ConstructionSkills Investment Plan

Tayside Construction Forum02 September 2015

Introduction - Purpose of SIPsSIPs positioned in Scottish Government Economic and Skills Strategies, and central to SDS strategy

• Clearly articulated and communicated statement of skills needs facing the sector

• Identify the skills priorities that support the sector to achieve its growth potential

• Framework for better alignment of skills supply with industry articulated demand

• National focus and emphasis on industry engagement and commitment

Construction SIPStory so far and Development Process

Stage 1

Inception and Commissioning

Stage 1

Inception and Commissioning

Stage 2

SIP Research

Stage 2

SIP Research

Stage 3 Refinement and Validation

Stage 3 Refinement and Validation

Stage 4 Publication and communication

Stage 4 Publication and communication

Stage 5 Implementation and review

Stage 5 Implementation and review

Industry engagement

Desk research, industry consultation and analysis

Launch end of March at SBF

Consultation Process

• Met at SDS Glasgow on 19th January, cross sectoral representation

• Satisfied with evidence base, broad themes and draft strategy and action plan, suggestions made

• Draft SIP refreshed and sent to panel members for review and final comment

• Final comments considered and draft SIP amended accordingly

• Endorsed by Construction Scotland, Industry Leadership Group on 23 Feb

Industry Review Panel and ILG

Sector Overview• Sector definition

– Complex and multi- faceted

– Main sub sectors• Specialised construction (including BSE) activities• Construction of buildings• Architectural and engineering activities• Civil engineering• Manufacture of construction related goods• Retail of construction related goods

• Employment

– Employment 178,400 in 2013 (6.9% of total Scottish employment), but decline of 16% from

2008 (when it was 212,500 and 8.4%)

– Decline focused on central belt – (Glasgow; Edinburgh; S Lanarkshire)

– Largest sub sector decline (27%) in both civil engineering and manufacture of construction

related goods

– In terms of occupations, the largest declines in employment over the last 5 years were in

‘process, plant and machine operatives’ jobs accounting for around 40% of all job losses

• Employment forecasts

– Some variations/ caveats but broadly consistent ~ 1% per annum (Scotland 0.5%)

– Public sector infrastructure private housing has implications for skills demand

– Employment growth + replacement demand = future needs of sector

• Employment growth 21,000 (2,100 per annum) by 2022

• Replacement demand c39,000 (3,900 per annum by 2022)

• Total demand around 6,000 per annum over the next few years

– 2015 to 2020 time horizon this will imply total labour demand of 30,000

– Even split between Managerial/ Professional/technical and Skilled Trades

Future Scale of Sector

• Modern Apprenticeships

– 4,435 starts in Construction related frameworks in 2013/14 (up third since 2009)

– Accounted for 18% of MA starts in 2013/14

– Frameworks including mgmt and supervisory VQ – increased by 42% since 2009 and at

14% of all starts in 2013/14.

– Achievement rate up to 77% (in line with other framework groups)

• FE/ HE

– 14,685 students at FE level (down third since 2009)

– 8,675 students at HE Institutions (down fifth since 2009)

• In work training

– Relatively low engagement in workforce development (UKCES ESS)

– 18% of companies did not offer training or wider development opps (v 11% other sectors)

– 22% of companies offered management training (v35%)

Current training activity

Skills Challenges • Sector drivers

– New technology and innovation

– Energy efficiency and low carbon agenda

– Industry talent pool

– Business, ICT and enterprise skills

• Implications for skills

– General trends towards higher level skills

– Traditional apprenticeship route into industry may not fully reflect needs/ opportunities

– Engaging SMEs and micro-businesses in workplace development

– Competition with other sectors (entry level and experienced staff)

– Specific implications from BIM , MMC and Innovation

– Multi skilling professionals – e.g. management, ICT and HR skills

SIP Strategy and ActionsTheme Key Actions

Attracting talent and developing new pathways

• Career and sector promotion

• ‘Foundation’ apprenticeship pathways

• Under-represented groups

• Return to construction / transition training

Workforce development to meet employer demand

• Ourskillsforce construction hub, S4G and FTOs

• Management pipeline ‘ Qualifying the workforce’

• Micro and SME businesses

Modernising training provision and targeting interventions

• Regional targeting of MA’s , pathway development

and College provision

• Maintaining (and introducing new) Apprenticeship

Frameworks

Providing, and stimulating demand for skills for future growth

• Moving from entry routes workforce development

• BIM and MMC

• Business, ICT and enterprise skills

Foundation Apprenticeships

• Students given the opportunity to complete the first stages of a Modern Apprenticeship along with traditional subjects such as Maths and English

• Starting in S4 or S5 Students will also complete a placement or project with a local employer while working towards the qualification through school and college.

• Supported by School, pupils will attend up to 1 day per week in college for 2 years

• Benefits for employers include young people entering the workplace better equipped with relevant experience, skills and underpinning knowledge. It can also reduce the time on off the job training.

Foundation Apprenticeships are a new opportunity being offered to students in years S4-S6 of school

Pilot - Foundation Apprenticeship in Civil Engineering

2 centre pilot – West Lothian College & Inverness College UHI (tbc)

West Lothian aiming for 50% Female students

Students will be in S5 & S6 - Programme over two years

Students will have achieved National 5 Maths and have qualifications in a range of technical subjects

Students will also be working towards Higher Maths

Could reduce duration of Modern Apprenticeship by 1 Year

Pilot to start in September 2015

Shared Apprenticeship Model

• Shared Apprenticeship Scheme

• CITB, Highland Council and Construction employers

• Increase the number of MA places

• Increase the number of companies participating in the MA scheme

• ‘Shared Highland Apprentices in Construction’ (SHAC) run the scheme

• SHAC employ the MAs and work with companies to develop placements

Launched 18 May, Inverness