Engineers for the future

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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 of European Chemical Regions
  Network, Ludwigshafen,Germany
• Thursday 29th November2007
• George Ritchie
• SVP SembCorp Utilities
• Chair NEPIC Skills Education Engagement

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One NorthEast Three Pillars Strategy to Develop
the NE Economy
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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.
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NE REGION -The Importance of NEPIC The regions
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
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Geographic Intimacy 200 Pharmaceutical, Biotech,
Speciality Base Chemical Companies Plus 200
Supply chain Companies
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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 RD 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

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gt 350 companies have Industrial involvement in
NEPIC
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 Exwo
ld Technology Faithful Gould Fine Performance
Chemicals First Chambers First Genesis Foster
Wheeler Frutarom GlaxoSmithKline GlobalMSDS Green
chemistry 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
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
KT Associates LDR Squared Link Associates
International Lucite International Lundbeck
Pharmaceuticals LyraChem Manro Management
Consulting Manrochem MCB Associates McQuillan-Byrn
e 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 Partners4Technolo
gy Perry Process Equipment Petroplus Pfizer PICME
PM PS Polo PR Partnership PPD Technical Price
Waterhouse Coopers Proctor Gamble Promanex Prote
nsive 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-Ave
ntis 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
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NEPIC GDP Growth and Investment Team
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
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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
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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
• Marketing, Communication Networking
• International Trade
• Innovation
• GDP gap closure Investment
• Manufacturing Productivity
• Skills Education

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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

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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

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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 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??

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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/competit
  ive the forces of globalisation are not going to
  fade away, they are only getting stronger

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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
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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 Profit Key Question Over what
  timescale?
• is it a cost ?
  Or is it a value?

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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

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.
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Skills, Education Engagement Strategy
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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 8th
  November.
• NSAPI.

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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
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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.

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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

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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

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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.

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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.

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Upskilling to the Gold Standard
HSEQ
Functional
Competence
Technical
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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

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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

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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.

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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

ITS OUR REGION, ITS OUR FUTURE, ITS IN OUR
HANDS
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To sum up something is happening!
Dont 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 SEE 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