Transcript Engineers for the future

“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
One NorthEast Three Pillars Strategy to Develop the NE Economy
Healthcare
Energy
Process
Leadership
Council
Regional
Partnership
Leadership
Council
Cels
NaREC
CPI
Related Activities
e.g.
Related Activities
e.g.
e.g.
Bii
PV North
Tees Valley
Hydrogen Project
New Cluster
Cluster
Development
NEPIC
Related Activities
Centre for
Enabling
Technology
(Cenamps)
Design
eBusiness
Management
Skills
Universities
City Regions
NStar
Private
Finance
Science &
Industry
Council
Physical
Centres
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.
NE REGION -The Importance of NEPIC
The region’s biggest industry sector
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.
Regional GDP
Regional Direct Employment in Manufacturing
15%
17%
3%
10%
75%
Pharmaceutical&Speciality
80%
Petrochemical
Other Industry
Pharmaceutical & Speciality
Pharmaceutical&Speciality
Petrochemical
Petrochemical
Other Industry
Other Industry
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
> 350 companies have Industrial involvement in NEPIC
ABB Eutech
ACS Dobfar
Actinomed
AES Laboratories
Aesica Pharmaceuticals
Air Prod (Gases)
Aker Kvaerner Engineering
Alexander Hughes Interim Management
AMEC
Amicus the union MSF Section
Angel Biotechnology
Apple Action Planning
Applied Neurodiagnostics
Avecia Biologics
B T Bell Associates
B2B Manufacturing Centre
BAILEYGOMM
BASF
Baker Petrolite
BHR Group
Biosystems Informatics Institute
BKE Mowlem
BOC
Brassaire Containments
Business 550
Business Education Matters
C.N.A. International
C6Solutions
Carbis Filtration
Carbon Trust
Career & Coaching
CEL International
CELS
CEM Event Management
Cenelic Standards Inspections
Chemson
CIEC
Clean Design
Cleveland Biotech
COGENT SSC
Cordell Group
CPACT
CPI
Crane Process Flow Technology
CRB
Creative Gene Technology
Crystal Faraday
Curvaceous Software
Datatrial
Davy Process Technology
Day Zimmermann
DDA
Degussa - Fine Organics
Dickinson Dees
Digital Speciality Chemicals
Dow - Haltermann
DRD Consultants
DSJ Consultants
Durham Organics
Edwards’ Analytical
Elementis Chromium
eMedit
Excelsyn
Exwold Technology
Faithful & Gould
Fine & Performance Chemicals
First Chambers
First Genesis
Foster Wheeler
Frutarom
GlaxoSmithKline
GlobalMSDS
Greenchemistry CIC
Griffon
Hammonds
Hart Biologicals
High Force Research
Honeyman Group
Huntsman Petrochemicals
HyClone UK
ICI Measurement Science Group
IDS
Impact Faraday
ICSPE
Industrial Technology Systems
International Plastic Systems
Intertek Testing Services
INVISTA
James Robinson
Johnson Matthey Catalysts
Johnson Matthey Zircon
K Home International
Keane Analytical
Kelly Scientific Resources
KT Associates
LDR Squared
Link Associates International
Lucite International
Lundbeck Pharmaceuticals
LyraChem
Manro Management Consulting
Manrochem
MCB Associates
McQuillan-Byrne Management
Merck Sharp & Dohme
Microchem Systems
Mills Advertising & Publicity
Mi-Services Group
Mottram Commissioning
Mowlem Engineering Solutions
MP Storage & Blending
NAP Partnership
NCD Separations Solutions
Newcastle Tool & Gauge
NewChem Technologies
Norman Hood Engineering
Nigel Wright Consultancy
Nitech Solutions
Nonlinear Dynamics
North Water
Novocastra
NRL Personnel Services
Octel Corporation
Onyx Scientific
Oxford Chemicals
PACT
Pentagon Chemical
Partners4Technology
Perry Process Equipment
Petroplus
Pfizer
PICME
PM & PS
Polo PR Partnership
PPD Technical
Price Waterhouse Coopers
Proctor & Gamble
Promanex
Protensive
Quality Quest
Quantachrome UK
Ray Thorp (Fire Safety
& Emergency Planning)
RCID
Renew Tees Valley
Rhodia Pharma Solutions
Roevin Management Services
Rohm & Haas
RTC North Ltd
Rutherford Chemicals
Sanofi-Aventis
Durham School of Biological
& Biomedical Sciences
Scientific & Medical Products
SembCorp Simon-Carves
SembCorp Utilities Teesside
Solutions Recruitment
SORIS (CIRCE)
SRG
Simon Storage
SSL International
State of Louisiana
Synergy Interactive
Talent Engine
Tayburn
TVEP
Tefen Europe
Terra
Tessenderlo
The Specials Laboratory
Thermal Detection
Thomas Broadbent & Sons
Thomas Swan
THPA
Tomlinson Hall
TRMS
Uniqema
UNIVAR
ValueKM
Velva Liquids
Ward Hadaway
Wolviston Management
WSP Environmental
Wynyard Consultants
Xcellsyz
NEPIC GDP Growth and Investment Team
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 is leading and aiming higher than ever before
Marketing, Communication & Networking
Growing 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 Investment
Focusing regional resources to increase investment opportunities and indigenous growth
Trade Growth
Establishing a greater understanding of region, industry and company capability enabling
companies to find and fulfill new business opportunities
Innovation, Research and Development
Creating Collaborative mechanisms to build projects between industrial and academic
partners
Manufacturing & Productivity
Leveraging 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.
2.
3.
4.
5.
Marketing, Communication & Networking
International Trade
Innovation
GDP gap closure & Investment
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 Challenge
TO 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:
is it a cost ?
Over what timescale?
Or is it a value?
Skills, Education and Engagement Team Organisation
Workforce development, and retention
Attracting and engaging talent
Strategy
Chair: George Ritchie
Secretariat: Cogent
Key Members: NEPIC, Industry, ONE,
SEMTA, LSC, Business Link
Skills
Chair: George Ritchie
Secretariat : SEMTA
Key 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.
Education & Engagement
Chair: Kevin Thrower
Secretariat: CIEC
Key Members: NEPIC, Industry,
Educationalists, SLC, FE/HE
Core purpose
Develop 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
1.
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.
Leader:
George Ritchie
Purpose:
To upskill the existing
workforce and to
attract and retain new
entrants.
Skills
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
Process Industries
•
•
•
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.
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
HSEQ
Functional
Competence
Technical
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.
The Crusade
• 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
To sum up – something is
happening!
Short term
Don’t– forget
Accept needthe
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
Primary
&
our youngsters to do down this particular career path
• Education
Secondary
• Vocational
• AND emotional
Schools
• Long term
•
– Deliver NEPIC S&EE Action Plan
– Work with others to achieve The Leitch Implementation Plan
– NSAPI
Talk up our achievements
have no choice, it is merely a question of how well we work
Talk• We
up
our
futureto make it happen.
together
and collaborate
• I believe in the NE we have made a start building on a strong
foundation and viewed as best practice too.
Talk up our importance
– We have had success and we expect it to be repeated and praised.
Talk up our people