitment.
– Develop working partnerships with a wide range of science education programmes at sub-regional, regional and national levels, encouraging all member organisations to commit time and resources to establish such links with local schools, colleges & universities.
Key issues
• Skills, Education & Engagement Action Plan.• Business Plan submission to ONE.• DVD’s produced for graduate recruitment/ Careers in Science – Choose your own adventure.•Closer working with Schools and universities• IMechE Great Skills Debate.• Careers Fairs.• Skills Survey – analysis by ONE.•National Skills Conference – York 16th to 17th July.• NE Skills & Education Conference – 8th November.• NSAPI.
NEPIC – Business Plan for Science Education
Industry Attractiveness Programme 2008 – 2011 to extend current programmes to reach over 1500 schools, 55K pupils and work with 6K teachers
A Business Plan that is central to the Process Industry’s need to attract 16,000 people into careers in the sector in the North East of England over the next 10 years.
The Business Plan has been endorsed by the Leadership Team and Member Companies and submitted to ONE.
Need to support our Science Education Units in the region along with SETPOINT (part of STEMNET) promoting Science, Technology, Engineering and Mathematics subjects to 5 – 19 year olds
NEPIC Skills Survey – further analysis by ONE
• Skills Survey has been issued.• Need 400 apprentices per year.• Need 8,000 new technicians by 2015.• Need 8,000 new graduates by 2015.• Data have been supplied to NSAPI.• Data have been further analysed by ONE – meeting held to review this and action plan being drawn up for 2008 implementation.• Agreed with ONE that this will be an annual survey from NEPIC.
Why the NorthEast Universities?
• Students already here, so positively disposed to region
• Easier to build a relationship• Placements and projects easier logistically• Students’ partners may also to be local • Work with Universities re curriculum what
the industry is looking for
What we should focus on to attract new graduates
• Building a positive image for the industry
• Stress careers at forefront of technology
• Opportunity to travel, within multinationals, anchored locally
• CPD
• Business Plan submitted to Learning & Skills Council National Office on 31/5/07.
• £1m has been pledged by employers and there is still a need for more demonstrable financial support from the employer base as over 50% of this has been raised by NEPIC (£575k), to-date.
• Ministerial authority was made on 7th November 2007 to operate the academy.
Process Industries
The Vision• The vision of the Academy is that it will lead the UK Process
Industries in ‘Creating a World-Class Workforce’• NSAPI will lead the drive to ensure that employers within the
Process Industries have sufficient skilled people to achieve their business objectives, thereby enabling them to continue to contribute significantly to regional and national economic growth. It will do this by:– Deploying Standards– Developing Training Provision– Directing Funding– Supporting Employers
• The aim of the Academy is to reach a state where skills drive the UK Process Industries rather than constrain them.
Upskilling to the Gold Standard
Technical
Competence
Functional
HSEQ
Challenges for industry
• Image - This is outdated and inaccurate and not understood by many people outside the industry. It is up to the industry to go out and sell itself– Process industry needs to be perceived as an exciting place to
work– Process industry needs to be seen as solving climate change and
other environmental issues– Process industry needs to market the benefits of its products and
show that it takes product safety concerns seriously– Process industry needs to be attractive to women and all sections
of society• Resources - Industry needs to commit management and
employee time and expenditure to meeting the skills issue– Training and development as a priority– Nurturing new employees– Committing effort to publicise the issue generally and support
sector as a whole as well as examining own company needs
Challenges for industry• Development and upskilling of existing workforce - this is a key
resource - it is not just about new recruits – Setting high standards and expectations– Committing necessary resource to deliver development and
training• Industry needs to have increased involvement with education
providers at all levels especially in recognised programmes which are mutually beneficial– Primary schools– Secondary schools– Further education
• Industry needs to take a longer term view– Skills shortage issue will not go away– Short term effort for longer term gain– Support NSAPI
Challenges for education• Have an up to date view of roles and opportunities available in
process industry• Understand breadth of opportunities - not just science and
engineering based but also in finance, supply chain, procurement, sales and marketing ,IT etc
• Sponsor science and technical subjects - show how they can be used to provide benefits to society. Many examples right here on our doorstep
• Follow integrated and recognised programmes when interacting with industry e.g. children challenging industry and don’t have too many vehicles - keep it simple
• Show a simple roadmap to industry of how everything fits together. Understand that everyone in industry is extremely busy and working with education needs to be made as efficient as possible.
• Process industry in North East is a success story• We all need to ensure this continues and the industry
becomes even more successful• This will not happen without a highly skilled and
educated workforce which is ready to face the challenges of global competition
• Industry and education must commit significant time and resources to ensure this occurs
The Crusade
IT’S OUR REGION,
IT’S OUR FUTURE,
IT’S IN OUR HANDS
To sum up – something is happening!
• Short term– Accept need for some greater employer engagement in workforce development (more
apprentices & graduates) and MANAGE IT– Provide clear leadership to supply the future, encouraging as many of our youngsters
to do down this particular career path• Education• Vocational• AND emotional
• Long term– Deliver NEPIC S&EE Action Plan– Work with others to achieve The Leitch Implementation Plan– NSAPI
• We have no choice, it is merely a question of how well we work together and collaborate to make it happen.
• I believe in the NE we have made a start building on a strong foundation and viewed as best practice too. – We have had success and we expect it to be repeated and praised.
National Skills Academy
Process Industries Talk up our achievements
Talk up our future
Talk up our importance
Talk up our people
Don’t forget the Primary & Secondary Schools