Comment & Analysis
“It will be tough next year.” Philip Whiteman, chief executive of Semta, the sector skills council for engineering and manufacturing, was assessing the landscape for his organisation as the new year approaches and in the wake of the government’s skills strategy.
While welcoming many aspects of the strategy, including the focus on creating apprenticeships and on higher Level 3 (A-level equivalent) skills, Whiteman said that there were doubts that Semta’s funding would be maintained at current levels in 2011, especially in terms of its £100 million pot, or “sector compact”, which allows manufacturers to access funding for training. That money was provided through Train to Gain, which has been axed by the government. Whiteman said: “We think there might be less support for our sector compact, because the contract expires at the end of March. It was funded through Train to Gain, and Train to Gain has been abolished. There is a high risk that the compact might not end up being supported – which would be regrettable, because it’s been very successful.”
Whiteman’s message to manufacturers is to apply now for remaining funding before March arrives. This can allow companies to access money to train staff in NVQ Level 2 and Level 3 qualifications, plus in apprenticeships and numeracy and literacy skills. Whiteman says: “There is a window of opportunity in the next three months: it’s a great time to get the support that the compact gives you if you need it. Use it now, otherwise it won’t be there.”
Semta has already survived a relicensing process carried out by the National Audit Office prior to the new government coming in, which saw some bodies in other sectors scrapped. 2011 is likely to prove to be lean, with funding reduced and councils collaborating more closely. Semta is already working more closely with Cogent, the SSC for the process, chemical and nuclear industries. A formal plan of joint work is likely to be announced in the new year. “I think we have to look at ways of being more effective: the whole agenda of producing more for less will force SSCs to talk about how we can work together.” Semta is also looking at developing streams of commercial revenue that match its strategic objectives for manufacturing industry.
For now, Whiteman is grateful that Semta survived the recent comprehensive spending review, which saw bodies such as the regional development agencies (RDAs) abolished, along with others. He acknowledges: “It happened to the RDAs, but it could easily have been us. Fortunately the government has been supportive of a sector-led approach. What that means, of course, is that we have to find an effective mechanism for linking the sector’s needs with the plans developed locally by the new local enterprise partnerships.”
Some are concerned meanwhile, that there could be a vacuum in government support following the abolition of the RDAs while the new partnerships are established. Whiteman says: “There’s a chance, indeed, that that could happen.”
Going into a tough 2011, he will retain an open mind about the ways in which Semta will continue to work with industry. “There’s a raft of things we could do, all of which would actually contribute to the competitiveness of the sector. So watch this space.”