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Cogent Market Assessment
MARKET ASSESSMENT
Final Version
For submission to SSDA
as part of the
Business Proposition
Building the
Sector Skills Council for Oil and Gas Extraction,
Nuclear and Radiological Technology, Chemicals
Manufacturing, Petroleum and Polymer Industries
Cogent Market Assessment
Contents
Page
Introduction 3
Executive summary 4
Section 1: Market pressures and performance
1.1 The sector 5
1.2 Drivers of sectoral change 8
1.3 The current state of play 20
Section 2: Changing skills needs
2.1 Employment patterns 23
2.2 Skills supply and employer training 30
Section 3: The proposition
3.1 A vision for the sector 34
3.2 Employer engagement 38
3.3 Engaging partners 38
Appendices
1 SIC Codes 40
2 National Occupational Standards 46
3 Sectoral engagement with skills agenda 47
4 Evolvonline™ 50
5 Partnerships and Interactions 51
6 Sources 65
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Cogent Market Assessment
Introduction
The expression of interest from “Cogent Plus”, representing Oil and Gas Extraction, Nuclear
and Radiological Technology, Chemicals Manufacturing, Petroleum and Polymer Industries,
was accepted by the SSDA board in May 2003, leading to the development phase of the new
Sector Skills Council.
In the months since May, Cogent has developed a Market Assessment, a five year strategic
plan, and an 18 month business plan. This document, the Market Assessment, was used in
the formulation of both the business plan and the strategic plan.
Compiled in line with “Market Assessments – A Guide” (SSDA 2003), the Market Assessment
builds on the detail of the expression of interest, showing the footprint and employment base
of the sector, and the strategic aims of the Sector Skills Council.
Summary of Sources
The information sources used in the generation of the Market Assessment included official
Government databases and websites, such as National Statistics, NOMIS, ABI, DTI, DfES,
DoT, and industry specific reports generated by the National Training Organisations
previously responsible for the sector (OPITO for upstream oil and gas extraction, PINTO for
downstream petroleum, CMPNTO for chemicals manufacture, PAINTO for polymers and sign
making). For nuclear and radiological technology (not previously covered by an NTO) the
primary source of information was a report commissioned by the DTI.
A full listing of the sources can be found at Appendix 6.
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Cogent Market Assessment
Executive Summary
The Market Assessment confirms the facts relating to strategic and economic significance of
the sector. It also shows a current snapshot of the sector – age and gender profiles,
geographical areas of activity, financial and environmental pressures, and existing skills
issues.
It also shows the drivers of change in the sector, such as the planned introduction of new
legislation, consumer attitudes to the industries within the sector and their products, and any
other trends in requirements and demand (for example, skills “hotspots”).
The main purpose of the Market Assessment is to inform the future strategy for the sector,
and for its industries. The direction dictated is that
Extensive work is required to improve the image of the sector as a whole, and of the
industries within the sector, to ensure that future recruitment needs are addressed.
These needs will arise through a combination of factors, including the continuing
introduction of new technology, and the age profile of sector employees (replacement
demand). The sector must also be seen as attractive to a widely diverse audience.
“Cogent Plus” must have influence on the training and education system, both
academic and vocational, to ensure that occupational standards keep pace with
technology shifts, and that skills and knowledge of new and current employees reflect
business need.
Continued expansion of engagement with employers and other stakeholders at a
strategic level is required, in order to ensure that skills have equal weighting to other
aspects of business planning, and that there is recognition of the need to invest in
skills.
“Cogent Plus” must deliver solutions to employers at local, regional and national level,
such as access to learning programmes, development (in partnerships with others) of
new learning programmes, occupational standards and qualifications.
These finding were then used in the development of the Strategic Plan and subsequently the
Business Plan.
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Cogent Market Assessment
SECTION 1: MARKET PRESSURES AND PERFORMANCE
1.1 THE SECTOR
The Cogent sector extends over five industry groupings, included within the SIC
Codes as shown in Appendix 1.
Oil and Gas Extraction
Nuclear and Radiological Technology
Chemicals Manufacturing
Petroleum Industry
Polymer Industry
All five industries share a common foundation – engineering, science and technology.
In order to give a consolidated definition of the sector, information has been drawn
from several sources.
1.1.1 The main areas of activity in the sector
Exploration for and extraction of oil and gas from the UK continental shelf (SIC11)
Refining of crude oil (SIC23.20)
Storage, blending and distribution of petroleum-based fuels
Lubricants and bitumen manufacture (SIC23.20)
Retail sale of fuel on forecourts (SIC50.50)
Manufacture of chemicals (SIC 24.1, 24.2)
Manufacturing of consumer products, such as cosmetics and detergents
(SIC24.5)
Manufacture of active ingredients for the pharmaceutical industry (SIC24.4)
Nuclear propulsion
Defence – nuclear deterrent
Decommissioning and clean-up of nuclear legacy
The nuclear fuel cycle
Nuclear heat (fission based power generation and fusion research)
Conversion of raw polymer into products and components (SIC25)
Manufacturing and designing machinery and equipment for polymer processing,
including moulds, tools and dies
Manufacturing and installation of signs
Design, innovation and research and development linked to new materials and
their applications
A significant number of employees within the sector fall into occupations not covered
by SIC Codes, or cannot legitimately assume to be a significant part of the functional
description.
1.1.2 Profile of sector employees
In common with many other sectors, the age profile of the Cogent sector, as a whole,
shows an ageing workforce, with relatively few employees under the age of 25. There
are some industry specific differences, including where age profiles are skewed due
to the requirements of the job role.
Diversity within the sector, in both gender and ethnicity, does not reflect the expected
inclusion profiles, with all five of the industries over-represented by white males,
especially within process level occupations.
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Cogent Market Assessment
Age Profiles
Within the nuclear industry, there does not appear to be an age problem at the
moment. However, a number of key „hot spots‟ do exist – for example, NII Inspectors
tend to be concentrated in the higher age bands. However, industry experience is
needed for this position, which would explain this pattern. In addition, MoD personnel
tend to be encompassed within the higher age bands. The next 15 years will see a
large number of retirements from the industry, leading to a high level of replacement
demand. (Ref 1)
Within the chemicals industry, existing skills issues may be made worse by
demographic factors. Currently, there is an aging population, with fewer young people
opting for a career pathway in scientific disciplines – the industry is seen as
unattractive. Thus, the workforce is retiring at a faster rate than those entering the
industry. Demographic trends indicate that there is a decreasing amount of available
talent entering the industry. Fewer than 4% of process operators are under 25, while
23% are over 50. The demographic issue is also more distinct in certain UK regions.
(Ref 2)
The oil and gas industry also has an aging workforce. The 2000 Foresight report
highlights this problem, stating that less than 6% of the workforce is under 25 (31%
are 36-45, 29% are 46 -55). However, recent initiatives have already had an impact
on this profile, with the introduction of a number of Modern Apprentices. (Ref 3 & 4)
In the petroleum industry, Field Operators constitute the largest group of employees
in the Stabilising Refining and Manufacturing category of the downstream industry.
Control Room Operators and Field Operators are, in terms of skills issues, key to the
focus of future SSC activity for the petroleum (downstream) industry as detailed in
sections 2.1.2 and 2.2. The age profiles vary for each job category within the industry,
but, with the exception of forecourts, the trend is similar to the rest of the sector. (Ref 5)
4% of employees in the sign making sector, which has a high proportion of SMEs and
micro businesses, are aged 16-19. (Ref 6) For the rubber industry, this falls to 1%. The
workforce development plan suggests a number of reasons for this. Firstly, it may be
due to health and safety concerns regarding the employment of young people in a
manufacturing environment. Secondly, it may be due to an unwillingness to recruit
young people into a position whereby shift work is essential. Thus, the above,
compounded by the fact that there are a large number of 55+ (12%) means that there
is an urgent need for new, younger recruits into the industry. (Ref 7)
In plastics manufacturing, there is once again a small proportion of employees aged
below 20 (5%). Furthermore, there are a large number of over 55s (11%). This leads
to the same conclusions as stated above for the rubber industry. (Ref 8)
Gender and Ethnicity
When compared to the UK as a whole, there is under representation by women in
most areas. For example, less than one in ten women‟s jobs is in the manufacturing
sector (Ref 28). Representation from minor ethnic groups differs greatly depending on
the area of employment within the industry as well as geographical location. In order
to address some of the imbalances, work has been carried out by the predecessor
organisations, and future work will be undertaken by Cogent.
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Cogent Market Assessment
AREA MALE FEMALE WHITE OTHER
CHEMICALS
All Areas 80 20 98 2
Process Operations 97.7 2.3
Professional roles 80 20
OIL & GAS
All companies 82 18 Not currently available
UKOOA Members 67 33
PETROLEUM
Forecourts: cashiers/managers 50 50 83.6 16.4
Forecourts: Maintenance 93 7
Store/Blend/Distribute Not currently available 98.8 1.2
Stabilise/Refine/Manufacture 98.2 1.8
POLYMERS
Sign Making 93.1 6.9 99.6 0.4
Rubber and Plastics 78.8 21.2 Not currently available
(Ref 3, 5, 7, 8, 9)
Examples of contributions to equal opportunities include:
Broad Level Research Report on the Gender Imbalance in the Oil and Gas
Industry in Scotland
This report was compiled by NTP Meridian (Scotland) and centres on gender
imbalance within the Oil and Gas industry in Scotland. The primary aim of the project
was to increase both employer and employee awareness of equal opportunities, and
it was designed to encourage employers to consider any gender imbalances within
the sector.
The research formulated by the report has demonstrated the various cultural attitudes
both within and about the industry. The primary beneficiaries of the report will be
women, who are under-represented in the industry, and employers who could
potentially utilise this underdeveloped resource. (Ref 14)
As a result of the research programme outlined above, a workbook “Understanding
Equality and Diversity within the Oil and Gas Industry” was produced that encourage
the awareness of equal opportunities within the sectors investigated. The information
formulated in the report will aid in the production of training materials to help increase
awareness of equal opportunities in the industry. Employers will be able to access
newly developed learning materials via the Cogent e-learning portal. (Ref 3)
Assess and Promote Career Opportunities for Women in the Polymer Industry
Linked to Campaign 2000
This report was compiled by Polymer NTO in May 1998 and aimed to identify the
reasons underpinning the lack of women in the polymer industry. It suggested how
the NTO and others could try to encourage more women into the industry in the
future.
The findings highlighted the extent to which women are discriminated against; their
under representation in employment in the industry and in higher skilled occupations;
the social problems faced by female full-time workers; the lack of opportunities they
face regarding training/promotion/flexible working.
English for Speakers of Other Languages (ESOL) Initiative for the Downstream
Sector: The issue of English fluency among workers in the downstream sector
(specifically forecourt retailing) was signposted by Cogent (PINTO. A focus paper was
published highlighting the difficulties faced by a large percentage of the workforce.
An initiative to develop a national programme for those employed in the downstream
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Cogent Market Assessment
petroleum sector (specifically forecourt retailing), who speak English as a second
language was recently launched by Cogent.
1.1.3 Size and Structure of the Sector
The total number of employees within the sector is estimated as 805,700:
Nuclear & Radiological Technology: defence 7,000
Nuclear & Radiological Technology: power generation 8,000
Nuclear & Radiological Technology: fuel cycle 20,000
Nuclear & Radiological Technology: source manufacture 3,000
Nuclear & Radiological Technology: nuclear clean up 8,000
Nuclear & Radiological Technology: contractors 8,000
Nuclear & Radiological Technology: education & research 1,000
Nuclear & Radiological Technology: regulators 1,000 56,000
Chemicals Manufacturing 170,000 170,000
Oil & Gas Extraction: direct employees 104,200
Oil & Gas Extraction: supply chain employees 66,500 170,700
Petroleum 123,000 123,000
Polymers Processing 233,000
Polymers Others 28,000
Polymers Sign Making 25,000 286,000
TOTAL 805,700
(Ref 1, 16, 17, + National Statistics)
Employees within the sector can be further categorised by job roles, the main roles
being
Senior Officials Skilled Trades
Professional Occupations Process Plant & Machinery Operators
Elementary Occupations Administration & Secretariat
Associate Professional & Technologist
For Nuclear and Radiological Technology, the highest concentration of employees is
in the Professional category, at 36% (20,160), with 25% (14,000) in Skilled Trades. In
the Chemicals industry, 24% (40,800) are employed as Skilled Trades, with 26%
(44,200) employed as Process Plant and Machine Operators. For Polymers, 44% are
employed as operators, with 14% in skilled trades (craft and related) and 14%
professional and technical. (Ref 1, 9, 15)
1.2 DRIVERS OF SECTORAL CHANGE
1.2.1 Economic conditions
In March 2003, HM Treasury reported that the UK trade deficit in goods and services
was £2.3 billion. Non EU goods deficit was £2.7 billion in March, an increase from
£2.4 billion in February. EU goods trade deficit in March was 0.9 billion (1.1 billion in
February). In March 2003, goods export volumes fell by 1.1% - Imports by 1.2%. In
the 12 months to April, materials and fuel prices increased by 0.1%. The EU is the
major market for the Cogent Plus industries, therefore variations in economic
conditions in the rest of Europe can affect production planning and materials costs.
March 2003 saw fairly strong output producer price inflation; however it decreased
slightly in the following month. This was primarily the effect of a fall in the inflation rate
of petroleum products. In addition, input prices in April were affected by an 18% per
cent fall in crude oil prices.
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Cogent Market Assessment
1.2.2 Patterns of competition
In the nuclear sector, defence business is subject to competition in the lower tiers of
the supply chain, including from abroad. Nuclear power competes with other fuels in
power generation. In mid 2003, the prices for generated kWh are so low as to provide
almost zero profit to any electricity generator – British Energy provides electricity at
lowest marginal cost in the UK. As gas prices rise due to reducing North Sea
production, electricity prices are expected to rise also. The UK‟s nuclear fuel cycle
competes with producers from abroad, and does not have an exclusive market.
The nuclear cleaning programme encourages competition from abroad for equipment
and services. Realistically, most of the skilled and professional resources are UK
based. (Ref 11)
The advent of the Single European Currency has diminished trade barriers between
European Countries and thus reduces national price differences. This will increase
competition throughout the chemicals manufacturing industry on a European level.
In addition, the increase in globalisation will mean companies in the UK will face
greater competition both overseas and at home. This has meant that many
companies are moving away from bulk/commodity chemicals, to higher added value
chemicals, which could lead to UK manufacturers losing their bulk/commodity
markets and may result in companies operating on a small scale within niche
markets.
The industry could be further disadvantaged by levies on feed-stocks and energy that
are not applicable to operations in the remainder of Europe. The UK is not regarded
as an advantageous location to base the „traditional‟ sectors of the industry. The
reason is three fold: distribution costs are increased due to the UK‟s geographic
position; currently, as a whole, the UK manufacturing sector is experiencing low
growth; and patterns of global investment are favouring both the Middle East (low
cost gas feed-stocks) and the Far East (where the markets are currently growing
rapidly). (Ref 9, 18)
The oil and gas industry faces comprehensive competition from other countries.
The UK Offshore Operators Association (UKOOA) has outlined difficulties regarding
the competitiveness of the industry within their 2002 Economic Report “Competing in
a Global Economy”. The report highlights that the current performance experienced
by the sector is not sustainable in the long term. This is due to the industry‟s high
development and operating costs coupled with low output/production. In fact,
operating costs are forecast to increase by 20% by 2010, while production is steadily
decreasing. To aid competitiveness, the industry is working alongside the
Government through the „PILOT‟ initiative to address a number of key issues
(including supply chain and commercial efficiency). Thus, emphasis is being placed
on implementing new technology and „contracting philosophies‟ to reduce United
Kingdom Continental Shelf (UKCS) extraction costs. In addition, work is being carried
out through the UK Norway North Sea Co-operation work group. The primary aim of
this is to enhance cross border co-operation on issues such as infrastructure,
transportation, operational synergies and mutual market access.
In 2002, the chancellor announced the first essential changes to the North Sea fiscal
regime in almost ten years. This had an inevitable impact on both competitiveness
and investor confidence. The tax changes encompassed the following:
The introduction of Supplementary Corporation Tax, at a rate of 10%, which
increases the Corporation Tax rate to 40%.
Introduction of a 100% First Year Allowance on investment.
The Abolition of Royalty from 1st January 2003
However, the Government has taken measures to „open up‟ the offshore market to
smaller companies. This was brought about by lower licensing costs and the „fallow
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Cogent Market Assessment
initiative‟. The initiative was designed to increase momentum with regard oil and gas
activity, regenerating activity in assets and acreage. (Ref 16)
Within the UK petroleum industry, there are 169 identifiable brands currently
trading. This encompasses five incorporated multinational oil companies (BP, Esso,
Shell, Total (TotalFinaElf), and Texaco) who constitute around 58% of the sites with
61% of the volume. There are five multiple grocer retailers (Tesco, Asda, Sainsbury‟s,
Safeway and Morrison‟s) representing 9% of total sites with 24% of the volume. The
remaining 33% of the market generates 15% of the volume.
The number of filling stations has declined from 17,969 in 1993 to 11, 423 in 2002. At
the same time, the average size of sites is increasing (10mlpa for new sites, versus
current average of 3mlpa) with an additional focus on convenience marketing. This
has led to increase in the scope and quality of jobs on offer. Supermarkets within the
UK have dramatically increased their market share of petrol supply, and operate
approximately 75% of the larger sites. The increase in competition has led to the
inevitable closure of smaller, poorer located and rural filling stations. This problem
has been made worse by the environmental controls expected of every station,
regardless of size, presenting an added burden to small businesses.
Product distribution has largely been outsourced to haulage companies that can
achieve economies of scale by handling a variety of other products and servicing
many companies. (Ref 19)
There is currently overcapacity in refining in Europe, with gasoline and fuel oil
production exceeding demand. Within Western Europe, throughout the 100 plants, 42
companies are currently engaged in refining. In 2002, the industry experienced a 15
year historical low in refining margins. However, the market for kerosene and
gas/diesel is under supplied with a projected demand for these products over the next
20 years. Within the UK, there are only 9 refineries from 18 (in 1974) left in operation
today. These refineries have been built for maximum gasoline yield. With the demand
balance moving away from gasoline towards diesel, the refineries face the challenge
of securing large scale investment in new processes. (Ref 10)
Pressure is being placed on the UK polymer industry from new trading partners
such as China and India where they have the advantage of extremely low labour cost.
These pressures threaten the polymer industry and may force it to either relocate
outside the UK, taking advantage of a lower overseas cost base, or reduce
capacities.
Many larger UK polymer companies have sites across Europe. Although the
European plastics processing sector is a major player in the world market, it is being
increasingly exposed to international competition from high technology driven
countries (e.g. USA and Japan) and the low labour market cost countries (e.g. China,
Korea and Eastern Europe – but all with a rapidly increasing technical base).
In September 2001, the DTI produced a report stating that the USA is the leader in
identifying new market growth opportunities within the rubber and flexible foam
industries. If the UK is to compete in this area, the sector will need to develop and
enhance product development and niche production capabilities as low cost
production moves overseas, with Eastern Europe being the main threat on unit costs.
(Ref 23)
Other materials e.g. steel, aluminium and glass are increasingly being replaced within
products by polymers as advances in research and development mean new
applications for polymer materials are found. An example of this is the near „all plastic‟
washing machine and the increased use of plastics within signage. (Ref 27)
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Cogent Market Assessment
1.2.3 Consumers
In the past, the nuclear industry has suffered from the unfortunate image of secrecy.
This resulted from the industries military origins, and the inherent culture of secrecy
associated with the military programme. Unfortunately, many associate the nuclear
sector with danger, pollution and nuclear „waste‟. Many fail to make the connection
between the benefits of electricity and the nuclear power station. The nuclear industry
has been slow to address this problem; however over the last decade substantial
effort has been made to improve the openness of the sector. (Ref 1)
The products developed by the chemicals industry are often essential to how
modern society operates. However, the overall public perception of the industry
continues to deteriorate. Currently, the percentage of UK consumers who perceive
the industry to be favourable has dropped from over 40%, to approximately 20%
since 1980. The primary reason for this is thought to be the perceived impact of
chemical products on both the environment and health.
Due to the above opinions held by consumers, there is an increasing importance
being placed on higher technology products that have little or no harm on either
individuals‟ health or the environment. (Ref 18)
The petroleum industry continually seeks to enhance its environmental
management processes. This is essential if the industry is to improve its standing in
the eyes of the general public. This is the same in relation to the industry‟s
procedures for emergency response. It is important that industry standards regarding
these two issues are continually developed. In recent years, emissions from
refineries, distribution and retail sites have been substantially reduced. (Ref 5)
Consumers are becoming increasingly environmentally aware. The introduction of
progressively lower sulphur fuel will enable more advanced engine technology and
increase the life of exhaust catalysts fitted to modern cars. Thus, nitrogen oxide and
other emissions will be reduced, having associated benefits for overall air quality.
Alternative fuels such as autogas and biofuel are being introduced. (Ref 10)
Consumers are increasingly accepting the replacement of traditional materials with
polymers. For instance, the continuing increase of polymer use within car
manufacture and the resulting decrease in weight of a car has led to substantial
improvements in fuel usage.
Certain markets pervaded by the polymer industry, for instance electrical goods, are
influenced by fashion, such as the recent expansion in the market for brightly
coloured vacuum cleaners. This means that some items are chosen as much for their
aesthetic qualities as for their practical uses. Enhanced designs and design features
will demand processors adopt and implement growing technological developments.
1.2.4 Globalisation
In the UK, nuclear and radiological technology includes the processing of spent
nuclear fuel from eight countries, with competition in this market mainly from France.
The markets served from the UK include Japan, Germany, Switzerland, Spain,
Sweden, Italy, Netherlands and Canada. In 2000, BNFL had orders worth £12 billion,
of which two thirds were from overseas customers, primarily Japan.
The industry has a significant international element of its business. The experience
and skills held by the industry: reactor operation, design and construction,
maintenance and inspection, waste management and decommissioning technology -
provides significant export opportunities to a growing global market. Furthermore,
many British nuclear companies have substantial business in nuclear sector markets
abroad, especially in the USA.
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Cogent Market Assessment
Throughout the world, there are currently around 440 operating nuclear power
stations. Within Central and Eastern Europe, the British nuclear industry is gaining an
important share of business to upgrade and improve safety. Furthermore, the British
industry is gaining contracts for providing components to both those regions and
countries in the Asian Pacific. (Ref 21)
Globalisation has lead to increasingly intensified competition across all aspects of
manufacturing. In fact, the chemicals industry is one of the most globalised of all
manufacturing industries, with the trend continuing. In an attempt to compete
efficiently, the chemical industry is continually improving sector performance by
improving efficiency, reducing waste and cutting costs. Currently, the UK chemicals
industry is the sixth largest in the world.
The result of globalisation has meant an every increasingly complex business
environment. It has led to a worldwide distribution of a multicultural workforce. Within
the industry, there is continued consolidation among companies on a global level,
with Glaxo Wellcome and SmithKline Beecham forming GSK, and Rhone Poulenc
and Hoechst forming Novartis.
Companies dealing in both speciality and bulk chemicals currently find it more
desirable to base operations overseas in the Third World and Middle East. This
allows companies to reap the benefits of cheap feedstock providing a cost advantage
in competitive export markets. (Ref 9, 18)
Within the oil and gas industry, increased globalisation has lead to UK companies
locating their operations where skills and raw materials are cheapest. In addition, it
facilitates an increase in the amount of trade between countries with the industries
products being available in almost every market in the world.
Globalisation has allowed UK oil and gas companies to develop their operations in
developing countries. The energy demand in the developed world is steadily slowing.
However, those countries within the developing world will require much more energy
in the future. According to Shell, the energy needs of the developing world have been
increasing by around 5% per annum – by 2020 they should account for more than
half of the total world energy consumption. Within the UK industry, approximately
50% of supply companies are active overseas with 4% of the world market. (Ref 22)
With UK companies operating on a global basis, those employed by the industry are
positioned throughout the world. Many of the UK workforces are based overseas in
Houston, Gulf of Mexico, Far East and South America. (Ref 16, 20)
The petroleum industry is becoming increasingly globalised with a decreasing
number of players. The policies and strategies of the large companies are managed
globally, with management within the UK focused on local operations. A great deal of
consolidation has taken place between the main players in the industry. For example,
out of the main top five companies operating today, four of those have been formed
from mergers, BP from BP/Amoco/Arco/Aral/Castrol, Exxon Mobil, Total
(TotalFinaElf) and Chevron Texaco. This has led to these multinational companies
having the strength to operate on a global level.
The issues on emerging technology are also dealt with on a global basis, through
alliances between the oil companies and the automotive manufacturers. The
legislation affecting the industries tends to be regionalised, with approximately 80% of
the relevant UK legislation being EU-wide.
The UK polymer industry is increasingly choosing to base its operations outside the
UK, in an attempt to take advantage of low labour and material costs. Globally, a
large number of mergers have taken place in the tyre industry. An example of this is
the consolidation between Sumitomo Rubber Industries and Goodyear in 1999.
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Cogent Market Assessment
Many UK polymer companies operate sites across Europe. The location of
manufacturing operations throughout Europe is essential if the industry is to meet the
challenges of a global market, allowing the UK polymer industry to operate as a
supplier on a regional and global level.
Similarly, “the UK rubber sector is increasingly part of the global market – its future
depends on building distinctive competencies within this market environment”. (Ref 23)
1.2.5 Government Policy
1.2.5.1 The Climate Change Levy
The Climate Change Levy has been signposted as having a significant impact upon
st
the sector. The Levy came into force on April 1 2001, and represented a new energy
tax within the non domestic/business sector. The cost of this is to be matched by an
equivalent cut in employers National Insurance Contributions. However, information
from companies shows that at best they will only recoup one fifth of the taxation. This
will have an associated negative impact on the UK manufacturing base, in particular,
the chemicals industry which with sales of £32 billion is one of the UK‟s largest
manufacturing industries). The impact of the levy will produce a ripple effect that will
weaken the competitiveness and attractiveness of the entire UK economy as a
location in which to manufacture. (Ref 27)
The Climate Change Levy also discriminates against nuclear power, although this is a
carbon free source of electricity. (Ref 11)
1.2.5.2 The EU Chemicals Policy
In 2001, a white paper was published entitled „Strategy for a Future Chemicals Policy‟
addressing the perceived shortcomings of the current system. The paper relates
primarily to the following legislation:
Directive on the classification, packaging and labelling of dangerous substances
Directive on the classification, packaging and labelling of dangerous preparations
Regulation on the evaluation and control of the risks of existing substances
Directive on restrictions on the marketing and use of certain dangerous
substances and preparations.
The White Paper is the initial stage in the redevelopment of the EC Chemicals Policy
and introduced a new system of chemicals control for both new and exisiting
th
substances. On May 7 , 2003 a draft proposal of the legislative proposal was issued
for consultation by the European Commission. This will have cost implications for the
industry, and may lead to revisions in work practices and skills requirements.
1.2.5.3 The Energy White Paper
The Energy white paper, „Our Energy Future – Creating a Low Carbon Economy‟ was
th
published on Febuary 24 , 2003. It committed the UK to a 60% decrease in carbon
dioxide emissions by “about 2050 with real progress by 2020”. The paper outlined a
change in the direction of energy policy, stating that “there are important issues of
nuclear waste to be resolved”. Although no proposals for new nuclear building were
outlined, the paper did state that “nuclear power is currently an important source of
carbon free electricity”. In addition, it does not rule out the possibility that in the future
new nuclear build may be necessary if carbon targets are to be met. The industry is
facing the challenge of attracting suitably skilled employees and in maintaining skills
levels within what is regarded as a “sunset industry”, but which will, regardless of any
+
new build, have a 50 year decommisioning task. (Ref 1)
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Cogent Market Assessment
1.2.5.4 Powering Future Vehicles Strategy
The Powering Future Vehicles Strategy aims to ensure the UK takes a leading role in
the global shift towards low carbon transport by promoting the development,
introduction and take up of new vehicle technologies and fuels. It also wants the UK
automotive industry to be fully involved in new technologies.
This has a major impact on the petroleum industry, both short term and long term.
The strategy presents a new vision of the future direction of transport fuels – by 2050,
the predominant transport fuel may possibly be hydrogen derived from renewable or
low carbon energy sources. This influences thinking on short-term developments, and
on the investment in technology that may have a shortened lifespan. (Ref 24)
1.2.5.5 Managing the Nuclear Legacy
Published in 2002, the White Paper sets out the government approach and outlined
new proposals for the “cleaning up” of the public sector civil nuclear legacy. The Bill of
2003 mandates the establishment of a new national body entitled the Nuclear
Decomissioning Authority (NDA), which will be tasked with the financial responsibility
for all the public sector civil nuclear liabilities and assets under performance based
contracts and will be charged with the “clean up” of nuclear sites. (Ref 25)
The general duties of the NDA include:
to promote and ensure the maintenance and development in the UK of a
skilled workforce able to undertake the work of decommissioning nuclear
installations and of cleaning up nuclear sites;
to secure the adoption of what it considers to be good practice by the persons
with control of designated installations, designated sites and designated
facilities. (Ref 33)
1.2.5.6 Environmental Improvements
The petroleum industry has taken steps to ensure compliance, and to establish self-
regulation in excess of the actual legal requirements. Examples include the
eradication of lead in petrol, reduction in benzene content to 1%, reduction in sulphur
content to 50ppm from the previous levels of 2000-3000ppm, and a general reduction
in aromatic content.
Therefore, production methods and use of materials will continue to reflect
environmental targets. For example, the aim of reducing sulphur content even further,
making 10ppm sulphur fuel widely available by the end of 2004 and ongoing
compliance with emerging legislation, will require continued additional investment in
many cases. (Ref 24)
Currently, there is a programme in progress to gain total vapour recovery by 2004.
The majority of major companies are addressing this issue while the smaller
companies lag behind. There is no industry standard for vapour recovery training. (Ref
5)
The sector is also having to make provision for dealing with government regulations
on the recycling and management of waste. For example, the use of recyclate is a
key aspect of a modern, sustainable and profitable business. Significant progress has
been made – e.g. 200,000 tonnes of plastic packaging in being recycled, and
approximately 50,000 tonnes is being exported – a doubling in the last 5 years. This
is currently a major supply of raw materials. (Ref Defra WRAP Stakeholders Report)
The UK tyre industry has set targets towards improving its environmental
performance. Areas of concern for the industry include improving tyre design to
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reduce fuel usage and road noise; maximising recycling of tyres and sourcing
environmentally friendly raw materials. (Ref 34)
In essence, in the future there will be much more emphasis placed on „greener‟
products and protection of the envronment. The government continues to push for
advances towards the agreements laid down by the Kyoto protocol.
The Chemicals Agents Directive will mean an increased focus on health and safety
responsibilities by individuals across the industries.
The United Kingdom is one of 16 contracting parties to the 1992 OSPAR Convention
for the Protection of the Marine Environment of the North East Atlantic. The
Convention's main roles are to control disposal of all waste at sea and discharges
from land The Department for Environment, Food and Rural Affairs (Defra) is the lead
co-ordinating department for the UK. Another major contributing Department is the
DTI.
In July 1998, at the OSPAR Ministerial meeting in Portugal (Sintra), the section of the
Convention governing the disposal of offshore installations was reviewed and a new
regulatory framework - Decision 98/3 - now exists which no longer permits any
disposal at sea of offshore structures.
OSPAR has set comprehensive environmental goals for the offshore oil and gas
industry, together with the controls and management systems to deliver them. The
UK emissions trading scheme (set up in 2002) is a policy initiative which forms part of
the UK Climate Change Programme. Emissions Trading is an approach designed to
allow greenhouse gas emission reductions to be made in the most economically
efficient way. Emissions‟ trading is already being developed internationally – it is a
central part of the Kyoto Protocol, and the European Commission has also proposed
that EU-wide trading at company level should start in 2005.
Legislation dictates that the petroleum industry must ensure it is prepared for, and
can deal with an emergency. The sector‟s ability to meet this demand is some what
varied, with different methods and training employed. There is a need to employ
industry standards and systems comparable to that of the emergency services.
Over the next five years, a key aspect of legislation will be the introduction of sulphur
free petrol and diesel. Refineries will have to substantially upgrade desulphurisation
processes and technical changes are also needed in the way the fuel is distributed.
Legislation will also further tighten emission standards for refineries.
There will be key legislation developments within the forecourt retailing sector. These
may include the following:
Emissions/vapour tight sites/stage two vapour recovery
Removal of petroleum licensing / update petroleum regulations
Chemicals storage and transportation
Groundwater regulations
Pressurised systems regulation
Further controls on non flame proofed equipment such as mobile/video phones
Changes to health and safety regulations
In the chemicals industry, there is now much greater emphasis on environmental
pressures e.g.
Integrated Pollution Prevention and Control Regulations
Water Framework Directive
EU Strategies for Chemicals Testing
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1.2.6 Technology trends
1.2.6.1 Nuclear and Radiological Technology
Safety is a continuing concern of the UK nuclear industry and the industry is
continuously enhancing safety technology. The designs of replacement reactors
continue to be developed with ever increasing levels of safety. For example, the
industry is implementing safety features into future reactor designs that use forces of
nature as opposed to equipment intervention. The implementation of such features
will reduce both the complexity and cost of the new reactors. Reactor research and
development is increasingly internationalised and the UK industry has a stake.
Waste disposal is a significant concern for both the industry and its stakeholders.
Technical solutions are being developed for ultimate disposal. However, although
technical solutions continue to be developed, UK government policy is lacking in this
area. (Ref 25)
1.2.6.2Chemicals Industry
Recently, the Chemical Industries Association launched a report entitled „Trends and
Research Priorities for the Chemical Industry – Looking to the Future.‟ In addition to
other information, the study provides market information and intelligence on research
and development needs and issues. The primary science and technology research
priorities can be placed into the following three broad headings:
Pacing Technologies – e.g. Bioscience, Catalysis, Combinatorial Technologies,
Nanotechnology and Process Intensification.
Key Technologies – e.g. Computational Technology, Environmental Technology,
New Materials Research, Measurement Sciences, Formulation and Separation
Sciences.
Platform/Base Technologies – e.g. each division of chemistry and chemical
engineering and their interface with additional disciplines (for example, materials
and biotechnology) – This is an area of significant growth.
The report highlights that high–growth areas (e.g. pharmaceuticals and high value
added chemicals) should be given future support. In addition, there will be increasing
importance placed on speciality or „effect‟ chemicals. Furthermore, the commodity
area of the UK industry remains significant and is necessary to support the high
growth sectors.
The continuing evolution of IT will result in technological implications for the UK
chemicals industry, especially those segments of the industry that supply the IT
sector.
1.2.6.3 Oil and Gas Extraction Industry
The oil and gas industry is continually developing technology to achieve and exceed
environmental performance. Therefore, the industry is constantly minimising the
inevitable associated impact that oil and gas extraction has upon the environment.
New design projects for platforms are ongoing, incorporating technology to address
environmental issues. For example, advances in the elimination of oil in produced
water discharge, waste heat recycling and maximising efficient use of gas. Operators
are also continually developing waste reduction and recycling technologies, such as
the recent work to recycle drill cuttings.
Another key change is in the area of exploitation of mature fields and new field
discoveries. The companies operating in the UKCS are constantly improving recovery
technology, allowing formerly non-viable discoveries to be exploited and the life of
current fields to be extended. The newer discoveries also tend to be in deeper
waters farther offshore, requiring new techniques to be developed. (Ref 20)
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1.2.6.4 Petroleum Industry
The key area of technology change relates to long term changes in the nature of
transport fuels and engines. There is a program of incremental improvement in the
quality of existing fuels, coupled with a shift from petrol towards diesel, and the
introduction of new fuels. These could have a major impact on the nature of the
sector. It is vital that the UK industry plays a major role in the development of these
new technologies in order to stay competitive in the longer term.
The immediate technical challenges to move to „sulphur free‟ fuel (10 parts per million
or less of sulphur), commencing during 2004. This will supply fuels that enable
advances in engine technology, leading to more efficient motive power with less CO 2,
NOX, SO2 and other particulates.
Another primary area of technological change is in the vehicle loading/discharging
operation and control room activities. There has been an introduction of on board
computers and sealed parcel vehicles – creating a skills gap among drivers. This type
of technological change has lead to drivers becoming more self managed. However,
there is inadequate support training in this area. (Ref 5)
Developments within refineries have included the centralisation of control rooms and
application of advanced control systems, leading to improved plant efficiency and
available capacity (uptime).
Electronic data exchange will be a key technological development in the near future.
This will be focused upon new business providing electronically delivered services to
the industry, especially traders.
1.2.6.5 Polymer Industry
The UK‟s plastics industry continues to be a world leader in material specification and
design. (Ref 35)
The polymer industry is also developing technology to limit any adverse impact the
sector has upon the environment. Discarded plastics and packaging add to the
growing problem of municipal solid waste. Currently, research and development is
being undertaken to develop recyclable polymers. Both biodegradable polymers and
„solid state shear pulverisation‟ (recycling of unsorted pre or post consumer waste)
are examples of technological developments thus far.
Moreover, the polymer industry is implementing research and development
programmes for polymers in electronics and work is being carried out into
biopolymers, including work into those originating from natural sources and synthetic
polymers that are compatible with bio-systems.
The emergence of engineering and speciality polymers has opened the door to new
and novel applications. The availability of more sophisticated polymer materials has
been brought about by the technical advances in materials and conversion
technology is leading to increased substitution of other materials such as steel,
aluminium, glass and wood with polymers.
Smart materials, materials and structures that can impart information about their
environment to an observer or monitoring device, are now being applied in
engineering, optical and medical technologies. These technological advances are
ongoing. Although progressive changes will continue, technology trends are also
being driven by demands of the customer, influencing the earlier adoption of new
technology by industry. (Ref 36)
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1.2.7 Sustainable development
Sustainable Development is often defined as development that meets the needs of
the present without compromising the ability of future generations to meet their own
needs. Therefore, it can be seen as the patterns of production and consumption that
can be taken into the future without degrading either the human or natural
environment while doing so.
In Nuclear and Radiological Technology the white paper “Managing a Nuclear
Legacy: A Strategy for Action” was published in July 2002, setting out the
government approach towards the “cleaning up” of the public sector civil nuclear
legacy. This is an important step to demonstrating the sustainability of the industry.
The Department of Trade and Industry produced a white paper, “Our Energy Future –
Creating a Low Carbon Economy”, outlining a change in direction for energy policy.
Among other targets, the paper states the target of cutting the United Kingdom
carbon dioxide emissions by some 60 per cent by about 2050, with real progress by
2020. In addition, it also stated the aim to ensure renewable energy made up 10 per
cent of United Kingdom electricity by 2010. It stated that “nuclear power is currently
an important source of carbon free electricity….Important issues regarding the clean
up of nuclear waste are to be resolved.” (Ref 37)
In the chemicals manufacturing sector, the Responsible Care programme is in
operation. Members of the Chemicals Industry Association are committed to ensuring
chemicals are made, distributed, used and disposed of safely. Members are
continually working with other organisations, government and local communities to
ensure this is maintained. Since 1989, chemical companies throughout the United
Kingdom have been committed to an international programme termed „Responsible
Care‟. This means that companies place the protection of health, safety and the
environment at the heart of their operations.
In 2001, the European Commission published a white paper entitled „Strategy for a
Future Chemicals Policy‟. The basic aims of this white paper are fully endorsed by the
Chemicals Industry Association. The white paper proposes that in order to enhance
protection of human health and the environment, legislation for „new‟ and „existing‟
should be bundled into one. It recommends all chemical manufacturing over one
tonne be tested and registered. The heart of the white paper stipulates the setting up
of a regulatory system termed „REACH‟ (the Registration, Evaluation and
Authorisation of Chemicals).
The UKOOA Sustainability Strategy - „Striking a Balance‟ - was published in 2002,
and is the first attempt at setting out a strategy for sustainable development in the
upstream oil and gas sector. Furthermore, it is the first step in defining the sectors
relationship with society as a whole (their interactions, impacts and responsibilities).
The Sustainable Development Commission has provided an encouraging appraisal of
„Striking a Balance‟. The strategy document outlines 58 commitments in areas of
economy, environment, society and stewardship. In addition, an extra five are
included relating to key processes for delivery, performance measurement and
reporting, stakeholder engagement and best practice sharing throughout the industry.
The role of the petroleum industry as the supplier of energy for transport makes it a
key player in the move to a sustainable future and we expect significant changes to
take place in the nature of the sector. This will include changes in the type of energy
source used as input, changes in the nature of fuels delivered to vehicles, and
changes in the nature of the manufacturing process. The industry has a major role to
play in the development of long term strategic goals as well as ensuring that the best
environmental result is achieved from existing technologies during the transition.
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The main environmental issues being addressed by the Petroleum Industry are:
Acidification
European Commissions Acidification Strategy
1999 Gothenburg Protocol
EU National Emissions Ceilings Directive
Vehicle Emissions
introduction of fuels that facilitate improvements in engine and exhaust treatment
technologies (Auto-oil)
Ozone
National Emissions Ceilings Directive (NECD) – European Commission Directive.
Clean Air for Europe (CAFE) approach.
Climate
The climate change programme – United Kingdom Government Initiative. This
programme sets out the country‟s response to the worldwide call for increased
action regarding climate change. The initiative begins to lay the foundation for
more fundamental changes in the years to come. Many of its policies and
measures will deliver cuts beyond 2010. The United Kingdom Petroleum Industry
Association (UKPIA) is working with the government on many initiatives regarding
all of the above environmental issues (Source Document 10).
As previously stated, the industry has been proactive in seeking to reach or exceed
the environmental challenges presented to it – for instance, the reduction in sulphur
levels in fuel, and the increased efficiency of refineries leading to a significant
reduction in emissions.
Key to the sustainable development of polymer industry is the need to ensure the
following:
Increased production efficiencies to reduce energy usage
Increased production quality leading to lower scrap rates, to reduce energy
consumption
More workforce awareness of the need to conserve energy usage
Improved technical capability to allow greater use of recycled materials.
1.3 THE CURRENT STATE OF PLAY
Nuclear and radiological technology within the UK provides direct employment for
around 46,000 throughout the UK, and generates work for approximately another
10,000 throughout a relatively wide UK geographical spread. (Ref 1)
The annual turnover of the sector is approximately £5bn (2000 figure).
The estimated contribution to national GDP is in the region of £3.3bn (2000
figure).
The civil nuclear sector currently provides over 20% of the UK‟s electrical power
generation capacity. This is likely to decrease in coming years, nevertheless, a
significant clean-up programme is planned equating to over £47billion over the next
50 plus years.
The DTI White Paper entitled „Our Energy Future – Creating a Low Carbon Economy‟
th
published on 24 February 2003 states “Nuclear power is currently an important
source of carbon free electricity. However, its current economics make it an
unattractive option for new, carbon free generating capacity”.
However, although the paper did not contain any proposals for new or replacement
nuclear build, it did state the following: “We do not rule out the possibility that at some
point in the future new nuclear build might be necessary if we are to meet our carbon
targets”.
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Cogent Market Assessment
The UK‟s nuclear power saves as much carbon as all the cars on Britain‟s roads
use.
In 2001, the nuclear industry contributed to approximately 0.1% of GDP in
relation to processing nuclear fuel, reprocessing of spent fuel and treatment of
nuclear waste. (Ref 38)
Investment within the nuclear sector constituted 0.4% of all industrial investment
and 1.2% of investment made by the energy industries in 2001 (Ref 38).
The nuclear sector plays a significant role within the UK‟s Defence Policy.
Nuclear power is experiencing a continuing expansion in a number of world markets.
Thus, nuclear power is high on the programme of business opportunity in North
America (where UK companies have a substantial stake). This reinvigoration of
nuclear energy is based on both substantial worldwide improvements in nuclear
productivity and safety, and escalating fossil fuel prices.
British Energy has invested in nuclear plant operations in both Canada and the
US.
BNFL owns one of three global reactor technology companies.
Many companies within the UK supply chain are incorporated into the global
market.
Energy consumption in the world has risen by 3.3% per annum over the past 30
years. Nuclear power has maintained its share of world electricity production at
roughly 17% since 1990. (Ref 39)
The vast majority of reactors likely to be in operation in the world by 2020 are
already in service today.
The chemicals manufacturing industry is a core element of the UK manufacturing
sector. Within key regions across the UK, the chemicals industry is a significant
employer and contributor to added value. The current size of the industry is
comparative to that of the UK economy, making a positive contribution to the UK
balance of payments. The position of the industry within the current UK economic
climate can be seen in the following light:
In 2001, the chemicals industry employed 170,000, with a comparatively high
percentage being employed in SMEs when compared to France and Germany.
The industry contributes approximately 2.5% of UK Gross Domestic Product
(GDP).
The chemicals industry contributes 11% of manufacturing industry gross added
value.
In 2001, capital investment stood at £2.7 billion, representing 16% of total
manufacturing investment. Annually, the industry spends around £3billion on new
capital investment.
On a domestic basis, the chemicals market stands at £23.7 billion. Demand
originates from all sectors of UK industry.
The UK chemicals industry is the sixth largest in the world; this equates to roughly
three percent of world chemicals production.
In 2001, the UK had a positive trade balance in chemicals (£2.4 billion). This
positive situation has been sustained over a long period of time.
Sales of UK manufacturing chemicals (excluding pharmaceuticals) are worth
£26.1 billion. This figure represents 7% of value added in UK manufacturing.
The UK has a relatively high proportion of speciality chemicals and consumer
products within its chemicals portfolio. The speciality business, as a percentage
of total UK chemicals business, is greater than all the UK‟s major competitors
except Italy.
There are a number of economic factors that attribute to the struggle for profitability.
Namely, those factors that impact upon the UK‟s performance relative to Europe, the
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strength of the pound against the Euro, or the UK‟s position within Europe in
comparison to the rest of the world, and in particular the potential financial burdens
associated with the EU chemicals strategy.
The Middle East and Far East are expected to capture the bulk of global growth
in petrochemicals.
Ethylene capacity is predicted to grow in the Middle East by 8 – 10% per annum,
Far East and Latin America 6 – 8% pa and Europe by 2% pa. (Ref 2, 18)
The Oil and Gas Extraction Industry within the UK supported over 265,000 jobs
across the UK in 2002.
In 2001, the UK was ranked the fourth largest gas producing country and the
tenth largest oil producer in the world.
The UK economy has benefited from £190billion (2002 prices) in North Sea
Taxes since the mid-1960s. Government tax revenues have been strong in recent
years, with the impact of high crude prices more than offsetting the production
decline and adverse exchange rate movements.
The UK Treasury estimates that North Sea taxes in 2002 were at £4.9 billion.
The industry has invested £205 billion (2002 prices) in the exploration and
development of the UK offshore sector since activity began in the mid 1960s.
Over recent years the North Sea industry has represented 17% of total UK
industrial investment. In 2002, total industry expenditure (on exploration,
development and operating costs) was in the region of £8.5 billion.
Approximately half of the UK oil and gas reserves (24-32 billion boe) are yet to be
produced. (Ref 16)
However, in 2002, UK production of crude oil and Natural Gas Liquids (NGLs)
decreased by 0.6% compared with 2001, to 115.9 million tones.
There is a general decline from older established fields, with only eight new fields
starting production in 2002 accounting for 1.4% of total production.
During 2002, the UK retained its position as a net exporter of oil and oil products.
However, it was 6.5% lower than in 2001. In addition, net exports of crude oil and
NGLs decreased in 2002 by 9.2% equating to 32 million tones. (Ref 40)
UK production of natural gas in 2002 was 2.6% lower than in 2001. (Ref 38)
From an international perspective, following the September 11 2001 terrorist attacks
on the USA, the market was unable to hold prices $22-28 per barrel on Brent oil
(OPEC target range for the crude basket). The result was an associated impact on oil
demand.
In 2001, world oil consumption was down marginally on the year before (the first
decline since 1993). During 2001, Europe and Africa were the only regions to
register consumption increases.
In 2001, world consumption of natural gas grew by 0.3%, a drop from the 4.3%
increases recorded in 2000.
The Middle East was the fastest growing gas production region in 2001 (driven by
the expansion of Qatari and Omani liquefied natural gas exports). (Ref 41)
The UK is amongst the leaders in Europe in the introduction of cleaner fuels, with the
petroleum industry introducing virtually sulphur free petrol and diesel.
Exports of petroleum products in 2002 were 12.0% higher than in 2001
Oil demand in the UK is mainly for transport: this demand has been reducing by
1% per annum, as the increase in engine efficiencies outweighs the increase in
traffic.
The industry generates annual sales of some £40 billion – HM Treasury receives
approximately £26 billion through duty and VAT
At the end of 2002, there were 11,707 sites retailing over 36 billion litres of motor
fuel. (Ref 19)
The average volume per site is 3.1 million litres per annum. (Ref 19)
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Forecourt retail sites require incredibly high safety standards, due to the hazardous
nature of the product being handled by the general public in an urban environment.
The Polymer industry is generally reported in two parts, covering plastics and
rubber.
The UK polymer sector is essential to the success of many other UK industries,
including construction, packaging, aerospace, automotive and domestic
appliance manufacture. Plastics accounts for UK sales approximating £17.6
billion.
Polymer usage is increasing at an average rate of between 3-4% per annum. In
2002, the UK consumed approximately 4,750 k tonnes of plastic.
Increasing competition from developing countries as well as customer
requirements are resulting in an increased focus on research and development
and innovation. Dyson is a prime example of this, where manufacture of upright
vacuum cleaners has been moved to the Far East while its research and
development facility remains in Britain.
When compared to the manufacturing industry as a whole, the plastics industry
turnover has grown overall by 14.4% between 1995 and 2000, as opposed to
11.0%.
When compared to the manufacturing industry as a whole, the rubber industry
turnover declined by 9.5% between 1995 and 2000, as opposed to a growth of
11%. However, year on year changes in the rubber industry have been erratic.
Gross value added at basic prices increased by some 15.3% between 1995 and
1998, only to dip marginally in 1999 and 2000. (Ref 27)
At a pan-industry level, Germany, France and the United States demonstrate a labour
productivity advantage over the UK within a number of sectors including
manufacturing. However, Britain leads all countries (France, Germany and the US) in
mining and extraction (Ref 30).
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SECTION 2: CHANGING SKILLS NEEDS
2.1 Employment patterns
2.1.1 The number of employees within the sector is continuing to fall, whilst productivity
continues to rise. The UK distribution of employment is as follows:
AREA NUCLEAR CHEMICALS OIL & PETROLEUM POLYMERS
(Ref 1) (Ref 2) GAS (Ref (Ref 31) (Ref 27)
3)
Scotland Not 10,200 52,917 9,840 17,160
Northern available ?? 1,707 8,610 ??
Ireland
Wales 8,500 3,414 11,070 16,302
North West 34,850 8,535 13,530 252,538
North East 30,600 10,242 7,380
Yorks & 13,656 12,300
Humber
West 23,800 11,949 4,920
Midlands
East 11,949 9,840
Midlands
South West 8,500 3,414 8,610
South East 53,550 44,382 16,605
London 3,690
East of 8,535 16,605
England
TOTAL 56,000 170,000 170,700 123,000 286,000
2.1.2 Recent and Expected Changes in Employment
Across the industries, companies have not been major recruiters for some time.
However, recruitment needs are changing. Many companies may be recruiting
sizeable numbers of young people, graduates and adults over the next decade.
Nuclear and Radiological Technology
th
The Energy White Paper published on February 24 , 2003 stated that there are no
immediate plans for new nuclear build. This may have associated future impact upon
the employment within the industry. However, the government also published a White
Paper entitled „Managing the Nuclear Legacy, a Strategy for Action‟ published on July
th
4 2002. Within this it states a Nuclear Decommissioning Authority will be tasked with
the clean up of nuclear sites (where the task is wholly the responsibility of
government). This is a large undertaking, with estimated work worth £47 billion over
the following 50 years. This may lead to an increase in the need for skilled
employees, thus having a positive impact on employment within the industry.
Employment is expected to maintain constant for at least the next 5 years.
Chemicals Industry
The UK bulk chemicals sector was originally dominated by ICI. However, as ICI
began to change focus and direction, a wide range of international companies have
invested in previous ICI businesses. This has led to associated employment
opportunities for the UK chemicals workforce. For example, US based company
Huntsman acquired $2.5 billion of ICI‟s operations in 1999. Since then, they have
invested over $225 million, showing their commitment to the UK. (DTI – Invest UK,
September 2002)
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Cogent Market Assessment
During 2003, Japanese chemicals company Nippon Gohsei are to open a chemicals
production facility in Hull, bringing 70 permanent jobs to the UK chemicals industry.
(DTI)
Oil and Gas (Upstream) Industry
Between 2000 and 2001, the oil and gas industry increased recruitment of technician
apprentices from 20 to 150.
The oil and gas sector is subject to cyclical employment trends. Thus, the nature of
the industry has caused many experienced professionals to leave the industry or
country seeking further opportunities or security. This situation is exacerbated by lack
of investment in training and development and low recruitment when oil prices are
low.
During the initial months of 2003, there were a number of key developments within
the UKCS that have facilitated changes in employment. These came in the form of
both new investment opportunities in, and new entrants to, the North Sea industry.
In January 2003, a US based firm, Apache, had confirmed that it would be locating its
operations office for the Forties field in Aberdeen. Thus, Aberdeen will become the
base for a significant new entrant to the North Sea. The purchase of the Forties field
by the company is partly a result of the licence transfers in response to the
government and industry initiatives through PILOT (the oil and gas industry task
force), allowing independent companies to follow up prospects in fields larger
companies do not consider a main element of their future plans. Apache has provided
employment offers for the complete BP Forties team both offshore and onshore.
In February 2003, a significant new player entered the UK offshore industry. Perenco
decided to set up business in the UK, buying 14 North Sea gas fields and connected
pipelines from BP – coupled with the BP share of the Bacton gas terminal. (Source DTI
Press Release 13th February 2003)
New investment opportunities in the North Sea have been facilitated by the Fallow
Initiative, developed by the DTI with PILOT. This joint initiative between government
and industry ensures that North Sea assets can be fully exploited. In total, 77 blocks
and discoveries are to be made available. Among other key aims, PILOT aims to
achieve the creation of 100,000 more jobs before 2010 (in addition to earlier
forecasts). (Source DTI Press Release 6th March 2003)
The new employers entering the UK-based industry have extensive experience in
operating mature fields to prolong life, and therefore prolong employment.
The (Downstream) Petroleum Industry
Refineries have evolved over time to address specific market needs for fuels and by-
products, and to address specific legislation.
Refining is becoming more sophisticated and operators need the skills to manage
high technology central computerised control systems. Safe operation of plant is of
primary importance, as is the minimisation of environmental impact of both the
production and the end product.
In retailing, the larger petrol stations are focussing on convenience or are part of a
supermarket or part of a motorway service area. This has changed the nature and
scope of petrol station employment considerably and increased manning levels in the
large sites. By contrast rural petrol stations are suffering from a combination of fierce
competition from supermarkets and increasing environmental controls. This is leading
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Cogent Market Assessment
to ever increasing numbers becoming economically unviable and thus many must
cease trading or diversify in order to remain viable.
Polymer Industry
Generally, employment within the polymer industry is decreasing (as defined by SIC
25). Furthermore, this trend is likely to continue unless greater focus is placed on
higher end skills and the industry diverted from competing with low cost markets in
the Far East and Eastern Europe.
Recruitment of young people, especially into formal polymer apprenticeships, has
declined in recent years. (Ref 7, 8)
Labour Turnover
Information on labour turnover across the industries is not currently available.
2.1.3 Regional clusters
Nuclear and Radiological Technology
The majority of all of the UK employment regarding nuclear fuel processing is
concentrated in North West England. In the South East and London region (Harwell,
Culham and Aldermaston) there is a significant nuclear industry cluster. The nuclear
fusion research centre is based in Culham. Caithness has a large decommissioning
task, and the Ministry of Defence operates large nuclear shore support base in
Western Scotland.
Chemicals Manufacturing
Within the North East of England, the chemicals (organic) industry contributes almost
25% of the UK employment base. There is a strong core of 30 organisations
producing organic basic chemicals. The North West accounts for over 55% of the UK
basic inorganic chemicals, thus providing significant employment for the industry.
Yorkshire and Humber is also a key region for employment within the UK chemicals
industry, employing 32,000 people. Within West Yorkshire, speciality chemicals
including dyes and pigments are produced by 25 firms, employing 4,400. This
accounts for 40% of the UK total for this SIC Code. (Ref 13)
Oil and Gas Extraction
A significant proportion of employment in the extraction and production of oil and gas
and the supply of services to the production industry is centred in Scotland. In fact,
Scotland is home to 74% of UK employment in these two industries, the majority of
which is based in the vicinity of Aberdeen. The second largest concentration of
employment is found in the headquarters functions of the oil and gas companies, in
London. The UKOOA Economic Report 2002 stated that 6% of Scotland‟s workforce
was either directly or indirectly supported by the offshore industry. Approximately 400
businesses in the East of England can be identified as being related to oil and gas,
mostly regional offices of operating companies, small engineering companies and
consultants. (Ref 16)
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Cogent Market Assessment
Polymers Industry
Within the East Midlands, plastics products are produced for both the automotive and
food industries. This cluster has grown by 50% since 1991 and employs 21,000
people. The West Midlands accounts for 30% of UK employees producing synthetic
rubber. The South East is home to the largest concentration of polymer companies in
the UK (1,045), although it is not recognised as a cluster. The North West is home to
one third of the UK„s employment producing plastic in primary form, with 135
organisations employing 31,000 people, an increase of 50% since 1991. Polymer
clusters are stated by DTI to exist in East midlands, North West, North East, Wales
and the West Midlands. (Ref 27, DTI)
Petroleum Industry
Stabilising, Refining and Manufacturing activities are focused around the refinery
locations in Scotland, Wales, Yorkshire & Humber, East England, and North West
England. Storage Blanding & Distribution has a similar profile, although with a greater
spread throughout England. Heating Services/Distribution and Forecourt Retailing
activities are spread throughout the UK, with no recognised clustering other than a
presence in relation to area population. (Ref 5)
2.1.4 Occupational shifts
The oil and gas industry is one of great uncertainty and variation. This point is backed
up by the industry Skills Foresight Survey, in which it states that 41% of companies
are undecided as to whether they will change their employee requirement over the
next 12 months (2000 – 2001). Therefore, mapping expected occupational shifts is
relatively difficult. However, the Skills Foresight Survey provides data that gives an
indication as to the outlook regarding increases and reductions in various industry
occupations. (Ref 3)
Predictions on workforce change in the chemicals and polymers industries vary by
occupation. The largest changes are expected to be in Process Operations,
apprenticeships, and professional positions, with 25%, 31% and 25% of companies
predicting an increase in 2003-2004. In 2005-2007 these predictions change to 33%,
24% and 34% of companies. The vast majority of companies expected all
occupational roles to, in the main, to stabilise. (These figures take no account of
replacement demand). (Ref 2)
For the petroleum and nuclear industries, overall employment (as defined by SIC 23)
is predicted to fall by 16% between the base years of 1999 and 2010. The most
notable changes are expected in administration and clerical occupations (down by
34.9%), elementary clerical and service occupations (down by 25.1%) and process
plant and machine operatives (down by 15%). (Ref 12)
2.1.5 Trends in replacement demand
The data demonstrates the trends associated with businesses replacing staff as
required. This may be the result of natural wastage (e.g. retirement) or people
changing jobs. As with all data sourced from the Skills Dialogue, Institute of
Employment Research (IER) analysis has been used and is limited to a two digit SIC
code. Therefore the data, although providing an adequate picture, is related to a
broad sector grouping.
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Cogent Market Assessment
Projected New Entrants by Main Occupational Groups 1999 – 2010
Manufacture of Chemical products, rubber, plastic and other wood products
Employment Expansion Replacement Net New
Occupational Group 1999 Demand Demand Entrant Needs
Corporate Managers 27298 -2791 4744 1953
Science/Technical Professionals 7806 -15 2347 2332
Business/Public Service Assoc Prof 11769 -495 8566 8071
Skilled Metal/Electrical Trades 18605 -2979 12240 9261
Process Plant and Machine Ops 50359 -7745 39312 31567
Transport Drivers and Operatives 23581 -2893 14718 11825
Elementary: Trades/Plant/Machinery 26675 -2352 24279 21927
Projected New Entrants by Main Occupational Groups 1999 – 2010
Wholesale and retail trade and manufacture of coke, refined petrol and nuclear fuel
Employment Expansion Replacement Net New
Occupational Group 1999 Demand Demand Entrant Needs
Science/Technical Professionals 2521 -76 1486 1410
Business/Public Service Professionals 794 -6 151 145
Science Associate Professionals 1097 -193 397 204
Business/Public Service Assoc Prof 1422 -128 1051 923
Skilled Metal/Electrical Trades 4522 -818 3663 2845
Process Plant and Machine Operatives 2767 -416 1287 871
Transport Drivers and Operatives 2390 -278 1327 1029
Elementary: Trades/Plant/Machinery 1159 46 992 1038
(Ref 12)
The main trend is for a decline in recruitment due to expansion, but a significant level
of replacement demand due to age demographics.
2.1.6 Trends in qualifications requirements
Previously, the science and technology workforce (in its broad sense) has been
shown to be highly reliant on high level qualifications at both degree and sub degree
level. Thus, due to predicted growth in these occupations, a closer relationship
between this labour market and Higher Education will have to be fostered.
There has been a steady decrease in the relative number of individuals passing „A‟
level mathematics and physics. In addition to this, there has been a perceived drop in
the standard of mathematics at both GCSE and „A‟ level. This trend is of concern to
all industries, with mathematics and physics being core qualification requirements
across the sector.
The position in Scotland shows a reversal of the trend, with entries at Higher level in
Mathematics, Chemistry, Physics and Geography all showing a marked rise between
2000 and 2001. The pass rates have remained relatively static. (Source: SQA 2001 Annual
Statistical Report, SQA, 2002)
Modern Apprenticeships remain vital to the sector as a whole, and frameworks are
maintained for all appropriate areas, as shown in appendix 7. In due course, Cogent
needs to extend provision, to ensure that new industry-specific markets are covered.
Foundation degrees also form part of the new qualifications framework in England
and Wales. Cogent will assist in the development of foundation degrees where there
is recognised employer demand.
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Cogent Market Assessment
2.1.7 Trends in skills requirements and skills use
Although the nuclear sector does not have an immediate overall skills shortage, the
health sub-sector currently has a shortage of people with radiological skills. Current
skills „hot spots‟ are present. Examples include:
Radiological protection – health physics
Regulation
Modern Apprenticeships
Critical assessment
Control and instrumentation
Project management
Radiochemistry
Nuclear education in higher education
Safety case writing
Nuclear safety research
Numerate graduates
Corporate capabilities (Ref 1)
In chemicals manufacturing, key skills deficiency can be seen in relation to the area
of control technology. Roles affected currently include process operators, craft grade
engineers and managers and supervisors. Management skills are also highlighted.
(Ref 2)
Within the oil and gas industry, the present recruitment difficulties appear to mirror
future problems. Therefore, present and future skills shortages can be deduced as
lying in the managerial and technical areas. (Ref 3)
The petroleum industry Foresight on Skills provides data demonstrating the primary
skills gaps within the industry. The survey consulted employers who were asked in
which skills areas the shortfalls existed. Technical and practical skills formed the most
common response given, with variations in each sub-sector. (Ref 5)
Key skills shortages and gaps identified in the rubber industry include soft skills such
as communication, through to technical skills directly related to the job. Management
skills were also highlighted. (Ref 7)
For plastics, more than 40% of companies surveyed claimed skills gaps in Plant and
Machine Operations, and just under 40% in management and supervisory roles. (Ref
8)
In comparison to the UK average, the Employers Skills Survey (2002) highlighted
skills shortages among professional, associate professional occupations and in
skilled trades. In addition, vacancies for skilled trades‟ occupations were concentrated
within manufacture and distribution. Thus, within the manufacturing sector the key
problematic areas were within skilled trades and operatives. In excess of fifty percent
of hard-to-fill and skills-shortage vacancies were for people within these two
occupational groupings. (Ref 29)
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Cogent Market Assessment
Summary of Major Skills Gaps and Anticipated Changes
Nuclear and Radiological Technology
Although there are no immediate skills gaps within the sector, the following is
anticipated within the next five years.
By 2007, current suggestions show that the four remaining Magnox reactors will have
been closed. Thus, these sites will transfer to the nuclear clean up programme with
associated skills changes. However, the four stations generate limited UK electricity
capacity. In addition, this type of technology would not be used in any future power
generation programme. Therefore, the loss of skills uniquely related to this type of
technology would have no affect on the ability to keep the nuclear option open.
However, a loss of more generic nuclear skills such as safety or maintenance skills
may impact upon future capabilities. (Ref 1)
Chemicals Manufacturing
Within the chemicals sector, the most notable skills deficiencies are within the area of
control technology. The roles currently affected include process operators, craft grade
engineers, managers and supervisors.
In addition, there is an increasing need for graduates to have experience of a broader
range of multidisciplinary skills. This trend is expected to continue for the next two to
three years, and has been primarily attributed to changes in working practices,
technological innovation and legislation. (Ref 12)
Oil and Gas (Upstream)
In the future, it is anticipated that the main skills deficiencies recognised by the
industry will be greatest in the managerial and technical fields.
The challenge for effective exploitation of new technology has been identified by the
recommendations formulated from the PILOT‟s Innovation and Technology Group.
Against this background, the Foresight survey highlights deficiencies in managerial
skills, within Design and Construction, Terminals and Installation & Abandonment.
The extent of skills shortages in the future will largely depend on the level of
employment within the industry. (Ref 3,17)
Petroleum (Downstream)
Within the petroleum sector, the industry faces key skills shortages in technical skills,
ADR for drivers and communication skills for those in forecourt retailing.
In addition, the industry is currently experiencing key skills gaps in IT, health and
safety and in the field of hazardous electrical equipment. It is anticipated that future
skills gaps will grow in these areas. The Foresight on Skills (2002) survey has stated
that 39% of employers expect the situation to worsen, while 19% expect it to improve.
Within the sector, there needs to be improvement in communication, management
and project management. (Ref 12)
In the sub-sector of Storage, Blending and Distribution there has been key
technological change in the vehicle loading/discharging operation and depot control
room operations. The introduction of both on board computers and sealed parcel
vehicles has created a skills gap amongst drivers.
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Cogent Market Assessment
At the moment, companies in the petroleum industry are experiencing a low number
of job applicants. Furthermore, those who are applying lack the appropriate skills and
qualifications.
Two-thirds of all those employers who anticipated skills gaps reported that they are
brought about, in part, by legislation and technological change.
Polymer Sector
The Skills Foresight Report for the Plastics Industry (2000-2001) has identified the
most notable skills gaps as being in the areas of technical competence and
communication. In addition, the survey highlighted plant and machine operatives and
managers/supervisors as being the most likely categories of employee to be
recognised as having a skills gap. Key technical skills shortages were identified as
continuous improvement techniques, knowledge of polymer materials and health and
safety.
Similarly, the Skills Foresight for the Rubber Industry (2000) highlighted significant
skills gaps for engineering craft, engineering technician, process technician and plant
and machine operative categories. Communication was identified as a skills gap for
professional, plant and machine operative and sales categories. Willingness to learn
and change was highlighted as a skills gap for engineering craft, plant and machine
operatives and administration categories. Key rubber industry technical skills gaps
were identified as continuous improvement techniques, health and safety and
process troubleshooting.
2.1.8 Generic skills needs
A number of studies have highlighted the importance of generic skills and their
increasing importance to employers. Generic skill needs reflect changes in work
organisation and work practices, technological change and a general increase in the
expectations of employees. Primarily, the following generic skills are required:
Communication
Team working and getting on with others, including being able to work in self-
managed teams
Problem solving and diagnosis, and at professional levels, greater abilities for
forward thinking and „whole system‟ thinking
Taking responsibility, showing initiative and becoming more involved
Organisation and management (Ref 26)
Cogent is currently engaged with the SSDA group focused on Management and
Leadership, IT, Employability, and “Golden Threads”.
2.2 Skills supply and employer training
Within the sector, there is not merely a requirement for an increase in new entrants,
but for better quality recruits. Aspects of globalisation have increased the need for
continuous improvement and cost cutting leading to changes in structure. Thus, at all
levels there is a need for high calibre recruits with the right mix of technical and
key/core skills.
The sector uses frameworks such as Modern Apprenticeships as part of the initial
training of new entrants. This helps address issues such as the image and
attractiveness of the industry as well as addressing skill needs. Provision of suitably
skilled people into the industry is essential. The following section outlines the state of
provision of employer and publicly funded training.
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Cogent Market Assessment
The sector traditionally recruits from both further and higher education for specialist
jobs at three different levels.
Highly specialised research and technical staff for a wide range of pure applied
scientific and engineering roles. These people are likely to have degrees, higher
degrees and PhDs.
Generalists, usually graduates, requiring a level of scientific/technical
understanding and numeracy, that will allow the individuals concerned to operate
effectively in a technology-based environment.
Technicians with practical competence in the application of management of
science and technology, especially for manufacturing. These people are likely to
have HNCs / HNDs / Modern Apprenticeships. A typical MA will have the
equivalent of 5 GCSEs at grade C or above, including maths and science. Many
will have higher qualifications.
In addition, the sector also recruits graduates and technicians in other disciplines to
work in areas such as administration, accounting, marketing and Human Resources.
The NTOs‟ Skills Foresights and Workforce Development Plans show while numbers
of employees in the sectors continue to decline slightly overall, there is a continuing
need to recruit, train and develop employees at technician and associate professional
level as skill levels and needs are set to rise. This also means that the existing
workforce needs up-skilling to meet the demands of new technology and changing
work practices.
Vocational routes and learning frameworks such as Modern Apprenticeships,
Foundation Degrees and Graduate Apprenticeships, based on National Occupational
Standards, are key to producing appropriately developed people with the skills and
knowledge base that the industry needs, and have the ability to benefit mature
employees as well as those entering the workforce. They offer a chance to create
routes to higher level qualifications which compete on a level playing field with
traditional, academic routes.
There has been an upward trend in qualifications attainment of the workforce.
Employment by Highest Qualification
35
30
25
percentage
20
15
10
5
0
0 <NVQ2 NVQ2 NVQ3 NVQ4 NVQ5
Chemicals etc 1995 Chemicals 2001 Fuel 1995 Fuel 2001
(Ref 32)
(Note that the statistics cover greater employment base than the Cogent footprint).
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Cogent Market Assessment
Around 31% of 18 – 19 year olds now enter higher education as opposed to 15% in
1990. Therefore, there has been a shift from an elite system of higher education
provision, to a position where opportunities for higher education provision have
become more widely available and more extensively promoted.
This development has been mainly at the expense of technical and vocational routes
within further education. Declining provision has led to the closure of National and
Higher National courses which has had an effect on manufacturing industries.
Key groups in the workforce
Managers within the sector tend to be graduates, with professional qualifications. The
focus for Cogent is on the life-long learning agenda, maintaining managerial skills at
the leading edge.
Process supervisors and engineers are an important group, with a need for provision
of occupational standards as the focus for assured training and competence to
support passport schemes, offshore safety certificates, N/SVQs, HNC/Ds.
Technicians are seen as one of the main focuses of Cogent activity, in both
recruitment and retention. They form part of the career path for supervisors and
engineers.
Process operators form the largest group of employees in some of the Cogent
industries, and are also one of the groups showing a rapidly aging profile. As
technology impacts on processing skills, there is a need to ensure that process
operators are trained and retrained to maintain standards of competence in line with
the higher skills requirements. Cogent must maintain the currency of occupational
standards in a fast-moving environment.
Drivers and distribution staff, whilst not part of the Cogent footprint, are important to
the sector. The shortage of drivers is a major concern, as is the quality of training
delivery. These issues are being addressed in cooperation with Skills for Logistics,
the SSC for the freight logistics industry.
Retail activities tend to be carried out by staff who, in comparison to the rest of the
sector, are lower paid and also have a higher proportion of part-time working
arrangements. The introduction of basic training and occupational standards at
N/SVQ level 2 are seen to be essential in reducing staff turnover, and in ensuring
continued protection of health, safety, security and the environment. Any work in this
area will delivered in partnership with Skillsmart, the SSC for Retail.
Other support staff within the sector are served by standards and qualifications within
the remit of other current and prospective sector skills councils. However, they are
still integral to the businesses within the Cogent sector, therefore the role of Cogent
for this group is in the area of generic industry-based training and competence, such
as health, safety, security and environment, and in awareness of the products.
More than 90% of the businesses within the sector are SMEs and Cogent must rise to
the challenge in engaging and providing for their skills needs, at an acceptable cost.
In summary, the key groupings are: professional engineers and scientists,
technicians and process operators.
Areas of learning supply that need most to be enhanced in order to meet
employer’s needs
In Nuclear and radiological technology, employers tend to recruit generalist
engineers and scientists, with the specialist associated skills training being delivered
in-house. This has led to a low demand for specialist provision in higher education.
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Cogent Market Assessment
Consequently, there are few opportunities for undergraduates to experience nuclear
technology. This may have an adverse effect on recruitment. Post-graduate
qualifications also pose potential problems for those choosing a nuclear discipline –
to receive Chartered status within a professional engineering institute; a Masters is
seen as the required standard. Without post-graduate education, this would be
beyond their reach. Formalisation of in-house provision may potentially address these
issues, for example by matching the in-house provision with a modularised external
provision.
Within the UK, there are a large number of well-established polymer training and
education providers. These include Polymer Training Ltd which has recently sought
approval to be recognised as a Centre of Vocational Excellence, Burton College,
Manchester Metropolitan University, Wiltshire College and Bell College. Furthermore,
Rapra Technology is an independent research, technology and information provider
that specialises in rubber and plastics.
However, significant gaps are present within certain aspects of polymer training
especially in the provision of Further Education. The number of institutions offering a
BTEC NC in Polymer Technology, the recognised polymer specific Further Education
qualification, has fallen substantially. This has associated negative implications for
the future of the Polymer Processing Advanced Modern Apprenticeship in England,
Wales and Northern Ireland, as this is the compulsory technical certificate element
within the apprenticeship.
Higher Education institutions offer a large number of short courses. These tend to
have a high theoretical content, which is not always beneficial to sector employees.
The majority of Higher Education (HE) opportunities are centred at the master‟s level,
creating a resulting gap for those who wish to specialise in polymers at HE level direct
from leaving school.
In terms of occupational standards, the sector has developed and maintained an
extensive framework (Appendix 2), and is constantly seeking to promote their use
within the industries. An occupational and functional map for the newly formed sector
would be the recognised starting point to seeking gaps in provision, bearing in mind
that some parts of Cogent never had representation by an NTO. The wider sector
recognises that the there is also overlap in some of the standards currently in use,
and would seek to rationalise, to minimise the number of units and thus aid
transferability between industries. Known gaps are in the areas of management,
vapour recovery, drilling operations at higher levels, process engineering
maintenance and engineering maintenance and emergency response roles across
the sector.
For Modern Apprenticeships, a review and update will be required for Polymer
Processing, both the FMA and the MA in Scotland. This work is already underway
and will be completed soon in the case of Scotland. Promotion of MA frameworks
throughout the sector will also be continued.
Appendix 3 shows a listing of current sectoral engagement with the skills agenda.
Signpost
At the present time, Cogent is unable to provide data regarding the distribution of
qualifications and training by age, and occupation. Therefore, future work would need
to be undertaken to gather, collate and disseminate this information.
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Cogent Market Assessment
SECTION 3: THE PROPOSITION
3.1 A vision for the sector
The importance of the Cogent industries to the UK economy in terms of their direct
contribution to the Exchequer, their importance for the global competitiveness of the
UK economy and their contribution to other commercial sectors and the UK
infrastructure is significant.
Cogent‟s main aim is to co-ordinate and lead the drive to improve business
performance through skills development. Cogent will build on its experience as a
trailblazer, and will benefit from the fresh perspective brought by the polymer industry
and nuclear and radiological technology employers.
The new SSC will make a difference in many ways by:
LEADING the SECTOR on strategic pan-industry issues:
Providing accurate assessment of changing needs (e.g. globalisation,
demographic trends, new technologies)
Influencing Government through representation of employers‟ needs
Providing decision-makers with quality Labour Market information
Initiating pan-sector activities to attract new workforce into the industry
Adapting government requirements to business needs
Making a contribution to industry goals: sector wide business goals, due
diligence, reputation, influence on government, information for decision-making
ADVISING INDIVIDUAL EMPLOYEES by:
Providing quality information on vocational learning at all levels – from Operator
Trainee through to R&D scientists and the leaders of tomorrow
Helping develop transferable skills
Offering a wide range of qualifications and learning frameworks to support the
development of occupational competence
PARTNERING with INDIVIDUAL BUSINESSES to:
Provide innovative solutions that meet specific business problems
Respond appropriately to differences of size, technology and geography as they
impact on skills issues
Bring expertise into attracting people with the right skills, knowledge and
attributes to sustain and develop business
Providing value for money and customer satisfaction with solutions to skills issues
Make sure that we are effective in the speed of delivery of services and quality of
information
Enable companies to meet their compliance: with requirements, with standards,
with best practice, with targets
Share successful practice around skills contribution to innovation, value, learning
and development.
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Cogent Market Assessment
3.1.1 REDUCING SKILLS GAPS AND SKILLS SHORTAGES
The SSC Research and Guidance Team will provide solid and robust data, which
allows trends and patterns to be identified. This will then be translated into sound
decision making about priorities and resource allocation. Additionally this team co-
ordinates the all-important communication to stakeholders on current progress and
future challenges. A rigorous business model, managed by the Business Support
Team, will underpin all these activities.
The initial focus of Cogent will be
1. Working to improve the image of the sector, attracting more, and better
qualified entrants at all levels. This work will build on the successful
programmes initiated or supported by the predecessor organisations.
It is the aim of the “Industry Attractiveness and Careers Information, Advice and
Guidance” programme to address these issues. It will address the needs of the
identified target audience
Schools; Colleges; Universities; Careers Advisors; Teachers; Parents; Job
Changers
and will make information available through a variety of channels
Literature; Events; Presentations; Electronically
For schools,
“Whatever” magazine, currently issued throughout primary schools in North East
Scotland, and “Paraffin Young” stage show
The radio quiz for local schools, broadcast by NorthSound radio, covering North
East Scotland, recorded in various sponsor companies offices. The plan is to
expand this quiz to selected areas, where Cogent industries are clustered.
Education day at industry events, such as Offshore Europe, to bring school pupils
going into higher education into industry events.
Talking Jobs is part of the Continuing Education Gateway, funded by local
authorities and industry partners. It makes “job information and learning
opportunity information available to schools, colleges, universities, employers,
guidance agencies and the general public”.
(www.ceg.org.uk/talkingjobs/industry.htm)
Participation in events such as the “Engineering Road Show” visiting schools
and colleges in and around Lowestoft, Great Yarmouth and Norwich, “performing”
to over 3,000 pupils aged 14-15 years, and SkillCity, which took place in
Manchester in November 2002. The four-day event, organised by the Prince‟s
Trust and UK Skills, showcased vocational skills from across UK industry. It
attracted more than 80,000 visitors.
Schools careers conventions, events for teachers and careers adviser‟s general
promotional literature.
For mature entrants, job changers and current employees, the Oilcareers career
guidance portal provides information for people who want to work in the Oil and Gas
business but have never done so before. It provides information for people who are
currently employed in the business but want to get advice on how to improve or give
more direction to their career. The Cogent Evolvonline™ learning portal enables
individuals to access a world-class online learning library of sector-specific e-learning
materials. (See Appendix 4).
Cogent will work with many other organisations to achieve this aim, for example
SEMTA and ECITB, who both have close association with science and technology
based occupations.
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Cogent Market Assessment
2. Promotion of work-based routes, based on national occupational
standards and vocational qualifications, as valid alternatives to academic
routes into the sector.
The industries within Cogent have been very supportive of S/NVQs at lower levels,
but relatively few standards and qualifications have been developed at levels 4 and 5.
Cogent has already planned, based on employer feedback, to produce standards in
Drilling Operations at higher levels. Any other developments will be directed by the
completion of the occupational and functional mapping study. Work has also been
done in ascertaining the need for further development of foundation degrees in
England.
3. Working with employers at an individual or local level, promoting
access to appropriate learning and skills programmes.
Cogent will continue to build on the previous work of Cogent and the former Polymer
NTO, expanding to give greater coverage in key areas and across the five industries.
Examples of work already underway include:
Cogent, in partnership with ECITB, is undertaking a study to assess the skills
shortages within the Process and Design Engineering Sector in the North West
and establishing whether these gaps are addressed by the local education sector
and training providers‟ network. The study will also seek to identify new training
and skills development requirements and establish funding routes for both
existing and new training programmes. Cogent and ECITB will work with seven
process and design engineering companies and three oil/chemical companies
based in the North West, and will focus on providing tangible, short-term solutions
aimed at meeting the sector‟s immediate needs, including methods of attracting
young trainees and graduates into the industry.
Cogent has been invited by the DTI to join the Downstream Oil Industry Forum‟s
Rural Taskforce, set up in January to address specific issues raised by the
Forum. The Taskforce brings together representatives of trade associations,
government organisations and Cogent. At the first meeting, Cogent undertook to
work with the Petrol Retailers Association (PRA) and Garage Watch to review the
rural filling station skill sets and consider the skills pressures caused by business
survival and diversification.
The issue of English fluency among the retail petroleum workforce was initially
raised by Cogent in August 2002 with the publication of a Focus Paper
highlighting the issue for a large proportion of employees who speak English as a
second language employed in the forecourt retailing sector, where health and
safety is extremely important for staff and customers. A workshop for the industry
took place in October during which Cogent received a mandate to develop a
national programme, with appropriate partners, by the end of 2003.
Polymer NTO has recruited more than 50 member companies to its Employer
learning Networks. Following the setting up of its successful network in
Lincolnshire, Polymer NTO set up 5 new networks in various parts of the UK. As
a result, in partnership with a range of industry stakeholders and public sector
bodies, networks are now operational in Scotland, the North East, Hereford and
Worcester and in both the East and West Midlands. In setting up networks, it was
considered important to support the development of skills within the plastics,
rubber and sign making sectors that would improve industry competitiveness.
Network activities include the exchange of best practice relating to individual
learning programmes and the organisation of site visits to member companies.
In addition, workshops are organised for member companies relating to workforce
development, as well as supporting companies wishing to commit to the Investors
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Cogent Market Assessment
in People Standard, N/SVQs and Modern Apprenticeships. Cogent is
implementing a plan for sustainability of the Networks which includes an
interactive website and the opportunity for member companies to take advantage
of funding support from a variety of sources. The interactive website will reflect
the needs of those companies which have joined the initiative. Each network has
a partner, which is closely linked to the Polymer NTO. There are currently a total
of 12 partners and stakeholders offering support to member companies.
3.1.2 Productivity and performance
Cogent aspires to, in the medium term, work towards reducing the productivity gap
between the UK industries and their competitors.
This will be done by
Comparing performance within the sector in the UK and sharing best practice
Comparing performance with foreign counterparts and benchmarking
performance of the sector in the UK.
Seeking opportunities to work closely with other organisations with a similar
agenda, such as DTI, the Chemicals Innovation and Growth Team.
Working together with other SSCs, to share information and intelligence.
3.1.3 Skills opportunities for all
We will monitor the age, gender and ethnicity profiles of the sector in comparison to
the UK profiles particularly in areas which have already been highlighted as
significantly different from the norm.
We will continue to encourage diversity in line with both current and emerging
legislation.
We will adapt the training materials generated from the Broad Level Research Report
on the Gender Imbalance in the Oil and Gas Industry in Scotland, and extend the
learning to the other industries.
We will promote flexible learning opportunities through Evolvonline, providing all
employers including SMEs with access to cost-effective training and development
solutions. (See Appendix 4).
3.1.4 Learning supply
We will work to improve learning supply, through provision and promotion of
Relevant national occupational standards and associated vocational
qualifications, based on research of employer needs.
o In the short term, Cogent plans to undertake an occupational and functional
mapping of the sector, highlighting where there are gaps in provision, and
also where there are opportunities for harmonisation of standards and
qualifications.
o In the short to medium term, in consultation with employers and other
interested parties, develop new occupational standards where required.
o On a continuing basis, monitor the uptake and completion rates of N/SVQs,
to ensure their suitability for and relevance to sector needs.
Existing Modern Apprenticeship frameworks, plus any new frameworks deemed
necessary.
o continue to support and promote the apprenticeship frameworks developed
and formerly operated by Cogent and Polymer NTO.
o continue to support and promote the Technician Training Programme,
established by Cogent in partnership with ECITB, for the upstream oil and
gas industry.
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Cogent Market Assessment
o transfer the learning from this programme to other industries within Cogent,
where an interest from employers has been established.
Foundation degrees, as both an entry point to the sector and as part of the
development framework for existing employees where there is an established
employer demand.
An e-Learning Portal, to meet the recognised learning and skills needs of the
sector. (See Appendix 4).
Extension of e-learning materials available to provide coverage for the whole sector
will be undertaken.
Cogent will also work, in conjunction with other appropriate bodies and agencies, to
influence developments in training supply and standards for generic and shared skills
issues, such as the Management and Leadership Group led by SSDA.
Cogent will participate in advisory groups facilitated by the accrediting bodies for
subjects and areas of direct relevance to the sector.
In summary, Cogent will work to ensure the supply of suitably skilled
employees in line with industry needs.
3.2 Employer engagement
Cogent plans to extend the existing, successful, model of engaging with employers.
The current Cogent team is regionally based, to enable it to form close working links
with partners at a local level.
DELIVERING SOLUTIONS FOR EMPLOYERS
The new SSC will build on the capability that already exists in terms of coverage
across England, Scotland, Wales and Northern Ireland. This regional network works
directly with employers and their representatives. This responds to the diversity of
employers‟ needs according to their size, location and the technologies employed.
There is an understanding that there is not a “one size fits all solution” but that a
primary task lies in properly understanding not only the problem but also the context
and constraints that make up the reality of the operating environment.
Cogent will work with employer groups and other stakeholders and will seek
representative membership of newly formed groupings. Short-term working groups
will be convened for project-based opportunities, such as the development/revision of
occupational standards and qualification frameworks and mapping studies. These
groups will be drawn from appropriate employers in the industry concerned.
3.3 Engaging partners
UK-wide, Cogent will engage, and build on existing relationships with:
Industry bodies such as the Chemicals Leadership Council, the upstream
Industry Leadership Team, and other similar bodies from polymers, nuclear and
downstream.
DTI, on a UK-wide industry and regional basis.
Professional bodies, institutions and trade associations relevant to the sector.
Other SSCs, in particular those which share a common interest or boundary. As
part of the work undertaken during the “trailblazer” contract, Cogent is completing
an innovative project titled “Working in Partnership to Develop a Strategic Skills
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Cogent Market Assessment
Agenda”. The project aim is to develop partnership arrangements between SSCs
and other sector bodies whose activities impact upon the Cogent sector. Success
of the project will lead to:
o Agreed protocols in place between Cogent and other participant sector
groups
o Publication of a case study, supported with recommended best practice
examples.
Cogent will build on the already established working relationships with partners at
both national and regional level. The employer engagement team has primary
responsibility for engagement with RDAs and LSCs, and with other relevant locally
based bodies, such as Teesside Chemical Initiative, East of England Energy Group,
South Wales Oil Industry Learning (SWOIL), and Grangemouth Development Group.
Identified members of the Cogent team will also have responsibility for engaging UK-
wide bodies, such as the Chemicals Leadership Council.
In Scotland, the Scottish Executive and SSDA agreed and published a protocol,
requiring SSDA and SSCs to liaise closely with specific stakeholders in Scotland.
In order to address part of this, Cogent has joined with other Sector Skills Councils
and FutureSkillsScotland to form a Scottish Labour Market Information group. Other
stakeholders include the Scottish Qualifications Authority, SSDA, and the Scottish
Executive.
It is expected that a similar model will be put in place in Wales, allowing Cogent to
form close links to FutureSkillsWales and Education and Learning Wales (ELWa).
In the English Regions, the work carried out by the Cogent regional teams will
expand, to include bodies in the polymer industry currently linked to the Polymer NTO
network, and in nuclear and radiological technology.
In Northern Ireland, Cogent will work with the Department for Employment and
Learning, the Priority Skills Unit, UfI Northern Ireland and all other relevant partners,
to ensure that coverage adequate service is provided to employers in the Cogent
sector.
See Appendix 5 for a complete listing of current Cogent partnerships and interactions.
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Cogent Market Assessment
Appendix 1
SIC Codes included within the Cogent sector, either wholly or partially (Based on
SIC 2003 definitions)
11 Extraction of Crude Petroleum and Natural Gas; Service Activities
Incidental to Oil and Gas Extraction Excluding Surveying
11.10 Extraction of crude petroleum and natural gas
11.20 Service activities incidental to oil and gas extraction excluding surveying
23 Manufacture of Coke, Refined Petroleum Products and Nuclear Fuel
23.10 Manufacture of coke oven products
23.20 Manufacture of refined petroleum products
23.30 Processing of nuclear fuel
60 Land Transport; Transport Via Pipelines
60.30 Transport via pipelines
63? Supporting And Auxiliary Transport Activities; Activities Of Travel
Agencies
63.12 Storage and warehousing
24 Manufacture of Chemicals and Chemical Products
Manufacture of basic chemicals
24.11 Manufacture of industrial gases
24.12 Manufacture of dyes and pigments
24.13 Manufacture of other inorganic basic chemicals
24.14 Manufacture of other organic basic chemicals
24.15 Manufacture of fertilizers and nitrogen compounds
24.16 Manufacture of plastics in primary forms
24.17 Manufacture of synthetic rubber in primary forms
Manufacture of pesticides and other agro-chemical products
24.20 Manufacture of pesticides and other agro-chemical products
Manufacture of paints, varnishes and similar coatings, printing ink and
mastics
24.30 Manufacture of paints, varnishes and similar coatings, printing ink and
mastics
Manufacture of pharmaceuticals, medicinal chemicals and botanical
products
24.41 Manufacture of basic pharmaceutical products
24.42 Manufacture of pharmaceutical preparations
Manufacture of soap and detergents, cleaning and polishing preparations,
perfumes and toilet preparations
24.51 Manufacture of soap and detergents, cleaning and polishing reparations
24.52 Manufacture of perfumes and toilet preparations
Manufacture of other chemical products
24.61 Manufacture of explosives
24.62 Manufacture of glues and gelatine
24.63 Manufacture of essential oils
24.64 Manufacture photographic chemical material
24.65 Manufacture of prepared unrecorded media
24.66 Manufacture of other chemical products not elsewhere classified
Manufacture of man-made fibres
24.70 Manufacture of man-made fibres
25 Manufacture of Rubber and Plastic Products
Manufacture of rubber products
25.11 Manufacture of rubber tyres and tubes
25.12 Retreading and rebuilding of rubber tyres
25.13 Manufacture of other rubber products
Manufacture of plastic products
25.21 Manufacture of plastic plates, sheets, tubes and profiles
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Cogent Market Assessment
25.22 Manufacture of plastic packing goods
25.23 Manufacture of builders‟ ware of plastic
25.24 Manufacture of other plastic products
Sign Making (no defined code)
20 20.51 Manufacture of other products of wood
28 28.75 Manufacture of other fabricated metal products not elsewhere classified
45 45.25 Other construction work involving special trades
45.34 Other building installation
74 74.40/ Planning, creation and placement of advertising activities
2
Polymers form a crucial part of many other manufacturing operations, and, in some
cases, in-house polymer processing forms part of larger operations, as defined in the
following codes. There are also some specialist machinery manufacturers with direct
links to the industry:
17 17.54 Manufacture of other textiles not elsewhere classified
18 18.22 Manufacture of other outerwear
29 29.43 Manufacture of other machine tools not elsewhere classified
29.56 Manufacture of other special purpose machinery not elsewhere
classified
29.71 Manufacture of electric domestic appliances
30 30.01 Manufacture of office machinery
30.02 Manufacture of computers and other information processing
equipment
30.20 Manufacture of electricity distribution and control apparatus
31 31.50 Manufacture of lighting equipment and electric lamps
32 32.20 Manufacture of television and radio transmitters and apparatus for line
telephony and line telegraphy
32.30 Manufacture of television and radio receivers, sound or video
recording or reproducing apparatus and associated goods
33 33.10 Manufacture of medical and surgical equipment and orthopaedic
appliances
33.40 Manufacture of optical instruments and photographic equipment
33.50 Manufacture of watches and clocks
34 34.30 Manufacture of parts and accessories for motor vehicles and their
engines
35.11 Building and repairing of ships
35.12 Building and repairing of pleasure and sporting boats
35.50 Manufacture of other transport equipment not elsewhere classified
36 36.11 Manufacture of chairs and seats
36.14 Manufacture of other furniture
36.40 Manufacture of sports goods
36.50 Manufacture of games and toys
36.63 Other manufacturing not elsewhere classified
Sample footprint agreements are shown overleaf. Similar templates are being
prepared for all other footprint overlap areas.
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Cogent Market Assessment
MANAGEMENT OF BOUNDARIES BETWEEN SECTOR SKILLS
COUNCILS
1. Sector Skills Councils party to the agreement:
a) Cogent SSC Ltd
Minerva House
Bruntland Road
Portlethen
Aberdeen AB12 4QL
b) Skillfast-UK
Kingswood House
80 Richardshaw Lane
Leeds
West Yorkshire LS28 6BN
2. SIC Codes expressing area of common boundary
24.12: Manufacture of dyes and pigments
24.70: Manufacture of man-made fibres
3. Sector interest of SSCs
a) Cogent represents the skills base of the chemicals manufacturing industry.
b) Skillfast-UK represents the skills base of the apparel, footwear and textiles
industry.
4. Background
i. Dyes and pigments are manufactured for use in several industries, such as paper,
textiles and polymers. Some employers manufacture for all end users, whereas
others are highly specialized. For this reason, some of the manufacturers have a
natural link to the textiles industry in terms of innovation and future planning.
ii. Manufacture of man-made fibres, whilst being a chemical process, is closely related
to the manufacture of textiles. The processes involved may be a hybrid of skills from
chemicals manufacture and textiles manufacture.
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Cogent Market Assessment
5. Agreement
The parties noted at section 1
Agree that the lead SSC for developments concerning occupational standards for
chemicals manufacture will be Cogent SSC Ltd.
Agree that developments concerning occupational standards for dye and pigment
manufacture will lie with Cogent, but that because of the significant sectoral interest of
Skillfast-UK, the drivers for development and standards for manufacture of textiles
dyes and pigments, and the management of the process, may come from Skillfast
UK. Cogent will assist in any such developments, to ensure that duplication of
materials is avoided. Skillfast-UK will, if the occasion arises, assist Cogent in any
general standards development in this area, to ensure maximum inclusivity.
Agree that developments concerning occupational standards for man-made fibres will
lie with Skillfast-UK, and that Cogent will make available to Skillfast-UK any standards
and related information to assist in this process.
Agree that, at a strategic level, the interests of dye and pigment manufacturers will be
represented via Cogent and in the case of man-made fibres; Skillfast-UK will act at a
strategic level.
Agree that consultation on skills issues pertaining to these occupational areas will be
communicated by each SSC to the other party at the first opportunity.
Appended signature and date from all parties.
On behalf of Cogent SSC Ltd On behalf of Skillfast-UK
(Sign) (Sign)
(Print) (Print) Linda Florance
Date Date
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Cogent Market Assessment
MANAGEMENT OF BOUNDARIES BETWEEN SECTOR SKILLS
COUNCILS
1. Sector Skills Councils party to the agreement:
a) Cogent SSC Ltd
Minerva House
Bruntland Road
Portlethen
Aberdeen AB12 4QL
b) Skillsmart
nd
2 Floor
21 Dartmouth
London SW1H 9BP
2. SIC Codes expressing area of common boundary
50.50 Retail sale of automotive fuel
3. Sector interest of SSCs
a) Cogent represents the skills base of the oil & gas extraction, nuclear and
radiological technology, chemicals manufacturing, petroleum and polymer
industries.
c) Skillsmart represents the skills base of the retail industry.
4. Background
The sale of fuel on forecourts is carried out by three different types of employees, with a core
skills requirement focused on the health and safety issues related to receiving delivery of and
overseeing the sale of fuel. The working environments can differ, for example,
self-service, fuel only outlet
self-service, fuel plus retail outlet
self-service, retail plus fuel outlet (such as a supermarket)
vehicle service and maintenance premises, with self-service fuel outlet
attended outlet.
In each of these, the core function of responsibility for safe handling of automotive fuel
remains the same, as do the extensive health and safety requirements .
The occupational standards currently in use, “Forecourt Operations”, are maintained by
Cogent SSC, and contain units imported from the retail suite of qualifications maintained by
Skillsmart SSC.
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Cogent Market Assessment
5. Agreement
The parties noted at section 1
Agree that the lead SSC for developments concerning occupational standards for the
safe handing of automotive fuel will be Cogent SSC.
Agree that the lead SSC for developments concerning occupational standards for
retail activities associated with automotive fuel will continue to be Skillsmart.
Agree to co-operate in any future developments regarding skills issues associated
with the retail sale of automotive fuel. Cogent SSC will take the lead at a strategic
level.
Agree that consultation on skills issues pertaining to this occupational role will be
communicated by each SSC to the other two parties at the first opportunity.
Appended signature and date from all parties.
On behalf of Cogent SSC Ltd On behalf of Skillsmart
(Sign) (Sign)
(Print) (Print) Beverley Paddey
Date Date 20 October 2003
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Cogent Market Assessment
Appendix 2
National Occupational Standards currently controlled within the Cogent footprint are
shown in the table below, with an additional column showing the area of application of
the associated qualifications.
NATIONAL OCCUPATIONAL STANDARDS N/SVQ Levels Area
Process Engineering Maintenance 2, 3 CM
Process Manufacture: Chemicals 2, 3 CM
Process Operations: Chemical & Pharmaceutical 1, 2, 3 CM
Process Operations: Technical Support – Chemical & 3 CM
Pharmaceutical
Packaging Operations 1, 2 CM
Engineering Maintenance 2, 3 OG
Safety Services: Oil and Gas Extraction 2, 3 OG
Offshore Crane Operations 2 OG
Offshore Deck Operations 2 OG
Processing Operations: Hydrocarbons 1, 2, 3 OG
Process Operations: Hydrocarbons (Control Room) 3 OG
Well Services: Electric Logging (Open Hole Services) 2, 3 OG
Well Services: Electric Logging (Cased Hole 2, 3 OG
Services)
Well Services: Mechanical Wireline 2 OG
Well Services: Tubing Operations 2 OG
Offshore Drilling Operations 1, 2, 3 OG
Meter Proving 3 P,OG
Metering Maintenance 3 P,OG
Bulk Liquid Warehousing 2 P
Lubricants Plant Operation 2 P
Forecourt Operations 2 P
Oil-fired Technical Services 2, 3 P
Refinery Field Operations 3 P
Refinery Control Room Operations 3 P
Emergency Response Standards - offshore - OG
occupations
Polymer Processing and Related Operations* 1, 2, 3 Poly*
Signmaking 2, 3 Poly
CM = Chemicals manufacturing, OG = Oil & Gas, P = Petroleum, Poly = Polymers
*this qualification covers a wide variety of manufacturing activities within the polymer industry, namely:
Assemble Products Blow Moulding Blown Film
Compression Moulding Continuous Substrate Coating Decorating Flexographic
Decorating Offset on Rigid Plastics Decorating by Screen Printing Film Conversion
Expanded Polystyrene Moulding Direct Screw Transfer Moulding of Thermosets
Extrusion Profile and Sheet Finish Products (Plastics. GRG or Tyre Manufacture)
FRP (GRP) Laminating Hand Wet Lay Up FRP (GRP) Laminating Pre-impregnated Hand Lay Up
General Rubber Good : Assembly General Rubber Good : Preforming
General Rubber Good : Vulcanising General Rubber Good : Weighing and Mixing
Hand based Processing / Fabrication Handle and Pack Injection Moulding
Monitor and Assemble Goods Material Preparation
Material/Product Handling
Monitor and Pack Manufactured Goods Machine Based Processing (non listed processing)
Mount Moulds/Dies to Procedures Pack, Store & Maintain Stock Polymer Compounding
Prepare, Mix, Pack and Store Materials Rotational Moulding Recycle Waste Products
Tyre Manufacture : Components/Parts Thermoforming Retread Tyres
Tyre Manufacture : Assembly Sampling and Testing Materials/Products
Tyre Manufacture : Compounding Tyre Manufacture : Vulcanising
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Cogent Market Assessment
Appendix 3
Sectoral engagement with skills agenda
The “sector” as such does not currently exist in terms of an agenda – each component
industry is currently working separately.
Upstream Oil & Gas
PILOT takes a strategic view of the oil & gas industry and focuses on areas, which
fundamentally influence the sustainability of the UKCS.
The PILOT concept aims to unite the senior management of operators, contractors, suppliers,
unions and relevant Government Departments, thereby working to address the need to
reduce the cost base of activity in the UKCS. It also wishes "to create a climate for the UKCS
to retain its position as a pre-eminent active centre of oil and gas exploration and
development and production and to keep the UK contracting and supplies industry at the
leading edge in terms of overall competitiveness"
The Industry Leadership Team (ILT) consists of twenty-two representatives from operators,
contractors, suppliers and trade unions. PILOT receives regular feedback from the frequent
ILT meetings.
Cogent works closely with the Industry Leadership Team, to provide information and execute
actions related to skills.
The Department for Trade and Industry has an Oil and Gas Directorate, part of the DTI
Energy Group, providing information on licensing, decommissioning, infrastructure and
statistical analysis of the industry and surveys of future industry activity.
Local initiatives currently underway include a project funded by the NorthWest Development
Agency to establish skills initiatives for the Oil and Gas Process and design Engineering
Contractors and a project funded by Envirolink to determine skills shortages in the Energy
and associated industries based in the Northwest.
Nuclear
The Nuclear Industry Association is the trade association of the UK nuclear industry. It
represents over 80 companies involved in the industry. This includes the operators of the
nuclear power stations; those engaged in decommissioning, waste management and all
aspects of the nuclear fuel cycle; nuclear equipment suppliers; engineering and construction
firms; nuclear research organisations; and legal, financial and consultancy companies.
The objectives of the NIA include the promotion of the commercial performance of the UK
nuclear industry by assisting and supporting member companies to develop their businesses
in the UK and internationally.
The DTI Energy Group provides a source of general background information about the civil
nuclear industry in the UK, such as the regulatory framework, and the issues for which DTI is
responsible, in its role as an industry owner and supervisor, its regulatory activities and
aspects of international safety and technical assistance to the former Soviet Union and
Eastern European countries.
Local Initiatives include collaboration between Cogent and DTI to organise a workshop and
seminar on National Occupational Standards for nuclear employers.
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Cogent Market Assessment
Petroleum
There are several employer groups involved in skills initiatives and skills strategies, including
arrange of trade associations and regional groupings. These include:
UKPIA: UK Petroleum Industry Association
AUKOI: Association of UK Oil Independents
TSA: Tank Storage Association
FPS: Federation of Petroleum Suppliers
PRA: Petrol Retailers Association
Garage Watch (Retail)
BLF: British Lubricants Federation
OFTEC: Oil Fired Technical Association
BBA: British Bitumen Association
NIOF: Northern Ireland Oil Federation
NIODA: Northern Ireland Oil Distributors Association
PEIM: Petroleum Equipment Installers and Manufacturers
LPGA: Liquid Petroleum Gas Association
Many of these Associations have specific committees established to focus on skills issues.
Other initiatives include SWOIL (South Wales Oil Industry Learning). This group comprises
two refineries, a chemicals company, an oil storage company, two local colleges and a
various technical contractors based in West Wales.
The DTI Energy Group also provides information regarding downstream industry.
Polymers and Chemicals Manufacturing
Trade Associations for the industries include:
British Adhesive & Sealants Association
British Aerosol Manufacturers Association
British Association for Chemical Specialities
British Chemical Distributors & Trades Association
British Chemical Engineering Contractors Association
British Coatings Federation Ltd
British Colour Manufacturers‟ Association
British Compressed Gases Association
British Fragrance/Essence Manufacturers‟ Association
British Imaging & Photographic Association
British Plastics Federation
British Polyolefin Textiles Association
British Pyrotechnists Association
Chemical Industries Association
Composites Processing Association
Chemical Recycling
(The) Cosmetic Toiletry & Perfumery Association Ltd
Dyestuffs Sector Group
National Sulphuric Acid Association Ltd (affiliated to the CIA)
UK Cleaning Products Industry Association
The Society of Chemical Industry
Society of Dyers & Colourists
Solvent Industry Association (affiliated to the CIA)
Specialised Organic Chemicals Sector Association (part of CIA)
British Rubber Manufacturers Association
There are a number of skills initiatives for chemicals manufacturing and the polymer industry,
mostly operating at a local or regional level. These include:
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Cogent Market Assessment
Initiative Owner
Centre of Manufacturing Excellence and NWDA/industry/NW Universities
National Manufacturing Advisory Service
Centre of Excellence: Training Scottish Enterprise/
Forth Valley Enterprise
Centre for Organic Materials NWCI/NW Universities
PICME Process Industries Centre for Manufacturing CIA
Excellence
Manchester Materials Science Centre University of Manchester and UMIST
NICHE – National Innovation Centre for High Added CIA/SOCSA (feasibility study)
Value Chemicals
Polymer Centre at Manchester Metropolitan NWDA/MMU
University
Regional Centre of Manufacturing Excellence CIRCLE, Yorkshire Enterprise
Wilton Centre of Excellence for Polymer EPICC/One NorthEast
Technology
Entrepreneur programme for Chemists CIRCLE
Foundation degree Chemical Technology TCI/NE Universities
Universities at the Heart of Process Industry Cluster Teesside Chemical Initiative/EPICC
Skill requirement and demographics of key roles in NWCI/NW industry
NW Chemical Industry
Cluster study for Pharma and Specialities One NE
Cluster study to look at science base Yorkshire Forward
Science Base study TCI/One NE
Training on Industrial Catalysis processes Industry (Faraday)
Manufacturing Round Table EPICC
R&D Management Round Table EPICC
Suppliers Round Table EPICC (TCI Manufacturing Challenge)
Chemical Cluster Study Yorkshire Forward
Establishment of Regional Resources Centres for East Midlands Polymer Executive
polymer, sign manufacture, and composites Forum with Polymer NTO
Implementation of action plan emerging from Skills Scottish Plastics and Rubber
Survey conducted in 2002 Association Executive Forum with
Polymer NTO
Conduct a skills survey and develop action plans for North East Polymer Executive Forum
polymer sector with Polymer NTO
Conduct a skills survey and develop action plan for West Midlands Polymer Executive
polymer sector Forum with Polymer NTO
Extension of the “on-line” learning programme Polymer NTO
across Wales
Other regional groups engaged in the skills agenda include
The Polymers Employers Forum East Midlands
North East
Northern Ireland
Scotland
South West
West Midlands
The Chemicals ITO Network, comprising local employer groups from chemicals, refining,
pharmaceuticals and associated companies, facilitated by Cogent.
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Cogent Market Assessment
Appendix 4
has been developed by Cogent to meet the recognised
learning and skills needs of our sector. It is the only sector-specific online
learning service delivering e-learning and skills development advice to the
sector around the world.
Evolvonline™ adds a new dimension to traditional learning and development.
It enables individuals and companies of any size to access a world-class
online learning library of e-learning materials from quality assured publishers
and training providers via a safe, secure and user friendly web-based learning
management system. Evolvonline™ delivers a cost-effective, low risk solution
to the provision of e-learning.
Evolvonline™
Provides industry-informed advice and guidance on learning and skills
development
Provides access to specialist learning and educational materials
Provides a range of courses from basic skills to specific technical training
Securely records personal learning and educational achievements for
later use
Links learning and educational resources to occupational qualifications
and Cogent accreditation
Provides a single, cost effective training resource for individuals, SMEs
and corporations in the oil and gas extraction, chemicals manufacturing
and petroleum industries.
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Cogent Market Assessment
APPENDIX 5
WORKING IN PARTNERSHIP WITH STAKEHOLDERS AND PARTNERS IN
GOVERNMENT DEPARTMENTS, DEVOLVED ADMINISTRATIONS AND
REGIONS.
Given the UK-wide spread of the Cogent industries, it is essential to work in
partnership with key stakeholders in all the countries and regions of the UK including
those areas where the industries have not been defined as priorities.
Cogent‟s intent is to be the main point of reference for skills issues in the sector, in
any country or region. This will be achieved through:
The expertise and experience of the staff who will work in all areas of the UK
The organisational design of the company which will provide the internal
capability and external networks to extend reach and influence
The establishment of employer forums/networks in each country/region to
provide a responsive and coherent employer voice on industry issues
The provision of intelligence to inform policy and planning in the
country/region
Employer led workforce development planning
The provision of information and expertise on occupational standards and
qualifications relevant to the industries
The promotion of careers and qualifications in the industry through the
development of Modern Apprenticeship and Graduate Apprenticeship
Frameworks and foundation degrees
Products and services tailored to meet the needs of companies both large
and small to include vocational qualifications and learning packages
Support for the development of Centres of Vocational Excellence
Support for schools, colleges and institutions of higher education wishing to
develop their vocational curricula and work experience provision.
Cogent has already sought close working relationships with a wide variety of partner
organisations, and has built up a considerable network.
The extent of current partnership working and engagement is shown in the first two
following tables, at national level (where the partner organisation has a UK-wide
remit) and at a regional level (where the partner organisation has a remit within an
English region or within a devolved administration).
These lists are not exhaustive, but give an indication of the main areas of current
activity.
The third listing shows a range of achievements as a result of these, and similar,
partnerships.
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Cogent Market Assessment
1. NATIONAL
ORGANISATION COGENT ENGAGEMENT
Department for Trade & Industry Cogent has an established working relationship
with DTI in several areas, as a member of
initiatives and as a development partner.
Member – Downstream Oil Forum (DOIF)
Member – DOIF Rural Taskforce
Collaboration to organise workshop and seminar
on National Occupational Standards for nuclear
employers.
Regular meetings with national and regional DTI
representatives from DTI Energy Group, joint
initiative working.
Petrol Retail National Safety Member. This group influences the content of the
Group “safety passport” scheme for petrol retailers the
IOSH SPA Safety Passport (Petrol Retail)
Energy Saving Trust (EST) Cogent is a member of the SSC Group of the
EST, which was set up by the UK Government in
1992. Its goal is to achieve the sustainable and
efficient use of energy, to cut the carbon dioxide
emissions which are the key contributor to global
warming.
Working with a range of partners, EST focuses
on delivering practical solutions for households,
small firms and the road transport sector.
Stabilising, Refining and Employer Group
Manufacturing Sub Management
Group Facilitator also for the SR&M Competency
Group (SR&M)
and Safety Passport Working Group
Storage, Blending & Distribution Employer Group. Cogent is a member, assisting
Management Group employers in addressing skills issues.
Petrol Retailers Association Trade Association. Cogent is invited to attend the
regular meetings of the Association, to discuss
skills issues of member companies.
Oil Fired Technical Association Trade Association. Cogent is a member of the
Training and Registrations Group, and has
developed occupational standards for employees
United Kingdom Petroleum Trade Association, consisting of representation
Industry Association from all refineries.
Attendee - Retail Policy Working Group
Attendee - Refinery/HR Managers Group
Attendee – Transport Committee
Tank Storage Association Trade Association. Cogent is invited to attend the
regular meetings of the Association, to discuss
skills issues of member companies.
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Cogent Market Assessment
Downstream Training Providers Member
Network
Fuels Retail Advisory Group Member
British Lubricants Association Trade Association. Cogent is invited to attend the
regular meetings of the Association, to discuss
skills issues of member companies.
Petroleum Equipment Installers Trade Association. Cogent has recently been
and Manufacturers invited to attend meetings of this group.
Federation of Petroleum Trade Associations
Suppliers
Regular contact is maintained. Cogent is often
Petrol Retailers Association invited to attend meetings to Cogent is invited to
attend the regular meetings of the Associations,
Garage Watch (Retail)
to discuss skills issues of member companies.
United Kingdom Offshore Trade Association
Operators Association
Attendee - Employment & Practices Committee
Attendee - Operations & Technical Committee
Provide guidance on career development for
school leavers through to graduate level
Well Services Contractors Trade Association
Association
Host and member - Training & Competence
Group
Cogent provides LMI via sub-sector surveys.
Cogent provides occupational standards for
particular niche disciplines.
International Association of Trade Association
Drilling Contractors
Member - Training Working Party
Cogent provides LMI via sub-sector surveys.
Cogent provides occupational standards for
particular niche disciplines.
International Marine Contractors Trade Association. Cogent attends the COGS
Association group, responsible for careers and industry
attractiveness programmes.
Society of Underwater Trade Association. Cogent attends the COGS
Technology group, responsible for careers and industry
attractiveness programmes.
Training Providers Advisory This employer group was developed in the UK by
Group Cogent, and has now achieved international
recognition in the upstream oil and gas industry.
The International group and upstream group is
hosted by Cogent.
Investors in People Cogent was re-recognised in January 2001 as
continuing to meet the Investors in People
standard.
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Cogent Market Assessment
Offshore Contractors Association Trade Association.
Cogent invites OCA to contribute to the
technician review process, to ensure whole
industry coverage.
Institute of Petroleum Cogent attends the COGS group, responsible for
careers and industry attractiveness programmes.
Chemicals Leadership Council CLC was established as a direct result of the
DTI-sponsored Chemicals Innovation and Growth
Team, looking at the long-term strategy for the
chemicals industry in the UK.
Cogent is a member of the Skills and
Competences Strategy Group, and maintains
regular contact with the CLC.
British Association of Open Cogent is a member of BAOL, and offers the
Learning industry access to Petroleum Open Learning.
SSDA Cogent plays a full part in the Skills for Business
Network facilitated by SSDA, and attends
(wherever possible) the following:
Member - Intelligence Network
Member - Policy Network
Member - CEO Network
Member – Communications Network
Member – “Golden Threads” Network
Member - Technical Forum
OSCEng NTO Group Member of the “NTO” group, ensuring suitability
of generic engineering standards within the
Cogent footprint.
Technician Steering Group Cogent works in partnership with UKOOA, OCA,
DTI and ECITB, to ensure that the upstream Oil
and Gas Industry is offered coherent, whole-
industry training programmes for technicians.
This group is co-ordinated by Cogent.
PILOT PILOT takes a strategic view of the oil & gas
industry and focuses on areas, which
fundamentally influence the sustainability of the
UKCS. Cogent is associated with a range of
these through the ILT.
ILT – Industry Leadership Team The principal industry working group, consisting
of all major employers in upstream oil and gas
industry at Chief Executive level.
Cogent plays a key role in this group, as the focal
point for all skills issues.
Trade Partners UK (renamed Partnership on development of TrainUK website.
UK Trade & Investment in Nov
2003)
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Cogent Market Assessment
JobCentrePlus Work closely with, in area of careers in oil & gas.
Health & Safety Executive Cogent has close involvement with HSE,
especially in the area of health and safety for
offshore working.
Nuclear Employers Steering Member of recently established employer group,
Group looking at skills needs in the nuclear industry.
Nuclear Skills Project Member of recently established employer group,
Management Group looking at skills needs in the nuclear industry.
Nuclear Engineering Society Employer Group.
Cogent has been invited to present a Skills paper
at the December Forum.
Chemical Industry Training The CITO network consists of regional groups of
Organisations: North East, employers, mainly but not exclusively in the
Humberside, Teesside, Scotland chemicals industry. These groups have been in
place for many years.
Cogent is a member of all regional groups, and is
involved in various Initiatives. Cogent is in the
process of setting up groups where they do not
currently exist.
Cogent is helping to development of links
between the CITO network and the Chemical
Growth & Innovation Team‟s Skills Group.
2. REGIONAL
The North East based members of the EET have built close working
relationships with a range of employer and government partners, as active
members of
North East Energy Cluster Cluster Member, Skills Action Group Forum
Member
Skills Action Group Member
North East Pharmaceutical & About to become Cluster Member
Specialities Cluster
Careers Action Plan Group Member
North East Chemical Cluster High Level Engagement and about to jointly lead
Regional Skills Development Unit
Joint Working Protocol with P&S and Chemicals
Clusters nearing agreement
ONE RDA Cogent is a member of the FRESA Board, and is
involved in a range of skills initiatives.
North East Learning and Skills EET members meet regularly with the four LSC
Council Learning & Development staff to progress Sector
Plans
Tees Valley Strategic Area Review (StAR) SSC
representation involvement
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Cogent Market Assessment
DTI Oil and Gas Team Members of Regional Integration Group (NE
England)
Northern Offshore Federation The NOF is a Trade Association representing
member companies in the North of England
involved in the offshore oil and gas sector and
associated energy-related industries. The NOF
provides Business Support for its member
companies operating mainly in the Marine Oil &
Gas and Renewable Energy Sectors.
Cogent is a member of the Training Advisory
Group of NOF, offering guidance and support.
This group collaborates on input at a regional
level to groups such as the North East Chemical
Cluster.
Yorkshire & Humber LSCs Cogent acts with Humber Chemicals Focus as
Joint Brokers For Chemicals Issues in the LSC
areas.
European Process Industries EPICC is an industry led centre of excellence set
Competitiveness Centre up to improve manufacturing performance in the
process industries through the successful
exploitation of knowledge and expertise within
industry and academe. Primary customers are
the chemical, pharmaceutical, food & drink,
materials and utilities industries.
Cogent is a member of the Business
improvement Through People (BITP) Forum.
North East Regional Assembly Skills & Training Panel Contributors.
Chartered Institute of Personnel NE Executive Involvement (via personal
& Development membership).
Active CIPD membership is held by several staff.
The EET members in the North West, South West and Wales
SWOIL - South Wales Oil Member: this group comprises two refineries, a
Industry Learning chemicals company, an oil storage company,
two local colleges and a various technical
contractors based in West Wales. Cogent has
developed a partnership approach to
undertaking careers promotion activity in the
region.
ELWa Cogent is a member of the SSC Network group,
attending regular meetings to share information
on SSC current and planned activities in Wales,
and best practice. The group aims to focus on
an influencing policy role by developing priorities
identified in the Skills and Employment Action
Plan 2 (under development).
Cogent has received project funding to establish
the provision of Local Modern Apprenticeships in
North Wales.
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Cogent Market Assessment
Future Skills Wales Skills / ELWa Cogent is a member of this group, attending
Labour Market Information regular meetings to share best practice and to
Network harmonise, where appropriate, research collation
and reporting methodologies. Submitted input to
the recent Sectoral Assessment process for
ELWa.
Enviroskills On Steering Group - funded by SWRDA, its brief
is to address skills development in the
Environmental Technology sector.
Northwest CBI Conference Presented a paper on Skills challenges in the
North West
North West regions Chemicals Member
Cluster Alliance
Northwest SSC Forum Member
Cheshire and Warrington LSC Member
Alliance for Skills Project Group
North West SBS/LSC Project Member
management Group
NWDA Project funded to establish skills initiatives for the
Oil and Gas Process and design Engineering
Contractors
Envirolink Project funded to determine skills shortages in
the Energy and associated industries based in
the Northwest
EET Members in East and South
CATCH Competency On Buildings, Finance and Training Sub
Assessment & Training Centre Committees
Humberside
East of England Energy Group Cogent has developed a close working
relationship with EEGR through partnership on
projects such as “Skillneeds” and TrainUK, and
is presenting a paper on Future Skills in the
Cogent sector at EEGR conference in November
Education Business Link with Member
Business (Grimsby)
Lincolnshire Learning & Skills Basic Skills Group; Polymers Group
Council
Basic Skills Working Group – Member
Petrol Retail
The London Sector Skills Forum Member
DfES Member – ETP Stakeholder Group
EET for Scotland and Northern Ireland
Scottish Qualifications Authority Member, advising on qualifications at all levels,
Process Advisory Group including further education and vocational
education.
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Cogent Market Assessment
Scottish Executive Cogent has established communication links
with various Scottish Executive departments,
such as FutureSkills Scotland and Enterprise
and Lifelong Learning Department.
It is planned to build on these initial links to
explore, amongst other things, implementation of
Business Learning Accounts. Regular meetings
have already been held to establish the
framework.
Highlands & Islands Enterprise Regular meetings are held. Subjects under
review include
the association of H & I with oil and gas
industry
Decommissioning of Dounreay nuclear
facility.
Introduction of rural filling stations
initiative.
Scottish Enterprise Regular meetings are held. Subjects under
review include
Introduction of rural filling stations
initiative.
Modern Apprenticeship programmes.
Scottish Enterprise Grampian Regular meetings are held. Subjects under
review include
Manpower reviews for Upstream Oil &
Gas
Scottish Health at Work Scheme Member – currently hold Bronze Award, working
towards Silver. Aims to maintain and improve the
health of employees through a range of
initiatives
NIOF Northern Ireland Oil Have met with and discussed skills issues
Federation regarding forecourts and especially storage and
distribution, given the differences between the
NIODA Northern Ireland Oil
supply chain in Northern Ireland, and that of the
Distributors Association
mainland UK.
Future Skills Scotland/SSAScot Cogent is a member, attending regular meetings
Labour Market Information and to share best practice and to harmonise, where
Intelligence Group appropriate, research collation and reporting
methodologies.
Specific activities from this group include:
working together to produce sectoral reports
based upon FSS research of 2002 and inputting
to the searchable database for research
material. The SLMG are in the process of
finalising their future work plan which includes
approaching the Scottish Executive to join the
group to ensure the link to evidence based
policy.
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Cogent Market Assessment
Scottish Council for Development Member of the Council -The Scottish Council for
and Industry Development and Industry is an independent
membership network which strengthens
Scotland's competitiveness by influencing
Government policies to encourage sustainable
economic prosperity.
Polymer Team
(will form part of the new Cogent)
Polymer Executive Forum: East Cogent (currently Polymer NTO) is member and
Midlands facilitator of the forum, which is chaired by a
leading employer. The group comprises senior
employers and senior staff from East Midlands
Development Agency, and LSC Lincolnshire &
Rutland.
Polymer Executive Forum: West Cogent (currently Polymer NTO) is member and
Midlands facilitator of the forum, which is chaired by a
leading employer. The group comprises senior
employers and senior staff from Advantage West
Midlands and LSCs)
Polymer Executive Forum: North Cogent (currently Polymer NTO) is member and
East facilitator of the forum, which is chaired by a
leading employer. The group comprises senior
employers and senior staff from One North East
and LSCs.
Polymer Executive Forum: Cogent (currently Polymer NTO) is member and
Scotland facilitator of the forum, which is chaired by a
leading employer. The group comprises senior
employers and senior staff from the Scottish
Enterprise, members of the Scottish Plastics &
Rubber Association [a representative body,
chaired by a senior employer] and Universities.
Northern Ireland Polymers Cogent (formerly Polymer NTO) has worked with
Association (NIPA) the Training & Employment Agency and NIPA on
the development of a foresight study.
3. WHAT HAS ALREADY BEEN ACHIEVED?
Examples of achievements in the Cogent sector industries include:
Evolvonline™
Evolvonline™ is a unique, sector-specific e-portal. It will feature the
sector‟s largest library of web-based learning materials and courses,
specifically compiled to enhance skills development in its sector.
The Evolvonline™ portal will provide a single, cost-effective training
resource for individuals, SMEs and corporations in the oil and gas
extraction, chemicals manufacturing and petroleum industries.
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Cogent Market Assessment
Polymer on-line learning
Injection Moulding Technology Training, named “Online Product of the
Year” by WOLCE.
Rural Filling Stations Initiative
Cogent has completed a study establishing a skills profile for business at
rural filling stations, in partnership with the Petrol Retailers Association
and Garage Watch. A report was presented to the DTI‟s Rural Taskforce
in May 2003.
The overall objective of this initiative is to develop specific training
programmes and funding mechanisms in the medium term to support the
viability of rural operations.
Talking Jobs
Talking Jobs is an innovative online career information service aiming to
stimulate young people‟s interest in the wide and diverse range of jobs
and career opportunities in the oil and gas industry.
More than a simple internet database of careers in the sector, “Talking
Jobs”, which can be accessed at www.ceg.org.uk, brings to life the real
nature of the jobs available to young people through interviews with those
who actually do them in their own working environment.
The website profiles 30 young people from 16 participating organisations,
ranging from offshore operators to drilling, catering and well services
companies.
It also links with careers education resources and industry-specific links to
create an extensive bank of information not only on jobs within the
industry, but also on learning opportunities and related issues.
Vantage
Vantage POB is the new centralised personnel on board (POB) tracking
system which has been developed during 2002 for most of the oil and gas
companies operating in the UKCS.
The system has been developed via a pioneering LOGIC managed
collaboration project involving operator, training, helicopter and
information technology organisations. Following implementation, LOGIC
will manage the new service which will be delivered via an SLA supported
Application Service Provider model.
Implementation started in Q4 2002, completed Q2 2003.
Vantage POB also incorporates the existing Vantage OP (Offshore
Passport) data, thereby delivering the functionality of two systems via one.
Oil and Gas MA Programme
The Modern Apprenticeship programme for the upstream oil and gas
industry was launched in 1999.
In summer 2003, the first 12 trainees to enrol in the Oil and Gas Modern
Apprenticeship programme completed the course and joined the sector‟s
workforce as fully skilled professionals. Ten have been following the
Processing Operations programme and two were enrolled in the
Engineering Maintenance programme.
The most significant development since the programme‟s inception has
been the harmonisation of the Cogent and ECITB training schemes in
which both organisations have developed a common syllabus for the MA,
with the two industry employer bodies (UKOOA and OCA) agreeing
identical terms and conditions.
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Cogent Market Assessment
Development of occupational standards
As listed in Appendix to Market Assessment.
North Wales MA Programme
The Education and Learning in Wales agency (ELWa) has commissioned
Cogent to undertake a study identifying the demand profile for a Modern
Apprenticeship course for the offshore and chemicals sectors in North
Wales.
Cumbria Chemicals Companies Cluster
Cogent is working closely with the Cumbria Learning and Skills Council
(LSC) to bring together a cluster of companies associated with chemicals
manufacturing within the local region.
The purpose of the cluster is to identify common skills and training
development issues and address these with local collaborative initiatives
supported by partner training providers.
Developing People
An Industry Advisory Group (IAG) has been formed by Cogent to look at
e-learning and other topics relating to petroleum retail, such as standard
courses in fire fighting, Health and Safety on the forecourt, substance
abuse and first aid.
This project, one of the first undertaken by the IAG, aims to create a
generic version of BP‟s “Developing People” e-learning programme, which
the oil company agreed to make available to the rest of the retail forecourt
industry via the Cogent portal Evolvonline™.
The programme, which will be rolled out as two packages, Sales Assistant
Induction and Competent Person, provides high quality online training
combined with offline practical exercises and provides both the learner
and the employer with a detailed analysis of the learning experience. On
successful completion of the course, the learners will gain a Cogent
certificate detailing their achievement.
Forecourt Operations NVQ Pilot Programme
A pilot programme for the introduction of a Forecourt and Retail
Operations NVQ has been launched to help employees achieve their
potential at minimal cost to employers, from large players to independent
outlets.
DTI/NWDA Process Engineering Initiative
Cogent has been commissioned by the Department of Trade and Industry
(DTI) and North West Development Agency (NWDA) to undertake a
study, assessing the skills shortages within the Process and Design
Engineering Sector in the North West, and establishing whether these
gaps are addressed by the local education sector and training providers‟
network.
The study will also seek to identify new training and skills development
requirements and establish funding routes for both existing and new
training programmes.
The study will focus on providing tangible, short-term solutions (within five
years) aimed at meeting the sector‟s immediate needs.
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Cogent Market Assessment
ESOL Initiative
Cogent is working in partnership with relevant agencies on an initiative to
develop English for Speakers of Other Languages (ESOL) in the
downstream petroleum industry.
Chemicals Companies Competence Assurance Services
Cogent has been invited to deliver competence assurance services for
chemicals companies Polimeri Europa and for Rhodia Pharma Solutions.
This work will involve advising these companies on the development of
standards of competence, implementing them through robust assessment
and verification, and embedding them as part of their business.
The initial focus of these projects will be on process operations and
maintenance, of which Cogent has good experience.
The objectives in both cases are to help the companies meet the
requirements of their regulators and to add value to their existing systems
for managing and developing their human resources.
Polymer Processing MA Framework
The Apprenticeships Approvals Group (AAG) has approved a framework
for a Foundation and Advanced Modern Apprenticeship for the Polymer
Industry, submitted by Polymer NTO.
MAIG has approved the framework for a Modern Apprenticeship for the
Polymer Industry, submitted by Polymer NTO.
Signmaking MA Framework
The Apprenticeships Approvals Group (AAG) has approved a framework
for a Foundation and Advanced Modern Apprenticeship for the
Signmaking Industry, submitted by Polymer NTO.
MAIG has approved the framework for a Modern Apprenticeship for the
Signmaking Industry, submitted by Polymer NTO.
Chemicals and Downstream MA Framework
The Apprenticeships Approvals Group (AAG) has approved a new
framework for a Foundation and Advanced Modern Apprenticeship for the
Chemical, Pharmaceutical, Petrochemical Manufacturing and Refining
industries, submitted by Cogent after review, with industry support, of the
former version.
MAIG has approved the framework for a Modern Apprenticeship for the
Chemical, Pharmaceutical, Petrochemical Manufacturing and Refining
industries, submitted by Cogent after review, with industry support, of the
former version.
MA Programme for Engineering in South Wales
A Modern Apprenticeship Programme for Engineering in South Wales has
been set up by the South Wales Oil Industry and Learning network
(SPOIL).
The South Wales Oil Industry Learning network (SWOIL) has reached a
milestone with the approval of a bursary scheme between TotalFinaElf
and Texaco to fund a Modern Apprenticeship programme in general
engineering.
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Cogent Market Assessment
Chemicals Innovation and Growth Team
The Chemicals Innovation and Growth Team was set up in January 2002
to address the key challenges facing the UK chemicals industry through a
new strategic dialogue involving the industry and its stakeholders.
The objective of the CIGT was to develop a roadmap for the industry‟s
future development to ensure that it can remain a valuable part of the UK
economy and can flourish.
Enviroskills project
Cogent has worked with the South West Regional Development Agency
(RDA) on an Enviroskills project to promote environmental skills.
Technician Training Charter
The UK offshore oil and gas industry and its two main training
organisations, Cogent and the Engineering Construction Industry Training
Board (ECITB), have signed up to a Charter that will deliver a multi-million
pound training scheme aimed at attracting young technicians and
sustaining the skills requirements of the Industry.
The Upstream Oil and Gas Technician Training Scheme involves 18-24
months of practical learning and further education in electrical, mechanical
and instrument core disciplines, followed by around two years of on-the-
job training. Opportunities to specialise further in well services and
process operations are also available.
E-BOSIET and Employing Companies Induction CDs
Two CDs - E-BOSIET and “Employing Company Induction” - have been
produced to transform the way new workers can gain competence in the
required Health and Safety Executive (HSE) legislation and good
practices before they go offshore.
Young Engineers Clubs
Young Engineers Clubs, sponsored by the Scottish Council for
Development and Industry (SCDI), have been set up within schools in
Scotland to stimulate young people‟s interests in technology.
Cogent and the DTI first met the schools as part of the Orkney and
Shetland science festivals in September and November 2002. Through
presentations, secondary school pupils were given an insight into the oil
and gas sector and details of a wide range of career opportunities within
this exciting industry.
However, to further capture the pupils‟ interest in engineering and
technology innovation, Cogent and DTI set the schools a challenge: each
school was given a robot kit, from which they were to design and build a
working model of a remote vehicle for the oil and gas industry that would
collect rock samples from the seabed with ping-pong balls being used in
place of rocks. Pierowall and Stromness schools completed this task
successfully and were rewarded with the trip to Hampden.
Cogent and the DTI enabled pupils and teachers from the Pierowall Junior
High Schools on the Scottish Island of Westray and from the Stromness
Academy on Orkney to fly to Hampden, Glasgow, on 20th June 2003 to
take part in the 2003 SCDI and Young Engineers Clubs Showcase and
Technology challenge.
This annual event saw 19 local companies set challenges for the
youngsters and provided a great opportunity for Young Engineers Clubs
within 30 Scottish schools to show their technology talents.
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Cogent Market Assessment
Polymer Executive Forum East Midlands
The recognition of the polymer sector as a key sector in the region
(originally not highlighted by the RDA or a number of the LSCs within the
regions).
Funding to support a survey of specific industry needs within the region
(£15k).
Funding to support the existing workforce to develop Basic Skills (£7k).
Funding to establish the current provision of vocational training and
education within the region (£30k).
Group application to secure £1.1m of capital funding for the provision of
technically relevant equipment for the rubber, plastics and sign making
sector, in support of education and training.
Polymer Executive Forum West Midlands
Funding for £1.2m of capital equipment for vocational training and new
business start up units to assist companies to diversify into new product
areas.
Funding to provide companies with free technical and process
optimisation audits (£50k).
Continuous funding for companies affected by the Rover situation and
operating within the M54 corridor (£300k).
Northern Ireland Polymers Association
The Northern Ireland Polymers Association (NIPA) [comprising approx 60
companies] has been working with the Polymer NTO and the Training &
Employment Agency. As a direct result a skill foresight study has been
undertaken and a sector Workforce Development plan has been prepared
for Northern Ireland. An executive forum is to be set up via the steering
group to address the priority actions within the SWDP.
Polymer Executive Forum Scotland
Funding to identify specific sector needs in the country (£20k).
Support for an application to secure a multi-million pound investment to
establish a Centre of Excellence for Polymer Composite Research and
Development.
Improving Competence in Literacy and Numeracy
The Polymer NTO ran a pilot, funded through the East Midlands
Development Agency, to help employees in the industry to improve their
competence in literacy, numeracy and language.
Working In conjunction with West Nottinghamshire College and Boston
College, Cogent (formerly Polymer NTO) is continuing to develop training
packages.
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Cogent Market Assessment
SOURCES Appendix 6
1 DTI, Nuclear and Radiological Skills Survey Report of the Nuclear skills Group, 2002
2 CMPNTO, Chemical Industry‟s Employment and Training Survey, 2001
3 OPITO Skills Foresight Report, March 2000
4 DTI, Production Operations and Maintenance Technician Survey, 2002
5 PINTO, Foresight on Skills, 2002
6 Polymer NTO, Skills Foresight Signmaking, 2002
7 Polymer NTO, Workforce Development Plan for the Rubber Industry 2002 – 2004
8 Polymer NTO, Workforce Development Plan for the Plastics Industry 2002 – 2004
9 CMPNTO, Sector Workforce Development Plan 2002
10 The United Kingdom Petroleum Industry Association (UKPIA) www.ukpia.org.uk
11 The Nuclear Industry Association http//www.nia.org
12 DfES, Process Industries Skills Dialogue, 2002
13 DTI, Business Clusters in the UK: A First Assessment, February 2002
14 NTP Scotland, Broad Level Research Report on Gender Imbalance in the Oil and
Gas industry in Scotland
15 Polymer NTO, Polymer Industry Sector Targets „Consultation Document‟
16 UKOOA, Economic Report “Competing in a Global Economy”, 2002
17 Oil and Gas Industry Task Force Report, A Template for change, September 1999,
Innovation and Technology Workgroup Report, P. 18
18 CIGT, „Enhancing the Competitiveness and Sustainability of the UK Chemicals
Industry‟, December 2002.
19 Institute of Petroleum, Retail Marketing Survey, 2003
20 UKOOA, Environmental Report 2002
21 British Nuclear Fuels www.bnfl.com
22 UKOOA, Energy Breakfast, presentation by Sir John Wood, Wood Group plc
23 DTI, Competitiveness Analysis of the UK Rubber and Flexible Foam Industries,
September 2001
24 Department of Transport, Powering Future Vehicles Strategy
25 DTI, Managing the Nuclear Legacy – a Strategy for Action, July 2002
26 Skills Dialogue: Listening to Employers – An Assessment of Skill Needs in
Engineering
27 Polymer National Training Organisation polymernto.og.uk
28 Office of National Statistics, Trends in Female Employment, Melanie Duffield, 2002
29 Employers Skill Survey, Hillage et al, 2002
30 Britain‟s Relative Productivity Performance: Updates to 1999 – Final Report to DTI/
ONS, Mary O‟ Mahony and Willem de Boer
31 United Kingdom Petroleum Industry Association
32 DfES Statistics
33 Draft Nuclear Sites and Radioactive Substances Bill
34 British Rubber Manufacturers Association www.brma.co.uk
35 The Official Yearbook of the United Kingdom and Northern Ireland, 2003
36 British Plastics Federation www.bpf.co.uk
37 White Paper; Our Energy Future: Creating a Low Carbon Economy, 2003
38 Energy Sector Indicators, Department of Trade and Industry, March 2003
39 The Global Nuclear Fuel Market Supply and Demand 2001-2020: World Nuclear
Association Annual Symposium 2001
40 Energy Trends, Department of Trade and Industry, March 2003
41 BP Statistical Review of World Energy, 2001
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