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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.

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Presentation on theme: "Regional Strategies in Skills Development -Addressing the issue of the skills shortage facing industry in NE England Process Industries ECRN Congress."— Presentation transcript:


2 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 29 th November2007 George Ritchie SVP SembCorp Utilities & Chair NEPIC Skills & Education Engagement

3 City Regions Physical Centres Private Finance Science & Industry Council Regional 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 EnergyHealthcareProcess Universities Centre for Enabling Technology (Cenamps) DesigneBusiness Management Skills NStar One NorthEast Three Pillars Strategy to Develop the NE Economy

4 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.

5 Pharmaceutical & Speciality Petrochemical Other Industry Regional GDP Regional 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 NEPIC The regions biggest industry sector

6 Geographic Intimacy 200 Pharmaceutical, Biotech, Speciality & Base Chemical Companies Plus 200 Supply chain Companies

7 NEPICs 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 UKs pharmaceutical GDP UKs 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

8 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 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 > 350 companies have Industrial involvement in NEPIC 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

9 The Teams 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

10 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

11 NEPICs big idea Key to the development and delivery NEPICs 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 & Networking 2.International Trade 3.Innovation 4.GDP gap closure & Investment 5.Manufacturing & Productivity 6.Skills & Education

12 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

13 The Leitch Vision and Ambition –The Opportunity UK to commit to becoming a world leader in skills by % 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

14 The Leitch Vision and Ambition –The Opportunity continued We all need to embrace it Hasnt sunk in yet It actually means at least a doubling of the level of attainment (employers to change behaviours) i.e. Every 2 nd 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??

15 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

16 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

17 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 wont 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:ProfitKey Question: Over what timescale? : is it a cost ? Or is it a value?

18 Skills, Education and Engagement Team Organisation Attracting and engaging talent Strategy Chair: George Ritchie Secretariat: Cogent Key Members: NEPIC, Industry, ONE, SEMTA, LSC, Business Link Workforce development, and retention Education & Engagement Chair: Kevin Thrower Secretariat: CIEC Key Members: NEPIC, Industry, Educationalists, SLC, FE/HE 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. 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.

19 Skills, Education & Engagement Strategy Strategy TeamPriorities 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.


21 Key issues Skills, Education & Engagement Action Plan. Business Plan submission to ONE. DVDs 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 – 8 th November. NSAPI.

22 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 Industrys 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

23 NEPIC Skills Survey – further analysis by ONE Skills Survey has been issued. Need 400 apprentices per year. Need 8,000 new technicians by Need 8,000 new graduates by 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.


25 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

26 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

27 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 7 th November 2007 to operate the academy. Process Industries

28 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.

29 Upskilling to the Gold Standard Technical Competence Functional HSEQ

30 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

31 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

32 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 dont 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.

33 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 ITS OUR REGION, ITS OUR FUTURE, ITS IN OUR HANDS

34 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 Dont forget the Primary & Secondary Schools

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