Initially published in 2001, the Skills Gap Report which was published in partnership with Deloitte was a study which indicated a mismatch between the skills of available working people and the skills that the manufacturing industry required. The reports that followed confirmed that gap and showed an increasing mismatch of skills.
The shortage of senior, highly-skilled engineers across the board in the UK has been highlighted by figures released in the latest manufacturing purchasing managers’ index (PMI) which has now reached its lowest level in more than three years, following the EU referendum.
To understand the skills gap, we have to understand how the public understands manufacturing. Many people still see manufacturing as a dark, dirty and even dangerous industry.
Most students at secondary school level recognise that science & maths subjects could be useful for getting a good job. However, far fewer feel such jobs are attainable or relevant to them. To add to the problem, the profile of those who do go on to study particular Science, Technology, Engineering and Maths (STEM) subjects and pursue certain STEM careers is too narrow. Women, working class and some minority ethnic groups remain under-represented in some disciplines and occupations, particularly in engineering. This not only means a pool of potential talent is being lost, but that those industries are missing out on the many benefits of a more diverse workforce.
Studies show that these groups tend to have limited exposure to the world of STEM, which those with high levels of exposure generally gaining this through family members’ qualifications, occupations and interests. The greater the level of exposure to STEM, the more likely a student is to study STEM subjects post-16 years of age.
STEM subjects are hugely important; however, much of the current technology curriculum for university and college education doesn’t place enough emphasis on the relevant technical skills needed in today’s manufacturing businesses either. The challenge is that new technologies are emerging at an unprecedented pace and the education system is struggling to keep up with it. Often college and university curriculums are running out of date courses and subsequently graduates leave with outdated skills impacting their employability.
If a new technology does emerge, it can take 6-18 months for this to get onto a curriculum aligned to exams by which time the technology landscape will have moved on again. There is clearly a lack of synchronised technical skills training at college and university level which is struggling to keep pace with the accelerated technology change in industry.
Traditionally working in manufacturing meant manual jobs needing vocational skills and on-the-job training through apprenticeships. Over time, industrial engineers and IT professionals have become in demand as manufacturing has become more automated.
Collaborative manufacturing is creating a greater need for up-to-date IT and technical skills. Employers are needing to upskill both entry level candidates as well as existing staff with advanced skills.
A strong British engineering sector is vital to the long term sustainability of our economic recovery, and increasing the supply of engineers is at the heart of this. As a country we excel in hi-tech industries but we need engineers to make sure the UK stays ahead of our competitors. The rest of the world is not stagnant, so we must do everything we can to uphold our position as a leading engineering nation. The Government’s Engineering UK report finds that engineering businesses have the potential to contribute an extra £27 billion to the UK economy every year from 2022 if we can meet the demand for a quarter of a million new vacancies in the same timeframe.
Businesses and government bodies are already working hard to attract and retain talent within their workforce, but there is always more that can be done to improve the image of the UK’s manufacturing sector and promote the benefits of pursuing a career in this area. With the decision to leave the EU causing increased uncertainty, business and the Government must act quickly in order to keep the UK and the sector an attractive employment option.
To bridge the skills gap, there is a trend for companies to recruit new staff with 50-60 percent of the skills required, as they are unable to find workers with all of the skills required. Employers are bringing these staff into their business with base-level skills and then providing comprehensive training to bring them up to the required level.
At the other end of the spectrum, highly experienced senior managers over 40 years old within the industry, have an immense amount of knowledge to pass on, but can be reluctant to change and be less patient with new technology.
Modern technology helps recruit and retain new workers, propelling manufacturing to a new era of innovation. The right technology allows multiple generations of workers to “meet in the middle” and support manufacturing’s transition. As an example, modern enterprise resource planning (ERP) & product lifecycle management (PLM) solutions reinforce the traditional best practices, as well as meet expectations of younger generation users who can get up to speed quickly on best practices and easily obtain critical historical data for reference and training. Employees of all ages have the opportunity to share knowledge with new recruits through the use of collaborative tools.
The skills gap is most noticeable in the STEM sector, however it is important not to solely focus on this area. The requirement for a flow of highly talented, creative and original workers into the UK holds the key for the future development of companies across the spectrum.
As employers, we must take steps to narrow the skills gap now. This comprises of ensuring existing employees are up-skilled and being committed to finding new talent, both of which will help future proof businesses.
Many manufacturers are making great effort to engage with educational establishments, from primary to university level, which is already leading to greater enthusiasm for manufacturing & engineering amongst young people. Additionally, apprenticeships can play a key role in creating a more prepared and qualified workforce, benefitting both the individual and the employer.
Apprenticeships can certainly play a huge role in preparing skilled workers whilst offering employers the opportunity to strengthen and diversify their workforce providing a future talent pipeline tailored to the individual business needs.
Apprenticeships offer substantial training and the development of transferable skills. Most training is on-the-job working with a mentor, to learn job specific skills in the workplace. This means that technical skills vital to business performance and growth are gained and strengthened, helping to develop our industry as a whole. Apprenticeships bring opportunity; to attract new talent, offer progression and develop a motivated, skilled and qualified workforce.
In April 2017, a new levy will require all companies that operate within England to pay 0.5% of their payroll towards funding apprenticeships. There is an allowance of £15,000 therefore in reality only companies with an annualised payroll of more than £3M will pay the levy.
The levy will support the existing frameworks as they move towards the employer led standards. Current frameworks are currently being phased out and are expected to be removed completely by 2020.
To formulate a new Apprenticeship Standard requires 10 companies to design and submit the standard. Only when this has been approved, can it proceed. This standard can then be used by the company who submitted it, as well as every other companies in the UK. The overall idea being that the levy will support the Government's commitment to improving productivity by increasing the quantity and quality of apprenticeships.
Employers need to take a leap of faith and make the extra investment on supporting new applicants, so they can deliver the skills needed for the business and industry in the long term. The levy could be very powerful for closing the skills gap in the manufacturing industry. Some of the investment is a sunk cost which lowers the threshold for making the business case weigh up to recruit apprentices.
The Apprenticeship Levy will not solve all of our skills problems, but a supply of thousands of skilled apprentices every year will make a positive difference. The levy will most definitely help to transform the skills landscape in the UK manufacturing industry.
A positive image of the sector portrayed by the media is vital. Helping to change historic perceptions of the industry will make career choices within the sector more inviting.
In order to accelerate the narrowing of the skills gap, the Government now needs to help businesses by promoting employment on every level. The decision to leave the EU without doubt poses a serious problem for talent acquisition as many businesses source much-needed talent from the EU. Adapting to marketplace changes as and when new agreements are made will be needed to overcome the ramifications of the Brexit vote.
Continued improvement in the co-ordination, quality, reach and impact of engineering outreach activity by the whole engineering community, business and industry is essential. Building on existing programmes is necessary to positively influence the perceptions and subject choices of young people and get more of them interested in a career in engineering.
Education programmes such as Tomorrow’s Engineers have made it clear that this is best achieved through collaboration and support from local, regional and national STEM employers. Government, working in partnership with business, the education sector and the engineering community, needs to ensure the provision of a national coordinated employer – led, informed and relevant approach to careers inspiration in educational establishments.
It is not unreasonable then, to think that every child should have an engineering experience that is linked to careers and the curriculum, with all schools and colleges being held to account through their relevant inspection authority. This should in turn help us achieve the latest Government target of a two-fold increase in the number of Advanced Apprenticeship achievements in engineering and manufacturing technology, which will be fundamental in us meeting the forecasted demand for skilled engineers by 2022.
Author:
Jess Penny
General Manager, Penny Hydraulics Ltd
01246 811475
jessica@pennyhydraulics.com
Leading agricultural fertiliser producer, CF Fertilisers UK, has opted to switch its tire policy to Continental Tires for the heavy-duty forklifts and on-site trailers at its Cheshire headquarters and manufacturing site.
The company runs a fleet of 14 heavy-duty Kalmar DCE 10 forklifts and some 12 two-axle A-frame trailers at its Ince plant. These tackle the heavy-lifting and movement of 600kg and 1000kg bags of fertiliser from the point of production to storage and despatch facilities elsewhere on site. The site itself, at Ince in Cheshire, sits on 124 acres of land next to the Manchester Ship Canal and includes one Ammonia and three 3 Nitric Acid plants, a further Nitrogen fertiliser plant and 3 compound lines. With approximately 400 employees on site, CF Fertilisers produces 1 million tonnes of fertiliser a year and supplies key market sectors in grass and arable farming. So intensive is the process, its continuous production lines at Ince, and sister site in Billingham in the northeast, account for some 2% annually of the nation’s natural gas usage.
Anthony Jones, Day Handling Team Leader, explained the change in tire policy. “You have to understand that the site is very demanding on tires. Though it is largely flat land, like any major site there is a degree of unevenness at points around the working area that test the wear patterns and life of tires, but our main concern lies in safety-challenges emanating from tire wear. Our Kalmar fork-lifts can pick up four 1000kg bags of fertiliser at one time, and, because they are suspended on straps, each load is effectively ‘live’ in terms of the danger of swinging during transit; while our trailers, which we run as pairs at all times, can also carry that much each.
Because of the nature of the site, safety is a major everyday consideration, and that works right through everything we do. Handling and moving loads with this sort of weight, 24/7, is a key part of the inherent risk on the site, so we take it very seriously indeed.”
The company first looked at Continental Tires in late 2015, and a trial was initiated that was due to run for a full six months. Continental Tires along with local dealer, Nation Tires, offered to set up the trial on both fork-lifts and trailers.
Anthony Jones recalls, “We decided to give ‘Conti’ a chance. We felt the tires we had been using were being changed far too often – so something had to give. We liked the ideas the Continental team put forward and the confidence they had that they could improve on both safety and economy; and we especially liked the fact that they had a very competent and professional local dealer, Nation Tires, the Continental Tires Industrial network partner at Ellesmere Port. A blow-out on a tire, quite apart from the huge safety risk, can also have a very damaging commercial effect on us. We run 24/7, 365 days a year, and if a forklift or pair of trailers is unavailable to us, we soon see back-logs of product needing to be cleared from the end of the production line and moved to storage areas. We produce some 21 different varieties of fertiliser, including our top-selling Nitram brand, and that’s over 1 million tonnes a year: a continuous process that simply cannot be put at risk.”
The initial trial was scheduled for six months, but the immediate improvement was so noticeable that, within just three months, the decision was made to switch the whole fleet to Continental Tires products. The big, heavy-duty Kalmar forklifts feature six tires on two axles. Again, for safety reasons, CF Fertilisers decided to go for the heavy duty pneumatic tires, ContiRT20 11.00 x 20s, but also to inject them with foam. ”Continental said we’d get 12 months wear out of these,” says Jones, “but nine months into their usage, we are still only 50% worn and looking good. It is great economically, in terms of purchase price and saved downtime, and a real bonus from the safety angle. The trucks have special rising cabs in order to be able to deal with the work, and a tire blowing out on a heavily laden truck with the cab raised to its full 10 foot extension could cause it to tip over- and that’s simply unthinkable!”
The onsite trailers used to move bagged products from production into storage areas are two-axle A-frame draw bar units, hitched in pairs and pulled behind agricultural tractors as prime movers. The major problem, again, was too-frequent changes due to wear. Anthony Jones adds, “There was also a major safety risk here. The tires were wearing, and the most worrying part was that it was the sidewalls that were exhibiting most stress, so a blow-out was a constant threat.” The trailers have standard draw-bar configuration of steering front axle and rear fixed axle, both with twin tire hubs. As with the fork-lifts, Continental tires, in this case Continental IC40 10 x 20s, are delivering longer wear times and enhanced safety.
Nation Tires, the local dealer to CF Fertilisers, had a major part to play in the success of the Continental Tires trial and take-up. Managing director, Tony Glennon, said, “For a site this size, with the variety and significance of the vehicles we are talking about here, having a local dealership of our size and capability was an important part of reassuring CF Fertilisers in their switch to Continental Tires. We understood their need for a genuine 24/7/365 support service and were both prepared and able to bring this to the mix, with 17 staff and nine mobile site-service vehicles. They demand a 60-90 minute callout response in the event of a tire needing any sort of attention, and we deliver.”
Anthony Jones has the last word, saying, “No new relationship is going to be entirely free of teething problems, but with Continental and Nation Tires I think we have got as close to a problem-free start as anyone could have wished. I now feel we have a superior level of site safety because of the switch, and the fact that the company is saving money, by getting far fewer tire failures and significantly longer tire life, is an added bonus.”
The latest Continental Customer testimonial video is available via ContinentalTiresTV: https://youtu.be/qIn3Qtsto70
www.continental-corporation.com