Www.swslim.org.uk Manufacturing in Gloucestershire Employment & Skills Issues April 2012 Ben Neild Assistant Director, SLIM.

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Manufacturing in Gloucestershire

Employment & Skills Issues

April 2012

Ben NeildAssistant Director, SLIM

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Manufacturing in the UK

Source: UNCTAD

In 2009, UK manufacturing sector generated some £140 billion in GVA.

However, between 1990 to 2009, manufacturing’s contribution to UK GDP has fallen from 22% to just over 11%.

This fall has been faster in the UK than in many other industrialised nations.

Due to factors like:-off-shoring-out-sourcing-falling prices

Manufacturing as a % of GVA in leading industrial countries, 1990-2009

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Manufacturing in Glos

Source: BRES

There were approx 31,600 manufacturing employees in Glos in 2010, equivalent to 11.9% of total employment compared to 8.8% nationally.

2% of employment in Glos is in High-tech manufacturing, compared to 0.5%

nationally. A further 3.4% is in medium high tech, compared to 2.9% nationally.

0%

2%

4%

6%

8%

10%

12%

14%

Gloucestershire South West England

% o

f em

ploy

men

t

Low-tech Manufacturing Medium-Low Tech Manufacturing

Medium-high tech manufacturing High tech manufacturing

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Manufacturing in Glos

Source: LFS

The decline in manufacturing GVA follows the national trend, although manufacturing still contributes 16.2% of GVA locally, significantly above the national and regional averages.

Share of Total GVA accounted for by Manufacturing (%), 1998 - 2009

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Gloucestershire

SW

GB

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Manufacturing in Glos

Source: SW Regional Accounts

Manufacturing Businesses by sizeband, 2009

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1-10 employees

11-49 employees

50-199 employees

200 or more employees

% o

f bus

ines

s un

its

Employee Sizeband

Gloucestershire

South West

England

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Higher Level Skills

Source: Working Futures

Employment in manufacturing is becoming more skills intensive.

Employment by Occupation (% of employment), SEMTA, SW, 1987 & 2017

0%

5%

10%

15%

20%

25%

30%

35%

1987 2017 (proj)

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Workforce Skills

Source: LFS

The manufacturing workforce remains less well qualified than the workforce as a whole

Employees by Qualification Level, Manufacturing vs All, South West, 2011

0%

5%

10%

15%

20%

25%

30%

35%

40%

NQF Level 4 and above

NQF Level 3 NQF Level 2 NQF Level 1 No qualifications

% o

f em

ploy

ees

Manufacturing

All Sectors

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Workforce Skills

Source: NESS 2009

Skills-shortage-vacancies (vacancies that employers cannot fill because they cannot find people with the right skills) are uncommon, accounting for less that 0.2% of total employment.

Skills gaps (where people are reported as not being fully proficient in their current job) are common – reported by 20% of employers and as affecting 200,000 employees nationally.

Skills missing are most commonly practical / technical & job-specific. Team-working and communication skills are also cited.

They are most prevalent in Skilled Trades and among machine operatives.

They can have significant impacts – e.g. increase in the workload for others (51% of employers); increased operating costs (37%); difficulties meeting quality standards (24%).

70% report that they are due to people lacking experience and / or having been recently recruited.

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STEM Skills

‘Access to a skilled workforce, particularly science, technology, engineering and maths (STEM) skills, is vital for the sector'.

Plan for Growth, BIS / HM Treasury

‘A strong supply of people with science, technology, engineering and math's skills is important to promote innovation, exploit new technologies, produce world-class scientists and for the UK to compete internationally. The starting point is a good education for children and young people in science and math's’

National Audit Office (2010)

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Young peoples’ attainmentin science and maths

Maths

•83% of 11 year olds in Gloucestershire achieve the minimum standard, compared with 80% nationally

•85% of 14 year olds in Gloucestershire achieve the minimum standard, compared with 81% nationally

•70.5% achieve the standard required for the English Baccalaureate (primarily Maths GCSE at A* to C), compared with 65.8% nationally.

Science

•87% of 11 year olds in Gloucestershire achieve the minimum standard, compared with 85% nationally

•86% of 14 year olds in Gloucestershire achieve the minimum standard, compared with 83% nationally

•80% achieve the standard required for the English Baccalaureate, compared with 76.9% nationally.

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GCSEs

2007/8 2008/9 2009/10 20010/11 Any Subject 97 98 97 98 Mathematics 93 93 93 93 Mathematics & Science 88 87 82 77

Any Science 91 89 84 80 Core Science 75 72 63 56 Additional Science 54 51 45 40 Additional Applied Science

7 6 5 Physics 10 13 18 21 Chemistry 10 13 18 21 Biological Sciences 11 14 18 21 Other Sciences 1 4 3 3

GCSE attempts in STEM-subjects, % of pupils, England

All must study maths and science during Key Stage 4, but not everyone attempts GCSEs. The % attempting maths is stable, the % attempting science has been falling. However, more pupils are now doing triple science – a common basis for progression to A-level and degree level science.

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A-levels

A-level STEM-subject entries, England

The rise in STEM A level entries (16%) is similar to that for all subjects (15%), but there are differences between subjects.

Entries in Maths have grown most rapidly and are on track to meet the government target of 80,000 by 2014.

Entries 1999 Entries 2011 % GrowthAll subjects 680,048 782,779 15Biological Science 47,192 54,739 16Chemistry 35,831 43,250 21Physics 29,552 29,206 -1Other Science 4,124 4,222 2Mathematics 56,100 75,547 35Further Maths 5,145 11,408 122Design & Technology 11,412 14,878 30Computer Studies 10,435 3,517 -66ICT 4,264 8,828 107

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Higher level

Both the University of Gloucestershire and Gloucestershire College provide HE. They collaborate to deliver ‘NEXUS’ - higher-level skills programmes for employers.

The majority of STEM qualifications awarded (65% in 2008/09) by the University are in biological sciences. 15% were in computer science. There were no awards in engineering and technology.

Between 2007/08 and 2010/11, the number of STEM acceptances by the University of Gloucestershire fell by 5%, while non-STEM subject acceptances grew by 4%. Over the same period, STEM acceptances grew by 26% nationally.

However, many study at UWE, Cardiff, Birmingham and elsewhere. Be careful.

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Higher Levels Skills

Source: LFS

In 2008-09, nearly 43% per cent of first degree graduates from UK HEIs were in STEM-related subjects.

However, of these graduates, less than 5% entered employment in the manufacturing sector, despite average wages in engineering comparing favourably to other professions.

Plan for Growth, BIS / HM Treasury

Nearly a quarter of UK engineering graduates are working in non-graduate jobs or unskilled work such as waiting and shop work.

Prof Emma Smith, Uni Birmingham

Only 19% of engineering and technology graduates find work in employment in manufacturing six months after graduating.

While 23% of graduates in the mathematical sciences find work in finance, only 4% find work in manufacturing

HESA Statistics

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Employer Support for STEM Learning

Source: LFS

A 2011 CBI Survey of 566 employers re their involvement in STEM, found that business “recognises that it has a key role to play in supporting schools raise achievement and improve performance”.

67% of employers responding said they had built links with secondary schools 36% had increased their school engagement activity over the last year.

63% provided work experience for pupils48% supported careers advice and/or talks28% provided school governors.

38% of science, engineering and IT focused firms engaged with schools in schemes which promote subject study (for example, take part in STEMNET).

STEM employers are more likely than other employers to offer this type of support (25%).

There was an appetite to play a greater role in delivering careers advice, with 54% stating that they would be willing to do more.

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Perceptions of STEM careers

68% of adults think that “jobs in science are very interesting”, compared to 61% of young people aged 16 to 24

61% of adults agree that “jobs in engineering are very interesting”, compared to 48% of young people

which “highlights the challenge of increasing numbers working in STEM, even when the UK public as a whole finds jobs in STEM sectors attractive”

There are also more hopeful signs, e.g. a higher % of young people viewed engineering as offering a well-paid career

A smaller percentage of young people agreed with the statement that “engineering is a dying industry in the UK”.

Dep't of Business Innovation & Skills, 2011