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									             Engineering Skills

John Loughhead
Executive Director
UK Energy Research Centre

EILL, 25 September 2007
      Manufacturing in the UK
Manufacturing in the UK is not dead
 Employs around 3m
 Makes up around 60% of UK exports
 Contributes 15% to GDP

“There is no large scale British car
 manufacturer anymore!”

   17 car plants
   1.4m cars produced p/a, of which 1.1m were exported
   Over 800,000 UK jobs depend on the UK automotive sector
   Turnover of c.£49bn, earns c.£23bn in exports

(SMMT figures for 2007)
        Manufacturing Skills
There are reported skills shortages at all levels in
                                        IET Manufacturing Sector Panel focus:
                                        skills shortage at manufacturing
                                        management level

                                        The Panel is working with universities
“The vision is to create training and   and employers to set up a
education programmes which will         Manufacturing Leadership Academy
set national standards for delivery
and help employers to meet the
                                         Using existing course modules
demands of global competition in
terms of improved productivity,          Add flexibility, networking and focus
competitiveness and profitability.”      Attract SME participation through
                                        supplier links
     IET Skills Survey
 Only 56% said they believed        71% said they were
  they would be able to recruit       experiencing problems recruiting
  enough people into                  experienced staff
  engineering and technical
  roles this year (65% in 2006)      Nearly half of companies
                                      surveyed had recruited from
 Nearly 90% said they had to         overseas in the past 12 months
  provide additional training for     to cover skills shortages
  new recruits
                                     On average 8.1% of the
 Leadership skills were seen         respondents’ engineering &
  as most lacking in                  technical workforces are female
  experienced staff, with 24%        (half of respondents said the number of
  reporting typical recruits did     female applicants and new recruits had
                                     remained static over the past four years)
  not meet their expectations
 ERP Skills Survey: Findings
 Skills shortages are causing recruitment
 problems, specifically technical skills – this
 will have a direct impact on RDD&D

 The problem is at early stage - without
  intervention, this could become a severe shortage
 Poor data intelligence in the sector
 One response has been overseas recruitment
 Sector seen to have poor image among the young
    ERP Skills Survey: Findings

  The sector has competitive advantages that
  can be used to curb this trend

 Exciting projects in the sector – potential to influence
  career choices among the young
 Once in the sector, retention rates are very good
 Pay does not compare favourably to other career
  areas (e.g. finance), however, within engineering the
  energy sector compares favourably
Areas of Focus

 Better information and data throughout the
  ‘skills pipeline’
 Opportunities to improve the image and
  profile of the sector
 Ensure quality, scope and capacity of
  university courses
 Addressing ‘knowledge transfer’ issues at
  the retirement stage
 Recognising the many existing skills
  initiatives in the sector
     Power Sector

      Undergraduate        Postgraduate           Early Stage
      Training             Training               Industry

                      Power Networks       Developing through
IET Power Academy
                    Research Association          ERP
IET Power Academy

   17 UK major power-related companies
    forming an alliance with 6 quality
    universities, the IET and Energy & Utility
      to attract and sponsor quality BEng and MEng Electrical
       Engineering undergraduates
   Helping to address the engineering skills
    needs of the sector
   Seeking to attract people into engineering

 £2,200 pa bursary
 Payment towards university fees at the end
  of the first and second year of employment
  with sponsor
 Summer Seminar
 8 weeks paid vacation training experience
 Company Mentor and a portal website
 IET Student Membership
 Book allowance

 Outstanding career
Power Networks Research Academy

  5 major UK Distribution network operators
   as founder partners
  EA Technology as an affiliate partner
  The 6 Power Academy universities
  The IET
  A strategic partnership with the Engineering
   Physical Sciences Research Council
PhD Sponsorship Package

 PhD stipend per annum £20,600
 Attending a top UK conference
 Attending a top overseas international
 PC, printer, books
 Annual IET organised seminar
 Close partnership with industrial sponsors
 Mentors from both industry and academia
UK Energy Research Centre


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