Regional Priorities Statement – Northwest England This statement synthesises the priorities for sectors, spatial targeting and targeting by employer and learner types. It sets out overall priorities for North West of England for the year 2010/11 and is set in the context of the draft Northwest Integrated Regional Strategy (RS2010). This document will inform discussions on skills between the Skills Funding Agency and its provider base and highlights where skills development is essential to take the Northwest forward. The Northwest has a working age population of 4.2m, delivers £120bn of GDP and has internationally competitive sectors of nuclear, advanced manufacturing / engineering, biomedical, digital, and creative & media. Historical Trends The LSC past focus has been on low to medium level skills for apprentices and those in employment. Future projections suggest the demand will be for intermediate and higher level skills. The regions challenges are;. Too few people are in employment and as a result, the region suffers from high levels of worklessness often next to areas of economic success. For December the North West JSA rate was 194,777 (4.6%) against a national % of 4.1% . IB/ESA numbers are 360,250 (9.3%) of working age population. 7.1% nationally (May 2009, last available figures). Employment rates are not forecasted to recover to 2008 levels until 2018. Northwest residents are less likely to hold Level 4 qualifications than people in other English regions and 14.7 % of the Northwest working age population with no qualifications. (623,000) There is a need to create jobs and provide skills to release potential of people and deliver sustainable growth. •
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Train to Gain in the North West has had a record numbers of learners starting new qualifications (180,000) since the beginning of the 2007/08 academic year. 67% of starts at L2 (an upward trajectory) and 17% at L3 (a constant trajectory). Skills for Life delivery has risen dramatically, but remains a focus in the region. Sector delivery – There has been an increase in health, retail and business administration training and a regional downturn in retail and construction, which may be due to the recession. ICT and Leisure/Tourism numbers have also been lower than other sectors across the region. There has been specific sub regional investment in engineering (Cheshire and Warrington and Lancashire, Greater Manchester and Greater Merseyside) and construction (Cumbria, Greater Manchester and Greater Merseyside). NW Apprenticeship numbers have grown over the past two years, particularly for 16-18 year olds. There has been an increase in apprenticeships across the whole of the region. Business Administration, Construction and Customer Service apprenticeships remain strong and there have been a doubling of Management apprenticeships. Delivery across the region differs according to changing needs of employers. For example: - Catering, Customer Service and Hospitality are strong in Cheshire and Warrington, but there has been a reduction in hairdressing apprenticeships. - Continued investment in Construction and Engineering and an increase in Child Care in Cumbria. - There is a strong demand for Business Administration, Construction and Customer Service apprenticeships in Greater Manchester. - Demand in Business Administration, Construction and Customer Service in Greater Merseyside. (not sure what this statement is saying) - There is continued demand for Business Administration, Construction and Customer Service apprenticeships in Lancashire Adult Learner Responsive enrolments show a slight decrease in the 2008/09 year. 36% of enrolments are on Foundation Learning and Skills for Life programmes. ICT enrolments are falling. Providers in North West sub-regions have tailored provision according to local need, e.g. Cumbria providers are delivering more business administration and retail programmes and less agriculture and language programmes, Greater Merseyside and Lancashire delivery patterns have remained stable over
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the past two years. Current needs • Science, Technology, Engineering and Maths (STEM) skills have increased focus for Northwest priority sectors of nuclear, advanced manufacturing (including aerospace), biomedical, digital and creative, chemicals and automotive with skills requirements at Levels 2, 3 and 4. Despite this STEM qualifications have seen a slight decline suggesting stimulation of demand required in this key area. • NW Regional manufacturing, with a focus in West Lancashire, identifies skills priorities above national average for technical, practical, job-specific skills, problem solving, customer handling and management skills. The Northwest is the largest manufacturing region in England and the sector remains resilient 1. • In engineering technical skills gaps in the NW are for computer numerical control (CNC) machine operations, tool setting and welding with a net requirement by 2014 for 11,000 individuals at Level 3, 12,000 at Level 4 and around 3,000 at Level 5 or above. 2 In engineering 9% of workforce (17,000) have no qualifications rising to 16% in automotive, with a net requirement to 2014 for 10,000 people at Level 2 and 8,000 at Level 1. However, historical trends show take up of engineering provision is not as high as the sector needs. • In environmental/energy technologies upskilling required to level 2 in gas and water and to levels 3 and 4 in the gas industries.3 • The Northwest accounts for 53% of total employment in the nuclear industry (44,000 employees).4 There are an insufficient number of apprentices and technicians entering the sector to meet replacement demand. Key supply chain skills needs are in managerial, professional & technical and skilled operatives/specialist skills – including scaffolding, thermal insulation, electrical, engineering, riggers, fitters, scaffolding, metal recycling, asbestos, decommissioning & remote handling. 5 Cumbria needs to exploit growth in the low carbon economy, nuclear environmental technologies and renewables. The greatest demand identified for this sector is L4, although over the next 3 years there is a projected need across all levels whilst the need for jobs with no qualifications falls. Barrow and surrounding peninsula has a high technology cluster of advanced engineering and defence and there is evidence of growth requirements in L4 and level 5 skills in 2013. Current L3 and L4 delivery in advanced engineering should therefore be maintained. • Northwest chemicals manufacturing and processing industry accounts for 21% of total UK employment in the sector, major concentrations in Cheshire and Lancashire, with shortages of technical and engineering skills such as technicians, fitters and operators. An ageing workforce will mean more apprentices are required to meet replacement demand. 6 • Digital and creative sector is the largest outside London with major investment in Media City, in Salford, generating over 4000 jobs. There is demand for medium and higher-level skills including developers for future media and technology and the wider digital and games sectors, project managers, multiplatform content production, journalism, specialists in children’s content, producer, senior producer, post-production and studio skills. There are also skills gaps at technical skill levels for studio directors, multi-camera operators, floor managers, vision mixers and lighting directors. In addition It is estimated over 7,000 freelancers will be required to service the needs of companies based at MediaCity.11 • As the economy moves out of recession it will be essential to maintain the programmes supporting the integration of employment and skills such as the ‘6 month offer’ to tackle barriers to worklessness and raise employment rates within our significant Incapacity Benefit population. Cumbria, Lancashire, Liverpool and Manchester city regions have high concentrations of workless / low qualified residents. As a result there needs to be a focus on Foundation Learning , Level 1 and some Level 2 training. • In the food and drink sector, 67% employees have level 2 or lower qualifications with skills, 17% of workers have no qualifications.7 Requirements are in technical roles (including food scientists), supervisors/managers, machine operators and craft skills. 8 • The business and professional services sector requires 50,000 new recruits over next decade to maintain employment levels with particular requirement for upskilling in ICT, customer handling and customer services skills at L3.9 Manchester still has a thriving financial services sector which has a continued need for replacement demand. • Replacement demand and upskilling at Levels 2 and 3 particularly in high employment sectors of healthcare, education, leisure and tourism, retail, construction, logistics. Cheshire, Merseyside and
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Cumbria have all identified leisure and tourism skills as essential. Chester as a heritage city and the planned development of Carlisle and the asset of the Lake District National Park drive a need for skills in the tourism, hospitality, leisure and customer service areas – the need for L2 will decline with L3, L4 and leadership & management skills requirements rising. Take up of current provision has been low to date. The Liverpool ‘Superport’ will need skills in logistics at L2 & L3. Leadership and Management skills are key to utilising skills currently in the workforce and delivering growth across all sectors. NINJ strengths within the region include Aerospace (Advanced Manufacturing), Chemicals, Pharmaceuticals and Creative/Digital.
Future needs The draft Northwest Integrated Regional Strategy RS2010 highlights the following priorities for developing the region over the next 20 years. They are to; • Capitalise on the opportunities of moving to a low-carbon economy: • Build on our sources of international competitive advantage and regional distinctiveness : • Release the potential of our people and tackle poverty • Ensuring the right housing and infrastructure for sustainable growth These priorities translate into the following skills priorities: • Nuclear energy and technologies skills for Cumbria’s ‘energy coast’ (processing and decommissioning), Lancashire (generation and manufacture) and Cheshire (fuel enrichment).These will generally be higher level skills often in STEM subjects meaning progression pathways are essential. • Expansion in renewable energy and associated technologies will generate 15,000 new jobs in the region in design, manufacture, operations and maintenance for wind and tidal projects, 10,000 jobs requiring skills in the installation, operation and maintenance of new technologies and 6,000 new jobs in renewable energy manufacture.10 • Reskilling at all levels and replacement demand particularly in STEM skills to ensure that all sectors across the region, including housing and transport, consider the challenges and opportunities presented by climate change and develop low- carbon, resource-efficient solutions and alternatives. Example includes developing a coordinated programme to retrofit housing stock and other buildings, reducing energy demand and improving energy efficiency, with impact on all skills levels particularly STEM and construction. • Developing Northwest strengths in internationally competitive sectors as identified in New Industry, New Jobs (NINJ) in nuclear, advanced manufacturing (including aerospace), biomedical, digital and creative, chemicals and automotive requiring higher level skills in STEM subjects. This means focussing on advanced manufacturing/engineering in Lancashire and Cumbria; biomedical in Liverpool city region; Cheshire and Manchester city region; digital and creative, chemicals and automotive in Cheshire and Liverpool city region • Digital and creative sector is also growing in the region. It is estimated over 7,000 freelancers will be required to service the needs of companies based at MediaCity. 12 In addition there is an estimated growth in the gaming industry in Liverpool. • Planned Northwest investment for Next Generation Access (NGA) means we need to ensure there are the skills to construct, manage and utilise NGA digital connectivity to increase access to businesses and services and reduce the need to travel. • Ensuring skills development, particularly at Level 2 and Level 3, in customer care, leisure and tourism, construction and business administration to support priorities to: - Improve our international connectivity through the Liverpool Superport, including John Lennon Airport, and Manchester Airport; and support the development of high speed rail connections from the Northwest to London and Europe. - Develop our world class sporting/culture/quality of place offer and the attraction of Manchester, Liverpool, Chester and the Lake District as international destinations - Develop Blackpool as a twenty-first century resort - Develop the Northwest cultural offer based on an outstanding historic environment, our arts and museums and strong industrial heritage, including further developing Carlisle, Chester and Lancaster as “heritage cities”; - Ensure the region continues to attract high-profile international events, including being a host
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venue for the 2018 Football World Cup and attracting Olympic training camps. Building on regional strengths in land based skills at all levels to promote sustainable farming and food production and its role in managing the countryside and increasing food security particularly in the rural areas of Cheshire, Cumbria and Lancashire. Reaseheath and Myerscough Colleges in Cheshire and Lancashire respectively are both centres of excellence for land based provision.
Underpinning these specific priorities is the need to ensure that the current and future Northwest workforce is equipped not only to meet the future skills needs but is able to participate fully in the economy. This includes: • Continuing to focus on developing Skills for Life and entry level jobs and skills • Building a transferable skills base (customer service, functional skills, communication, enterprise behaviours); • Stimulating employers to release the potential of their workforce at all levels by investing in innovation, leadership and management and entrepreneurial skills. • Encouraging and supporting innovation, enterprise and self employment. • Ensuring high quality, responsive labour market led skills provision High growth opportunities • The Northwest has been identified as having New Industry New Jobs (NINJ) significant and combined assets in nuclear composites, industrial bio and life sciences and significant assets in additive manufacture, marine (low carbon) and micro/ nano technology 13. • Making this a world-class region for nuclear technologies by seizing the opportunities from the new nuclear build programme, including establishing West Cumbria as a centre of excellence for nuclear and other environmental technologies. (Should further building of facilities occur, there will be demand for construction and related skills.) Improving security of energy supply by developing renewable and other low carbon opportunities such as tidal power opportunities in the Mersey and other estuaries and wind power in the Irish sea • Building capacity in research, science, innovation, supply chains, skills and market development of low-carbon technologies, based on existing assets such as the Dalton and Joule Centres at Manchester University, the Energy Innovation Centre in Cheshire and the Nuclear Skills Academy in West Cumbria. • Building on Northwest strengths in research and innovation to develop new low carbon products and services such as solid state lighting in Cumbria; • Supporting emerging sectors where the Northwest can have competitive advantage e.g. unmanned aerial vehicles. • In aerospace, the use of composite components in both civil and military aircraft is growing rapidly particularly requiring systems engineering training and greater understanding of supply chain needs. • In Digital and Creative, proliferation of media platforms and devices has given rise to a huge demand for content requiring continual updating and development of new skills. Planned Northwest investment for Next Generation Access (NGA) will also support the development of an enhanced IT infrastructure in the region.. • Developing opportunities for small scale distributed energy generation. • Developing a ‘smart’ grid to access and transfer energy around and from the region. • Developing a coordinated programme to retrofit housing stock and other buildings, to reduce energy demand and improve energy efficiency Reducing our demand for energy and other resources, and developing low-carbon solutions, in the domestic, business and transport sectors so that we grow our economy in a sustainable way; and • Encouraging the deployment of ultra-low carbon/electric vehicles and associated infrastructure, as well as promoting alternatives to private car use and planning new developments in ways which reduce the need to travel.
Footnotes 1
LSC National Employer Skills Survey2005 and SQW Evidence Base for Northwest Regional Manufacturing Strategy & Action Plan, 2009. 2 Engineering Skills Balance Sheet Northwest, SEMTA & NSAM, October 2008. 3 EU Skills Sector Skills Agreement Northwest, 2007. 4 Power People – The Civil Nuclear Workforce 2009-2025, Cogent, 2009. Cogent Sector Skills Agreement
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Cogent Sector Skills Agreement, 2007. ENERGUS Survey, 2008. Cogent Sector Skills Assessment, December 2009. 7 Engineering Skills Balance Sheet Northwest, SEMTA & NSAM, October 2008. 8 Northwest Food & Drink Manufacturing Employer Training Needs, NSA Food & Drink Manufacturing & Improve, 2008. 9 NSA Financial Services, A review of financial services in the North West, October 2008. 10 Assessment of the Skills Provision for a 'Well Adapted and Low Carbon Northwest’, ECOTEC Research & Consulting and Paul Beers Innovations for NWDA, 2009. 1 Mapping Supply and Demand for Skills in the Audiovisual Industries in the North of England, BOP Consulting for Skillset, December 2007. MediaCity UK Supply Chain Workforce and Skills - A report to the Public Sector Partners of MediaCity UK. SQW, October 2009. 1 Mapping Supply and Demand for Skills in the Audiovisual Industries in the North of England, BOP Consulting for Skillset, December 2007. MediaCity UK Supply Chain Workforce and Skills - A report to the Public Sector Partners of MediaCityUK. SQW, October 2009. 13 Expertise and Excellence in NINJ Technologies GHK Consortium, November 2009. 6
References/ sources and consultation reports • • •
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RS2010 Regional Strategy for England’s Northwest (Consultation draft) Northwest Regional Economic Strategy 2006 -2009 RS2010 Regional Strategy Evidence base – Jan 10 including: o Ensure a commitment amongst adults to the skills and qualification they need for employment, with a focus on Skills for Life and Level 2 attainment, as well as attainment of Level 3 and higher level skills (2009). o Raising the aspirations and attainment amongst young people, especially amongst 16-19 year olds, and stimulate an interest in and progression towards higher skills. (2009). o Stimulate employers to invest more in workforce development at all levels, including innovation, leadership and management, and entrepreneurial skills (2009). Northwest Employment and Skills Challenges 2009 – Northwest Regional Skills and Employment Board – Regeneris Consulting Jan 09. LSC data including Train to Gain, National Apprenticeship Service. SEMTA and SQW Evidence Base for Regional Manufacturing Strategy & Action Plan. Skillset and Northwest Vision & Media. Improve and NSA Food Manufacturing. NSAfS & Pro-Manchester.
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Annex A RSEB Members and Partners Consulted • • • • • • • • • • • • • • • • • • • • • •
Alliance of Sector Skills Council Association of Colleges CBI Cheshire and Warrington Economic Alliance Cumbria Vision Federation of Small Businesses Government Office North West Higher Education Funding Council Job Centre Plus Lancashire Economic Partnership: Learning and Skills Council: Manchester’s Commission for the New Economy National Apprenticeship Service North West Chambers of Commerce North West Development Agency North West Provider Network North West Universities Association North West Vision and Media 4NW Skills Funding Agency The Mersey Partnership Voluntary Sector North West
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