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Solent Enterprise Zone Skills Plan May 2013

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Solent Enterprise Zone Skills Plan May 2013 Solent Enterprise Zone Skills Plan Produced by Marchmont Observatory May 2013 1 CONTENTS Contents Contents ........................................................................................................................................ 2 Table of Figures ........................................................................................................................ 5 Table of Tables .......................................................................................................................... 6 Foreword ....................................................................................................................................... 8 Executive Summary ...................................................................................................................... 9 Introduction ................................................................................................................................ 9 The Solent Enterprise Zone ...................................................................................................... 9 Objectives .................................................................................................................................. 9 Developing the Skills Plan ....................................................................................................... 10 Context .................................................................................................................................... 11 Demand for Skills .................................................................................................................... 12 Meeting the skills needs .......................................................................................................... 14 The Flow of Skills .................................................................................................................... 15 The Skills Plan ......................................................................................................................... 16 Measuring Success ................................................................................................................. 20 1. Introduction .......................................................................................................................... 21 1. Introduction .......................................................................................................................... 21 2. Background .......................................................................................................................... 23 2.1 Solent LEP .................................................................................................................... 23 2.2 Enterprise Zones .......................................................................................................... 23 2.3 Solent EZ ...................................................................................................................... 24 2.3.1 Sector Focus ......................................................................................................... 25 2.3.2 Geographical Analysis ........................................................................................... 26 3. National Policy Context ........................................................................................................ 29 3.1 Industrial Policy ............................................................................................................ 29 3.2 Skills Policy ................................................................................................................... 30 3.3 Apprenticeships ............................................................................................................ 31 3.4 Challenge Funds .......................................................................................................... 32 3.5 Employer Ownership of Skills Pilots ............................................................................. 32 3.6 The Heseltine review .................................................................................................... 33 3.7 EU Growth Funds ......................................................................................................... 34 4. Demand side analysis .......................................................................................................... 35 4.1 Businesses and Entrepreneurialism ............................................................................. 35 4.1.1 Business Stock ...................................................................................................... 35 4.1.2 Business Survival Rates ........................................................................................ 37 2 4.2 Industrial structure ........................................................................................................ 37 4.2.1 Industrial structure of Solent LEP area .................................................................. 38 4.2.2 Industrial make up of Fareham & Gosport ............................................................ 40 4.3 Skills shortages and skills gaps in Solent LEP (ESS 2011).......................................... 41 4.3.1 Skills shortage vacancies ...................................................................................... 42 4.3.2 Skills Gaps ............................................................................................................ 43 4.4 Implications of Skills Gaps ............................................................................................ 45 4.4.1 Actions taken to alleviate the effects of skills gaps ............................................... 45 5. Solent EZ priority sectors – Data analysis ........................................................................... 46 5.1 Definitional Issues ........................................................................................................ 46 5.1.1 Engineering & Manufacturing ................................................................................ 46 5.1.2 Aerospace and Aviation ........................................................................................ 47 5.1.3 Marine & Extended Marine .................................................................................... 47 5.2 Profile of Priority Sectors .............................................................................................. 48 5.2.1 Number of Enterprises .......................................................................................... 48 5.2.2 Turnover ................................................................................................................ 48 5.2.3 Employment .......................................................................................................... 49 5.2.4 Employment Projections ........................................................................................ 50 5.2.5 Expansion demand ................................................................................................ 51 5.2.6 Replacement Demand ........................................................................................... 53 5.3 Summary ...................................................................................................................... 54 6. Solent EZ priority sectors – Challenges ............................................................................... 56 6.1 All Advanced Engineering ............................................................................................ 56 6.2 Aerospace and Aviation ................................................................................................ 57 6.3 Marine ........................................................................................................................... 59 6.4 Portsmouth Naval Base ................................................................................................ 61 7. Supply Side Analysis ........................................................................................................... 63 7.1. Occupational structure of employment ......................................................................... 63 7.2 Wage Levels ................................................................................................................. 65 7.3 Unemployment in Solent LEP and the area around Solent EZ .................................... 66 7.3.1 Unemployment by Age .......................................................................................... 69 7.3.2 Young People Not in Education, Employment or Training (NEETs)...................... 70 7.3.3 Long-term unemployment ..................................................................................... 73 7.3.4 Usual/jobs sought by claimants (JC+ / NOMIS) .................................................... 74 7.4. Skills levels in the Solent LEP area .............................................................................. 77 7.4.1. Working age population ......................................................................................... 77 7.5 Summary ...................................................................................................................... 79 8. Supply Side Analysis – The flow of skills ............................................................................. 81 8.1. The skills of young people ...........................................................................................
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