2. SVP SembCorp Utilities & Chair NEPIC Skills & Education Engagement
“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

3. Science & Industry Council
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
CPI
Related Activities e.g. Tees Valley Hydrogen Project
NEPIC
Energy
Healthcare
Process
Universities
Centre for Enabling Technology (Cenamps)
Design
eBusiness
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. 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 Direct Employment in Manufacturing
Regional GDP
Pharmaceutical & Speciality Petrochemical Other Industry

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

7. 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

8. > 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

9. 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

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. NEPIC’s big idea Skills & Education
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:
Marketing, Communication & Networking
International Trade
Innovation
GDP gap closure & Investment
Manufacturing & Productivity
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 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

14. 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??

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 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?

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

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 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

23. 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.

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. 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.

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
HSEQ
Functional
Competence
Technical

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 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.

33. The Crusade IT’S OUR REGION, IT’S OUR FUTURE, IT’S IN OUR HANDS
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
IT’S OUR REGION,
IT’S OUR FUTURE,
IT’S IN OUR HANDS

34. To sum up – something is happening!
Don’t forget the Primary & Secondary Schools
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