Early start (March 2014)

06 May, 2014

The rationale behind apprenticeship schemes makes sound sense from so many different vantage points. On the one hand, it’s good for companies who want to ensure they have the right skill sets executed, in part, by a young, highly motivated and enthusiastic workforce, and to nurture this new talent early on in order to ensure as best as possible that the individual concerned will feel a valued part of the business, become attached to its business values and ethos of employee support and therefore want to stay around for the long haul. Apprenticeships are also good for the UK economy in general. After all, with an increasing need for stronger engineering skills to bolster UK manufacturing and engineering both at home and in terms of business ventures oversees, the need for an enthused young workforce is the only sure way of boosting our reputation for engineering excellence globally over the longer term. This journal has often written in encouraging terms about the value of apprenticeships in the world of engineering, even when it sometimes felt a little as if we were swimming upstream. However, some very positive news comes in the form of an announcement by the Institution of Engineering and Technology (IET) that more than double the number of young people are now choosing engineering apprenticeships as degree courses. Figures from the Skills Funding Agency show that in 2012/13, 66,410 young people started an apprenticeship in engineering and manufacturing technologies, more than double the 27,155 young people accepted onto engineering higher education courses in 2013, according to UCAS figures. Overall, in 2012/13, there were 510,200 apprenticeship starts compared to 495,595 accepted places for degree courses in 2013. Nigel Whitehead, BAE Systems’ group managing director, programmes & support, has recently commented that apprenticeship programmes create a pipeline of exceptionally talented young engineers. “In tough economic times it is even more important that businesses plan for the long term and continue to invest in skills and developing talent in the workplace,” he remarked. More good news comes from the EEF, the manufacturers’ organisation, which points out that UK manufacturing and engineering companies are becoming more dependent on recruitment through apprenticeships to bring young, fresh talent into the sector. The EEF has found that six in ten UK manufacturers have taken on an engineering and manufacturing apprentice in the past 12 months or so. Looking ahead to the next 12 months, the picture is even more encouraging, with over two thirds of manufacturers planning to recruit engineering and manufacturing apprentices into their companies. These findings support previous research conducted by EEF, which showed a growing need within the sector for R&D, design, technical, project management and technician skills. This is primarily due to manufacturers’ strategic outlook to develop new markets, launch new products and new services, and introduce new processes – all of which can only be done with the right workforce. With three-quarters of manufacturers saying they generally recruit apprentices aged between 16 and 18, companies are clearly seeing apprenticeships as a way to boost the pipeline of talent into the industry. These latest research findings marked the start of National Apprenticeship Week, which took place between 3 and 7 March. Now in its seventh year, the week is all about raising the profile of the importance of apprenticeships to the UK economy. Statistics from The Data Service further highlight the importance of apprenticeships within the manufacturing sector, with 66,410 young people beginning an Engineering and Manufacturing Technologies Apprenticeship in 2012/13. This represents 13 per cent of all apprenticeships starts. It’s a delight to report such highly encouraging news and these latest findings bode very well for the continued economic wellbeing both of UK Plc in general as well as the manufacturing and engineering industry’s continuing growth and development. Long may this healthy trend continue.

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Something in the air (April 2014)

29 April, 2014

There seems to be an almost palpable feeling of optimism within business and industry at the moment. Speaking with visitors and exhibitors at DFA Media’s co-located exhibitions Fluid Power & Systems, Air-Tech, Drives & Controls, Plant and Asset Management and European Offshore & Energy at Birmingham’s NEC earlier this month, this buoyant mood certainly came to the fore. Indeed, it was the organiser’s most successful event yet, with an official attendance figure of 12,793. This was an increase of nearly 15 per cent on 2012 (for a more detailed review of Fluid Power & Systems and Air-Tech 2014, see pages 38 to 46 in this issue). Recruitment specialist Reed has similarly good tidings to share. Increasing job opportunities and job security, combined with an optimistic outlook for the economy, is giving more than a third (37 per cent) of engineers the confidence to search for new jobs, it claims. The new Reed Engineering Salary Guide and Market Insight 2014 and Market Insight Report 2014 canvassed the attitudes of around 2500 workers and employers working in a variety of industry sectors and job levels. It found a largely happy workforce, with eight out of ten (87 per cent) workers in engineering firms feeling secure or very secure in their roles, up 13 per cent on 2012, with nearly seven in 10 (69 per cent) satisfied in their current role. However, with more than a third of workers expected to be looking for a new role within a year, two thirds (62 per cent) of employers are concerned about losing talented individuals from their organisation in this candidate-driven market. The research also highlighted a shortage of skills in the engineering sector, with more than a third (38 per cent) of engineering firms saying they have a skills gap in their organisation and 89 per cent saying this gap is having a negative impact on their business. To resolve this, 46 per cent of engineering firms are investing in training, and 50 per cent are promoting internally. Mark Blay, UK senior divisional director at Reed Engineering, made the point that UK industry has enjoyed a strong start to the year, with CBI figures showing the fastest rate of growth in new orders since 2011. “We’re seeing a burgeoning pipeline of job opportunities across all areas of industry, with predictions showing that between now and 2020, UK industry will need 830,000 new Science, Engineering and Technology (SET) Professionals and 450,000 new SET Technicians,” he remarked. Blay added that Reed is finding there is a shortage of qualified candidates in the engineering sector, and across all areas of industry there is evidence that demand for graduate engineers is outstripping supply. “With this shortfall of skilled candidates, most employers will have to take a close look at how they present themselves to the labour market to make sure they stand out and so the jobseeker chooses them,” he said. The Reed Engineering Salary Guide and Market Insight 2014 and Market Insight 2014 report can be obtained by visiting www.reedglobal.com This research was compiled using the results of the Reed 2014 Salary and Market Insight and Talent Management reports, conducted with a representative sample of 2500 employers and employees, as well as data from reed.co.uk’s monthly Job Index. When more positive economic days arrive it becomes apparent just how critical it is to encourage training and education at all levels within the engineering sphere, as well as in all others. In this regard it’s encouraging to know that almost half of engineering firms are investing in training, and half are actively promoting personnel with their organisation; which can only be good for staff morale. When qualified people are hard to come by in more bullish times many companies risk finding it a challenge to achieve their true business potential, and this naturally can have a negative knock-on effect for UK Plc. Let’s all continue to fly the flag for training and education wherever opportunities arise.

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