1. Role of LEPs in meeting skill needs of the construction sector
Richard Kirkland
European Structural and Investment Funds (ESIF) Co-ordinator for D2N2

2. The D2N2 LEP Area: 4,784 sq. km 12 Population: 2,196,100 5
Working age population: 1,358,100 5
GVA: £45.4bn 9
Exports (goods): £11.7bn 4
Local Authorities: 19 3

3. The Construction Sector in D2N2 LEP
Slightly over-represented in terms of GVA
Slightly under-represented in jobs
Productivity below sectoral benchmark
Generated £3.1 billion in 2017, 6.7% of the total GVA
Over past 15 years GVA has grown but jobs have fallen
Largest business stock (8,500) of all sectors
High GVA growth forecast to 2030 of 45% (1 of 5 sectors with projected growth in GVA of 25%+)

4. The Construction Sector in D2N2 LEP
Important for HS2, house building, infrastructure, employment sites, enterprise zones etc.
Dependent on national policies (housebuilding), government investment (transport), growing business confidence (commercial property demand / enterprise zones)
Emerging strengths in modern methods of construction (MMC) such as off site manufacture, low carbon construction technologies
Nottingham Trent University and Laing O’Rourke’s Explore Manufacturing facility in Bassetlaw

5. The challenge for the Construction Sector in D2N2
The local challenge is to ensure a pipeline of skilled workers for the construction industry, exploit our advantages in our knowledge base, support the industry to adapt to digitisation and exploit the opportunities arising from Modern Methods of Construction and low carbon technologies (heat pumps, district heating on new developments etc)
So – to touch on the Ministerial Review – whilst it has thrown up some challenges, such a the removal of overlaps and the consolidation of accountable body functions, it also helpfully clarifies government’s expected roles for LEPs,
It confirms the role of LEPS to lead local economic strategy development and to prioritise investment from LEP area funding allocations – but also to have a wide role in convening partners into joint action and being an independent voice for the area – particularly ‘up’ to government.

6. D2N2 Procurement Charter
Procurement Charter aims to gain the greatest social value out of investments
Apprenticeship creation one of our six key priorities.
Successful capital projects must demonstrate they have worked to target the six key action points of the procurement charter before funding is released

7. Derby College Technology Hub

8. Derby College Technology Hub
£1.3m of Local Growth Funding committed to a £1.75m overall project cost.
Creation of new learner floorspace to improve teaching and raise the standard of provision in construction and engineering
New equipment available to allow for ICT to be more integrated into the teaching of construction programmes and will increase the provision of BIM.
Support construction companies address skills shortages, co designed and delivered with local employers
125 learners per year will complete the programme raising the number of learners qualified at Level 3+ and Apprenticeships

9. Vision University Centre
£2.61m of LGF used to develop new higher level skills centre at Vision West Nottinghamshire in Mansfield enhancing the offer in the area
New Centre will complement existing college construction offer by offering higher level qualifications e.g. management

10. Nottingham City Hub
£30m of LGF funding utilised to support project scheduled to open in 2020
The City Hub is the largest LGF award and will provide venue for enhanced skills development
Nottingham College are offering on site construction provision to support the CITB’s Construction Skills Fund initiative.

11. Emerging skills issues
Workforce not as well qualified as the UK overall. 32% qualified to NVQ4 level or above in D2N2 compared to 37.9% in the UK.
Estimated working age population will rise by 1% between 2014 and 2039 !!!!
Exposed to Brexit - Treasury estimates 8.5% of the jobs in East Midlands related to EU exports: 5% of the EM working age population are EU nationals (compared to 4% in other regions), EU nationals are predominantly employed in private sector and 66% have middle to high skills
Technology-driven changes in nature of work to require re-skilling by workforce as well as maximising potential of young people and unemployed entering the labour market.
Drive up productivity in all sectors, so that jobs at all levels support progression and are better paid.
Closing gap between the skills of people and the needs of employers is essential if we are to achieve our vision of a productive, prosperous and inclusive economy

12. Skills for the Future Future Workforce
Equip young people with knowledge and skills required to make informed career choices to access employment and provide businesses with a strong pool of talent
Inclusive Workforce
Support individuals furthest away from the labour market to reengage and move towards and into productive work. To support employees to move up the skills escalator into more productive, better paid jobs of the future
Skilled and Productive Workforce
Enable businesses to find talent they need, equip their workforce with the skills of the future
Planning for future Skills Needs
Build intelligent, evidence-based local skills ecosystem capable of matching the skills of the population with the needs of business e.g. LEP Board and the Skills Advisory Panel

13. Future Plans Technical Construction Skills
£2m of ESF programme
Unemployed / inactive to gain technical skills to support the construction sector
Focus on developing skills to meet future needs in relation to new technology, modular housing construction, low carbon technology production methods.

14. Future Plans Skills Access Hub
£2.4m ESF programme
SME’s lack capacity, knowledge and incentives, to engage with education and training institutions
Practical and coherent routes to engage with provision to support skills needs as part of their overall growth strategies.
One stop skills shop linked to Growth hub

15. Future Plans Careers and Employability Hub
£1.5m of ESF programme
Employers have recruitment challenges at all skills levels.
Issues with ‘work-readiness’, employability skills, lack of awareness of job and careers opportunities of young people.
Focus to enhance links between employers and schools to provide meaningful/inspirational experiences of the world of work and inform career decisions

16. Horizon scanning Opportunities – HS2 Phase 2 - 2033
East Midlands HS2 Hub at Toton
HS2 station at Chesterfield
HS2 Infrastructure and maintenance depot at Staveley
Estimated to create 74,000 to 90,000 jobs
HS2 supply chain opportunities and support
Co-ordinated business support to help SMEs benefit from HS2 related contract and supply chain opportunities,
Develop comprehensive HS2 awareness campaign aimed at raising the ambition of businesses to make the most of HS2

17. HS2 Skills and Employability Strategic Framework
HS2 Skills and Employability Strategic Framework in D2N2, with focus on 5 key areas of activity:
inspiring young people – particularly primary (2033)
building further education capacity
harnessing the power of our universities
Support for individuals
ensuring our businesses are ‘HS2 ready’.

18. HS2 Infrastructure Opportunities
‘Toton Innovation Campus’; which will bring leading businesses, colleges, universities and research institutions together.
Campus capable of delivering up to 11,000 high-quality jobs, 5,000 homes and a range of leisure opportunities.
The Northern Derbyshire Growth Zone centred around the HS2 station in Chesterfield and the Staveley maintenance depot will have a transformational impact on the Derbyshire economy