Transport Planning Transport Railways Highways Project Brunel
Transport Industry Resources Study
FINAL REPORT December 2008
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Issue and Revision Record Revision Date Originator Approver Description
12/12/08 S Jackson A Willis Final Report
A 23/01/09 S Jackson A Willis Final Report (Revised)
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Project Name: Project Brunel: Industry Study 2008
Project Brunel
Transport Industry Resources Study
A study into the supply and demand of professional engineering, technical and planning skills within the Road, Rail and Transport Planning sectors of the UK Transportation Industry
Terms of Reference
The consultant’s primary objectives are to:
¾ Produce a body of work that establishes both a baseline position and potential future positions that
identifies shortages and constraints within defined professional disciplines.
¾ Identify actions to be taken that will potentially overcome the constraints; in timeframes characterised as short, medium and long term.
Secondary objectives are;
¾ Establish methodologies and processes that will allow the exercise to be repeated at least cost in order to keep the study ‘live’ and up-to-date.
¾ Establish a forum or body that will be able to ‘speak with one voice’ on the subject matter of resource
planning.
This document has been prepared for the titled project or named part thereof and should not be relied upon or used for any other project without an independent check being carried out as to its suitability and prior written authority of Franklin & Andrews Ltd (F&A) being obtained. F&A accepts no responsibility or liability for the consequence of this document being used for a purpose other than the purposes for which it was commissioned. Any person using or relying on the document for such other purpose agrees, and will by such use or reliance be taken to confirm his agreement to indemnify F&A for all loss or damage resulting therefrom. F&A accepts no responsibility or liability for this document to any party other than the organisation by which it was commissioned. To the extent that this report is based on information supplied by other parties, F&A accepts no liability for any loss or damage suffered by the client, whether contractual or tortious, stemming from any conclusions based on data supplied by parties other than F&A and used by F&A in preparing this report.
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Project Name: Project Brunel: Industry Study 2008
Partnering Group
Consultant
Author
Steven Jackson FRICS
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Project Name: Project Brunel: Industry Study 2008
Foreword
We are living in an economic climate that, for many, is more uncertain now than at any time in the last two decades. When the Project Brunel Industry Study was commissioned in 2007 the world economy was stable and growing, the forecasts for economic growth in the UK were running at an average of 2.5% per annum through to 2012 and the reports of resource shortages were becoming ever more frequent. The effect of those shortages was manifesting itself in tender price inflation, as the laws of supply and demand took hold, and which in turn has led to programme slippage in some sectors. By early 2008, however, some economic commentators were beginning to view, what was then, the Government’s newly downgraded growth figures of 1.75% to 2.25%, as overly optimistic. As we near the end of 2008 the picture has turned even more uncertain, with commentators stating that the UK is in, or about to enter, a period of negative growth. As a result of such uncertainty, questions may be raised in some quarters as to the applicability, validity or even the necessity of the outputs from Project Brunel.
No such doubts exist in the collective mind of the UK Transportation Industry, however. On the contrary, more so than ever before we need to properly plan, coordinate, control, structure and define the direction and capability of the industry.
This report is set against a background of the Leitch Report 20061 wherein Lord Leitch sets out an agenda to raise all skills across the education spectrum with the laudable aim of doubling attainment rates at most levels, by 2020. Quite rightly, his report takes a long-term view. Between now and 2020 the economic climate will be variable, as it always has been. The vision however should remain unchanged. The development of world-class skills is not a project that can be turned on or off, slowed down or speeded up according to economic cycles. If the vision of Lord Leitch is to be realised then the nation must look beyond the short term, keep a view of the road ahead and not be diverted.
So it is for the industry too. We must look far beyond the possibility of a project or even a programme of work here or there being postponed or otherwise delayed in the short term. The challenges that face our transport planners and engineers arising from climate change alone are huge. Set that alongside the need to meet the challenges set by the Eddington Report2, the need to optimise existing capacity through intelligent transport systems and the introduction of travel planning, we get a picture of a demand for world-class skills that will increase in the medium to long-term, irrespective of short-term economic fluctuations and performance.
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The gestation period for a Chartered Engineer or Transport Planner is around 12-14 years if measured from the time when students face subject options for the first time. The development of these skills should not be subject to short-term economic changes. It is argued that under-investment in our transport infrastructure, and by extension our skill base, since 1945 can be directly linked to stop-start spending on projects arising from short term fiscal policies. The transportation industry (and the skills it embodies) is too strategically important to the health of the nation for it not to be nurtured. This report provides both a framework and a plan which, if implemented, will help sustain the future well-being of the industry.
Steven Jackson Franklin & Andrews December 2008
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Project Brunel Contents
Industry Study
Page iii Foreword
Page 1 Executive Summary
Page 9 1.0 Preliminary Review (A Desktop Study)
2.0 Results and Findings Page 17 2.1 Introduction
This section contains the outputs from the 2.2 Supply & Demand Data Gathering Process
Page 37 3.0 Solutions
3.1 Introduction to Solutions This section contains the outputs from the 3.2 Solution Identification – Stages Consultation Process 3.3 Solution Identification - Detailed
Page 47 4.0 Conclusions & Recommendations
4.1 Conclusions 4.2 Summary Recommendations
4.3 Detailed Recommendations
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Page 51 Appendices
A Methodology B Supply Model, Data & Evidence Base
C Demand Model D Gap Analysis: Projections & Scenarios
E Solutions F Solutions: Case Studies
G Industry Liaison Group Members H Industry Forum Members
I Surveyed Organisations
J Survey Questionnaire K Acknowledgments & Partner Organisations
Page 181 References & Footnotes
Tables
Executive Summary Table 1: Shortages: Base Position Table 2: Shortages: Position at 2012
Section 2 Table 2.1: National Demand/Supply Estimate 2007/2013 Table 2.2: London Demand/Supply Estimate 2007/2013 Table 2.3: Transport Planning 2007/2013 Table 2.4: Highway Engineering 2007/2013 Table 2.5: Traffic Engineering 2007/2013 Table 2.6: Highways Generic Skills 2007/2013 Table 2.7: Rail Engineering 2007/2013 Table 2.8: Station Engineering 2007/2013 Table 2.9: Rail Engineering Generic Skills 2007/2013 Table 2.10: Requirements by Grade Table 2.11: Changing Demographics to 2020
Section 3 Table 3.1: Solution Implementation Stages
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Reading Notes
¾ A reference to ‘the industry’ means the road, rail and transport planning sectors of the transportation industry. The defined technical disciplines are applicable to these sectors.
¾ The disciplines cover a complete range at all levels including engineering staff (chartered, and incorporated / technician and graduate), and other technical staff including commercial, procurement, programming and transport planning staff. The disciplines do not include artisan and trades people.
¾ As a generic reference to disciplines within this report the acronym ETP stands for Engineering, Technical and Planning.
¾ The geographical scope of the study is UK nationwide.
¾ Spending plans have been analysed through to the financial year 2013/2014. These spending plans have been used to generate the demand for resources. The model then gives demand figures through to the end of the last complete calendar year for which we have data, this being 2013.
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Project Name: Project Brunel: Industry Study 2008
EXECUTIVE SUMMARY
There is a supply of 87,400 professional Engineering, Technical and Planning (ETP) resources across the road, rail and transport planning sectors of the UK transport industry, compared with a demand for 96,900 (base year 2007). The current shortfall gap of 9,500 between supply and demand could potentially almost quadruple to over 35,000 by 2012. However, co-ordinated action by industry stakeholders could reverse this trend, and significantly close the gap, through the implementation of solution sets that influence both the supply of and demand for ETP resources.
Project Outline
The scope: This research project has focussed upon the examination of resource imbalances within the ETP (engineering, technical and planning) skills of the Road, Rail and Transport Planning sectors of the Transportation Industry.
The objectives were two-fold: ¾ The first objective was to establish what resources, within defined professional disciplines, are available to the industry now and through to the end of 2013, and identify where resources are, and will be, in short supply by comparison to current and future demand. ¾ The second objective was to identify and recommend solutions that would overcome, or at least improve the position, in respect of shortages in timescales that are characterised as short (0-3 years), medium (3-8 years) and long term (8+ years). Ultimately the aim of this study is to inform the industry of its current and future position with regard to skills shortages and imbalances, identify the reasons for those imbalances and propose solutions that will redress the position.
The methodology that was adopted had two strands: The first strand, to establish supply of, demand for, and imbalances in resources, was carried out through a combination of economic modelling and direct employer surveys. The second strand, to identify the solutions that will redress the imbalances, was carried out by extensive engagement with organisations across the industry through a combination of background research of existing studies, workshops, an industry forum, an industry liaison group and direct survey to canvas opinions and gather data. The modelling outputs informed the solution identification process. The solution sets are supported by a series of case studies (Appendix F) that identify examples of best practice for the implementation of solutions. This methodology can be repeated in the future to assess the impact of implemented recommendations and keep the study 'live' and up to date.
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Project Outputs
The findings in respect of resource numbers are summarised as follows:
Current Position: According to our modelling the base position (2007) for the industry is that there was a supply of 87,400 ETP resources compared with a demand for 96,900. The shortfall is 9,500 or approximately 10% of the supply figure, (Transport Planning 1100, Rail 2200, Highways 6200).
The table below shows the disciplines with the greatest shortfall.
Top Disciplines Shortage Top Disciplines Shortage – Ranked by shortage in No. – Ranked by % shortage % numbers
Transport Planning Transport Planning General / Economics / Travel General / Economics / Travel 1100 7% Planning Planning Rail Rail Permanent Way Engineering 550 Power Engineering 14% Rail Signalling – Train & Traffic Station Design & Engineering / 250 12% Control Station Fit Out /HVAC etc Power Engineering 200 Permanent Way Engineering 8% Station Design & Engineering / 150 Highways Station Fit Out / HVAC etc. Traffic Signing / Signalling 19% Highways Highway Design / Development Highway Design / Development 10% 300 Control Control Generic Traffic Signing / Signalling 120 Systems Engineering & Integration 20% Generic Testing / Measurement Control 16% Contracts & Procurement 1020 Environmental Engineering 15% Quantity Surveying / Cost 760 CAD / GIS / Advanced Management 14% Simulation Programming/Planning 630
Project Management 620 Notes: Environmental Engineering 510 1. Shortages expressed as % of demand 2. Disciplines with shortages less than 50 excluded
Table 1: Disciplines of greatest shortage by number & percentage of demand; Base position
Future Trend: The industry currently experiences an attrition of its resources of 750 to 1000, an average of about 1%, per annum. The combination of this attrition (supply reduction) together with the forecast increase in future demand, could potentially lead to the gap between supply and demand rising to over 35,500 by 2012, (Transport Planning 2700, Rail 26100, Highways 6700).
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Approximately 20% of both the supply and demand is concentrated in or around London. 2012 is the point at which the supply/demand gap is at its greatest, but this study models supply and demand through to the end of 2013. The future position (2012) for the disciplines forecast to be in greatest shortage is represented in the table below, assuming that no action is taken to change either supply or demand between now and then:
Top Disciplines Shortage Top Disciplines Shortage – Ranked by shortage in No. – Ranked by % shortage % numbers
Transport Planning Transport Planning General / Economics / Travel General / Economics / Travel 2670 16% Planning Planning Rail Rail Rolling Stock Engineering 2530 Rolling Stock Engineering 69% Station Design & Engineering / Station Design & Engineering / 1680 61% Station Fit Out / HVAC etc. Station Fit Out / HVAC etc. Power Engineering 920 Power Engineering 43% Permanent Way Engineering 370 EMC 39% Highways Highways Highway Design / Development 730 Traffic Signing / Signalling 27% Control Highways Design / Development 22% Traffic Signing / Signalling 180 Control Highways Safety Engineering 120 Highways Safety Engineering 21% Generic Generic Civils Structures, Tunnels, Mechanical & Electrical 4240 61% Foundations etc Engineering Project Management 3340 Health & Safety Engineering 60% Quantity Surveying / Cost Civil Structures, Tunnels, Bridges, 2850 51% Management Foundations, etc. Mechanical & Electrical 2670 Project Management 38% Engineering Quantity Surveying / Cost 30% Contracts & Procurement 2420 Management
Notes: 1. Shortages expressed as % of demand 2. Disciplines with shortages less than 50 excluded
Table 2: Disciplines of greatest shortage by number & percentage of demand; Position at 2012
Gap Analysis - Summary Conclusions: In the worst case, if the industry does nothing, then it will experience a chronic shortage of skills that will undoubtedly restrict its ability to deliver its planned investment programme.
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It is equally clear that the introduction of short term recruitment measures, such as an overseas recruitment campaign, whilst having a positive effect upon shortages will not, in isolation, solve the problem.
The solution therefore lies in a variety of short, medium and long-term measures, the combination of which will provide a sustainable route to sourcing the right skills for the industry into the foreseeable future.
An expanded set of summary recommendations is set out below.
Summary Recommendations 5-Point plan:
¾ Implementation of an overseas recruitment campaign, supported by an increase in the numbers of disciplines included on the Home Office Shortage Occupation List.
¾ Introduction of NEC3 as a standard suite of contracts across all sectors within transportation. This should form the backbone of procurement strategies by all major clients and at least 50% of all projects shall be delivered by integrated teams and supply chains in less than 5 years.
¾ Create, and invest in, a demand-led skills agenda that would include the setting up of dedicated skills academies and advanced apprenticeship programmes by the major employers, sponsorship of industry-specific higher level qualifications, support for the new 14-19 Diploma qualification by all employers, and supporting STEM (Science, Technology, Engineering, Maths) skills education through ambassadorship programmes by all employers. Whilst the skills agenda generally provides long term solutions the upskilling / re-skilling of resources being shed from other sectors / industries could be used as a short-term solution with lasting effects.
¾ The appointment of an Industry Champion that would coordinate the implementation of this action plan, obtain funding as appropriate, and liaise with government. A key task of the Industry Champion would also be to drive the diversity agenda within the industry. This report shows that lack of diversity is hampering the industry’s ability to recruit skilled resources and a coordinated campaign in this area would dramatically improve recruitment potential.
¾ Establishment of a Transportation / Engineering media centre that would have as its remit, amongst other things, the implementation of a coordinated publicity campaign aimed at raising awareness of career potential and creating a positive image for the industry.
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Realising the benefits in a timeframe
Short Term: Recruitment and retention programmes will have the most impact in the short term. As a short term solution, employers should consider recruiting from overseas. To help employers recruit key skilled workers from outside the EU, further transport disciplines should be added to the Home Office Shortage Occupation List. It is therefore recommended that the findings of this report be used to support future submissions of evidence to the Migration Advisory Committee who advise the Home Office on such matters.
The inclusion of specialist disciplines (e.g. permanent way engineers, transport planners, signalling engineers, rolling stock engineers) would be of particular benefit, because there is very little opportunity to recruit or upskill resources from other sectors.
On the other hand the recruitment, re-skilling or upskilling of the generic disciplines from other sectors as they come available (e.g. project managers, quantity surveyors, contracts and procurement engineers) would generate a short-term beneficial effect.
Similarly, the improvement of rewards packages and the introduction of more flexible employment practices will help, in the short term, to protect the industry from migration abroad or to other industries. Implementing re-training programmes for skilled people who need or want to move from other sectors will also be a relevant solution that can be implemented with short term benefits. This solution being made all the more feasible as a downturn in, say, the commercial property and residential sectors could make more people available to work in the transportation infrastructure sector.
These actions are both cost effective and quick to implement. The downside, however, is that the effect of some short-term solutions may be transitory and not sustainable in the longer term. For example, immigrant workers may choose to return to their country of origin in the medium term. Similarly, other industries may respond by competing for the scarce resources by matching or improving upon the rewards packages of the industry as they seek to gain a competitive edge.
Medium Term: Efficiency measures will have a profound effect upon the industry within 5 years, saving approximately £250m per year for reinvestment in education and training whose benefits will then be felt in the longer term. By their nature these measures are both cost positive and sustainable in the long term.
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The industry also needs to be acutely aware of diversity issues that are currently affecting its ability to attract more people. Approximately only 5% of people entering the industry from full time education are women or from ethnic minorities. In effect this means that the industry is ignoring almost half of the population when it comes to potential recruitment. This position can be redressed simply by raising awareness in these under-represented groups of the potential career paths
Long Term: Education & Training: The implementation of the recommended education and training measures will, of necessity, yield results in the long term. Their implementation will require substantial investment of capital and resources but this is a most sustainable set of solutions guaranteeing a secure future for the industry. Efficiencies will continue to improve, yielding even greater savings in the longer term.
It should be noted that the industry is already trying to implement some of the recommendations. For example, in anticipation of a request by the Learning & Skills Council, work is about to commence in support of an Expression of Interest for a National Skills Academy for railway engineering. The initiative has a significant level of industry support and is also supported by a number of Public Sector partners, including regional development agencies. This is just one example of many that are underway, that this report would support.
Recommendations for the Future
Future monitoring
The Industry Liaison Group established for this project should be the forum that can 'speak with one voice' on the subject of resource planning. The Industry Forum can help provide wider input into development of initiatives and review of their implementation. However, unless these solutions are implemented in a co-ordinated way, their full effect may be dissipated. Furthermore, there are initiatives being implemented at present that may be undermined, if they are not taken into consideration and co- ordinated with any new sets of initiatives. The most obvious area where a coordinated approach would give greater impact are those that need a more strategic view, i.e. by definition the medium and long term solutions, particularly the investment in the skills agenda. It is therefore the view of this report that the process will be much more effective if managed, driven and co-ordinated by an industry 'champion'.
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Future studies
In order to track ETP shortages and to evaluate the effectiveness of measures taken to address the shortages, the following approach is recommended:
¾ Survey to run on an annual cycle, commencing Summer 2009, running for a trial 2 year period extendable to 2013.
¾ Segment by small, medium and large organisations and between consultancies and contractors - total of six cells each represented by a survey of at least 30 and up to 50 organisations in each - total sample of maximum 300 private sector organisations. Target 100 local authorities / public sector employers.
¾ Initial phase of research to build database. Use proprietary databases and public lists, conduct telephone research programme to identify key contacts in targeted sectors and build a data base of target contacts. Identify top 10 contractors, top 10 consultancies and 10 key public sector employers.
¾ Targeted mailing by DfT to individuals on contacts database. Repeat mailing and email follow up.
¾ Conduct telephone survey - use experienced business to business research team. Survey questionnaire data input table hosted on survey company website, enabling participant to view in real time.
¾ Conduct face to face interviews with top 10 in each of contractor, consultancy and public sectors.
The survey instruments and sampling method should be designed to take account of the fact that current vacancy rates may not necessarily be an indicator of actual shortfall in the short term. (They could be at least partly due to certain large employers poaching or otherwise attracting a large cohort of specialists in order to secure a greater market share in a profitable sector).
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Preliminary review
(A desktop study)
1.1 Preamble 1 Prior to embarking upon the main study a preliminary review of
the subject matter was undertaken. Previously published reports, such as the Engineering and Technology Board Engineering 3 Report 2006 and 2007, Henley Management College for the Royal Academy of Engineering4, ICE State of the Nation Report5, and 6 the ACE reports on skills shortages reinforces anecdotal evidence Existing studies and reports indicate from employers and recruitment firms alike that a skills gap exists that a ‘skills gap’ already exists in ETP (Engineering, Technical and Planning) disciplines in the Highways, Railways and Transport Planning Sectors of the
Transportation Industry.
1.2 Demand-side drivers
Spending on new rail infrastructure Engineering and Transport Planning activity in the rail and works as well as improvement works highways sectors is set to grow, as evidenced by, for example, The is set to increase Comprehensive Spending Review 2007 which has identified £15.3bn of government support over 5 years for railways in
England and Wales.
Thameslink, Crossrail and the East The Department for Transport is planning major improvements to London Line are examples of major the rail network over the period 2009-2013/2014. This will include rail programmes new capacity such as the Thameslink programme and Crossrail together with station improvements and new inter-city rolling
stock. The Crossrail project alone is expected to cost £16bn.
Similarly ambitious spending plans It is a similar picture in the highways sector. £22bn has been exist in the highways sector allocated to the Highways Agency over the next 10 years to
improve the national road network. The Comprehensive Spending Review 2007 provides significant investment in roads consistent 7 with the conclusions of the Eddington Transport Study .
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With increasing activity will come an increased need for
engineering and project management skills to deliver the projects
that are currently planned.
Furthermore, in the vanguard of increasing demand for resources
is transport planning. A shortage of experienced transport Transport planning activity has planners was identified in 20028. The demand for transport been increasing and will similarly continue to increase planners has continued to increase since then and it is reasonable
to conclude that, with the currently planned high level of activity in
the transportation sector over the next 10 years, the need for
Transport Planners will similarly continue to increase.
Increased spending on road and rail projects in the UK, whilst
being a major driver for additional ETP resources, is not the only
factor.
For example, increased spending on power generation
(consultations taking place on new-generation nuclear power Other sectors are competing for generation and a commitment to renewable energy sources9), resources with similar skill sets as those demanded by the transportation power distribution (e.g. new cable tunnels for London - £600m), sector health and education (£45bn programme ‘Building Schools for the
Future), water and sewage (e.g. Thames Tideway project £1.5bn)
will create / is creating a demand that competes for resources that
have similar ETP skill sets as those that are demanded by
transportation.
Similarly, there are other parts of the world that are experiencing
huge increases in infrastructure investment and where similar skills Demand in other parts of the world shortages exist. Australia is one such place where skills shortages will also compete for UK based resources are known to exist. Australian companies actively recruit in the
UK, using positive lifestyle imaging as a major draw. Gulf States
such as the UAE and Dubai in particular are also proving to be a
major attraction for ETP staff from the UK.
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1.3 Supply-side issues
Ageing Workforce. The ETB10 shows the average age of
The age profile of chartered engineers chartered engineers is 55 and increasing. This means that more is increasing, indicating an overall chartered engineers are retiring (or leaving the engineering attrition rate of engineers. industry) than are newly qualifying. The study also shows a similar
picture for incorporated engineers; more leaving than entering the
profession, resulting in a rising average age.
There is a greater than 50% chance Education. A 24% decline in A-level maths students and with that a newly qualified engineering fewer than 50% of engineering graduates going on to join their graduate will not practice his or her profession, but choose another career respective professions results in fewer entrants to the industry than route instead is leaving it.
“… there seems to be a worrying mismatch between what
employers now seek and what many graduates offer.” Sir Tom McKillop sees a greater role for business / industry to play in “We in business need to work harder to get the message into driving the education and training agenda all schools that studying STEM [science, technology, engineering, maths] subjects opens up exciting opportunities in a wide range of sectors.”
Sir Tom McKillop Chairman RBS President of the Science Council
Women and ethnic minorities are Social. The industry has traditionally been dominated by white highly under-represented males. Only 10% of the workforce is female and 3% is from
ethnic minority groups. Women and ethnic minorities are therefore, even today, highly under-represented11.
Inward / Outward migration. Whilst inward migration of Outward migration to, for example, the Gulf States, America and qualified engineers to the UK will help alleviate potential shortages Australasia will deplete the UK this can potentially be more than offset by outward migration. resource base Destinations such as the Gulf States, United States and Australasia are potentially very attractive to UK-based people.
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From 2003, ONS statistics has been showing a net loss of 85,000
British Citizens who move overseas (190,000 outward migration,
105,000 inward migration). As a proportion of the overall Approximately 350 people are lost to UK transportation industry as a workforce, transportation (ETP disciplines) accounts for result of permanent migration abroad approximately 0.43% of the workforce. It could therefore be
assumed that, of the net loss of British Citizens abroad
approximately 350 are lost from the transportation industry.
Furthermore, with the current planned projects and investment
plans in transportation around the world it is expected that there
will be an even greater drain on the UK’s skilled resources. Such
planned investments include the following:
Asia
In excess of $400bn of investment in ¾ China – Expanding mainline network by 30,000km by the Asian rail networks, primarily in 2020, 20+ city metro systems ($300bn) China and India ¾ India – Indian railways $70-80bn investment by 2012, 15+
metro lines by 2020 ¾ Taiwan – Taipei area metro 270km extensions, Circle Line
($1bn), mainline renewals ¾ Singapore – Doubling network by 2020, new
lines/extensions $30bn ¾ Hong Kong – MTR new lines/extensions $10bn+
Middle East
Up to $150bn of investment in new ¾ Saudi – 2500km N-S railway, 1000km Landbridge, 600km rail networks in the Middle East Makkah-Medhina link, Urban systems in Riyadh & Jeddah
($100bn) ¾ Dubai – Metro in construction, extensions & feeder
systems $20bn by 2020
Europe ¾ Central/Eastern Europe – rehabilitation of TENS railway Mainland Europe, as in the UK, will continue to see the redevelopment of its corridors in Poland, Romania, Hungary etc rail networks as part of a long term ¾ Ireland - $16bn investment in public transport including sustainable solution to travel needs metro, LUAS etc
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Based upon these investment plans alone, this could potentially
drive the increase in demand for resources in the rail sector by The investment plans in rail projects 100,000 people, throughout Asia, the Middle East and Europe. outlined above could increase demand for skilled resources by 100,000 Although for the most part these regions will look to educate and
train the resources locally, there will be strong demand on the UK The existing, highly skilled UK-based resources will be seen as an attractive market to source highly-skilled resources in the short term. This is target for recruitment in the short term evidenced by the visit of recent delegations from Dubai, Taiwan,
Hong Kong and Singapore. There is truly an international market
now for these scarce resources and estimates of between 1% and
2%12 of the total industry workforce could be lost to overseas
locations; i.e. between 1000-2000 each year.
Other UK Sectors
Renewable Power Generation: Currently, the UK generates less
than 2% of its energy from renewable energy sources and measures
already in place will triple the UK’s use of renewables to 5% by
2020. But to meet the EU target of 15% by 2020 will require a
massive investment plan.
The ten-fold increase in renewables that will be needed will require
an investment of £100 billion over the next 12 years, the UK
Government estimates.
Nuclear Power Generation: A combination of nuclear power
station retirements and the closing down of existing coal and oil-
fired power generation capacity that has opted out of the Large
Combustion Plant Directive (LCPD) will mean that the UK will
lose 15GW of power generation by 2016. Combining the loss of
power generation with the anticipated increase in demand, the UK
30,000 jobs generated in the will have to provide 25GW of new power generation by 2016. At a electricity generation industry will put cost of approximately £5bn per GW this represents an investment pressure for scarce resources on the transportation industry of £125bn. It is estimated that such increases in investment could
generate in the region of 30,000 new ETP positions. Undoubtedly
the transportation industry will come under increased competition
for these scarce ETP resources.
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1.4 Economic Drivers
At the time that the Industry Study was commissioned, in 2007, In 2007 predictions for UK growth was 2.5% on average through to UK economic growth was predicted to be 2.5% for the foreseeable 2012 future, through to 2012.
Similarly European growth was predicted to be 2.2% and rising, US growth to be 3.3% and world growth averaging 4%.
13 UK growth is now (2008) expected to At the time of this report, the OECD is reporting that advanced be around 1.75% economies have encountered “a near perfect storm” in financial
markets. UK growth is now anticipated to be flat in 2008 with little improvement, if not recession, in 2009. US growth has
dropped to 0.4% in 2008 with a slight improvement anticipated in 2009. Whilst growth in the Far East is expected to continue to
drive world growth, the prospects are however for significantly lower world growth than was being predicted last year.
The UK economy has, over the last Most economic commentators point to the fact that the world decade, been very sound, with record economy is basically very sound. The UK over recent years has levels of employment and high government revenues enjoyed record levels of employment and company profits have been good. All of this drives high levels of government revenue.
The ‘credit-crunch’ together with The current problems stem from the ‘credit-crunch’ which in its higher energy costs, combining with formative stages was predicted to be a relatively short-term higher levels of inflation are, however, combining to cause economic problem. However increasing fuel and energy costs are helping to uncertainty drive higher inflation and with increasing problems in the financial
sector there is a danger, though not certain, these issues will embed longer-term economic problems into the UK and world economy.
If inflationary problems, together with lower company profits and If the current levels of economic uncertainty resolve themselves in higher unemployment rates leads to lower government revenues 2008/09 then it is unlikely that then it is reasonable to expect that spending on infrastructure there will be any appreciable effect on the increasing demand for resources. projects may begin to change.
However, if government revenues It is unlikely however that any of these issues will have a bearing decline significantly then it is possible that spending on infrastructure on the demand for resources in the short term, but there may be projects will reduce implications for the medium to longer term.
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1.5 Preliminary Review - Conclusions
The conclusions drawn from the Preliminary Review (Desktop
Study) that preceded this report are: The background research that was carried out prior to the main study ¾ There is sufficient evidence to indicate that there is a skill suggests that a skills gap already 14 exists and that it is likely to increase shortage that needs addressing. ¾ Demand for resources will remain high, if not increase, for
the foreseeable future. ¾ The supply of resources will, at best, remain steady if not
decline over the foreseeable future.
It follows that, faced with increasing demand and decreasing supply the skills gap, that already exists, will worsen.
“The UK civil engineering industry faces a capacity and skills crisis.”
ICE State of the Nation: Capacity & Skills 2008
Sir James Dyson believes that a skills “We have a lot of scientific and engineering know-how. gap exists and is likely to get worse [Without action] that will shrink. We produce 25,000 engineers
a year and we have vacancies for 37,000 a year ….. we are
desperately under-producing engineers.”
Sir James believes that the answer to “Fewer and fewer young people choose to study engineering the problem lies within the education arena – he wants to ‘revolutionise’ the and design. We need to revolutionise how these subjects are way engineering and design is taught taught and nurture the Brunel, Frank Williams or Ian Callum of tomorrow.”
Sir James Dyson
Conclusion: All the evidence gathered in this Preliminary Review drives one to A skills gap already exists conclude that a skills gap exists and is only likely to worsen.
The next stage for this study is to establish the extent of the The next stage: Establish the extent of the problem problem, specifically within the Railways, Highways and and identify probable solutions Transport Planning Sector, and propose solutions15 (see below).
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Potential Solutions:
Appendix F highlights some of the current work that is ongoing
from which lessons can be learned in order to construct a coherent Appendix F highlights some potential solutions, through a series of case set of solutions that will help redress the problem that has been studies in the area of brought out by this Preliminary Review.
¾ STEM skills Below are a few examples, highlighted in Appendix F, drawn from
¾ Employer-led skills and all industries: training agenda
¾ Positive imaging for the Industry can participate in driving the education agenda, industry particularly in respect of STEM skills
¾ Driving efficiencies by ¾ Ambassadorship programmes through STEMNET and the altering behaviours through Education Business Partnership the contract terms
¾ Improving diversity Employers investing in training to provide the skills that it needs ¾ Network Rail Advanced Apprenticeship Scheme ¾ British Gas Academy ¾ Olympic Delivery Authority: London 2012
Industry support for the new 14-19 Diplomas ¾ JCB Academy ¾ London Engineering Project
Publicity, awareness and positive imaging ¾ Turn Your Talent to Teaching Campaign
Driving efficiencies by affecting behaviours through the contract terms – use of integrated teams for project delivery ¾ BAA Terminal 5
The need for greater diversity ¾ Laing O’Rourke off-site production facilities, leading to more ‘family-friendly’ working conditions ¾ Turn Your Talent to Teaching Campaign: i.e. highlighting diversity
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Section RESULTS & FINDINGS
2.1 Introduction Supply: The calculation of the current supply (2007) of professional 2 ETP (Engineering, Technical and Planning) resources is derived
from three sources:
¾ A survey of employers ¾ Membership information provided by relevant professional institutions ¾ A review of existing research reports and anecdotal evidence
Demand: The basic principle of the demand model is to take known spending plans on transportation projects, and convert that project spend into a demand for resources. Disciplines: The following discipline categories have been used:
Project Management Project Management / Quantity Surveying / Contracts & Procurement /
Programming & Planning
Civil / Structural Eng Geology & Geotechnics / Drainage / Hydraulics / Civils Structures, Tunnels, Bridges / Alignment Engineering
Technical CAD / GIS / Advanced Simulations
M&E / Comms /Systems Mechanical & Electrical / Lighting / SCADA / Surveillance & CCTV / Communications / Systems Engineering & Integration
Highway Engineering Highway Development Control / Highway Design / Highway Maintenance /
Streetscape Design /
Traffic Engineering Traffic Network Management / Traffic Prediction / Traffic Surveying / Traffic
Signing & Signalling / ITS / Highway Safety Engineering
Transport Planning Transport Strategy & Policy / Travel Planning / Land Use Planning / Transport
& Traffic Modelling / Public Transport Planning / Transport Economics
Railway Engineering Permanent Way / EMC / Power / Rail Signalling / Rolling Stock Station
Engineering / Architectural Design / Lifts & Escalators / HVAC Audit / Assurance Quality Assurance / Measurement & Control / Testing
H&S / Environment Health & Safety / Environmental Engineering / Fire Engineering / CDM
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2.2 Supply and Demand
2.2.1 ETP disciplines - Overall See Appendix B for a full description of the methodology Based on the analysis of employers’ vacancy rates for specific skills adopted to obtain both supply and and reported skills shortages in the subject areas, we estimate an demand data overall current labour shortage of approximately 10%. See Appendix C for the detailed supply data and evidence base The demand model indicates that the total requirement for ETP
disciplines in transportation currently stands at approximately A shortfall of 10% in ETP 96,900 nationally, compared with supply figures of 87,400 across all disciplines currently exists disciplines. We therefore have a current total shortage of 9,500.
ETP supply resource is 87,400 The area with highest demand for resource –and also with the compared with a current demand of 96,900. greatest shortage in terms of numbers – is that of generic ETP disciplines within the railways sector. The shortage is 9,500
Generic disciplines are those which could be utilised across the
Generic ETP disciplines account for whole of the industry, road and rail; they include project the areas of greatest shortage management, civil, technical, M&E / communications, audit and
health and safety engineering. As applied to transport (Road and Generic disciplines account for 63% Rail) as a whole, they account for approximately 63% of the total of the demand and 69% of the total shortfall requirement and 69% of the total shortfall.
Of the more specialised transport ETP disciplines – planning,
Within the specialist disciplines, highway and traffic engineering, rail and station engineering – it is traffic engineering has the greatest traffic engineering which appears to have the highest shortfall level of shortfall expressed in percentage terms - 16% expressed as a percentage (16%), while transport planning and rail engineering have the largest national shortages of approximately
1,000 individuals each.
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Notes: 1. For the purpose of this report, the numbers presented in the tables
below have been rounded to the nearest 10 or 100 as appropriate, therefore Transport planning and rail engineering have the largest shortfall columns and rows may not sum precisely. expressed in absolute terms – 1000 2. The estimated shortfall is expressed as % of demand. short in each disciplines
Table 2.1 National Demand / Supply Estimates for 2007 & 2013 –
Principal Category Totals 2007 Estimated Current Demand Shortage Shortage Resource %
All Transport ETP (UK) 96900 87400 10% 9500
Transport Planning 15800 14700 7% 1100 Highway Engineering 4020 3640 9% 380
Traffic Engineering 990 830 16% 160 Generic Engineering Skills 15300 13600 11% 1700 – Road Highways - Total 20310 18060 11% 2250
Railway Engineering – Rail 13200 12100 8% 1100 Railway Engineering – 1770 1570 11% 200 Stations Generic Engineering Skills 45800 40900 11% 4900 - Rail Railways - Total 60770 54570 10% 6200
2013 Estimated Available Demand Shortage Shortage Resource %
All Transport ETP (UK) 112500 83000 26% 29500
Transport Planning 16800 14000 17% 2800 Highway Engineering 4390 3460 21% 930
Traffic Engineering 1040 780 25% 260
Generic Engineering Skills 17400 12300 29% 5100 – Road Highways - Total 22830 16540 28% 6290
Railway Engineering – Rail 14200 11500 19% 2700
Railway Engineering – 3110 1490 52% 1620 Stations Generic Engineering Skills 55600 39400 29% 16200 - Rail Railways - Total 72910 52390 28% 20520
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This implies that the greater part of the requirement is related to skills that are to some degree transferable – within the transport
sector between road and rail as well as to and from other sectors such as construction (e.g. housing, commercial property and the
built environment generally).
Whilst for generic skills the short term answer to shortages is to re-
skill and up-skill resources that are shed from other construction and engineering sectors, to suit the requirements of transportation
the same cannot apply to the specialist skills.
By definition the specialist skills (for example, rolling stock
engineers) can only be sourced from within the industry, and not
from other sectors. The first step therefore has to be to retain or
protect the resource pool that currently exists. This will be achieved
by putting in place staff retention measures, such as improved
employment conditions. Secondly more resources will have to be
sourced from overseas. The first step in this process is to ensure
that the specialist skills that are in short supply are included on the
Home Office Shortage Occupation List. At the same time
recruitment and training programmes need to be put in place that
will address shortage issues in the longer term.
In turn, this implies that solutions that focus on retraining and The largest part of the shortfall can be filled by re-training resources from redeployment will have a higher impact in the short term than other sectors to suit the requirements would be the case if the transport sector comprised mainly rigidly of the transport sector specialised professionals and technicians.
2.2.2 ETP disciplines – London
We have made an estimate of the current ETP demand and supply situation for Greater London. While we have anecdotal reports that
the shortage of ETP personnel can be a little more acute in the London region than elsewhere in the UK, there is little direct
evidence by which we may quantify any shortfalls in specific disciplines. Certainly at the level of senior ETP personnel, there is
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in this sector a degree of workforce mobility, so regional differences
in resource availability are less defined and therefore less of an issue
London accounts for approximately than in some other sectors. The estimates given below are derived 20% of total demand for ETP by applying recent analyses carried out by the Construction sector resources on regional activity projections and by identifying specific large The specialist disciplines in shortest London-centred projects which feature in the projected labour supply in London are Transport Planning and Rail Engineering demand model.
Table 2.2: London Demand / Supply Estimates for 2007 & 2013 – Principal Category Totals 2007
Estimated Current Demand Shortage Shortage Resource %
All Transport ETP 19400 17500 10% 1900 (London)
Transport Planning 3160 2940 7% 220
Highway Engineering 800 730 9% 70
London 2007 Traffic Engineering 200 160 20% 40 Generic Engineering Skills 3060 2720 11% 340 – Road
Highways - Total 4060 3610 11% 450
Railway Engineering – 2640 2420 8% 220 Rail Railway Engineering – 350 310 11% 40 Stations Generic Engineering Skills 9160 8180 11% 980 – Rail Railways -Total 12150 10910 10% 1240
2013
Estimated Available Demand Shortage Shortage Resource %
All Transport ETP 22500 16600 26% 5900 (London)
Transport Planning 3360 2800 17% 560 London 2013 Highway Engineering 880 690 22% 190 Traffic Engineering 210 160 24% 50 Generic Engineering Skills 3480 2460 29% 1020 – Road Highways – Total 4570 3310 28% 1260 Railway Engineering – 2840 2300 19% 540 Rail Railway Engineering – 620 300 52% 320 Stations Generic Engineering Skills 11120 7880 29% 3240 – Rail Railways – Total 14580 10480 28% 4100
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2.2.3 Transport Planning
Transport Planning is a very active, growing and diversifying area, characterised by a wide range of skills which are variously
specialised and transferable to some degree. A recent report from the Universities’ Transport Partnership Employers Forum in 2007
identified plans by leading employers to grow by approximately one- Transport Planning is a growing quarter (24%) over the following two years. An earlier (2002) report area of the industry 16 from the TPSI (Transport Planning Skills Initiative) estimated that approximately 900 new entrants would be required each year to
cover growth and replacements for retirement and other losses. Both the total population as estimated by the UTP study and the Up to 24% growth anticipated by major employers over a 2-year period requirement estimated by the TPSI study are in line with our estimates of current demand and shortfall.
Transport and traffic modelling accounts for a significant
proportion of activity within transport planning – although it is difficult to establish with any degree of certainty what is the
It is difficult to model the sub- population of and requirements for modellers, because of overlaps disciplines within Transport as far as this discipline is concerned, between Transport Planning Planning with a high degree of accuracy and Traffic Engineering - and the degree to which individuals employed in the latter sector can be redeployed as required, with
appropriate training.
We estimate that there may be a need for between 500 and 1,000 specialist traffic modellers nationally; however the demand model
This shortfall is consistent with the predicts a smaller requirement (see detailed discipline breakdown, UTP / GoSkills submission to the shown in the appendix). Our demand model is driven primarily by Migration Advisory Committee April 2008. projections for new capital projects. The activities that make up transport planning are, by definition, carried out well in advance of
the projects themselves and so it is possible that in this area the model may understate the demand as well as not recognise the need
for modellers that would arise out of everyday highway engineering and maintenance programmes.
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Our estimate of a 7% overall shortage of transport planning Our estimate of Transport Planning vacancies broadly correlate with the specialists as derived from our analysis of employers’ vacancy rates Harman & Lyons Report in 2003 is a little higher than the 4% predicted in a 2003 (Harman and
Lyons) report for 2008 on delivering local transport responsibilities,
but in line with the 12% rate predicted in that report for 2012.
Table 2.3: Demand / Supply Estimates for 2007 & 2013 – Transport
Planning Specialists
2007 Estimated Transport Planning Current Demand Shortage Shortage 2007 Resource % Transport Planning 2007 Transport Planning General + Economics + 15800 14700 7% 1100 Travel Planning + Modelling
2013 Estimated Transport Planning Available Demand Shortage Shortage 2013 Resource Transport Planning 2013 % Transport Planning General + Economics + 16800 14000 17% 2800 Travel Planning + Modelling
2.2.4 Highways
Highway Engineering Specialists
The specialist discipline of highway design accounts for
approximately three-quarters of the requirement in terms of both demand for and shortfall of highway engineering ETP (Engineering,
Technical and Planning) personnel.
Table 2.4: Demand / Supply Estimates for 2007 & 2013 – Highway Engineering Specialists
2007 Estimated Current Demand Shortage Shortage Resource % Highway Engineering 4030 3640 10% 390 Highway Engineering is showing a Highway Design + 2950 2650 10% 300 10% shortfall Development Control Highway Safety 490 450 8% 40 Highway Design accounts for 77% Engineering Highways Engineering + of the shortage within the broader 250 230 8% 20 category of Highway Engineering Maintenance Streetscape Design 340 310 9% 30
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2013 Estimated Current Demand Shortage Shortage Resource % The shortage of Highways engineers Highway Engineering 4390 3460 21% 930 rises to 21% in 2013, with Highway Design + 3270 2520 23% 750 highways design and development Development Control control being of particular concern at Highway Safety 550 430 22% 120 23% or 750 people Engineering Highways Engineering + 240 220 8% 20 Maintenance Streetscape Design 330 290 12% 40
Traffic Engineering Specialists Traffic Engineering is a highly specialised area with a total
Traffic Signalling specialists are in population in the UK of approximately 1,000 practitioners. About particularly short supply, with an two-thirds of these are traffic signing and signalling engineers and it estimated shortage of 19% is in this sub-category, or discipline, that employers report the highest percentage shortfall of qualified and experienced personnel,
of 19%.
Recent anecdotal evidence via the IHT (Institution of Highways and Transportation), indicates that there are shortages of junior and field
ETP staff in the area of ITS (Intelligent Transport Systems), particularly in systems integration.
Table 2.5: Demand / Supply Estimates for 2007 & 2013 – Traffic Engineering Specialists 2007 Estimated Current Demand Shortage Shortage Resource % Traffic Engineering 980 830 15% 150 There is currently a 15% shortage in Traffic Engineering + Traffic Engineering Design + Regulation + 350 320 9% 30 ITS + Surveying Traffic Signing & 630 510 19% 120 Signalling 2013 Estimated Available Demand Shortage Shortage Resource % Traffic Engineering shortages to rise Traffic Engineering 1040 780 25% 260 Traffic Engineering + to 25% by 2013 Design + Regulation + 370 300 19% 70 ITS + Surveying Traffic Signing & 670 480 28% 190 Signalling
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Generic Skills for Highway Engineering Projects Generic skills in Highway There appears to be a particular shortage of personnel with Engineering that are in particular shortage are those that require specialist technology skills and qualifications – eg: CAD, systems specialist technology skills engineering and integration, testing and control, environmental
engineering.
These are generic skills in that they can be applied across both the rail and general construction sectors. This indicates that there may
be a national need to focus attention on these disciplines and their associated technologies, including providing appropriate training to
facilitate deployment into specific activity sectors.
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Table 2.6: Demand / Supply Estimates for 2007 & 2013 – Generic Skills for Highway Engineering Projects
2007
Estimated Current Demand Shortage Shortage Resource % Overall: Generic Skills for Highway Engineering: 15280 13630 11% 1650 Project Management, Civil, Technical,M&E / Comms, Audit, HSE
Project Management – 7570 6820 10% 750 Road
Project Management 1550 1400 10% 150
Quantity Surveying/Cost 1900 1710 10% 190 Management Contracts & Procurement 2560 2300 10% 260
Programming/Planning 1560 1410 10% 150
Civil/Structural Engineering & 2710 2490 8% 220 Surveying – Road Geology, Geotechnics & 370 340 8% 30 Soil Mechanics Generic Skills Drainage 810 750 7%60 Highways - 2007 Tunnels / Bridges / Retaining Structures etc. 1180 1080 8% 100 + Alignment Engineering + Hydraulics Engineering
Land Surveying 350 320 9% 30
Technical – Road 570 490 14% 80 CAD (Computer Aided Design) + GIS + 570 490 14% 80 Advanced Simulations M&E, Comms, 1960 1700 13% 260 Systems – Road M+E 510 460 10%50 Lighting Design 170 150 12% 20 SCADA 150 130 13%20 Communications + 690 610 12% 80 Security Systems Engineering & 310 240 23% 70 Systems Integration Intelligent transport 130 110 15% 20 systems Audit / Assurance 810 680 16% 130 Inspection – Road Quality Assurance 80 70 13% 10 Testing + Measurement 730 610 16% 120 & Control Health, Safety & 1660 1450 13% 210 Environment – Road Health & Safety 180 160 11% 20 Environmental Engineering + Fire 860 730 15% 130 Engineering Asset Management + 620 560 10% 60 CDM Coordination
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2013 Estimated Available Demand Shortage Shortage Resource % The shortage in generic skills in Overall: Generic Skills for Highway Highway Engineering rises from Engineering: 17390 12120 30% 5270 11% to 30% in 2013 Project Management, Civil, Technical,M&E / Comms, Audit, HSE
Project Management – 8320 6150 26% 2170 Road Project Management 1900 1260 34% 640 Quantity Surveying/Cost 2100 1540 27% 560 Management Contracts & Procurement 2630 2080 21% 550 Programming/Planning 1690 1270 25% 420 Civils / Structural shortages are Civil/Structural particularly high at 29% Engineering & 3570 2260 37% 1310 Surveying – Road Geology, Geotechnics & 430 310 28% 120 Soil Mechanics Drainage 810 680 16%130 Tunnels / Bridges / Retaining Structures etc. 1880 980 48% 900 + Alignment Engineering + Hydraulics Engineering Land Surveying 450 290 36% 160 Technical – Road 630 440 30% 190 CAD (Computer Aided Design) + GIS + 630 440 30% 190 Advanced Simulations M&E, Comms, 1950 1340 31% 610 Systems – Road M+E 860 410 52%450 Lighting Design 200 140 30% 60 *Note: Due to the decline in the SCADA 40 40 0%*0 Communications + spending plans figures in later years, 430 430 0%* 0 the model suggests a potential over Security Systems Engineering & supply in these disciplines. 300 220 27% 80 Systems Integration Furthermore, the numbers in each Intelligent Transport 120 100 17% 20 discipline are relatively low in the systems context of a 7 year spend plan Audit / Assurance 960 610 36% 350 Inspection – Road Quality Assurance 90 60 33% 30 Testing + Measurement 870 550 37% 320 & Control Health, Safety & 1960 1320 33% 640 Environment – Road
Health & Safety 320 150 53% 170
Environmental Engineering + Fire 870 660 24% 210 Engineering Asset Management + 770 510 34% 260 CDM Coordination
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2.2.5 Rail
Rail Engineering Specialists Rail sector forecasts and reported vacancies indicate particular
shortages in the permanent way and rail signalling disciplines, although the discipline with the highest percentage reported Permanent Way engineers and rail signalling are specialist skills with a shortage is that of rail power engineering (14% compared with 8% particular shortage for all rail engineers).
A TfL Engineering and Construction Skills report of 2006 estimated
an annual requirement of 600 additional engineers and technicians – with only 200 entering these disciplines each year, leaving a growing
shortfall of 400 each year. Our estimates of population and analysis of reported vacancy rates indicate a slightly higher shortage.
Table 2.7: Demand / Supply Estimates for 2007 & 2013 – Rail Engineering Specialists
2007
Estimated Current Demand Shortage Shortage Resource % Railway Engineering – 13200 12100 8% 1100 Rail
Permanent Way 6550 6000 8% 550 Railway engineering shortage is EMC 360 340 6%20 1100 – 8% Power 1460 1260 14%200 Rail Signalling + Train Permanent Way engineers account 3600 3350 7% 250 for over half of this shortfall and Traffic Control Rolling Stock 1250 1200 4% 50
2013
Estimated Available Demand Shortage Shortage Resource % Railway Engineering – 14200 11240 21% 2960 According to the model, railway Rail engineering shortages peak in 2012 at 4000 and then drop. Permanent Way 5420 5420 0%* 0 EMC 370 320 14%50 Power 1500 1190 21%310 *Note: Due to the decline in the Rail Signalling + Train spending plans figures in later years, 3590 3180 11% 410 the model suggests a potential over and Traffic Control supply in these disciplines. Rolling Stock 3360 1130 66% 2230
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Station Engineering Specialists
Table 2.8: Demand / Supply Estimates for 2007 & 2013 – Station Engineering Specialists
2007 Estimated Current Demand Shortage Shortage Resource % Railway Engineering – 1770 1570 11% 200 Stations Station Design +Engineering + Fit Out 1250 1100 12% 150 + Fare Collection HVAC – Heating, Ventilation & Air Con/ 100 90 10% 10 Building Services Lifts/Escalators 420 380 10% 40
Shortages for station engineering 2013 Estimated specialists rise from 11% in 2007 to Available Demand Shortage Shortage Resource 52% or 1610 in 2013 % Railway Engineering – 3110 1500 52% 1610 Stations
Station Design +Engineering + Fit Out 2220 1050 53% 1170 + Fare Collection HVAC – Heating, Ventilation & Air Con/ 170 90 47% 80 Building Services Lifts/Escalators 720 360 50%360
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Generic Skills for Rail Engineering Projects Table 2.9: Demand / Supply Estimates for 2007 & 2013– Generic Skills for Rail Engineering Projects 2007 Estimated Current Demand Shortage Shortage Resource % Overall: Generic Skills for Rail Engineering: Project Management, 45740 40860 11% 4880 Civil, Technical, M&E / Comms, Audit, HSE
Of the overall shortfall of 9,500 in Project Management - 22700 20430 10% 2270 2007, generic skills such as project Rail management, quantity surveying etc, Project Management 4650 4190 10% 460 account for nearly half, totalling Quantity Surveying/Cost 5690 5120 10% 570 4400 Management Contracts & Procurement 7670 6900 10% 770 Programming/Planning 4690 4220 10% 470 Civil/Structural Engineering & 8130 7490 8% 640 Surveying - Rail Geology, Geotechnics & 1110 1030 7% 80 Soil Mechanics
Drainage 2440 2240 8%200
Tunnels / Bridges / Retaining Structures etc. 3530 3250 8% 280 + Alignment Engineering + Hydraulics Engineering Land Surveying 1050 970 8% 80 Technical - Rail 1700 1460 14% 240 CAD (Computer Aided Design) + GIS + 1700 1460 14% 240 Advanced Simulations M&E, Comms, 5860 5110 13% 750 Systems – Rail
M+E 1540 1370 11%170
Lighting Design 520 450 13% 70 SCADA 440 400 9%40 Communications + 2060 1830 11% 230 Security Systems Engineering & 910 730 20% 180 Integration Intelligent Transport 390 330 15% 60 systems Audit / Assurance 2400 2020 16% 380 Inspection - Rail Quality Assurance 240 200 17% 40 Testing + Measurement 2160 1820 16% 340 & Control Health, Safety & 4950 4350 12% 600 Environment - Rail Health & Safety 530 480 9% 50 Environmental Engineering + Fire 2560 2180 15% 380 Engineering Asset Management + 1860 1690 9% 170 CDM Coordination
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2013 Estimated Available Demand Shortage Shortage Resource % Overall: Generic Skills for Rail Engineering: Project Management, 55560 38810 30% 16750 Civil, Technical, M&E / Comms, Audit, HSE
Project Management - 26600 19710 26% 6890 Generic Skills – Rail Rail 2013 Project Management 6070 4040 33% 2030 Quantity Surveying/Cost 6700 4940 26% 1760 Management Contracts & Procurement 8420 6660 21% 1760 Programming/Planning 5410 4070 25% 1340 Civil/Structural Engineering & 11380 7220 37% 4160 Surveying - Rail Geology, Geotechnics & 1370 990 28% 380 Soil Mechanics Drainage 2590 2160 17%430 Tunnels / Bridges / Retaining Structures etc. 6000 3130 48% 2870 + Alignment Engineering + Hydraulics Engineering Land Surveying 1420 940 34% 480 Technical - Rail 2020 1410 30% 610 CAD (Computer Aided Design) + GIS + 2020 1410 30% 610 Advanced Simulations M&E, Comms, 6230 4310 31% 1920 Systems – Rail M+E 2730 1320 52%1410
Lighting Design 640 440 31% 200 *Note: Due to the decline in the spending plans figures in later years, SCADA 140 140 0%*0 Communications + the model suggests a potential over 1380 1380 0%* 0 Security supply in these disciplines. Systems Engineering & 960 710 26% 250 Furthermore, the numbers in each Integration discipline are relatively low in the Intelligent Transport 380 320 16% 60 context of a 7 year spend plan systems Audit / Assurance 3070 1960 36% 1110 Inspection - Rail Quality Assurance 300 200 33% 100 Testing + Measurement 2770 1760 36% 1010 & Control Health, Safety & 6260 4200 33% 2060 Environment - Rail Health & Safety 1030 470 54% 560 Environmental Engineering + Fire 2770 2100 24% 670 Engineering Asset Management + 2460 1630 34% 830 CDM Coordination
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There appears to be a particular shortage of personnel with Of the generic skills, those which are specialist technology skills and qualifications – eg: CAD, systems more technology based appear to be the ones in shortest supply, such as engineering and integration, testing and control, environmental systems engineering, environmental engineering. These are generic skills in that they are also required in engineering etc. the road and construction sectors, which indicates that there may be
a national need to focus attention on these focus attention on these
disciplines and their associated technologies, including providing
appropriate training to facilitate deployment into specific activity
sectors.
2.2.6 Generic Disciplines
Project Management Our survey prompted ad-hoc mentions of a scarcity of individuals
experienced and skilled enough to act as project managers and a reported vacancy rate of approximately 4%. A 2003 (Harman and There are certain difficulties with measuring the shortage rate for Lyons) report indicated vacancies running at approximately 5%, a project managers, because they more recent report (ACE Skills Shortage Survey 2007) claimed invariably have other, more specialist, skills. vacancy rates are in excess of 17%. Requirements for Project Managers are difficult to measure, as can be seen from the wide Other reports have estimated skills gaps of between 4% (Harman & range of estimates arising from different surveys. Most project Lyons 2003), and 17% (ACE managers in these sectors are experienced and highly-qualified 2007). engineers by profession, so it is difficult to identify project managers Our estimate is a shortage of 10% as a separate discipline. We have estimated a percentage shortage of
10%, starting with a mid-point of vacancy rates reported by our survey and others, rated upwards in line with anecdotal evidence
received.
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Civil Engineering
8% shortage exists for Civil Shortages of Civil Engineers, Structural Engineers, Surveyors and Engineering related disciplines have been reported at: 3% (Construction Skills
Network 2007), 5% (Mind the Skills Gap, Academy for Sustainable Communities), 10% (Built Environment Professional Services Skills
Survey, Construction Industry Council 2004), and 14% (ACE Skills Shortage survey 2007). Employers in our own survey reported
vacancies of about 4%. For the purpose of analysis, we have taken a mid-point of 8% as a reasonable estimate of the likely current
shortage across these disciplines.
CAD / GIS 14% shortage in CAD/GIS Two reports in 2003 (Harman and Lyons and the Built
Environment Professional Services Skills Survey, Construction Industry Council)) indicated shortages in CAD / GIS / other
technical disciplines running at approximately 10%. Our more recent study indicated vacancies at 14%, which would seem a
reasonable estimate of the current shortage, given anecdotal evidence from consultant engineers of a lack of capacity in these
areas.
11% – 13% shortage in M&E Mechanical & Electrical Engineering engineering The ACE report Skills Shortages 2007 claims vacancies of 12% and
15% in Mechanical and Electrical disciplines respectively, while our surveyed employers reported similar vacancy rates of between 11%
and 13% for a range of specific disciplines. We have identified significantly higher proportional shortages, however, in Systems
Engineering / Integration and in Intelligent Transport Systems.
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2.2.7 Requirements by Grade
The inputs to our demand model include the specification of levels of ETP personnel required to implement transportation capital projects.
Thus, we can predict the number of Senior grades, Technician grades
and Graduate-level resources required – as summarised below for the current year. The proportions and the overall differ between the
categories, but do not change year on year.
Table 2.10 Requirements by Grade
ETP Workforce – Composition by Grade Transport Planning and Traffic
Engineering show a low Transport Planning 27% 58% 15% percentage of resource at graduate Traffic Engineering 23% 61% 16% level. Highway Engineering 13% 40% 47% This may indicate a future Railway Engineering - Rail 31% 40% 29% problem as senior level resources Railway Engineering - Stations 28% 47% 25% retire Project Management 26% 45% 29% Civil / Structural 20% 43% 37% Technical (CAD, GIS) 25% 48% 27% M&E, Comms, Systems 16% 46% 38% Audit / Assurance / Inspection 43% 50% 7% Health / Safety / Environment 30% 50% 20% Senior Technician Graduate
Estimated requirements by Senior Technician Graduate grade (2007) 24950 45350 26500 Total Demand (26%) (47%) (27%) Transport Planning 4300 9200 2200 Highway Engineering 540 1600 1900 Traffic Engineering 250 600 150 Railway Engineering - Rail 4100 5300 3800 Railway Engineering - Stations 500 850 430 Project Management 7900 13500 8900 Civil / Structural 2100 4700 4000 Technical 560 1100 610 M&E, Comms, Systems 1300 3600 3000 Audit / Assurance / Inspection 1400 1600 210 Health, Safety And Environment 2000 3300 1300
NB: Graduate = 1-5 years experience, technician = 5-15 years experience, senior = 15+ years experience
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The analysis has identified where there currently is, and expected to
continue to be, a particularly strong call for new entrants into the
industry, as graduates and qualified trainees.
Aside from the generic category of Project Management (which
includes quantity surveying, procurement and programming), the key
areas of requirement for graduates are Civil / Structural Engineering,
Rail Engineering and M&E / Communications.
The analysis above, however, needs to be set in the context of UK
demographics. The table below shows how the UK population
changes between now and 2020. Table 2.11: Changing Demographics to 2020
Source: Government Actuary Dept. The demographic challenges are: The declining numbers of school age children will present a particular ¾ Declining school challenge to the industry and will make it difficult to sustain the population; therefore fewer entrants to the numbers of people entering the industry workforce. industry The numbers of senior people of over 15 years experience (over 35
¾ Declining numbers of age group) also poses a serious challenge to the industry. It would senior, experienced, follow that the technician grades (5-15 years experience) will be taking people; management structures will become a far greater burden of responsibility and management structures will very flat become very flat.
¾ A three-fold number of Retirees from the industry are likely to increase from currently retirees each year from the industry, from 1000 approximately 1000 per year to 3000 per year by 2020 (See also to 3000 appendix B.2.2)
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Another demographic challenge is in the area of diversity. According to the ETB’s 2008 report whilst female students’ achievements at GCSE level STEM subjects are equal to male students (when the subjects are compulsory), the figures become quickly out of balance at FE (Further Education) and HE (Higher Education) levels, and beyond. For example in Engineering, Maths and Technology subjects at FE there is a 86/14 ratio of men to women, compared to 39/61 across all areas of learning. Furthermore, women’s representation in engineering generally at professional level has remained reasonably constant at only 5% from 2001. The ETB report is suggesting that a rethink of recruitment and retention policies is needed to address this situation.
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Section SOLUTIONS
3.1 Introduction to Solutions
The solutions have been derived from a series of background 3 studies, workshops, consultations and surveys. The results have
subsequently been categorised and prioritised.
See also: Appendix D: Solutions Three objectives were identified: Appendix E: Case Studies
Three objectives: ¾ Increase the resource pool ¾ Increase the resource pool ¾ Increase skill levels within the resource pool ¾ Increase skills level ¾ Increase efficiency ¾ Increase efficiencies so that the existing resources work more effectively
The solution sets fall into three categories: The solution sets fall into 3 categories: Education & Training: Through the consultation process, ¾ Education & Training ¾ Recruitment & Retention education & training is seen as the single most important area in ¾ Efficiencies which solutions should be focussed.
Key outputs from the consultation process, relating to education Employers need to drive the education agenda, and their and training are: involvement can be seen in several ways, including Employers should: ¾ Direct investment ¾ Invest directly in education ¾ Contribute to the design of ¾ courses Liaise with education providers to contribute to the design ¾ Support education providers of relevant courses and the delivery of courses
¾ Direct input into the education Support education providers by participating in the agenda will result in ‘demand-led’ education process education, which in turn will give the industry what it needs
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Recruitment & Retention: The industry needs to compete with Competition for skilled resources comes from other industries other industries, and overseas employers, in order to recruit and domestically as well as from overseas retain the most skilled people.
Key outputs from the consultation process, relating to recruitment
and retention are:
As well as direct recruitment activity, ¾ Influencing the education choices of school-age children the industry needs to ‘influence’ both through to under-graduates education choices and career choices from a very early stage ¾ Influencing the career choices of graduates and mid-
career employees ¾ Direct recruitment of skilled resources from overseas
A programme of ‘positive imaging’ Underpinning the improvements in recruiting and retaining the will support efforts to recruit and retain more resources by influencing most skilled people will be a process of Positive Imaging. the education and career choices
Through the consultation process the industry was quite clear in expressing a desire to present a much more positive image of itself.
This was seen as a key factor in engendering interest in students, in attracting them into the industry and, furthermore, it was seen as a
key element in retaining skilled resources for longer and not losing them to other industries or professions.
Positive imaging should target The recruitment of women and ethnic minorities, in particular, women and ethnic minorities would be benefit greatly from a campaign that demonstrates that there is a place in the industry for these under-represented groups.
From data collected by HESA (Higher Education Statistics Agency) approximately only 5% of people entering the industry from full
time education are women. This compares with those who take A- Level STEM subjects (Science, Technology, Engineering, Maths).
If the same percentage (35%) were to transition into the industry then the annual intake of women would rise from 25 to 180. This
represents a 7-fold increase which could be gained from nothing more than presenting a more positive ‘women-friendly’ image of the
industry.
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The establishment of a Transportation and Engineering Media The establishment of a Transport and Engineering Media Centre is Centre would form a key part of implementation of this solution key to creating good publicity which area. Key outputs from the consultation process: in turn will influence career decisions
¾ Establishment of a media centre for the industry with a
view to lobbying, preparation of materials, staging of
events, targeting of key audiences, securing exposure
and creating messages with impact. The Science Media Centre can be used as a model The model for the media centre could be taken from the Science
Media Centre whose remit is, amongst other things:
“…. to facilitate more scientists to engage with the media, in the
hope that the public will have improved access to accurate,
evidence-based scientific information about the stories of the day.”
Efficiencies: By working more effectively the industry will obtain greater productivity from its existing resources. Proposals put
forward by Latham (1994)17 and Egan (1998)18 are still relevant, such as the removal of bespoke contracts and the replacement with
a single common suite of contracts. Equally important is the need to increase the proportion of projects carried out by integrated
teams and integrated supply chains (Egan 2001)19.
A more efficient industry will create Key outputs from the consultation process: savings both in numbers of resources ¾ Avoid bespoke contracts as well as financial savings that can be re-invested back into the solution ¾ Standardise on one single suite of contracts – NEC320 sets, such as education. ¾ Move towards 50% of projects being carried out by
integrated teams and supply chains
Studies, such as that carried out by Egan (Accelerating Change
2002) show that projects executed by an integrated team deliver
higher levels of customer satisfaction and levels of profitably some
2 percentage points higher than the industry average.
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An integrated team is built around common values, objectives and
processes incorporating continuous improvement through
performance management, where risk and reward are shared
equitably.
Overcoming barriers to implementation
Three barriers to the implementation of these solutions were The barriers to implementation lie in: identified:
¾ An industry that is fragmented and lacks ¾ The industry is fragmented and lacks cohesion cohesion ¾ The lack of visibility of forward workload is a deterrent to
¾ An unpredictable forward major investment in education and training in particular workload that impedes ¾ Industry protection of profitability investment decisions
¾ Profitability The first two barriers can be overcome by the appointment of an
industry ‘Champion’ who will both coordinate the implementation The barriers can be overcome by: of the solutions sets as well as be a point of contact between
¾ the appointment of an government and industry to improve the industry’s ability to industry ‘Champion’ forward plan its workload, and therefore its investment programme.
¾ Creating efficiencies through Generating greater profits in the industry, by implementing best- best-practice procurement practice procurement will provide the incentive to invest more in the solution sets.
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3.2 Solution Identification - Stages
The solutions that follow in 2.3 are grouped into stages according to
By categorising the solution sets into a timeline, as follows: ‘stages’ it allows the targeting of specific solutions to the areas that Table 3.1: Solution Implementation Stages will give greater benefit Solution Age Purpose / Target area Stage
1 5-18 STEM Skills (Science, Technology, Create the right skills Engineering, Maths) Raising skill levels in STEM subjects including supporting existing teaching resources
2 13-14 Awareness & Interest Raise awareness and interest Raising awareness of, and interest in, ETP disciplines (engineering, technical and planning) as an area that has good career potential. Targeting women and ethnic minorities in particular
3 14-19 Career Choices – 1 Laying the foundations for a later career choice into engineering (ETP) including the use of ‘positive imaging’ and targeting women and ethnic minorities
4 18-22 Course Content Ensuring that courses meet the needs of industry
5 21-23 Career Choices – 2 Influence career choices Encouraging students to move into transportation rather than other disciplines or industries Positive imaging will support this stage, and help raise the ‘capture rate’. Targeting women and ethnic minorities also applies at this crucial transition stage
Improve the ‘capture rate’ 6 18-65 Recruitment / Retention Encouraging people from overseas and other industries to join transportation. Encouraging people to remain in the industry and extend their career in transportation Positive imaging will assist this stage of implementation Work more efficiently to help decrease overall demand and create 7 n/a Working practices / organisation savings for future investment Ensuring the industry is organised in such a way that it makes most efficient use of its resources
8 13 - 65 Positive Imaging Ensuring that positive images of the industry are passed on to young children, students, women and The whole process supported by ethnic minorities and the public at large Good publicity 9 n/a Coordination & The solutions will be more effective if properly Good coordination coordinated
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3.3 Detailed Solution Sets
The solutions for overcoming the skills gaps all work towards the
Objectives of the solution sets are: need to: ¾ Increase the size of the ETP (engineering, technical and ¾ Increase the resource pool ¾ Increase the skill level planning) resource pool ¾ Work more effectively / ¾ Increase the skill level of the ETP resource pool efficiently ¾ Make better use of resources by working more efficiently, which in turn will provide the savings that can be
reinvested in both skills training and recruitment & retention initiatives
The solution sets fall into the The solution sets that meet these objectives fall into the following following categories: categories
¾ Education & Training ¾ Recruitment & Retention Education and Training: ¾ Efficiencies The industry needs to invest in, drive and influence the education Supported by: and training agenda. This may include sponsoring dedicated
¾ The establishment of a engineering skills academies, the establishment or expansion of Transport and Engineering dedicated advanced apprenticeship programmes, support for such Media Centre initiatives as the London Engineering Project and ambassadorship ¾ An industry champion to programmes. coordinate and drive
implementation of the solutions Support for the new 14-19 Diploma in Engineering and/or
Construction and the built environment is seen as a key part of the Key initiatives include: education agenda that will deliver more people into the industry in ¾ Supporting the new 14-19 the future. Support for this qualification may range from the Diploma qualification provision of work-based learning opportunities, ambassadorship ¾ Sponsorship of specialist and sponsorship of schools academies that deliver the curriculum. courses Partnering with education providers in the design of education and ¾ Sponsorship of employees training programmes should be seen as a priority, as is the taking Masters and Doctorate level degrees investment in specialist qualifications at masters and doctorate levels.
The key message is that the education agenda has to be demand- In summary the education and training programmes should be led demand-led, rather than centrally planned in order to meet the needs of the industry.
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Recruitment and Retention:
A recruitment and retention Employers need to be more influential in the career choices that programme embraces not just ‘getting students make. Furthermore, the industry can do more to recruit more in’ but also ensuring that the ‘churn rate’ in the industry is kept skilled resources both from other industries and overseas. as low as possible Better rewards, flexible rewards systems and the creation of more
‘family-friendly’ working conditions will all contribute towards
improving the pulling power of the industry.
The targeting of women and ethic minorities, who are currently Women and ethnic minorities are under-represented and therefore hugely under-represented in the industry should be seen as a key represent a ‘new’ recruitment pool priority.
The whole process should be underpinned by a campaign of Greater publicity and the creation of a more positive image underpins the publicity and ‘positive imaging’ to support the efforts that both recruitment and retention efforts recruit and retain more people.
An effective recruitment and retention strategy should include:
¾ Influence students’ education and career decisions through ambassadorship programmes and other direct involvement
with the education sector
¾ Target other industries and skilled resources from overseas
¾ Target women and ethnic minorities
¾ Structure a rewards system that takes into account
competition for the scarce, skilled resources the industry needs. Always understanding that competition comes both
from other major sectors in the UK such as power generation, power transmission, nuclear and utilities
industries, as well as from attractive overseas locations that have expanding transportation programmes, for example in
the Middle East, Far East and Australasia.
¾ Underpin recruitment and retention campaigns with a
coordinated programme of publicity and positive imaging
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Efficiencies:
The industry needs to work more effectively and more efficiently,
thus achieving much more, with fewer resources. This will have a
dual benefit:
¾ It will have the effect of depressing the demand for A more efficient industry will require fewer resources to achieve a greater resources (i.e. fewer resources will achieve more output) output ¾ It will create savings that can be used for re-investment in Education & Training and Recruitment and Retention
initiatives.
The ways in which these efficiencies can be brought about are: Integrated project teams and supply ¾ Standardisation upon NEC3 suite of contracts across the chains, brought together around the NEC3 contract will provide the whole of the industry (highways & railways efficiencies that the industry needs ¾ Achieving at least 50% of projects being delivered through
integrated teams and supply chains
On 16 July 2008 the House of Commons Business and Enterprise The Office of Government Commerce Committee published a report, which was the fruit of 12 months (OGC) endorses the use of NEC3 for public sector procurement work, Construction Matters. Amongst other things, it stated: “There are useful standard contract forms such as the NEC3 This is highlighted by the recent report of the Business and Enterprise Engineering Construction Contract recommended by OGC for all Committee. public sector construction projects …. led by OGC all departments
should work towards the use of collaborative contracts as a matter of course, and ensure they are adopted throughout the supply chain.”
Another recommendation of the report is that the government
Without integrated supply chains the should be doing more to encourage public sector clients to engage public sector is missing out on with the supply chain as early as possible. This is a key feature of efficiencies integrated working. The report believes that until this is achieved, it is missing out on efficiencies resulting in cheaper and better
quality end-products.
A fair sharing of risk and reward is The BEC report goes on to say that NEC3 had set a benchmark for a key feature of integrated team ensuring that risk is owned and fairly shared by the entire project working team.
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Publicity / Positive Imaging:
This report highlights the need for the industry generally to improve
its image and raise its profile; whether it be raising awareness in Publicity and positive imaging will support the education & training as young children about future career possibilities, to creating a more well as the recruitment & retention positive image targeted at under-represented groups such as women initiatives and ethnic minorities, through to maximising publicity
opportunities arising from major projects. A coordinated campaign
would undoubtedly support the efforts being made in the education
& training and recruitment & retention solution sets.
Coordination:
The implementation of the solution sets would be far more
effective if properly coordinated. In addition to a coordination role,
an ‘Industry Champion’ will also be the prime point of contact for Solutions would be more effective, if properly coordinated the industry with Government. Greater dialogue with Government
though one point of contact will generate greater understanding,
which in turn will generate, in the industry, a greater level of
confidence in planning its forward workload (see also Appendix
E.2.4 & 5)
Note:
Refer to Appendix E.3. for a tabulation of these detailed solution
Appendix E.3. categorises the sets, where they are grouped and categorised according to the solution sets effectiveness of each solution. Where possible, comparisons are
made with examples of best practice, for each proposed solution.
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Section CONCLUSIONS & RECOMENDATIONS
4.1 Conclusions 4
Section 1 of this report clearly sets out the data that demonstrates
that a skills gap exists in the industry, and the position will worsen
significantly over the next 5 years at least, if nothing is done to correct it.
¾ The industry is currently experiencing a skills gap of A skills gap of 10% (9,500) currently exists. approximately 10%, or 9,500 people, across the sectors as follows:-
- Transport Planning 1100 - Highways 2200
- Rail 6200
This could possibly nearly ¾ The skills gap is set to increase, as a direct result of the quadruple to 35,500 by 2012, if no combined effects of a resource pool that is reducing by 1% action is taken per annum (from 87,000 to 83,000 in 2012), and a demand for resources that will increase from 97,000 to 119,000 in
2012, creating a gap of 35,500, nearly 4 times the level it is now, across the sectors as follows:-
- Transport Planning 2700 - Highways 6700
- Rail 26100
Clearly, if the problem is not addressed then the industry will find itself in a serious skills shortage that will threaten the delivery of
some major programmes currently being planned.
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The data upon which these conclusions are based is supported by:
¾ Section 1 – Preliminary Review
¾ Appendix A – Methodology
¾ Appendix B – Supply model, data and evidence base ¾ Appendix C – Demand Model
Section 3 discusses the initiatives that can be implemented to
Short term measures such as overseas overcome the problem. We have concluded that the solution lies in recruitment and improvements in pay creating a mix of solutions that generate benefits over the short, and working conditions can help, but are not so sustainable in the long medium and long term. term due to the effect of market forces eroding these gains In the short term, Recruitment and Retention initiatives will generate benefits, particularly the recruitment of skilled resources Creating efficiencies will provide savings that can be invested in from overseas. Other efforts to turn a net loss of resources into a education and training. It will also positive gain of resources could also be implemented quickly. have the effect of reducing demand for resources In the medium term, the implementation of efficiencies
This is a sustainable solution into particularly the increased use of collaborative working through the longer term integrated teams and supply chains will benefit the industry by
reducing the demand for resources.
In the longer term education initiative will prove to be the most Improvements in efficiency will continue from the medium term sustainable, funded by the savings into the long term. made through efficiencies
In the long term, investments in education made now will yield The solution sets will be more effective if properly coordinated skilled resources that will form a sustainable solution to the problem of skills shortages.
Getting the message across will make the task of implementation easier The implementation of solutions will be more effective if properly and more effective coordinated, and supported by a publicity campaign.
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4.2: Detailed Recommendations: The solution sets below summarise the key initiatives that are recommended to close the gap between demand for and supply of resources.
OVER- Invest more in education and Implement effective Recruitment and Improve the efficiency of the Identification of Transportation / ARCHING training Retention programmes industry an ‘Industry Engineering Media ACTION Champion’ Centre SUMMARY Direct investment in further and A programme designed to recruit more This will both generate profits that An Industry This report highlights higher education, as well as people into the industry, and retain for can subsequently be re-invested in Champion should the need for the investment in time and expertise longer, those already in the industry. A the cycle as well as reduce demand coordinate and industry generally to such as ambassadorship coordinated publicity and ‘positive imaging’ for scarce resources in the short to drive the solution raise its profile and programmes, work-based campaign is a key component to make this medium term sets, as well as improve its image. learning, input to the design of area of solution sets more effective (see monitor progress courses and support for the new column far right) towards the 14-19 Diploma qualifications in objectives. Engineering and Construction & the Built Environment. KEY TASKS ¾ Support for the 14 – 19 ¾ Recruitment of skilled resources ¾ A standard suite of Ensuring the The media centre Diploma: Equipping school- from overseas supported by the engineering contracts; the industry is able to could help to raise aged students with the right inclusion of more Transportation ETP immediate introduction of the tap into all sources industry profile by skills that will enable them to disciplines on the Home Office New Engineering Contract of funding would be ¾ Raising awareness go on to further and higher Shortage Occupation List. (NEC3) as a common suite of a primary role for in young children education and eventually find a ¾ A coordinated publicity campaign contracts throughout the Industry Champion, about future career path in the industry. aimed at raising awareness in young industry to promote as would active career possibilities ¾ Industry support for STEM people of the industry as a career path, collaborative working and a fair engagement and ¾ Creating a more skills learning: Supporting as well as presenting a more positive allocation of risk and reward. dialogue with positive image London Engineering Project image that would appeal to under- ¾ Integrated Teams; ensure that, government. targeted at under- (LEP) and Expansion of represented groups such as women and within no more than 5 years, at represented ambassador programmes for ethnic minorities. This could include least 50% of its projects are groups such as STEM skills, e.g. STEMNET an interactive web site, positive executed with integrated teams women and ethnic ¾ Connecting with young imaging and resources to influence the and supply chains, where client minorities, and people and greater media through a Transport and and suppliers work together ¾ Maximising involvement by the industry in Engineering Media Centre around shared values and publicity schools ¾ More flexible employment objectives, and where the balance opportunities Industry to drive its own skills practices, including the maintaining of of risk and reward is fairly arising from major programme: New skills greater contact with employees who allocated. projects academies, more apprentice ship are on leave of absence, to offer part- programmes, sponsorship of time working or work for project industry specific qualifications duration; re-training programmes; and individuals at higher flexible reward schemes; higher education level rewards for most talented people
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OVER- Invest more in education and Implement effective Recruitment and Improve the efficiency of the Identification of Transportation / ARCHING training Retention programmes industry an ‘Industry Engineering Media ACTION Champion’ Centre POTENTIAL By increasing the number of Within 5 years the industry can turn a Over the next 5 years (short to This report The effect of a IMPACT students taking STEM GCSE by current rate of attrition of -750 per year, medium term) the industry can, as a commends the coordinated campaign just 10%, together with increasing into a net addition of resources of minimum, improve its efficiency by engagement of an would support the the proportion of those who approximately 2,500 per year, by educating between 5 – 10%. In the medium industry champion efforts being made in move on to A-levels then further (see column left) then i) recruiting more to long term efficiencies of between on the grounds that the education & and higher education in people with ETP skills into transportation, 15 – 20% should be achieved. In it would make training and engineering subjects from just 5% ii) encouraging people to stay in the financial terms, the savings within 5 implementation of recruitment and to 7% there will be an increase industry for longer and iii) reduce years would be around £250m21 per the action plan retention solution sets. from 24,000 to 36,000 in those migration abroad and movement to other annum, which could be reinvested more effective. This report with engineering qualifications. industries. in education & training and recommends the By increasing the size of the recruitment & retention initiatives. setting up of such a resource pool in this way, it This to be achieved through the In terms of resources, this equates body, through which becomes easier to implement implementation of effective recruitment to approximately 5000 people in the the coordinated effective recruitment programmes and retention programmes supported by a short to medium term. publicity campaign (see next column) coordinated publicity campaign. The longer term outlook for the could be run. industry is one of continuing Recruitment of resources that have been shed from other sectors (e.g. general improvement, showing savings of construction) followed by the re-skilling or upskilling of those resources to meet anything up to 15,000 people in the needs of transportation. ETP disciplines. This is both a recruitment and an education / training initiative
OWNERSHIP Support for the new diploma The publicity campaign should be owned This programme should be owned The position should As with the ‘Industry qualification (e.g. provision of by a new Transportation and Engineering and driven by the client bodies in be funded by the Champion’ this is a work-based learning), Media Centre (see column far right). the industry, who are able to industry as a whole pan-industry solution Ambassador programmes and develop a procurement policy that through one of the and should be funded connecting with young people GoSkills, the Sector Skills Council that best embraces this solution set employer bodies or by the industry as a through school visits and the like represents the industry to make further professional whole can be owned by all employers in submissions to the Migration Advisory institutions the industry from SME to major Committee, in support of a recruitment employers. drive overseas. The major employers should take the lead in the creation of skills All employers, from SME to major academies, sponsorship of school employers should be implementing the academies and sponsorship of right recruitment and retention masters and doctorate programmes that suit their enterprise programmes
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Appendix A
Methodology
The methodology adopted for this study comprises a staged process that contains two strands;
¾ Consultation ¾ Data gathering
A.1 Overview
A.2 Preliminary Review (Desktop Study) – See Section 1
A.3 Industry Liaison Group
A.4 Industry Forum
A.5 Survey
A.6 Data Model
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Appendix Methodology
A.1 Overview
A The Industry Study was a staged consultation and data gathering process. The staged process was mirrored, at each level of the
process, by the ever-increasing number of organisations that
participated in the consultation, represented by the diagram below.
Surveys
Industry Forum
Industry Liaison Group
Partners
Consultant’s in-house experts The staged consultation process was Industry Forum ILG Meetings an ever-widening series of contacts Partner Meetings with an increasing number of organisations as each level of the consultation proceeded
Figure A.1
The number of organisations and Group No. of Representing Stakeholder Group stakeholder groups increased with Orgs each level of consultation Consultant 1 Industry Consultant + 6 Industry Partners Industry Liaison 17 Industry + Professions + Education Group Industry Forum 47 Industry + Professions + Edu + HR Survey 500 Industry + Professions + Edu + HR
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The execution of the Industry Study comprised two parallel
processes;
¾ Data gathering Data Gathering Consultation ¾ Consultation
Data Gathering Process.
This process comprised: A desktop study generated the ¾ A preliminary review by way of desktop study to establish the Initial Hypothesis (IH) – See 22 Appendix A: Preliminary Review background and generate an Initial Hypothesis (IH) . ¾ A survey to establish the current supply of resources.
¾ A model that established the demand for resources based A supply / demand / gap data upon the anticipated spending on projects. model was created ¾ A gap analysis, based upon the difference between the supply data and demand data.
Consultation process.
Consultation with the industry took Consultation took place in three ways: place through: ¾ A survey of the industry
Survey ¾ The Industry Liaison Group (ILG): A small consultative group Industry Liaison Group designed to represent all parts of the industry. Industry Forum ¾ The Industry Forum was open to a greater number of organisations than the ILG and from which solutions were
gathered.
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Figure A.2 below summarises the process that was followed to implement the methodology
Industry Study
Methodology Process Chart Industry Study
The industry study comprised two parallel processes; data gathering and consultation
Data Gathering Consultation Process Process
The data gathering process concentrated on establishing data models Desktop Study
The consultation process concentrated on identifying solutions Initial Industry Liaison Industry Hypothesis to the supply/demand imbalance Group Forum
Supply mapping (Industry Survey) Demand Mapping
Prove/ Disprove The data models informed the IH solution identification process
Data Models Solutions
The final report provides the data analysis against which solutions were proposed
Report
Figure A.2
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A.2 Preliminary Review (Desktop Study) See also Section 1
A.2.1 Representation
The Preliminary Review was carried out at the outset of the project
to capture a significant proportion of the work that is currently in the The Preliminary Review provided public domain on the subject matter of resource shortages. the means of creating an Initial Hypothesis – later to be tested by statistical analysis The Preliminary Review covers all sectors of engineering. As such it
is representative of, but not necessarily specific to, the Highways
Railways and Transport Planning sectors.
A.2.2 Purpose
The Preliminary Review was a ‘knowledge capture’ process to provide a platform of knowledge from which the Industry Study
could commence.
A.2.3 Functions & Objectives
The ultimate objective of the Preliminary Review was to provide an ‘Initial Hypothesis’ (IH)23. Forming an IH provides the starting
point for a study, following which the subsequent data gathering and consultation process either proves or disproves the IH.
A.2.4 Consultation Process
The consultation process involved the collation and assimilation of
relevant reports and studies associated with the subject matter.
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A.3 Industry Liaison Group
A.3.1 Representation The ILG is a consultative body drawn from all of the following stakeholder groups24:
¾ Professions
¾ Industry (Railways / Highways / Transport Planning) ¾ Education and Training
The ILG is representative of a wide ¾ Employers body of opinion from the industry and it proved to be an invaluable A.3.2 Purpose resource for gauging industry response and testing hypotheses and ¾ To act as a co-ordination and communication point between solutions. the Industry Study and the wider industry.
¾ To help develop and facilitate the consultation process across the industry. ¾ To assist and facilitate the collection of the survey data.
¾ To help develop the analysis of the survey data ¾ To identify skills shortages or issues.
¾ To assist in the development of any solutions;
A.3.3 Functions & Objectives
¾ Test the methodology of the staged consultation, study objectives and the anticipated outcomes;
¾ Gain preliminary industry perspective on the Industry Study and the proposed approach; ¾ Hold workshops to develop solutions that could be put forward to the wider industry forum.
A.3.4 Consultation Process
The consultation process took the form of:
¾ Group meeting – briefing to the group on purpose and desired outcome for the Industry Study, together with feedback and response from the group.
¾ Group meeting – Workshops to develop preliminary solutions that would be put forward to the wider industry forum. ¾ Newsletter briefings – Information on developments of the study followed by receipt of feedback as required.
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A.4 Industry Forum
A.4.1 Representation
The Industry Forum is representative of all parts of the industry in all parts of the UK. The organisations represented included
education, professions, clients, contractors, consultants, local authorities (County, District, Metropolitan, and London Boroughs)
25 The key benefit of the Industry as well as, quite crucially both technical and HR disciplines within Forum is that it enabled the Study those bodies. The invitees are all senior executives of their to engage with the widest body of knowledge, at the highest level, thus respective organisations. ensuring the best possible knowledge capture A.4.2 Purpose To gain the views of the industry.
A.4.3 Functions & Objectives
To provide focus on what issues will need to be resolved and to inform the Solutions Identification phase;
To highlight that Partners to the Industry Study welcome full
industry involvement and input. Inputs to the Industry Forum consisted of background briefings from key industry figures, followed A.4.4 Consultation Process by a wide-ranging debate of the issues raised The consultation process of the Industry Forum was in three parts, as follows:
¾ An initial briefing by 5 industry figures, in plenary session, on
the following topics: The key output from the Industry Forum was the identification of - To highlight that Partners to the Industry Study solutions welcome full industry involvement and input.
- Background to the Industry Study - The three generic solution areas Increasing the size of the resource pool Increasing the skill level of the resource pool Improving the effectiveness of the resource pool - A case study – Olympic Development Authority ¾ 9 workshops to develop potential solution areas ¾ Feedback from the workshops to the plenary session.
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A.5 Surveys
A.5.1 Representation
The surveys represent all of the same stakeholder groups as the The survey embraced many organisations (approximately 500), Industry Forum; however a higher number of organisations thus gaining access to all areas of the participated. industry
Each survey is built upon a common theme, but is tailored to suit
the particular stakeholder group to which each one is directed.
A.5.2 Purpose
To obtain the hard data necessary upon which a statistical analysis The survey provided current statistical could be carried out. data
A.5.3 Functions & Objectives
The various surveys were designed to establish: ¾ Skill levels within each of the Disciplines and Sub-
Disciplines ¾ Current Numbers within each relevant disciplines;
¾ Supply factors within each of the disciplines;
A.5.4 Consultation Process
Survey forms were sent out to organisations in the following stakeholder groups:
¾ Employers
¾ Education Providers
¾ Councils (Metropolitan / London Boroughs / County /
District)
¾ Professional Institutions
Each survey form was tailored to suit the particular stakeholder 26 group .
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A.6 Data Model - Overview
The Data Model contains three elements:
The Demand Model, where known spending plans (from The demand model is based upon the principle of representing capital 2006/2007 to 2013/2014) expressed in monetary terms, are investment (£) as a need for resources converted into a demand for resources, expressed in numbers of (people) resources (people). More detail of the Demand Model can be found at Appendix C.
The supply-side model is fed from the The Supply Model; where current numbers of resource are survey data established through a process of consultation (the survey) with employers (numbers employed plus vacancy rates) and professional
institutions (number of members) all of which has been validated by other published research material. More detail of the Supply
Model can be found at Appendix B.
Scenarios were developed to demonstrate potential changes to the The Scenario Model; where we established a number of ‘what if’ base position. In effect each scenario scenarios to see what the effect would be if certain events were to is a ‘what if’ question. take place. The ‘what if’ scenarios that have been applied to the model are:
1 – Changes to the supply-side model arising from a
beneficial effect of implementation of solutions in education and recruitment & retention.
2 – Changes to the demand-side model through improved
efficiencies.
3 – Changes to the demand-side model (decreased expenditure) and the supply side model (increased supply
of resources) arising from a downturn in the economic climate.
4 – Changes to the supply-side model arising from an even greater demand for resources coming from other domestic engineering sectors (such as power generation) and from
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the international transportation sector.
Appendix B
Supply Model, Data & Evidence Base
B.1 Supply model – Methodology
B.2 Supply resource data
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Appendix Supply Model, Data &
Evidence Base
B.1 Supply Model - Methodology
B Our calculation of the current supply (2007) of ETP resources is derived from three sources:
Supply data is derived from three - A survey of employers sources: - Membership information provided by relevant professional ¾ Survey institutions ¾ Professional Institute membership - A review of existing research reports and anecdotal ¾ Existing research data evidence
The survey of employers was conducted by sending a detailed self-
completion questionnaire to named contacts at 72 private sector
employers (consultants and contractors active in the road and rail
infrastructure sector) and to 240 contacts in public sector A good response was achieved from organisations (local authorities and national / regional employers in the private sector organisations including TfL and GLA).
Full or near-complete returns were received from the following 21
organisations:
Arup Knorr-Bremse Balfour Beatty Lockheed Martin Colas Rail Mayer Brown Collis Mott MacDonald Colin Buchanan Network Rail Delta Rail Nichols Det Norske Veritas Rail Tech Frankham TfL Interfleet Westinghouse JMP White Young Green Unipart Rail
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The response rate from private sector employers was therefore
The response from the public sector very good at approximately 25%. This is estimated to account for was poor, except for major employers approximately 10% of employees overall. The response from local in the rail sector; TfL and Network Rail authorities was very poor. The best response from the public sector came from the major stakeholders in the rail sector TfL and
Network Rail.
Notwithstanding the pockets of poor response the survey response Overall the survey response was sufficient to provide robust data overall was sufficiently robust to provide the basis for an accurate profile of vacancy rates against each of the main being studied. The
reported vacancy rates were applied to the individual discipline and category requirements as generated by the demand model.
Because the number of employees represented by the responding
Survey data was supplemented by employers in several of the specialist disciplines was small, existing existing research data research reports and anecdotal evidence were taken into account,
in addition to the employers’ vacancy rates, in order to arrive at an estimate of the national shortage of ETP personnel for each
discipline and category.
To provide some corroboration of the estimate of the total The professional institutions gave a population of ETP personnel derived from vacancy rates applied very good response and supplied excellent data to corroborate the to the modelled demand, a list of the most relevant institutions was survey compiled and membership figures obtained from each.
- Institute of Highway Incorporated Engineers - Institution of Civil Engineers - Permanent Way Institute - Institution of Highways and Transportation - Institute of Railway Signal Engineers - Institute of Engineering and Technology
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Three correction factors were applied to the total number of Data from the professional institutions had correction factors qualified available professionals thus obtained: applied to take account of:
¾ A factor to account for the proportion of relevant
¾ Members who do not have engineers and technicians in the sectors surveyed who are chartered status available, but do not have Chartered status or who are not
¾ Technician level resources members of the relevant professional institutes – estimated who do not have institute at 65% to 75%. This factor corresponds to the range membership reported by the employers participating in the survey. ¾ Multiple institute membership ¾ A factor to account for multiple memberships of ¾ The proportion of institute professional institutions – estimated at approximately 30%. members who are not in Transportation This was estimated on the basis of an analysis of the professional memberships of engineers at a range of grades
in Mott MacDonald.
¾ A factor to account for the proportion of ETP personnel
represented by two of the more generic professional
institutions (the ICE and the IET) that are employed in
non-transport related occupations, eg general construction.
This factor was estimated to be in the region of 40% to
60%.
This provided an approximation of the overall supply of ETP resource in the sectors under study; a range, which although it could not be used as the direct measure of supply to compare with the overall demand, it did serve to confirm that the latter was a reasonable estimate.
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Recommendations for future tracking
In order to track ETP shortages and to evaluate the effectiveness of measures taken to address the shortages, the following approach is recommended:
¾ Target areas of key strategic shortage; ¾ Focus on vacancy rates in key disciplines (not numbers employed); ¾ Identify employers’ perceptions of skills shortages and trends; ¾ Involve a mix of large and small employers; ¾ Evaluate employers’ perceptions of the current and potential impact of measures undertaken; ¾ Undertake a larger-scale survey, involving a strong campaign to recruit participants, directly supported industry clients and other organisations; ¾ Use one-to-one personal and telephone interviewing, undertaken by a specialist business research team; ¾ Apply strict quotas to the survey in order to ensure a representative response, including from the public sector.
The survey instruments and sampling method should be designed to take account of the fact that current vacancy rates may not necessarily be an indicator of actual shortfall in the short term. (They could be at least partly due to certain large employers poaching or otherwise attracting a large cohort of specialists in order to secure a greater market share in a profitable sector).
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B.2 Supply Resource Data
B.2.1 – Current Resource Levels
Estimated Current Shortage Demand Shortage Resource Disciplines Evidence Source (people) % (People)
Project Management 30269 10% 3027 27242 Project Management [1] Short term skills shortages in delivering local transport 6204 10% 620 5584
responsibilities Reg Harman and Glenn Lyons June 2003 4.7% gap [1] Quantity Surveying/Cost Management [2] ACE Skills Shortage and Recruitment Agency Behaviours, 7586 10% 759 6827 17.4%(vacancies % total staff) [2] Contracts & Procurement October 2007 10229 10% 1023 9206 Programming/Planning 6250 10% 625 5625 Civil/Structural Engineering & 10851 8% 868 9983 Surveying [1] Built Environment Professional Services Skills Survey Geology, Geotechnics & Soil Mechanics 10% surveying gap[1] 2003/2004 April 2004 Construction Industry Council 1487 8% 119 1368 Drainage 4780Civil+2660 Structural gap[2] [2] ACE Consultancy and Engineering Skills Shortages UK 3249 8% 260 2989 3% (2090) civil gap[3] Construction Sector January 2008 Hydraulics Engineering 14% Civil 10.6% Structural [3] Construction Skills Network 2007-2011 9 8% 18 Civils Structures; Tunnels / Bridges / (vacancies % total staff) [4] [4] ACE Skills Shortage and Recruitment Agency Behaviours, 4615 8% 369 4246 Foundations / Retaining Structures etc. Surveying 5% gap 2008 increasing October 2007 to 6% gap by 2012[5] [5] Mind the Skills Gap The skills we need for sustainable Alignment Engineering communities Academy for Sustainable Communities 85 8% 7 78 Land Surveying 1406 8% 112 1294 Technical [1] Built Environment Professional Services Skills Survey 2269 14% 317 1952 10% gap[1] 2003/2004 April 2004 Construction Industry Council CAD (Computer Aided Design ) 2267 14% 317 1950 9.8% gap[2] [2] Short term skills shortages in delivering local transport GIS + Advanced Simulations responsibilities Reg Harman and Glenn Lyons June 2003 2 3% 02 M&E, Comms, Systems 7824 13% 1010 6814 M+E 2052 11% 230 1822 Lighting Design 1400 Mechanical+1410 Electrical 697 13% 91 606 [1] ACE Consultancy and Engineering Skills Shortages UK gap [1] SCADA Construction Sector January 2008 593 11% 65 528 12.3% Mechanical + 14.8% [2] ACE Skills Shortage and Recruitment Agency Security Electrical (vacancies % total staff) 2 11% 02 Behaviours, October 2007 Communications [2] 2741 11% 302 2439 Systems Engineering & Integration 1219 20% 244 975 Intelligent transport systems 520 15% 78 442
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Estimated Current Shortage Demand Shortage Resource Disciplines Evidence Source (people) % (People)
Highway Engineering 4020 9% 381 3639 Highway Design +Development 2948 10% 295 2653 Control Highway Safety Engineering 490 8% 39 451 Highways Engineering + Maintenance 247 8% 20 227 Streetscape Design 335 8% 27 308 Traffic Engineering 986 16% 161 825 Traffic Engineering + Design + 311 10% 31 280 Regulation + ITS Traffic Signing & Signalling 633 20% 126 507 Traffic Surveying 42 11% 5 37 Transport Planning 15831 7% 1112 14719 5000 in 2005 3% gap 4% gap in Short term skills shortages in delivering local transport Transport Planning General + 2008 increase to 10% by 2012 responsibilities Reg Harman and Glenn Lyons June 2003 15766 7% 1104 14662 Economics + Travel Planning 3,500 planners now 2008 http://www.transportationopportunities.org.uk/ Transport/Traffic Modelling 65 14% 9 56 Railway Engineering – Rail 13224 8% 1094 12130 Permanent Way 6554 9% 557 5997 600 additional engineers and EMC 361 7% 25 336 technicians required per year- TfL Engineering and Construction Skills – A Synopsis of Power estimate that there are 200 per Current Industry Reports, Articles and Interviews, Dec 2006 1460 14% 204 1256 Rail Signalling + Train and Traffic year going in 3600 7% 252 3348 Control Rolling Stock 1249 4% 55 1194 Railway Engineering –Stations 1768 11% 194 1574 Station Design + Engineering + Fit Out 1250 12% 148 1102 + Fare Collection
HVAC - Heating, Ventilation & Air Con 97 4% 4 93 / Building Services Lifts/Escalators 421 10% 42 379 Audit / Assurance Inspection 3207 16% 500 2707 Quality Assurance 322 15% 49 273
Measurement & Control 13 14% 2 11 Testing 2872 16% 450 2422
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Estimated Current Shortage Demand Shortage Resource Disciplines Evidence Source (people) % (People) Health, Safety & Environment 6607 12% 802 5805 11% shortage working in flood Health & Safety risk management – rising to 19% [1] Action on Engineering Skills Shortages in Flood Risk 711 9% 66 645 Environmental Engineering in 5 years[1] Management February 2005 ICE 3411 15% 512 2899 Fire Engineering 12.7% Environmental consultants [2] ACE Skills Shortage and Recruitment Agency Behaviours, 5 11% 14 gap[2] October 2007 Asset Management + CDM Coordination 2480 9% 223 2257 Totals: 96856 10% 9467 87389
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B.2.2 – Joiners and Leavers
In 2007 the number of ETP resources in the industry stood at just under 97,000 (see table above).
The number of people joining the industry stood at 1300. This figure is made up of those who newly join from education (1000), as well as those who join either from overseas or from other sectors domestically (300). The number of people leaving the industry stood at 2000. This figure is composed of retirees, and those who choose to leave the industry for other sectors or to move overseas.
Age Profile Potential Retirees: Total Population % of Total 15-20 Total 1510 2% Total industry 21-24: Total 4734 5% population over age 60 25-29 Total 9956 10% is 5229 (shaded area) 30-34 Total 10424 11% 35-39 Total 13799 14% In a 5 year period the 40-44 Total 14820 15% average number of 45-49 Total 15479 16% retirees is in excess of 50-54 Total 12422 13% 1000 per annum 55-59 Total 8482 9% 60-64 Total 4680 5% Within 15 years this 65-69 Total 489 1% figure may triple to 70-74 Total 53 0% 3000 per annum (see 75-79 Total 20%45-49 age group; 15,000 80-84 Total 40%in a 5 year period) Total 96856 100%
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Joiners & Leavers
STEM Subject GCSE The figures given for the supply chain Student Nos . opposite are approximations only, 450 ,000 taken from available data and assessments made where figures are STEM subject A - Level or not known Diploma 45 ,000 At GCSE and A-level they refer to student numbers taking STEM subjects27 Engineering FE Qualifications Graduates ( assessed at Higher and further education figures28 14 ,000 10 ,000 )
All figures quoted are ‘per annum’
Entering Engineering < 10 ,000 Entering transportation29
‘Other joiners’ are typically those from Entering Transporation other industries, or from overseas <1,000 p.a.
Those leaving (other than retirees) go to other industries or overseas
Figures for joiners and leavers are Other Joiners Leaving / Retiring estimated assessments 300 2000
Rate of attrition means that there is a net loss of resources each year Rate of attrition 1 ,000 p .a .
The current trend shows an attrition rate of approximately 750 to 1000 or 1% p.a.
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Resource Data: Evidence-base
3rd Annual Report on European Industry August 2005 A rail strategy for London’s future Statement of Case TfL 2007 Academy for Sustainable Communities Generic Skills and Cross-occupational Learning for Sustainable Communities Final Report February 2006 DTZ Pieda Consulting ACE Consultancy and Engineering Skills Shortages UK Construction Sector January 2008 ACE Recruitment & Retention of Young Consultants and Engineers ACE response to ODA Transport Plan (letter) ACE Skills Shortage and Recruitment Agency Behaviours, October 2007 ACE State of Business Report 2007 Action on Engineering Skills Shortages in Flood Risk Management February 2005 ICE Addressing a skills shortage, Sarah Richardson, Evening Standard, 6 February 2008 pg 55 An Assessment of Skill Needs in Engineering The Institute for Employment Studies An assessment of Skill Needs In Transport DfEE Publications 2001 BMG Research Report Topline Report April 2007 Built Environment Professional Services Skills Survey 2003/2004 April 2004 Construction Industry Council Built Environment Professional Services Skills Survey 2003/2004 April 2004 Construction Industry Council Civil Engineers Contractors Association Smaller Firms Still Miss Out on Civils Growth Construction Industry Council, Survey of UK Construction Professional Services, 2003 Construction Skills Network 2007-2011 County Surveyors' Society, Short term skills shortages in delivering local transport responsibilities Reg Harman and Glenn Lyons June 2003 Department of Trade and Industry, Marriot. B., Scientists, Engineers and Technologists in Great Britain, April 2006 DfES, Skills Getting on in Business Getting on at Work, 22/03/05 DTZ, Generic Skills and Cross-occupational Learning for Sustainable Communities, February 2006 EEA Attracting more entrants into the World of Engineering, Engineering Education Alliance Employers Organisation Local Government Workforce Profile and its Top Ten Skills Shortage Areas - 2005 Employers Organisation, Recruitment and Retention Survey Report, January 2006 Engineering Employers Research 2007 Findings of a survey conducted for the Royal Academy of Engineering Engineering Employers Research 2007 The Survey Shop Engineering Skills for Flood Risk Management A report by the ICE task Team Forecasts for Greater London James Hastings, Experian ICE, Learning to Live with Rivers, 2001 Learning and Skills Council & London Development Agency, Employment and Skills for the 2012 Games: Research and Evidence, May 2006 London is for Losers Contractors Salaries Lucy Handley Building Magazine 29 Sept 2007 London Skills Commission, 2005/2006 Regional Skills Action Plan, Sept 2005 London Skills Commission, World Class Skills for the Global City, Regional Skills Perspective 2005/2006 London Southbank University, Skills Gaps in the Energy Efficiency and Renewable Energy Sector in London Opinion Leader, The Skills Challenge: A Public Debate, A report on of the debate held on 8th February 2007 Policy Research Institute Leeds Metropolitan University, Skills in England 2001, The Research Report Professional Skill Shortages in Transport Planning and Traffic UTP May 2007 Public Attitudes and Perceptions concerning working for the Rail Industry, Faber Maunsell April 2004 Rail Safety and Standards Board Management, The rail industry - a way forward on sustainable development, Final Report 220206 Seven Tracks to Success, Forward Thinking Papers for Improving Rail Travel, Hornagold and Hills
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State of the nation building capacity, ICE, July 2007 Summary of responses from Working Groups Railway Industry Association 2007 TfL Engineering and Construction Skills – A Synopsis of Current Industry Reports, Articles and Interviews, Dec 2006 The Engineering and Technology Board 2007 Survey of Registered Engineers ERS Research September 2007 The Office of Government Commerce, Construction Demand Capacity 2005-2015 Study, 26/07/06 The Royal Academy of Engineering, Public Attitudes and Perceptions of Engineering and Engineers 2007 The Sector Skills Almanac UK 2007 Skills for Business The Supply and Demand for Science, Technology, Engineering and Mathematics Skills in the UK Economy Department for Education and Skills 2006 TPS, Transport Planning Skills Initiative UK-SPEC Baseline Project Final Report November 2007 Engineering Council UK Women in SET. ETB June 2008 Working Futures 2004-2014: National Report York Consulting, Academy for Sustainable Communities Professionals, Draft Report, March 2007
Other Facts Source
13% of construction sector = 33516 ACE State of Business Report 2007,
evidence that a skills shortage is being felt in many areas of civil engineering – likely to get worse due to the impact over the last Engineering Skills for Flood Risk Management decade of declining numbers of entrants and ongoing retirement rate A report by the ICE task Team (due to UK demographics) producing a net outflow of active chartered civil engineers.
Mind the Skills Gap The skills we need for skills gap for engineers predicted to widen to 17% by 2012 sustainable communities Academy for Sustainable Communities 12,300 new senior construction professionals needed each year until Addressing a skills shortage, Sarah Richardson, 2011 Evening Standard, 6 February 2008 pg 55 The transport sector (including land transport, water transport, The Sector Skills Almanac UK 2007 Skills for storage and activities of travel agencies and tour operators has a Business skills gap of 5.2% of employment Jobs for construction professionals and technical staff are expected to increase by 12.5% State of the nation building capacity, ICE, July Over the next five years employment in civil engineering is expected 2007 to increase by some 24 thousand jobs The Construction Skills Network (CSN) forecasts an average need for some 12,300 new industry professionals each year until at least ICE The State of the Nation Capacity and Skills 2011 Transport and communications skills shortage vacancies as a Skills in England 2001, The Research Report, percentage of all vacancies = 14% Policy Research Institute Leeds Metropolitan University
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Appendix C
Demand Model
C.1 Principles of the Demand Model
C.2 Elements of the Demand Model
C.3 Expenditure
C.3.1 Highways Expenditure C.3.2 Railways Expenditure
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Appendix The Demand Model
C.1 Principles of the Demand Model
The basic principle of the demand model is to take known C spending plans on transportation projects, and convert that project
spend into a demand for resources. The model was compiled by economic researchers and quantity surveyors who practice their
profession primarily in the railways, highways and transport planning sectors. Essentially the model works by using a project The basic principle of the model is to convert ‘project spend’ (£) into human costing model for a particular asset class of transportation work resources (asset classes listed below) multiplied up by the forecasted spend
for the asset going forward to 2013.
Other methods were considered but Other methods of determining the demand for resources were eventually not deemed to be considered and then ruled out, these are highlighted briefly below: appropriate 1) Use of existing demand models from organisations such as Construction Skills and Experian. Existing models within the industry do not plot to the same level of detail and, due to ONS industry labour classifications, only plot labour in the construction industry The labour required within this study will appear under other industry sectors such as software and manufacturing. As this is the case the existing industry models can only act as a point of correlation from the figures generated in the new model.
2) Surveying all companies in the industry to determine their resource requirements for forthcoming years. Due to the inability to survey and get responses from every company requiring transportation professional labour this methodology was also ruled out.
For the most part, tried and tested Ultimately though all methods refer back eventually to the most standard project costing models do not basic reference point, which is the anticipated spending plans. And exist. whilst the model that has been created is limited by the quality of Therefore, current project data was available data, it was decided that it was the only workable solution. used as the best alternative.
A recommendation of this report, however, is that future versions
of this study will devote some time to refining or further validating the data that populates the model.
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C.2 Elements of the demand model
Spending plans: The spending plans of DfT, Highways Agency,
Network Rail, TfL, and the devolved regions were taken from their
Aggregate spending is taken from published business plans. The aggregate provided the total ‘project published spending plans. spend’ profile by year.
Asset Classes: The aggregated spending plans are broken down
into ‘asset classes’ (i.e. types of project). The asset classes are
defined in the table below.
Aggregate spending is categorised into Asset Classes project type or ‘asset class’ Rail Asset Classes Highways Asset Classes Permanent way Major Improvements
Signalling Technology Improvements Telecommunications Traffic Management
Civil Engineering Maintenance Electrification Smaller local schemes
Rolling Stock Stations
Depots and lineside buildings
Model Projects: A model or ‘notional’ project was created for each asset class.
A model project is created for each The model project allocates the disciplines in the proportions that asset class are relevant to that particular type of project. Wherever possible
reference has been made to tried and tested standard project costing models, however in most areas no such standard models
exist. It is beyond the scope of this study to prepare bespoke project costing models therefore, in the absence of such standard
models, the researchers had to revert back to professional experience and use such current data that was within the realm of
their practice.
An assessment was made of the resource requirements for each project type, as follows overleaf;
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¾ At each phase of a project:
- Design - Install The model for each asset class provides - Inspect resource demand: - Test ¾ by discipline, - Maintain ¾ by grade, ¾ by phase of the project ¾ At 3 grades: ‘Graduate’, ‘Engineer’, ‘Senior’, where
- The term ‘graduate’ does not necessarily apply to someone with a university degree, but rather it applies to someone with up to 3 years professional experience.
- The term ‘engineer’ is used in a generic sense and need not necessarily apply to an engineer, depending upon the discipline being analysed. The term applies to The aggregate of all resource demands someone with between 3 – 15 years professional provide the total requirement for each experience. year from 2007 to 2013 - The term ‘senior’ applies to someone with over 15 years professional experience.
30 Labour Costs : Once an amount of spend has been allocated for a resource, in order to calculate how many are required the model
needs to understand the typical labour costs of each resource. Average hourly charge-out rates by location of the practice have The amount of spend is divided by the hourly / daily cost for each type and been used to populate the labour cost table. Cost per day rates level of labour resource have been calculated by multiplying the sourced figure with 8 based
This is the point where £ translates on the assumption of an 8 hour day. Data where known is plotted into resources and professional judgement and assumptions have been made to
populate the others grades based on the percentage of the known data.
In respect of location, the reports cover London, South East,
Midlands / East Anglia, North, South West and Wales, Scotland
and Northern Ireland (in Architect Fees and QS Fees). Therefore,
it has been assumed that North will be for North East and North
West in the study.
The cost information used is based on a survey of the charge out
rates for architectural practices, consulting engineers, quantity
surveying practices and M&E services engineers undertaken over
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12-24 months period ending in July 2007. The following table
presents the sample size and the total construction value of these
jobs in order to see the limitation of the data. Cost information is derived from a survey of professional practices Description Sample size (no of Total construction projects) value Architects Fees 1,200 £2.5 billion
Engineers Fees 1,200 £2.1 billion
Quantity Surveyors 750 £1.5 billion Fees M&E Services 500 £1.5 billion
Engineers Fees
Hourly charge-out rates are presented in two formats, by size of
the practice or firm (i.e. number of staff) and by location of the practice. Figures are presented as average (medians), lower (25
percentile) and upper (75 percentile) quartiles.
Capacity Utilisation A capacity utilisation factor of 82% is embedded in the model for
the following reason:
Capacity utilisation is an economic modeling concept that describes the extent that a country or a company makes use of its productive capacity. It describes the difference between what, in theory, could be achieved with the resources at its disposal compared to that which is actually achieved. There is an optimum rate for capacity utilisation. If the actual rate is higher than the optimum then inflationary pressures build up and long term damage is done through lack of training and other investment. If the actual rate of utilisation falls below the optimum then over-capacity An adjustment is made to the exists and the company (or country) becomes inefficient. demand model to take account of optimum ‘capacity utilisation’ In the European Union it is estimated that the average capacity utilisation rate is 82% (Bank of Spain Estimate). This compares with 79.7% in the United States (Federal Reserve, April 2008), and 83-86% in Japan (Bank of Japan).
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Staff not directly project-costed
Within the industry there exist a number of resources that are not
directly to projects, and would therefore fall outside of the
standard project model, as described above. In order to capture
these resources a factor of 20% has been allowed. For the most
part this layer of staff relates to client-side supervisory or
management staff. The factor of 20% is directly related to the
estimated value of savings that is currently estimated arising from The model recognises the fact that not the use of integrated teams. I.e. Client-side staff being part of all resources in the industry are directly project-based, or project-related project delivery.
Validation of the demand model
Following meetings with industry experts the concept
methodology of the model was confirmed to be calculating in-line
with existing industry demand models.
The three inputs of the demand model were validated as follows:
1) Construction spends - correlated where possible with other published figures and cross checked against client data 2) Construction models - completed and verified by in-house Mott MacDonald experts. In order to further verify the labour coefficients another version of the demand model was run with TfL construction spend figures. The outputs of the model were then compared against actual TfL employment numbers. Although there were some differences these were explained by statistical anomalies and the difference in operating efficiencies and costs of working in the TfL region compared to a model populated with coefficients representing a UK average location. 3) Labour costs - from published sources verified with internal F+A data where possible
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Sensitivity Analysis To demonstrate the possible sensitivities within the demand modelling process a sensitivity analysis has been conducted.
The sensitivity was made using the following conditions:
A - adjustment of construction expenditure figures by + or - 10% B - adjustment of % of professional fee percentage figures by + or - 20% C - adjustment of % of labour cost figures by + or - 20% D - combination of all of the above
The following results demonstrate the sensitivity range possible.
2007 2008 2009 2010 2011 2012 2013 Base 96,858 103,440 113,166 117,719 118,521 119,180 112,503 A Low - 10% Output 87,172 93,096 101,850 105,947 106,669 107,262 101,252 Low - 20% Adjustment of B 77,959 83,224 91,007 94,632 95,274 95,801 90,459 the % of prof Fees Low + 20% Addition to C 80,715 86,200 94,305 98,099 98,767 99,317 93,752 the Labour Costs Low - 10% Output, -20% Adjustment of the % of D prof Fees and +20% 58,115 62,064 67,900 70,631 71,112 71,508 67,502 Addition to the Labour Costs A High - + 10% Output 106,544 113,784 124,483 129,491 130,373 131,098 123,753 High + 20% Adjustment B 116,230 124,128 135,799 141,262 142,225 143,016 135,003 of the % of prof Fees High - 20% Reduction to C 121,073 129,300 141,458 147,148 148,151 148,975 140,628 the Labour Costs High - +10% Output, + 20% Adjustment of the % D of prof Fees and -20% 159,816 170,676 186,724 194,236 195,559 196,648 185,629 Reduction to the Labour Costs
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C.3 Expenditure
Note: The following expenditure tables (£) have been used to generate the resource demand (nos. of people) and they have been derived from published spending plans. The complete computer model has not been replicated here for the sake of brevity and simplicity.
C.3.1 Highways Agency Expenditure
Source 1: Highway Agency Indicative Budgets for 2008-9 to 2010-11 (ANNEX G- draft 29 Feb 08)
2008/9 2009/10 2010/11 Programme Pay & Allowance 60 60 60 Major Improvements to the Network 1,049 1,142 1,374 Traffic Management 65 66 63 Technology Improvements 220 261 208 Maintaining the Network 896 957 952 Smaller Local Schemes & R&D 193 195 203 Sob- total programme 2,483 2,681 2,860 Associated cost of programme investment in the network (incl. new 4,344 4,628 4,767 provisions) Total programme 6,827 7,309 7,627
Assumptions: (1) Figures are for England only (2) The document 'Regional Funding Allocations' has been excluded in the exercise due to uncertainty of its position
Note: Figures are expressed in £Million
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STEP 1: We are not modelling every category above in total programme. We are modelling:
2008/9 2009/10 2010/11
AA. Major Improvements to the Network 1,049 1,142 1,374 AB. Traffic Management 65 66 63 AC. Technology Improvements 220 261 208 AD. Maintaining the Network 896 957 952 AE. Smaller Local Schemes & R&D 193 195 203 Total 2,423 2,621 2,800
Prorated Programme Pay & Allowance and associated costs across 4,404 4,688 4,827 totals: % 2008/9 2009/10 2010/11 split AA. Major Improvements to the Network 2,956 3,185 3,743 43% AB. Traffic Management 183 184 172 3% AC. Technology Improvements 620 728 567 9% AD. Maintaining the Network 2,525 2,669 2,593 37% AE. Smaller Local Schemes & R&D 544 544 553 8%
Total 6,827 7,309 7,627 100%
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STEP 2: Calculation of Wales, Scotland and NI spending expenditure
Source 2: Wales (typical RTP scheme funding) - €million
The sums (in euros) likely to be available over the 2007-13 period are: Convergence 1,850.00 Competitiveness & Employment 121.00 Inter-regional 48.00 Total in Euros 2,019.00 Total in British pounds 1,595.01
Assumptions: (1) Assume Wales £1595 million is annual output figure. (2) Assume Wales will spend same % as England on the following categories
2008/9 AA. Major Improvements to the Network 690.53 AB. Traffic Management 42.79 AC. Technology Improvements 144.82 AD. Maintaining the Network 589.82 AE. Smaller Local Schemes & R&D 127.05 Total 1,595.01
Source 3: Scotland (£ million) - in the same document sent together with NI
2007/8 2008/9 Total 1,489.00 -
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Assumptions: (1) Assume Scotland will spend same % as England on the following categories
2008/9 AA. Major Improvements to the Network 644.64 AB. Traffic Management 39.94 AC. Technology Improvements 135.20 AD. Maintaining the Network 550.62 AE. Smaller Local Schemes & R&D 118.60 Total 1,489.00
Source 4: Northern Ireland RTS funding (£ million) - page 70 plus, table 5.1
2007/8 2008/9
Total 3,500.00 -
Assumptions: (1) Assume NI will spend same % as England on the following categories
2008/9 AA. Major Improvements to the Network 1,515.27 AB. Traffic Management 93.89 AC. Technology Improvements 317.79 AD. Maintaining the Network 1,294.26 AE. Smaller Local Schemes & R&D 278.79 Total 3,500.00
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STEP 3: UK Total output (£million) - England + Wales + Scotland + Northern Ireland
2008/9 2009/10 2010/11 AA. Major Improvements to the 5,806 6,035 6,593 Network AB. Traffic Management 360 361 348 AC. Technology Improvements 1,218 1,326 1,164 AD. Maintaining the Network 4,959 5,103 5,028 AE. Smaller Local Schemes & R&D 1,068 1,068 1,077
STEP 4: UK Total output (£) – for table
Assumptions: (1) Assume output will be the same from the year 2010 to 2013 (2) Assume 2007 output is same as 2008 (3) Assumed prices are already at 2007 constant price levels and do not need further adjustment
2007 2008 2009 2010 2011 2012 2013
AA. Major Improvements to 5,806,087,284 5,806,087,284 6,035,060,075 6,593,122,137 6,593,122,137 6,593,122,137 6,593,122,137 the Network AB. Traffic 359,767,086 359,767,086 360,673,887 348,231,788 348,231,788 348,231,788 348,231,788 Management AC. Technology 1,217,673,215 1,217,673,215 1,325,637,789 1,164,382,426 1,164,382,426 1,164,382,426 1,164,382,426 Improvements AD. Maintaining 4,959,250,912 4,959,250,912 5,103,417,070 5,027,877,879 5,027,877,879 5,027,877,879 5,027,877,879 the Network AE. Smaller Local 1,068,231,502 1,068,231,502 1,068,221,178 1,077,395,771 1,077,395,771 1,077,395,771 1,077,395,771 Schemes & R&D
Note: The figures above have been generated by a computer model; the precise nature of the figures should not imply an artificial level of accuracy. Rather they should be read as if rounded to the nearest £1m.
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C.3.2 Rail Expenditure
Source: From published spending plans
2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14
Track 900,900,000 1,051,000,000 978,000,000 958,000,000 1,067,000,000 1,109,000,000 1,027,000,000 938,000,000 Rolling Stock 156,000,000 189,000,000 278,000,000 434,000,000 518,000,000 588,000,000 590,000,000 546,000,000 Signalling 504,000,000 816,000,000 947,000,000 791,000,000 721,000,000 808,000,000 711,000,000 884,000,000 Telecoms 264,000,000 344,000,000 402,000,000 377,000,000 305,500,000 199,600,000 152,200,000 100,500,000 Civils 403,900,000 574,200,000 828,600,000 726,400,000 891,700,000 1,319,500,000 1,739,000,000 1,512,000,000 Electrification 59,900,000 204,500,000 314,000,000 342,700,000 358,300,000 366,500,000 385,000,000 223,000,000 Plant 82,000,000 109,000,000 114,000,000 119,000,000 79,000,000 52,000,000 52,000,000 53,000,000 Stations 861,400,000 924,800,000 988,200,000 1,208,400,000 1,464,200,000 1,898,330,000 2,213,000,000 1,647,000,000 Depots 29,000,000 53,000,000 63,000,000 40,000,000 56,000,000 138,000,000 270,000,000 168,000,000 Lineside 0 8,000,000 6,000,00000000 Buildings IT 102,000,000 102,000,000 101,000,00000000 Other 219,000,000 493,000,000 818,900,000 708,800,000 598,900,000 563,000,000 493,000,000 319,000,000 Renewals
Totals 3,582,100,000 4,868,500,000 5,838,700,000 5,705,300,000 6,059,600,000 7,041,930,000 7,632,200,000 6,390,500,000
Assumptions: (1) Figures exclude Network Rail Rolling Stock, Maintenance and Renewals
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STEP 1: We are not modelling every category above. We are modelling the following:
2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14
A. Permanent 900,900,000 1,051,000,000 978,000,000 958,000,000 1,067,000,000 1,109,000,000 1,027,000,000 938,000,000 Way B. Signalling 504,000,000 816,000,000 947,000,000 791,000,000 721,000,000 808,000,000 711,000,000 884,000,000 C. Telecomms 264,000,000 344,000,000 402,000,000 377,000,000 305,500,000 199,600,000 152,200,000 100,500,000 D. Civils 403,900,000 574,200,000 828,600,000 726,400,000 891,700,000 1,319,500,000 1,739,000,000 1,512,000,000 E. Electrification 141,900,000 313,500,000 428,000,000 461,700,000 437,300,000 418,500,000 437,000,000 276,000,000 (and plant) F. Rolling Stock 156,000,000 189,000,000 278,000,000 434,000,000 518,000,000 588,000,000 590,000,000 546,000,000 G. Stations 861,400,000 924,800,000 988,200,000 1,208,400,000 1,464,200,000 1,898,330,000 2,213,000,000 1,647,000,000 H. Depots and Lineside 29,000,000 61,000,000 69,000,000 40,000,000 56,000,000 138,000,000 270,000,000 168,000,000 Buildings
Total 3,261,100,000 4,273,500,000 4,918,800,000 4,996,500,000 5,460,700,000 6,478,930,000 7,139,200,000 6,071,500,000
Therefore Totals not included are:
2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14
IT 102,000,000 102,000,000 101,000,000 00000 Other Renewals 219,000,000 493,000,000 818,900,000 708,800,000 598,900,000 563,000,000 493,000,000 319,000,000
Total 321,000,000 595,000,000919,900,000 708,800,000 598,900,000 563,000,000 493,000,000 319,000,000
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Prorated IT and Other Renewals across totals:
2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 A. Permanent 989,578,329 1,197,330,876 1,160,902,781 1,093,901,211 1,184,022,781 1,205,368,845 1,097,919,851 987,283,044 Way B. Signalling 553,610,254 929,611,794 1,124,105,249 903,210,707 800,075,375 878,212,828 760,098,358 930,445,854 C. Telecomms 289,986,324 391,895,168 477,180,898 430,480,957 339,005,585 216,944,654 162,710,225 105,780,326 D. Civils 443,657,106 654,145,946 983,562,418 829,446,597 989,496,826 1,434,160,677 1,859,087,265 1,591,441,324 E. Electrification 155,867,649 357,148,649 508,043,344 527,196,440 485,260,696 454,866,422 467,177,191 290,501,194 (and plant) F. Rolling Stock 171,355,555 215,314,496 329,990,770 495,566,937 574,811,434 639,095,474 630,742,660 574,687,145 G. Stations 946,190,224 1,053,560,033 1,173,010,356 1,379,822,780 1,624,785,526 2,063,289,305 2,365,819,504 1,733,534,300 H. Depots and Lineside 31,854,558 69,493,038 81,904,184 45,674,372 62,141,777 149,991,795 288,644,946 176,826,814 Buildings Total 3,582,100,000 4,868,500,000 5,838,700,000 5,705,300,000 6,059,600,000 7,041,930,000 7,632,200,000 6,390,500,000
STEP 2: We still know that these totals do not include all of rail expenditure
From 'Rail Market' we know the rail totals should be:
2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14
Total 5,123,000,000 6,234,000,000 7,221,000,000 8,561,000,000 8,993,000,000 9,166,500,000 9,377,200,000 7,831,500,000
Therefore the totals missing each year are:
2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14
Total 1,540,900,000 1,365,500,000 1,382,300,000 2,855,700,000 2,933,400,000 2,124,570,000 1,745,000,000 1,441,000,000
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Prorating these missing figures over all classes:
2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 A. Permanent Way 1,415,261,936 1,533,154,089 1,435,744,084 1,641,436,606 1,757,197,978 1,569,032,001 1,348,944,476 1,209,906,448 B. Signalling 791,754,929 1,190,346,086 1,390,234,813 1,355,298,909 1,187,384,951 1,143,172,098 933,884,637 1,140,252,985 C. Telecomms 414,728,773 501,812,566 590,152,476 645,951,566 503,115,260 282,397,464 199,911,732 129,632,834 D. Civils 634,503,603 837,618,533 1,216,418,761 1,244,613,309 1,468,503,690 1,866,850,969 2,284,142,593 1,950,296,961 E. Electrification (and 222,916,715 457,320,463 628,321,542 791,076,494 720,171,205 592,100,895 573,990,979 356,006,588 plant) F. Rolling Stock 245,067,002 275,705,160 408,115,394 743,615,331 853,072,683 831,912,368 774,953,496 704,273,903 G. Stations 1,353,209,715 1,349,058,898 1,450,718,102 2,070,471,810 2,411,330,159 2,685,789,466 2,906,732,351 2,124,430,618 H. Depots and 45,557,327 88,984,205 101,294,828 68,535,975 92,224,074 195,244,739 354,639,736 216,699,662 Lineside Buildings Total 5,123,000,000 6,234,000,000 7,221,000,000 8,561,000,000 8,993,000,000 9,166,500,000 9,377,200,000 7,831,500,000
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STEP 3: In order to get to calendar years
Dates 01/04/2006 01/04/2006 01/01/2007 31/03/2007 31/12/2006 31/03/2007 Number of Days 365 275 90
% Split (1st April - 31st Dec) 75.34% % Split (1st Jan - 31st Mar) 24.66%
2007 2008 2009 2010 2011 2012 2013
A. Permanent Way 1,504,084,791 1,459,762,989 1,590,717,902 1,728,654,078 1,615,429,091 1,403,212,632 1,244,189,797
B. Signalling 1,092,063,335 1,340,947,182 1,363,913,242 1,228,788,392 1,154,073,897 985,489,764 1,089,367,639
C. Telecomms 480,339,850 568,370,033 632,192,886 538,335,171 336,821,030 220,250,680 146,961,877
D. Civils 787,535,399 1,123,015,965 1,237,661,229 1,413,297,843 1,768,628,352 2,181,248,768 2,032,615,062
E. Electrification (and plant) 399,522,279 586,156,892 750,945,136 737,654,701 623,679,875 578,456,438 409,756,164
F. Rolling Stock 268,150,545 375,466,295 660,889,319 826,083,199 837,129,980 788,998,150 721,701,748
G. Stations 1,350,082,387 1,425,651,449 1,917,655,827 2,327,282,895 2,618,114,568 2,852,253,283 2,317,326,936 H. Depots and Lineside 78,276,208 98,259,332 76,613,501 86,383,173 169,842,384 315,336,860 250,712,283 Buildings
STEP 4: Assumed prices are already at 2007 constant price levels and do not need further adjustment
Note: The figures above have been generated by a computer model; the precise nature of the figures should not imply an artificial level of accuracy. Rather they should be read as if rounded to the nearest £1m.
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Appendix D
Gap Analysis: Projections & Scenarios
D.1 Introduction
Scenarios
0 Base Case – Current Projections 1 Competition for scarce resources 2 Implementation of Supply-side solutions 3 Demand-side reductions 4 Combined scenario: Supply-side solutions + demand reductions
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Appendix Gap Analysis, Projections
& Scenarios
D.1 Introduction
D In this section of the report we present an analysis of the potential
gap between supply of and demand for ETP resources in the
transportation infrastructure sector, projected to 2013 according to
selected scenarios.
The demand model is based on known spending plans on transportation infrastructure up to 2013; it converts capital spend See Appendix C for more detail on the Demand Data into a demand for ETP resources over the same period. The “base case” projection, or “Scenario 0”, illustrated in the chart below, is
The Base Case (Scenario 0) presents based on the assumption that infrastructure spending will occur as supply – demand – gap through to is currently planned. 2013, as if there is no change to spending plans (demand side) and no The currently available supply of the same resources is estimated interventions that affect the supply side on the basis of current vacancy rates in all the required ETP skills, or disciplines. Our example projections of the supply of suitably- Supply-side scenarios: qualified ETP personnel are based on three theoretical scenarios:
¾ Scenario 0: Supply ¾ The first is the “base case” or “Scenario 0”, whereby the diminishing by 750 per availability of ETP resources continues to diminish at an annum attrition rate estimated to be approximately 750 individuals ¾ Scenario 1: Supply annually (through retirement, emigration and other factors). diminishes at a faster rate due to higher than ¾ A worst-case supply-side scenario “Scenario 1” is one anticipated competition for scarce resources from other where competition for scarce ETP resources is higher than sectors or from overseas is currently experienced - as a result, for example, of
increased capital spending in the power sector. ¾ Scenario 2: Improvements in supply arising from successful ¾ An alternative scenario “Scenario 2” is one where a range interventions of interventions including education and training initiatives,
positive image campaigns and so on, successfully convert an annual attrition of 750 individuals to a (conservatively
estimated) net annual increase of 2,500 ETP personnel by 2012.
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Demand-side scenarios: On the demand side, an alternative scenario “Scenario 3a” is one
Scenario 3a: Spending plans are where infrastructure spending plans are cut or subjected to lengthy reduced, thus reducing demand for delays because of a downturn in economic fortunes; another resources scenario “Scenario 3b” is one where improved efficiencies in the Scenario 3b: Improvements in deployment of resources or better project planning results in a efficiencies smaller demand for ETP personnel. Either or both of these scenarios are possible, and example resource-demand cases are
shown in the scenarios illustrated below.
“Scenario 3c” shows the potential combined effect of reduced Scenario 3c: A combination of reduces spending, improved efficiency and infrastructure spending, increased efficiencies and the proposed successful interventions on the supply supply-side initiatives all acting simultaneously. side
It should be noted that Scenarios 0, 1,2 and 3 are illustrative only – The scenarios are illustrative only and they are based on a selective set of circumstances and are in effect are not intended to show known future circumstances sensitivity analyses, which show that very strong intervention is needed in order to have a proportionally significant effect on the
potential shortfall.
Moreover, they make the assumption that there is no other pool of The scenarios make the assumption qualified ETP resource available in the UK. There are, of course, a that there is no other source of ETP skills which, in reality, there is; i.e. similar number of such personnel with similar generic skills other construction sectors employed in the general construction industry – under normal
circumstances not available to employers in the transport sector.
The reality is that market forces will tend to close, or at least
A slowing down of activity in other diminish the resource gap in the transport sector – especially if, as sectors will inevitably give rise to more seems likely in the current financial circumstances, there is a resources being available to transportation slowing down of building starts for office, industrial and retail developments. The extent to which this might occur will depend
on a number of factors: the extent of any recession in general building; the degree to which generic ETP skills may in reality be
redeployed; the ability of the transport sector to retrain and absorb such new recruits and so on.
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Quantification of these factors is beyond the scope of our study
Modelling the almost infinite and this report – but potentially, such a source of additional ETP combinations of scenarios is beyond resources, made available through market forces, could have a the scope of this report similar level of impact and in a shorter timescale than might be achieved through longer-term interventions in education,
promotion and retention. Our analysis of current ETP resources does show that the highest shortages in terms of numbers of Disciplines with the highest numerical shortage exist in the generic skills that personnel occur in the generic disciplines – which may be are transferable across different sectors supposed to be reasonably transferable.
Very crudely, if we were to suppose that half of all ETP resources are employed in the general construction sector (ie not transport-
related) and that there were a moderate to severe recession in building starts in the UK and overseas, releasing 10% of those Supply-side could be boosted by 10% if general construction were to reduce personnel for redeployment to transport infrastructure projects, its output by 10% one could foresee a scenario (“Scenario 4”), whereby market forces
alone could increase supply by (very approximately) 10%.
Accordingly, our final scenario attempts to illustrate an example
“best” case whereby interventions and market forces combine to improve supply at the same time as transport infrastructure plans
are selectively delayed and efficiencies are introduced which effectively reduce demand.
Scenario 0: Projections based on the current position (Base Case)
See also: Scenario 1: Competition from other sectors (Worst Case) Appendix A – Methodology Appendix B – Supply data and Scenario 2: Supply-side solutions implemented evidence base Appendix C – Demand model Scenario 3a: Reductions in demand arising from economic downturn
Scenario 3b: Reductions in demand arising from efficiencies
Scenario 3c: Reductions in demand arising from Scenario 3a and Scenario 3b combined
Scenario 4: Combined effects of economic downturn, efficiencies, supply-side initiatives and transfer of resources through market forces (Best Case)
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Scenario 0: The Current Position (Base Case)
Scenario Description Based upon the current supply / demand projections the current gap will widen to a maximum of 35,500 in 2012.
Supply shows a steady decline, arising from an ageing workforce retiring and there being fewer entrants than leavers in the industry.
This is the current or base position.
Base Case: Current Projections - No interventions beyond initiatives already in place
ETP Supply and Demand - Transport Infrastructure 130,000
120,000
110,000
100,000
90,000
80,000
70,000 Number of Personnel 60,000
50,000 2007 2008 2009 2010 2011 2012 2013
Supply Demand
2007 2008 2009 2010 2011 2012 2013 Supply 87,400 86,600 85,900 85,100 84,400 83,700 83,000 Demand 96,900 103,400 113,200 117,700 118,500 119,200 112,500 Gap 9,500 16,800 27,300 32,600 34,100 35,500 29,500
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Scenario 1: Worst Case – Competition for ETP Resources from Other Sectors (with no supply-side initiatives taken)
Scenario Description
The industry does not exist in isolation, and that its resources have skills that are transferable to other industries. The power generation, power transmission, water and environment industries all have large planned investment programmes and they will attempt to recruit resources from transportation.
Similarly, overseas transportation programmes will seek to recruit from the UK.
The worst-case scenario illustrated here is based on currently-projected transportation spending plans and supply of ETP resources diminishing at a rate of up to 1,700 personnel annually (compared with the currently-estimated annual attrition of 750). In this case, the shortage could rise to 37,000 in 2012 compared with our base (all things remain equal) case maximum shortage of 35,500.
Scenario: Competition for scarce resources - Resulting in supply decreased by up to c. 1700 ETPs pa
ETP Supply and Demand - Transport Infrastructure 130,000
120,000
110,000
100,000
90,000
80,000
70,000 Number ofPersonnel 60,000
50,000 2007 2008 2009 2010 2011 2012 2013
Supply Demand - base case
2007 2008 2009 2010 2011 2012 2013 Supply 87,400 86,100 84,400 83,500 82,600 81,800 80,900 Demand 96,900 103,400 113,200 117,700 118,500 119,200 112,500 Gap 9,500 17,300 28,800 34,200 35,900 37,400 31,600
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Scenario 2: Implement Supply-side Solutions
Scenario Description
Whereas the base position shows an attrition rate of 750 per annum this scenario models the effect upon the supply of resources by the implementation of recruitment and retention programmes turning the attrition rate into a positive gain estimated conservatively at 2500 per annum by 2012.
By 2013, if the measures suggested are implemented, the number of resources in the industry would rise to at least 90,000 compared with a fall to approximately 83,000 if no measures were taken.
Scenario: Improve Supply – targeted education, recruitment and retention initiatives - Resulting in additional resources rising to an annual growth of 2500 by 2012
ETP Supply - Transport Infrastructure 100000
90000
80000
70000 Number of Personnel 60000
50000 2007 2008 2009 2010 2011 2012 2013
Supply - with interventions Supply - base case
2007 2008 2009 2010 2011 2012 2013 Supply - with interventions 87,400 86,600 87,000 87,600 88,300 89,100 90,300 Supply - base case 87,400 86,600 85,900 85,100 84,400 83,700 83,000
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Scenario 2 continued: Implement Supply side Solutions - Comparison of Demand with Supply
Scenario Description
This chart compares supply and demand where supply-side initiatives are implemented. Based upon the current demand projections the current gap would widen to a maximum shortage of 30,200 ETP personnel in 2010 – compared with the base case, in which the shortage would reach 35,500 in 2012.
We have modelled conservative estimates of the effects of implementing initiatives to improve supply – but as the chart shows, even if those initiatives were twice as effective at increasing supply (to approximately 100,000 ETP personnel by 2012, say), there would still be a very substantial shortage if all other factors remained as they are.
Scenario: Improve Supply – targeted education, recruitment and retention initiatives - Resulting in additional resources rising to an annual growth of 2500 by 2012
ETP Supply and Demand - Transport Infrastructure 130000
120000
110000
100000
90000
80000
70000 Number of Personnel of Number
60000
50000 2007 2008 2009 2010 2011 2012 2013
Supply Demand
2007 2008 2009 2010 2011 2012 2013 Supply 87,400 86,600 87,000 87,600 88,300 89,100 90,300 Demand 96,900 103,400 113,200 117,700 118,500 119,200 112,500 Gap 9,500 16,800 26,200 30,100 30,200 30,100 22,200
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Scenario 3a: Demand side Reductions arising from Economic Downturn Scenario 3b: Demand side Reductions arising from Efficiencies
Scenario Description
Here we show the relative effects of two separate factors that might reduce demand, compared with that forecast from current infrastructure investment plans.
One scenario is that infrastructure spending plans are cut or subjected to lengthy delays because of a downturn in economic fortunes. We have modelled a case whereby expenditure and therefore demand for ETP resources is reduced by up to 5% in 2010.
In the other scenario, improved efficiencies in the deployment of resources or better project planning results in a smaller demand for ETP personnel – savings rising up to 12% by 2012. Either or both of these could occur – they are not mutually exclusive.
Demand: Base Case and Alternative Scenarios - Improved efficiencies reduce demand by up to 12% - Demand reduced by: 3% in 2009, 5% in 2010, 5% in 2011, 3% in 2012, 2% in 2013
ETP Demand - Transport Infrastructure 130,000
120,000
110,000
100,000
90,000
80,000
70,000 Number of Personnel 60,000
50,000 2007 2008 2009 2010 2011 2012 2013
Demand Base Case Demand with Efficiencies Demand in Economic Downturn
2007 2008 2009 2010 2011 2012 2013 Demand Base Case 96,900 103,400 113,200 117,700 118,500 119,200 112,500 Demand with Efficiencies 96,900 101,700 109,400 111,800 110,600 109,200 101,300 Demand in Economic 96,900 103,400 109,800 111,800 112,600 115,600 110,300 Downturn
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Scenario 3c: Demand side Reductions arising from Economic Downturn and Efficiencies, Combined with Supply-side Initiatives
Scenario Description
Here we show the effects of these same two factors reducing demand simultaneously, combined with the potential effects of the proposed supply-side initiatives.
- Infrastructure spending plans are cut or subjected to lengthy delays because of a downturn in economic fortunes, resulting in demand reduced by up to 5%; - Improved efficiencies in the deployment of resources or better project planning results in a smaller demand for ETP personnel – up to 12% by 2012; - Supply side initiatives providing additional resources, an increase of up to 2500 each year.
In this theoretical combined scenario, the shortage would widen to a maximum of approximately 19,000 ETP personnel in 2009 – compared with the base case, in which the shortage would reach 35,500 in 2012. The gap would close to 10,000by 2013.
COMBINED Scenario: Economic Downturn, Increased Efficiencies and Supply Initiatives
ETP Supply and Demand - Transport Infrastructure 110000
100000
90000
80000
70000 Number of Personnel 60000
50000 2007 2008 2009 2010 2011 2012 2013
Supply Demand
2007 2008 2009 2010 2011 2012 2013 Supply 87,400 86,600 87,000 87,400 87,800 88,400 89,000 Demand 96,900 101,700 106,100 106,200 105,100 105,900 99,300 Gap 9,500 15,100 19,100 18,8600 17,300 17,500 10,300
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Scenario 4: “Best” Case - Demand side Reductions arising from Economic Downturn Combined with Supply-side Initiatives and Market-Driven Transfer of ETP Resources from Other Sectors
Scenario Description
Here we show the effects of several factors reducing demand simultaneously, combined with the potential effects of the proposed supply-side initiatives and transfers of resources into the sector driven by market forces.
- Infrastructure spending plans are cut or subjected to lengthy delays because of a downturn in economic fortunes, resulting in demand reduced by up to 5%; - Improved efficiencies in the deployment of resources or better project planning results in a smaller demand for ETP personnel – up to 12% by 2012; - Supply side initiatives providing additional resources, an increase of up to 2500 each year. - A recession in building starts releases 10% of personnel currently engaged in retail, industrial and office construction (including from overseas) for redeployment to transport infrastructure projects, market forces increasing supply by approximately 3000 in 2009, 4000 in 2010, rising to an additional 8000 by 2013.
In this theoretical combined scenario, the current shortage would widen to a maximum of approximately 16,000 ETP personnel in 2009 – compared with the base case, in which the shortage would reach 35,500 in 2012. The gap would close, that is ETP resources would be equal to demand, by 2013.
COMBINED Scenario: Economic Downturn, Increased Efficiencies, Supply Initiatives, Transfer of Resources (by market forces from retail, office & industrial construction)
ETP Supply and Demand - Transport Infrastructure 110000
100000
90000
80000
70000 Number of Personnel 60000
50000 2007 2008 2009 2010 2011 2012 2013
Supply Demand
2007 2008 2009 2010 2011 2012 2013 Supply 87,400 86,600 90,000 91,600 94,300 95,100 98,300 Demand 96,900 101,700 106,100 106,200 105,100 105,900 99,300 Gap 9,500 15,100 16,100 14,600 10,800 10,800 1,000
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Appendix E
Solutions
E.1 Solution Identification Process This section shows how the process for eventually identifying the solution sets was carried out
E.2 Common Themes During the consultation process some common themes began to emerge as to how the problem of resource shortages could be solved. The themes embraced the following areas:
¾ Education This embraces the area of skills ¾ Training
¾ Status and This deals with the image of the industry and the effect that its image has Perception on the ability to both recruit and retain resources
¾ Coordination It is considered that the industry is fragmented and lacks cohesion
¾ Efficiency This deals with the need to use resources more efficiently
Having identified common themes that have emerged, this section is supplemented by some further background research.
E.3 Detailed Solutions
The detailed solutions have emerged through further consultation and discussion around the ‘common themes’ that emerged from the first rounds of consultation.
The detailed solutions are arranged in a matrix that considers the subject matter, some examples of best practice of the solution in action (where applicable) and consideration of who may subsequently ‘own’ the solution.
The matrix is allocated a traffic light system that allocates a green, amber or red light to those solutions that are easy, medium and difficult to implement.
E.4 Conclusions
The conclusions bring together all the solutions and arrange them into a summary action plan.
NB See also Appendix F; Case studies support the solution sets developed in this appendix.
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Appendix SOLUTIONS
E.1 Solution Identification Process
Inititial E Hypothesis
Identify Consultant’s Generic Workshop Step 1 Solutions Identify Generic Solutions through the Consultant’s workshops
Increase Increase Improve Resource Skill Effectiveness Pool Levels
Test ILG Step 2 Generic Workshop Test Generic Solutions in ILG Solutions workshops
Increase Increase Improve Resource Skill Effectiveness Pool Levels
Identify Step 3 Industry Detailed Forum Identify Detailed Solutions through Solutions the Industry Forum See also E.2 & E.3 below
Increase Increase Improve Resource Skill Effectiveness Pool Levels
Step 4 Select Following consultation and further Appropriate research,select the appropriate Solutions solutions
Figure E.1
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E.1.1 Identifying the detailed solutions
Having identified, tested and established the generic solution areas, the workshop groups of the Industry Forum was the arena in which
the detailed solutions were identified. The process was managed as follows:
Topic Group 1: Increase Group 2: Increase Group 3: Increase Presentaions Pool Skills Efficacy Each of the three generic solutions generated three sub-topic areas Break into Break into Break into subgroups subgroups subgroups Industry Subgroup 1A Subgroup 1B Subgroup 1C Subgroup 2A Subgroup 2B Subgroup 2C Subgroup 3A Subgroup 3B Subgroup 3C A workshop was held for each sub- Consultation s s se se i topic, making a total of 9 i r r on on oup oup a a ti ti u u mm workshops mm Sol Sol Solutions Subgr Subgr Subgroup Su Su Summarise Solution Group 1: Increase Group 2: Increase Group 3: Increase Presentations Pool Skills Efficacy
Participation: Group Leader Participation: All Members of the Forum
Figure E.2
The detailed solutions were generated from the following sub-topic
areas as follows:
Increase the size of the resource pool: The solutions identified under this topic area were to target the individual by removing
perceived barriers (image), encouraging people to consider a career (recruiting) and keeping individuals for longer in the industry
(retention). By raising awareness of careers in engineering (image) the solutions from this topic area can also target groups which are
currently under-represented in the industry, such as women and ethnic minorities.
¾ Public Image: Removing the barriers that would otherwise prevent an individual from considering a career in
engineering in transportation or transport planning.
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¾ Recruitment & Retention: Ensuring individuals make the
transition from considering a career to actively making a choice to join the industry. Keeping individuals in the
industry for longer.
Increase the skills of the resource pool: The solutions identified
in this topic area were to target groups of people; School-aged children, under-graduates and professionals in the following ways;
¾ School: Providing a route to an ETP career from the earliest stages of the education process.
¾ Industry engagement: Ensuring that the transport industry itself is driving the education agenda to ensure a continuous
build up of a resource pool with the right skills to tap into.
¾ Professional Institutions: Ensuring that continuing
professional development keeps pace with the requirements of the industry.
¾ Education Providers: Working with industry to ensure that
the courses meet the needs of the industry.
Improve the effectiveness of the resource pool: The solutions
identified in this topic area focussed upon how the industry organises itself, with a view to utilising its resources more effectively and
productively.
¾ Contract Conditions: Ensuring that businesses contract with
one another in the most efficient way.
¾ Management / Working Practices: Looking at the ways the
industry organises, procures and executes the work.
¾ Planning the workload:
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These are the generic problems that E.1.2 Process for selecting detailed solutions need solving
Increase Increase Numbers Increase Skills Effectiveness See 2 below Workshop Outputs Workshop Outputs Workshop Outputs
See 3 below Identify Common Themes
See the Cause and Effect Diagram below Identify individual solutions
See 4 below Cause and Effect Diagram
See 5 below
Map on existing Initiatives and Bodies of work
Recommend Solutions
Figure E.3
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Common Themes E.2 Common Themes
¾ Education E.2.1 Education ¾ Training By far the most common theme emerging, not just from the ¾ Status & Perception Industry Consultation, but also from the open questions posed in (Image) / how it affects recruitment the Survey, is that Education and Training is seen as a key to ensuring the future success of the industry. In particular the ¾ Using resources efficiently following topic areas were explored at length:
31 ¾ The need for ¾ The need to inspire school-aged children to study STEM
coordination subjects
¾ A greater degree of employer involvement in setting or
influencing the education agenda
¾ The need to teach behavioural, interpersonal and other
‘soft skills’
Sir Tom McKillop32 argues that a shortage of graduates with STEM subjects are at the heart of science-based qualifications is threatening the future of British Engineering’s future industry. Whilst Employers are seeking closer partnerships with
universities he postulates whether graduates actually have the skills
that the industry requires. In particular he cites a recently
published survey by the Council for Industry and Higher
Education (CIHE)33. Referring to that report he argues that;
Employers do not necessarily believe “There is a worrying mismatch between what that graduates offer what they need employers now seek and what many graduates offer.” Sir Tom McKillop
To solve this mismatch Sir Tom puts forward two broad solutions. Two solutions to the mismatch: Firstly, he believes that industry needs to work harder at getting the
Greater employer message into schools that studying STEM subjects can open up involvement in stimulating exciting opportunities. STEM education
Greater emphasis on ‘soft “We need to simplify the often confused messages we skills’ such as team-working, give to schools. We can do more to help our staff and communication skills work as ambassadors and even train as STEM
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teachers to help ease the short supply” Sir Tom McKillop Secondly, he believes that in today’s fast-changing society, technical
knowledge is not enough. Graduates also need the soft skills too. A survey by CIHE shows that Team-working, presentation and communication skills are just graduates may have, for example, good IT skills but poor some of the skills that industry is looking for. For example, the communication skills CIHE survey shows that graduates have good IT skills, but very
poor communication skills.
International experience of study or International employers favour graduates with overseas study or work placements makes graduates work experience. 65% of international employers say that relevant more employable overseas study or work experience make graduates more employable.
“Understanding cultural diversity and differing working practices allows graduates to slot more easily into
expanding overseas operations”
Sir Tom McKillop Caroline Plumb is a co-founder of the recruitment consultancy Freshminds. She looks at the problem from a different
perspective. She postulates; not that graduates fail to offer what industry wants, but rather that industry does not meet the
aspirations of graduates.
An alternative view is that employers Today’s graduates fall into the ‘Generation Y’ category. I.e. those need to re-align their business much who were born after 1982. Both the post-war ‘baby-boomers’ more to the needs of Generation Y (who are now retiring) and ‘Generation X’ took the view that a job/career was for life. Not so Generation Y. They want choice.
As the table below suggests, today’s generation obtain choice through more frequent job-change, through which they exhibit the
so-called ‘freedom psychology’.
Generation Ave job duration Generation Y seek stimulation from Baby-boomers 5+ years choice and variety – this is done Generation X 3 years through more frequent job changes Generation Y 16 months Source: Daily Telegraph 10 April 2008, reporting Caroline Plumb, Freshminds Furthermore, today’s graduates are more conscious of image, and
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their place in the world.
“41% of Generation Y believe that the company they To Generation Y, image and work for says something about them as individuals. branding is becoming as important as For example people who have always named the money and perks that a job can offer Goldman Sachs as one of their aspirational employers, are now naming Innocent drinks in the same breath. Attracting candidates is fast becoming
as much about brand as it is about money and perks.” Caroline Plumb She continues to argue that employers who are on top of their
game are responding to the challenge posed by Generation Y by
offering graduate rotations to allow employees to test the water in
differing roles.
Where Caroline is in agreement with Sir Tom is that if the STEM It is common ground amongst protagonists that greater subjects continue to be at the heart of graduate recruitment then communication of STEM subjects to more has to be done to communicate that at grassroots level. younger students is very important
She believes that celebrity business people such as Sir Alan Sugar
and Sir Richard Branson have done a fantastic job of promoting an
entrepreneurial spirit to Britain’s school-leavers on TV and in the
press.
The use of high-profile personalities is “Perhaps there is a case for leading Chief Executives an effective way of inspiring students and Chief Engineers with a background in STEM subjects to have more visibility – if not in the mass
media, then in schools and local communities.”
Caroline Plumb The transportation industry is extremely fortunate in that it exists against a backdrop of some hugely inspiring and iconic projects. It The transportation industry can use its iconic projects, in conjunction with would only take one or two big personalities to communicate the high-profile figures to get its message excitement that those projects offered through the mass media to across both students and the wider public.
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E.2.2 Training
34 Lord Leitch, in his 2006 report called for a skills system that is ‘demand-led’.
“The skills system must meet the needs of individuals and employers. Vocational skills must be demand-led rather than centrally planned” Lord Leitch
Learning should be seen as something that is done by all people at
all stages of their life, not simply a process undertaken by young
people before entering the workforce.
In research carried out by CIHE35 it was found, inter alia, that:
¾ Businesses do not generally relate the learning they offer staff to academically recognised levels.
Businesses do not, as a rule, invest in ¾ Only 19% of all trainees were working towards a nationally academic or professional qualifications recognised qualification in 2005. for their staff ¾ Only 14% of small businesses offer training to formal qualifications.
¾ Multinational businesses offer a range of staff development opportunities, but most of these are for short courses Training is more focussed on short developed, and often run, internally. Only where they courses for specific business needs, e.g. relate to the senior management team are they likely to health and safety training involve academics, modules from a university or a whole course.
The report further concludes:
“Increasing the higher level of learning of those in work from 29%
Businesses and the education sector to 45% by 2020 [as required by the Leitch Report] through closer need to work closer if the targets set by engagement between businesses and Higher Education Institutions the Leitch Report are to be met is probably the greatest challenge facing businesses and the higher education sector.”
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E.2.3 Status & Perception
36 In 2006, in a study carried out by Sir Christopher Frayling , a poll The experience gained from was taken of children aged 5 to 11 to establish what young people recruitment campaigns for teachers demonstrates that there is a direct think of, or perceive engineering to be. link between the status of a profession and its ability to recruit and retain high-quality people – see the Case He asked the children to draw what they thought an engineer was, Study at Appendix D.3 and the results were quite surprising. Sir Christopher said “most
drew Bob-the-Builder types, and most of the girls drew men.”
As part of the same study, Sir Christopher looked at the media and found that the “hero figures” of the 19th century like Brunel had
been replaced by Wallace and Grommit.
Primary School Children see engineers as fixers and handymen rather than bridge-builders or
computer designers.
Daily Telegraph 10 April 2008 Reporting upon Sir Christopher Frayling’s study
Primary School-aged children have little knowledge of what an engineer is
This research led Sir James Dyson to drop the term ‘engineering’ from his new Design and Innovation School in Bath – see the Case Study at 4.1
Most girls drew pictures of men
Figures such as Wallace and Gromit appear more readily in the media than do historical figures such as Brunel
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E.2.4 Using Resources Efficiently
Contracts & Relationships
“Why do we spend so much energy and intellect working out what happens when it goes wrong rather than how to make it go right?” Andy Mountain Franklin & Andrews There are sufficient projects that have not gone as planned for most in the industry to understand that when it happens it can be
extremely wasteful of resources both to resolve disputes and conclude the project.
Equally there are examples, even in projects that proceed more or
less according to plan, where resources may be used more
efficiently. It is inherent in the nature of project work that teams come together, execute the work, and then disband. On each
project there is very often a period needed at the outset for
harmonisation between staff working for client, contractor and
consultant.
The BAA experience at Terminal 5 has taught us that allocating
risk in the most appropriate proportions, using the appropriate Working toward collaborative contract to allocate those risks and ensuring that all parts of the working is seen as a positive move supply chain are both bound by the same terms and conditions and
share the same vision of the project outcomes then successful
project delivery becomes a natural consequence.
The Terminal 5 project is a good example where project planning
concentrated on a successful project outcome, rather than on
preparing a defensive position in the event that things go wrong.
Furthermore, the standardisation of contract terms through the Standardisation of contract terms leads to efficiencies supply chain ensured that project teams were operating more or less to the same agenda from the outset.
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There is a general acceptance that standardisation of terms and A standardisation of terms and conditions across the industry would be welcome. It is noted that conditions, as far as is possible, across the industry would be welcome the Highways Agency, in general, has standardised on the New
Engineering Contract (NEC3) suite of contracts, whilst TfL will
use various forms for different types of contract and Network Rail
has its own suite of contracts.
Whilst early contractor involvement (ECI) is generally welcomed Early contractor involvement is seen as a positive, whereas competitive the use of ‘competitive dialogue’, where IPR is made freely dialogue is not due to the loss of IPR available, was seen as working against innovation and unlikely to
lead to full engagement between client and supplier.
“The legal framework for contracts can affect the way parties behave.” Construction Matters House of Commons Business & Enterprise Committee Report July 2008
NEC3 is a suitable form of The NEC3 fully complies with the UK Office of Government Engineering contract for all sectors of Commerce (OGC) ‘Achieving Excellence in Construction’ the industry initiative and has been endorsed by OGC for public sector procurers.
Strategic level planning:
“Lack of forward visibility of workload is the single most important factor that restricts our members from investing in plant, equipment and skills.” Lack of confidence in future workload Peter Loosley, Railway Industry Association restricts the supply chain from investing “In order for the suppliers to invest in people development there is a need for increased supplier
confidence which will be generated by, amongst other
things, clear visibility and certainty of work coming to the market”
Increased business confidence arising “Confidence is a key factor for suppliers to invest in from greater certainty of workload people, equipment and processes” leads directly to greater investment in Railway Industry Association: Response to skills Network Rails’ Strategic Business Plan. 14 January 2008
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E.2.5 The need for coordination
Unless the solutions are implemented in a coordinated way, their Coordination of the implementation of full effect will be dissipated. all solutions is desirable, if the full effect of the solutions is to be achieved. Furthermore, there are initiatives being implemented at present that may be undermined, if not taken into consideration and coordinated with new sets of initiatives.
Cause and Effect Chart
The chart overleaf (Figure E.4) is a ‘cause and effect’ chart that shows a representation of the outputs of the dialogue, thinking and brainstorming that took place during the consultation phase of this project. i.e. the workshops, forum and direct surveys.
The chart characterises the suggested solutions as all working towards the three main objectives, which are: ¾ Increase the size of the resource pool ¾ Increase skill levels ¾ Increase the effectiveness of the resource pool
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14 – 19 Diploma Industry engagement In school / academia
10 /14 /2008
Project Brunel Increase Skills Improved Career Awareness
Improved take up Target Women & of academic courses Cause & Effect Ethnic minorities Improved public image
Engage PR / Advertising Agency Increase recruitment
Improve Improved Career Retention Awareness Overseas Recruitment Existing industry bodies Campaign Coordinated E.g. Professional Inst or Industry ‘Champion Longer View Coordinator Increase Numbers
Structured
Transitions to Target Women & Encourage Transportation / career change Ethnic Minorities Partnering initiatives Encourage Early contractor Encourage Consultant Standardisation Innovation Involvement Policy Review Themes Contracts Planning and Standards Body Solutions Increase Efficiency Objective Workload Planning
Figure E.4
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E.3 Detailed Solutions
Ranking the solutions
Through a process of extensive consultation the solutions that
were identified through workshops and the like have been refined
and ranked in respect of:
¾ Ranking Affordability ¾ The immediacy of their impact
¾ The effect of their impact ¾ Ease of implementation
Categorising the solutions Categories 3 Categories, or type, of solution were identified as working towards the 3 objectives (increase resource pool, increase skills and
work more effectively), as follows:
¾ Education & Training ¾ Recruitment & Retention
¾ Efficiencies
Tabulation of solutions Tabulation and ranking by a traffic- The identified solutions have then been tabulated according to light system their overall ranking. A comparison with best practice has been identified, where
possible and appropriate. A recommendation as to who ‘owns’ the solution is also made
where possible and appropriate
See tabulation of detailed solutions overleaf:-
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Table E.3.1 st Education: 1 Level Solutions
Impact Examples of best Overall Immediacy
Recommendation Implementation by Affordability practice Implementation Implementation
Promotion of the new 14-19 Diploma Royal Academy of in Engineering; this follows the Education Providers, Engineering; national agenda to increase skill levels Professional Institutions, Promoting and (c.f. the Leitch Report 2006), including supported by Employers supporting the 14-19 the inculcation of work-related skills and Government Diploma and work-based learning.
Employers to be involved in the creation and delivery of Network Rail Employers and education Apprenticeships, encourage staff to Advanced providers working progress professionally through NVQ Apprenticeship together levels, eg from BTEC to engineering Scheme Foundation degree
National Education Employers in partnership Business Partnership with education providers (NEBPN)
STEMNET Expand the use of ambassador STEMNET Science &
programmes particularly for, but not Engineering Royal Academy of limited to, STEM subjects. Ambassador (SEA) Engineers with the Programme support of major
employers such as TfL, London Engineering Network Rail, Mott Project (LEP) MacDonald, Atkins and ambassador the like programme
As part of the work-based learning of the new 14-19 engineering diploma Employers, supported by employers should create practical, education providers and New Engineering interactive and effective training engineering education Foundation Report programmes for these work days to bodies (Grant awarding 2007; Paths to stimulate interest in STEM subjects. Charitable Trusts), such Productivity It is vital, for WBL to be effective, as the New Engineering that best-practice is implemented by Foundation employers
Increase the number of employer Education providers to EDF course at LSBU sponsored relevant qualification form partnerships with courses Employers Haden Young BSc in Building Services Engineering at Liverpool Uni.
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Table E.3.2 Education: 2nd Level Solutions
Impact Implementation by Examples of best Overall Immediacy
Recommendation Affordability practice Implementation
Employers should invest more money Haden Young, in CPD / academic training to All Employers in Graduate Training encourage education providers to association with the Programme offer relevant courses, with the latter Education Providers and
thereby guaranteed a long term Sector Skills Councils market.
EPSRC – Engineering and Physical Science Employers partnering Employers to sponsor a greater Research Council with Education number of employees to pursue high Providers, supported by level qualifications, e.g. Doctorate in Engage Project: government funding engineering subjects. Facilitating dialogue agency – EPSRC between Employers
and Higher Education
Employers in partnership Masters Degree in Employers’ to invest in development with Education Transport Planning of specialist qualifications. Providers
Introducing transport specific modules into the curriculum of the 14- Facilitation by industry 19 Engineering Diploma to highlight bodies, e.g. IHT / RAE
transportation as a sector in its own / right. Science & Media Centre
Expansion of the London Engineering Project, into the National Engineering
Project; the specific benefits of this London Engineering Royal Academy of programme being to target under- Project Engineering represented groups (e.g. Women and ethnic minorities) into engineering
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Table E.3.3 rd Education: 3 Level Solutions
Impact Examples of best Overall Immediacy
Recommendation Implementation by Affordability practice Implementation Implementation
Increase the number of dedicated Employers and Dyson Academy engineering schools Government JCB Academy
Professional Institutions Provision of enrichment activities that in conjunction with the Further Mathematics demonstrate practical applications of Further Mathematics Network maths in the transport sector Network
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Table E.3.4 Recruitment & Retention: 1st Level Solutions Impact Overall Immediacy
Examples of best Affordability Recommendation Implementation by practice Implementation
GoSkills (Sector Skills Employers, supported Council) and by inclusion of some University Transport Overseas recruitment campaign disciplines on the Home Partnership (UTP) Office 'Shortage submission of Supported by: Occupation List' evidence April 2008
Submission of evidence for the Sector Skills Councils, TPSI; Researching the Migration Advisory Committee supported by Profession - Martin (MAC) Employers, professional Richards 2003 institutions & research (Transport Planning
Skills Initiative)
Flexible employment Employers to maintain contact with practices; e.g. part- employees who are on leave of Employers time home-working absence; offering part-time projects for women on where appropriate maternity leave
Employers to offer re-training programmes for employees returning Re-induction Employers from leave of absence from the programme industry
Presentations linking student courses Sector Skills Councils with career options with options for (leading), in partnership British Gas Academy greater involvement such as summer with major employers placements.
Interactive website showing all career paths; from school subjects through to career crossover to demonstrate the options for career changers. Options also include non-engineering related such as transport planning and project Government (e.g. Part of a coordinated / programme management. Directgov website) publicity campaign Accessible through government website as well as stands strategically placed in locations such as major train stations, the London Transport Museum, the Science Museum etc.
Professional Chartership programmes should include a minimum number of hours for presenting and liaising with Part of a coordinated Professional Institutions schools to raise awareness and interest publicity campaign in transport.
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Table E.3.5 Recruitment & Retention: 2nd Level Solutions
Examples of best Impact Overall Implementation by practice Immediacy
Recommendation Affordability
Implementation
Appoint a 'transport expert' who can be Professional bodies Part of a used for news stories / comments etc. that represent coordinated transportation, such as publicity campaign the Institution of Highways and Transportation
Professional bodies Part of a that represent coordinated Introduce 'transport' into Radio & TV transportation, such as publicity campaign storylines the Institution of Highways and British Gas Transportation Academy
Preparation of education packs to distribute Professional amongst school age children together with Institutions and major
school visits that highlight and explain the employers, in
various disciplines within Transport. conjunction with schools
Publicity campaign aimed at raising Engineering bodies awareness of the industry as a potential that have a focus on Turn your Talent to career path, including 'positive imaging'. education, such as Teaching Campaign ETB and RAE supported by Sector Skills Council (making use of professional PR agency)
Student debt write-off Employers Many employers The debt would be written off over time currently give (say 5 years). The unpaid debt can be 'golden hellos' as transferred to other employers accredited part-payment of into the scheme; this will help with student debt, e.g. retaining resources within the industry, KPMG, PwC, Asda, whilst still retaining flexibility to move Mott MacDonald between employers but there is not industry-wide scheme
Publicity about the industry should stress Major clients: TDA ‘Turn your its sustainability and green credentials Network Rail, Talent to Teaching’ TfL,HA partnering campaign with the Environment Agency
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Table E.3.5 Recruitment & Retention: 2nd Level Solutions
Examples of best Impact Overall Implementation by practice Immediacy
Recommendation Affordability
Implementation
Create a new Transportation and Institutions Science Media Engineering Media Centre to generate Centre greater interest and understanding of the transport industry
Part of a Promote the job security, progression and coordinated ETB other benefits to careers within the publicity campaign Sector Skills Councils transport sector including examples of Employers career paths and career progression e.g. Turn your Institutions options. Talent to Teaching Campaign
Publicity for engineering feats at rail Major clients: Part of a stations and other public places where Network Rail, coordinated engineering is visible TfL,HA publicity campaign
Part of a Major clients: e.g. Maximise advertising opportunities coordinated Network Rail, presented by all major projects publicity campaign TfL,HA
Career guidance should be incorporated into the curriculum at an earlier entry point Part of a Sector Skills Councils to steer children into transport career route. coordinated / Government / Career guidance should include pathways publicity campaign Employers that start at subject teaching of Science, Maths, English etc.
Engineering bodies engaged in promoting education of
engineering and Part of a Directly appeal to young children through science; such as coordinated partnerships with the Transport Museum, Engineering publicity campaign Science Museum, etc. Technology Board, Royal Academy of Engineering
Professional bodies Part of a that represent coordinated Use traffic news bulletins as a vehicle for a transportation, such as publicity campaign 'did you know' slot, about transport careers the Institution of Highways and Transportation
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Table E.3.6 rd Recruitment & Retention: 3 Level Solutions
Implementation by Examples of best Impact Recommendation Overall practice Immediacy Affordability Implementation Implementation
Many examples of flexible benefits schemes from major employers Introduction and expansion of flexible benefits schemes for employees Employers
Appeal to a wider pool of employees (more family friendly) e.g. utilise off-site Employers fabrication facilities
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Table E.3.7 st Efficiencies: 1 Level Solutions
Implementation by Examples of best Impact Recommendation Overall practice Immediacy Affordability Implementation
Latham Report - Constructing the More effective partnering leading to team (1994) increased productivity. Achieved through Major clients: Improvements in commonality and Network Rail, TfL, standardisation of contract terms across the (HA already Accelerating whole industry by the introduction of one standardised on NEC) Change (2001): Standard form of Contract. Egan e.g. New Engineering Contract (NEC). I.e. the removal of 'bespoke' contracts. OGC guidance on best practice procurement.
Rethinking Construction (Egan) 1998
The NAO report, Supply side integration. 50% of projects to Modernising be undertaken by integrated teams and Construction 2001, integrated supply chains where advantages Major clients: Carry has highlighted this include relationship continuity, where out a review of approach as knowledge and expertise can be transferred current procurement delivering value and more easily from one project to another. methods and work quality Integration emphasises the inclusion of the toward the benchmark improvements client in the team working around common figure of 50%.
objectives, processes, culture, values, Accelerating reward and risk. Change 2001.
OGC guidance on best practice procurement
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E.4 Conclusions
The industry has to:
¾ Invest more in Figure E.5 – Summary Conclusions from the ‘Solution Identification’ education and process training
¾ implement programmes Recruitment & designed to recruit Retention more and retain for Industry Education & Investment in better , more flexible rewards , longer those already Training Industry recruiting from Industry Influencing in the industry overseas and other Investment in career industries , targeting Education : choices women and ethnic Time / Expertise / £ ¾ improve the minorities efficiency of the industry which, in turn, will generate profits that can subsequently be re- invested in the cycle
Transport & The whole process needs to be Engineering underpinned by a campaign Media of publicity and ‘positive Centre Industry imaging’ Industry Influencing Coordinator career Or decisions , ‘Champion’ retaining resources for The process would be more longer effective if managed, driven and coordinated by an industry ‘champion’.
Implementation of efficiencies by the industry , as recommended by the OGC that drive the savings that will pay for the investment in Education & Training
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Appendix F
Solutions: Case Studies
The following case studies are illustrative of some of some of the actions that are currently working in the industry or in other sectors:
F.1 JCB Academy This is the first Academy to specialise in the new 14-19 Diploma. Teaching the Engineering Diploma will prepare young people for an eventual career in engineering.
F.2 London Engineering Project Education aimed specifically at equipping young people with the skills that will take them into Further Education / Higher Education that will lead to them becoming skilled engineers. The project specifically seeks to overcome the problem of under-represented groups, such as women and ethnic minorities
F.3 Turn your talent to teaching campaign An example of how positive imaging can directly affect the recruitment rate and aid retention of staff
F.4 Nuclear Decommissioning Authority An example of how the terms and conditions of supply contracts can directly influence innovation and lead to dramatic improvements in productivity
F.5 BAA Terminal 5 construction An example of how, by using the appropriate terms and conditions, where risks are properly allocated and the supply chain fully integrated ensuring that the project is delivered on time and to budget
F.6 ODA – London 2012 Employers investing directly into training the workforce to ensure that it is appropriately skilled to deliver the project to the right time and quality
F.7 British Gas Academy An example of a major employer investing directly in its workforce to ensure that sufficient resources exist for it to execute the work it needs to deliver
F.8 Network Rail Advanced Apprenticeship Scheme An example of a major employer investing directly in its workforce to ensure that sufficient resources exist for it to execute the work it needs to deliver
F.9 Education Business Partnership Employers partnering with education providers
F.10 STEMNET Science and Engineering Ambassador programme
F.11 Laing O’Rourke – Off-site production facilities Executing more work off-site leads to a less migratory workforce and more family-friendly working condition. It also leads to greater training opportunities. This type of approach may assist in attracting more women to the industry.
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Appendix CASE STUDIES
F.1 JCB Academy
Construction equipment company JCB is to sponsor an academy F which will specialise in teaching Diplomas in engineering, as well as
two other diplomas in manufacturing and business. It is set to
open in September 2010, and will teach pupils aged 14-19.
Interest in engineering could possibly Schools Secretary Ed Balls says this marks a "coming together" of be re-awakened in our younger academies and the Diploma qualification. generation through the new ‘green’ technologies (Sir James Dyson) Diplomas, introduced this year, are the government's flagship
scheme to raise the status of vocational education. As well as JCB the academy is being supported by Rolls Royce and Toyota. The Private Industry is involved with involvement of industry is seen as crucial to the strengthening of delivering the curriculum the diploma qualification.
Programmes will include Academies are independent state schools, often created to raise Engineering education standards in deprived areas, which have external Design sponsors - such as businesses, universities or charities. Enterprise
In this case, the sponsor will aim to develop useful skills for the The School will be a Centre for workplace, provide a balance between vocational and academic Excellence in engineering and design learning and help to widen participation in higher education.
Lessons Learned
Policy Themes: Increased investment, by industry, in education
Solutions: Engaging the industry in schools and academia Creating 14 – 19 (age) Engineering Diploma route
Benefits: Improved awareness of engineering as a career Improved image of engineering
Leading to: Increased numbers, through improved recruitment Increased skills, through better training
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Targeting skills, image and F.2 London Engineering Project under-represented groups both in gender and ethnic The London Engineering Project (LEP) is a creation of The minorities Royal Academy of Engineering (RAE) with significant funding
from Central Government.
As the title suggests, this is a London-based initiative, however The LEP is a London initiative that may be replicated in other parts of the this is just the first phase of a National Engineering Programme country (NEP) to be run in London and 6 other cities.
The objective of LEP is, quite simply, to attract more people to
an engineering career.
One of the areas of focus of the project is to engage women,
The LEP addresses gender and Caribbean, Bangladeshi and Pakistani students, all of whom are ethnicity imbalances currently under-represented in engineering.
The programme also seeks to target two other groups that are largely under-represented in engineering; adult learners and
students who come from families with very little history of higher education.
The approach is to create attractive, inspiring, relevant
Addressing gender and ethnicity issues engineering courses in local universities and then to populate is also a major solution to solving the these with students from nearby schools and FE colleges. skills gap
Forming a ‘pipeline’ that takes students from schools then on through Further Education and Higher Education, the LEP will Increasing the size of the resource pool produce more people with engineering skills.
Another significant part of the LEP is that Engineering Significant employer involvement is encouraged through the LEP’s employers play a major role, not just in helping to design the ‘Ambassador Scheme’ which focuses courses, but also acting as ambassadors helping to promote the on supporting and/or supplementing existing STEM teacher resources in advantages of a life in engineering to students in schools and schools colleges.
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A key measure of success for the LEP will be a significant increase in the number of students and the diversity of students engaging in STEM activities;
With an anticipated increased uptake of STEM subjects at GCSE and A-Level it is likely that the pipeline will feed into higher education and engineering subjects in particular. There is likely to be a widening participation of students in higher education in general.
The LEP also aims to work with universities and colleges to create new and attractive science, engineering and technology courses, which are both gender appropriate and culturally relevant to these target groups of students.
Engineering is seen as a key subject area that is directly linked to the economic health of the nation.
Lessons learned
Policy Themes: This programme is taking a long term view, by targeting younger students to create the start of the ‘pipeline’. It is structured and well coordinated through the RAE. The targeting of under-represented groups effectively increases the size of the resource pool, whilst creating an exciting and positive study environment raises the status of and awareness to engineering as a profession, thus removing barriers to entry.
Solutions: Engaging the industry engagement in schools and academia / Creating 14 – 19 (age) Engineering Diploma route Improved awareness of engineering as a career
Benefits: Improved image of engineering Increased participation by women and ethnic minorities
Leading to: Increased numbers, addressing (in particular) gender and ethnic imbalances Increased numbers due to greater career awareness and more positive image Increased skills, through better training
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An example of the way F.3 Turn Your Talent To Teaching increased status of a Campaign profession can directly affect recruitment and In Britain the TDA’ s (Training and Development Agency for retention Schools) recruitment campaign Turn your talent to teaching has comprised online, outdoor, press and TV advertising.
Over a 10-year period, the campaign This campaign has been running, in its various forms, for more in Britain to recruit more teachers became a recognised success story than a decade and is recognised as having successfully raised the status of the teaching profession, raised awareness of the
profession and, as a direct result, substantially increased the recruitment of teachers.
The TDA currently spends £12m per year on the campaign; the
primary focus being towards priority subject areas such as science and mathematics. The advertising campaign frequently
shows very positive images of STEM subject teachers. Other countries, such as Australia, are looking to replicate that success The campaign that has run in Britain has also received endorsements in other parts of the world. For example, there is a
proposal in West Australia for a National Status of Teaching Campaign based on the British model.
The declining status of a profession proves to be a barrier to recruitment It is recognised in Australia that the declining status of the teaching profession is a significant barrier to attracting people into the
workforce and keeping them there. A briefing paper from the West Australia Government states:
Increased status improves both recruitment and retention levels "A national campaign to raise the status of teaching as a profession is, therefore, as important for attracting new recruits in a highly competitive labour market as it is to raising the morale and esteem of the existing teaching workforce, ultimately influencing retention rates" The Australian campaign is looking to target students from GCSE level The paper says the campaign should target students in Years 10 to
12, people looking to change careers, men, other under- Under-represented groups will also be targetted represented groups in the community and people in occupations
with skills required in areas of need such as maths and science.
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The campaign will also deal with the quality of the teaching Recruiting high quality people leads to profession, as a number of reports have found that attracting high increased status, which in turn leads to recruitment of high quality people performers into teaching by making entry highly selective drives up
the status of the profession. Teacher education in Australia
languishes in the bottom third of university preferences.
In the United States two campaigns are currently running, both of
which focus upon raising the status of the teaching profession in In the US the same theme of ‘status order to attract and retain high quality people. raising’ applies The One in a Million – Teachers Who Make a Difference campaign is a
nationwide initiative to collect the names of one million teachers Creating a ‘Hall of Fame’ who have made a difference in someone's life. Anyone in America
could place a teacher’s name into the National Teachers Hall of
Fame’s (NTHF) archives.
The Behind Every Famous Person Is a Fabulous Teacher Campaign pairs
well-known individuals, such as Laura Bush, and others, with their Linking famous people with their teachers favourite teachers and is used in a magazine advertising campaign.
Lessons learned
Policy Themes: Campaigns are focussed upon enhancing the status of the profession and aims to ‘build- down’ barriers to recruitment. The American campaign uses famous / iconic people as a means of raising status. This was a tactic used in a previous version of the British campaign. Targetting younger students creates the start of a ‘pipeline’, and targetting under-represented groups taps into an under-used resource pool.
Solutions: The American campaign uses famous / iconic people as a means of raising status. Making entry highly selective.
Benefits: Raising status, raising awareness Creating the start of a pipeline Tapping into under used resource pools Attracting and retaining high quality people
Leading to: Increased numbers, addressing (in particular) gender and ethnic imbalances Increased numbers due to greater career awareness and more positive image Increased skills, through betting training and higher entry standards, which in turn make the profession more sought-after.
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An example of the use of F.4 Nuclear Decommissioning Authority contract conditions to change attitudes and The NDA is a non-departmental public body, established under
behaviours that were the Energy Act 2004. It is responsible for the decommissioning previously restricting efficient performance – and clean-up of the UK's civil public sector nuclear sites.
most notably in a safety- At the time of the Energy Act coming into force, the received critical industry wisdom from engineers within the industry was that nuclear
facilities could take up to 100 years to decommission.
From the perspective of both value for money and utilisation of
resources this was unacceptable and the newly formed NDA set
about solving the problem.
“We will encourage innovation, to improve contractor performance and deliver best value to taxpayers.”
“While we welcome any savings in time or cost (though not, of course, at the expense of safety, security or environmental performance), experience to date in Innovation is the key to savings in decommissioning suggests that innovation is key to delivering cost and time positive step-changes in both cost and time.”
“The most effective innovation generally involves either fundamental changes in thinking and approach leading to novel solutions, or the application of existing ideas and well tested technologies from other industries.”
“The framework we develop will address the drivers, environment and contractual arrangements most likely to Contracting arrangements are key to encourage innovation among our contractors and their encouraging an innovative approach subcontractors.” Sir Anthony Cleaver NDA Chairman
The NDA is now working towards a 15 – 20 year timescale to decommission each facility.
Lessons learned
Policy Themes: Efficiency: Contractual terms affect behaviours
Solutions: Review existing contracting arrangements
Benefits: Improved management practice More efficient working methods Improved contractor performance
Leading to: Savings in time and cost Programme delivered within a significantly shorter time
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Widely accepted as an F.5 BAA Terminal 5 exemplar project, this £4.2bn capital project ran BAA's decided to accept all the risk for the construction project, to time and budget with a heavy reliance upon collaborative working, through the use primarily as a result of innovative contractual of the NEC3 form of contract. arrangements and the
extensive use of collaborative working. This approach effectively released the burden of accountability
from contractors and suppliers, thus preventing an unproductive
culture of blame and confrontation from taking root.
Whilst using the NEC3 form of contract is not necessarily the
procurement route that suits all projects, what it does highlight is
Collaborative working and the fact that a radical and innovative approach to procurement can standardisation are features of the T5 directly affect relationships and behaviours in a positive way. contractual arrangement, based upon NEC3
Another feature of the T5 project is that the terms and conditions
of NEC3 were driven down through every layer of contractors.
Every contractor and sub-contractor was therefore effectively
working to the same core conditions. This resulted in consistency of approach and behaviour through every tier of contractor, leading to efficiencies.
Lessons learned
Policy Themes: Efficiencies: Contractual terms affect behaviours
Solutions: Review terms and conditions and seek consistency and standardisation
Benefits: Consistency and standardisation throughout the project Introduction of efficiencies through common working practices
Leading to: Collaborative work which prevents the development of an unproductive culture of blame and confrontation Project running to time and budget constraints
139 Project Name: Project Brunel: Industry Study 2008
A highly publicised F.6 ODA – London 2012 programme of works leading up to 2012, it will Amongst its many objectives the Olympic Delivery Authority aims require 21,000 workers at to: its peak. Overcoming skills shortages is a major ¾ Increase employment opportunities; with 10 – 15% of challenge the workforce being residents of the 5 host boroughs.
¾ Increase skill levels; locally and through the wider industry with 2000 trainee, apprenticeships and work placements during the course of the programme.
¾ Support legacy and regeneration; reduction of the local unemployment level (7% prior to commencement of the development) is seen as a KPI.
“If we do what we’ve always done, we will get what we always got.” Graham Hastings-Evans Olympic Delivery Authority
With over 21,000 people employed at the period of peak The challenges faced by the ODA are unique and they require a different construction (Olympic Park, Stratford City Development and approach to overcome them Crossrail) the ODA needed to find a way of preventing the
problem of skills shortages from becoming a hindrance to the delivery of the programme.
The ODA seeks to achieve its objective running a comprehensive Training programmes directly linked training and employment programme to develop required skill sets. to the needs of the project Linking these requirements into contractors and consultants contracts.
Lessons learned
Policy Themes: Early targeting of local under-utilised groups to swell the resource pool via training and skills development.
Solutions: Using local labour resources whilst reducing unemployment Developing targeted trainee, apprenticeship and placements for skills required for the project
Benefits: Increasing resource pool skills levels Increasing employment
Leading to: Raising local support for and involvement in the project from within the local boroughs Preventing skills shortages from becoming a hindrance to the delivery of the programme.
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The British Gas Academy F.7 British Gas Academy is an example of an industry solving its own In 2002, British Gas announced a plan to recruit an additional resource problems 5,000 new engineers by 2007/08. In order to achieve this target British Gas Engineering Academy was established in January 2003; bringing together existing internal training centres, the recruitment
section and the management of third-party training.
‘The Academy’ as it is today has expanded to include all volume
recruitment for British Gas Services (BGS) including call centre
and sales agents, also induction and skills training for call centre
and operational agents and team leaders.
The Academy delivers training at purpose-built training facilities
located across the country and at five area service centres. These
sites are all owned or leased and operated by BGS. Plans are at an
advanced stage to update some current facilities with replacement
sites in Leicester and Glasgow.
As well as training new recruits, the training centres are used for
mandatory competency training and five-yearly assessments, as well as supporting continuous professional development programmes e.g. advanced diagnostics.
The centres are staffed by over 100 highly experienced trainers, assessors and administrators and deliver 250,000 training days per annum. The Academy is accredited by the awarding bodies to assess NVQ qualifications and ACS. BGS recruits over 2,000 new employees per year.
Lessons learned
Policy Themes: Education and Training, work-based learning. Demand-led education agenda
Solutions: An example of an industry identifying a need for resources and driving the training and education programme to suit its own needs.
Benefits: Increasing the size of the resource pool Increasing the skill level of the resource pool
Leading to: A properly skilled and fully resourced industry that will be able to deliver its workload
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The Network Rail F.8 Network Rail Advanced Advanced Apprenticeship Apprenticeship Scheme scheme is an example of a major employer within the industry solving an Launched in 2005, Network Rail’s Advanced Apprenticeship
industry-wide problem scheme combines personal development and technical training and
is based at Royal Navy facilities at HMS Sultan in Gosport, Hampshire. An investment of £30 million makes the programme one of the biggest in the UK.
Each year, up to 240 apprentices enter the scheme, spending the first year of their course at HMS Sultan and undertaking technical training delivered by Flagship Training. Accommodation is
provided at nearby HMS Collingwood.
Network Rail staff teach years two and three of the course, delivering a range of rail-specific training before successful completion of the course provides apprentices jobs within the
company's maintenance function.
Iain Coucher, chief executive of Network Rail said: "We are changing the very nature of Network Rail, what it is and how it operates. Training and development are key parts of change, which is why Network Rail developed its apprenticeship scheme, the most talented of whom would go onto a Foundation Degree at Sheffield Hallam University, and leadership schemes for potential high flyers.
"This is a huge investment in our future. This apprenticeship scheme will deliver over 1,000 skilled technicians who will become the backbone of Network Rail for the next 25 years."
Lessons learned
Policy Themes: Education and Training, work-based learning. Demand-led education agenda
Solutions: An example of an industry identifying a need for resources and driving the training and education programme to suit its own needs.
Benefits: Increasing the size of the resource pool Increasing the skill level of the resource pool
Leading to: A properly skilled and fully resourced industry that will be able to deliver its workload
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EBP’s are a network of F.9 Education Business Partnership local partnerships between education and The National Education Business Partnership Network (NEBPN) business is the umbrella organisation and national voice for 126 Education
Industry is both Business Partnerships (EBP’s) working across the UK in 11 supporting and engaging regions. It is a membership organisation with a growing number of with education providers Associate and Business Members.
The goals of the NEBPN can be summarised as follows:
¾ preparing young people for the world of work in particular The goals of the NEBPN are very and adult life in general much aligned with the recommendations of the Leitch Report ¾ raising teacher awareness of the world of work and the work-related curriculum
¾ to contribute to the raising of standard achievement via work-related contents
¾ to support the business community in its need to create a
world class competitive workforce for the future ¾ to promote the benefit of lifelong learning
Lessons learned
Policy Themes: Education and Training: The industry driving the education agenda Demand-led education agenda
Solutions: Employers supporting education providers
Benefits: Increasing the size of the resource pool Increasing the skill level of the resource pool
Leading to: A higher number of people being properly skilled to join the industry from education
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STEMNET encouraging F.10 STEMNET more young people towards acquiring STEM Science & engineering ambassador (SEA) skills that will equip them programme for a career in the transportation industry STEMNET aims to ensure that more young people in the UK make a choice to enter science, technology, engineering and mathematics (STEM) related careers at all levels, and future generations are properly informed about the science and technology that surrounds them.
With the support of its partners, STEMNET achieves this in two
ways:
The goals of STEMNET are very ¾ By bringing science, technology, engineering and much aligned with the mathematics activities, experiences and excitement in to recommendations of the Leitch Report classrooms throughout the UK, enhancing and enriching
the national STEM curriculum.
¾ By linking those companies and other organisations that
employ STEM educated people, and schools, in such a way
that young people can get a clear idea of the diverse and
exciting range of careers available to them. STEMNET has received funding from the Department of Trade and Industry since 1996 and now continues to enjoy support from the DIUS (Department of Innovation, Universities and Skills) and DCSF (Department of Children, Schools and Families) since then. As a national organisation, it works hard to ensure that no region of the country is disadvantaged, by comparison with any other, with respect to STEM opportunities.
Anyone who has a desire to inspire children and young people in STEM subjects can become an SEA. The main qualities that all Ambassadors share are enthusiasm and commitment, along with a passion for what they do.
Ambassadors are of all ages and backgrounds and represent over 1000 different employers.
The programme has grown rapidly and STEMNET now works with over 18,000 Ambassadors.
Lessons learned
Policy Themes: Closer involvement between business and education
Solutions: Ambassador programme in STEM subjects in schools
Leading to: Higher achievement, above the standard, in the all important STEM subjects
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Laing O’Rourke are F.11 Laing O’Rourke building an off-site Off-Site Production Facilities manufacturing plant in
Nottinghamshire Laing O’Rourke is investing £100m in the construction of an off-
site production facility which is planned to start production at the
end of 2009.
Laing O’Rourke believes that more people in general would be
willing to get into construction if more of it was carried out under
factory roofs.
Not only would skilled workers be attracted by a more favourable
working environment, it would also lead to a less migratory
workforce.
“We will be able to recruit a larger and better skilled workforce.” Mike Robins MD European Construction Operations Laing O’Rourke
“We think the shift from site to production facilities will see more women in the industry.” Mike Robins MD European Construction Operations Laing O’Rourke
Laing O’Rourke are also planning plants to service both the north and the south of the UK as it seeks to achieve 70% of its production from pre-assembly.
Lessons learned
Policy Themes: Recruitment & Retention
Solutions: Employers creating better working conditions
Benefits: More ‘family-orientated’ employment conditions, that would appeal to a wider section of
the population
Leading to: The ability to recruit from a much wider resource pool
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Appendix G
Industry Liaison Group Members
The Industry Liaison Group (ILG) is a consultative body drawn from a range of stakeholders from within the industry, including; the professions, employers, academia / education & training, and client bodies.
Its purpose is to act as coordination and communication point between this study and the wider industry. It helps to facilitate the consultation process across the industry, as well as facilitate the collection of data.
See also Appendix B.3
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Organisation Contact Name
ACE Scott Parkhurst, Paru Patel CECA Colin Waugh Construction Industry Council David Cracknell Department for Transport Spencer Palmer ETB A Kumar GoSkills Barry Levene Highways Agency Nick Fenton ICE Gareth Jones / Andrew Crudington Institution of Highways and Transportation Sue Stevens London Development Agency Paz Paramjothy LSBU Rob Best Network Rail Stephen Barbour Railway Industries Association Peter Loosley Royal Academy of Engineering Matthew Harrison RSSB Lesley Hodsdon The Universities' Transport Partnership Employers' Martin Richards Forum Transport for London Tim Herbert
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Appendix H
Industry Forum Members
The Industry Forum is representative of all parts of the industry in all parts of the UK.
It is representative of the professions, clients, contractors, consultants and local authorities. The members consist of both technical staff and HR staff.
See also Appendix B.4.
151 Client Name: Dept. for Transport, Transport for London, London Development Agency
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152 Client Name: Dept. for Transport, Transport for London, London Development Agency
Organisation Contact Name ACE Paru Patel Arup Group Karen Phillips Atkins Consultants Limited Keith Nicholson Cambridgeshire County Council Mark Kemp Department for Transport Spencer Palmer Det Norske Veritas Ltd (DNV) Irine Kotzia Frankham Consultancy Group Ltd Chris Gibbs Franklin + Andrews Steve Jackson GoSkills Barry Levene Halcrow Group Ltd Kim Hannan Highways Agency Nick Fenton Home Office Border and Immigration Agency Nicholas Gray Home Office Border and Immigration Agency Simon Antcliff Hyder Consulting (UK) Ltd Brian Rechere ICE Simon Whalley Institute of Highway Incorporated Engineers Judith Walker Institute of Mechanical Engineers John Ling Institution of Highways and Transportation Sue Stevens Interfleet Technology Ltd Hugh Fraser Interfleet Technology Ltd Steve Hicks JMP Consultants Ltd Paul Smith Lockheed Martin UK Holdings Ltd Dick Robson London Development Agency Paz Paramjothy London South Bank University Rob Best Mott MacDonald Andy Nash Mott MacDonald Anna Seabourne Mott MacDonald Jeff Sarsby Mott MacDonald Neil Henderson Mott MacDonald Peter Crane Mott MacDonald Peter Norgate Mott MacDonald Tom Olasina Mouchel Tom Ingram Network Rail Richard Bailey Network Rail Stephen Barbour Network Rail Catherine Brightwell Nichols Group Bill McElroy ODA Mike Sinclair-Williams OGC Charlotte Madum Parsons Group International Ltd Peter Wharton RAE Matthew Harrison Rail Tech Group Railway & Signal Engineering Ltd Gary Brackley Rail Tech Group Railway & Signal Engineering Ltd Graham Benett Rail Training International Ltd Andrew Russell Railway Industry Association Peter Loosley RSSB Richard Barrow Telent Communications Ltd Margaret Reilly Telent Communications Ltd Mark MacLean TfL Lousie Woodcock The UTP Employers' Forum Martin Richards Transport for London Tim Herbert Westinghouse Rail Systems Colin Brown White Young Green Consulting Ltd Colin Gray
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Appendix I
Surveyed Organisations
See also:
Section 1 – Results and Findings Appendix B.5 – Methodology for Surveys Appendix J – Survey Questionnaire form Appendix K – Acknowledgements to the participants in the survey
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Education:
Organisation Contact Name Aberdeen University Angela Henderson Aston University Sandra Gibson Bangor University Prof. P S Spencer Bath Spa University Prof. Alan Day Bath College (City of) Leon Smith Bedford College Leslie Ferguson Bedfordshire University Ms Christine Ross Birmingham University Chris Baker Birmingham City University Geoff Coyne Bournemouth University Mark Hadfield Bradford College Margaret Appleyard Brighton University Catherine moon Bristol University Nicholas Lieven Bristol College Dawn Bellamy Brunel University Heinz Wolff Cambridge Forum for the Construction Industry Graham Aldous Cambridge Professional Development Ross Hammond Cambridge Society for Application of Research Graham Ashton Cambridge University Mary Willbey Cambridge-MIT Institute Kevin Saggers Cardiff University Colin Docker CASL Management Training Lance Saunders Castle College Nottingham Louise Storry Central Lancashire University Sarah Lowe Chester University Dennis Holman CITIES Institute - London Metropolitan University Claire Redwood City University London Linda Carr City College Norwich Jayne White Coleg Llandrillo Cymru Steve Doodson Coventry University Raymond Farmer De Montfort University Leicester Professor Marwan Al-Akaidi Department of Civil Engineering at the University of Birmingham Richard Burton Develop Tracy Mitchell Doncaster College Roger Eaton Dudley College of Technology Marcus Eassom Durham University Prof. Peter Tavner East Lancashire Institute of Higher Education Dr Steve Wright Exeter College Victoria Mussel Farnborough College of Technology Sam Brown Foxley Tagg Training Robert Clubbe Glasgow Caledonian University Professor Mike Mannion Gloucestershire College Roy Reader Greater Cambridge Partnership (PPP) Paul May Harper Adams University College Jim Loynes Havering College of Further & Higher Education Constance Parker Heriot-Watt University Julian Jones Highbury College Martin Porter Higher Education Academy Engineering Subject Centre Phil Barker Higher Education Funding Council for England Jonathan Copping Hopwood Hall College Martin Carr Imperial College John Polack, Peter Jones
157 Project Name: Project Brunel: Industry Study 2008
Organisation Contact Name Imperial College London Assistant to the Operating Officer King's College London James Werning Kingston University Peter Mason Lakes College West Cumbria John Irvin Lancaster University Martin Widdin Leeds Metropolitan Jane Kettle Leicester University Professor Sarah Spurgeon Liverpool University Professor Ieuan Owen Liverpool John Moores University Gordon Colquhoun London Metropolitan University Pancham Shukla London South Bank University Emmanuel Obasaju Loughborough College Geoff Smith Loughborough University Steve Rothberg LSC London Region David Hughes Mid-Chesire College: Hartford Campus Jean Guthrie Napier University Sandra Cairncross Newcastle College Hazel Bone Newcastle University Oliver Hinton North East Wales Institute of Higher Education Joe Tatler Northbrook College Sussex Marilyn White Northumbria University Steve Hodgson Nottingham Trent University Gordon Kennedy Open University Awarding Body David Short Oxford Brookes University John Raftery Pembrokeshire College Richard Bamber PTRC Education and Research Services Andy Costain Queen Mary, University of London John Stark Queen's University Belfast Tom Millar Ravensbourne College of design and Communication Eric Linsey Richmond University Peter Bolton Sandwell College Rod Horsburgh Sheffield Hallam University Tim Mulroy Shrewsbury college of art and design Peter Harrison Solihull College Haifa Ross Somerset College of Arts and Technology Denise Holdsworth South Cheshire college Pauline Hurrell South East Essex College Paul Oxley South Tyneside College Jim Moore Southampton Solent University John Rees Staffordshire University Mike Goodwin Stockport College Sean Finnegan Swansea Institute Richard Thomas Swansea University Nigel Weatherill Symmons Madge Bryan Madge Tameside College Laura Bowman The College of West Anglia Penelope Scott The Manchester Metropolitan University Liz Price The Robert Gordon University Brian Miller The University of Edinburgh Grahame Bulfield The University of Leeds Roger Pollard The University of Manchester John Perkins The University of Northampton Phil Picton The University of Nottingham Chris Rudd The University of Reading Margaret Deacon The University of Sheffield Niranjan
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Organisation Contact Name The University of York John Robinson Tyne Metropolitan College Pamela Emery University Campus Suffolk Dorothy Kennerley University College London Bernard Buxton University of Bradford Bev Yates University of Dundee Roderick Jones University of East Anglia Andrew Bangham University of East London Paul Smith University of Essex Sam Steel University of Exeter Ken Evans University of Glamorgan Richard Neale University of Glasgow Frank Coton University of Greenwich John Frankland University of Hertfordshire Andrew Starr University of Huddersfield Stephen Ward University of Hull Stephanie Haywood University of Kent Jonty Bloom University of Liverpool Charles Scudamore University of Oxford Richard Darton University of Plymouth Neil James University of Portsmouth Shirley Frost University of Salford Steve Donnelly University of Southampton John Armstrong University of Sterling Simon Jones University of Strathclyde Colin Grant University of Sunderland John MacIntyre University of Surrey Bob Griffiths University of Surrey Michael J Kearney University of Sussex Benedict du Boulay University of Teesside Simon Hodgson University of the West of Scotland Roger McLean University of Ulster Alastair Adair University of Wales, Newport Mike Waythe University of Warwick Tony Price University of Westminster Alan Jago University of Westminster Brian White University of Wolverhampton Hayley Everett Uxbridge College Catherine Mosdell Wales Institute Gaynor Kavanagh Warrington Collegiate Edward Long Warwickshire College James Allan West of England University Guy Roberts West Thames College Louisa Selling York College Glen Miller
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Institutions:
Organisation Contact Name Association of Project Managers Julie Legge Institute of Highway Incorporated Engineers Judith Walker Institute of Mechanical Engineers Annie Davison Institute of Railway Operators John Glover Institute of Railway Signalling Engineers Colin Porter Institution of Fire Engineers Gail Savage Institution of Structural Engineers Sarah Buck Permanent Way Institution Martin Cresswell Railway Civil Engineers Association (part of ICE) Lizzy Dijeh Royal Institution of Chartered Surveyors James Kavanagh The Institution of Civil Engineers Maciej Zwierzanski The Institution of Engineering and Technology Charlotte Crump Transport Planning Society (Part of ICE) Martin Richards
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Councils:
Organisation Contact Name Bath & NE Somerset Council Peter Brook Bedfordshire County Council Martin Freeman Birmingham City Council Alan Lloyd Blackburn with Darwen Borough Council Adrian Harper Blackpool Borough Council John Shaw Bolton Metropolitan Borough Council Jeff Layer Borough of Poole John Sayers Bournemouth Borough Council John Satchwell Bracknell Forest Borough Council Anthony Radford-Foley Bradford Metropolitan Borough Council David Greenwood Brighton and Hove City Council Peter Bloxham Bristol City Council John Laite Buckinghamshire County Council Keith Shaw Bury Metropolitan Borough Council Andrew Brett Calderdale Metropolitan Borough Council Martin Hibbins Cambridgeshire County Council Mark Kemp Cheshire County Council David Reeves City of York Council Bill Wooley Cornwall County Council Andy Newton Corporation of London Steve Barriff County of Herefordshire District Council Graham Dunhill Coventry City Council James Russell Cumbria County Council Chris Wallace Cumbria Highways Gary Clubbs Darlington Borough Council Harry Alderton Derby City Council Nigel Brien Derbyshire County Council Graham Eaton Derbyshire Dale District Council Paul Day Devon County Council Edward Chorlton Doncaster Metropolitan Borough Council Ron Gillicker Dorset County Council Andy Ackerman Dudley Metropolitan Borough Council Graham Isherwood Durham County Council Roger Culpin East Riding of Yorkshire Council Lester Burton East Sussex County Council Roger Williams Essex County Council Brian Goodwin Gateshead Metropolitan Borough Council Andy Price Gloucestershire County Council Paul Crick Halton Borough Council Colin Dutton Hampshire County Council Alan Mills Hartlepool Borough Council Mike Blair Herefordshire Council Stephen Oates Hertfordshire County Council Rob Smith Isle of Wight Council Peter Taylor Kent County Council Lloyd Holliday Kent Highway Services Lorna Day Kingston upon Hull Council Pele Bhamber Kirklees Metropolitan Borough Council Tom Ghee Knowsley Metropolitan Borough Council Mick Noone Lancashire County Council Brian Eagle Leeds City Council Andrew Molyneux Leicester City Council Ed Kocik Leicestershire County Council Nic Rowe
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Organisation Contact Name Lincolnshire County Council Richard Wills Liverpool City Council Sharon Walls Local Government Association Vince Christie London Borough of Barking & Dagenham Jennifer Dearing London Borough of Barnet Brian Reynolds London Borough of Bexley Peter Ellershaw London Borough of Brent Richard Saunders London Borough of Bromley Gordon Hayward London Borough of Camden Rachel Stopard London Borough of Croydon Phillip Goodwin London Borough of Ealing Keith Townsend London Borough of Enfield John Pryor London Borough of Greenwich Frances Dolan London Borough of Hammersmith and Fulham Louise Oliver London Borough of Haringey Niall Bolger London Borough of Harrow Andrew Trehern London Borough of Havering Mark Gaynor London Borough of Hillingdon Jean Palmer London Borough of Hounslow Suresh Kamath London Borough of Islington Kevin O'Leary London Borough of Lambeth Robert Overall London Borough of Lewisham Malcolm Smith London Borough of Merton Lyn Carpenter London Borough of Newham Sandra Fryer London Borough of Redbridge Len Norton London Borough of Richmond upon Thames Trevor Pugh London Borough of Southwark Paul Evans London Borough of Sutton Tom Jeffrey London Borough of Tower Hamlets Alex Cosgrave London Borough of Waltham Forest Martin Esom London Borough of Wandsworth William Myers London Borough of Westminster Martin Low Luton Borough Council Graham Turner Manchester City Council James O'Loughlin Medway Council Keith Hanshaw Middlesbrough Council Ian Busby Milton Keynes Council Lillian Drew Newcastle upon Tyne City Council Michael Murphy NI Department for Regional Development Geoff Allister Norfolk County Council Mike Jackson North East Lincolnshire Council Stuart Greaves North Lincolnshire Council John Burton North Somerset Council Karuna Tharmananthar North Tyneside Borough Council Kevin Ridpath North Yorkshire County Council Dave Bowe Northamptonshire County Council Keith Parrott Northumberland County Council Ruth Bendell Nottingham City Council Stewart Thompson Nottinghamshire County Council Malvin Trigg Oldham Borough Council Anthony Noblet Oxfordshire County Council Steve Smith Peterborough City Council Peter Tebb Plymouth City Council Simon Garner Portsmouth City Council Charles Stunell Reading Borough Council David Elworthy Redcar and Cleveland Borough Council Derek Gittins
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Organisation Contact Name Rochdale Metropolitan Borough Council Terry Leedham Rotherham Borough Council Andrew Rowley Royal Borough of Kensington & Chelsea Graeme Swinburne Royal Borough of Kingston upon Thames Roy Thompson Royal Borough of Windsor and Maidenhead Stephen Brown Rutland County Council Phil Trow Salford City Council Steven Lee Sandwell Metropolitan Borough Council Keith Samson Sefton Council Jerry McConkey Sheffield City Council John Lashmar Shropshire County Council Paul Smart Slough Borough Council Gillian Ralphs Solihull Borough Council Jim Harte Somerset County Council Richard Grove South Gloucestershire Council Derek Baillie South Tyneside Metropolitan Borough Council John Edwards Southampton City Council Pat Green Southend on Sea Borough Council Graham Dare St Helens Council Rory Lingham Staffordshire County Council Steve Garbett Stockport Metropolitan Borough Council Ron McGuren Stockton on Tees Borough Council Tom Andrew Stoke on Trent City Council Steve Davenport Suffolk County Council Peter Turner Sunderland City Council Tim Smith Surrey County Council Peter Guest Swindon Borough Council Jayne Telling Tameside Metropolitan Borough Council Phil Calverley Telford and Wrekin Council Roger Davies Thurrock Borough Council Geoff Russell Torbay Council Rob Ketch Trafford Metropolitan Borough Council Geoff Ball Transport Scotland David Anderson Wakefield City Council Andy Kerr Wales Robin Shaw Walsall Metropolitan Borough Council Fiona Taylor Warrington Borough Council Sharon Walls Warwickshire County Council Keith Davenport West Berkshire District Council Mark Edwards West Sussex County Council Peter Atkins Wigan Metropolitan Borough Council Neil Fearnley Wiltshire County Council Peter Binley Wirral Metropolitan Borough Jim Donaldson Wokingham District Council Graham Barnwell Wolverhampton Borough Council Bob Barratt Worcestershire County Council Jon Fraser
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Employers:
Organisation Contact Name Alan Dick UK Ltd David Potts Alstom Transport UK & Ireland Paul Robinson Amec Spie Rail Doug Simpkins Amey Infrastructure Services Ltd Chris Webster Angel Trains Ltd Haydn Abbott Arup Group Rebecca Simpson, Mark Gaby Atkins Consultants Limited Keith Nicholson, Paul Reah Atkins Rail David Tonkin Balfour Beatty plc Manfred Leger Bombardier Transportation UK Ltd Colin Walton Capita Symonds Ltd Tony Blake Capital Project Consultancy Ltd David Lindsay Carillion Transport Group Richard Howson Colas Rail Ltd Geoff Waite Colin Buchanan and Partners Ltd Mike Mogridge Collis Engineering Ltd Peter Roberts Corus Rail Joe Guerin DeltaRail Group Ltd Sheena Hendrie Det Norske Veritas Ltd (DNV) Gavin Astin E C Harris Brian Fitzpatrick,Stuart Webb Faber Maunsell Ltd John Brownfield First Engineering Ltd Janette Anderson Frankham Consultancy Group Ltd Ian Castle Gifford Consulting Gordon Clark GrantRail Ltd Gren Edwards Halcrow Group Ltd Richard Sanderson Hornagold & Hills Steve Parker Hyder Consulting (UK) Ltd John Spiers, Phil Iddison Interfleet Technology Ltd Peter Howarth Jacobs Babtie Jon Judah Jacobs Consultancy UK Ltd George Terzis Jacobs UK Ltd Tony King. Jarvis Rail Mike Houghton JCT Consultancy Yvonne Simmonite JMP Consultants Ltd Mark Power, David Gooden Knorr-Bremse Rail Systems (UK) Ltd Paul Johnson Knorr-Bremse Rail Systems UK Ltd Jocelyn Walters Lloyd's Register Rail Ltd Martin Hayhoe Lockheed Martin UK Holdings Ltd Paul Mapletoft London First Jo Valentine LPA Group Plc Peter Pollock Mace Dean Benson Mayer Brown Bob Castelijn Metronet Rail Andrew Lezala Mott MacDonald Philip Jeffrey John Biden, Martin Paddle, Keith Mouchel Parkman Services Ltd Youngman MVA Consultancy Mike Slinn, Mick Roberts Olympic Development Agency Sue Kershaw, Paul Neal,Hugh Sumner Owen Williams Peter Caillard, Clive Baker Pandrol (UK) Ltd Donald Webster Parsons Brinckerhoff Ltd Rachel Skinner, Chris Atkins Parsons Group International Ltd Clare Gibbs Pell Frischmann Consulting Engineers Ltd John McPhee
164 Project Name: Project Brunel: Industry Study 2008
Organisation Contact Name Peter Brett Associates Lene Heerstadt Rail Tech Group Railway & Signal Engineering Ltd Gary Brackley Rail Training International Ltd Andrew Russell Schofield Lothian - Accord Operations Ltd Kevin Corcoran Scott Wilson Kirkpatrick & Co Ltd David Smith, Jamshid Soheili Siemens Transportation Systems Christian Roth Signalling Solutions Ltd David Felton Steer Davies Gleave Ltd Simon Nielsen, Fred Beltandi Telent Communications Ltd Steve Harris The Nichols Group Bill McElroy TMS Consultancy Steve Proctor Touchstone Renard Phil Austin Tubelines Nicky Belben Turner & Townsend Project Management Neil Bullen Unipart Rail David Kierton URS Thorburn Colquhoun David Newton Westinghouse Rail Systems Alistair McPhee White Young Green Consulting Ltd Peter Kiernan WSP Civils Ltd. Gerry Raleigh
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Appendix J
Survey Questionnaire
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Section 1: Contact Information: Please provide the details of the primary respondent to this questionnaire.
Name: ______Title: ______Telephone Number: ______Email Address: ______
Section 2: Company Information: This section will provide a view of your company as a whole. Enter in your global annual sales and staff members from your most recent data.
What is your organisation’s ownership structure?
Independent UK Company
Subsidiary of UK Company
Subsidiary of non-UK Company
None of the above
What is the total annual sales turnover of your organisation (£ 000s)?
1 - 499 10,000
500 - 1,999 25,000 - 49,999
2,000 - 4,999 More than 50,000
5,000 - 9,999
How many staff (full-time equivalents) does your organisation currently employ globally?
1 - 99 100 - 499 500 - 999 1,000 – 4,999 4,999+
What proportion of your staff is agency staff?
0-5% 6-10% 11-20% 21-50% 55% - 100%
Section 3: Transport Sector Information: This section surveys data that is applicable only to the limits of the study, therefore only include details of staff members from your highway, rail, traffic and transport planning departments that live and work in the UK. Enter in each individual once.
How many staff (full-time equivalents) within your UK transport sector does your organisation currently employ?
1 - 99 100 - 499 500 - 999 1,000 – 4,999 4,999+
What proportion of the UK transport sector staff are engineering graduates (Bachelors or Masters)?
0-5% 6-10% 11-20% 21-50% 55% - 100%
What proportion of the UK transport sector staff underwent an apprenticeship1?
0-5% 6-10% 11-20% 21-50% 55% - 100%
What percentage of the UK transport sector staff is chartered?
0-5% 6-10% 11-20% 21-50% 55% - 100%
1 Apprenticeship – learning on the job; work experience
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Section 4: Employee Demographics: This section requires details from your employees that are currently living and working in the UK in your highway, rail, traffic and transport planning departments.
Using your most recent figures, please enter the number of current employees that fall within the given categories.
STAFF AGE: ETHNICITY: LOCATION: 15-20 London White British 21-24: South East White – Other 25-29 South West Indian 30-34 Midlands Pakistani 35-39 North Black Caribbean 40-44 Scotland Black African 45-49 Wales Other – Non White 50-54 N Ireland Not Disclosed 55-59 Other Total 60-64 Total 65-69 70-74 NATIONALITY: 75-79 GENDER: UK 80-84 Male Europe 85-89 Female North America 90+ Total Middle East Total Australia Asia Africa Total
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Section 5: Disciplines and Skills: In order to gain a comprehensive understanding of the present state of the transport industry within the UK, it is necessary to assess the workforce by skill and discipline level. By creating an inventory of your current staff numbers as well as listing out vacancies, we can identify and target specific areas that attribute to the skills profiles. Using your most recent figures, please enter the number of current employees that fall within the given skill level and discipline. If there are disciplines not listed in this survey that you believe describe a large portion of your workforce, please include them at the end under Other. Definitions of the Disciplines and Skills can be found in Appendix A and B respectively.
/ *Remember: one person, one vote. If neer one individual can be classified under i more than one discipline or skill, enter in ng E Total Filled Filled the higher skill/discipline. Filled or i Vacancies Vacancies Vacancies Vacancies Technician en Currently Filled Currently Filled Senior Engineer S Engineer/Planner Engineer/Planner Planner Currently Planner Currently /Planner Vacancies /Planner Vacancies Graduate Currently Currently Graduate Apprentice/ Trainee Apprentice/ Trainee Apprentice/ Graduate Vacancies Vacancies Graduate Technician Currently Technician Currently Project Management Quantity Surveying/Cost Management Contracts & Procurement Project Programming/Planning Management Management Project Management Geology, Geotechnics & Soil Mechanics
Drainage Hydraulics Engineering Civils Structures; Tunnels / Bridges / Foundations /
Surveying Retaining Structures etc. Engineering & Civil/Structural Alignment Engineering Land Surveying CAD (Computer Aided
Design ) GIS (Geographic Informational Systems) Advanced Simulations
Technical /Visualisation
Mechanical & Electrical Lighting Design SCADA (Supervisory Control & Data Acquisition) Surveillance & Security Systems Communications Systems Engineering & Integration M&E, Comms, Systems Intelligent Transport Systems Highway Development
Control Highway Design
Highway Maintenance Highway Highway Engineering Streetscape Design
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Traffic Network Management Traffic Prediction
Traffic Impact Analysis Traffic Regulation: parking & civil enforcement Traffic Surveying Traffic Signing & Signalling ITS Highway Safety Engineering; Traffic Engineering AIP, Traffic Calming, Speed Mgmt, Highway Safety Audit Sustainable Travel Design
Transport Strategy & Policy Travel Planning Land Use Planning Transport/Traffic Modelling Public Transport Planning Local Transport Planning
Transport Planning Transport Transport Economics Permanent Way EMC
Power
Rail Rail Signalling Design Railway Rolling Stock Engineering - Train & Traffic Control Station Engineering
Fares & Collections Architectural design, space planning & interior fit out
Railway HVAC - Heating, Ventilation Stations & Air Con / Building Services Engineering - Lifts/Escalators
Quality Assurance
Measurement & Control Audit Inspection Assurance Assurance Testing
Health & Safety Environmental Engineering Fire Engineering Health, Safety &
Environment CDM Coordination Asset Management
Other: ______Other: ______Other Other: ______Other: ______
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Section 6: Recruitment: Enter in the number of staff that were/are recruited per year. Kindly include staff joining the organisation as well as internal moves. If you do not have forecasted numbers, please provide an estimate.
2006
ection p Project Management Civil/Structural Eng &urv Technical M&E, Comms, Systems Highway Engineering Traffic Engineering Transport Planning Railway Engineering Audit & Assurance Ins Other Health, Safety & Environment Trainee/Grad Experienced Total
2007
ection p Project Management Civil/Structural Eng &urv Technical M&E, Comms, Systems Highway Engineering Traffic Engineering Transport Planning Railway Engineering Audit & Assurance Ins Other Health, Safety & Environment Trainee/Grad Experienced Total
2008
ection p Project Management Civil/Structural Eng &urv Technical M&E, Comms, Systems Highway Engineering Traffic Engineering Transport Planning Railway Engineering Audit & Assurance Ins Other Health, Safety & Environment Trainee/Grad Experienced Total
2009
ection p M&E, Comms, Systems Project Management Civil/Structural Eng &urv Technical Highway Engineering Traffic Engineering Transport Planning Railway Engineering Audit & Assurance Ins Other Health, Safety & Environment Trainee/Grad Experienced Total
2010
ection p Project Management Civil/Structural Eng &urv Technical M&E, Comms, Systems Highway Engineering Traffic Engineering Transport Planning Audit & Assurance Ins Other Railway Engineering Health, Safety & Environment Trainee/Grad Experienced Total
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Section 7: Total Spend/Annual Turnover: Please enter in your planned project spend per industry sector. If your figures are not broken into these categories, use the ratio from the previous years to create a trend forward.
g
in
Pounds (£) y
per Year ection p Project Management Civil/Structural Engineering & Surve Technical M&E, Comms, Systems Highway Engineering Traffic Engineering Transport Planning Railway Engineering Audit & Assurance Ins Other Health, Safety & Environment 2006 2007 2008 2009 2010
Section 8: Leaving: To gain an effective and lasting solution, it is equally important to discover how to recruit and retain individuals into the industry. This section allows for the assessment of employee retention. Please provide an approximation of the amount of employees left per discipline per year.
g
in
y
ection p M&E, Comms, Systems Project Management Civil/Structural Engineering & Surve Technical Highway Engineering Traffic Engineering Transport Planning Audit & Assurance Ins Other Railway Engineering Health, Safety & Environment 2005 2006 2007
What percentage of employees leave due to a change of career? 0-1% 2-5% 6-10% 10-15% 15-20%
What percentage of employees leave to work overseas? 0-1% 2-5% 6-10% 10-15% 15-20%
What percentage of employees leave for unknown causes? 0-1% 2-5% 6-10% 10-15% 15-20%
Section 9: Additional Questions: What discipline(s) possess the most vacancies currently? Do you forecast this to continue? If not, please specify the discipline(s) that you believe will fall short in the future.
How do you intend to fill present and future vacancies?
What can the industry do to ensure that the industry skills profiles are suitable for the demands in the industry? What can your organisation do to address this?
Section 10: Conclusion: To provide additional and supplemental information, the survey team would like to conduct telephone interviews with a number of responding authorities. Please indicate if you are willing to participate in a telephone interview.
Yes
No
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APPENDIX A: DISCIPLINE DEFINITIONS Methods to analyse and test various designs. Includes: 3D CFD analysis, wind Advanced engineering, aerodynamics, ventilation modelling, virtual reality visualisation $ Simulations/Visualisation STEPS – pedestrian modelling). Accurate positioning of all beam line components using surveying and geometrics Alignment Engineering engineering approaches. Architectural design, space External and internal design of rail structures, particularly those with a passenger planning & interior fit out function. Disciplines associated with asset management & Whole Life Business Impact of a Asset Management company’s physical assets. CAD Computer Aided Design. CDM Coordination Construction Design Management Regulations. Civils Structures; Tunnels / Design and construction of a structural system with the purpose of supporting and Bridges / Foundations / resisting various loads. Retaining Structures etc. Communications Design, implementation and management of communications Contracts & Procurement Acquisition of goods and/or services Design and construction to draw off water/liquid includes Flood Risk Analysis, Drainage Drainage Design, River Engineering & Sustainable Urban Systems Electromagnetic Compatibility, studies the unintentional generation, propagation EMC and reception of electromagnetic energy with reference to the unwanted effects that such energy may induce. Application of environmental principles to provide and maintain healthy water, air Environmental Engineering and land in both internal and external environments. Fares & Collections Design, development and operation of ticketing systems and equipment. Design, development and construction of fire safety and suppression systems and Fire Engineering equipment. Geology & Ground Incorporation & modification of the environment into a project. Engineering GIS Geographic Informational Systems, Accessibility Planning Health & Safety Implementing health and safety regulations. Highway Design: geometric Planning, design, construction, operation & maintenance of highways, bridges and and pavement design etc. related infrastructures to ensure effective movement of people and goods. Concerned with ensuring that new developments do not have a detrimental impact Highway Development Control on highway safety, traffic flow, traffic generation and the environment. Highway Maintenance Dedicated to the upkeep of every aspect of the highway network. Highway Safety Engineering; AIP, Traffic Calming, Speed Implementation of systems and regulations to reduce traffic and increase safety. Management, Highway Safety Audit HVAC - Heating, Ventilation & Design of Heating, Ventilation and air-conditioning. Especially important to Air Con / Building Services regulate humidity and temperature. Hydraulics Engineering Design and construction of the flow/transportation of water. Accurately determining the terrestrial space position of points and the distances Land Surveying between them. Land Use Planning Zoning and transport infrastructure planning. Lifts/Escalators Design, construction and operation of lifts/escalators systems and equipment. Measurement & Control Monitoring activities against a baseline to ensure quality and efficiency. Mechanical & Electrical Application of electricity, electronics, machines, mechanics. Permanent Way Design, configuration & construction of railway tracks & associated systems. Power Integration & management of high/low voltage power into transport systems.
Programming/Planning Development of a process to create a result according to a specific scope.
Organisation and management of resources in such a way that the project is Project Management completed within defined scope, quality, time and cost constraints Public Transport Planning Predict future transport demands & plan transport systems to accommodate it. Activity of providing evidence needed to establish confidence among stakeholders, Quality Assurance i.e. ensure that quality related activities are being performed effectively.
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Quantity Surveying/Cost Management & control of costs within construction projects & may involve use of a Management range of management procedures & technical tools to achieve this goal. Design, development and operation of mechanical or electrical devices used for Railway Signalling Design controlling trains on a line or network. Rolling Stock Design, Construction and operation of vehicles that move on the railway. SCADA Supervisory Control and Data Acquisition. Station Engineering Design, construction & operation of railway stations & associated equipment. Street design specialists concerned with improving the public realm and place Streetscape Design making initiatives for example town centre regeneration and urban environmental improvement schemes. Surveillance & Security Design of systems to protect transport systems, staff and passengers. Systems Designing for more sustainable travel including: Cycling, Walking, Public Transport Sustainable Travel Design & Accessibility and smarter design. Systems Engineering & A structured and auditable approach to identifying requirements, managing Integration interfaces and controlling risks throughout the project lifecycle. Testing Sampling new and modified goods/services to ensure quality. ITS Intelligent Transport Systems. Assesses the effects that a particular development’s traffic will have on the Traffic Impact Analysis transportation network. Traffic Network Management Analysing current network data and forecasting for the future. Traffic estimation and prediction system (TrEPS) improve traffic conditions and Traffic Prediction reduce travel delays by facilitating better utilization of available capacity. Traffic Regulation: parking & Control of the movements of vehicles and pedestrians. civil enforcement Traffic Signing & Signalling Design and construction of signage. Traffic Surveying Counting and assessing vehicle and pedestrian movements. Train & Traffic Control Design, development and operation of train control systems and equipment. Transport Economics Allocation of resources within the transport sector. Creating effective approach and solutions to address issues effecting transport Transport Strategy & Policy such as safety, traffic congestion, etc. Analyzing various scenarios in order to design and construct efficient transport Transport/Traffic Modelling plans. Travel Planning Predict future transport demands and provide networks to accommodate it.
APPENDIX B: SKILLS DEFINITIONS
An individual undertaking (or recently undertaken) a recognised Apprentice/ Trainee apprenticeship or training programme designed to teach them a trade or profession. Should have a relevant degree with 1-5 years relevant work Graduate experience. An individual who has an appropriate technical qualification, relevant Technician technical skills and at least 2 years experience. An individual with relevant technical skills for the job and at least 5-10 Engineer/Planner years experience. An individual with relevant technical skills for the job and at least 15 Senior Engineer/ Senior Planner years experience.
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Appendix K
Acknowledgements & Partner Organisations
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Acknowledgements
Apart from my colleagues who worked on this report, Kimberly Mescal, James Fiske and Dennis De Cala, I would like to thank our partners in this project, Tim Herbert (TfL), Spencer Palmer (DfT), Paz Paramjothy (LDA), Sue Stevens (IHT) and Peter Loosely (RIA). The depth of their support is matched in equal measure by the height of their enthusiasm together with the breadth of their knowledge.
The members of the Industry Liaison Group were equally instrumental in bringing about the production of this report. Too numerous to mention here (but listed in Appendix G), I am grateful for their invaluable contribution and unstinting support.
Whilst this report, to a certain degree, concludes that the Transportation Industry lacks coordination and cohesion, it was extremely gratifying to note that the participants in the survey and the Industry Forum made a huge collective effort to retrieve the necessary data, collate responses, attend workshops and impart their considerable knowledge solely for the greater good of the industry and not their own. The want and willingness of the wider industry to collaborate to achieve a valuable prize is admirable. They too are listed in Appendices H (Industry Forum) and I (Surveyed Organisations).
This has been a major undertaking, brought about by the vision of the Partners and collective effort of the participants. It bodes well for future versions of this report, as the collaborative effort which brought about this first report will undoubtedly be repeated with equally powerful results for the industry.
Steven Jackson Projects Director Franklin & Andrews December 2008
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Client & Partner Organisations
The joint client group that commissioned this Industry Study
comprises the following organisations:
Client Organisations Transport for London (TfL). www.tfl.gov.uk Department for Transport (DfT). www.dft.gov.uk
London Development Agency (LDA). www.lda.gov.uk
The following organisations were partners in the execution of the study:
Institution of Highways and Transportation (IHT). The IHT Partnering Organisations from the industry has in excess of 11,000 members working across a wide range of disciplines. It aims to promote the exchange of knowledge,
improve policy formulation, and stimulate debate on transportation issues. www.iht.org
Railway Industry Association (RIA). RIA is the Trade
Association for UK-based suppliers of equipment and services to the rail industry world-wide. It has around 140 member companies,
active across the whole range of railway supply. www.riagb.org.uk
Consultant Consultant Franklin & Andrews Franklin + Andrews (F+A). F+A is one of the UK’s leading construction economists. F&A is a world leader in economic
research, construction cost modelling and business advisory services. www.franklinandrews.com
Steven Jackson FRICS – Project Director Kimberly Mescal – Stakeholder Manager, data collection
James Fiske MACE, MQSI – Economic research, data analysis Dennis De Cala MBA, MMRS – Market Research, data analysis
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REFERENCES & FOOTNOTES
1 Prosperity for all in the global economy – world class skills. Lord Leitch 2006, HM Treasury
2 The Eddington Transport Study – A case for action; Sir Rod Eddington’s advice to Government 2006
3 Engineering UK 2006: Engineering and Technology Board
4 Educating Engineers for the 21st Century: An Industry View; 2006
5 Institute of Civil Engineers: State of the Nation Report, Capacity and Skills 2008.
6 Consultancy and Engineering Skills shortages UK Construction Sector: ACE January 2008 and Skills shortages and recruitment agency behaviour October 2007
7 The Eddington Transport Study: The Case for Action – Sir Rod Eddington – December 2006
8 Professional Skills Shortages in Transport Planning and Traffic; A UTP Employers’ Forum Survey, May 2007
9 BERR Energy White Paper May 2007
10 Engineering UK 2006: Engineering and Technology Board
11 Engineering UK 2006: Engineering and Technology Board
12 Source: Mott MacDonald Transportation Unit forecast 2008
13 OECD (Organisation for Economic Cooperation and Development) twice yearly Economic Outlook report: June 2008.
14 See, for example, Consultancy and Engineering Skills shortages UK Construction Sector: ACE January 2008
16 TPSI; Transport Planning Skills Initiative; An initiative by the Transport Planning Society www.tps.org.uk
17 The Latham Report: Constructing the Team 1994
18 The Egan Report: Rethinking Construction 1998
19 The Strategic Forum for Construction, chaired by Sir John Egan: Accelerating Change 2001
20 NEC3 – The New Engineering Contract, 3rd Edition, published by Thomas Telford
21 A 5% saving in the workforce represents approximately 5000 people. At a median salary of £32,000 (Source; Payscale.com) plus overheads of 60% (N.I. Contributions, office overheads etc.), the total cost equates to £50,000 per annum, making an industry cost of £250m.
22 The IH is: Demand for resources will rise whilst supply will remain constant or decline, leading to a continuation or increase in the ‘skills gap’.
23 Creating an IH is part of a standard problem solving technique, favoured by such organisations as McKinsey – see ‘The McKinsey Way’; Ethan M. Rasiel, pub. McGraw-Hill.
24 A full list of ILG members is given at Appendix B
25 HR means Human Resources
26 A full copy of the survey documentation can be found at Appendix G
27 Project BRUNEL (June 2007) Developing TfL’s Future Technical, Engineering and Planning Resource
28 HESA (1997 - 2007) Students in Higher Education Institutions, Cheltenham, HESA.
29 HESA (2004, 2005, 2006, 2007) Destinations of Leavers from Higher Education, Cheltenham, HESA
NB Data are collected from UK and other EU domiciled graduates who completed their study through 'full-time' study only. No part-time graduate is included.
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1) 30 Architects Fees, A Survey of the Fees Charged by Private Architectural Practices, 2008 edition; The Fees Bureau; a division of Mirza & Nacey Research Ltd 2) Engineers Fees, A Survey of the Fees Charged by Consulting Civil & Structural Engineers, 2008 edition; The Fees Bureau; a division of Mirza & Nacey Research Ltd 3) Quantity Surveyors Fees, A Survey of the Fees Charged by Professional Quantity Surveying Practices, 2008 edition; The Fees Bureau; a division of Mirza & Nacey Research Ltd 4) M&E Services Engineers Fees, A Survey of the Fees Charged by Consulting M&E Services Engineers, 2008 edition The Fees Bureau; a division of Mirza & Nacey Research Ltd
31 STEM; Science, Technology, Engineering, Maths.
32 Sir Tom McKillop is Chairman of the Royal Bank of Scotland, President of the Science Council and trustee for the Council for Industry and Higher Education.
33 Graduate Employability – The Views of Employers: Will Archer & Jess Davison CIHE [2008]
34 Prosperity for all in the global economy – world class skills: Lord Leitch for HM Treasury, Dec 2006.
35 Workforce Development: how much engagement do employers have with higher education? Madeleine King (CIHE) 2007. 36 Sir Christopher Frayling is a British educationalist and writer. He is the Chairman of Arts Council England, Chairman of the Design Council, Chairman of the Royal Mint Advisory Committee, and a Trustee of the Victoria and Albert Museum. He was a governor of the British Film Institute in the 1980s. He was awarded a knighthood in 2001 for "Services to Art and Design Education".
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