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Advanced Engineering and Aerospace West of England Local Sector Skills Statement 2018

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Advanced Engineering and Aerospace West of England Local Sector Skills Statement 2018 Connecting for success Advanced Engineering and Aerospace West of England Local Sector Skills Statement 2018 Working together to develop the current and future skills of the sector. Local Sector Skills Statements provide up-to-date market intelligence from industry sectors; celebrating the notable achievements and expertise of businesses and education in the region compared to regional and national policy and research. They provide insights into: the skills challenges faced by businesses in 2017, possible solutions, and potential partnerships for stakeholders to collaborate in the region. The reports inform key priorities for: investment in training, education, careers advice and professional development in the West of England. Produced and written by Business West Business West is working in partnership with the West of England Combined Authority, West of England LEP and the region’s universities and colleges through the Western Training Provider Network. The intelligence gathered feeds into the West of England skills strategy. Advanced Engineering and Aerospace Local Sector Skills Statement 2018 Advanced Engineering and Aerospace is a dominant industry in the UK, the engineering sector alone employing 19% of the UK total workforce. (1) Engineering also has a crucial role in the UK’s economy due to its strong multiplier effect. For every £1 GVA created by the engineering sector, £1.45 GVA is generated. (1) In 2015 the engineering sector generated 25% of the UK’s total GDP equating to £420.5bn. In the West of England, the Advanced Engineering The strong clustering of leading international and Aerospace sector supported around 29,500 jobs companies is supported by superb facilities in 2017,(4) and is home to the UK’s largest aerospace including the National Composites Centre, Bristol cluster with key businesses such as Airbus, Rolls Robotics Lab and the Centre for Additive Layer Royce, GKN, Renishaw, Rotork and BAE systems. Manufacturing. The region has seen large scale The South West region is a location for top investment; £70m investment in the Aerospace Park, international businesses, with 15 prime companies £100m invested in facilities to test aircraft systems in located here along with over 800 supply chains. Filton and the new Airbus Wing Integration Centre The sector has seen consistent growth in recent (AWIC) enabling Airbus and its partners to develop years, and supports a growing number of high-skill, innovative ideas and help underpin the UK as a high-value jobs. In the West of England there was a world leading aerospace sector. The centre will help 0.2% rise in the number of jobs between 2017-2018, to secure around 1,000 additional jobs and given only slightly lower than the national figure of 0.4%. (4) the strong impact the engineering sector has on the supply chain this figure could reach 1,500.(3) % of Total Jobs in Industry Group (2017) Engineering Professionals 19.2% Metal Machining, Fitting and Instrument Making Trades 6.0% Production Managers and Directors 5.7% Science, Engineering and Production Technicians 4.7% Electrical and Electronic Trades 4.6% Sales, Marketing and Related Associate Professionals 4.4% Vehicle Trades 4.0% Information Technology and Telecommunications Professionals 3.9% Architects, Town Planners and Surveyors 3.7% Functional Managers and Directors 3.5 % Other (inc. Assemblers/Routine Operatives - Business & Research - 12.0% 40.4% Administrative Occupations - Public Services - Plant & Machinery...) 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% Source: (4) Emsi - economic modelling 2018 Please Note - The data illustrated in this section is based on 3 digit SOC codes pulled from the latest Emsi 2018 data. The SOC codes used are West of England LEP definition of the Advanced Engineering sector. For further information on this data please contact [email protected] Further investment was made in training in the region overall average salary of £28,195(4). However if the UK is through the £4m extension to the City of Bristol to remain competitive and productivity improved, this College Advanced Engineering Centre, bringing situation cannot be sustained. the college’s existing engineering, aeronautical and manufacturing courses under one roof. In addition, The impact of trade agreements both within the EU SWIFT, a £14m bid for one of the first Institutes of and internationally will have a large impact on the Technology to boost technical skills for 16 to 18 sector. Given the ‘just-in-time’ supply chains, border year olds, is a consortia led by Weston College, delays of just a few hours could materially undermine made up of the region’s colleges and universities as UK competitiveness. The impact the decision to leave well as a network of key local employers including the EU will have on migrant workers and international GKN Aerospace, Airbus, GE Aviation and Renishaw. students is also high. The UK’s advanced engineering These Institutes will specialise in the delivery of the and aerospace sector attracts a high number of higher-level technical skills that employers need international students who provide a large portion of and the SWIFT proposal will see a virtual learning the high skilled workforce required. UK universities environment extended with AR and VR technologies will need to work hard to remain attractive to these to support students across the region. international students. Despite the strength of the Advanced Engineering Diversity within the sector remains a challenge. In the and Aerospace sector in the UK and in the West of West of England just 25% of the workforce are female England there has been a recent stream of unsettling (4) slightly better than the national picture where just developments including the £8bn takeover of GKN 20.5% are female.(1) In education, the representation by Melrose, Airbus threatening to leave the UK unless of female students on sector related courses remains favourable trade agreements are settled regarding a concern, with female students comprising just 16% the UK’s decision to leave the EU, and thousands of of first degree in engineering and technology entrants national job losses announced at Rolls Royce. compared to 56.1% of entrants overall (1). However, although the industry does face challenges, the recent 2017 Business Skills and Training Survey 2017 conducted by Business West revealed that “The importance of the sector 47.9% of respondents within the sector anticipate the headcount of their business increasing in the next 12 for the economy and jobs is months and 45.1% anticipate it remaining the same. clearly shown in this statement, Due to the rapid advances in technology, the increase highlighting the challenges in in knowledge intensive services and the fact that lower recruiting and developing future skilled roles within the industry are less at threat of automation than those mid / semi-skilled roles, there is engineers. Clear objectives a growing trend towards an hourglass economy. This identified include addressing increased demand for high skilled workers together with increasing competition from other sectors is young people’s lack of knowledge, resulting in a situation whereby demand is outstripping improving the gender disparity and supply. Projections from Working Futures 2014-2024 increasing teacher’s understanding indicate that by 2024, 54.1% of the workforce will require Level 4+ qualifications compared to 41.1% and awareness .” in 2014(8). It is anticipated that nationally there will Fiona Doughton, be an annual shortfall of up to 59,000 engineering graduates and technicians to fill engineering roles(1). Employer Support Manager - South West. The average salary for someone working in the Engineering UK advanced engineering and aerospace sector in the West of England is £37,802 compared to the UK’s Key Facts A summary of key facts both locally and nationally in this sector Nationally, 203,000 people with In the UK, the anticipated annual Advanced engineering and Level 3+ engineering skills will shortfall of up to 59,000 engineering aerospace supports 29,500 jobs be needed every year to meet graduates and technicians to fill in the West of England. (4) demand through to 2024. (1) core engineering roles. (1) In the West of England, the 51.2% of businesses responding In the West of England, 86.4% of average wage in the advanced to the Business West Skills and those hard to fill vacancies were engineering and aerospace Training Survey 2017 found roles due to a low sector is £37,802. (4) advertised in the last 12 months number of hard to fill. (5) applicants with the required skills or qualifications’. (5) x 93% of sector respondents to the Business West Skills & Training Survey 2017 anticipate the 93% headcount of their business will increase or remain the same over the next 12 months. (5) 52.1% of advanced engineering 54.9% of advanced engineering 53.5% of businesses in the and aerospace businesses and aerospace businesses in the region have a staff training responding to the Business region reported no & development plan. West Skills and knowledge of how to With 73.2% of Training Survey 2017 use apprenticeships businesses offering have no knowledge to upskill existing training to employees of the new members of in the last 12 apprenticeship staff. (5) months. (5) standards. (5) x Only 25% of the advanced 83 apprenticeship standards in In the Business West Skills and engineering and aerospace the engineering footprint were Training Survey 2017 the top three workforce in the West ready for delivery from summer skills required by employers were; of England are 2017. (1) • Problem Solving made up of • Team Working female workers. (4) 25% • Numeracy & Digital Nationally, engineering apprenticeships appear to have grown in popularity with the UP ( 1) number of engineering-related apprenticeship starts in 2015/16 increasing by 7.4 %.
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