1. Sector Skills Plan (SSP) 2013-2014 ANNUAL UPDATE

2. SSP 2013-2014 Annual Update 2013-2014 Annual Update have been evaluated by the DHET. DHET recommended the submission for approval SSP en route to the Minister for sign-off. Critical areas of focus for 2014-2015 Annual Update.

3. Key Challenges of the SSP To facilitate the delivery of sector-specific skills interventions: – to meet the goals of the NSDS III – to address employer skills demand that deliver return on investment. To grow labour market intelligence; and To ensure industry skills needs and strategies address the requirements of all employers within the FP&M sector. – levy-paying and non-levy paying, formal and informal

4. Sector Skills Analysis Purpose Determine sector specific objectives and goals to meet sector needs, Develop economic or industrial sector growth strategies, Identify activities that will support these strategies, Develop scenarios pertaining to skills demands per sub- sector, Address scarce and critical skills in the sector, Propose a high level strategic approach to meet the sectors’ skills development needs in the short, medium and long term

5. Sector Skills Analysis Informed by: the industry profile; growth demand and replacement demand forecasts; analysis of WSP / ATR submissions; and stakeholder consultation sessions conducted by the – SETA during the development of the SSP.

6. Critical Factors across FP&M Sector Main replacement demand factor: aging workforce. Critical skills driver: new equipment. Critical skills: Management and Leadership; Multi-skilled workers. Scarce skills: Technical artisan skills ( especially; mechanical engineers; technicians; mechanics; quality controllers); Challenges with existing provision: none or limited external training capacity due to specialisation. Bridging programmes: from AET to higher levels, to enable progression toward supervisory level; RPL

7. SSP Strategies “Re-tooling” of unemployed graduates. Placement of unemployed learners and graduates. Addressing scarce and critical skills incl - Provision of middle level skills; Training of Artisans and Artisan Aides Transformation of public service facilities into training space. Recognition of Prior Learning (RPL). Expansion of SETA presence into rural areas. Assistance to the informal sector. Partnerships with Universities and FET colleges.

8. Priority Interventions arising from the SSP Support strategies to prevent job loss, to maintain employment and assist towards growth – – Training Lay-off Scheme – Local Procurement Strategy – Management and Leadership Development (to prevent industry “brain drain”).

9. Priority Interventions arising from the SSP New forms of partnerships to achieve “collaborative clustering” that underpins turnaround strategies and ensure economies of scale. This includes partnerships: – between public and private providers; – along the skills pipeline (schools, FET colleges and HEIs); – between providers and workplaces; – between SETAs; and – between local and international providers (where SA lacks the relevant expertise).

10. Priority Interventions arising from the SSP Improving supply-side efficiency and effectiveness (RoI) – Current throughput rates cannot be justified; Innovation in skills development – the turn-around in industry cannot be achieved through “training as usual”; Innovative and informal strategies – succession planning, internships, coaching/mentoring and work integrated learning; – targeted HIV/AIDS education, treatment and prevention strategies; and – coordination of skills development efforts with other policy instruments

11. Mitigation of replacement demand, and Promotion of categories of critical skills development – – lecturer capacity building to align curricular content to industries need; – lecturer exposure to industry. Priority Interventions arising from the SSP

12. Growth Prospects The growth prospects for the FP&M sector remain unchanged for the future unless: – the sector fundamentally restructures itself, – improves programme offering and funding. – Invest in research and development across all 13 sub sectors Over the next 5 years - growth vs. retention of market share. If the DTI strategy is successful, growth may be an option post 2015. Value Chain investigation may lead to new opportunities.

13. Mechanisms to Strengthen SSP Strategic Plan and Sector Skills Plan Framework. SETA Constitution (SETA SSP Forum, provincially). Partnerships with HEIs and FETs for research and capacity building. to grow supply side Geographical SETA presence. Repository of SETA research. SETA research surveys. Credible mechanism for planning.

14. Mechanisms to Strengthen SSP SETA support engagements with DHET and other SETAs (SETA Forum, Provincial Clusters, PSDF) Development of Continuous Improvement Plans. Career Advise Framework (feeder from GETs, FETs, HETs). Organising Framework for Occupations (OFO).

15. Thank you! Comments/Questions?