Articles
It is a common misconception that Britain’s manufacturing and engineering strength is something that has been consigned to the history books.
Whichever source you choose, Britain consistently appears among the top 10 most productive countries for manufactured exports – buoyed by our particular strengths in high-tech industries such as aerospace, automotive and low-carbon energy. No mean feat for such a small island.
But to keep us there in the future, we are reliant on a resource that we’ve historically been rich in, but which is depleted today – skilled people. The industry needs people with the high-level skills to run production efficiently, introduce innovations and develop markets. The fact that, even without a strong economic recovery, companies are reporting skills shortages today has to prompt a rethink of the UK’s policy in this area.
A major new report released by EEF, the manufacturers’ organisation, and JAM Recruitment shows that three quarters of manufacturers say that recruiting employees is a key concern, while almost half say it is their business’s biggest concern. Most expect their demand for skilled people to grow over the next three years.
There is encouraging evidence that manufacturers are alive to the challenges – 60% are planning to step up their training budgets in the coming years and two thirds are already running their own apprenticeship schemes.
But, while employers are taking greater ownership of the skills agenda, they are being hamstrung by training policy, which many feel has created an overcrowded and overly complicated market.
Despite the large amount of political rhetoric in recent years about rebalancing the economy towards manufacturing, only a minority of manufacturers are reporting that the government’s efforts to create a simpler demand-led skills system have made it easier for them to invest in the employees they need.
The message of the report is clear – employers need to be put in the driving seat on skills and given the power to set standards and decide how to train staff, while public funding for training should be routed through the firms that invest in it.
A renewed focus on injecting new blood into the industry is crucial. The government must increase sign-up rates for science, technology, engineering and maths programmes and vocational higher education routes by improving links between industry and schools and colleges and by raising parents’ awareness of the opportunities on offer.
Also, support is now needed from the government to make apprenticeships more ambitious and focused on the higher-level skills required by the industry.
The skills shortage is a long-term issue. The bottom line is that, with fewer skilled people in the labour market, the higher the costs of making things. Britain has an illustrious history of manufacturing. So with the right approach we can elevate the image of engineering careers and provide employers with what they need to build a robust workforce for tomorrow.
- The report Skills for Growth: A More Productive and Flexible Labour Force can be downloaded at www.eef.org.uk