Engineering Memoranda of Evidence

Memo Submission from: Page no no Department for Innovation, Universities and Skills (DIUS) with input from the Department for 1 Children, Schools and Families (DCSF) and the Department for Business, Enterprise and 3 Regulatory Reform (BERR) 2 UK Computing Research Committee (UKCRC) 37 3 Environment Agency 44 4 Dr David Birdsall 46 5 Clive Bone 48 6 Prof Michael Kelly 51 7 Greenpower (Barry Shears) 54 8 Smallpiece Trust (Andrew Cave) 57 9 Young Engineers (Stuart Ellins, Chief Executive) 59 10 Royal Aeronautical Society 63 11 United Kingdom Association of Professional Engineers (UKAPE) 69 12 National Grid 75 13 Faculty of Engineering, Imperial College London 79 14 Materials UK 88 15 Network Rail 103 16 EDF Energy Networks 107 17 BAE Systems plc 116 18 The Engineering Development Trust 126 19 Engineering Professors’ Council 129 20 New Engineering Foundation (Prof Sa’ad Medhat) 135 21 The Engineering and Technology Board 144 22 UK Naval Engineering, Science and Technology Forum (UKNEST) 152 23 Wellcome Trust 156 24 Prospect 159 25 The Professional Engineering Community 173 26 Institution of Civil Engineers (ICE) 181 27 Engineering and Machinery Alliance (EAMA) 191 28 UK Engineering Alliance (UKEA) 196 29 Professor Steve Rothberg, Loughborough University 202 30 Women’s Engineering Society (WES) 207 31 VP Engineering, Messier-Dowty Limited 211 32 Michael Dickson CBE 216 33 Institution of Nuclear Engineers and the British Nuclear Energy Society (INucE and BNES) 218 34 EEF 225 35 Universities UK 234 36 The Universities Transport Partnership 240

37 Edexcel 244 38 The Sector Skills Council for Science, Engineering and Manufacturing Technologies (Semta) 249 39 UK Resource Centre for Women in Science, Engineering and Technology 257 40 ConstructionSkills 266 41 The Royal Academy of Engineering (RAE) 271 42 Institution of Chemical Engineers (IChemE) 280 43 Institute of Physics (IoP) 283 44 John Napier 287 45 British Computer Society 291 46 The Science, Technology, Engineering and Maths Network (STEMNET) 292 47 Research Councils UK 295 48 The Learning Grid 319 49 Engineering Council UK 330 50 Chartered Management Institute 336 51 The Institution of Engineering and Technology (IET) 344 52 The WISE Campaign 351 53 CEESI Training (co-ordinated by the University of Bolton) 357 54 Professor John Monk, Department of Communications and Systems, Open University 361 55 Design and Technology Association 369 56 Hereford & Worcester Chamber of Commerce 372 57 Campaign for Science and Engineering in the UK (CaSE) 378 58 Thales 382 59 Rolls-Royce 385 60 Association of Colleges (AoC) 390 61 Heating and Ventilating Contractors’ Association (HVCA) 398 62 The Royal Society 402 63 Association for Consultancy and Engineering (ACE) 404 64 Society of Motor Manufacturers and Traders Limited (SMMT) 411 65 Society of British Aerospace Companies 416 66 Ford Motor Company Limited 426 67 North East Process Industry Cluster (NEPIC) 432 68 Warwick S Faville 440

Memorandum 1

Submission from the Department for Innovation, Universities and Skills (DIUS) with input from the Department for Children, Schools and Families (DCSF) and the Department for Business, Enterprise and Regulatory Reform (BERR)

1. Introduction

1.1 The Government welcomes the Select Committee’s interest in engineering. We agree with the comment of the international review of UK engineering research, The Wealth of a Nation1, which stated that engineering creates goods, services and infrastructure that benefit humankind. The health of engineering is therefore of national importance. The UK can only succeed in a rapidly changing world if we can develop the skills of our people to the fullest possible extent, carry out world class research and apply knowledge to create an innovative and competitive economy. We want to secure a future for our nation in which we are able to compete effectively in the global market, because our skills compete with the best in the world. We see engineers and engineering as a very important aspect of this work

1.2 This memorandum has inputs from three Government Departments.

• The Department for Innovation, Universities and Skills (DIUS) has led because all areas of its work - on skills, further and higher education, innovation, science and technology, science and society, intellectual property, and supporting evidence-based policy making in this area across government – have an effect on engineering. Engineering requires a skilled workforce. It needs, and contributes to our world class research base and can be a driver and user of innovation. • The Department for Children, Schools and Families (DCSF)’s interest comes in its responsibility for children and schools; it is in schools that children can get an initial interest in the work that engineers do; secure the basic knowledge and qualifications they need to study engineering; and get the advice and guidance that might encourage them down this path. • The Department for Business, Enterprise and Regulatory Reform (BERR) is responsible for government policy for business and enterprise including business innovation and manufacturing, and therefore has an interest in the health of engineering as an important contributor to the UK’s economic base.

1 The Wealth of a Nation – An Evaluation of Engineering Research in the UK, EPSRC, 2004. http://www.epsrc.ac.uk/ResearchFunding/Programmes/Engineering/ReviewsAndConsultations/IntReview/I nternationalReviewReport.htm

1.3 In the body of this memorandum, we seek to answer the questions the committee has posed. But overall, the following points are worth drawing out:

• The UK undoubtedly needs a strong supply of engineering skills. We note the evidence of demand from employers for people with good engineering skills, at all levels, and the indications that the graduate premium for engineering degrees is one of the highest. • There is a shortage of engineers now and in addition to needing more to respond to innovation and development, we will need to replace engineers as they retire or move away from the sector. • A key requirement is children leaving education with the right skills, able to compete for these jobs. The Government is committed to achieving further improvements in the numbers of children achieving well in the key Science, Technology, Engineering and Maths (STEM) subjects at school and college. We believe that this will feed into continuing increases in applications to study STEM subjects at university, and in due course to move into research. • We are also determined to offer qualifications, at all levels, that strike the right balance between the academic and the applied elements of learning. This is especially important for a subject such as engineering. The new Engineering Diploma to run alongside A-levels from September 2008; the growth in Foundation degrees; our reforms of apprenticeships; and our commitment to support more qualifications demanded by employers, are all examples of the application of this policy. • The UK economy is dynamic, and its industrial base is constantly changing in response to changes in the world and the competitive environment. Globalisation and the rapid development of emerging economies like China and India highlight the growing need for UK manufacturers to compete on the basis of high value added products and services and high skills. New markets bring new opportunities and UK manufacturing is changing in response to this challenge, with growth concentrated in knowledge based sectors such as bioscience, environmental industries, electronics and software engineering. China and India will not be content with commodity production for long, they are rapidly upskilling, with an estimated 4 million graduates a year, many in science and engineering, demonstrating an increasing need for the UK to further develop its own engineering skills. • Engineering remains a very significant part (one third) of overall UK research and development, and we have funded a range of policies to support innovation, collaboration between business and academia, and the development of core research. • There remains a task to convey the importance and fascination of engineering to people of all ages, and thereby build an interest in engineering and respect for those who practise it. Government, business, educational bodies and the many different engineering institutions and

societies all have a role to play. A recent Royal Academy of Engineering (RAE) / Engineering and Technology Board study showed that young people have a limited understanding of engineering, and that must concern all of us who care about our national future and prosperity.

1.4 UK Trade and Investment (UKTI) has provided input and this is included as an Annex (Annex H) as there are clear linkages between both papers. The Technology Strategy Board and Research Councils UK will be responding separately to the Select Committee. The Royal Academy of Engineering and other engineering institutions are also expected to submit memoranda.

2. The Role of Engineering and Engineers in UK society

2.1 Engineers and their decisions have a significant effect and long lasting impact on all UK society. The profession itself rightly emphasises the key role engineers have to play in ensuring that the right decisions are made, and resources brought to bear, in meeting both corporate and societal aims. In its broadest sense, engineering is about more than excellence in technical skills and scientific understanding – it is about working with others, often in a lead role, in putting knowledge to work for society.

2.2 Engineers play an integral role in the UK’s economic wellbeing and have set the ‘gold standard’ in areas such as aerospace, pharmaceutical, high performance cars and nano materials. They are at the forefront of work looking at ways to protect and to improve the environment we live and work in. They are essential to the development of large scale infrastructure projects such as the Channel Tunnel rail link, the redevelopment of St Pancras Station and the 2012 London Olympics. Engineers are also leaders of companies - of those companies listed in the FTSE 100 index at 31st July 2007, findings indicate that from a representative sample 3 out of 10 Directors with a first degree had studied engineering.2

2.3 The UK is a major leader in the provision of engineers and other highly skilled personnel and the UK economy has reaped the benefits from their work as can be shown from its position in the global economy. But other nations have not been standing still. To be a successful economy in the 21st century we must ensure everyone’s skills and talents are developed throughout their lives so that we have a world beating workforce. This will require highly skilled personnel who are innovative and creative and a strong supply of highly skilled engineers will be an essential outcome of this process. Without them the UK will almost certainly suffer. This move to a higher skilled workforce is supported by the Leitch Review3 which highlighted the skills challenges the UK faces through to 2020.

2 From research commissioned by Engineering Council and the Royal Academy of Engineering. IER, 2007: Engineers in Top Management. 3 Leitch Report: Prosperity for All in the Global Economy – World Class Skills. HM Treasury, December 2006.

2.4 Public Attitudes to Science 20084, the results of which were published on 11 March 2008, was commissioned by Research Councils UK DIUS. It sets out current public attitudes to science, and offers some insights into public views on engineering. In particular, the survey provides an interesting insight into the views of young people in relation to engineering and career choices. Overall, the population has a very positive view of science and engineering, with both viewed as beneficial to society. Half (51%) of younger people (16-24) surveyed view engineering as a good career choice.

3. The Role of Engineering and Engineers in the UK Innovation Drive

3.1 Innovation is vital to increasing our national and international competitiveness, improving our economy and our quality of life. It can also help us to address the key challenges ahead for manufacturers, from increasing competition from low cost manufacturing in Asia, through the ability to respond to technological advances of global supply chains, to the need to adopt more efficient equipment and processes to reduce environmental impact. Engineering will contribute across all these areas. The recently published White Paper, Innovation Nation5, describes this in more detail and sets out how the Government, its partners and delivery agencies will help make the UK a world leading site in which to be an innovative organisation.

3.2 The best-known innovative companies incorporate new technologies in well designed products that their competitors find hard to imitate and engineers are essential to the process of turning new innovative ideas into practical products and services. They have the vision to conceive new solutions and to deliver well designed products and services to match customer needs and there are strong indications from other companies that the availability of engineering skills are vital to improve levels of innovation and adopt high value added strategies.

3.3 Government recognises this as an important issue and aims to increase the UK’s innovation capacity by bringing together its leadership on innovation policy with its responsibilities for skills, further and higher education. The new DIUS sponsored Technology Strategy Board (TSB) will develop and lead a programme worth £1 billion over the next three years to provide business with a coherent package of technology and innovation support, helping companies to turn good ideas into new products and services.

4 Public Attitudes to Science 2008. Research Councils UK, March 2008. 5 The Innovation Nation Whiter Paper ref: www.dius.gov.uk/docs/home/ScienceInnovation.pdf

3.4 The TSB has been established to play a cross-Government leadership role, operating across all important sectors of the UK economy to stimulate innovation in those areas which offer the greatest scope for boosting UK growth and productivity.

3.5 Activities supported under the national Technology Strategy include:

• Innovation Platforms – Create the opportunity to bring together key partners (Universities, Government and business) to address a major societal challenge and to open up market opportunities to increase business investment in R&D and innovation.

• Knowledge Transfer Networks – over-arching national networks which aim to improve the UK’s innovation performance by increasing the breadth and depth of the knowledge transfer of technology into UK-based businesses. There are currently 23 including several with a strong engineering focus (Aerospace and Defence, Displays and Lighting, Low Carbon & Fuel Cell, and Modern Built Environment).

• Knowledge Transfer Partnerships – These provide funding opportunities to stimulate innovation through collaborative projects between business and the knowledge base by facilitating the transfer of knowledge and the spread of technical and business skills through projects undertaken by high calibre, recently qualified, people under the joint supervision of personnel from business and the knowledge base.

• Collaborative research and development (R&D) – This provides funding opportunities to enable business and research communities to work together on R&D projects from which successful new products, processes and services can emerge. There have been nine Collaborative R&D competitions announced to date (including the competitions announced in November 2007), and over 600 projects are currently being supported with a combined business and Government investment of over £1bn (with just over half the funds committed by business).

• Quality Improvement Agency (QIA) is aiming to develop knowledge transfer networks within the FE system as part of the National Teaching and Learning Change Programme.

3.6 Further details on its activities will be provided by the Technology Strategy Board.

3.7 There is also the work of the Research Councils whose primary role in the area is to support world-class, leading edge basic research and to sustain the supply of highly skilled people at postgraduate level. Research Councils also promote, in partnership with other stakeholders, the transfer of knowledge from

7 their investments in the research base to potential users (private and public) of the knowledge, and vice versa.

4. The state of engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile)

Trends connected with the uptake of professional registration.

4.1 Engineering Council UK (ECUK) licenses 35 professional engineering institutions to submit for registration members meeting the UK Standard for Professional Engineering Competence. The pattern and volume of flow of practitioners into and through the 3 professional categories – Chartered Engineers, Incorporated Engineers, and Engineering Technicians is complex. However, the backdrop to this is a marked decline overall in registrations over the last decade although it is worth noting that most of the 800,000 people classified as ‘engineers’ are not registered with an association. ETB’s Engineering UK 20076 report highlighted a number of salient points:

• the total number of registered engineers had fallen by 21,500, from 263,999 to 242,530 or by 8% in the decade;

• 74% of registered engineers are Chartered Engineers. Incorporated Engineers account for 17%, and Engineering Technicians for a further 6% of the total;

• ECUK registrations show that the total number of UK-based Chartered and Incorporated Engineers working in the UK at January 2007 was 242,530. Of these, 188,701 were Chartered Engineers, 40,466 Incorporated Engineers, and 13,363 were Engineering Technicians;

• Based on analysis of the Labour Force Survey, ECUK estimate that there are approximately 800,000 ‘engineers’ in the sector, noting that there was no reliable estimate of the numbers of those practicing engineering in the course of their work (e.g. technologists, metallurgists) but whose job title does not include engineering;

• ECUK and ETB surveys show that sectors other than manufacturing, utilities and transport dominate the employment of registered engineers - for instance, construction services accounts for employment of 20% of them in 2007;

6 Engineering UK 2007. HM Engineering Technology Board , December 2007.

Engineering in schools

4.2 Key Government initiatives to ensure children have the right skills to enter the engineering skills base include:

o New mathematics and science curricula that, through less prescription and greater flexibility, aim to engage, enthuse and inspire all pupils;

o Statutory entitlement to a course of study leading to 2 science GCSEs (intention is that 80% of young people will take at least 2);

o By September 2008 all pupils achieving level 6 or above at Key Stage 3 will be entitled to study triple science GCSE;

o Recruiting more and better mathematics and science graduates into mathematics and science teaching, improving the knowledge and pedagogy of those without a mathematics/physics/chemistry specialism, and CPD opportunities through 9 regional Science Learning Centres co-funded by the Wellcome Trust and the National Centre for Excellence in the Teaching of Mathematics;

o 250 after-school science clubs offering an engaging and stretching programme of activities to Key Stage 3 pupils. Government plans to double this number from September 2008;

o Funding STEMNET (£12.7 million 2005-08), the science, technology engineering and mathematics network with its UK-wide network of 53 SETPoints promoting STEM awareness among young people and 11,700 engineers acting as role models in schools as part of the Science and Engineering Ambassadors Programme;

4.3 Evidence of a positive impact includes an upward trend in students taking sciences and mathematics at GCSE and A-level (2007 data shows 720,046 entrants at A-level, of which 170,633 (i.e. 23.7%) were for STEM subjects). Government recognises more needs to be done, and has set targets for year-on- year increases so that by 2014 entries to A-level physics are 35,000, A-level chemistry 37,000 and A-level mathematics are 56,000.

Engineering in Further Education

4.4 There are more than 220,000 learners in the engineering and manufacturing subject group. However, the most recent data (2004-2007) for LSC-funded learners taking either an engineering or manufacturing technology subject at an FE college show there to be a downward trend – this requires

9 further investigation as to the associated reasons.

4.5 Number starting apprenticeships have seen a considerable rise (some 13,000 in 2005/06 to 20,000 in 2006/07).

Engineering in Higher Education

4.6 There is evidence that engineering remains a sound subject choice at HE- level. Price Waterhouse Coopers’ research showed that the premium for engineering degrees is one of the highest, as is the rate of return. HE destinations of leaver’s data shows that, three and a half years after graduating, engineering graduates earn more on average than other graduates, and engineering graduates who work as engineers earn more than those who do not (see Annex A).

4.7 In 2006/07 there were almost 34,000 graduates in engineering, with electronic and electrical, mechanical, civil, and general, being the largest categories (see Annex B). Acceptances for first degrees in engineering are up 4.3%, physics by 10.3%, and mathematics by 9.2% (UCAS 2007).

4.8 The total number of students qualifying in engineering has been increasing in recent years (see Annex C). However, any absolute increase is attributable to the recent increases in postgraduate qualifiers (see Annex D). First degree qualifier numbers have stabilized following a drop before 2002/03 (see Table ‘Engineering Qualifiers, By Level of Study’ in Annex attached). However, engineering has lost ground in terms of the proportion of graduates in all subjects, and within these overall numbers, production and mechanical engineering have experienced decreases - with mechanical picking up in the last couple of years (see Annex E). Engineering does have a far greater proportion of qualifiers who are non UK-domiciled, and recently this has grown faster than for other subjects (see Annex F).

4.9 The Royal Academy of Engineering’s report Educating Engineers for the 21st Century7 concluded that the UK faces an increasing shortage of graduate engineers. Following this, and the Sainsbury Review, Government and the Academy are working to establish a group of industry and academic experts to review current approaches and develop an experience-led degree integrating technical, operational and business skills which will report in 2008/09.

4.10 At postgraduate level, enhanced stipends from the Research Councils and the Collaborative Awards in Science and Engineering scheme are being used to attract students into engineering.

Issues of ‘diversity’

7 Educating Engineers for the 21st Century. Royal Academy of Engineering, 2007.

4.11 The proportion of engineering graduates who are female has been increasing slowly over time, but in 2006/07 only stood at 14.3% (compared with 60.5% for other subjects) – see Annex G. This pattern is reflected within the profession itself. The 2007 Labour Force Survey estimated that only 6.2% (almost 28,000) of engineering professionals were female – however there has been growth with 6,370 more women than in 2005.

4.12 Aware of the importance of ensuring a representative scientific workforce, the Government is supporting activities at various stages of the supply chain. For schools, 40% of the role model Science and Engineering Ambassadors are female and STEMNET is aiming, with DIUS support, to increase this figure. The Government also co-funds WISE (Women into science and engineering), and supports the Computer Club for Girls (C4G), working with partners including employers and local authorities to help women and men to access sectors where they are currently under-represented.

4.13 DIUS are funding the Royal Academy of Engineering and the Engineering Development Trust to lead a project which aims to give students from groups under represented in engineering (lower socio-economic status, BME, female) an early and positive experience of engineering in the form of a paid industrial placement with added mentoring and support.

4.14 Regarding employment, in 2003 the Government published its strategy for increasing the numbers of women in SET (science, engineering and technology) professions and committed to setting up a National Resource Centre for Women (UKRC) to deliver this. Launched in 2004, UKRC has been receiving approximately £7.5 million support from DTI/DIUS (2004-08) and DIUS has agreed to continue providing funding over the next three years. UKRC works with women returners and business to help maximise the opportunities for professional women in SET and close the skills gap including encouraging best practice in engineering businesses , for example 7 out of the 18 signatories of their Chief Executive Officer (CEO) Charter for Women in SET are engineering companies.

4.15 People from the black and ethnic minorities (BME) are greatly under- represented in engineering apprenticeships, having only about a third of the representation that you would expect from their representation in the main apprenticeship age groups. For BME and female under-representation, the apprenticeship review proposes that critical-mass pilots be carried out in certain areas to encourage greater participation from such groups.

5. The importance of engineering to R&D and the contribution of R&D to engineering.

5.1 The pattern of UK R&D in engineering has changed. R&D in mechanical engineering has remained approximately constant in real terms from 1998 to 2006. Aerospace R&D has risen by almost half in the same period, while electrical machinery and transport R&D both fell by around a quarter in real terms. Engineering now makes up just over a third of the UK’s R&D, compared to two fifths in 1998.

5.2 Whilst the innovation process in engineering is heavily dependent on R&D, it is not the whole story. Design, marketing and other activities are also part of turning ideas into value for engineering companies. The UK innovation survey shows that only about a third of what firms report as innovation spending is R&D. Nonetheless, R&D is a key part of successful engineering businesses in the UK and elsewhere.

R&D carried out in the UK

Sector Business Enterprise BERD (real terms, 2006 Research and Development prices, £m) (BERD) (cash terms, £m) 1998 2006 1998 2006 Mechanical 730 874 885 874 engineering Electrical 1 320 1 216 1 600 1 216 machinery Transport 1 020 913 1 237 913 equipment Aerospace 1 039 1 836 1 260 1 836 Total 4109 4839 4982 4839 Total as % 40.6% 33.8% 40.6% 33.8% UK BERD Source: ONS

5.3 The UK is a world leader in terms of research citations providing about 13% - second highest to the USA We do less well on engineering providing some 8% of the world’s engineering citations – behind the USA, Japan, Germany and China putting the UK in 5th place (and 4th in physical sciences). The UK has done well in consistently improving its impact on engineering research since 1996 but there remains room for improvement.

The mutual importance of R&D and engineering

5.4 Engineers use their technological knowledge to design, create and adapt material objects and processes. Sometimes this is relatively routine, albeit highly skilled, work involving the reapplication of existing knowledge. In other cases engineers make highly novel or appreciably improved products, processes or materials; this sort of work, which throws up problems that even professional engineers do not immediately know how to solve, is R&D.

5.5 The outputs of engineering – IT hardware, instrumentation and scientific apparatus, for example – are also used in the R&D processes of other firms. User-led innovation from these other R&D firms may be a driver for some engineering R&D.

Research Council and Higher Education Links

5.6 Higher education institutions are also active players in research and development both providing the high level skills and the innovative solutions for industry. The Engineering and Physical Sciences Research Council (EPSRC) expenditure on engineering research in 2007/08 will be £342 million via 3470 individual grants to academic institutions. These range from large long term awards (such as Science and Innovation Awards) through to small responsive grants. On current plans, and dependent on the quality of proposals received by EPSRC, this expenditure is expected to continue to rise through the next CSR period. The EPSRC also enhances capacity and leadership e.g. by funding research chairs. In addition EPSRC’s Challenging Engineering activity was developed to encourage and fund young researchers to be creative and to develop transformative research projects.

5.7 Research Council funding provides researchers, through major grants, with the flexibility to support longer term programmes of work to take the lead in engineering and related research and to take advantage of a research landscape where traditional boundaries no longer exist.

5.8 In order to build or sustain the research capability needed for the future, including the production of enough well-trained people and the development of leaders of research teams, in areas of national strategic importance such as engineering, EPSRC has made a number of Science and Innovation Awards8. These are long-term grants (typically £3 - 5 million over 5 years) where there is a commitment from the host Higher Education Institution/s to continue support after the end of the grant. So far EPSRC, in partnership with the Higher Education Funding Councils, has funded 24 Science and Innovation Awards including a number in key areas of engineering.

8 Science and Innovation Awards were introduced by EPSRC in 2005 to support strategic areas of research at particular risk. As undergraduate research choices change, more traditional core subjects see declining entrants affecting the academic staff base in universities. The Awards take positive action to address this gap.

5.9 The Royal Academy of Engineering plays a vital role in helping to improve the relative international performance of the UK research base, by promoting excellence and achievement in engineering research. A large proportion of their Science Budget allocation for 2008-11 – £35.2 million, a 31.5% increase over the period – supports prestigious research fellowships. Government support enables the Academy to attract additional support from industrial sponsors in a ratio exceeding 3:1.

6. The role of industry, universities, professional bodies, Government, union and others in promoting engineering skills to the formation and development of careers in engineering

6.1 Younger people have a more limited understanding of engineering in comparison with other age groups9. As the potential workforce of the future this lack of awareness and appreciation of engineering, and the career opportunities it offers, must be tackled if the UK is to attract the calibre and number of future engineers required to maintain and enhance our prosperity in an increasingly competitive global market.

6.2 Government recognises this and is keen to work with engineering partners to ensure that individuals have access to quality information, advice and guidance to allow them to make appropriate decisions about their career choice in this area. For example, Government plays an active role in promoting better understanding of options including engineering via:

• information, advice and guidance services such as Connexions (11 – 19) and Learndirect (adults) ; • the STEM priorities and targets; • promotion aimed at building a supporting skills base to underpin the above – such as graduate science teachers; • working with sector representative and professional bodies – SEMTA and the Royal Academy of Engineering to promote engineering as a career; and, • funding the National Science and Engineering Week– see para 2.5. In 2007, nearly 800,000 people took part in around 3,000 events across the UK. This year’s event took place in March.

6.3 Other parties, more directly related to the Engineering sector, are also very active in this area:

9 Public Attitudes to, and the Perceptions of Engineering and Engineers 2007 – A Study commissioned by the Royal Academy of Engineering and the Engineering and Technology Board, September 2007.

• The Royal Academy of Engineering makes a vital contribution alongside the various engineering institutions, working collectively and with Government to better promote the UK engineering profession.

• The Research Councils work with a range of partners to explore how better to involve and interest young people in engineering.

• SEMTA provides advice and guidance via partner organizations to those interested in working in the sector.

6.4 Activity to promote engineering is supported and provided across a wide range of age groups:

School level:

6.5 The DCSF raises awareness of engineering skills and careers through it’s STEM- related policies in schools where targets for physics and mathematics attainment, the new key stage 3 design and technology programme of study, and the GCSE in engineering will help develop the provision of skills for entry into graduate and higher level vocational courses. In addition, activities such as piloting 250 after school science and engineering clubs and the DIUS funded Science and Engineering Ambassadors programme, will both promote engineering and stimulate interest and engagement. The DCSF has just embarked on a STEM communications and careers campaign to inform pupils, parents and others of the wide ranging and exciting opportunities that are open to students when they study STEM. This includes the appointment of a national STEM careers coordinator who will work with employers, HEIs, professional bodies and other STEM partners and stakeholders to improve the flow of information to young people and to ensure that messages are consistent, relevant and appealing to young people.

6.6 A key delivery agent for the Government is the Royal Academy of Engineering, a major objective for which is to enthuse and engage young people in engineering subjects. For example, it has led the Technology and Engineering in Schools Strategy (TESS), through which the professional community of engineering institutions and other stakeholders are taking a co-ordinated approach to work within schools to promote engineering and technology. The first product is a single directory of existing high-quality activities for schools, called ‘Shape the Future’, and a campaign to engage target schools with capabilities in mathematics and science but no track record of engagement with engineering. The aim is to simplify the promotion of engineering in schools by channeling engineering community funding into existing schemes within TESS rather than into creating any more new schemes. Shape the Future is supported by a partnership made up of industry and over 40 organisations including STEMNET, the Engineering and Technology Board, and the G15 group of engineering institutions.

Promoting effective teaching in schools

6.7 The Government recognises the importance of highly skilled science teachers. DCSF have announced a £140m strategy over the 2008-11 period to support the STEM agenda in schools – this includes teacher recruitment, retention and continuous professional development, enrichment and enhancement activity and other support for schools such as the triple science programme. Promotion activities include Golden Hellos for science and mathematics teachers (£5,000), training mathematics and science specialist higher level teaching assistants, recruiting via employment based routes with £1000 incentives, and the Transition to Teaching programme to get employers to encourage talented staff to retrain as a secondary school teacher in maths or physics.

Further Education

6.8 FE makes a significant contribution to delivering high quality engineering.

6.9 A range of FE workforce initiatives have been introduced to help to attract, recruit and develop staff within the sector. Current initiatives in respect of recruitment and retention include: awarding Bursaries and Golden Hellos for teachers entering or remaining in FE to teach a range of shortage subject including maths, science, construction, design and technology, engineering and ICT; establishing 11 Centres for Excellence in Teacher Training (CETTs) aimed at significantly improving the quality of vocational teachers within the FE sector - STEM is considered a priority area for attention through CETTs; and Lifelong Learning UK (LLUK) is introducing a new workforce data system from 2008 to provide more comprehensive detail about workforce deployment and responsibilities and will provide detailed information on the STEM workforce.

6.10 In addition, Raising Skills, Improving Life Chances10 announced a series of new strategic recruitment processes - the Catalyst programme. In addition to encouraging high flying graduates and individuals from industry into management roles, it has strands which will give FE staff the chance to work more closely with local businesses and update their practical and vocational skills as well as providing opportunities for skilled specialists to move into teaching roles within FE. The latter will include a STEM-targeted campaign, and the one covering engineering is, consistent with its top priority, already underway.

6.11 LLUK will work in partnership with employers, learning providers, representative bodies and other FE system organisations to deliver these programmes within FE colleges, work based, and adult and community learning settings.

10 Raising Skills, Improving Life Chances, FE Reform White paper. DfES, March 2006.

6.12 The FE White Paper (2007), introduced regulations that require all FE teachers to undertake at least 30 hours of CPD each year, to maintain their professional standing, with pro rata expectations for those working part time.

Higher Education

6.13 From its Strategic Development Fund, HEFCE funds projects to increase and widen participation in engineering, chemistry, physics and maths.

6.14 The Research Councils partner with many other stakeholder organisations in order to promote engineering skills to the public and young people in particular. EPSRC currently funds 4 high profile champions (Senior Media Fellows11) who work proactively with the media to promote engineering related research. EPSRC supports a number of vacation bursaries to enable undergraduate students to gain experience of a research environment. These are intended to be used in shortage areas such as engineering and increase the number of people choosing a research career path from a variety of backgrounds.

Employer influence and promotion

6.15 The Royal Academy of Engineering also manages the National Engineering Programme (NEP), which recognises the connection between engineering and society. By promoting the development of attractive engineering courses in local universities and filling those courses with students with aptitude, it aims to change the face of UK Higher Education in engineering, widening participation and strengthening engineering as a strategic subject. The NEP partnership seeks to make engineering degree courses gender inclusive, relevant to the needs of society, and hence more attractive to a wider community of students.

6.16 The London Engineering Project is the first phase of the NEP. This is an £2.85 million project funded by HEFCE (80%) and industry, aims to widen participation in engineering in South London. There are four target groups: women; students from families with no experience of higher education; black and minority ethnic students; and adult learners.

6.17 Trade Unions and their Union Learning Representatives (ULRs) also have a key role to play in the unionised workplace providing both an inexpensive source of expert advice for employers and an effective route to reach workers who may be reluctant to take advantage of training opportunities.

7. Sector Demand for Engineering Skills and Government Response

11 http://www.epsrc.ac.uk/PublicEngagement/ActivitiesAndFundingForResearchers/SMF

7.1 Whilst the SSDA’s Working Futures12 report suggest that the number of people employer within sectors covered by SEMTA will continue to decline over the next 10 years (some 150,000 fewer workers), half of the reductions will be amongst the skilled trades occupations. However, the net loss in jobs will only just outweigh the replacement demand through retirement and people leaving the sector: reports vary but suggest a net loss of between 20,000 – 35,000 people per annum. Total employment in the sector is anticipated to be 1.29 million people by 2014 (down from 1.45 million in 2004). The ECITB13 anticipate that the net demand would mean an additional 17,000 people by 2014.

7.2 Alongside this SEMTA’s 2006 labour market survey14 based on employer perceptions suggests that one in ten organisations had experienced recent problems in filing vacancies with larger organisations suffering more. The sectors most likely to experience problems filling vacancies are Marine (20%) and Aerospace (16%). Vacancies are most likely to be in skilled trade occupations and process, plant and machine operative posts (48% and 20% of organisations respectively).

7.3 Just 5% of the organisations experiencing hard to fill vacancies in the last year reported problems in recruiting engineering graduates, although the proportion was higher in the Aerospace (15%) and Electronics (13%) sectors. Problems with general vacancies were most likely to be experienced in recruiting mechanical engineering graduates.

7.4 The labour market research suggest that some 24% of respondents would be quite or very likely to look to FE and HE to provide their training needs – with 40% using in-house training and only 13% seeking training via employer associations or professional bodies.

7.5 The engineering sector also has skills gaps – with some 70,00015 employees within the SEMTA footprint requiring further training (affecting 19% of organisations).

7.6 However, the issues relating to recruitment and retention of engineers occurs across a range of sectors – and not just those traditionally associated with engineering skills but also financial services, food, software and consumer services. This is particularly a concern for inward investors where it is vital that the UK maintains its quality and high skill reputation, and the UK Trade and

12 Working Futures 2004-2014: Sectoral Report pages 66 – 75 uses economic modelling to look at sector employment to 2014. 13 ECITB Bridging the Skills Gap. Median scenario data assuming 5% pa growth and 3-5% loss quoted. 14 BMG Research Report: 2006 Labour Market Survey of the GB Engineering Sectors (prepared for SEMTA) April 2007. An employer perceptions survey. 15 National Employers Skills Survey 2005. LSC, June 2006.

Investment memorandum presented separately to the Select Committee provides more details.

7.7 DIUS will be leading a project to explore the demand for STEM skills and to understand the labour market needs for different kinds and levels of STEM specialism. This will report late in 2008.

How the Government is meeting the Demand

7.8 The Government works with partners to ensure the UK has a strong supply of scientists and engineers:

• We recognise that the future supply of engineers will rely not only on young people studying engineering related subjects at school but also the key underpinning subjects, physics and mathematics. For example, DCSF has announced a £140 million strategy over the 2008-11 period to support the STEM agenda.

• We support an expanding network of 18,000 Science and Engineering Ambassadors Programme through which scientists and engineers, including a number of young people, act as positive role models and offer mentoring and career guidance. This inspires future generations by conveying first-hand their experience of the excitement, importance and job satisfaction arising from the work. About 65% of Ambassadors are from an engineering profession.

• The Further Education (FE) sector makes a significant contribution to delivering high quality engineering training – the latest data shows in excess of 220,000 learners in the Engineering and Manufacturing subject group, with over 77% of engineering learners achieving their stated outcomes. We have also introduced Diplomas, improved work experience and developed the Apprenticeship routes.

• Introducing the new Engineering Diploma (from September 2008) as a new qualification that will provide 14-19 year olds with a range of skills and knowledge valued by employers and universities. These include functional skills in mathematics, ICT (information and communication technology), English, and industry-related skills and knowledge, to provide a common foundation in the range of engineering-related industries. The Diploma provides practical and analytical skills including the mathematics and science required for engineering.

• Engineering is recognised as one of the most successful apprenticeship sectors with almost 20,000 starting in 2006/7 in areas of learning covered by SEMTA, the sector skills council for science, engineering and manufacturing technologies. In addition the Manufacturing and Product

Design (from Sept 09) and the Science (from Sept 2011) diplomas have strong relationships to engineering.

• In common with all Sector Skills Councils, SEMTA has been producing Sector Skills Agreements (SSAs), setting out the future skills needs of the sector and how the education and training system can respond to meet those needs. SEMTA has, for instance, produced an SSA for the aerospace sector, which has a direct bearing on engineering needs in that industry.

• We provide assistance to employers who need to source training through the Train to Gain service. Impartial Skills Brokers work with employers to identify their skills needs and then help them access a tailored solution that best fits their business needs.

• We are working through the Higher Education Funding Council for England (HEFCE) to ensure that the higher education sector maintains the capacity to provide STEM subjects deemed to be both strategically important and vulnerable. HEFCE is providing additional funding to selected higher education institutions of £75 million over the next three years, recognising the high costs of some STEM subjects. HEFCE is also working with employers to develop new Foundation degrees in engineering, and engineering related subjects. We will continue to provide public funding for second degree students in engineering and other STEM subjects, recognising their importance.

• Also HEFCE are supporting and developing a number of projects to ensure the HE sector maintains the capacity to provide STEM subjects deemed to be both strategically important and vulnerable.

• Lord Digby Jones has recently commissioned a project looking at UK Trade and Investment’s collaboration with Universities and seeking to enhance the value that each organisation can provide to the other.

• Development of the National Skills Academies Programme – a demand- led employer driven programme which puts employers at the centre and offers them unique opportunity to lead the development and delivery of training which meets the needs of their sector. There are twelve approved National Skills Academies (NSAs) in various stages of development. Six NSAs are still in business planning stage and six have been approved including several linked to the engineering sector - construction, food and drink manufacture, nuclear, process and manufacturing. This latter NSA (the National Skills Academy for Manufacturing - NSAM) is, perhaps, one of the most relevant to the engineering aspect under discussion. It was launched in July 2007, has the support /sponsorship of Toyota, Cobham Aerospace, Airbus, Rolls Royce, BAE systems, Ford, Nissan and

others, and, by 2012, NSAM is intending to support the learning and skill needs of 40,000 people per annum.

• Building on the 2002 Manufacturing Strategy, the Government is conducting a review with a view to meeting the evolving needs of the sector. A new strategy will be published in summer 2008. In reviewing the Manufacturing Strategy, the Government recognises that the UK has a comparative advantage in knowledge-intensive industries, and will need to continue to build a strategy based on openness, flexibility and investment in knowledge and skills that enhances that advantage. This will enable companies to produce more knowledge-intensive goods and services and move more quickly into the new knowledge intensive industries".

• DIUS funds National Science and Engineering Week, an annual, weeklong celebration of science, and now engineering, aimed at everyone from school children, parents and teachers to key decision makers and investors. Formerly known as National Science Week, it was renamed last year to include engineering to re-emphasise the importance of engineering in our society and the vital contribution it makes for our future prosperity.

• During 2008/09, UKTI will develop a global marketing strategy for the UK advanced engineering sector. The strategy will target specific overseas business sectors and individual companies and assist UK companies in selling themselves overseas. The process to develop the strategy will be a wide ranging UK strategy taking contributions from business, academia and all relevant parts of Government, including the regions, the Devolved Administrations other parts of Whitehall.

7.9 All of the above are aimed at ensuring that the UK has the highly skilled workforce required for the 21st Century.

Annex A

Labour Market Outcomes

• PriceWaterhouseCooper (PWC) research indicates that the premium for engineering degrees is one of the highest - £243,730 gross additional lifetime earnings compared to two or more A-level holders; the graduate premium for the average degree is £160,061 according to same paper.16

• Other PWC research found the rate of return to an engineering degree is also one of the highest at 15.5% compared to 12.1% for the average degree.17

• Preliminary internal DIUS analysis based upon the Longitudinal Destinations of Leavers from Higher Education data suggests that, three and half years after graduating, Engineers earn more, on average than other graduates (£25,100 compared to £22,500 for other graduates).

• The same analysis also suggests that about one third of Engineering graduates work as Engineers three and half years after graduating. Another third will work in other scientific occupations, and the final third will work in non-scientific jobs.

• In addition, the analysis indicates that Engineers who work in science occupations tend to earn more, on average, than Engineers who work in non-science occupations.

16 PricewaterhouseCoopers LLP (2006): Economic Impact Study: A report produced for a London Higher Education Institution, unpublished. 17 PricewaterhouseCoopers LLP (2005): The economic benefits of higher education qualification: A report produced by the Royal Society of Chemistry and the Institute of Physics.

Annex B

In 2006/07, there were almost 34,000 graduates in Engineering. In terms of subject of study, this gave the following breakdown. The largest Engineering subjects were (in descending order of magnitude): Electronic and Electrical Engineering, Mechanical Engineering, Civil Engineering and General Engineering

Breakdown by Subject of 2006/07 Engineering Graduates Naval Architecture 0% Others in Engineering Balanced Combination Chemical, Process & Energy 1% 0% Engineering 5% Aeronautical Engineering 6%

Electronic & Electrical Production & Manufacturing Engineering Engineering 31% 7%

General Engineering 16%

Mechanical Engineering 17% Civil Engineering 17%

Annex C

Student Numbers Although the total number of students qualifying in Engineering (all domiciles and all levels of study) has been increasing in recent years, Engineering has lost ground in terms of the proportion of graduates in all subjects:

Engineering Qualifiers from UK Higher Education Institutions, Academic Years 1997/98 to 2006/07

35,000 8.0%

34,000 7.1% 7.0% 6.9% 33,790 6.4% 33,230 6.1% 33,000 5.9% 32,855 6.0% 5.3% 5.3% 5.2% 5.2% 5.2% 32,000 5.0% 31,650 31,000 4.0% 30,890 30,760 30,685 30,535 30,000 3.0% 29,780 29,335 29,000 2.0%

28,000 1.0%

27,000 0.0%

8 9 2 y 5 6 /9 /9 g /0 /0 7 8 1/0 lo 4 5 9 0 o 9 000/01 0 od 002/03 003/04 1 199 1999/00 2 2 h 2 2 200 200 2006/07

in Met

ange h C Total Engineering Qualifiers Engineering Qualifiers as a Proportion of all Qualifiers Source: Higher Education Statistics Agency (HESA). Notes: o Figures cover students from all domiciles, on all levels of study and all modes of study. o In 2002/03 the methodology for recording subject of study was changed on the student record. Aside from the introduction of a new coding frame, JACS (previously a system called HESACODE was used), students were apportioned between their subjects of study rather than being assigned on a headcount basis to their major subject. As such, comparisons between figures for 2001/02 and earlier and for 2002/03 onwards can not be made.

Annex D

Any absolute increases in engineering qualifiers are attributable to the increase in Postgraduate qualifiers over recent years. For 1st Degree qualifiers there were drops in the period up to 2002/03, with the number of qualifiers stabilizing after that.

Engineering Qualifiers, by Level of Study

25,000

20,000

15,000 Postgraduate 1st Degree Other Undergraduate 10,000

5,000

0 1 y 3 4 6 7 /99 /0 0 g /0 0 /0 /0 8 9 lo 2 5 6 9 o 0 0 0 d 0 0 0 1997/98 19 199 2000/ 2001/02 o 2 2003/ 2004/05 2 2 th e M e in g n a Ch

Annex E

But not all Engineering subjects have fared in the same way. There have been increases in the number of qualifiers in General, Civil and Aerospace/Aeronautical Engineering, whereas Production and Mechanical Engineering have experienced decreases (although the latter appears to have picked up again in the last two years).

Qualifiers from UK Higher Education Institutions by Principal Subject (1), Academic Years 1997/98 to 2006/07

Principal Subject (1) 1997/98 1998/99 1999/00 2000/01 2001/02 Principal Subject (1) 2002/03 2003/04 2004/05 2005/06 2006/07 (H1) General Engineering 4,250 4,250 4,455 4,095 4,470 (H1) General Engineering 4,090 4,380 5,080 5,355 5,465 (H2) Civil Engineering 4,830 4,785 4,295 4,340 4,365 (H2) Civil Engineering 4,195 4,545 5,025 5,095 5,675 (H3) Mechanical Engineering 5,615 5,415 5,320 5,645 5,260 (H3) Mechanical Engineering 5,445 5,365 5,275 5,425 5,875 (H4) Aerospace Engineering 940 1,015 1,060 1,235 1,195 (H4) Aeronautical Engineering 1,450 1,610 1,770 1,875 1,995 (H5) Electrical Engineering 1,990 1,840 1,755 1,880 1,795 (H5) Naval Architecture 180 140 130 175 135 (H6) Electronic Engineering 5,895 6,250 6,080 6,840 7,435 (H6) Electronic & Electrical Engineering 10,110 10,625 10,760 10,440 10,160 (H7) Production Engineering 3,490 3,385 3,115 3,225 3,115 (H7) Production & Manufacturing Engineering 2,600 2,945 2,805 2,670 2,395 (H8) Chemical Engineering 1,595 1,630 1,500 1,610 1,470 (H8) Chemical, Process & Energy Engineering 1,440 1,465 1,530 1,640 1,610 (H9) Other Engineering 240 195 140 250 285 (H9) Others in Engineering 255 485 430 505 415 (HZ) Balanced Combination 2,045 1,925 1,620 1,415 1,365 (H0) Balanced Combination 15 90 55 50 55 Total Engineering 30,890 30,685 29,335 30,535 30,760 Total Engineering 29,780 31,650 32,855 33,230 33,790 All Other Subjects 406,240 416,255 430,925 473,870 490,740 All Other Subjects 528,010 563,995 600,185 607,620 617,270 Overall Total 437,130 446,940 460,260 504,410 521,500 Overall Total 557,790 595,640 633,040 640,850 651,060 Source: Higher Education Statistics Agency (HESA). Notes: Figures cover students from all domiciles, on all levels of study and all modes of study. (1) In 2002/03 the methodology for recording subject of study was changed on the student record. Aside from the introduction of a new coding frame, JACS (previously a system called HESACODE was used), students were apportioned between their subjects of study rather than being assigned on a headcount basis to their major subject. As such, comparisons between figures for 2001/02 and earlier and for 2002/03 onwards can not be made.

Annex F

Engineering has a far greater proportion of qualifiers who are non UK-domiciled. In recent years, the proportion of Engineering qualifiers who are EU/“Other Overseas” has grown faster than for other subjects.

Proportion of EU and "Other Overseas" Domiciled Students

45.0%

41.9% 41.4% 40.0% 39.1%

35.9% 35.0% 34.2% 32.8% 32.2% 32.3% 31.8% 30.0% 30.0%

25.0%

20.0% 17.5% 18.1% 16.2% 16.6% 15.0% 14.8% 13.4% 14.1% 12.6% 12.7% 13.1% 10.0%

5.0%

0.0% 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Engineering Other Subjects

Annex G

The proportion of Engineering graduates who are female has been increasing slowly over time, and stood at 14.3% in 2006/7. This is considerably lower than the proportion of qualifiers who are female in other subjects, which stood at 60.5% in 2006/07.

Proportion of Engineering Qualifiers Who Are Female

70.0%

60.2% 60.4% 60.5% 60.5% 60.0% 58.9% 59.3% 59.7% 57.5% 58.1% 56.2%

50.0%

40.0% Engineering All Other Subjects 30.0%

20.0%

14.4% 14.3% 15.0% 14.3% 12.8% 13.1% 13.1% 13.7% 11.5% 12.4% 10.0%

0.0%

0 1 6 /0 /05 /0 8/99 9 99 00/0 04 05 9 0 0 1997/98 19 1 2 2001/02 2002/03 2003/04 20 2 2006/07

Change in Methodology

Annex H

Innovation, Universities and Skills Committee Inquiry Into Engineering

Written Evidence from UK Trade & Investment

Executive Summary

The State of the Engineering Skills Base in the UK, Including the Supply of Engineers and Issues of Diversity 1. Anecdotal evidence, collected from face-to-face visits, email and telephone conversations with inward investors, highlights issues these companies are facing when doing business in the UK. Based on the total number of occurrences, skills is repeatedly one of the concerns most frequently raised by inward investors. Of those raised, availability of engineers account for over one third of issues relating to skills. These issues are raised by companies in a wide variety of sectors, from financial services to automotive, and in regions and nations across the UK. The volume of engineers required, and the range of disciplines sought by inward investors is substantial, as are the consequences of these companies in not being able to fulfil their needs. These consequences include lost productivity, delays in expansion and the possibility of relocating outside the UK.

The Role of Engineering and Engineers in UK's Innovation Drive 2. Anecdotal evidence from business people suggests the UK’s reputation for academic excellence and producing high quality engineering graduates is a key element in its overall reputation in international markets as a potential partner for advanced engineering trade and investment. It is vitally important that this reputation is maintained and enhanced. UKTI is working to highlight UK excellence in advanced engineering (aerospace, automotive and engineering) in global markets, particularly high growth markets.

Submission

The State of the Engineering Skills Base in the UK, Including the Supply of Engineers and Issues of Diversity

Source of evidence about skills concerns of inward investors: 3. The evidence presented is taken from UKTI visit reports and includes issues raised by inward investors between May 2006 and February 2008. Whilst the total numbers of companies involved is small, and therefore not necessarily statistically robust, this anecdotal evidence does present themes and facts which will help inform the enquiry.

Themes and findings: 4. Of the issues raised, relating to skills, during the period May 2006 to February 2008, over one third of skills issues related specifically to difficulties in recruiting or retaining engineers.

5. The issues relating to the recruitment and retention of engineers occurred across a wide variety of sectors. Issues were not limited to sectors traditionally associated with engineering skills, such as automotive and mechanical and process engineering, but also occurred in financial services, food and drink and software and consumer services. Table A shows the full range of sectors from which individual companies highlighted issues in recruiting and retaining engineers.

Table A: Percentage of issues raised by inward investors, by sector. Automotive 12.3% Mechanical Electrical and Process Engineering 12.3% Electronics and IT Hardware 11.0% Software and Consumer Services Business to Business (B2B) 11.0% Chemicals 9.6% Biotechnology and Pharmaceuticals 6.8%

Construction 6.8% Food and Drink 5.5% Aerospace (Civil) 4.1% Business (and Consumer) Services 4.1% Fire, Police and Security 4.1% Communications 2.7% Power 2.7% Creative and Media 1.4% Financial Services 1.4% Oil and Gas 1.4% Railways 1.4% Water 1.4%

Range of engineering disciplines:

6. Although inward investors were not specifically requested to provide detail, many did specify that their businesses needed specific engineering disciplines. Companies required personnel from a wide variety of engineering disciplines, and whilst the majority of the evidence simply states a requirement for ‘engineers’, many stated that they were specifically searching for skilled engineers, i.e. those with industrial experience. This means that although links have been brokered with training organisations and higher education institutions, the majority of companies are aiming to recruit skilled and experienced engineers, who require no additional training. There were, however, a few companies looking to establish apprenticeship programmes.

7. In addition to requiring skilled, experienced engineers, companies were often stating a requirement for a range of engineering disciplines, the need to recruit multiple staff and the requirement of additional skills, such as leadership and language skills.

8. Of the inward investors who raised an issue relating to the availability of engineers, over 90% were seeking to recruit more than one individual, and several were aiming to recruit more than 10, with the highest requirement being 100, across a range of engineering disciplines.

9. The range of engineering disciplines stated as being required included: software engineers, electrical engineers, mechanical engineers, chemical engineers, design engineers, electronic engineers, systems engineers, stress engineers, field service engineers, production engineers and refrigeration engineers, with many companies stating a need to recruit from more than one discipline.

Geographical scope: 10. Issues relating to the shortage of skilled engineers were raised from inward investors in 7 English regions and Scotland, showing that this is a UK wide issue. The greatest number of issues were raised from companies based in the North West, South East and Yorkshire and the Humber.

Reasons for skills shortage: 11. A number of companies have suggested reasons for the lack of available engineers. These included: increased demand from companies as their skilled engineering population approaches retirement, fewer young people willing to enter the industry because of their perception of engineering as an undesirable occupation, and young people seeking the instant gratification of the salary from alternative employment, such as call centres, rather than the potential lifetime earnings a career in engineering can offer. Additional reasons included a lack of local talent, salary expectations of skilled, qualified engineers are too high and there was also a perception from a few companies that the quality of UK qualified engineers was poor, with a number of companies stating that the quality of applicants for advertised positions was disappointing.

12. Some companies are also struggling to retain staff, as the demand for skilled engineers increases and people seek alternative opportunities in other companies. One company stated that poaching staff was commonplace.

Consequences of not filling vacancies: 13. Some of the companies that raised issues relating to the shortage of engineers stated the consequences of not being able to recruit suitable personnel. These included: needing staff to enable the company to move within the UK; having to bring people in from the parent company to fix maintenance and process problems; unable to develop further capability; impact on site efficiency; constraint on expansion and technical base of one company having to relocate outside the UK.

The Role of Engineering and Engineers in UK's Innovation Drive

UK Trade & Investment’s role: 14. UK Trade & Investment (UKTI) is the Government organisation that helps UK based companies succeed in international markets. We assist overseas companies to bring high quality investment to the UK's vibrant economy.

UK Trade & Investment’s strategy: 15. In the midst of the biggest industrial and economic restructuring the world has ever seen, the UK’s prosperity depends on harnessing the best knowledge and skills from around the world and marketing our business strengths effectively overseas. Central to UK Trade & Investment’s strategy18 is the world-class marketing of the UK’s business strengths – both its strengths as a place for overseas businesses to invest and the strengths of existing UK businesses as trade or investment partners.

18 Prosperity in a Changing World, July 2006

16. UKTI has developed overarching messages19 on the distinctive strengths that best present UK business to our target customers. During 2008/09, UKTI will develop a global marketing strategy for the UK advanced engineering sector. Supported by high quality marketing materials, the strategy will target specific overseas business sectors and individual companies on the basis of core messages about relevant UK strengths, and to assist UK companies in selling themselves overseas. This strategy will include specific targets on investment and trade, to be set by March 2009.

17. The UK strategy will: identify the sector’s key strengths; clarify the international opportunities available; and create, in partnership with business and other stakeholders, a compelling proposition that sells UK business expertise in advanced engineering to the world. The process to develop the strategy will be a wide ranging UK strategy taking contributions from business, academia and all relevant parts of Government, including the regions, the Devolved Administrations other parts of Whitehall. The strategy will be overseen by the business-led Advanced Engineering Sector Advisory Board20.

The Advanced Engineering Sector Advisory Board and links with innovation and skills: 18. Membership of the Advanced Engineering Sector Advisory Board has evolved to ensure that a broad spectrum of interests and views contribute to the strategic direction that it sets for UKTI. EEF and the CBI have been members from the outset (created in March 2007 from sector-specific Groups covering aerospace, automotive and engineering) and in November 2007, the Professor and Head of Engineering and Technology at the University of Wolverhampton joined the Board to provide a better understanding of the link between business and academia in this area.

19 The UK’s Compelling Message a Springboard for Global Growth, March 2008 20 www.uktradeinvest.gov.uk follow links >want to export from the UK >sectors >mechanical electrical & process engineering

19. A major strand of UKTI’s work is to enhance the reputation of UK business capability across the world. A key element of the UK’s reputation lies in the abilities of the engineers working in the sector and the strength of the academic institutions and their degree courses. UKTI already has a range of relationships with universities but Lord Digby Jones has recently commissioned a project looking at UKTI’s collaboration with universities and seeking to enhance the value that each organisation can provide to the other.

20. Within Advanced Engineering, UKTI looks to exploit opportunities to promote the excellence both of the capability of the UK sector and of the importance of skilled engineers to the future wellbeing of the sector.

21. One example of this is UKTI’s plans for the Farnborough International Airshow. Farnborough is a truly world class biennial event held in the UK, attracting around 1,500 exhibitors from some 35 countries. The final trade day of the show is branded International Youth Day at which the organisers have arranged for around 500 hand selected students aged 15- 23 to be given a structured programme of events introducing them to the aerospace sector and giving them an insight into career opportunities.

22. Given this opportunity, UKTI’s international trade, inward investment and Skills Specialists are planning to hold a series of seminars to outline the national perspective of what the UK offers on skills and training and a regional perspective, including a business case study and a recently employed graduate or apprentice who has been taken on as part of a skills and training initiative.

The UK’s international Reputation for Advanced Engineering Innovation and Skills: 23. In advance of the UK strategy, the Advanced Engineering Sector Advisory Board has been overseeing a marketing drive focussed on India that has involved taking the view of UK business about Indian perceptions of the UK as a potential trade and investment partner. Anecdotal evidence from

business people on the Board and in a wider focus group suggests that the UK’s reputation for academic excellence and producing high quality graduates is a key element in its overall reputation in international markets.

24. UKTI’s Sectors Group team for advanced engineering has already produced material on the UK’s strengths21 and is producing a DVD on advanced engineering in support of its India marketing initiative.

25. UKTI is fully aware of the importance of this issue. In both its inward investment and trade development activities, we are seeking ways to highlight globally our academic excellence and our well established but innovative engineering base.

March 2008

21 “UK Aerospace Capability”; “UK Engineering – World-Class Capability”; “Motorsport Valley – The Business of Winning”

Memorandum 2 Submission from UKCRC (UK Computing Research Committee)

Executive Summary 1. The UK Computing Research Committee (UKCRC) is an Expert Panel of the British Computer Society, the Institution of Engineering and Technology and the Council of Professors and Heads of Computing. We have limited our evidence to the technical issues that fall within our direct expertise, and to their direct consequences. 2. Computer systems are now embedded in almost every engineered product, e.g. controlling cars, aircraft and medical devices. The embedded systems market is far larger than that for PCs, and the UK is one of the world leaders in this sector. 3. Engineering in the UK, particularly in the embedded systems sector, is a success story, with several world class firms and a strong research base. Work on embedded systems contributes to the wealth of the UK, to addressing environmental concerns, and to the safety of the public. 4. The biggest threat to the UK’s continued success is the shortage of skilled staff, exacerbated by the low application rate to computing courses in the UK. Our recommendations are mainly related to the issue of recruitment to computing courses: • All stakeholders, e.g. industry, Universities and government, need to work together to improve the marketing of computing, especially embedded systems, courses at University to school pupils; • Government needs to review the teaching of computing in schools and, if practical, to introduce the teaching of computing as a technical discipline to reverse the decline in interest in computing amongst secondary school pupils; • Government also needs to review the impact of FEC on industrially sponsored research in Universities, to reverse the trend for UK companies to choose to work with overseas Universities as this is a more cost-effective. 5. Computing is also crucial in many other areas, e.g. finance, communications, and Critical National Infrastructure. The effective engineering of such systems is also central to the UK’s prosperity and security.

Introduction 6. The UK Computing Research Committee (UKCRC), an Expert Panel of the British Computer Society, the Institution of Engineering and Technology and the Council of Professors and Heads of Computing, was formed in November 2000 as a policy committee for computing research in the UK. Its members are leading computing researchers from UK academia and industry.

7. The most familiar computers are desktop PCs, however the embedded systems market is much bigger, and more critical to engineered products. Market estimates suggest that PC sales in 2007 were roughly 270M units; sales of mobile ‘phones alone were over 800M units. Embedded processors are found in cars, aircraft, televisions, MP3 players, pacemakers, tractors, and so on. Thus the worldwide embedded systems market is probably at least an order of magnitude larger (in volume and value) than the PC market. 8. In almost all engineering domains, except perhaps civil engineering, products are now critically dependent on computers and software22. For example, in modern military aircraft, over 80% of the functions are computer controlled; other industries are similarly dependent. In many cases, e.g. high specification cars, embedded systems and software provide the “product differentiator” and have a major impact on saleability and commercial success of the product. 9. In all engineering domains computers and software are used as design tools – both in describing and analysing systems and products. In some areas, e.g. aircraft design, computer-based models are critical to commercial success of the product. Contracts are entered into based on predictions of performance, e.g. cost per passenger mile, long before the aircraft can be built and tested. If these predictions are inaccurate, then there could be severe financial penalties for underperformance, and long- term damage to reputation. 10. The UK has unique strengths in embedded systems, both in manufacturing and in research and development. Major engineering companies, such as Rolls-Royce, are dependent on embedded computers and software in their products, and on computer-based design tools. Electronics companies such as ARM23 provide the intellectual property which underlies processor designs in mobile ‘phones and many other markets, e.g. automotive, printers, and digital cameras. The UK has originated world-leading research on software design for embedded systems, and this is exploited in specialist companies, e.g. Praxis High Integrity Systems24 and Rapita Systems25. 11. An important sub-class of embedded systems are safety-critical systems, i.e. those whose failure or malfunction could lead to injury or loss of life. The UK has a strong industrial base and research community in safety critical systems, with world class companies in avionics and automotive systems. 12. By their very nature embedded processors are hidden – they can be thought of as the “invisible IT industry”. However they are very important to the UK economy, and to the UK engineering sector.

22 “The Universe of Engineering. A UK Perspective”, Sir Robert Malpas, The Royal Academy of Engineering, June 2000, shows all engineering sectors except agriculture dependent on IT; now agricultural machinery is computerised. 23 http://www.arm.com/ 24 See: http://www.praxis-his.com/ 25 See: http://www.rapitasystems.com/

Response to Issues in the TsoR 13. We present our evidence from the point of view of the role and value of computing, particularly the development of embedded computer systems (ECS) and engineering design tools (EDT). The role of engineering and engineers in UK society. 14. ECS have a significant role in reducing the environmental impact of many systems and products. For example, computer control over car and aircraft engines reduces the level of carbon emissions and improves the efficiency of the engines. Nowadays, reductions in environmental impact of major engineered systems are as likely to arise from the capabilities of ECS as other aspects of engineering design. 15. Many ECS have a safety role, either actively contributing to safety or providing protection. Active safety systems in cars include anti-lock braking and traction control. ECS are also used in medical devices, e.g. pacemakers and defibrillators. In high specification cars many of the innovations are based on ECS; these systems later flow down into mass market vehicles. 16. ECS are also important in safeguarding Critical National Infrastructure (CNI). The effectiveness of ECS safeguards to CNI is dependent on the effectiveness of the (engineering of) their security mechanisms. 17. Work on EDT contributes to the strength of engineering industry and hence to the UK economy. Perhaps the best-known programmes are the Rolls-Royce UTCs26; some of these, e.g. at Southampton and Oxford, work on design tools which contribute to the definition and analysis of aircraft engines and thus support Rolls-Royce’s core business. 18. Engineers, especially those working on ECS, contribute to the wealth of the UK, to addressing environmental concerns, and to the safety of the public.

The role of engineering and engineers in UK’s innovation drive. 19. The UK has been highly innovative in computing and software technology and its contributions to engineering, including embedded systems, have been significant, although perhaps not very well known. We give examples from two different industries. 20. The first ARM processor was designed in 1983-4 by a company called Acorn; it is now owned by ARM Ltd. ARM is unusual in that it is an intellectual property (IP) company and does not manufacture its own designs. It has been supplying IP to the mobile ‘phone market for just over 10 years, and has around 70% of the high-end embedded processor27 market. Now more than 10 billion ARM processors have been produced – more than one for every person on the planet. ARM remains highly innovative and commercially successful.

26 http://www.rolls-royce.com/education/utc/default.jsp 27 Processors supporting 32 bit arithmetic.

21. The UK is also very successful in specialist sensors which, necessarily, incorporate ECS. For example, Datum28 produce torque measurement equipment for the automotive and other industries. Silicon Sensing29 produce specialist movement sensors, e.g. accelerometers for cars, supplying some of the major European car manufacturers. 22. The UK is highly innovative, and the innovation translates into commercial success in a range of industries, including communications, electronic games, personal devices, e.g. MP3 players, and automotive electronics.

The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile). 23. UKCRC does not have precise data on the skills base in the UK, in the embedded systems arena or more widely in IT. However it is possible to draw inferences from recruitment activity at Universities, and from interaction with industry. 24. There is a general under-supply of well-qualified individuals in computing and IT. The more highly regarded Universities are unable to meet industrial demand for placement students or for graduates. Relatively few Universities focus on the skills needed to work in embedded systems; if anything, these Universities are even more highly over-subscribed30. 25. This demand must be contrasted with the significant drop in applications to computing. Applications across the UK are down by circa 50% in the last five years, and the trend is still downward. Analysis by the British Computer Society and others show that there are a number of factors, including pupils’ misperception of the opportunities in IT, and the nature and quality of teaching in schools. 26. In many schools teaching of computing is limited to the use of standard office tools, such as word processors and databases. Generally, pupils find this to be undemanding (even boring) and it does not attract the more able students into computing. There are interesting tools and systems which can be used in support of teaching computing, especially embedded systems, e.g. Lego MindStorms31 ®, which can communicate the interest and excitement of developing embedded systems. 27. In many sectors there is an ageing workforce, and it is quite common to retain recent retirees on a contract basis to cover for lost knowledge and skills. In some sectors, e.g. the nuclear industry, this is a severe problem as there has been limited engineering activity for the last decade. 28. Generally there is a poor gender balance in computing, with less than 15% of students being female. This imbalance is also seen in industry. There are

28 http://www.datum-electronics.co.uk/ 29 http://www.siliconsensing.com/ 30 The author’s own University, which specialises in embedded systems, has over 90% positive destinations in 2007. 31 Lego kits which include sensors, motors, etc. and processors which can be programmed to control robots, etc. built with the kits.

many initiatives aimed at improving gender balance; in general computing is well-represented in such activities, but the situation is, if anything, slowly worsening, rather than improving32. 29. There is a severe mismatch between supply and demand of engineers specialising in embedded systems. This may be exacerbated by the concern over outsourcing; the short supply certainly makes outsourcing and “off- shoring” more attractive as it gives companies access to well-educated staff, particularly in Asia, at comparatively low cost. However, increased levels of “off-shoring” have the potential to damage the UK’s competitiveness.

The importance of engineering to R&D and the contribution of R&D to engineering. 30. Computing contributes to R&D as EDT is now a critical capability for most engineering design. For example, finite element analysis and computational fluid dynamics are used in many complex design problems, e.g. for aircraft and cars. 31. There is another sense in which computing, especially embedded systems, contributes to R&D in that instrumentation and measurement systems are crucial to the design of products. Companies such as Datum are leaders in measurement techniques applied in engineering R&D. 32. R&D is also crucial to engineering. For example, the success of the ARM processor is based on a long and continuing R&D activity both in-house and with Universities. Similarly, many of the SMEs, e.g. Praxis and Rapita, either work with Universities on research programmes, or are spin- offs from University research. 33. The links between R&D and engineering, particularly between Universities and companies (including spin-offs) is crucial to wealth creation in the UK.

The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering. 34. We address each of these constituencies in turn. 35. Industry. Industry already does much to assist in the formation and development of careers in Engineering both with their own workforces and, for example, working with Universities in support of teaching. Perhaps the most important additional activity which could be undertaken is to assist in “marketing” of careers in engineering to school pupils both in primary and secondary education to increase the flow of students to Universities. 36. Universities. Many Universities offer effective and appropriate education at undergraduate and postgraduate level, providing the skills needed for entry into the profession. The Universities’ biggest problems are in recruitment of suitable students, and many are actively engaged in

32 Based on informal observations of applications to University computing courses.

outreach activities to seek to increase student enrolment in computing. However this is a National (and international) problem, and not one that individual Universities can solve by themselves. 37. Professional Bodies. Professional bodies such as the British Computer Society and the Institution of Engineering and Technology accredit degrees and offer flexible routes to professional recognition. Their role in formation and development of engineers has, historically, been effective. However, as technology is now moving so fast, it seems appropriate that they should move to a scheme of periodic re-evaluation of professional standing (e.g. Chartered Engineer status) to ensure that professional qualifications remain of an appropriately high standard. The professional bodies also assist in marketing of engineering to schools and school pupils; this is vital given the very difficult situation in the UK (and elsewhere in Europe and in North America) with recruitment to engineering courses at Universities. 38. Government. Government needs to take urgent and fundamental action to counteract the decline in the proportion of pupils studying mathematics and science in schools, and to reverse the decline in the intellectual content of such courses. A more radical option should be considered; that of providing a technical computing GCSE and A level to supplement the teaching of “uses of computers” in schools. We recognise that there would be difficulty in putting on such courses without substantial recruitment into schools from the IT profession; however we find it hard to see how the decline in applications to study computing at University can be halted unless pupils are exposed to the excitement and challenge of computing – as it is taught in University and used professionally – to counteract the tedious and repetitious experience of computers which is now commonplace in schools. 39. A subsidiary area for Government attention is in the area of costing of research in Universities. Whilst it is essential that Universities cover their costs, the introduction of full economic costing (FEC) has made research in Universities very expensive, with a negative impact on collaborative research. For example, Rolls-Royce has opened seven UTCs in the past three years and all bar two have been overseas where research costs are lower and government support for industrial investment in University research is more favourable. Action is needed to make it more cost- effective for industry to work with UK Universities33 if the long-standing and effective collaboration is not to be eroded to the detriment of skills in the UK. 40. Unions. No evidence offered. 41. Others. The sector skills council for computing, e-Skills, has put a lot of emphasis on computing courses for IT applications, and has provided funding to set up specially tailored University degrees. Whilst we recognise the need for graduates with these skills, it is desirable that e- Skills also recognises and supports the skills needed for development and

33 Also, Universities need to understand that FEC assesses costs, and does not determine price.

assessment of embedded systems, given their importance to the UK and the UK’s relatively strong position in this field. 42. The most urgent need is for action which will increase the flow of sufficiently capable students into computing courses, to reduce the imbalance between the needs of industry and the output of University courses. This requires work on promoting courses by all stakeholders. The introduction of a more technical computing curriculum in schools is a more radical proposal; however it might be the only way of stopping the continuing decline of applications to computing in Universities.

Case Studies 43. UKCRC welcomes the committee’s choice of Nuclear Engineering as one of the first two case studies, because of the importance of the (development of the) next generation of civil nuclear power plant to the security of UK energy supply. We also note the critical role of ECS and software in the control and protection of nuclear power plant. The skills base in the nuclear industry is severely eroded due to the long period of time since the last generation of civil nuclear power plant were constructed; almost all of those who were involved in, say, the Sizewell B programme, at a senior level, have now retired and there is no obvious “new generation” to replace them. 44. There may also be value in having a case study in computing, or IT, and its impact on engineering. The Royal Academy of Engineering is already running a study entitled “the changing face of information technology, and the implications for the future competitiveness of UK Industry and the UK economy”. It may be cost-effective for the IUS Select Committee to draw on this study to provide a case study of the role of IT in engineering.

Observations 45. As befits an Inquiry on engineering, the evidence presented has focused on embedded computers which are key elements of almost all modern engineered systems. However, computers are at the core of much of UK business and many government services. For example it is crucial to the functioning of the financial sector, the telecommunications industry and (electronic) games, in which the UK has a major strength, and to the operation of Government Departments. The engineering discipline – software engineering – which is aimed at the effective delivery and sustainment of such systems is a key contributor to the UK’s continuing success. 46. UKCRC would be pleased to provide additional evidence, orally or in writing, on any of the points mentioned above.

February 2008

Memorandum 3

Submission from the Environment Agency

1 SUMMARY

1.1 The Environment Agency welcomes the opportunity to contribute to this Inquiry. We are reliant upon the services of engineers to provide flood defence in England and Wales. We employ mainly civil engineers, but also electrical, mechanical and specialist engineers, both directly and through consultants and contractors.

1.2 Our need for engineers and engineering services is forecast to grow in response to increased flooding, development pressures, long-term climate change effects and the recent announcement of extra funding by the Government.

1.3 Following the floods of autumn 2000 an independent review of the technical approaches to flood risk management in England and Wales by the President of the Institution of Civil Engineers (ICE) highlighted the skills shortage within the Industry.

1.4 Progress has been made within the Environment Agency. We have established a successful River and Coastal Engineering Foundation Degree and provide a structured development Programme for graduate engineers. Nevertheless we are facing increased difficulties in recruiting and retaining suitably skilled staff. This was recognised in the Environment, Food and Rural Affairs Select Committee Report published May 2006 and in our most recent evidence to the EFRA Committee on its inquiry into the summer floods of 2007.

1.5 We are concerned that a continued shortage of engineers within both public and private sectors could affect the necessary improvements and operation of the nation’s essential infrastructure, and flood risk management assets in particular.

1.6 We believe that our concerns and experience, including the reviews and subsequent actions, may be of interest and value to the Committee. We suggest that this might form the basis for a further case study and would be pleased to submit further evidence on this matter.

2 THE ENVIRONMENT AGENCY

2.1 The Environment Agency was set up under the Environment Act 1995 and is the leading public body for protecting and improving the environment in England and Wales. Our job is to make sure that air, land and water are looked after by everyone in today’s society, so that tomorrow’s generations inherit a cleaner, healthier world. We employ around 12,000 people and a budget of about a £1 billion.

2.2 One of our roles is to protect people, property and the environment from flooding in accordance with (for England) overall policy and funding agreed with Defra. Planned investment by Defra on flood and coastal risk management is over £600m for 2008/09 and is set to rise to £800m in 2010/11.

2.3 Our work includes the provision, maintenance and operation of inland and coastal flood defences, which range from simple flood-banks to the Thames tidal barrier. We

are reliant upon the services of engineers within the Environment Agency, and also the consultant and contracting industries that we employ, to deliver this service.

3 INFORMATION FOR THE COMMITTEE

3.1 Recent flooding, development pressures and the future effects of climate change are increasing the need for investment in Flood Risk and Coastal Erosion Management. The floods of autumn 2000 prompted the Minister for Flood Management within the Department for Environment, Food and Rural Affairs (Defra) to invite the President of the Institution of Civil Engineers (ICE) to carry out an independent review of the technical approaches to flood risk management in England and Wales.

3.2 The ICE “Learning to Live with Rivers” report dated November 2001 highlighted a skills shortage within the industry. This prompted a more in-depth report by an ICE Task Team on “Engineering Skills for Flood Risk Management” dated October 2004. The report examined the evidence of a skills shortage in flood and coastal defence and explored possible causes so that suitable remedial measures could be implemented. This revealed a perceived public sector shortage of about 10% today (2004) with a forecast shortfall of 20% in five years time (2009). The private sector was expected to follow, although to lag due to its ability to provide more flexible and competitive rewards. The shortage is expected to get worse due to declining numbers of entrants and a higher than average retirement rate due to the demographics of presently employed chartered engineers experienced in civil engineering.

3.3 Contributory factors for the declining number of entrants were identified to include: an inability of the relevant professions to excite secondary school children to opt for careers in science, engineering and technology in favour of other career opportunities in the arts, humanities, media etc; a perception that science and mathematics based subjects are more difficult than other options; and a difficulty in recruiting a sufficient number of high calibre teachers who can excite pupils in these subjects and advise enthusiastically the wide range of career opportunities awaiting those who are suitably skilled.

3.4 We have developed a Foundation Degree in River and Coastal Engineering with the University of the West of England (UWE), Bristol. This training provides a mix of block-release learning at the University, distance coursework and vocational experience over a two-year period. Most of the trainees have subsequently been employed by the Environment Agency.

3.5 Successful Foundation Degree graduates are able to continue their studies, under a similar arrangement, to achieve a Batchelor of Science degree which is recognised by the professional Institutions.

3.6 The Environment Agency has also introduced a Graduate Training Programme targeted at Masters of Engineering graduates. These are provided with the necessary experience to meet the Engineering Institution requirements for professional review. The supply of such graduates is limited and we have not yet been able to meet our annual needs, given the highly competitive market.

March 2008

Memorandum 4

Submission from Dr David Birdsall

SUMMARY: Shortcomings in degree-based engineering education are mentioned, occasioned since the fall of the traditional Apprenticeship Scheme, and the 'replacement' of such shortcomings is encouraged.

1. It is not my intention to call witnesses or to arrange any spoken support for this submission; thus this paper is to stand on its own. 2. Through my University connections since the late '60s I have seen great changes in the capacities of students. Items here are a consequence of those observations. 3. It was about the middle of the '80s when Mrs. Thatcher's government withdrew the subsidy to Training Departments of industries, and thus began the demise of the apprenticeship schemes for which Britain had been famed. I saw the consequences as firms reduced space, machinery and people devoted to such a scheme (not necessarily withdrawn in that order). The institution of NVQs (or similar) does not replace the losses clarified here, or at least not for the people likely to be involved. 4. One of the obvious consequences of having a much reduced Training Department available was the paucity of places to which school-'graduates' could apply for the traditional 'sandwich scheme' which, in many cases, allowed a year's experience PRIOR to joining a degree programme. Whereas my earlier years at The University saw the majority of students NOT arriving direct from school, my experience in the latter years was that the majority DID come direct from school – and much the worse for that lack of practical content in their full education. 5. Whilst it was not the fault of the students, there were obvious shortcomings in knowledge that showed quite clearly e.g. at least: a. graphics skills, b. familiarity with standard tools and their use, as well as 'industrial vocabulary', c. standard hardware, and manufacture/assembly techniques for “the products” whatever the industry. In most cases, there were limitations on which 'gaps' a university could fill. 6. As outlined below, one of the early requirements for rectifying this shortcoming would be to establish a 'best list' of “gaps” which now exist. I DO NOT support a move back to the days of 'hacksaw, file and drill' during the earliest period away from school, so I am eager to involve young people in establishing this list. (I could make recommendations for the list, but prefer to remain silent initially.)

7. Ultimately, I am pressing for a period in industry for all graduates (perhaps PRIOR to gaining a degree), and there is a need to look at the training schemes (in industry) that have arisen in the past twenty years so that overlaps are small; existing and new schemes could be made to 'dovetail' beneficially. 8. Many industrial schemes are aimed at one or both of the following: a. preparation for the firm's own tasks – closely related to various jobs/products that will become central at the end of Training; b. preparation of the individual for application to “registration” (C.Eng.?). 9. My hope is that something akin to the practicalities of the former “sandwich scheme” can be devised, perhaps via a 'placement year' just prior to the final year of the ubiquitous M.Eng., but there can be other options. There is need for re-defining the 'gaps' to be filled during this year, but (cf. No. 7) there may be opportunities for inclusion of certain 'modules' which already exist in a firm's Training repertoire (cf. No. 8). 10. I now present features of a potential scheme, perhaps clarifying some of the above. I am 'attaching' this to the aerospace industry, as I understand this industry best. a. The shortcomings (No.4&5 above) need to be addressed, let alone any practical use of knowledge/skills achieved in college by the time of departure towards the placement. A definition of shortcomings (“gaps”) will require some care: I recommend use of persons in the “Young Members Board” (YMB) of The Royal Aeronautical Society – because they would recently have been in a position to sense shortcomings. There would follow some considerable effort to weave these into part of the placement – along with modules which the firm deemed suitable for the placement. b. Selection of 'participating firms' will not be a short task, but again the YMB could contribute much effort while assisted by the contacts of the SBAC (Society of British Aerospace Companies). It should NOT be the case that only UK firms are listed; the opportunity should be taken to enlist support from at least EU firms. c. There will be a need for the administration of 'opportunities' – probably via a YMB website. Students would apply; opportunities would be offered to them. There are other facets of any such scheme which I shall not include here, but one of my hopes has been that if any provision for 'filling the gaps' were made, a 'working scheme' should be arranged within the aerospace colleges (and industries) before any direct subsidy were solicited from 'the government'. At that time, and with accumulated knowledge of needs, the scheme could be widened to include much more of the whole spectrum of engineering disciplines.

February 2008

Memorandum 5

Submission from Clive Bone Summary The description ‘engineer’ needs an element of protection to remove the confusion that surrounds the role of the engineer and to encourage recruitment. Further, innovation is not just about technology but also how things are managed. Research is needed to both assess and see how best to reverse the decline of productivity management capability in the economy as a whole. Introduction 1. This submission is based on a varied professional career spanning over 40 years. This includes manufacturing, R&D, local government and management consultancy – with patents granted, books published and innumerable articles on management topics. In fact my career actually began in 1958 as an apprentice toolmaker. I work part-time and have, almost, retired. I have also been a governor of a community school with special science status for several years. 2. This submission addresses two elements of the terms of reference. It is not an academic submission but an individual submission based views formed over many years yet which may chime with the evidence of academics and research bodies. The terms of reference addressed are: • The role of engineering and engineers in UK society

• The role of engineering and engineers in UK’s innovation drive

The role of engineering and engineers in UK society 3. The perceived role of engineering and engineers seems little changed over the past 50 years in that this remains confused. Indeed, if anything the problem has worsened with the relative demise of our manufacturing base. Part of this problem relates to the confused use of the term ‘engineer’. 4. Over a generation ago this did not pose quite the problem it does today. Whereas industry’s toolmakers, fitters, turners and millers might loosely call themselves engineers for historic reason there was recognition of ‘institution membership’ and those seeking this through the old-style ONC and HNC/D route or institution examinations were held in some esteem. 5. Today we live in a less industrially aware society where exhaust fitters and chimney sweeps can call themselves ‘engineers’ just as do plumbers and gas installers. Such loose usage hardly helps the status of plumbers let alone qualified engineers. Engineer is even a popular choice of description by many of those brought before the magistrates’ courts. The solution recommended is to: • Modify trade description and contract of employment legislation to restrict ‘engineer’ to chartered and incorporated engineers and those that hold qualifications that meet the requirements for such status

6. This partial solution avoids the complexities of a Registration Act and would change attitudes as blatant misuse ceased – nor need it affect usage by the military. It would, however, send the right signals to schools and increase the number, and the quality, of those seeking engineering as a career. 7. A recent Downing Street petition on this topic was rejected in respect of some sort of statutory registration. This rejection seemed a little perfunctory with no real reason given save that it was thought hard to do. Yet other English speaking countries have given ‘engineer’ a degree of protection and this should be revisited. It is not for the sake of engineering and engineers that this needs to be done but for the benefit of the wider UK economy. 8. However, innovation is not just about technology and the standing of engineers. It is also about the ability to manage, which brings us to the role of engineering and engineers in the UK’s innovation drive. The role of engineering and engineers in UK’s innovation drive 9. The Innovation, Universities and Skills Committee will be aware that modern operational management topics were almost entirely invented by the industrial wing of the engineering profession – along with statisticians and social scientists working alongside them in industry. 10. This began with industrial engineers such as F W Taylor, Frank and Lillian Gilbreth and Henry Gantt, followed in the 1920s by W Edwards Deming and Joe Juran in respect of statistical process control and by Elton Mayo, a social scientist, of ‘Hawthorne Effect’ fame. The post-war era saw the value analysis work of another engineer Lawrence Miles who, along with Deming and Juran, helped underpin Japan’s quality drive and today’s lean thinking. 11. Over a generation ago many organisations had work-study and O&M capability but relatively few made the transition to modern lean practices. Thus we see the growth of command and control management alongside Whitehall’s target culture and falling productivity in the public sector. The failure of the ‘best value’ policy is but one example of how sound policy can be undermined by a lack of basic skills. Hence we see salami cuts in the public sector instead of a drive for better value. 12. Based on the innumerable management workshops and seminars I have led over the years I see evidence of a widening gap between best practice and typical practice in respect of productivity management. Even where individual managers are keen to innovate this is difficult in the climate of unawareness found in all too many organisations. • Often where attempts are made to adopt modern approaches – total quality management, best value, lean, etc – it is the language that is adopted and not the substance 13. With the relative growth of the service economy and the decline of industry so management training has skewed to business studies and transaction and away from productivity. This undermines innovation in the second

division of manufacturing and hinders the transfer of best practice to those sectors that lack a tradition of operations management. However: • Over a generation ago the work of the then British Productivity Council and the then Ministry of Technology often transferred to other sectors of the economy even though it was aimed at industry 14. Without sustained long-term effort on the part of Government the lack of nuts and bolts skills in terms of productivity management has passed the point of no return in the public sector and much of the private. Unawareness is such that the problem is now beyond a market solution. Yet there is little evidence that Whitehall and Westminster are aware that there is even a problem here. Accordingly, it is recommended that research be commissioned to ascertain: • The current availability of the operational management skills needed to improve productivity and innovation in industry, commerce and the public sector and how they are best encouraged

February 2008

Memorandum 6

Submission from Prof Michael J Kelly

1 I make this submission on a personal basis, having a background of service in all of academia, private industry and a now government department. I find these different backgrounds constantly providing cross-reinforcing ideas for innovation and improvement. I would urge the mix of experience on my colleagues! I am Prince Philip Professor of Technology in the University of Cambridge, having previously been Head of the School of Electronics, Computing and Mathematics at the University of Surrey. During 1981-1992 I was a member of the research staff at the GEC Hirst Research Laboratory, where my team invented and developed one, and also developed a second, family of new generation microwave devices, both still in production with e2V Technologies in Lincoln, forming, among other things, the basis of automobile radar. Note that I was educated as a physicist, and transformed myself into a chartered engineer during my time in industry. During 2003-5 inclusive, I was Cambridge Director of the Cambridge-MIT Institute (CMI), to which I refer below. Since July 2006, I have been (part-time) Chief Scientific Adviser to the Department for Communities and Local Government, and also a Non-executive Director of the Laird Group plc, the UK’s latest billion pound electronics company. I am a Fellow of the Institute of Physics, and of the Institution of Engineering and Technology. I have been elected a Fellow of both the Royal Society and the Royal Academy of Engineering, and have been award prizes from both.

2 I want to make just five points around the third, fourth and fifth of the terms of reference of the committee’s inquiry.

3 Formation: The education of professional and consulting engineers internationally faces a crisis. In most branches of science and engineering, 80% of all the publications that form the lore of good practice have been published since the mid-1980s. This explosion of knowledge has made it simply impossible to teach the known subject with anything like the degree of coverage that was possible in the 1960s, when I was an undergraduate. Of the whole mobile telephony sector now, only the basic laws of electromagnetism go back beyond the 1970s: the chip and display technologies, all the coding, protocols and systems level aspects, are post 1975. Over the last two decades the role of practical experiments (for scientists) and projects (for engineers) has been under severe pressure in the undergraduate curriculum, with the timetable and subsequent credits for this work giving way to ever more theory. I commend the international CDIO (conceive-design-implement- operate – see www.cdio.org) project, which is trying to restore to the centre of engineering formation these key skills used daily by a practicing engineer. Whether and how a modern engineer knows the details of the second law of thermodynamics, Shannon’s coding theorem or the laws of electromagnetism, have to be fitted into and round a programme that is skill-centric. Many would consider this balance heretical, but I think it is the key to the 21st century. Only the basic principles will be taught during formation, and the details garnered from the web or elsewhere as and when needed: we will need to teach the skills necessary to work in this way. CDIO has several UK universities participating. It started with a small group of universities including MIT, which was the leader of the move towards engineering science from

51 and during the 1960s, and which is now leading the next revolution in the formation of engineers and engineering leaders.

4 Academic Research: Having been a panel member for Electrical Engineering in the 2002 Research Assessment Exercise (RAE), I am too aware of the tension in university research between making a real impact as an engineer and doing well in the RAE. Four papers in (sometimes abstruse) journals is only one part of the contribution of academic research in engineering. An International Panel convened by EPSRC and the Royal Academy of Engineering in 2004 looked at the state of engineering research in UK universities. There were two main findings, namely (i) strength in the traditional core disciplines, but real weakness in the emerging inter- disciplines, and (ii) a noticeable unconcern by many academic engineers of the practical applications of their research: both can be laid fairly at the door of the RAE, and practices it engenders which are reinforced by university leaders. Until academics at UK universities see and are convinced that working in new inter- disciplines and helping local companies, including start-ups, and advising local and central government are equally rewarded as the basic papers, the UK will continue to have a suboptimal university research environment in engineering. See: http://www.epsrc.ac.uk/CMSWeb/Downloads/Publications/Other/InternationalReviewReportEng.pdf

5 Integrated Research: There is one very welcome trend in UK research circles which will bring engineering to centre stage, namely the move, initiated from Treasury, to look at grand challenges facing the UK, and to corral large sums of research money accordingly, as in the areas of future energy technology and living with environmental change. It will be multidisciplinary teams dealing with the hard and social sciences, the economics, law and engineering in an integrated manner that will get funded. Under the pressure of delivering substantial practical solutions to these major topics, the role of engineering will come to the fore. [Within CMI (see above) a very successful project was the Silent Aircraft Initiative, aiming to design an aeroplane taking 97% of the sound energy out of a landing aircraft. In addition to the engineering of future aircraft, there were shorter term pay-offs in airport operations today and modifications to existing aircraft to reduce noise now. The main project also had elements of looking at the total cost of noise (including that of land values around airports), and time-permitting would have considered the psychology of passengers descending very steeply to land.] One should expect such practical and integrated engineering-led solutions to our big challenges, and a culture change within academia to achieve them.

6 End-user Inspired Engineering Research: The single most important lesson for me out of the CMI experience was an appreciation of the sophistication of some members of the MIT faculty in the way they engage with the eventual end-users of their research, even at the stage of developing their own internal research agenda. A certain amount of humility is involved, but it pays handsome dividends. Typical of UK applied researchers, I would approach local companies to get a sense of where my research might best be targeted. MIT engineering faculty will convene meetings of practitioners from around the world and listen to them describe their problems and projects in the field, as encountered yesterday and today, being prepared for tomorrow, and also those dreaded problems that might come across the horizon without any known solution. The faculty group listens and asks probing questions, and then goes away and together identifies the deep underlying intellectual challenges

52 that they will attempt to solve to make a big difference in the real world. By articulating these problems and the impact of likely solutions, international collaborators are queuing up to join in even before any research contract is signed. There is awareness that real world problems can be deeply intellectually challenging and the solutions deeply satisfying as they are deployed in earnest. It is the antithesis of ‘blue-sky’ research. At the Department of Communities and Local Government, I am trying to get members of Local Authorities to be more articulate in expressing what kind of research results they would like to see emerging from UK universities. Academics second guess (often rightly) what is needed and they then try to sell their results to not always willing recipients. The MIT process cuts right through all that, and develops anticipating users as an integral part of their process.

7 Engineering in the Civil Service: By contrast to the standard of economic and legal expertise within the Civil Service, I am convinced that the scientific and engineering understanding of key policy issues is not as high as it could or should be, and that flaws in delivery (e.g. large IT infrastructure projects) can be attributed in part to the vincible ignorance of principles of engineering and engineering project management by those conceiving policy options and defining delivery plans. In my own Department there is no-one with any practical building engineering experience on the team considering how new and existing buildings will play their full role in meeting the target, soon to be set in law, of a 60% (let alone a putative 80%) reduction of carbon emissions across the economy. By examining the sheer scale of the engineering challenges, my personal opinion is that such overall targets will only be achieved with a ‘war mentality’ and that the conventional markets will be too slow to work. From the perspective of a career in electronics research, I appreciate that there are practical limits to the rate of technology evolution, even with ‘unlimited’ resources, and we should not presume on as yet uninvented technologies to save the planet. Most people realise that aircraft will not be free of fossil fuels by 2050: what is the engineering basis for confidence that carbon sequestration (as an example) will be deployed in time with sufficient scale to play a sizable role? Could it be that the energy cost of sequestration of fossil fuels (and particularly gas and oil) makes them too precious to use for energy, as opposed to industrial feedstock? The Royal Academy of Engineering has a real role here in providing an independent and authoritative engineering validation of future policies options.

March 2008

Memorandum 7

Submission from Barry Shears, Greenpower

In 1999 I was on contract to Sussex Enterprise to examine and report in detail on the needs of the Advanced Engineering Business Sector in the County of Sussex. After six months of meetings with Chief Executives of public companies in the aerospace and medical equipment engineering sectors as well as scores of smaller engineering companies offering precision engineering support, I submitted my report to Sussex Enterprise. The nub of this was that whereas the companies had all grown and prospered in Sussex in the last thirty years many were now at a crossroads – ‘to go’ or ‘to stay’.

The single common challenge facing them and causing the decision to be on the agenda was simply staff shortages. With the average employee age in most of the smaller companies fast approaching fifty-five with no sign of younger staff becoming available, and the larger companies having to relocate most of their skilled staff into one of the more expensive parts of the UK, things did not look good for the future.

Amongst a number of proposals was one that I want to focus on. In order to try to ‘fire-up’ interest in science in general and engineering in particular I put forward an idea of a Countywide competition to introduce basic ‘hands-on’ engineering to secondary school pupils in their pre-GCSE years. With the help of a local electric motor manufacturer and Lucas batteries we were able to organise a six-hour electric car race at Goodwood Motor Racing circuit. Twenty school took up the challenge and the race was an outstanding success putting to shame the large number of critics who said that ‘teachers did not have the time’ and ‘it would prove too much for the pupils’. By using the excellent services of the regional SATRO and their Neighbourhood Engineers and later the Campaign to Promote Engineering the event carried on into the new century. Now, ten years later we have over three hundred schools at both primary and secondary level taking part in a programme of over twenty races held throughout the UK. We have helped many hundreds of pupils to decide on engineering and technology as careers including a large percentage of girls.

2008 will se our largest year yet in terms of competitors and events.

By using major motor sport venues and running the races in a professional manner we have created an excitement and scope for all ages and types of pupils to participate.

However, despite increasing our ability to raise our own funding through sale of kit cars and entry fees, we are still dependent on sponsorship to balance the books. We have in the last ten years witnessed a continuing change in the support available from government both in form and amount. It has proved costly and nearly ruinous to try and keep pace with the change in government

54 policy. SATROSs and Education Business Partnerships were working well as were Neighbourhood Engineers in supporting us. The Campaign to Promote Engineering was vital to us in getting going nationally. Then one by one these organisations were changed, superseded, or abandoned! In all cases the replacements were inferior and we have succeeded despite these changes rather than because of them.

It seems to me that too much effort is put in by government in constantly setting up new initiatives in co-ordinating and organising the support mechanisms for the education/industry link rather than letting things settle and become productive. It takes time to do anything with schools and education. There are no quick fixes!

After ten years we are now able to quantify what we have achieved through actually seeing the results. Without the total commitment of my whole family, my small staff and our voluntary helpers we would have given up years ago in the face of constant government led vacillation in policy towards the critical area of promotion of engineering in schools.

I agree that at times there have appeared to be too many initiatives floating around, most short in both content and long term commitment. Too many have simply been ‘window dressing’ in delivering simplistic messages through exhibitions and presentations and claiming huge ‘impacts’. Influencing takes many years and continual re-enforcing impacts.

We have been judged and approved by a number of organisations, all claiming to be promoting engineering but actually doing little more than duplication each others efforts without actually ever getting remotely near to the target pupils. The phrase ‘One Stop Shop’ comes up repeatedly as groups and organisations appear with the sole purpose of once again checking out all of the initiatives available and grading them to avoid teachers ‘getting confused’! Teachers are actually getting more and more confused as this area of information is growing faster than the projects available is.

In our case we can grow as fast as funds allow us. We are delivering the goods in an increasingly exciting and effective way. However we need financial help, as do other initiatives like us. We do not need more groups of people intercepting the available funds who do no more than advise and report.

Fancy brochures, champagne launches of new government initiatives, and speeches from top industrialists and ministers to groups of their peers will not solve the problem. The future engineers and technicians that this country needs are out there but they have to b approached through involvement and example. Mature career engineers working in schools with dedicated teachers working together to deliver a working electric racing car that will race on a full motor racing circuit does the job. With 29% of all competitors girls and a total mix of ages and types of schools Greenpower projects work. However this is our last year of guaranteed government funding through the Learning Grid (which superseded the CPE) and we receive nothing directly from Education

55 sources outside of entry fees from the participating schools. The Learning Grid is however not a Government entity any longer.

Our future is therefore in doubt unless industry or private benefactors can be found to help us achieve our objectives of involving every school in the country.

Our position is typical of many other programmes aimed at promoting engineering in schools, yet we are the activities that actually are used to justify the existence of most of the parasitical groups that live off our success. It is the likes of us that actually deliver the numbers for the SETNET outlets and the like. Let the funding that is available get to where it is needed, stop the current situation where most of it is bled off into cul-de-sacs and self-serving co-ordinating bodies who achieve very little other than ‘ticking boxes’!

March 2008

Memorandum 8

Submission from the Smallpeice Trust

Executive Summary

The Smallpeice Trust is an independent educational charity that promotes Engineering, Design, Manufacturing and Technology as a career to young people. We believe that engaging students in Engineering, Design, Manufacturing, and Technology is a critical factor in creating tomorrow's workforce for the knowledge economy and enhancing the prosperity and the wellbeing of the nation. Our evidence relates to the provision of public funding for the promotion of Engineering and careers in Engineering directly to students. Most public funding for the promotion of Engineering appears to be allocated to institutions and other organisations who act indirectly rather than directly. Since Engineering is so important for the future prosperity and wellbeing of the nation we feel that consideration should be given to greater support from the public purse for organisations whose exclusive mission it is to promote Engineering and careers in Engineering delivering influence directly to students and their teachers. These organisations already achieve a great deal by way of promoting careers in Engineering but could do so much more with modest additional support.

Submission

1. The Smallpeice Trust (www.smallpeicetrust.org.uk) is an independent educational charity that promotes Engineering, Design, Manufacturing and Technology as a career to young people. We believe that engaging students in Engineering, Design, Manufacturing, and Technology is a critical factor in creating tomorrow's workforce for the knowledge economy and enhancing the prosperity and the wellbeing of the nation.

2. Our programme for introducing young people to Engineering Technology comprises an annual series of thirty two 4-day residential courses from Year 9 (age 13/14) to Year 12 (age 16/17) and STEM enrichment activity in schools. Smallpeice courses form a major part of the Royal Academy of Engineering Best programme and the London Engineering (widening participation) Project. Residential courses are subsidised financially by the Trust at around the 80% level and our annual budget is approximately £1.5M. Teacher CPD in Engineering is also delivered to over 50 professionals a year. (STEM = Science, Technology, Engineering, and Mathematics).

3. Smallpeice activities are showing remarkable growth; by the end of FY 2007/08 nearly 8,500 students will have attended Smallpeice residential courses and STEM enhancement events in the year compared with 3,318 in FY 2005/06. Over the past seven years we have expanded by a factor of nearly 20.

4. The key to our success in introducing young people to engineering has been to work in partnership with industry to ensure that students have real exposure to solving real-life engineering problems. There is a strong ‘design and make’ element to our courses. Students are encouraged to learn new skills from practical application of engineering to team-working, problem solving and creative thinking. Students are also encouraged to develop

further their interpersonal and social skills. Residential course students are given an early taste of university life. Nearly 40% of residential course students are girls, and this increases to 60% for Aimhigher and London Engineering Project widening participation residential courses.

5. Our evidence relates to the provision of public funding for the promotion of Engineering and careers in Engineering directly to students. Most public funding for the promotion of Engineering appears to be allocated to institutions and other organisations who act indirectly rather than directly, notable exceptions being the London Engineering Project (of which we are part) and the new 500 after-school Science and Engineering Clubs (of which Young Engineers, surprisingly, are not part).

6. Since Engineering is so important for the future prosperity and wellbeing of the nation we feel that consideration should be given to greater support from the public purse for organisations such as the Young Engineers ( www.youngeng.org), the Engineering Development Trust (www.etrust.org.uk), and the Smallpeice Trust, whose missions are exclusively to promote Engineering and careers in Engineering delivering influence directly to students and their teachers, rather than indirectly. These highly-efficient organisations, all part of the Royal Academy of Engineering Best Programme, already achieve a great deal by way of promoting careers in Engineering but could do so much more with modest additional support.

March 2008

Memorandum 9

Submission from Young Engineers

Summary

1.1 Engineering continues to have a relatively poor public image despite many absolutely brilliant UK led engineering projects and products.

1.2 In secondary schools, there is only limited understanding of modern engineering and no obvious public champion that students can ‘relate‐to’.

1.3 With such limited expertise, schools need all the help that they can get to promote engineering and associated opportunities and this needs a truly unified approach.

1.4 Where interventions are made, this must be of impeccable quality, appropriate, affordable and appealing. Stand alone interventions have very limited value.

1.5 A number of well placed and respected national charities currently seek to increase the understanding and awareness of engineering in schools and have great success but expansion is limited by funding and these organisations receive very limited and specific Government support. These schemes include: The Smallpeice Trust, the Engineering Development Trust and Young Engineers. Young Engineers schemes are founder members of the Royal Academy of Engineering’s BEST programme as well as the Learning Grid.

1.6 In particular, Young Engineers engages well over 125,000 primary and secondary school students each year but receives very limited Government support.

General

2.1 Young Engineers (www.youngeng.org) aim is to inspire young people to develop an interest in engineering, and, in doing so, recognise the importance and excitement of engineering as a future career. Established in 1984, Young Engineers is not‐for‐profit company and a registered UK charity that develops and supports a national network of extracurricular engineering clubs in both the primary and secondary sectors. The company also runs a number of major engineering challenges and competitions, including: the Young Engineer for Britain Competition, the Young Engineer Club of the Year Awards and the Annual Celebration of Engineering. Activities span the entire UK and as of Jan 2008, there were over 1,500 after school clubs affiliated to the Young Engineer Club Network.

Young Engineer Clubs

3.1 Participation in an after‐school Young Engineers club also helps to develop students' personal skills in communication, presentation, team working, numeracy

and literacy, thereby better preparing them for entry into the workforce. Above all, the programme is sufficiently flexible to meet the needs of all ability levels, making clubs suitable for those with learning difficulties and for the gifted and talented. It is designed to encourage girls as well as boys into this exciting career area and some 35% of current club members are female.

3.2 Types of Schools with Young Engineers Clubs

Key: 60% Secondary School (State Funded) 2% Primary School (Independent) 7% Secondary School (Independent) 7% Specialist Technology / Engineering College 2% Middle School 1% Other Specialist College 21% Primary School (State Funded)

3.3 Over 90% of clubs are based in state schools.

• The vast majority of after‐school Young Engineer Clubs are run by dedicated club leaders (normally teachers) on a voluntary basis. • The average number of students per active club is 18 • 87% of clubs meet on a weekly basis. • The majority of clubs meet in their D&T lab, Science lab or in the classroom • Most club sessions last for between one and a half and two hours. • On average, a student will remain in the club for 2 years.

3.4 Clubs use hands‐on problem solving activities to enthuse young people about engineering; the average individual activity or project lasts for one and a half school terms (15 weeks).

3.5 Young Engineers provides information to clubs on activities and competitions, but does not dictate what activities clubs should run, so allowing club leaders and club members to pursue activities that best match their interests. We do, however, strongly encourage clubs to run a variety of activities to give club members a broad experience, which reflects the diversity of skills used in the engineering industry.

Young Engineer for Britain Competition

4.1 The Young Engineer for Britain Competition is a major youth engineering event and highlight the innovation, enterprise and skill of our future workforce. Almost 500 entries were received in 2007 with Partick Burns (15) of Newry Co Down winning the title of Young Engineer for Britain 2007 for his project – Automatic Hazard System.

4.2 Students are able to nominate their own projects for one of the 12 regional events at which their efforts are then judged by panels of experienced engineers. These projects could be their GCSE or A Level (or equivalents) work, hobbies or projects undertaken at home or even something that has been developed as part of a club session.

4.3 Young Engineer finalists were also successful at the Intel International Science and Engineering Fair 2007 in Alburqueque, New Mexico where the two UK representatives won major awards. Of particular note was Andrew Nowell (Nottingham Grammar School and now Cambridge University) who won one of the top three awards – the Innovation Award and a prize of $15,000!

Other National Challenges

4.4 In addition to providing the Young Engineers Club Network and the Young Engineer for Britain Competition, Young Engineers is also provilidged to host and manage four well established national engineering challenges; these are:

• The Royal Navy Challenge (Secondary ) • The BAA Challenge (Secondary) • The Airbus Challenge (Primary and Secondary) • The K’Nex Challenge (Primary)

4.5 In 2006/7, over 93,000 primary school pupils across about 2,700 schools were involved in the Young Engineers K’Nex Challenge. The event was oversubscribed and continues to grow.

Other activities

5.1 In addition to having links and relationships with many current STEM providers, Young Engineers is also involved in the following strategic initiatives:

• The development of the National Science and Engineering Fair • The development and expansion of Science and Engineering Clubs

Young Engineers Goals

6.1 Every pupil has access to a Young Engineers club.

6.2 Increasing the range of challenges by developing the engineering content in majority interests such as: sport, entertainment and the media, space, transport, health and the environment.

6.3 Expanding involvement of industry to ensure full coverage of key engineering disciplines.

Recommendations:

7.1 Recognise that engineering is a strategic enabler for the UK and that more emphasis needs to be placed on the generation of suitable qualified individuals to meet future needs.

7.2 Set in train mechanisms for Government and the engineering industry to work together to deliver sufficient engineering human capital to meet these needs.

7.3 Drive Government backing (and funding) to support a number of high quality, high impact engineering interventions to encourage take‐up of engineering in schools, HE and FE.

7.4 Ensure that there is a range of opportunities to celebrate achievement in engineering at all levels including the creativity and innovation shown in schools.

7.5 Get better media backing for the promotion of engineering in schools.

7.6 Find an ‘engineering champion’ to be the modern face of engineering.

March 2008

Memorandum 10

Submission from the Royal Aeronautical Society

Engineering

Executive Summary

o Engineering is a vital element in the UK’s economic competitiveness. Aerospace is a major part of the UK’s engineering sector and is an important source and consumer of trained engineers and technicians. The engineering sector and aerospace in particular is one of the UK’s key sources and applications of research and development.

o However, there are problems in ensuring students of sufficient quality and with appropriate qualifications for different types of engineering employment enter the industry and stay in manufacturing; these include weakness at primary and secondary education levels, the structure of tertiary level courses and the provision of adequate careers guidance and practical advice for engineering students.

o Government, industry, academia and the professional bodies all have roles to play in improving the quality of engineering education, attracting and retaining skilled engineers and technicians. In particular, there is continuing need to improve public perceptions of engineers, engineering and of engineering’s vital role in the UK economy.

Introduction

1. The Royal Aeronautical Society (RAeS) is the Learned Society for the Aerospace and Aviation community. Based in London, it has a worldwide membership of over 19,000, with over 13,000 in the UK. Its Fellows and Members represent all levels of the aeronautical community both active and retired with around a half of these as professional engineers. The Society accredits University aerospace engineering courses to ensure they comply with the standards needed for Chartered Engineer status and provides support for Continuous Professional Development. It is licensed by the Engineering Council UK to approve applications for Chartered Engineers. The Society participates in several major international accords that establish the “tradeability” of engineering and technology degrees. These accords are assuming growing importance with employers as the globalisation of engineering products and services demands greater confidence in the skills and professionalism of the engineers involved. 2. The Society also supports post-graduate study with the award of a number of grants towards graduate study in aerospace engineering. It publishes the peer reviewed Aeronautical Journal and, through the National Aerospace Library in London and Farnborough, it directly promotes academic research and education in all aspects of aerospace and aviation.

3. The Society also works to promote understanding of aerospace engineering in schools – from primary to secondary - and colleges as well as provide support and advice to individuals seeking employment in the industry at all levels, including graduate, through the Society’s dedicated Careers Centre and active Young Members’ Board. Activities include publications aimed at primary-age children, events for Key Stage 2 pupils and for older students, and a

63 comprehensive careers service. The Society is especially active in linking students with prospective employers and giving practical advice. The Society is particularly keen to encourage women to take up careers in aerospace.

The importance of Engineers and Engineering to the UK

4. Engineers and engineering are fundamental and essential to the UK. Almost all aspects of the lives of those who live in UK are now critically dependent upon the delivery of engineering-based systems and services. There is an expectation that these are present, that, they work, and that their costs are either hidden or are declining relatively as commodities. However, over several decades government has paid lip service to the importance of engineering to the UK economy and society, tending to prefer in public policy the demands and requirements of the City, the financial community and the services sector broadly defined.

The importance of engineering in aerospace Research, Development and Production

5. Engineers and engineering is therefore vital to maintain the health and competitiveness of the UK’s world-class aerospace industry. Aerospace should be viewed as a collectivity of engineering-based industries, comprising inter alia structural engineering, propulsion, electrical and mechanical engineering, electronics, computing etc. For example, some eight technologies support Rolls-Royce’s core competence, including thermodynamics, aerodynamics, heat transfer, combustion, structures, materials’ manufacturing processes, instrumentation and controls. In turn, these elements draw upon a wide range of technologies and basic scientific principles, mainly but not exclusively from the physical and engineering disciplines.

6. It follows that most of its products - certainly the core ‘platforms’ and ‘sub systems’ of civil and military aircraft individually have great systemic complexity. As a result, aerospace also requires the multi-disciplinary skills of the systems engineer – an area still under- developed as a discipline in the UK. Moreover, as the distinction between manufacturing and services becomes less obvious, systems integration is emerging as the highest value capability in any production system, from designing the architecture to delivering the mix of goods and services, often in a close, long term relationship with the customer or end user.

7. Engineering skills and R&D activity also extends a long way down the aerospace supply chain from the major contractors such as Airbus UK, BAE SYSTEMS and Rolls-Royce, through the leading equipment companies such as General Electric (formally Smiths Aerospace), Goodrich and Cobham to relatively small companies building subsystems and components. Many have developed world-class technological capabilities and invest heavily in applied R&D. This trend is increasing as more technological and financial risk is transferred from prime contractor and OEM to the extended supply chain.

Engineering in Higher Education and perceptions of engineering in society

8. The number of all students - undergraduate, postgraduate study and research - has increased in the UK by 33% from 1996/7 to 2005/6 reaching just over 2.3 Million. However, in this period there was only 4% increase in the Engineering and Technology subject areas with a growing trend in non-UK students. By 2005/6 the proportion of UK domiciled enrolments was down to 75% of the total implying an actual decline of engineering graduates likely to enter the UK economy. There is also a worrying tendency for Universities to have to provide remedial teaching in mathematics and physics to ensure students are adequately prepared for their degree courses

9. These proportions are even more dramatic for postgraduate taught students where the UK domicile percentage is around only 20%. However aerospace engineering has defied the trend with a rise in enrolments of 89% over the period. It is not clear whether this is due to a growth in specific courses for aerospace were in the past students wanting to study this field had had to choose another related course. In absolute numbers there are around 22,000 undergraduate students enrolling for engineering in any given year but of these only 16,000are UK students. Of the total, 17% are female, compared to 55% for all subjects. 34

10. In 2000 the Department for Education and Employment stated that the demand for Engineers would rise by 2% per annum over the first decade of the new millennium. The fact that so far the supply is not keeping up with this demand is yielding reports that many employers do not expect to be able to fill their engineering vacancies this year. It is also clear that many engineering graduates do not choose to continue into engineering employment. It appears that although up to 80% of students appear to be intent on moving on to an engineering job possibly only just over 60% actually do so. This “loss” is even more marked amongst female graduates.35

11. The perception of engineering and engineers cannot be ignored in any consideration of the current scene. A recent Royal Academy of Engineering/ETB survey of public attitudes continued to show public confusion with people more likely to view engineering as building or fixing things rather than design, innovation or creativity. While younger people are most likely to have a limited understanding of engineering, the more they were shown what engineering was about and what it could do, the more positive their attitude became. 36

12. There are other possible reasons why many engineering graduates do proceed to careers in the engineering sector. For example, the Society’s experience of providing careers advice to students certainly hints of a lack of specialist careers advice available within University careers services; with some university careers advisors perhaps unaware of the wide range of opportunities available in engineering, particularly in aeronautical fields.

13. In addition, engineering students develop transferable skills which are highly sought after in other fields such as the Financial Services industry, namely the ability to deal with complex data, high levels of numeracy and analytical and problem-solving skills. Financial Services offer much higher starting salaries than other sectors, including engineering, and consequently many high-achieving engineering graduates are lured away from their specialist fields. This tendency may also increase in future as student debt increases due to increased tuition fees etc. More positively, engineering degrees do provide students with highly transferable skills to other sectors increasing their overall employability upon graduation.

14. However, the selection process for engineering graduate schemes is complex and often time-consuming for those in full-time study. Employers are not just looking for academic ability but a range of soft, ‘employability’ skills such as communication, team-working, leadership, creativity, cultural awareness, as well as work experience in the industry. It is vital therefore that engineering students are afforded opportunities to develop these skills and to prepare adequately for the recruitment process. Helping employers find ways to increase work experience opportunities is also essential so that engineering graduates are properly prepared for the workplace.

34 Universities UK Patterns of Higher Education in the UK-Seventh Report; Engineering Education vol 2, issue 1, 2007 “Engineering, more engineers- bridging the mathematics and careers advice gap.” 35 CRAC/TMP “How can we ensure that more science and engineering graduates become scientists and engineers?” March 2007. 36 Royal Academy of Engineering/ ETB “Public Attitudes to and Perceptions of Engineering and Engineers 2007.”

15. Some graduates have difficulty securing employment in engineering after graduation, despite being highly motivated to remain in engineering. Many engineering graduate schemes require candidates to have a 2:1 or better in their degree and/or a MEng/Masters higher degree. Some employers also refer back to graduates’ A Level results (or equivalent), with some graduates with 2:1/First class degrees unable to apply to schemes due to poor A Level/equivalent results. This reduces markedly the number of career opportunities available to those graduates achieving a 2:2, and unable to study up to Master’s level, even if this is for financial rather than academic reasons.

16. Competition is especially high for places on engineering graduate training schemes with the large aerospace manufacturers. However, given the large number of SMEs in the UK, particularly in aerospace, along with an increasing shortage of engineering technicians, graduates unable to enter graduate training schemes should be encouraged to fill suitable vacancies at technician level, particularly in the SME community. It is vital that enthusiastic graduate engineers are not missed out by the industry and SMEs may need some support for costs of recruitment.

17. Furthermore, increasing numbers of students on UK engineering degrees are from overseas, particularly non-EU countries, and aerospace in particular, with its strong links to defence, cannot easily employ such students in the UK after graduation for national security reasons, despite measures by the Home Office to allow international students to work in the UK for one year after graduation.

Aircraft maintenance and engineering technicians

18. As the number of apprenticeships decreased in recent years, universities have recognised the desire from many people for hands-on engineering opportunities. This has led to an increasing number of foundation degrees, and honours degrees in vocational areas such as aircraft maintenance. However, some companies have expressed concern that these courses are not giving students the necessary skills for careers in this sector, in particular the manual, ‘hand’ skills required, ability to use tools, work with sheet metals, composites, and to operate specialised machinery. Furthermore, graduates from these courses may have unrealistic employment expectations upon completion, expecting higher ‘graduate’ salaries than is the norm for this sector. However, given that significant numbers of licensed aircraft maintenance engineers are expected to retire over the next ten years, there will be a growing demand from airlines and aircraft maintenance providers for technicians at lower levels. Universities should be encouraged to develop curricula and courses that reflect this demand.

Primary and secondary education

19. Problems starts at school – where the removal of the more challenging parts of the Maths and Physics syllabi prevents the more able aspirant engineers gaining the most benefit from their years in education, and without sufficient stimulus that early in their decision making years, such students might well turn the more able towards other avenues – finance (more money) or medicine (more intellectual challenge and status) or law (all of these).

20. The response thus far to lower capability (in maths) has been the introduction of remedial maths in the first year of degree courses. In the context of the “gold standard” for higher level four-year courses, the output standard is being maintained. But for the conventional 3-year undergraduate course there is simply not the time to make good the deficiencies of new students. Moreover, increasing numbers of especially the newer universities are now beginning to offer Engineering with some other subject (Business Studies, a Language or Pilot (flying) Studies). The consequence of this is that to make room for the other subject material, engineering content is being stripped out with deleterious consequences.

21. The recent decision to re-introduce separate science options at GCSE is clearly welcome, but the Society is concerned that the continued shortage of specialist Physics teachers will render this nugatory. The Government should consider further measures to attract graduate engineers into teaching as well as experienced engineering professionals considering a change in career who can take their experiences into the classroom.

Final observations

22. Government has the central role of creating the environment in which industry can deliver world class and world size capabilities in which engineers and engineering can flourish and deliver value to the economy and society. Many of our universities are world class, and we must not seek to diminish the quality of either their research work (through lack of support to both blue skies research and more applied R&D) or undergraduate teaching (by erosion of the academic content of the entire pathway of our young people).

23. The professional bodies, such as the Royal Aeronautical should continue to analyze, prompt and apply pressure. Equally, they can provide a stimulating environment for the interchange of ideas and for the support of individuals as they develop their careers.

Recommendations

• (Industry and Government) should work more closely to ensure that trained engineers, particularly young graduates, use their skills in support of UK manufacturing. This should include a concerted campaign to raise the status of engineers and engineering, to encourage even further opportunities for post graduate training and through life skill enhancement (for example through linked sabbaticals), and to facilitate access to senior management career paths.

• Applications to engineering courses should be encouraged by the wider use of bursaries and other financial support such as the remittance or reduction of fees. Consideration should also be given to adopting similar inducements to encourage the study at A-level or equivalent of those subjects necessary that underpin the study of engineering at the tertiary level.

• The specific issue of gender imbalance in the engineering profession should be addressed by targeted information and careers advice to girls and women at all stages in their education.

• The Government should appoint a “Chief Engineer” to work alongside the Chief Scientist to raise the profile of engineering and to provide advice to ministers on engineering issues.

• Given the growing need from airlines and aircraft maintenance providers for technicians at lower levels, universities and colleges should be encouraged to develop curricula and courses that reflect this demand.

• Find ways to help SMEs with limited recruitment budgets link up to current students/graduates etc.

• Ensure that employers understand the new Engineering Diploma structure so that students who have it remain as attractive to employers as those with A Levels.

• Improve careers advice on engineering opportunities in schools, colleges and universities, acting to encourage links to relevant organisations that can help deliver more specialist advice.

• Support initiatives from organisations such as professional bodies to promote and accredit engineering qualifications and career pathways

March 2008

Memorandum 11

Submission from the United Kingdom Association of Professional Engineers (UKAPE)

EXECUTIVE SUMMARY

1. This submission concentrates on the role of the Chartered Engineer within Engineering and has been prepared by the United Kingdom Association of Professional Engineers (UKAPE). UKAPE is the section within Unite the Union which represents Professional Engineers.

2. The submission notes the extent to which modern society depends on the products of Engineering and on continuing innovation if it is to survive and prosper.

3. It deals with the qualifications required to become a Chartered Engineer in the UK and compares this with the position in continental Europe.

4. The submission briefly covers the statutory regulations and requirements as they currently exist, and points out their illogical and unsatisfactory nature.

5. In conclusion, the submission recommends an overall review of Engineering activities to determine where there should be statutory controls over the competence of the individuals involved and thereby ensure improvement to public safety. In particular it should examine where there is a requirement for a suitably qualified Chartered Engineer to actively participate in design processes and technical decisions. It should also look into possible mechanisms to achieve this.

1. Introduction

1.1 This submission has been prepared by the United Kingdom Association of Professional Engineers (UKAPE). UKAPE is a registered Trade Union (part of Unite) which represents employees within commerce, industry and the public service who fall within the category of Professional Engineer.

1.2 For the purpose of this submission, the definition employed by UKAPE of a Professional Engineer is:-

A person who has successfully undertaken a course of study to a minimum level of first degree or its equivalent, and has either been elected or is working towards election to Corporate Membership of a recognised Engineering Institution.

2. Value of Engineering in a Modern Developed Society

2.1 Engineering forms the bridge which converts the results of pure scientific research into the products and systems which society values. It then produces them and maintains them at a price people are prepared to pay.

2.2 The physical manufacturing process which is a part of the total engineering activity is a stabilising influence on a modern economy because it cannot be relocated at short notice to take advantage of a transient economic advantage.

2.3 Professional Engineers generate the innovation, the valuable Intellectual Property, on which the engineering activity is built. They are the high skill, high added-value part of the total activity. This is the part of engineering activity where a developed country is best able to compete in the global economy. Engineering is one of the major wealth generators which fund the health, education and other services which we all enjoy.

2.4 The way a modern society functions is totally dependent on the maintenance of these products of engineering. Its future prosperity is equally dependent on constant engineering innovation.

2.5 In spite of this the average salary of a Professional Engineer, based on data from the Office for National Statistics for 2006, is about half that of a similarly qualified Medical Practitioner and two thirds that of a solicitor. These relative salary levels influence the career choices made by our best young people, to the detriment of Engineering.

3. What is an Engineer?

3.1 In the United Kingdom, and in most of the English speaking world, the term “Engineer” has come to mean any person involved in the engineering field, particularly in the areas of manufacture or maintenance. In the United States it also means the driver of a railway locomotive.

3.2 This situation is unlikely to change in the foreseeable future, and as things stand at present, anybody from a gas fitter to a bridge designer can legitimately call themselves an engineer. As a consequence the general public see no distinction and this has a negative impact on the campaigns to encourage school leavers into the engineering profession.

3.3 Other professionals, for example Architects, Dentists and Veterinary Surgeons have their job title protected in law so that, for example, only a person suitably qualified in Architecture can legally be called an Architect. Others employed in this field and not suitably qualified are known as Architectural Technicians.

3.4 If Health followed the Engineering example everyone who ‘doctored’ people would be referred to as a doctor. This would include for example Consultants, GPs, Nurses, Health Visitors, Physiotherapists, Dentists, Opticians plus many others.

4. Qualifications to become a Professional (Chartered) Engineer.

4.1 Situation in Continental Europe

4.1.1 As far as the Engineering Profession is concerned, the position in continental Europe is similar to that described in paragraph 3.3 above. In other words, there are clear definitions regarding the level of qualification required to fulfil the style of address or job title that goes with it.

4.1.2 Taking the French model as a suitable example of the situation referred to in paragraph 3.3; there are three distinct levels of “Engineer”, which are:

Ingénieur which indicates a University-qualified Professional Engineer.

Technicien which indicates a tradesperson, for example an electrician or a plumber.

Dépanneur which is the term used for a repairer, for example a person who deals with photocopiers or washing machines.

In the UK all these are considered to be “Engineers”.

4.1.3 As UKAPE is only involved with Professional Engineers this submission deals only with the first category in paragraph 4.1.2, that of Ingénieur. Briefly, in order to achieve this, it is necessary to undertake a recognised course, normally of five years duration, leading either to a Masters Degree or a Diplôme d’Ingénieur, either of which allows the holder to use the title Ingénieur, which is a style of address protected in law.

4.2 Situation in the UK

4.2.1 The Engineering Council UK (ECUK) also gives three distinct qualifications, as follows:

Chartered Engineer (CEng) is similar to the French Ingénieur and requires an accredited integrated MEng degree or an accredited Bachelors degree with honours in engineering or technology, plus either an appropriate Masters degree accredited or approved by a Professional Engineering institution, or appropriate further learning to Masters level a second degree and Corporate Membership of an appropriate Engineering Institution.

Incorporated Engineer (IEng) requires an accredited Bachelors degree in engineering or technology or a Higher National Certificate or Diploma or a Foundation Degree in engineering or technology, plus appropriate further learning to degree level and Associate Membership of an Institution.

Engineer Technician (EngTech) is reserved for those with suitable qualifications such as a National Certificate or National Diploma in Engineering or Construction & the Built Environment and the City & Guilds Higher Professional Diploma in Engineering.

4.2.2 The above qualifications are protected in law, but the essential difference between the UK and the Continental system is that in the UK there are very few situations in which there is a legal requirement to appoint a Chartered Engineer. This means that complex engineering plant, e.g. chemical works, oil refineries, etc. can be designed and subsequently operated by anyone who claims to be competent, regardless of their true qualifications.

5. Need for and Current Status of Statutory Control

5.1 In the UK there are some specific areas where there is statutory regulation but it has grown up over many years and is applied in a piecemeal and illogical manner. For example, there is statutory control over the competence of the technician who installs a gas appliance (CORGI) but no similar control over the designer of the appliance, or the person who writes or approves the instructions to which the installer works. Similarly, there is statutory control over the technician who tests and approves a domestic wiring

installation, but no control over the design and manufacture of the appliances used with it.

5.2 There is a clear and immediate public safety issue with the installation of gas appliances and electrical wiring, but the regulation is only applied to the practical installation and not to the decisions leading to it.

5.3 There are other examples of public safety issues. In the rail industry, there was no statutory control over the competence of those who decided to introduce the harder and better wearing, but more brittle, rails which were the root cause of the Hatfield crash. The most recent major example is the explosion at the Buncefield depot that resulted from failures in the total system design which allowed a predictable sequence of events to lead to very serious consequences.

5.4 For many years there has been a legal requirement to arrange for annual inspections of pressure vessels (boilers, heat exchangers, etc) and lifting equipment (cranes, lifts, escalators, etc) by a “competent person”. The courts have accepted that the “competent person” can be an insurance company, but there is no requirement to establish the competence of the person undertaking the inspections, or of the person ultimately responsible for those inspectors within the company.

5.5 A further example of piecemeal legislation is the statutory requirement that dams above a certain capacity must be designed, inspected and supervised by specialist engineers licensed under the Reservoirs Act 1975. Legislation on dams was first introduced in 1930 in response to a number of dam failures that had resulted in loss of life where the original designer was unlikely to have had any formal qualifications.

5.6 It appears that the UK framework generally concentrates more on addressing the issues of liability and compensation after an accident rather than that of preventing the accident in the first place.

6. Conclusions and Recommendations

6.1 It is clear that this whole situation needs urgent review to establish a logical regulatory framework to replace the current piecemeal arrangements.

6.2 It is recommended that where decisions are taken which could affect the public or public safety, a Chartered Engineer should be part of the decision-making process.

6.3 It is further recommended that those Engineers be subject to regular review and should be legally required to undertake regular Continuing Professional Development studies, which at present are voluntary in the case of most Professional Institutions.

6.4 It is hoped that the results of this Review called for in 6.1 will also raise the profile of engineering and increase its attractiveness to the next generation.

March 2008

Memorandum 12

Submission from the National Grid

Executive Summary • National Grid recognises that approximately 40% of our workforce will reach retirement age over the next 10-15 years. We face a challenge to attract, recruit and retain engineering talent at the NVQ level and beyond, in order to ensure continuity of our business operations, and to facilitate future innovation in the engineering sector.

• Through National Grid’s e-futures strategy, we organise and sponsor educational initiatives to increase the number and diversity of young people interested in engineering careers. Over the past four years, well over 15,000 young people have taken part.

• We also support young engineers through organisations such as the Power Academy who organise a programme in partnership with the Institute of Engineering and Technology for the provision of financial support for students studying Electrical and Power Engineering degrees at university in order to develop future talent in the engineering sector.

• National Grid sponsors and supports the high voltage centre at the University of Manchester. The centre itself includes five laboratories, a postgraduate research area and lecture room. Through our sponsorship of the centre we work collaboratively with students to develop knowledge and innovation, as well as investing our time and resources in developing future engineering talent.

National Grid – Who are we? 1. National Grid plc owns and operates the high voltage electricity transmission system in England and Wales, and operates the Scottish high voltage electricity transmission system. National Grid also owns and operates the gas transmission system in Great Britain and distributes gas in the heart of England, to approximately 11 million offices, schools and homes. In addition National Grid manages electricity and gas assets in the US, where we are the second largest utility through our operations in the states of New England and New York.

2. Through our regulated and non-regulated subsidiaries, National Grid also owns and maintains around 20m domestic and commercial meters, the electricity Interconnector between England and France, and a Liquid Natural Gas importation terminal at the Isle of Grain.

3. National Grid is pleased to have the opportunity to contribute to this inquiry and our submission will focus on our perspective of engineering and skills.

Role of engineers in our operations

4. National Grid recognises that approximately 40% of our workforce will reach retirement age over the next 10-15 years. We face a challenge to attract, recruit and retain engineering talent at the NVQ level and beyond, in order to ensure continuity of our business operations, and to facilitate future innovation in the engineering sector. 5. The skills of National Grid employees are at the heart of our success in reaching world class safety and operating and financial performance. Many of our organisation’s roles are complex, requiring a wide range and depth of skills – for example we require commercial expertise in order to forecast supply and demand of gas and electricity; engineering apprentices to build and maintain overhead powerlines and gas pipelines; finance graduates to manage accounts and a range of other skills and expertise in IT, Safety, and Supply Chain Management.

Promotion of engineering and STEM subjects in schools and colleges 6. National Grid aims to promote Science, Technology, Engineering and Mathematics (STEM) subjects encouraging students at age 8 and beyond to take up qualifications in these areas. 7. Through National Grid’s e-futures strategy, we organise and sponsor educational initiatives to increase the number and diversity of young people interested in engineering careers. Over the past four years, well over 15,000 young people have taken part. 8. National Grid graduates develop and run exhibits at Imagineering Shows designed to showcase science, technology, engineering and maths experiences aimed at 8- 16 year olds. In addition more than 40 of our National Grid engineers serve as volunteers at after school clubs for youngsters through Imagineering Clubs. 9. To date, National Grid has financially supported the establishment of four engineering specialist schools and supports the Engineering Education Scheme, a six-month project aimed at post 16 students in a Midlands based school. 10. In addition we sponsor Headstart, a series of 22 university-based courses which are targeted at 16-17 year-olds who are interested in mathematics or science, exposing them to technology-based careers.

Engineering placements at National Grid 11. In addition to investing in encouraging STEM subjects with 8-16 year olds in the communities in which we operate, National Grid also provides students with opportunities to gain practical experience in our business. We offer Year in Industry, and Industrial Placements, in which university students (typically in their third year) join National Grid for twelve months, working full time in one of our business units. 12. In the US we have recently launched a University Relations Program, working with eleven higher education institutions to promote engineering and National Grid as an employer of choice.

Training and development of National Grid engineering talent

13. We take the training and development of our staff seriously, upgrading their skill sets, developing competencies and ensuring that we meet future engineering skills shortages through training. 14. Our Advanced Apprenticeship scheme ranks as one of the top 10 schemes offered by employers in Britain (This equates to a Level 3 qualification). A range of various Apprenticeships are offered by National Grid some taking between 24 – 36 months all of which contain substantial elements of on the job training. In 2007 National Grid appointed 88 apprentices but at any one time National Grid has up to 200 Apprentices training and studying to gain qualifications. 15. At our award-winning UK training centre at Eakring we specialise in technical training, offering approximately 50,000 training days per annum primarily in electricity and gas systems, Technical Apprenticeships and safety. 16. Two new Skills Development Centres are currently being constructed by our Gas distribution business to address the acute skills shortage in gas operations. They will augment the existing facilities available at National Grid and come online in summer 2008. The main focus of the new Skills Development Centres is to train new apprentices and to build manager capability and develop the competencies of our workforce.

National Grid engagement on Research and Development & sponsorship of engineers in higher education 17. National Grid is undertaking research to find innovative ways to prepare for, and tackle, the effects of climate change on National Grid’s assets. We are on target to deliver a 60 % reduction in greenhouse gas emissions from our operations and offices across the company well before 2050. R&D solutions are also being developed to improve the efficiency and reliability of our electricity and gas systems and to facilitate the connection of new generation sources.

18. Across National Grid’s gas and electricity business in the UK and US, we spend £23 million a year on funding R&D activity.

19. Much of the R&D we are engaged in is through sponsorships of university research. An example is our sponsorship of the National Grid high voltage Research Centre at the University of Manchester. Here, experts from National Grid and the University of Manchester carry out research to develop new technology solutions to increase the reliability, security and efficiency of high- voltage equipment. The centre itself includes five laboratories, a postgraduate research area and lecture room. Equipment includes National Grid's 2MV (two million volt) impulse generator, able to simulate lightning strikes. National Grid also has strategic partnerships and sponsorship programmes at the universities of Southampton, Strathclyde, and Cardiff.

20. Through our sponsorship of R&D we work collaboratively with students to develop knowledge and innovative solutions, as well as investing time and resources in developing future engineering talent.

21. National Grid notes the concerns of the Committee on the issue of engineering skills and the necessary R&D base needed to underpin the development of future skills, and new energy technologies. We have for many years played an active role in the policy debate on R&D and contributed to Government and Industry working groups at a high level in order to seek solutions to some of the issues we face in the UK.

22. We support young engineers through organisations such as the Power Academy who organise a programme in partnership with the Institute of Engineering and Technology for the provision of financial support for students studying Electrical and Power Engineering degrees at university in order to develop future talent in the engineering sector.

Conclusions 23. Our written evidence to this inquiry hopefully highlights the issues we face as the largest utility in the UK, and has set out the way in which National Grid is working to address the engineering skills shortages we face as an organisation.

24. We have a challenge to recruit and retain a skilled workforce. With the dual issues of ensuring security of supply and tackling climate change we – as an organisation - face a challenge to create that future through our people.

25. National Grid welcomes recent Government announcements on engineering apprenticeships and we hope that as a result of this, and other initiatives that there will be greater opportunity for the promotion of STEM subjects in schools in the classroom and through careers advice.

26. We hope that this submission is helpful to the Innovation, Universities and Skills Select Committee inquiry on Engineering.

March 2008

Memorandum 13

Submission from Faculty of Engineering, Imperial College

Executive Summary

The products of engineering and technology pervade our lives.

At the same time, the public perception of engineering is more to do with “fixing things” than science-based creativity and design. These problems with the perceptions of engineering should be addressed within schools.

Many of the most important developments in the last 150 years have been driven by R&D in engineering. Universities have a critical role to play in educating the engineering leaders of tomorrow.

As well as protecting the engineering base, there are emerging areas such as biomedical engineering, environmental engineering and nuclear engineering which require rapid and substantial investment.

Research in engineering covers the full range of basic to applied research and its products and outputs are captured in various forms, including mainstream publications, practical application, including licences, patents, spin-outs. Thus it is important that any system that replaces the RAE to assess and fund research recognise the full spectrum of measurable engineering activities.

Brief Introduction

1. Imperial College London is a leading research-intensive university based in South Kensington, London. It focuses on Science, Technology and Medicine with a mission to conduct world-class research which is applicable to the needs of industry, commerce and healthcare. It has 3,000 staff and approximately 12,000 students with an annual turnover in excess of £550M.

2. The Faculty of Engineering is one of four Faculties within Imperial College. The Faculty comprises 9 departments, and is one of the largest engineering faculties in the UK, with 1,000 staff, over 4,700 students and an annual turnover in excess of £100M.

Factual Information

The role of engineering and engineers in UK society

3. Current debate about Engineering relates to what it actually means, what it contributes to society and its general perception. Engineering is integral to much of what we do - the products of engineering are pervasive throughout society and range from robotic surgery through the ubiquitous Blackberry to Fuel Cells and to the infrastructure that supports us in our daily lives. However, the impact of Engineering is not always clear or documented and the output is not always attributed to the discipline. Major medical advances, for example, are cited in those terms and seen as being the outcome of medical, rather than Engineering research.

4. The Royal Academy of Engineering report: “Public Attitudes and Perceptions of Engineering and Engineers 2007” finds that the public tends to associate engineering with the manual and construction professions rather than professions leading to creativity and design. A common view is that “engineers fix things”.

5. Perceptions of Engineers need to be changed. The excitement of the advances that engineers make, examples of contributions to daily lives, and the real opportunities that studying engineering can enable are real, and must be communicated in a way that the public can relate to. Creative ways to advance the excitement of engineering are required, so that challenges and interest are created. Engineering needs a face and a personality to have general appeal; essentially this would remove the mystique of what engineers do. Universities have a major role to play in making this happen.

6. Imperial College London has an active outreach department which promotes the activities of our Engineers. Special emphasis is placed on women in Engineering with the aim of encouraging more women into the discipline. Recent examples include an Engineering Open Day for schoolgirls organised by current Imperial engineering students and our EnVision Engineering Education team helped students to create a society for Women in SET and create a scheme to promote students’ extracurricular engineering projects in local communities and developing countries.

The role of engineering and engineers in UK’s innovation drive

7. Engineering is central to the innovation drive to address the big challenges that face us in the 21st century, such as the provision of clean water, mitigation of, and adaptation to, the effects of climate change, and the demands of increasing longevity.

8. With support from the Research Councils, especially EPSRC, and other funders including industry, engineers at Imperial College undertake world-class research to address these challenges. Areas of relevant research include the development of fuel cells, carbon capture and storage, medical robotics and wireless

communications. For example, we have recently secured major funding from EPSRC to investigate hydrogen-based routes to energy storage and conversion.

9. The Faculty of Engineering also provides training towards meeting the future demand for engineers in academia and industry. Training that is targeted to user needs is provided through CASE and EPSRC Collaborative awards. The RCUK Academic Fellowships provide a good example of how training can be enhanced by partnering with industry. Our RCUK Fellows are guaranteed lectureships and many have industrial support, for example from Lonza (chemical engineering) and British Energy (materials).

10. Increasingly, a proportion of our research is directly linked to industry, for example, the Energy Futures Laboratory (EFL) at Imperial College is undertaking a major cross-faculty project with BP on clean urban energy. The EFL is just one model for strengthening innovation at Imperial. Its aims include: establishing a programme of major cross-cutting, interdisciplinary research programmes in areas of key scientific, technological or commercial interest; providing a focus for coordination across the College and with external organisations including UKERC, the Carbon Trust, industry and government and internationally; to develop innovative ways of working with business and industry in the energy sector; and to train people in cross-cutting energy analysis and technologies.

11. Another model for developing links with industry is to form one-to-one strategic Partnerships. For example, in May 2003, the Faculty of Engineering, and Shell Technology Exploration & Production agreed a Memorandum of Understanding (MoU). This formalised the mutual interests of the College and Shell in establishing closer working relationships in research, education, the application of scientific knowledge in the broad area of energy and technology, and recruitment activities. Specific activities undertaken under the MoU banner include: access to GameChanger – a company-wide system for encouraging and funding technical innovation; joint delivery of lectures and seminars; co-operative research; joint Chairs; and staff exchanges.

12. Engineering practices and methodologies play a critical role in ensuring the output from engineering R & D is transferred to potential users, thereby generating significant economic impact for the UK. Products are either directly generated by R & D programmes, some of which may be collaborative with industry, or they may be novel applications of technologies generated for a different purpose.

13. Engineering R&D contributes to innovation through a number of routes including patent applications, licenses and spin-outs, managed through Imperial Innovations. The company was founded in 2006 and was one of the first University commercialization companies to launch on the AIM Market of the London Stock Exchange.

14. Often, there is a long period between the fundamental research and the development of a final product and this can cause problems in terms of demonstrating potential economic impact where the case needs to be made for ongoing funding. Ceres Power provides a good example of this long gestation and also illustrates the critical role of engineering R&D in bringing the ideas to

fruition. Ceres Power, a successful AIM-listed company, was originally established in 2001 to acquire fuel cell IP rights developed over the preceding 10 years by Imperial College. It has now developed, and aims to exploit, its patented fuel cell technology. Some of this work has been achieved in partnership with the South East of England Development Agency. In a recent agreement with Centrica, Ceres Power will take forward commercial development of its unique wall-mountable ‘CHP’ unit which is designed to produce electricity and meet all of the hot water and central heating needs of a typical UK home. The unit will reduce residential energy bills and carbon emissions (by up to 2.5 tonnes per year).

15. An example of a spin-out which has developed novel applications of a new technology is HeliSwirl Technologies Ltd, which produces energy-saving pipe technology based on flow patterns of natural blood vessels. The company was founded as an Imperial Innovations spin-out in 2005. HeliSwirl’s technology is designed to improve fluid flow, reducing energy use and spend within fluid- handling sectors, from petroleum production to food processing. This is also the first example of commercial Carbon Trust equity investment in a company developed within one of its low carbon incubators.

16. InforSense Ltd., founded in 1999, provides an example of how award-winning technology in high performance computing and large scale data mining can be turned into a $ multi-million, world-wide organization with headquarters in London, Europe and the US. The company is the leading provider of enterprise, real-time analytics applicable across a broad range of sectors from Pharmaceuticals to Finance.

The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile)

17. The BMG report 2006 Labour Market Survey of the GB Engineering Sectors prepared for SEMTA suggests that hard-to-fill vacancies are most likely to be experienced in skilled trades occupations. A lack of applicants with the required qualifications and skills stands out as the main reason for difficulties in filling such vacancies.

18. Whilst the BMG report does not identify a shortage of engineering graduates as a major issue, the Sainsbury review does highlight this. Imperial College has witnessed a small year-on-year increase in well-qualified applicants although the change in UCAS procedures has resulted in a drop this year. The largest drops in the current admissions cycle are in ICT subjects (20%) and Earth Sciences Engineering (19%).

19. The Sainsbury Review (The Race to the Top) identifies a “worrying decline in chemistry, engineering and technology graduates”. The review reports a 24% drop in first-degree engineering qualifiers since 1994/95, although observes that this drop is now flattening out. It also reports anecdotal evidence that many engineering students graduate with little desire to take up a career in engineering.

20. This anecdotal evidence is also supported by evidence gathered for our EnVision programme which is developing new curricula for 21st century engineering education: 81.3% of first-year engineers intend to become engineers after graduation; this figure drops to 43.8% for fourth-year students.

21. Gender balance is also a concern – only 20% of our 2007/2008 intake was female (with less than 10% in Aeronautics rising to 40% in Earth Science and Engineering).

22. We do not consider the age profiles of our staff and students to be a problem.

The importance of engineering to R&D and the contribution of R&D to engineering

23. Engineering is a core academic discipline and, as such, it can educate its students to solve the most complex of problems and deal with challenges from all areas.

24. Sainsbury (The Race to the Top) refers to the Cox Report and observes that design input is especially important to the successful exploitation of new technology. The Faculty of Engineering at Imperial College London is collaborating with the Royal College of Art and Imperial’s Tanaka Business School to create Design London – the first of the regional design centres envisioned by the Cox Report.

25. It is crucial that UK researchers have access to world leading facilities. Member States and the European Commission have recognised the need for a strategic approach to large-scale research infrastructure. They have agreed a European Roadmap for Research Infrastructures. The UK also has its own large facilities roadmap and makes funding available through the Large Facilities Capital Fund.

26. The UK is well-placed to host some of these major facilities and should be preparing to do so. Whilst the facilities will serve “Big Science”, the design and construction relies on strong engineering R&D input. Support for this early R & D, and proof-of-concept is essential if the UK is to take the lead in, or influence the siting of, some of these international facilities.

27. One of the key elements in Imperial College’s research strategy is to bring together the scientists, engineers, medical researchers and clinicians in multidisciplinary centres such as the Institute of Biomedical Engineering. The institute is a working model of the potential for collaborative R & D to achieve successful outcomes. By applying technology to advance the treatment and management of chronic disease the Institute aims to improve the health and welfare of people worldwide.

The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering.

28. The contribution of engineering needs to be understood at an early age. It's too late to address it at university as by then people will have elected not to study

engineering. It needs to be done before GCSE and certainly before ‘A’ level decisions are made, since its study at university requires science ‘A’ levels as a necessary prerequisite.

29. One way of achieving this early stage influence is through the STEMNET Science and Engineering Ambassadors – SEAs. Their role is to support schools activities such as Science and Engineering clubs, help with school's STEM competitions, events and awards, offering mentoring, careers guidance and positive role models, and helping to provide work-based placements for teachers and students.

30. Imperial College has 424 SEAs, many of whom are able to promote engineering in schools. We must ensure that these SEAs are used to greatest effect and are fully integrated into the timetabling options in schools and other places where they can operate.

31. Once at University, and having chosen to study engineering, students may still choose not to pursue a career in the profession. Evidence gathered for our EnVision programme suggests that student’s reasons for choosing engineering change as their course progresses.

Figure 1 – Student reasons for choosing engineering by year of study (N=2330).

40% 35% 30% 1 2 25% 3 20% 4 15% 10% 5% 0% Maths/physics Hands-on work Hands-on Financial reward Pioneer newPioneer technologies Specific interest in projects in interest Specific Wide range of career options career of range Wide Make a difference to the world the to a difference Make

Notes: - student recognition in year four of wider career choices may indicate some rationalisation that their degree is actually suitable for non-engineering careers, and hence supports their lack of intention of becoming an engineer - student aspirations to “make a difference to the world” dramatically fall by the fourth year, as does any specific interest in subject-related projects and activities.

32. We also observed that students would prefer more hands-on practical content to their courses and would also like to see more transferable skills taught.

Figure 2 – Student desires for course content (UG: N=802; Alumni: N=108).

5 4.5 4 Undergraduates 3.5 Alumni 3 2.5 2 1.5

Mean student rating 1 0.5 0 Other Maths work Practical skills theory Engineering Lab projects Transferable

Notes: - UGs in general wanted an increase of provision in all aspects of the course, but with greater emphasis on transferable skills development, practical work and project work. - a similar trend was reported by Imperial College Alumni (who have spent at least one year in industry).

33. To address some of these issues, the Faculty of Engineering has introduced EnVision, which aims to place Imperial College at the forefront of engineering teaching by 2010. Some of the initiatives being taken forward under this banner include:

The ‘Constructionarium’, a radical field course in construction held at the CITB’s National Construction College in Norfolk, was created by Imperial with industry partners and has spread to 16 UK universities in 5 years, has attracted international interest and lifted student motivation towards civil engineering from 57% to 85% in an Imperial before/after survey. ‘Racing Green’ – a project to develop a fuel-cell based racing car with spin-off opportunities for students in their third and fourth year projects; this involves students from six engineering departments

Students are helping to design their new learning space, being delivered through a £multi-million re-development of the South Kensington site ‘by the student, for the student’ schemes where students take leadership, responsibility, satisfaction and accolades for turning their ideas for ‘saving the world’ into volunteer action. Discussions with the Sector Skills Council’s consultants on strategies for integrated theory/design/skills learning in a variety of engineering disciplines.

34. We have recognised the need for more flexibility in our courses and are developing a common time-table that will allow optional courses in other areas of engineering to be undertaken. Our Roberts funding has also been used to provide compulsory courses on transferable skills, and optional summer schools.

35. We welcome the EPSRC funding to support capacity building in areas under threat, and, in partnership with other stakeholders, have been successful in securing funding for nanometrology, quantum coherence and structural ceramics.

Recommendations for Action

EPSRC has held four rounds of Science and Innovation awards which have been directed at building capacity in under-threat areas of science and technology. The most recent (fifth) call is focussing on emerging areas. This scheme should be expanded (possibly funded directly through DIUS) to build both teaching and research capacity in emerging engineering areas such as nuclear, environmental, and biomedical engineering.

Research in engineering covers the full range of basic to applied research and its products and outputs are captured in various forms, including mainstream publications, practical application, including licences, patents, spin-outs. Thus it is important that any systems to assess and fund research recognise the full spectrum of measurable engineering activities.

We endorse the recommendations relating to Chapter 7 of the Sainsbury Review, particularly insofar as they relate to engineering. Full implementation will lead to improved perceptions of engineering and a better understanding of the career opportunities. It will also ensure that there is a cohort of engineering graduates which meet the (changing) needs of UK industry.

There is a role for Universities, Research Councils through RCUK, Learned Societies, the Engineering Technology Board and Industry to work together more coherently to ensure the public, including our future students, understand the importance and impact of engineering on UK society and its economy.

The UK should try to attract at least one high profile international project that is a show piece for demonstrating the creativity of engineering.

Our teaching models such as the Constructionarium demonstrate that national teaching facilities, shared by universities for experiential learning, can produce

86 significant benefits in motivating students towards engineering. There needs to be more funding to support experiential learning alongside advanced teaching in theory and design.

March 2008

Memorandum 14

Submission from Materials UK

This contribution is submitted by Materials UK Limited (Mat UK). Drawing its membership from industry, academia, Government and NGOs, Mat UK was formed to implement the recommendations of the Materials Innovation and Growth Team (IGT) set out in “A Strategy for Materials” which was published in March 2006.

Education and skills formed a key part of the original recommendations, and Mat UK set up a Working Group to develop, prioritise and implement that part of its strategic agenda. This contribution is based on its findings to date and its proposed actions.

The current members of Mat UK are:

Advanced Composites Group Airbus UK Alcan Aluminium UK Alstom Power CERAM Research Community Corus EEF First Ventures GKN Institute of Materials, Minerals and Mining Nanotechnology Industries Association NPL QinetiQ Rolls Royce Sharp Laboratories TWI

EXECUTIVE SUMMARY

The materials industry has an annual turnover of £200 billion, contributing at least 15% of the GDP of the UK. It underpins every aspect of our economy, and the growing needs of climate change, nuclear energy, nanotechnology, plastic electronics, new buildings etc. are increasing demands on the sector.

To meet these demands, we must provide high-quality teaching in science, technology, engineering and mathematics (STEM) and better mechanisms for skills development at all levels in the materials supply chain. The declared Government target of 2.5% GDP spent on R&D (currently 1.9%) will increase the need for skills in materials at all levels.

There is strong evidence that the output of trained materials scientists, engineers and technicians is falling at the same time as the loss of skilled professionals through ‘baby boomer’ retirements is accelerating. This would seriously undermine the Mat UK vision of ‘the UK continuing to be one of the foremost advanced technological societies in which world-class materials expertise underpins sustainable growth’.

Solutions are offered in the areas of:

Provision of higher education Increase student funding for materials engineering courses. Develop and promote imaginatively materials engineering courses. Encourage overseas students to remain in the UK after undertaking postgraduate education and where industrial sponsorship is available Increase provision of tailored materials post graduate top up courses through Universities including the Open University.

Work-based training Influence SfBN to provide ‘joined up’ cross sector support and keep the materials community informed of newly developed support available. Engage further with the Open University on the development of concurrent distance learning and professional qualifications for materials engineering. Develop a single on-line database of materials engineering training provision. Bring the needs of the materials community to the newly formed Commission for Employment and Skills set up to replace many functions of the Sector Skills Development Agency as recommended by Leitch.

Schools and image (in conjunction with STEMNET) Develop core Mat UK messages on image of materials/materials industry.

Identify existing schemes and initiatives through which Mat UK might deliver core messages, such as the IOM3 Schools Affiliate scheme. Agree production of basic promotional material for distribution at events, conferences, and school activities etc. Review individual schemes from institutes, livery companies and other bodies with a view to creating a multiplier in the national approach. A clear offering rather than a mass of unconnected initiatives is the objective. Build on the recognition of materials as a Key Stage 3, 4 and 5 subject.

THE EVIDENCE

1. THE DEMOGRAPHIC Problem 1.1 The IGT calculated that the materials industry has an annual turnover of £200 billion, contributing at least 15% of the GDP of the UK. The industry underpins every aspect of our economy and is central to meeting the challenges and opportunities arising from

• Climate change – sustainable production & consumption, more efficient energy generation (including nuclear), renewable energy, conservation. • The heavy demand for new buildings and engineered structures, both domestic and commercial, including the Olympics. • UK’s established presence in major industrial sectors – food, automotive, aerospace, oil/gas, chemical, marine etc. • UK strengths in growth sectors - pharmaceutical/biotech, plastic electronics, nanotechnology, ICT/ multimedia, fashion, design etc.

This comes at a time when a range of demographic factors are reducing supply, as will be shown below.

1.2 The Royal Academy of Engineering established a Working Party to report on ‘Educating Engineers for the 21st Century’. The final report noted that….. “When our need for engineering talent is huge, we are failing to persuade that engineering careers are exciting, well-paid and worthwhile” …. and…. “We will face an increasing shortage of graduate engineers unless action is taken”

1.3 Statistics available from the universities clearing organization, UCAS (Figure 1), show that the number of students commencing higher educational courses in engineering (HND and degree) has been dropping for a number of years. Furthermore the proportion of these domiciled outside the UK has increased. Add to this Business Week’s belief (Jul 10 2006) that 25 to 40% of engineering graduates do not take jobs as engineers, and it can be seen that the situation is serious.

1.4 The paucity of graduates in materials science and engineering is dramatically worse. The Higher Education Statistics Agency (HESA) figures, on cursory examination, do not cause concern. They show that in 2006 there were just over 4000 full-time students studying materials (Figure 2). But, looking into the detail, this figure drops to around 2000 when only material science, material technology and metallurgy courses are considered. This is the number of students in higher education at the time, thus the number in any one year of study is less than 500. A detailed study conducted by the UK Centre for Materials Education (UKCME) to be published in May 2008 shows the figures for university leavers (graduates and taught post-graduates) who studied materials focused courses to be:

2004 2005 2006

450 389 364

1.5 Some courses are a combination of materials teaching with other disciplines (e.g. business or management studies). If we consider that these courses are unlikely to produce graduates who will take an active role in materials disciplines in their career, the figures reduce to:

2004 2005 2006 296 247 227

1.6 These are frighteningly small numbers of entrants to the market and attrition through graduates seeking other careers and foreign students returning to their homeland leaves the UK in a dismal position with potentially only 140 new materials graduates per year joining the industry. Also, it must be borne in mind that these are the totals graduating regardless of grade, and not all would be considered suitable by a potential employer.

1.7 There is some evidence of an uplift in postgraduate numbers. Despite the low graduate numbers (see 1.4), EPSRC has advised that it sponsors ca. 500 p.a. new research based-postgraduates. This is due to overseas students and general engineers choosing a materials discipline at post-graduate level. The fall-out is still high (many overseas students return home on completion of their courses, often because visa restrictions prevent them from remaining even though they may be well-disposed towards doing so) so this may add ca. 200 p.a. to the UK pool, making little difference to the overall trend.

1.8 At the same time, data from the Engineering Council (UK) show that, between 1988 and 2005, the population of registered engineers aged significantly (see Figure 3). Whilst it may be argued that this could reflect on the institutions’ ability to attract young members, this is not the case for CEng registration. The data indicates a potential loss of around 4000 Chartered Engineers per annum through retirement.

1.9 Thus, the number of materials engineers leaving the industry through retirement is already considerably above 500 p.a. (as reported by IOM3 and The Welding Institute), whereas less than 350 p.a. materials graduates and postgraduates are joining. Clearly, the situation is set to worsen.

1.10 There is a popular belief that, as in other areas, immigration offers a solution to shortages of materials skills. However, this may be short- lived, as there is growing evidence that other countries are already experiencing their own shortages in these skills, so competition will increase:

The 2005 USA Skills Gap Report by Deloitte, the National Association of Manufacturers and The National Manufacturing Institute found that 65% of respondents reported a gap in

engineering and science. ASM has established a Foundation to promote materials in high schools.

The New York Times reported in Oct 2007… “As its technology companies soar to the outsourcing skies, India is bumping up against an improbable challenge. In a country once regarded as a bottomless well of low-cost, ready-to-work, English-speaking engineers, shortages loom.”

In Korea, POSCO is investing heavily in a new ferrous metals institute in order to ensure a supply of trained graduates.

There are reports of companies in South Africa and China failing to find the calibre of engineering staff necessary for business growth.

1.11 The Sector Skills Council for Science, Engineering and Manufacturing Technologies, SEMTA, conducted a market survey of its members in 2006 that showed 37% of those with 300 to 499 and 40% of those with over 500 members of staff reported a skills gap (Figure 4) and that the majority of these stated that technical and engineering skills were the main problem areas.

1.12 Without skilled personnel with proven competence at C Eng level or equivalent, the necessary technical skills and leadership resources to underpin materials supply and usage through Energy, Aerospace, Automotive, Health Care, Electronics, Defence and other sectors through Advanced Manufacturing products and Engineering Construction and Infrastructure programmes will have to come from outside the UK.

2. Towards SolutionS

2.1 Provision of Higher Education

2.1.1 Standards and reputation of UK materials courses actually compare very well in international comparisons (though the challenge of maintaining standards will be impacted by the demographic squeeze affecting academic staff as in other materials areas). Even so, more needs to be done to enable students to see the variety of careers available and where the jobs are at the end of their courses. Greater industrial content of undergraduate courses would help, as it does already at post-graduate level where a significant proportion of projects are industrially sponsored. Promoting greater contact between students and practising materials scientists / organisations would also help.

2.1.2 Describing ‘materials degrees’ as ‘materials engineering for ………..’ would help the image especially given the trend elsewhere in HE to subcategorise courses – examples might be materials engineering for sports, materials engineering for medicine, materials engineering for

energy, materials engineering for motor sport, etc. However, this must not be at the expense of quality, and some employers have observed that the graduates of some such courses are not always well equipped for employment.

2.1.3 Government support for engineering undergraduates does not compare well with medicine/dentistry. These are Band A and attract £13k per head per year. Engineering (including materials) is Band B and attracts only £6k per head per year. These funding levels are based on historical trends and not future demand and, as a consequence, less effort has been put into raising awareness of engineering related courses.

2.1.4 Although postgraduate numbers in the field have grown slowly, this is largely due to the growth in overseas students; and, as indicated earlier, the effect of this on the UK skills pool is not as great as it could be and may be short-lived. Nevertheless we can build on the trend towards post graduate study by taking undergraduates from other engineering disciplines (albeit that they may have issues of falling numbers as well) and adding specific materials knowledge at the postgraduate level.

2.1.5 There is a case for:

i. Increasing student funding for materials engineering courses. ii. More imaginative development and promotion of materials engineering courses. iii. Encouraging overseas students to remain in the UK after undertaking postgraduate education and where industrial sponsorship is available iv. Increased provision of tailored materials post graduate top up courses through Universities including The Open University (OU).

2.2 Work Based Training

2.2.1 The Skills for Business Network (SfBN) was set up to identify and tackle skills gaps on a sector-by-sector basis. The network comprises 25 Sector Skills Councils (SSCs) which cover 85% of the UK workforce. The starting point for all SSCs is to define what the current skills gaps and future skills requirements will be; and to ensure that the state-funded provision of education and vocational training is focused on these priorities. National Skills Academies (NSAs) are being set up to be "at the apex of the skills system”. Four (including manufacturing) are up and running, and a further eight are planned.

2.2.2 Gordon Brown, PM, whilst Chancellor of the Exchequer, and the then Secretary of State for Education and Skills, commissioned Lord Leitch to report on ‘Prosperity for All in the Global Economy – World Class

Skills’. Leitch’s report had some stark messages about the need for a more educated workforce and set targets that have been adopted by the Government.

2.2.3 Whilst Technical Colleges are addressing the need identified in the report to bring 90% of the workforce to Level 2, and initiatives to raise the profile of SET are beginning to take effect in schools, there is little evidence of attention to some of the other recommendations of the report:

“More than 70% of the 2020 working age population are already over the age of 16, and adults will increasingly need to update their skills in the workplace.” “Exceeding 40% of adults qualified to Level 4 and above” “The skills system must meet the needs of individuals and employers.” “Increase employer investment in Level 3 and 4 qualifications in work”

2.2.4 Clearly, relying on the current supply of new graduates attracted to university engineering courses straight from school will not address the issue until the medium term. This is further compounded in the short- term by evidence showing that the number of 18 year-olds is set for a marked downturn (Figure 5). However, there is a current opportunity to increase the qualification and skills of those already in the workforce being developed.

2.2.5 As pointed out by Leitch, developing the skills of the existing workforce is hugely important given that over 70% of the 2020 workforce is in employment today. The Report sets a target for more than 40% of the adult population to be qualified to Level 4 and above, which means 530,000 people per year as compared with around 250,000 today. However, the education and skills system is currently focused on young people and is less well developed to meet the up-skilling needs of those already established in employment.

2.2.5 As shown by the SEMTA survey (see Figure 4), smaller companies have often not recognised the skills shortage as readily as larger ones, and may need special attention in getting the message across. Assistance in making the business case for investment in skills will be particularly helpful.

2.2.6 One current initiative (Appendix 1) is aimed at increasing qualifications among engineering and material science personnel currently in the workplace – directly in line with needs identified above. TWI has been liaising with the OU and has found much synergy in thinking on an approach to this challenge. Both see that technicians working in industry have much to offer, having demonstrated both their innate ability and commitment to engineering. The proposal is to offer these people a guided way to increasing their qualifications to Foundation and Honours Degrees and potentially to postgraduate qualification. Both TWI and the OU are investing £1m each on this effort. They have

received support from Lloyd’s Register Educational Trust with a £600k contribution to establish a Chair in Materials Fabrication and Engineering. This will form an exemplar initiative involving centres of excellence around which to focus the effort and specific industrial networks who wish to add their own tailored requirements.

2.2.7 To put this initiative into perspective the numbers of existing vocationally qualified personnel without degrees runs into tens of thousands. Many are more than capable of reaching Chartered Engineer status provided the provision is delivered whilst they remain in work.

2.2.8 The key challenge for the materials community, which cuts across most sectors, is to understand how the support structures work, ensure that its voice is heard and avoid the fragmentation that would otherwise arise. A specific strength that the UK can build on is the Open University, which is world class in the provision of distance learning. The exemplar initiative with TWI is looking at developing programmes training in the workplace aimed at raising the profile for materials engineering and twin-tracking academic and vocational qualifications. There is also a need to promote the training provision already available, much of which is currently invisible to the industry.

2.2.9 There is a case for:

i. Influencing SfBN to provide joined up’ cross sector support and keep the materials community informed of newly developed support available. ii. Engaging further with The Open University on the potential for development of concurrent distance learning and professional qualifications for materials engineering. iii. Developing a single on-line database of existing materials engineering training provision. iv. Bringing the needs of the materials community to the newly formed Commission for Employment and Skills set up to replace many functions of the Sector Skills Development Agency as recommended by Leitch.

2.2 SCHOOLS AND IMAGE 2.3.1 The root cause of many of these shortages is that not enough good students choose science and engineering. In common with other areas of manufacturing, both here in the UK and in other developed economies, materials faces difficulties in attracting young people to take up careers in the industry, particularly in the fields of science and technology.

2.3.2 The problem may even be more acute in the case of materials because, unlike defined sectors such as automotive or aerospace, materials lacks a distinct sector image. Certain sub-sectors such as

steel, glass and plastics do have visibility, but are not generally perceived by the general public as being part of a wider ‘materials industry’.

2.3.3 This is a complex area, but there are two important underpinning contributory factors: a general decline in young people opting for science based study; and a perception that manufacturing industry in general can’t provide exciting and fulfilling jobs which are well paid and have good prospects.

2.3.4 Mat UK produced a report aimed at young people entitled “What’s the Future Made Of?”, which represented a first attempt to address the ‘image’ problem. Whilst this publication was received enthusiastically by those teachers and students who received it, Mat UK’s limited resources meant that penetration was minimal. In order for Mat UK to engage effectively with schools it will, therefore, have to work closely with some of the many existing schemes and initiatives, both national and regional, aimed at promoting science, technology engineering and mathematics (STEM) to young people.

2.3.5 In collaboration with STEMNET, Mat UK aims to deliver, through existing programmes, a clear set of positive messages about the materials industry to teachers, students and parents, including promoting their contact with practising materials scientists. These should aim to show the high-tech side of the industry and the range of potential career opportunities available. Where possible, Mat UK should also seek to ensure that new initiatives include elements on materials and the materials industry. STEMNET experience has already demonstrated that unless funding is made available to the schools to pay for the release of their staff for training in the provision of these initiatives through engineering clubs etc then efforts will be at best sporadic and/or short-lived.

2.3.6 Some progress is being made. Materials is starting to be recognised as a Key Stage 3, 4 and 5 curriculum subject, and the IOM3 Schools Affiliate initiative has already reached over 8,000 pupils.

2.3.7 There is case for working in collaboration with STEMNET to:

i. Develop core Mat UK messages on image of materials/materials industry.

ii. Identify existing schemes and initiatives through which Mat UK might deliver core messages, such as the IOM3 Schools Affiliate scheme. iii. Agree production of basic promotional material for distribution at events, conferences, and school activities etc. iv. Review individual schemes from institutes, livery companies and other bodies with a view to creating a multiplier in the national approach. A clear offering rather than a mass of unconnected initiatives is the objective. v. Build on the recognition of materials as a Key Stage 3, 4 and 5 subject.

3 Conclusions and Recommendations

3.1 The case presented to the Select Committee represents a wake-up call to industry, education and government given the importance of materials to UK GDP.

3.2 Whilst some of the shortage may be made up by immigration and people working beyond the age of 65, this will not provide the necessary resources to support future growth and advanced manufacturing predicted in energy, aerospace, automotive, construction, medical devices, electronics, defence and the engineering consultancy support required to support the future UK Materials infrastructure.

3.3 Mat UK wishes to bring its broader agenda and actions to the notice of policy makers in government and industry to help effect the changes needed to address the problems.

March 2008

Appendix1

The OU/ TWI/ LRET Model

The principle is to use the expertise of TWI in materials fabrication, its connection to industry through its Industrial Membership, and its international provision of training in welding and associated technologies, combined with the teaching principles of The Open University to produce a method of increasing the number of graduates in a fundamental aspect of SET. This scheme will be marketed reflecting the sponsorship received, as in the case of the Lloyds Register Educational Trust. I The OU has built a strong reputation in the education of part-time students. It has the schemes and controls necessary to give integrity to the qualifications it awards. It is this that forms the basis of the project. The part-time, distance- learning approach of the OU is ideally suited to developing high-level education in those who need to remain in work whilst studying. The scheme will be based on stepwise development of qualification via a credit-based system giving flexibility of timing and exact route chosen. Although initially developed in the UK, a major aspect is that the scheme should be readily transportable to developing nations giving access to, and thus acceptance of, British qualifications and technology know-how. Being centred on distance- learning modules, the OU system is readily applied to students throughout the world.

The Welding Institute is a founder member of the scheme for welding engineering qualification operated by the International Institute of Welding (IIW). This scheme is recognised by more than 40 countries around the world as giving qualifications demonstrating knowledge in the theory of engineering fabrication. No other instance is known in any profession of such widespread acceptance of a single qualification. The learning required for an IIW Diploma will be assessed by the OU and incorporated as modules counting towards an OU qualification.

The Engineering Council of the UK bestows professional qualifications upon suitably educated and experienced individuals. These qualifications, especially Chartered Engineer (CEng) and Incorporated Engineer (IEng), are recognised as significant achievements relating to education, work-based learning, job knowledge and the commitment to continuous professional development. TWI is a Licensed Member of the Engineering Council of the UK and is authorised to assess qualifications for eligibility towards CEng and IEng. The modules available for this scheme will be selected for applicability to the Engineering Council requirements so that a student may gain these professional qualifications without further academic achievement.

FIGURES

30000

25000

20000

Home EU 15000 non-EU Total

10000

5000

0 19961997199819992000200120022003200420052006

Figure 1 UCAS data on students starting engineering courses in the UK

12,000

10,000

8,000

6,000

4,000

2,000

0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Total Students Full Time Undergraduates Full Time Postgraduates

Figure 2 HESA data on number of students studying materials in the UK

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Figure 3a) CEng registration Figure 3b) IEng registration

Figure 3c) EngTech registration

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Figure 4 Data from SEMTA survey of employers 2006

Figure 5 Population estimate for 16- and 18-year old people in the UK

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Memorandum 15

Submission from Network Rail

Executive Summary 1. Network Rail is one of the country’s biggest investors in vocational training and development in the UK. It is also one of the first three groundbreaking companies that has recently gained awarding body status from the Qualifications and Curriculum Authority (QCA). Last year, Network Rail won the People Management Award from the Chartered Institute of Personnel and Development for its Advanced Apprenticeship Scheme.

2. However, with a significant investment programme to improve the railway proposed over the next five year rail regulatory period, starting in 2009, and in delivering the Government’s 30 year rail strategy, Network Rail, and the industry generally, needs more adequately qualified apprentice candidates and engineers. In particular, there is a lack of female and minority ethnic candidates.

3. Network Rail looks forward to the introduction of a Draft Apprenticeships Bill in the current session of Parliament. As well as helping to address the engineering skills gap we hope it will also address the structure of apprenticeship funding and stakeholder relationships in this area.

Introduction

4. Network Rail owns and operates Britain’s rail network. It is a private, ‘not for dividend’ company directly accountable to its Members and regulated by the Office of Rail Regulation. All profits made by Network Rail are invested back into the railway. Over the last five years, working closely with our industry partners, Network Rail has made rail the safest form of transport and halved the numbers of late trains. Over the last ten years passenger numbers have increased by 40% and freight by 60%. Passenger numbers are projected to increase by 30% over the next ten years. This success of rail presents Network Rail with many engineering opportunities and challenges in the next five years and the longer term.

5. This is one of the reasons Network Rail is one of the biggest investors in vocational training and development in the UK and, as such, welcomes the opportunity to respond to the Select Committee’s inquiry. Network Rail allocates a budget in excess of £25 million per annum for vocational training and runs one of the largest apprenticeship schemes in the country, at HMS Sultan in Gosport. The company is spending another £25 million over five years to build new state-of-the-art Vocational Training Centres.

6. In addition, we receive £2 million per annum from the Learning and Skills Council (LSC) towards our Apprenticeship Programme. We estimate that in total we run just over 160,000 training days every year with the average take up for Network Rail’s front-line employees being about ten days training each year.

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7. Network Rail provides opportunities to gain a range of qualifications, from Advanced Apprenticeship Schemes, ‘A’ Level equivalents, Foundation degrees, through to Higher Degrees. These span basic level 2 certificates up to and including post graduate level qualifications.

8. Network Rail is also one of the first three groundbreaking companies that has recently gained awarding body status from the QCA, enabling it to award work-based qualifications to its employees.

9. Last year, Network Rail won the Chartered institute for Personnel and Development’s People Management Award for its Advanced Apprenticeship Scheme.

The role of engineering and engineers in UK society and the role of engineering and engineers in UK's innovation drive

10. Britain’s growing rail network, and the engineers that maintain and enhance it, make a vital social, environmental and economic contribution to society. For example, as the Government commissioned Eddington Report makes clear, the rail industry has a significant role to play in the growth of the UK economy.

11. As the Eddington Report states, inter-urban rail networks will face increasing capacity pressures in future, particularly where heavily used inter-city and commuter journeys have to compete on the same network. The report highlights the high returns on investment that address such capacity problems.

12. Network Rail’s Strategic Business Plan (SBP), which is the response to the Government’s requirements (known as the High Level Output Specification- HLOS) for rail over the next five years from 2009, sets out a number of schemes to enhance the network where it is most needed worth a total of £10 billion.

13. Looking further ahead Network Rail, in partnership with the rest of the rail industry, will also deliver the Government’s 30 year rail strategy, set out in last year’s rail white paper alongside the HLOS, to ensure that the railway can maintain its success and keep pace with increasing demand from passengers and freight and fulfil its environmental potential. This could involve major engineering measures such as new, lighter, more energy efficient trains on new, high speed routes.

14. Network Rail is also constantly developing innovative engineering technology to further increase the performance, efficiency and safety of the rail network. Examples of new technology currently being deployed on our network include modular infrastructure and high output maintenance and monitoring machinery and infrastructure. Network Rail is taking a leading role in the design and development of the next generation of energy efficient high speed trains and has used a hybrid engine on its New Measurement Train.

15. It is because of these major engineering challenges that Network Rail has developed its apprenticeship scheme, Foundation Degree at Sheffield Hallam University, and leadership schemes for potential high flyers. This is a huge

104 investment in the future of the business. This apprenticeship scheme will deliver over 1,000 skilled technicians who will become the backbone of Network Rail for the next 25 years.

The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile)

16. With so many major engineering projects on the shorter and longer term horizons and the constant development of innovative technology, Network Rail and the rest of the rail industry needs more adequately qualified entry level apprenticeship candidates and engineers.

17. There is a major shortage of good quality candidates at the basic entry level with all the relevant skills. Many of them have the minimum requirements of 4 GCSE passes, but are lacking in basic numeracy, literacy and ‘soft’ skills (i.e personal learning and thinking skills). This necessitates further resources for personal development combined with greater efficiencies in the delivery of learning.

18. Network Rail also faces particular challenges in recruiting a diverse workforce. While our record at recruiting black and minority ethnic candidates into engineering and vocational training is around the national average, at about 9% of candidates, we face similar challenges to other engineering industries in recruiting females into engineering. Only about 2% of students on our Foundation Degree course are female. This compares favourably to the industry average where only 2% of candidates, are female. More needs to be done to make engineering and apprenticeships more appealing and accessible to young people, particularly young women and those from black and minority ethnic communities.

19. We are finding that the average age of those applying for apprenticeships is also increasing, as students stay on longer at school and college. We would like the funding we receive from the LSC to reflect this demographic change (see below).

The importance of engineering to R&D and the contribution of R&D to engineering

20. The Research and Development activities of Network Rail require engineering skills at the highest level across most engineering disciplines, including electrical, civil, control systems, communications and ergonomics.

21. To support R & D into the substantial changes that will be required to increase capacity and reduce the running costs of the railway over the next 30 years to support the delivery of the Government’s rail white paper, Network Rail will need to attract, train and retain engineers with the technical ability to develop the way the railway is designed and maintained. We currently use our Graduate Training Scheme to do this and intend to increase the number of university partnership schemes with PhD students.

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The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering

22. Universities, professional bodies, trade unions and Government all have an important role to play in engineering careers and particularly addressing the skills gap, in partnership with industry. Network Rail works closely with all these stakeholders on recruitment and leadership and vocational training schemes.

23. The 2007 Queen’s Speech included a commitment to introduce a Draft Apprenticeship Reform Bill. As well as providing an opportunity to address recruitment and diversity in engineering, we hope the bill will enable to develop some of its stakeholder relationships and structures in this area.

24. The structure of funding for apprenticeships should be reformed. It costs Network Rail £56,000 to train an apprentice over three years (this covers salary, training costs and accommodation) in addition to any LSC funding. The LSC provides £14,500 of funding for all apprentices aged 16-18, but only half as much towards the cost of training for those aged 19 and over. As students are staying on longer at school and college we are finding that the age group of those applying for apprenticeships is getting older, and we believe the funding the LSC provides needs to adapt to these changes.

25. We find the LSC increasingly bureaucratic and their auditing of our standards excessive. Rather than providing the LSC with monthly feedback we would like to move towards a system of self-assurance and self-governance of our standards.

26. There needs to be a simpler process in place in developing assessments for National Vocational Qualifications. The assessment process needs to be rigorous without being excessively detailed. The Government is keen for industry to adopt vocational qualifications, but we believe that they need to be based more around the needs of industry as opposed to the further education sector.

March 2008

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Memorandum 16

Submission from EDF Energy Networks

Executive Summary

1. Whilst the energy sector in the UK has traditionally developed through its own procedures and training systems a well-trained and highly-skilled workforce, providing excellent career opportunities to people from a diverse range of social backgrounds, the current economic and regulatory context has placed significant pressures to reduce recruitment and training. As a result, the sector is dependant on legacy skills embedded in an ageing workforce.

2. The power sector covers the following activities:

• Power generation; • Power transmission; • Power distribution; and • Metering

The sector employs over 77,000 people and has a significant impact on the rest of the economy. Industry groups such as the Major Energy Users council and consumer groups such as energywatch point to the key role of energy prices and services in improving the UK’s economic competitiveness and reducing poverty. Moreover the Government’s commitment to reducing carbon emissions has a disproportionate impact on the power sector and all elements of the sector have a major role to play in delivering a low-carbon economy so long as they have the crucial professional and technical skills to drive innovation and growth. In addition a strong domestic power sector with highly developed professional skills would provide substantial export potential in a rapidly changing world.

3. However the opportunity to develop a greener power sector, offering a more sophisticated and less expensive energy services requires positive action now to address skills shortages. Without the key skills to drive change across the sector we, as a nation, face a crucial skill shortage from 2015 to 2025 that will make power supplies less reliable and more expensive. If this process does not

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take place, ultimately consumers and businesses will pay the long- term price of a less efficient, costly power sector, which struggles to meet targets for environmental protection and stifles innovation.

4. In recent years, despite the commercial rivalry between operators in the sector, we have strived to create an industry-wide response to the skills crisis within the power sector. Whilst the various industry stakeholders are confident that we can deliver on our commitment to revitalise the skills base of the power sector, we believe that Government and industry regulators, such as Ofgem, need to work with the industry to create a supportive framework for training and development. The potential benefits of a greener, more innovative power sector providing tens of thousands of highly skilled jobs, and boosting the UK’s economic performance, are such that we believe that nobody should shirk the duty to achieve a robust and effective framework for training across the sector.

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Power Sector Skills Strategy Group 5. Overview: We established the Power Sector Skills Strategy Group (PSSSG) in July 2007 as the power sector-wide collaboration group on skills strategy. Members37 include major power sector companies, contracting organisations, supply chain companies, Government partners, trade unions, trade associations and professional bodies. In this manner, all industry stakeholders are working together to address the serious skills challenges facing the sector. Members hold strategic positions in their representative organisations and are able to contribute to the strategic debate on skills in the power sector. A senior representative of a major power company, who is also a non-executive director of the industry skills sector council, Energy & Utility Skills, chairs PSSSG and secretariat resources are provided by E&U Skills38.

6. Purpose: PSSSG’s sole purpose is to develop a strategy to address the strategic skills gaps across the power sector with particular emphasis on the potential for medium (2-5 years) and long term (5-20years) collaborative action. The PSSSG will support the sector-wide delivery of a long-term, sustainable skilled workforce to meet the environmental, social and commercial challenges of the next 20 years.

7. Role of Engineering and Engineers in UK Society: Power sector engineers are vital to the continued economic success of the UK and to meeting our commitments on climate change. The power sector provides essential infrastructure for all industrial, commercial, public and voluntary services and homes across the UK. Even though the sector is commercial, there remains a very strong ethos of public service and a profound pride in meeting customer expectations.

37 A list of PSSSG members is attached as Appendix 1 38 . Notes of significant decision points and actions are made and published on the EU Skills website, www.eus.org.uk. The group operates on a continuous basis and formally meets at least 3 times a year

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8. Given the natural monopoly status of some parts of the sector and the strategic importance of energy prices even where competition is viable and working, the industry is robustly regulated. This regulation has focused on reducing prices and increasing competition but has so far failed to recognise the benefits to the commercial and domestic consumer of a robust framework for skills that maintains and improves the skills base of the sector.

9. Without the broad skills of all participants within the sector, the UK faces a dirtier, more expensive and less efficient future. Some short-term investment in skills will have significant rewards for employers, employees and suppliers but more importantly such investment now will provide the skills that provide the commercial and domestic consumers with lower prices and a wider range of services in the medium and long- term future. In addition there is a strong global market for power sector services and investment in skills is essential if the UK is to become an exporter of new technology services rather than an importer.

10. Whilst we can produce many examples of the benefits of engineering across the power sector to the economy as a whole, one example is the development of distributed generation. Traditionally, generation has been concentrated in areas where fuel is easily accessible and power then transmitted across the UK through high-voltage transmission networks; with the growth of smaller distributed renewable power sources such as small-scale renewable power and combined heat and power networks, there is increasing amounts of intermittent lower voltage generation embedded in distribution networks.

11. This has environmental and economic benefits but it requires the development of new engineering skills across the sector in manufacturing, connecting and operating such plant and managing its interaction with local distribution and national transmission networks. As with other examples that we could explain in a wider evidence session, the development of new technology requires a deep skills base across the UK.

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12. Due to social trends that have led to a decline in the number of students studying science subjects from 16 to 18 and a dramatic reduction in the number of engineering graduates, the UK is particularly poorly-placed to meet the skills challenges facing the power sector.

13. Unfortunately there are number of factors, that have driven this but the three most prominent are as follows:

• The perception that the industry has lower status and lower pay as there is media speculation that the industry should cut prices deeper; • Job security as dramatic cuts to meet regulatory requirements have created a reputation of job security in a key infrastructure service; and • Crucially, the lack of visibility for young people and career advisers of the virtues of the power sector that deters students from bearing the financial costs required to obtain a degree

14. The industry is attempting to tackle this perception and has developed initiatives such as the Power Academy and the Engineering Diploma to encourage students to opt for a career in the sector. This is helpful but we need the support of other stakeholders such as government, regulators, schools and universities if we are to tackle this decline and provide the services the UK needs in future.

Role of Engineering and Engineers in UK’s Innovation Drive

15. The power sector has exciting opportunities to innovate and make greater use of new technology. However, already manufacturers and contractors are frustrated that the introduction and development of new technology is hampered by the lack of advanced professional skills within the sector.

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16. If the UK is to fully realise the potential of innovation and take a lead in global innovation in this sector then skills issues need to be addressed now.

The State of Engineering Skills Base in UK

17. There is a skills shortage that will turn into a skills crisis unless we act now and external stakeholders support the industry. The current age profile and retirement rate when considered against the lead-time of three to six years to train fully competent engineers creates a significant resourcing challenge as the average age profile for engineers is between 45 and 55. By 2010, the industry will experience a significant loss of skilled staff to retirement that will continue up to 2025.

18. The replacement of fully competent Engineers is generally through a Graduate recruitment and training programme (3 years to complete the Graduate Training Programme). Once through the Programme, it is expected that it will take a further 5/6 years for Graduates to be fully competent. There is no swifter alternative for knowledge, experience and know-how, which can only be achieved over time: therefore we must act now to ensure knowledge transfer to the new generation of Engineers.

Roles of Industry, Universities, Professional Bodies, Government, Unions and Other in Promoting Skills and Developing Careers in Engineering

19. There is already a significant gap in skills across the power sector. Generally the energy sector workforce is highly skilled once we consider the currently skewed age profile and related experience but with the substantial lead-time to ensure full competence in highly technically sophisticated sector there is a widening skills gap. Given the nature of our business, any attempt to speed up the training by short-cutting the transfer of crucial technical knowledge and experience carries significant commercial and safety risks.

20. At present, the energy sector predominantly employs white, middle-aged male staff. We first employed the bulk of our current staff population the 1970s

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when social expectations restricted equal opportunity. In recent years, the industry has made significant progress on establishing a more diverse workforce, but a programme to attract a more diverse population into our sector is key to our strategy. We need to work with schools, colleges and universities to attract a broader range of students into scientific subjects that underpins skills in the power sector.

21. We believe the industry’s tradition of providing extensive training and promotion to all staff regardless of their entry point to the organisation is a particular strength of the industry and that this provides significant opportunities for individuals from social groups with less access to high- quality formal academic qualifications and promotes greater social cohesion. The industry’s experience is that diversity of entry routes with different formal academic requirements for entry to the industry has served the various businesses in the industry well by creating a variety of experiences amongst middle and senior managers, and openness to innovation. However this creates higher training costs than other sectors that impose more stringent entry standards: we believe that government and industry regulators should recognise this when assessing operating costs.

22. In light of the issues of demographic change identified by Leitch we recognise the need to retrain adults in power sector skills given the shortage of school and college leavers in future. However we are concerned that the focus of Government training policy is at NVQ level 2 when the need for Britain to maintain and improve competitiveness requires the power sector to develop the overwhelming bulk of its staff to NVQ Level 3, 4 and 5. The domestic and export success of the UK power sector depends upon developing these higher-level skills and we believe that this a priority for the sector that Government should support.

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Conclusion

23. The power sector uses and develops crucial engineering skills that are vital to the competitiveness of the UK. Whilst the industry has taken a lead in developing these skills, we believe that Government, regulators and the educational system have a vital supporting role in helping the industry develop these skills so the sector can continue to provide highly–skilled and fulfilling careers to individuals from a wide range of social backgrounds.

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PSSSG Members

The following organisations are members of the Power Sector Skills Strategy Group

EDF Energy

E.ON UK

Scottish & Southern Energy

Scottish Power

RWE npower

National Grid

Western Power Distribution

CE Electric

Alstom

ABB

Siemens

British Energy

Carillion

Prospect

Unite

Energy Networks Association

Empower Training Services

Department for Business, Enterprise & Regulatory Reform (DBERR)

Institution of Engineering & Technology (IET)

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Memorandum 17

Submission from BAE Systems

Summary

BAE Systems is the UK’s largest employer of qualified engineers and one of only a small number of UK companies developing and deploying leading edge engineering technologies on a global scale. The leadership of our business believes passionately in the need for the UK to retain its world class engineering capability. A vibrant engineering sector provides the economic core that fuels the UK economy. A successful and sustainable defence component of that sector is, in turn, an indispensable enabler of national sovereignty, security and prosperity.

Engineering in the UK faces global competition for markets and skills and for this reason we welcome the Innovation, Universities and Skills Parliamentary Committee’s decision to conduct a major inquiry into the sector. Every aspect of modern society, be it energy, transportation, security, media or communications, is dependent on the contribution of engineering. No successful major economy can afford to possess anything less than a first tier engineering sector. The UK engineering sector today is globally competitive and immensely capable and should be recognised as an essential national asset that must be sustained and developed.

The increasing scale and complexity of our major programmes and the challenges of supporting the armed services on a through life basis led us to conduct a review of our Company’s engineering capability strategy in 2007. This review, involving internal and external stakeholders, including our UK customer, arrived at a set of areas to address that align strongly with the scope of the Committee’s Inquiry. Our goal in making this submission is therefore to highlight critical issues that we believe the Committee may wish to consider as part of its Inquiry and to recommend approaches that should be taken to ensure that the UK Engineering Sector remains successful and vibrant through:

- An education system that generates sufficient quantity and quality of technically qualified people at level 3 and above. - A blend of successful small, medium and large sized enterprises to engender an effective supply chain of engineering capability. - An integrated research base in academia and industry that releases the UK’s potential and generates the necessary enabling technologies, fueling the competitiveness of the sector as a whole. - The wherewithal to invest in the innovation that will yield a world class engineering capability for the future.

We recommend to the Committee that a national engineering strategy should be developed and enacted jointly by all departments of government – including the devolved administrations -, the primary and secondary education sectors, academia and industry to ensure that the sector continues to provide prosperity for current and future UK generations. This national engineering strategy should seek to ensure: o That our brightest and best people are encouraged to seek careers in engineering and technology from the earliest stages of the education process and that their training and education is second to none. In this area the UK would benefit from a more coordinated approach across government, industry, academia and education. o That our research investments ensure the UK’s pre-eminence in all key enabling technologies are enacted in an effective manner that enables industry to deliver the consequent economic advantages. Approaches to public and private research funding

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should be reviewed and changed to ensure that research outcomes generate greater competitiveness and value than is the case today.

o That the contribution of engineers and engineering to the UK economy and society be better recognised by Government and commerce through a greater emphasis on the need for engineers at all levels to be registered within an integrated and coordinated national framework based on robust entry standards and relevant continuous professional development.

Large engineering companies executing complex programmes possess critical mass breadth and depth of engineering and investment capabilities that fuel the UK sector as a whole and their engagement will be essential if the above goals are to be met.

In addition, our submission to the Inquiry makes note of the significant contribution made by the engineering sector to the UK armed forces and the sovereign security of the UK. Defence is a major component of the engineering sector and a significant enabler of the sector’s capability through its track record of innovation, research and technology and investment in people and professional skills. Continuation of the Defence Industrial Strategy articulated in December 2005 is essential to provide the confidence for the UK defence industry to carry on investing in the capability of the UK defence industrial base.

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1. Introduction

1.1 BAE Systems welcomes the Innovation, Universities and Skills Committee’s major Inquiry into Engineering. The leadership of our company believes passionately that the UK’s engineering sector makes and must continue to make a pivotal contribution to the prosperity and security of our nation. To quote our Chairman, Dick Olver "The IUS Committee Inquiry is a significant opportunity to identify those areas where government, industry, the education sector and academia can work together in a more coordinated way to ensure the continued success and vitality of engineering in the UK".

1.2 All the world’s most successful economies have at their core world class engineering sectors that fuel and sustain success in other areas such as financial services and commerce. This is why emergent economies in regions such as the Middle East and Asia choose to invest substantial sums in the creation of indigenous centres of engineering excellence. These nations have recognised that engineering offers a robust and sustainable economic contribution. Any nation that has already developed a significant engineering capability must protect and enhance it to maintain its global position.

1.3 In this submission we draw upon the experiences and perspectives of our own company, and the aerospace and defence sector in general, to demonstrate a case for a national engineering strategy spanning government, the education and academic sectors and industry. As the UK’s largest engineering employer and a business developing and deploying leading edge technologies on a global scale we can offer the Committee a relevant viewpoint on the areas that the UK should address in order to maintain a vibrant, successful and world-class engineering sector.

2. BAE Systems in the UK – A successful business founded on leading edge engineering capability.

2.1 For generations, BAE Systems and its predecessor companies have provided the equipment that the Armed Forces need to protect the nation, its allies and its global security and economic interests. Today, as a global defence and aerospace company, this tradition continues with the company’s 100,000 employees operating in 6 home markets (including the United States, Saudi Arabia and Australia). Over 18,000 of these employees are British engineers.

2.2 BAE Systems demonstrates the contribution that a successful leading edge technology based business can make to the UK’s economy. With 35,000 employees in the UK, our activities directly or indirectly help to sustain over 100,000 UK jobs(1). The company contributes in excess of £4Bn per annum to UK exports and flows down work valued in excess of £2Bn per annum to its UK supply chain(1). Based on the productivity measure of value add per employee, the BAE Systems workforce contributes some 72% more than the UK average, demonstrating that engineering today is a high value, knowledge based industrial sector(1).

2.3 Developing today’s military equipment presents one of the most complex and challenging feats of engineering known to man. Not only are the systems complex and capable, but they are also required to operate in the harshest environments ranging from the ocean depths, the relentless heat of the summer in desert conditions to the freezing conditions experienced in outer space. Very often our products are not just tools of war, but also provide the environment within which our armed forces personnel live, eat, sleep and fight. For example, the Astute submarine must be capable of staying submerged for months on end. To do this it generates its own power, propulsion, light and heat, purifies its water for drinking

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and produces its own air to breath. It does this whilst providing a habitat for the crew in close proximity to a nuclear reactor, whilst emitting less than 1 watt of power (noise) into the surrounding ocean to avoid detection and whilst allowing its own sensors to operate so sensitively, they can hear a ship leave harbour from thousands of miles away. Across the land, sea, air and space domains similar examples of engineering excellence testify to the capabilities of the world class engineers, project managers and visionaries that have consistently maintained UK engineering in the tradition of the early pioneers who delivered many firsts for our nation.

All this is made possible by the engineering excellence that exists within the company, its supply chain, its customer base and its partners in academia and elsewhere in industry. This capability has resulted from a continuous investment in people and technology through training, education, research and development.

The increasing scale and complexity of BAE Systems’ major programmes and the challenges of supporting the armed services on a through life basis led us to conduct a review of our Company’s Engineering capability strategy in 2007. This review, involving internal and external stakeholders, including our UK customer, arrived at a set of areas to address that align strongly with the scope of the Committee’s Inquiry.

3. Capability through people

It is estimated that the UK has some 240,000 registered engineers and technicians contributing to an engineering sector that employs 2 million people(2). This represents both a national asset in terms of capability and also a significant challenge. Ensuring the future supply and sustainment of world-class engineering skills requires a co-ordinated effort across the ‘life-cycle’ of skill attraction, retention and continuous professional development. BAE Systems is a proponent and practitioner of this ‘life-cycle’ approach to people development through its Strategic Education and Development Frameworks.

3.1 Investing in education

3.1.1 It is encouraging that the UK’s drive to increase participation rates in higher education has seen increased numbers of young people enrolling in engineering undergraduate and post-graduate degree programmes however, this may divert school leavers away from pursing modern apprenticeships as those with the necessary qualifications are encouraged to enter higher education. In addition, low rates of female and ethnic minority participation in engineering modern apprenticeships illustrate that the sector has not yet reached out to talent in every section of society. In addition, the fact that the number of young people leaving full-time education in the future will reduce due to known demographic changes creates an imperative to ensure that engineering continues to attract the quantity and quality of people it needs to sustain the sector. BAE Systems believes that this must start with a concerted effort to influence children, their parents and their teachers from an early stage of the education system, a belief we have backed up with action.

3.1.2 BAE Systems has deployed an innovative theatre based schools road show in which over 43,000 9-13 year olds have participated during the last three years. The programme provides young people with an exciting perspective on science, technology, engineering and manufacturing. It demonstrates the relevance of these subjects to their everyday lives and seeks to influence the decisions that they make when choosing GCSE subjects; decisions that can determine whether they will have an option to pursue a future career in engineering and technology.

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3.1.3 The quality of Mathematics and Science teaching in schools is critical to the engagement of young people, their perceptions of the subjects and their desire to pursue those subjects through to A-Level, Diploma, further education and higher education. For this reason, BAE Systems is the first corporate sponsor of the National Science Learning Centre at the University of York, committing £1 million toward what is an innovative project offering high quality professional development for everyone involved in the teaching of science in UK primary schools, secondary schools and further education colleges. Initiatives that encourage the transfer of skills from industry to education, such as the ‘Transition to Teaching’ programme, will also support improvement in the quality of science teaching in schools.

3.1.4 Over 400 BAE Systems schools ambassadors spend at least three days per year supporting teachers in curriculum development and delivery. To assist this activity and to offer the broadest support possible to young people, teachers and parents, the BAE Systems education web site provides curriculum materials, engineering careers advice and information about BAE Systems work experience. The site received 1.5 million visits in 2007, illustrating the power of on-line resources to reach a wide audience.

3.1.5 There is no substitute for giving children direct exposure to the reality of the engineering workplace and for that reason we host over 700 14-16 year olds on work experience placements each year.

3.1.6 BAE Systems believes that these initiatives make a difference in terms of children’s attitudes to engineering. However; we recognise that we are not the only company making these investments and various governmental and non- governmental organisations have programmes that have similar goals. A national co-ordinated framework could widen participation from small and medium sized businesses and align the efforts of industry and government, yielding better long term outcomes. We would encourage the Parliamentary Committee to consider this opportunity as part of its Inquiry.

3.2 Attracting and retaining the best

To ensure the future capability of the engineering sector it is vital young people leaving full time-education are offered opportunities to continue their development through high quality and attractive vocational programmes. The future for engineering within the UK must focus on high value products and services that are globally competitive. The 2006 Leitch report recommended that the UK become a world leader in skills by 2020, in the upper quartile of OECD countries and made specific reference to the need for a strong supply of scientists, engineers and technologists. BAE Systems enthusiastically endorses the Leitch principle that Level 3 qualifications should become the baseline for learning achievement and that the percentage of adults qualified to Level 3 and 4 should increase. For this reason, our recruitment and development programmes focus on Level 3 and 4 entrants and outcomes.

3.2.1 Graduate Programmes

The early career options that BAE Systems offers young people embarking on engineering careers are designed to attract the brightest and the best. Those leaving university with good qualifications in science and engineering are extremely attractive to competing sectors such as financial services. A level of attrition is both understandable and, to a degree, welcome; acumen in engineering and science is both attractive and transferable and the infusion of engineering and scientific awareness across a broad range of sectors will enhance the recognition of engineering across society. Nevertheless, there is an imperative that engineering continues to attract and retain the brightest and most capable people to the profession and to that end must offer a

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compelling career proposition that starts with continuing vocational development.

The BAE Systems Graduate Development Framework (GDF) is the company’s response to this challenge. Through GDF over 200 engineering graduates are recruited each year to embark on a structured programme of personal development that builds upon their academic achievements and equips them with further personal competencies that maximise their effectiveness as engineers and, in many cases, leaders of the future.

3.2.2 Modern Apprenticeships

BAE Systems operates the largest UK engineering apprenticeship programme with over 300 school leavers recruited annually to embark upon a rigorous 3-year programme leading to attainment of NVQs at level 3. This feeds our short term need for engineering operators and technicians. Moreover, a great many of the young people who succeed in their apprenticeships go on, with Company support, to further attainment in higher education.

We welcome the Government’s drive to increase the number of apprenticeships on offer to young people in the UK. In order to capitalise on this initiative it is essential that the advice young people receive about the post-school options available to them stresses the advantages of the apprenticeship route.

3.2.3 A long term investment for the future

Our company and its predecessors have maintained a policy of investing in the recruitment and training of significant numbers of modern apprentices and engineering graduates year-on-year. We consider this to be an obligation to the future success of our business. This type of investment requires a long term perspective. The young people we recruit benefit from developing within a commercial environment that offers an unrivalled breadth of learning opportunities. As engineers they progress to senior roles within and outside of the function and the business, with numerous and notable examples of leaders of businesses and national and regional organisations having been shaped by the opportunity to participate in a BAE Systems early career programme.

We would encourage the Committee to consider, as part of its Inquiry, whether sufficient recognition is offered to the driving influence of large engineering businesses on the overall capability of the engineering sector, and whether there is therefore a long term imperative that the UK continues to attract and sustain such businesses as an essential element of the UK industrial landscape.

3.3 Continuous Professional Development

3.3.1 For professional engineers, over 30 years of continuous contribution and development will follow their initial education and early career vocational learning. Looking back 30 years from today, it is easy to see how the profession has changed, with the emergence of computing and communications technology radically altering the way in which engineers make their contribution, albeit many of the fundamental and enduring principles of engineering remain unchanged. In our own industry, the threats faced by the armed services have changed significantly and with it the equipment and services they need from the defence industry to fulfil their role of defending the UK.

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3.3.2 Change is a constant and we must ensure that engineers have opportunities to extend and refresh their learning over the course of their careers. Within BAE Systems, the engineering function invests in continuous professional development through internal programmes and externally provided postgraduate courses. Partnership between academia, industry and the professional institutions is a key enabler of continuous professional development. We work with Universities such as Loughborough, UCL, Cranfield, the OU and Cambridge to offer our engineers opportunities to continue to learn and develop their engineering capability.

3.3.3 Undergraduate engineering teaching will remain an important role for academia however its role in the continuous professional development of practicing engineers must be strengthened and innovative ways found to ensure that University offerings are relevant to industry and delivered in a way that offers accessibility to engineers in large companies, government and SMEs.

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3.4 The contribution of engineering and engineers to society.

3.4.1 The UK engineering sector needs to up skill to offer and deliver high value engineering products and solutions that will make the sector competitive in a global context. The national strategy to achieve this outcome must address UK perceptions about engineering and the status of engineers in our society.

3.4.2 Surveys suggest that 41% of the UK population have very little knowledge about the engineering profession, a figure that rises to 61% amongst 16-19 year olds(2). Engineers do not uniformly share the recognition afforded to other qualified professionals such as those practicing medicine, law and accountancy. Data suggest that the salaries commanded by engineers are significantly lower than those enjoyed by professionals in other fields. Remuneration is ultimately governed by the laws of supply and demand. As industry progressively seeks more capable engineers to meet the high value complexity challenges of the future, today’s skill shortages reported by 57% of employers will become ever more prevalent unless engineers can be encouraged to remain within the profession and continuously develop their skills to meet industry’s future needs.

3.4.3 The recognised registration of engineers at every level from technician upwards could make a major contribution to raising the standards of the profession and encouraging relevant continuous professional development. Such registration must align to the capability needs of industry where the majority of engineers reside. Standards must be universal and benchmarked internationally. Such an outcome will require co-ordinated action by the bodies that oversee engineering standards, industry and academia. Meaningful registration standards would yield rewards in terms of the standing of the profession and its ability to attract and retain high calibre people. It would also offer government opportunities to reinforce the need for professional standards through requirements it stipulates in procurement programmes.

4. Capability through Research and Technology

4.1 Through its research programmes the Company continually extends the boundary of science and engineering to identify ways to maintain the nation’s defence capability more affordably and at less risk to armed services personnel. This is typified in the ongoing work on autonomous systems (intelligent unmanned systems) where the company is leading investments on algorithms and architectures, image recognition, data fusion, decision-making, mission planning, data mining, low-power systems, novel control systems, intelligent structures, prognostics and diagnostics, low bandwidth and novel communication techniques. Individually each represents a strand of world-class research that has applications throughout the economy: combined they offer system solutions capable of operating intelligently whilst in harms way, reducing the burden and risk to our service personnel.

4.2 Every year BAE Systems undertakes in excess of £1Bn of research and development activity ranging from combat aircraft and nuclear submarines to nanotechnologies. We deliver our programmes through a network of suppliers and industrial and academic business partners. Our company has strategic partnerships with four leading UK Universities in Aeronautical Engineering (Cranfield), Support Engineering (Cambridge), Systems Engineering (Loughborough) and Distributed Data and Information Systems (Southampton) whilst continuing to work with dozens of other UK academic institutions. We have an active role managing two of the MOD’s defence technology centres (Autonomous Systems and Human Factors) and have worked in partnership with Loughborough University and the East Midlands Development Agency to establish the Systems Engineering Innovation Centre (SEIC). We also play a key role in a range of other national R&T initiatives, such as

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ASTRAEA, a programme that seeks to open the UK airspace to the routine, non- segregated operations of unmanned air vehicles by 2012.

4.3 Investment in research and development of the scale undertaken by companies such as BAE Systems is sustained by the prospect and actualisation of the revenue it generates. Alignment of research outcomes with industrial applications is the surest way of delivering the scale of UK technological research investment that will be needed to ensure that the engineering sector remains globally competitive. Our strategic partnerships have taken us a step toward ensuring that the research output of the universities we work with aligns with market demand however, the major prize for the UK would be to extend the principle of research alignment more broadly through a far reaching review of the manner in which research is funded through both public and private investment. In the specific field of defence, continuation of the Defence Industrial Strategy articulated in December 2005 is essential to provide the confidence for the UK defence industry to carry on investing in the capability of the UK defence industrial base.

5. Fostering engineering innovation.

Innovation happens when diverse people and organisations are brought together to create environments where new ideas can be translated into solutions to customer needs. In this section we again refer to BAE Systems experience with Unmanned Air Vehicles, an example of government, academia and industry working together to create ground-breaking solutions that contribute to the safety and security of our armed services in hostile environments. Innovation is not the preserve of large organisations such as BAE Systems however, the leadership and resources of such organisations are essential if the UK is to sustain an engineering sector that maintains our tradition of innovation.

5.1 Autonomous Unmanned Air Vehicles (UAVs) will offer the UK armed services a capability to conduct military operations more effectively than is the case with today’s manned systems and with less risk to military personnel. Having identified autonomous UAVs as a market opportunity, BAE Systems has invested to create world class technology and provide the UK with an essential sovereign capability. UAV demonstrator flights have led to the jointly funded Taranis programme that will demonstrate fully integrated autonomous systems and low observable features. The Taranis programme will be led by BAE Systems with contributions from other UK partners including Rolls Royce, QinetiQ and Smiths Aerospace.

5.2 The autonomous unmanned capability that has been demonstrated in the Air Sector is already being exploited in land and sea and has numerous potential commercial applications that are being actively pursued. As a case study in innovation it offers a number of key lessons:

o Ideas may be explored by inventors in garden sheds however commercially exploitable innovation requires in depth expertise and significant investment to achieve operational outcomes for customers. o Partnership and leadership are essential to ensure that the contributions of diverse industrial, governmental, academic and other parties are brought to bear to secure viable outcomes.

5.3 Should the Parliamentary Committee wish to examine autonomous UAVs as an Innovation case study then BAE Systems would be pleased to offer additional evidence to support its considerations.

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6. The defence sector’s contribution to the UK(1).

The DIUS R&D scoreboard showed that UK companies invested £2.4Bn in aerospace and defence research in 2006, making the sector the UK’s second largest by R&D spend.

10 UK engineering companies rank in the top 100 largest global defence businesses.

In the period 2002 to 2006 the UK secured defence exports valued at £41Bn.

Over 300,000 UK jobs are dependent on UK defence spending.

As the UK’s largest defence company and employer of UK’s greatest concentration of qualified engineers we believe that there is a direct correlation between the vitality of the UK defence sector, the UK’s engineering capability and the security and prosperity of the nation. The UK Defence Industry is the world’s second largest and is founded upon a world-class engineering capability. The industry sustains investment in research and technology, people and engineering processes that benefit not only its own purposes but also, through academic partnerships and its supply chain, the broader UK engineering sector.

We recognise that the Committee’s Inquiry is not centred on any particular industry sector. However we would encourage the Committee to identify and recognise those key industries, like defence, where the UK has world class capability and critical mass and therefore serve as “pump primes” for the capability of the engineering sector as a whole.

Attributed Information Sources

(1) Study of BAE Systems Economic Impact to the UK Economy – conducted by Oxford Economic Forecasting and Geo Economics (Due for publication – April 2008). (2) ETB Research Report – Engineering UK 2007 – A Statistical Guide to Labour Supply and Demand in Science, Engineering and Technology (December 2007).

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Memorandum 18

Submission from The Engineering Development Trust

Executive summary • The Engineering Development Trust is an independent educational charity that encourages young people to take up careers in science, engineering and technology (SET), and is a leading provider of work related learning programmes targeting 12-21 year olds linking schools with industry and universities. • The inspiration and motivation for young people to pursue the subjects needed for careers in SET requires regular exposure throughout their school life to the opportunities available within industry and higher education, empowering them to make informed choices. • Enrichment programmes such as provided by the EDT are an effective means for providing this inspiration. Whilst there is a perception that there is a confusing myriad of schemes and activities available, there are only a small number of organisations capable of delivering quality activities across the UK. • Some progress has been made to promote these in a more structured manner, but essentially these organisations, whose programmes are tried and tested, lack the resources for growth that will enable them to penetrate and deliver into all schools.

1. The Engineering Development Trust (EDT) ( www.etrust.org.uk ) is an independent educational charity whose mission is to encourage young people to fulfil their potential through careers in science, engineering and technology (SET). 2. The EDT is a leading UK-wide provider of work related learning programmes targeting 12-21 year olds and currently engages with some 5000 students every year, many of whom are tracked into first- job destination. 3. EDT aims to inspire and motivate young people into choosing a SET career by giving them the opportunity to experience real life exposure to industry, business and higher education. The awareness thus gained empowers the students to make informed choices at key stages of their education. All EDT schemes are founder members of the Royal Academy of BEST programme as well as the Learning Grid. 4. EDT delivers 4 main programmes: i. The Year in Industry (YINI): Industrial paid degree level placements for students in the year out before or during their degree course. Headstart Courses: 34 summer courses at UK universities assisting informed choice regarding technology based degrees and careers.

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ii. Engineering Education Scheme: Links student teams in year 12 with local companies to work on real problems over a 6 month period. iii. Go4SET: Links teams of year 9 pupils with companies and universities on a 10 week SET experience. 5. Since its establishment more than 20 years ago, more than 40,000 students have benefited from the EDT experiences. One-third of EDT participants in recent years are female, a proportion which is increasing each year and reflects efforts to widen participation. 6. Young people require role models and an awareness of what SET careers can offer them in the modern global economy. Enrichment activities are an effective and efficient means of providing real world STEM experiences. Evidence from employers and universities indicates strongly that participation in these programmes provides students not only with a view on to the world of work relating to engineering, science and technology, but also important life skills such as team working, communication, project management, report writing, time management. Universities value such participation when considering applications for admissions. Employers value extended work related experience, and students gain better degree standards. (Henley Management College report for Royal Academy of Engineering “Educating Engineers for the 21st century” March 2006.) 7. The formal curriculum cannot by itself create the necessary inspiration and motivation to students to pursue the subjects required for careers in SET. The link with potential careers in modern industry and business is inadequate. Companies and universities recognise that they need to do more to get the careers message across to young people. Many of them do interact with schools but often this interaction is on a very local basis. 8. Many students who participate in an enrichment activity, which may ignite some interest, thereafter have no opportunity to develop this further; worse still, their interest may well be captured by other disciplines. We know that students taking the “right” subjects “leak away” from STEM at all stages. Even at the final stage only 50% of graduate engineers go into engineering as a first job. There is evidence that these activities do influence attitudes towards SET, but to have a lasting impact there needs to be follow through. There is therefore a need for a continuum of enrichment activities to be available at all levels throughout the education pipeline which are relevant to the age and knowledge of the young people. EDT together with other organisations such as Smallpeice Trust and Young Engineers, under the umbrella of the Royal Academy of Engineering’s BEST programme, can provide such a continuum.

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9. Many commentators consider that there are too many organisations offering extra curricula STEM enrichment activities, leading to confusion amongst schools and indeed industry. 10. In reality, there are only a few organisations and schemes which have a nationwide reach, and provide the required quality control. The need for a structure within which schemes can be measured for quality and performance by those using them is essential. However, a lack of resource and structure means that the required growth to make these programmes available to all schools is too slow. Attempts are being made through the Royal Academy of Engineering’s lead with “Shape the Future”, and the Learning Grid, and the governments STEM report implementation, to provide a much needed structure within which schools and indeed companies can learn of the quality programmes available; but if these are to have much more significant penetration into schools there needs to be greater support for existing organisations with the track record and capability to drive the growth in delivery.

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Memorandum 19

Submission from the Engineering Professors’ Council.

Summary The Engineering Professors’ Council has identified a number of issues, which it regards as being of particular significance. These include the status of professional engineers and engineering. The role of engineers and in particular their importance in innovation, development and sustainability and hence their importance to the UK economy are stressed.

The shortage of engineers and the problems of attracting students are looked at and some possible courses of action outlined. The need for more timely and well informed careers advice is also highlighted. The role of engineers in research and development and the need for well resourced university research is discussed as are the EPC’s concerns with the proposed new funding mechanism for Research Excellence. The proactive work being done by the EPC in looking at the future of university engineering education and the real costs of providing the sort of world leading degrees that the UK should aspire to offer is outlined. The EPC welcome this enquiry.

1 The Engineering Professors’ Council represents the interests of engineering in higher education. It has over 1600 members in virtually all of the UK universities that teach engineering. They are all either professors or Heads of departments. It has as its mission the promotion of excellence in engineering higher education teaching and research.

The role of engineering and engineers in UK society

2 The role of engineering and in particular professional engineers in UK society is not sufficiently appreciated by Government, the media and the population at large. Indeed many do not understand the difference between the professional engineer and the mechanic [1] The Profession of Engineering is regulated by the Engineering Council UK, and Chartered Professional Engineers are Corporate Members of one or more of the Public Statutory Regulatory Bodies i.e. the Engineering Institutions. There is also little understanding of the role played by professional engineers and engineering in the provision of societal necessities such as power and clean water or the production of artefacts essential to the quality of UK life including for example pharmaceuticals, computers, electrical power generation, mobile telephones, aircraft and the motor car.

3 Of equal importance, is the role of engineering enabling society to act sustainably by ensuring, that the needs of the current generation are met whilst not compromising the rights and needs of future generations. There is a significant shortage of regeneration engineers with the skills to engage in this key area. Engineering is by nature a multi disciplinary discipline, which has historically tended to focus on

129 technical skills. Increasingly, engineering education is embracing the broader skills necessary for sustainable development.

4 Professional engineers are pervasive throughout most industrial and employment sectors. They make an important contribution to the financial sector within the UK by occupying senior positions in the FTSE top 100 companies. [2] Many, who have studied engineering at degree level, work in non cognate areas so the core skills of engineering (team working, problem solving innovation and creativity) are applied to the benefit of society and the economy in many and various other ways. For example, engineers can be working as teachers, financiers, accountants, project managers and politicians. [2]

5 Engineering will have to undergo a step change in the next few years as we face up to the challenges of climate change, ever increasing energy demand, poverty alleviation, lifeline support systems, waste as a resource and the other challenging requirements to make UK society resilient to the inevitable exogenous changes. UK engineers will make an impact on these future global challenges not only by working in the UK but also by their work overseas. The implementation of society’s response to climate change is exclusively in the hands of professional engineers.

6 The creation of new products and processes and getting them to the market quickly, is the key to the success of the manufacturing, processing and construction industries and therefore to the UK manufacturing economy. If the UK’s innovation drive is to succeed, engineers will need to be involved not only in research but also during design, implementation, maintenance and decommissioning. Engineers are making a direct contribution to the economy of the future by working on products ranging from those found in the developing field of nano-technology, through biomedical devices and transport systems to major projects such as novel approaches to power generation as well as through consultancy services.

The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity

7 The supply of professional engineers is of considerable concern. Unlike many subjects engineering at undergraduate level builds directly on previous study. The numbers of young people qualified to embark on engineering studies has declined in recent years as the numbers studying mathematics and physics to an appropriate level has fallen. [3]

8 We have major concerns about the supply of teachers of mathematics and physical sciences in secondary schools and the attitude of primary school teachers towards these subjects. It is clear that there are problems concerning both quality and quantity of secondary teachers. Teachers without the relevant science qualifications are teaching some science subjects. [4]

9 Changes in the mathematics curriculum have also affected engineering and mean that topics which were previously included in the A level curriculum now have to be covered in the first year at university with inevitable consequences for the total amount of material to be covered. This has meant the time taken to achieve a professional accredited degree programme has increased from three to four years as a

130 result of the Finniston Enquiry [5] and latterly the change to UK-SPEC [6] The new diplomas in engineering, manufacturing and construction potentially offer new opportunities for recruitment because engineering will be part of the school curriculum. There was concern about the level of mathematics included in the advanced diploma but this has been ameliorated as a result of input from EPC who have developed a module that places mathematics in context and would be acceptable to university admission officers. It will be interesting to see if the specifications for the recently launched “Extended Diplomas” will include suitable amounts of advanced mathematics necessary for University entrance in Engineering. We hope that the specification for the new extended diplomas will provide a suitable and attractive route into engineering for the most academically able young people. Ideally this would stretch and challenge them.

10 A key area of concern is that engineers are traditionally males. There remain long- standing concerns about the number of women studying engineering and, despite many efforts to increase both the numbers and the percentage of female recruits there has been little change over the last few years. Numbers have remained static at around 15%. [7] This is at a time when the numbers of women studying at university have increased dramatically. This is important when making engineering decisions that impact on society but it also implies that a significant number of talented young people are not attracted to the engineering profession. There are also concerns about the ethnic make up of recruits to engineering [8]. In the construction industry, for example, it is anticipated that within six years construction engineers and civil engineers will be drawn from only 20% of the working population.

11 There is a major role for improved, well-informed career advice for young people from advisers who have suitable and sufficient knowledge of engineering and the careers that it offers. It may also be important to look at some of the general public’s conceptions and misconceptions of engineering so that young people who express an interest in engineering are not deterred.

12 All of this is against a background of numerous initiatives designed to enthuse young people about engineering and the exciting opportunities that it offers, and the underlying negative trends in the interest in science and engineering as careers implicit in the evidence gained from Project ROSE [9] Either the initiatives do not work or without them the situation would be even worse. All the existing evidence on the effectiveness of careers initiatives is based on short-term satisfaction polls. It is clear that there is a need for a serious longitudinal study of the factors, which affect the decision to study engineering and to have a career within it.

The importance of engineering to R and D and the contribution of R and D to engineering

13 Engineering, by definition, is creative and innovative so that R&D is at the heart of high quality engineering. Mechanisms need to be developed to ensure that good ideas developed in the UK can be brought to the market. Engineers need to be involved at all stages from the initial concept to the vital disposal stage of any project.

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14 Engineering R & D is a vital activity distinct from purely scientific research. It seeks to answer the question of how to use knowledge for the benefit of mankind rather than seeking understanding of the cause of a particular observation. Both are important and the best engineering research builds directly on the best scientific research (and vice versa through, for example, instrumentation). They should not, however, be judged on the same bases and EPC believes that HEFCE’s current plans for a new Research Excellence Framework are unhelpful in this regard. This view is shared by Research Councils UK [10]

15 A vibrant, healthy and self-confident engineering research community in the UK is vital for the future well being of its economy and for the quality of life of its citizens. New technologies are developing quicker and coming to the market faster. The UK engineering research community (academic and industrial) must be able to play an important role in that process at the highest intellectual level. This requires the recruitment and retention of the best quality minds into the study of engineering at all levels, a process, which as we have noted above, begins in the primary school. It is of considerable concern that the numbers of engineering graduates progressing to PhD level studies has remained static for a number of years, as evidenced by the recent Royal Society report [11]

16 Ensuring a vibrant research philosophy within educational establishments is not only of importance to the demand for new materials, products and processes but also informs teaching, ensuring that future engineers are able to deal with the demands.

The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering

17 Clearly all have an important role. Universities can provide the academic part of the formation of professional engineers and can contribute to the continual updating of skills, which are needed throughout their working lives. The majority of engineering degrees awarded in the UK are accredited. That is they are subject to checks by the appropriate professional engineering institution to ensure that they provide the academic rigour required as part of the overall training of the engineer. Suitable experience is then added to this. Of course the academic education of the trainers in industry is also likely to have originated in the universities.

18 Professional Institutions take a proactive role in encouraging best practice in engineering education and ensuring that programmes are designed to meet the needs of industry. This accreditation process involves industry and professional institutions maintaining regular contact with universities thus creating a network of excellence. This is demonstrated by the fact that the UK is the second most attractive country in the world for overseas students to study engineering. Studying engineering at university level is a major attraction for foreign students, and the enormous contribution that is made by their fees and related expenditure to the UK’s economy is not always properly acknowledged.

19 Recently EPC together with ETB commissioned consultants to look at the real costs of providing engineering degrees. [12] It is clear that there is considerable

132 under-funding and that extra money is required simply to enable engineering departments to stand still. However, even more money will be required if engineering departments are to be properly funded to allow for continual up dating of equipment and facilities, the development of new and innovative courses and the provision of increased support for students, seen as essential to improving retention. The Chairman and Chief Executive of the Russell Group [13] have recently echoed this concern

20 There is also considerable concern within the engineering and science higher education community that the current higher education qualifications framework within the UK is not sustainable. It may be that in future due to worldwide moves in higher education as a result of the Bologna initiative changes in the length and content of courses will be required. The recent Royal Society report and enquiries conducted by the QAA appear to support that view. If it is necessary to enhance or lengthen UK higher education qualifications to accommodate international pressures then additional funding will be required as, as has already been explained, the sector is already under considerable financial pressure, which is affecting the quality of the education delivered.

21 EPC has recognised that it is time to think carefully about the sorts of engineering degree that are needed in the 21st Century and has set up a working group to look at the possibilities; membership includes representatives of the other stakeholders in engineering formation. Sandwich courses offer the opportunity of accelerating the experience of students and encouraging universities and industry to work more closely together. It may be possible to offer financial incentives possibly via tax breaks to encourage industry to offer such placements.

22 There are also concerns about the recruitment of engineering graduates into engineering careers. At present only about a half of graduates remain in engineering and anecdotal evidence suggests that it is difficult for engineering companies to compete for the best quality students with financial services and other employers both in terms of salary offered; but also and perhaps more importantly in career progression. It may be that it is especially difficult for the small and medium sized companies who employ so many of our engineering graduates to offer appropriate training and career progression. The recent LiNEA study demonstrated the need for improved support and feedback for young graduates during the critical postgraduate training phase.

Conclusions

23 The EPC welcomes the Select Committee’s Inquiry and considers both that it is timely and that it deals with issues of high importance for the future of the UK. As a body representing the interests of practitioners in Higher Education, we would like to make the following RECOMMENDATIONS and thus urge the Government to: • do all in its power to enhance the status and public perception of professional engineers and engineering • ensure that standards of science teaching in all UK schools are at the highest level possible by the appointment of sufficient numbers of properly qualified science teachers.

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• make provision for those students who excel at science to be stretched further by the provision of a broad range of intra and extra curricular activities, possibly using the new advanced extended engineering diploma to do this. • avoid damaging university engineering research by modifying the proposed implementation of HEFCE’s proposed research excellence framework • enhance funding levels within UK engineering departments to enable them to update teaching equipment and facilities • promote greater involvement by women and ethnic minorities in engineering higher education • promote, by tax incentives and otherwise, a healthy, vibrant engineering research community involving high level interactions between academia and industry. We would be delighted to meet the Select Committee and discuss the issues involved at greater length.

24 References [1] “Public attitudes to and perceptions of Engineering and Engineers 2007” Report prepared for the Royal Academy of Engineering and the Engineering and Technology Board, September 2007 [2] “Engineering UK 2006: a statistical guide to labour supply and demand in science, engineering and technology” Engineering and Technology Board, December 2006 [3] “Royal Society Press Release 2006 A level Results” August 2006 [4] “ Campaign for Science and Engineering Press Release” 29 August 2006 [5] “Finniston Report, A report of a committee of Enquiry into the Engineering profession” January 1980 [6] “UK SPEC” the Engineering Council (UK) March 2004 [7] UCAS Annual Datasets from http://www.ucas.ac.uk/he_staff/stat_services1/stats_online/. [8] “Attracting More Entrants into Engineering: The UK Perspective” Maillardet, Martland and Morling IEEE conference Munich November 2007 [9] Times Higher Education Page 4 February 28 2008 [10] “How do learners in different cultures relate to Science and Technology?” Project ROSE Asia-Pacific Forum on Science Learning and Teaching, volume 6, issue 2 December 2005 [11] “A Higher Degree of Concern” A report prepared for the Royal Society January 2008 [12] “ The Costs of Teaching Engineering Degrees” A report for the Engineering and Technology Board and the Engineering Professors’ Council by JM consulting November 2007 [13] Times Higher Education March 5 2008

March 2008

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Memorandum 20

Submission from the New Engineering Foundation

Submission by Professor Sa’ad Medhat, Chief Executive, New Engineering Foundation.

Executive Summary

1. Further Education (FE) colleges are responsible for much of the actual and potential supply of engineering skills. However, the sector is often overlooked by relevant stakeholders, with attention dominated by the Higher Education Institutions.

2. Of particular concern is New Engineering Foundation (NEF) research identifying a lack of up-to-date industrial experience amongst FE lecturers in engineering; and that funding of these subjects is insufficient to provide the necessary equipment.

3. Since 2004, the NEF, with support from the Gatsby Technical Education Projects, has been investigating and supporting the opportunities for Knowledge and Technology Transfer (KTT) between FE colleges and local industry. The NEF Fellowship Programme grants bursaries of £12,000 for FE faculty to take up secondments in businesses and now covers over 200 lecturers in over 80 colleges.

4. With support from the Department for Innovation, Universities and Skills, further research is being undertaken with educators, entrepreneurs and policy-makers to expand KTT schemes in the FE sector. This includes a series of nationwide focus groups hosted by Regional Development Agencies.

5. There are five central issues to address in the further promotion of KTT between engineering enterprises and engineering educators: a) college leadership and governance; b) college access to market intelligence; c) capacity-building in and between colleges and businesses; d) adapting college administration and human resources systems; e) long-term availability of funding to colleges.

6. Top-line recommendations include: i) systems for auditing employer- college links; ii) encouraging higher-level training that reflects local and regional needs; iii) reconfiguration of training budgets to allow staff regular, short returns to industry; iv) employer leasing of workshop space or equipment to colleges; v) RDA-led employer engagement strategies to support communication with colleges; vi) a review of Learning & Skills Council Policy to introduce unit-based funding for qualifications; vii) improving college-university connectivity through HEFCE, LSC, the QAA and OfSTED.

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Introduction

7. The New Engineering Foundation (NEF) was established in 2004 by Professor Sa’ad Medhat to address the unrealised potential of engineering training in further education (FE) colleges, particularly with regard to knowledge transfer. It supports the development of vocational education in science, engineering and technology through providing policy advice and advocacy, undertaking and commissioning research studies and impact analyses, and developing and delivering educational programmes and resources.

8. Recent projects include the establishment of on-line masterclasses in science and engineering, and programmes designed to help Higher Education fulfil the economic potential of Work-Based Learning. Most significantly, the NEF provides financial support of up to £12,000 per time for FE lecturers to take up secondments with local engineering and technology companies and improve their current knowledge of industry best-practice and cutting-edge developments.

9. Sa’ad Medhat was an active member of the Higher Education Funding Council for England’s (HEFCE) Quality Assurance in Learning and Teaching (QALT) Committee; and was a member of the advisory panel that led the development of HEFCE’s Centres for Excellence in Teaching and Learning (CETLs) and subsequently acted as an assessor of the initiative.

10. He is a Visiting Professor at Bournemouth University, a Court member of the University of Bristol, and a member of the Industrial Board at Loughborough University. He is also a member of the Steering Groups responsible for the development of the new Specialised Diplomas in Engineering and Manufacturing and he continues to be actively involved with the Specialist Schools and Academies Trust (Engineering).

11. Other industrial and academic positions he has held include:

Founding Director of the Engineering Technology Board- a professional association Chairman of Productivity4you Limited – an e-learning technology provider Vice President of Futuremedia PLC, a NASDAQ technology Company Founding Principal and Chief Executive of Dubai University College (modelled on the British educational system with extensive partnership links to UK HEIs) IBM Professor of Concurrent Engineering Intergraph Professor of Electronic Design Automation First Head of Research at Bournemouth University

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The challenges of improving Knowledge and Technology Transfer (KTT) in Further Education.

12. Knowledge transfer is the action of transmitting both tacit and implicit knowledge among various stakeholders in an educational and/or entrepreneurial project. In pedagogical terms, it describes the packaging and transmission of knowledge to learners.

13. Technology transfer is the process of developing practical applications from the results of scientific research and development with for commercial exploitation. Successful technology transfer requires different kinds of knowledge: that which creates the technology; the knowledge of how to operate it; and that concerning the value and the quality of the technology. Any successful technology transfer will require some form of knowledge transfer.

14. The New Engineering Foundation proposes that government should help enable greater knowledge and technology transfer between FE colleges and industry in order to improve the competitiveness and the innovation level between such collaborative organisations so that the UK’s economic potential and students’ employment potential can be fulfilled.

15. According to the annual report 2006/07 of the Technology Strategy Board’s Knowledge Transfer Partnership (KTP), for every £1 million pound invested (in the case of KTP, by the Government), there is an annual £2.9 million profit increase in the economy, 43 new jobs, and 190 existing staff trained.

16. In FE colleges, KTT activities should involve lecturers and business representatives sharing their collective expertise to and applying it to commercial challenges. This can include:

Short training courses for industry Joint college-industry course development Joint college-industry product and sub-system development including product testing Joint college-industry process and market development Applied research and development Collaborative funding support for innovation

17. In essence, the teacher becomes the learner, but in a way that enthuses and educates them in their subject with clear pedagogical benefits for the ‘final’ learner: the engineering student.

18. A survey of 49 FE colleges and over 100 businesses, conducted between March and June 2005, by the NEF (with the support of GTEP, Gatsby Technical Education Projects) identified the need to:

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Close the gap between FE and Higher Education to enable a more cohesive provision of educational and community-related services.

Provide a springboard for raising internal staff performance, capabilities and capacity to enable them to address level 4 and Higher Education provision.

Create an ‘ecosystem’ that will drive synergies and partnerships between colleges and businesses that address and meet current and anticipated economic needs and opportunities as well as developing higher performance work practices.

Ensure subjects of strategic importance are maintained and further developed as well as raising student competence and the demand for strategic provision in science, engineering and technology.

Create opportunities for supplementing income streams for colleges that will enable them to be less susceptible to central funding cuts.

(source: Knowledge and Technology Exchange in FE Colleges; NEF, September 2006)

19. In November 2006, the NEF (again with the support of GTEP) surveyed 200 lecturers in the FE sector and found that those teaching in subjects that should be considered central to the development of a high-skills, high-technology, globalised economy were not engaged with the relevant business and industrial sectors. The claims around key economic subjects were as follows:

20. Subject % level engagement by FE lecturers

Aerospace and precision engineering 25% Advanced manufacturing 23% Advanced materials and composites 15% Process and chemical manufacturing 12% Microelectronics 8% Rapid and new construction techniques 7% Nuclear 4% Advanced telecommunications 4% Environmental technologies and renewables 2%

(source: Building for the Future: Understanding the Needs of Lecturers of Engineering and Technology in FE Colleges; NEF, November 2006)

21. In 2008, the NEF, in collaboration with the DIUS, has begun holding a series of 6 nationwide focus groups, hosted by Regional Development Agencies (and including employers, Sector Skills Councils and representatives of both FE and HE), in order to identify the obstacles to expanding KTT - and some possible solutions.

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22. The headline aim of these groups is to inform what a national KTT framework might look like for FE, that will enable more colleges to play a fuller part in the provision of innovative KTT solutions with business and the community, thereby strengthening the overall economic and social development at local, regional and sectoral level.

Issues of leadership and governance.

23. Internal motivation and support for individuals in colleges promoting and taking part in KTT can be greatly enhanced by the right leadership and the reflection of its values throughout the institution.

24. Colleges are beginning to appoint individuals on their senior management teams (e.g. deputy or assistant principals) with responsibility to drive forward employer engagement activity. Predominantly this activity focuses on meeting skills needs and not necessarily a broader KTT agenda.

25. KTT in its broadest sense has not as yet been embedded in the ‘fabric’ of FE colleges. There is a need to re-orientate college provision to support KTT as a core activity through longer term strategies that seek to bring cultural and behavioural change.

26. Colleges already engaged in KTT have recognised the agenda’s cross- cutting nature – it can apply to all subject areas and economic sectors – yet there is still a need for many of those colleges to clarify what it means in practice to be a business-facing college and the implications of moving in this direction.

27. Clarifying the ‘offer’ to business will help FE colleges to create the coherence required as well as to build on and extend existing activity (and business links), which have tended to be highly localised and short-term.

28. Mitigating the risk of broadening or refocusing a college’s offer to encompass KTT is still a central concern for senior managers. Colleges serious about this agenda have had to make substantial investments to build capacity and realign structures, processes and systems.

Issues of market intelligence, dynamics and growth.

29. There appears to be a lack of high understanding within colleges of market opportunities and what business needs - and within businesses, of what colleges can offer.

30. Small enterprises, in particular, are not engaging in higher value added activity which is likely to demand new knowledge and innovation. Those that are tend not to be aware of how FE colleges could help.

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31. Language continues to be a barrier to engagement. Building a shared understanding of where each other is coming from can prove problematic and gets in the way of establishing successful partnerships between the FE sector and business.

32. Existing relationships with business tend to be focused around an individual who has recognised expertise in a particular field and/or a specific project. As such relationships tend not to be strategic.

33. Where colleges are engaging in KTT, this typically involves larger enterprises. Untapped opportunities exist in relation to the SME market in which it has traditionally been more difficult to sustain a ‘critical mass’.

34. While colleges are working with and making use of intermediaries (e.g. Business Link, Train to Gain skills brokers, Sector Skills Councilss), relying on these agencies to provide sufficient volume of new business is not a viable long-term proposition. Increasingly, internal effort will need to be directed towards market building activities such as the use of robust labour market information to underpin a planned and well targeted approach to KTT, which is likely to exploit a college’s areas of specialism.

Issues of capacity and capability.

35. Greater capacity and capability have been identified as the most limiting factors in FE-business KTT activity.

36. Many colleges have invested in employer-facing teams, however, the extent to which these teams are well integrated into and can influence the workings of a college’s faculties varies – a factor which affects the responsive of a college in designing a solution to meet an identified business need

37. Expertise in training needs analysis at an organisational, business unit, team and individual level are lacking within the college sector, and the degree to which businesses are clear about their specific needs varies

38. A limited amount of research and development is conducted by FE colleges and where it is the activity is very much at the margins – a factor which again is seen as limiting the potential of the sector to support KTT activity

39. Interventions to support staff development have been initiated – locally, regionally and nationally – yet more needs to be done to ensure colleges are ‘customer focused’ and deliver a professional and responsive service

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40. The extent to which FE colleges have established partnerships with other providers to create an integrated ‘package’ of KTT solutions has been limited to date – potential therefore exists to build collaborative arrangements with other FE colleges, universities and indeed private sector consultancies.

Issues of structures, systems and processes.

41. College structures are being realigned and ‘gateways’ for business have been established to improve access to FE college expertise and facilities.

42. Investment is also being made by many colleges to ensure relationships with a wide range of customers are better managed, e.g. CRM systems are being introduced to track interactions and collate intelligence on any business with which a college engages.

43. Bureaucracy attributed to national and regional funding streams (e.g. Train to Gain) has worked against strong FE-business relationships emerging and in many instances colleges have had to protect businesses from the nuisances of these different funding regimes

44. Quality assurance procedures which are perceived to be ‘fit for purpose’ for mainstream educational provision and felt to hinder the design and delivery of responsive solutions.

45. Human resource policies and procedures (including working hours and reward strategies) were also identified as ‘getting in the way’ of encouraging college staff to adopt a more flexible approach to working in responding to business (customer) needs.

Issues of finance.

46. Funding (and outputs required of that funding) drives behaviour and affects the dynamics of the relationship between FE colleges and businesses – as a consequence KTT activity has to date been focused on the ‘here and now’ rather than creating longer-term, more sustainable FE-business relationships.

47. New funding streams, which mitigate a proportion of the risk for colleges, are required to build capacity in the FE sector to better respond to the KTT agenda.

48. The FE reform agenda has the potential to significantly impact on the nature and scale of KTT activity that is supported by FE colleges – an increasing number of colleges are likely to become ‘business-facing’ and their reliance on mainstream funding to support young people engaging in learning is likely to be reduced.

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Principles to support the improvement of KTT in FE (further findings of the NEF/DIUS focus groups to date).

49. The opportunities for FE colleges to build and sustain a market for KTT activity lie in extending existing and exploiting new business links, especially in respect to SMEs.

50. Colleges are also likely to establish regional and local markets that align a college’s expertise with sectors of strategic importance.

51. The characteristics of possible models of operation could include:

Horizon scanning functionality to ensure that colleges are aware of new and forthcoming opportunities. Regional or sub-regional provider (FE-FE, FE-HE, FE-private sector) collaborations Sectoral models (e.g. National Skills Academies, SSCs) ‘Hub and spoke’ models which provide a gateway to expertise, utilise physical and virtual and operate at a national, regional or local level Integrated with intermediaries (e.g. Business Link, Train to Gain) as part of a brokerage function Provides a portfolio of KTT solutions (e.g. consultancy, facilities, skills training) that draws on the expertise that lies in FE staff and students

52. The principles underpinning any strategic investment made by public sector agencies should include:

Strategic and long-term approaches that underpin a culture change, focussing on outcomes rather than outputs Building capacity and capability in FE colleges to respond to the KTT agenda Strengthening structures, systems and processes Supporting a breadth of KTT activity not just the development of workforce skills Recognising track records in delivering KTT solutions and/or potential Enabling collaborative working and building partnerships Quality assured responsive solutions (e.g. through the use of the new standard) Co-funding whereby the public ‘subsidy’ is matched by the employer’s contribution (e.g. SME voucher scheme operating in the West Midlands) Mitigating risk to FE colleges Sustainability that enables elements to be mainstreamed Generating a significant return on investment

53. Perhaps, if the Government were to provide funds for students to start their own businesses in collaboration with the college and a business,

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and if the college then continued to own shares in the company, this could provide significant new new revenue streams.

Other recommendations to government and initiatives for supporting wider KTT.

54. The NEF also recommends that the government pursues the following in support of the expansion of KTT, especially in the FE sector:

Systems for auditing employer-college links Encouraging higher-level training that reflects local and regional needs Reconfiguration of training budgets to allow staff regular, short returns to industry Employer leasing of workshop space or equipment to colleges RDA-led employer engagement strategies to support communication with colleges A review of Learning & Skills Council Policy to introduce unit-based funding for qualifications Improving college-university connectivity through HEFCE, LSC, the QAA and OfSTED.

55. For its own part, the NEF is expanding KTT through the promotion of nationwide ‘masterclasses’ for FE lecturers: one-day workshops run by industry practitioners and higher education academics, and held at university laboratories and companies’ scientific facilities.

56. Initially, 10 of these will run per year, 2008-10 in different locations covering the North, Midlands and South. Those attending will gain valuable insight into areas such as optoelectronics, nanoscale systems and technologies, new materials, nuclear decommissioning and radiation prevention, environmental engineering and digital communications.

57. Although limited to 20 participants a session, five of the classes will be recorded and made freely available on-line and specialist television channels, such as Teachers TV.

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Memorandum 21

Submission from the Engineering and Technology Board

1. Introduction and Executive Summary

1.1 The Engineering and Technology Board (ETB) welcomes the Committee’s Inquiry into engineering. The ETB supports the joint written evidence submitted by the ‘professional engineering community’. This written evidence concentrates on issues which specifically relate to the work and remit of the ETB.

1.2 The ETB is an independent organisation that promotes the vital role of engineers, engineering and technology in our society. The ETB partners business and industry, Government and the wider science and technology community: producing evidence on the state of engineering; sharing knowledge within engineering; and inspiring young people to choose a career in engineering, matching employers’ demand for skills.

• Engineers and engineering make a vital contribution to the UK’s economic prosperity and to meeting some of the key global challenges we face.

• Greater effective coordination is needed on the multiplicity of promotional and awareness-raising activities that are currently undertaken by a wide range of public, private and professional organisations. While many of these interventions and initiatives are excellent and have national coverage, better coordination would maximise impact and improve the consistency of messaging.

• Improved links between employers and education providers are needed to ensure that education providers better understand employers’ skills requirements, specifically on the content and design of the engineering diploma. A recent initiative at Warwick University in automotive technology is a good example of business and academia working together to create a course that delivers the skills that employers need.

• We welcome the announcement in this year’s Budget of support for innovation, particularly through public procurement and specifically for SMEs. We would welcome a review of the impact of procurement on the performance of technology businesses.

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2. The role of engineering and engineers in UK society

2.1 The lifestyle we enjoy today is, to a large extent, the result of engineers applying science to create the technology that most people take for granted. The UK led the world in the application of engineering, to create its Industrial Revolution. This has continued over the last two hundred years and the harnessing of our world-class science base has allowed us to remain one of the world’s richest nations. Engineers and engineering are thus central to sustaining and building on the UK’s economic competitiveness and to improving our quality of life:

• Supporting the UK’s economic competitiveness. In the current technology- based global economy, the UK’s continued and improved economic performance will depend upon achieving a balanced and sustainable economic model. This will be one that is not just reliant on the service sector and one which produces and capitalises on a population of world leading scientists and engineers to produce and exploit technology.

• Sustaining and improving our quality of life eg healthcare, particularly medical diagnostics and communications (mobile phones, etc).

• Mitigating some of the key global challenges we face, recognising that these serious threats also offer opportunities for technological developments and new markets in which engineers and engineering will play an increasingly important role, eg global warming, the identification and delivery of sustainable energy sources, the supply of clean water.

2.2 Indeed, the ways in which engineering contributes to society are becoming ever more pervasive and diverse as new technologies (the products of engineering), and new applications for these technologies, proliferate. Engineering is dynamic, continually evolving to meet changing circumstances and needs.

2.3 A recent report39 commissioned jointly by the ETB and the Royal Academy of Engineering suggests that the extent and nature of engineers’ and engineering’s contribution go largely unrecognised, with people failing to make the connection between the technology they enjoy and the role of engineering. Improving understanding of the relevance of engineering is a necessary precursor to improving perceptions of engineering. This misconception is particularly pronounced amongst young people.

2.4 The general perception of engineering is clouded by a number of issues: • the persistence of an outdated view of engineering - a view which harks back to a nineteenth century image of engineering • a lack of clarity (even within the profession) about exactly what constitutes engineering and who exactly should be called an engineer.

2.5 This lack of understanding is particularly concerning given the demographic decline in young people40 and the fact that engineers have tended to be drawn from a particular demographic’ ie white men.

39 Public Attitudes to and Perceptions of Engineering and Engineers, the ETB and the Royal Academy of Engineering, 2007 http://www.etechb.co.uk/_db/_documents/Public_Attitudes_to_and_Perceptions_of_Engineering_and_E ngineers_2007.pdf ) 40 See footnote 14

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2.6 One contribution to addressing this lack of understanding is the ETB web portal – scenta41 – that seeks to inspire young people, using their preferred medium. It provides examples of the wide range of contributions that scientists and engineers make to their everyday lives, information on careers, role models that they can identify with and examples of qualification pathways to engineering careers.

2.7 The science and engineering community, under the leadership of Sir Anthony Cleaver, Chairman of the ETB and Sir Tom McKillop, President of the Science Council, is joining with Government, charitable trusts and industry to create a UK celebration of science and engineering to be held in London in March 2009. This will incorporate the National Science Competition, announced in this year’s Budget.

2.8 The influence of engineers extends beyond engineering occupations. Those educated and trained as engineers work across a wide range of sectors and play an extensive role in the UK economy, including at Senior Management level in FTSE 100 companies, where their skills are valued in non-engineering applications42.

Recommendation • Greater effective coordination is needed on the multiplicity of promotional and awareness-raising activities that are currently undertaken by a wide range of public, private and professional organisations. While many of these interventions and initiatives are excellent and have national coverage, better coordination would maximise impact and improve the consistency of messaging.

The recent example shown by the Chief Executives of various engineering outreach organisations43 to better coordinate their activities and to work in partnership should be continued and supported by Government funding within an umbrella programme.

3. The role of engineering and engineers in UK's innovation drive

3.1 The knowledge-based economy needed for the UK’s continued economic success demands higher-end skills and relentless innovation. The UK is well placed to do this, with a science base second only to the US44 and world-leading capital markets within the City of London. Despite this potentially winning combination, we are not yet as successful as many of our competitor nations at exploiting these assets, through innovation, in order to create large, globally competitive and sustainable enterprises. While the UK’s record on numbers of start-up companies may be improving45, we have not been as successful as other economies at growing these companies or at producing a critical mass of ‘serial innovators’ (something successfully achieved in the US).

41 www.scenta.co.uk 42Engineering UK 2007, p66 Engineers in the Economy, 2007, the ETB, http://www.etechb.co.uk/_db/_documents/EngUK07.pdf 43 The Engineering Development Trust, the Learning Grid, the Smallpeice Trust, Young Engineers. 44 As measured by citations of science publications; the UK produces 10% of the world’s papers with only 1% of the world’s population. 45 The Race to the Top – A Review of the Government’s Science and Innovation Policies, 2007 http://www.hm-treasury.gov.uk/media/5/E/sainsbury_review051007.pdf

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3.2 The ETB’s reports on innovation and wealth creation from SET46 made a number of recommendations on action that could be taken by Government, business and financial institutions to help realise this potential. Some of these recommendations have been implemented47, but more could be done to help unlock the opportunities our science-base and capital markets present.

3.3 One of these reports, SET and the City, examined UK venture capital and found that in comparison to the US, UK venture capital is still relatively small in scale. For UK venture capital, there are clearly difficulties posed by poor returns in the technology sector since 2000, but there have been encouraging recent signs of improvement. Early stage technology businesses clearly need to deliver better performance, but institutions should consider whether they could move prudently to a more US model of funding for venture capital.

3.4 We applaud the establishment of the Technology Strategy Board (TSB) – a model recommended in our report. We encourage the TSB and the Government to ensure that the board remains strategic, focused on facilitating and brokering and does not simply evolve into another grant awarding body.

Recommendations • All investors should be encouraged to fund venture capital by the use of appropriate tax incentives.

• The TSB’s funding should be doubled over the next five years.

4. The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile)

4.1 Whilst qualifications are widely used as a proxy for skills, the rapidly changing pace of technology and the skills needs of UK economy mean that lifelong learning is an essential component of up-skilling. An award of a qualification is an important first step in demonstrating proficiency but it is the application of skills that creates value.

4.2 The recent ETB / Royal Academy of Engineering report48 on public attitudes to engineers and engineering showed that only 7% of 16-19 year olds felt they were quite knowledgeable about engineering as a profession and just 5% felt very well informed about the work of engineers. 16-19 year olds were also likely to see engineering as more ‘manual’, ‘structured’ and ‘serious’. This obviously has implications for attracting young people into careers in engineering, and could therefore undermine our ability to meet our future skills requirements.

4.3 Employers’ requirements Employer skills surveys49 demonstrate that a substantial minority of engineering employers are experiencing difficulty recruiting appropriately skilled staff.

46 SET and the City: Financing Wealth Creation from Science, Engineering and Technology, 2006, the ETB http://www.etechb.co.uk/_db/_documents/setandthecity.pdf and The Frontiers of Innovation: Wealth Creation from Science, Engineering and Technology in the UK, 2004, the ETB 47 In the Spending Review 2004, following the publication of the first report. 48 Public Attitudes to and Perceptions of Engineering and Engineers, the ETB and the Royal Academy of Engineering, 2007 http://www.etechb.co.uk/_db/_documents/Public_Attitudes_to_and_Perceptions_of_Engineering_and_E ngineers_2007.pdf ) 49 Such as the National Employer Skills Survey (NESS – England) and the Scottish Employers Skills Survey (http://www.futureskillsscotland.org.uk/)

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4.4 A consultation of the ETB’s Corporate Members50 indicated that they had hard-to- fill vacancies in their organisations and that this was primarily due to a mixture of applicants for vacancies being of insufficient quality and volume. Lack of skills and appropriate work experience were the most often cited reasons, with suitable qualifications, attitudes and motivation also being mentioned by some as lacking.

4.5 One respondent commented that “…high level skills involving the use and understanding of maths and physics – some candidates have apparently sound qualifications but cannot apply their skills to new problems.”, adding that “Many of the skills…can be worked on once in employment. The basic understanding of maths and physics is not so easy to pick up later and must be the priority.”

4.6 Another cited the problem of high technology small companies that hire one or two graduates a year but cannot carry the overhead of a two-year training programme before graduates make a full contribution to the company.

4.7 The skills that engineers and technicians will need more of in the future include: technical, team working and problem solving skills. Communications, planning and organisational, numeracy and literacy skills also rated highly.

4.8 Destination data from the Higher Education Statistics Agency (HESA) has shown that six months after graduating just over 3% of UK-domiciled civil engineering students are unemployed, whereas the figure for other engineering disciplines is typically in the range of 8-10%.

4.9 Exporting skills The majority of full-time postgraduate engineering students at UK HEIs are domiciled outside the EU. Even among full-time engineering first degree students as many as a quarter of Chemical, Process and Energy Engineering undergraduates, for example, are from outside the EU. Although schemes exist to allow non-EEA graduates to work in the UK, this does raise issues about the ‘export’ of skills to competitor nations and the balance of UK and foreign domiciled students on engineering courses.

4.10 The ETB carried out a study51 in collaboration with the Engineering Professors Council (EPC) which highlighted a potential imbalance in the make-up of student cohorts resulting from the high numbers of overseas students studying engineering at UK HEIs. The study indicated that the quality of student experience may be affected by such imbalances.

4.11 Demographic issues According to the population projections52, the number of 16-year-olds has peaked in 2007 at 802,000 and is forecast to fall each year to a low point of 671,000 by 2017 – a decline 16% for the annual cohort over the next ten years.

4.12 Women

50 The ETB invited members of its Business and Industry (B&I) Panel – made up of 28 active major engineering employers across the UK. 51 The Costs of Teaching Engineering Degrees –http://www.etechb.co.uk/_db/_documents/ETB_EPC_- _Costs_of_Teaching_Engineering_Degrees_Final_Full_Report.pdf 52 Government Actuaries Department / the Office for National Statistics, base 2006, http://www.gad.gov.uk.

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Around one-in-seven engineering and technology students in UK higher education are female – a figure which has remained static in recent years, although twice the figure of twenty-five years ago53.

4.13 The ETB particularly welcomes the Women and Work Sector Pathways Initiative, which aims to test new recruitment and career pathways for up to 10,000 women across nine different sectors throughout England54 - and which it was recently announced will receive an additional £5m. The ETB believes that this initiative will help to overcome perceived obstacles to increasing female participation in engineering.

4.14 The ETB is also a core supporter of the WISE campaign55 (Women into Science, Engineering and Construction) which collaborates with industry and education to encourage UK girls of school age to value and pursue STEM or construction related courses in school or college and related careers.

4.15 Technician and vocational level Engineers and technicians who have followed the vocational route into engineering are the bedrock on which the whole sector depends for the application of its activities, innovation and R&D. Probably the most significant route into engineering is the Apprenticeship and the ETB is concerned at the significant fall in engineering Apprenticeship volumes - about 25% over the last three years56. The Leitch Review of Skills57 recognised the vital contribution of the FE sector to up-skilling and raising productivity.

4.16 The ETB welcomes the establishment of National Skills Academies in manufacturing, construction, nuclear, and process industries and strongly supports the work of the Sector Skills Councils in meeting the demand for vocationally qualified employees reflecting the needs of employers.

Recommendations • Improved links between employers and education providers are needed to ensure that education providers better understand employers’ skills requirements, specifically on the content and design of the engineering diploma. A recent initiative at Warwick University in automotive technology is a good example of business and academia working together to create a course that delivers the skills that employers need. • The recent focus on boosting number of apprenticeships, including adult apprenticeships, should be scaled up. • Diversity should be encouraged, including gender, BMEs, returners etc. The work of the various organisations which encourage diversity need to be better coordinated and integrated with other broader programmes. • A comprehensive review is needed of the real cost of producing engineering graduates, particularly the provision of practical training and laboratory work. • A centralised FE statistical unit (like HESA) should be established and examine uptake and progression within strategically important areas for FE.

53 Source HESA 54 This is being delivered by Sector Skills Councils covering engineering including Construction Skills, Energy and Utility Skills and SEMTA. 55 www.wisecampaign.org.uk 56 Source: LSC/SSAScot 57 The Leitch Review of Skills, HM Treasury, December 2006

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5. The importance of engineering to R&D and the contribution of R&D to engineering

5.1 The Lisbon Agenda58 is intended as a strategic response to address the low productivity and stagnation of economic growth across the EU. An EU target spending on research and development was set at over 3% of EU GDP. The provision of intermediate and high level STEM Skills for the UK Science, Engineering and Technology sector is one of the key challenges recognised within the Lisbon Agenda.

5.2 A recent report59 estimated that to achieve the level of R&D activity envisaged in the 3% target, an extra 500,000 graduate researchers would need to be produced across the EU. For the UK to increase its R&D expenditure by 40% there will need to be a 40% increase in employment in the SET sector.

5.3 The initial targets set out in the Lisbon Agenda were too ambitious and it seems unlikely that the UK will achieve its 2.5% target of R&D spend of GDP by 2010. Therefore, there needs to be far greater incentives for industry to invest in R&D. The TSB will help the UK close in on its 2.5% target. However, the £190m annual budget of the TSB should be considered in the context of the £9bn shortfall in R&D spending seen in 2004.

5.4 The huge potential of public procurement as a means of stimulating research and development has been recognised but is yet to be realised.

Recommendation • We welcome the announcement in this year’s Budget of support for innovation, particularly through public procurement and specifically for SMEs. We would welcome a review of the impact of procurement on the performance of technology businesses.

6. The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering.

6.1 All these bodies engage in activities to promote engineering skills and careers and progress has been made in improving and joining up these initiatives to prevent duplication of effort and inconsistency. Organisations that run successful initiatives should be supported to increase their reach.

6.2 In order to promote engineering skills and careers to young people, more should be done address them via their preferred medium of communication ie the internet, as well as to promote an inspiring message alluding to a modern vision of engineering. The ETB aims to do this with its update of the scenta portal and the enginuity60 (engineering careers information) website, and with the Science Council’s Futuremorph careers from science website.

58 The Lisbon Agenda is an economic action and development plan for the European Union (EU) set out by the European Council in Lisbon in March 2000. 59 Gago 2004 60 www.enginuity.org.uk

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6.3 University Should provide our future engineers who are fit for purpose and come with the broad foundation of education and skills which are needed for careers in engineering and be adequately funded to do so.

6.4 Industry Evidence from the ETB’s Business and Industry (B&I) Panel suggests that there is wide recognition that engineering employers have a key role in initial and continuous professional development, promoting engineering careers, up-skilling, training and providing awards to recognise success61.

6.5 The Panel sees Government’s key role as promoting qualifications, professional engineering institutions’ role as supporting professional development, promoting careers in engineering and engaging with their membership to ascertain their views. Further Education colleges and private training providers are recognised as being key players in the provision of training courses62.

6.6 Professional institutions should continue to: • Provide like-minded professionals with ‘knowledge networks’. • Set and maintain professional standards, in association with ECuk. • Define chartered status; provide a framework for Initial Professional Development (IPD) including defining the skills needed eg project management.

6.7 Government In addition to the earlier recommendations, we: • Applaud the Government’s increased commitment to lifelong learning. • Recommend a review of the way Government sets targets for the LSC to deliver the upskilling the UK requires.

March 2008

61 A respondent commented that “employers need to be more accountable in promoting engineering as a career and pro-actively promoting technical development opportunities internally and also with external providers.” Another noted that “…we would have more success if there was...strong leadership…and industry saw there were tangible benefits for being involved.”

One other commented that we “…desperately need a framework showing clarity of responsibility for promoting engineering…[with] too many organisations seeing their competition as another engineering [institution]…[and] we need to pool resources to expedite progress against shared objectives, [and] remove duplication and redundancy in what we do…” There is a clear call for a “powerful, unified message”.

62 One respondent commented that “the education sector should focus on educating engineers and scientists ensuring a good grasp of the fundamentals. Given a strong base, employers and training providers can help develop other skills as a later date as required.”

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Memorandum 22

Submission from UKNEST

This paper is offered in response to The House of Commons Innovation, Universities and Skills Committee news releases Nos. 22 & 25 (07-08) dated 29 January and 6 February 2008 – Inquiry into Engineering in the UK. It provides a position statement on behalf of the UK Naval Engineering, Science and Technology Forum (UKNEST) following the request for evidence by the IUS committee and focuses specifically on the intellectual resource base that supports this industry. Introduction 1. This submission is made by the UKNEST forum. UKNEST was formed in 2005 with the overall objective to provide a forum for the UK’s professional naval engineering, science and technology community for addressing issues of common concern, fostering specific professional development needs, and giving a focal point for interaction with, and influencing the wider Government and industrial community. 2. UKNEST comprises 20 organisations63 representing most of the principal contractors and major suppliers to the UK maritime defence engineering industry as well as MOD, the Royal Navy and professional bodies. UKNEST is independently chaired by Mr John Coles (former Chief Executive of the UK MoD Ships Support Agency and IPT Leader for the future aircraft carrier programme). In the last year UKNEST working groups have focused on skills development and sustainment, research and development (R&D) pull- through, and design processes. Further information is available here: http://www.uknest.org/uknestflyer2.pdf. 3. The vision of UKNEST is to develop and sustain the vision and implementation of a world-class naval engineering, science and technology intellectual base in the UK. 4. The views contained in this submission represent a collective view from UKNEST and do not represent the specific views of any one of the member organisations. UK maritime defence engineering skills 5. UKNEST member organisations employ the vast majority of people engaged in the UK surface ship and submarine engineering design, build and through life support communities, industry and government, white collar and blue collar. Hence UKNEST can be seen to represent the major elements of the UK maritime defence industry in addition to many of the members being engineering employers on a much broader scale, across a number of engineering sectors. 6. The maritime defence sector requires the application of a wide span of scientific, technological and engineering disciplines with practical domain

63Aveva Solutions, Babcock Marine, BAE Systems Surface Fleet Solutions, BAE Systems Submarine Solutions, BMT Defence Services, Converteam, Devonport Royal Dockyard, dstl, Institute of Marine Engineering Science and Technology, Lloyds Register, Ministry of Defence, QinetiQ, Rolls Royce, Royal Institution of Naval Architects, Royal Navy, Systems Engineering and Assessment, Thales, VT Shipbuilding, Weir Strachan and Henshaw, WS Atkins.

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experience. These include naval architecture, marine, mechanical and electrical engineering, systems engineering, electronics, acoustics, nuclear engineering, metallurgy, atmosphere chemistry and many others. Much of this technical expertise and associated domain experience in the UK is provided by UKNEST member companies. 7. In September 2006 UKNEST submitted written evidence to the House of Commons Defence Select Committee inquiry into the future of the strategic nuclear deterrent: the UK manufacturing and skills base. The engineering skills base in the UK 8. UKNEST is concerned about the quality, quantity and demographic profile of engineers within both its own industry sector and engineering in the UK at large. A particular challenge for UK maritime defence is captured well by the Defence Industrial Strategy (DIS)64. Whilst some aspects of warship and submarine engineering utilise general fields of engineering and production, there remain a number of specialist skill sets only utilised fully in this sector. Examples include nuclear shielding (a problem not shared to anything like the same extent as civil nuclear), pressure hull technology, submarine hydrodynamics, survivability under enemy attack, atmosphere control engineering and life sciences, underwater communications, special acoustic and optical sensors etc. These skills can only be developed by working in the maritime defence sector and learning form others, experiencing at first hand the specialist applications needed. It is a fact that many of these niche skills reside in only a small population of engineers and that the average age of this population is worryingly high. 9. Equally important are the core warship skills to define, design, procure, build, accept, modify, update and support in-service naval vessels. These are essential to ensure sovereign capability is maintained and whilst not necessarily in short supply, require sustained business to maintain sufficient capability. 10. A study sponsored by UK MoD and undertaken by the RAND Corporation has quantified the numbers and skills of engineers in the UK maritime defence sector and also highlighted a small number of niche skills which are becoming critical or under threat. UKNEST has been a key contributor to this work. The role of engineers in innovation and the importance of R&D 11. UKNEST views engineering design, build and through-life support holistically as being part of all the lifetime activities from research through to disposal – this is the responsibility of the collective maritime defence enterprise. Recent work by the UK MOD Research Acquisition Organisation in developing the UK Defence Technology Strategy (DTS) has identified a strong link on how spending in R&D has a direct impact on delivered military capability, leading to a typical 10-year advantage over those nations which invest much less in R&D. This reinforces the holistic view and that product capability is a continuum from R&D through to the practical engineering for realising and sustaining deployed assets with a long service life. The need for sustained government spend on R&D is evident if the UK is not to lose any military or other wealth creation advantage. 12. UKNEST has established a R&D working group which has:

64 “It is a high priority for the UK to retain the suite of capabilities required to design complex ships and submarines, from concept to point of build; and the complementary skills to manage the build, integration, assurance, test, acceptance, support and upgrade of maritime platforms through life”

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• Contributed to the development of the UK MoD DTS and prompted MoD to consider its emphasis for future R&D; • Identified the importance of R&D to wealth creation and competitive advantage; • Engaged with MoD in the development of its Defence Technology Plan; • Organised and facilitated a one day seminar entitled ‘Maritime Grand Challenge 2007 – Focussing Long Term Science and Technology’, the aim of which was to examine the question, “Where should the UK invest in the long-term Research & Technology to ensure Maritime success for the future?”. 13. Innovation to enhance capability arises from R&D, academia, professional engineers working in design and support, etc, in other words the intellectual capability within companies and Government. One must be careful to avoid missing the key innovative individuals and engineering experts who can realise an affordable product (measured in low hundreds of people in UKNEST organisations) when considering the whole enterprise (measured in high thousands). 14. Equally important are a number of domain specific niche technology areas, which are not shared easily internationally and with other industrial domains. For instance, it has been suggested that the total “intellectual” core capacity necessary to sustain the necessary UK submarine enterprise sovereign capability is in the region of 250 professional engineers and scientists. This represents a small proportion of UK defence enterprise resource but one which is strategically important in the context of its ability to provide greater wealth creation for the UK. UKNEST suspects that similar situations exist in other engineering sectors and believe that this is one area in which the committee’s inquiry should seek greater definition and clarification. Promoting engineering skills and developing careers 15. To retain the key skills necessary to ensure UK sovereign capability in maritime defence (as required by the DTS) requires investment to regularly exercise these skills, to fund innovation and experimentation, to recruit new blood and develop existing professionals. This is best achieved by engineers undertaking “real” work: doing their jobs and adding value to create a product or service which can be traded. Where such work is in short supply due to reduced Government spending, market decline etc then some of the essential skills have to be retained by company self-investment. There is no lack of willingness in UK industry to sustain the necessary skills, provided sustainable business opportunities are forthcoming. It is therefore essential for engineering businesses to be able to more accurately predict workload trends in order to provide worthwhile sustainability of skills. It is recognised by UKNEST that sustainability may be achieved better through improved integration and exchanges between the build, manufacture and through life support delivery teams in maritime defence, and perhaps this applies to other engineering sectors too. 16. UKNEST has recognised that the education, training and development of engineers at large and for the maritime defence community specifically, are essential to provide a sustainable enterprise. UKNEST includes in its membership two key professional engineering institutions and many companies are accredited providers of initial professional development for young engineers. This association ensures a consistent professional rigour is applied.

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17. To support this, UKNEST has established a training, education and development working group which is currently focussed on establishing a UKNEST enterprise-wide recruitment and awareness campaign for undergraduates and graduates in all engineering disciplines. The campaign should be launched in late summer 2008. It is unique in the maritime defence sector in portraying the attractions of the entire enterprise to all engineering disciplines across all organisations. If successful, this scheme will probably be expanded to encompass non-graduate recruitment and to influence school children. 18. UKNEST is also proposing an enterprise-wide internship scheme for undergraduates aimed at producing a greater number of well-rounded (broad rather than narrow experienced) young engineers who have gained work experience and sector awareness prior to graduation.

Other UKNEST member company engagement in this inquiry 19. UKNEST is aware that there is an associated inquiry specifically into Nuclear Engineering. Several UKNEST member organisations employ nuclear qualified engineers and it is likely that they may respond separately to that inquiry. 20. Other UKNEST member companies may also submit their own responses to this inquiry. Further Contact 21. UKNEST would be pleased to provide further support to the Committee in respect of this inquiry. Contact details are provided separately.

March 2008

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Memorandum 23

Submission from the Wellcome Trust

1. The Wellcome Trust is pleased to respond to the Innovation, Universities, Science and Skills Committee inquiry into engineering. The Wellcome Trust is the largest charity in the UK. It funds innovative biomedical research, in the UK and internationally, spending around £600 million each year to support the brightest scientists with the best ideas. The Wellcome Trust supports public debate about biomedical research and its impact on health and wellbeing.

2. As a funder of biomedical research, the Trust would like to emphasise the importance of medical engineering and would urge the Committee to consider this discipline within its inquiry. Medical engineering integrates the UK’s strengths in innovative engineering and medical research; it is a growing field which will continue to be important for improving health and strengthening the economy. Medical engineering has resulted in many innovative applications – such as life support systems, medical lasers, hip replacement, pacemakers, and medical imaging – and will continue to play a significant role in the UK’s “innovation drive”. For example, four of the world’s top ten neuroscientists are based at the Wellcome Trust Centre for Neuroimaging at University College London65.

3. The Trust has provided over £46 million in funding for grants involving biomedical engineering research since 2003. Some examples are given below: • Dr Morgan Alexander, Professor Martyn Davies and Professor Paul Williams at the University of Nottingham, in collaboration with Professor Robert Langer and Dr Daniel Anderson at MIT, to use novel polymer array technology to rationally design polymers for anti-biofilm properties that can be readily incorporated into standard medical devices. • Professor Ijeoma Uchegbu of the School of Pharmacy at the University of London, to develop nanotechnology that significantly increases the potency of drugs in the brain and to demonstrate that this can result in significant anti- tumour activity while sparing the healthy brain and bone marrow. • Matt McGrath of Aircraft Medical for the development of the world’s first handheld video laryngoscope. • Dr Andrew Gee at the University of Cambridge for the development of next generation imaging software for freehand, three dimensional ultrasound scanning – the project team involves both clinicians and engineers. • Professor Paul Addison of CardioDigital Ltd develop the COP-AF™ Prototype ECG-based system – a medical device for the selection of atrial fibrillation patients most likely to benefit from cardioversion therapy, developed by.

65 http://www.fil.ion.ucl.ac.uk/

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4. Special efforts are often needed to promote collaborative innovation between engineers and medical researchers. The Trust welcomes the opportunities offered by the biomedical engineering research institutes at the University of Oxford, Imperial College London, and the University of Dundee for collaboration between scientists, clinicians and engineers.

5. The Trust is continuing to seek new ways to support interdisciplinary research through the development of designated funding schemes. We are currently working with the Engineering and Physical Sciences Research Council to develop a new Medical Engineering Initiative, investing £45 million to stimulate the formation and support of UK centres of excellence for medical engineering. The Centres will combine multi-disciplinary research and product development R&D programmes, integrating physical sciences, engineering, and computing with clinical or biological research. Applications will be sought from institutions or consortia within the UK. It is hoped that this will provide an effective model to support interdisciplinary innovation in the UK.

6. In 2007, the Trust convened a small conference to explore institutional models for facilitating interdisciplinary innovation in cooperation with the Boston-based Center for Integration of Medicine and Innovative Technology (CIMIT), which has successfully funded and facilitated collaborations between MIT engineering researchers and clinicians based in Boston’s major medical research centres. In the UK, Manchester has recently become the first international affiliate of CIMIT, with the creation of Manchester: Integrating Medicine and Innovative Technology (MIMIT), a partnership between the University of Manchester and the major NHS Teaching and Primary Care Trusts.

7. The Trust also welcomes interdisciplinary research which is taking place between institutions, such as the new Birmingham Warwick Science City Interdisciplinary Research alliance. This research partnership will have three key themes: Translational Medicine (including exploring new diagnostics and innovative therapies); Advanced Materials (in a diversity of industries including aerospace engineering and healthcare); and Energy Futures. The Trust hopes that such interdisciplinary inter-institutional alliances will be developed and notes that novel mechanisms for funding and partnership will be needed to ensure that effective interdisciplinary working can be achieved.

8. The Trust has committed up to £50 million over five years, matched by the Department for Health to create a new Health Innovation Challenge Fund (HICF). The aim of the fund will be to support work that accelerates the development of innovative technologies, devices, and clinical procedures of relevance to the National Health Service. The HICF will support innovative ideas and innovative people; the new funding will be used to translate the best ideas arising from basic and clinical research into the development of new products and devices driven by clinical need.

9. The Trust is pleased to note that the inquiry will consider the engineering skills base and the role of engineering and engineers in UK society. The Trust is firmly committed to increasing public engagement with science and it is important that engineering is promoted within the wider science and society agenda. It is also important to engage young people in science and engineering at school to prepare

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the next generation of scientists and engineers. This can be achieved in part by high-quality, inspirational science teaching and the Trust supports continuing professional development for science teachers through its funding for the National Science Learning Centre. It is also important to ensure that young people have access to high-quality careers advice on the range of careers that value science, technology, engineering and mathematics (STEM) skills.

10. We would like to highlight Project Enthuse, an initiative involving funding from industry, Government and the Wellcome Trust to increase industry involvement in supporting CPD for teachers. Some of the industry partners we hope to involve have a strong engineering base. The funding will provide bursaries, teaching cover, travel and accommodation for teachers to attend a residential CPD course at the National Science Learning Centre, and an additional impact kit to enable further benefits to be demonstrated in the classroom.

11. This scheme provides the valuable opportunity to develop much closer working relationships between businesses and schools, with teachers nominating science students for internships with participating companies each year (this would dovetail with the existing Nuffield Science Bursaries). Business leaders have been invited to commit to a programme of support of £1 million each over a five year period. The Trust is pleased that the Government announced £10 million in funding for Project Enthuse in Budget 2008.

12. The Trust would also call attention to initiatives such as National Science and Engineering Week and the Science and Engineering Ambassadors scheme, both funded by the Department for Innovation, Universities and Skills, which are a valuable means of engaging young people and promoting careers in science and engineering.

March 2008

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Memorandum 24

Submission from Prospect

Introduction 1. Prospect is a trade union representing 102,000 scientific, technical, managerial and specialist staff in the Civil Service and related bodies and major companies. We represent engineers across a range of disciplines and functions. For example, our members are engaged in operational and technical management and delivery, research and development and the establishment and monitoring of safety standards. Substantial numbers of Prospect members work in the energy, defence, transport and scientific sectors. We are fortunate in being able to draw on this broad range of knowledge and expertise to inform our views.

2. This submission firstly briefly addresses the generic issues relating to engineering that have been identified by the Select Committee and secondly provides evidence for the nuclear engineering case study.

THE ROLE OF ENGINEERING AND ENGINEERS IN UK SOCIETY 3. It is the role of engineers and engineering to identify and build on scientific concepts; to adapt and change the concept into a ‘marketable’ product; refine and improve the design; maintain the equipment and extend the life of the product and finally identify the replacement of the technology. Despite many positive aspects of being an engineer and longstanding programmes of work by professional engineering bodies, the role of the engineer is still not well understood in the UK and it is not widely perceived as a desirable career option. For example, the Engineering Technology Board’s Report “Engineering UK 2007” found that 57% of the public think that either they are not very well informed or not at all informed about the work of engineers. Just 5% of women and the same proportion of 16-19 year olds consider themselves to be well informed about the work of engineers. According to WISE (Women into Science, Engineering and Construction), 54% of young people associate engineering with a dirty environment and 25% associate it with working in factories.

4. Prospect members who are engineers believe that there is a tendency for management teams or policy-makers to pigeon-hole them as "techies" who supply detailed information which informs the organisation or policy, rather than being the decision-makers themselves. Such an approach fails to utilise engineers’ training and skills is using a wide variety of resources and bringing them together to form an optimum solution. As engineers are highly numerate and literate, it is both surprising and concerning that there are not more engineers occupying senior management positions.

5. In practice engineers are likely to be working as team members on developments that take place over a period of time. At the stage that the final engineered product is launched, it becomes a matter of commercial opportunity with the focus on what the

159 device can do. This wealth creation aspect of engineering is certainly important, though the commercial focus can eclipse any thought about the skill required in developing the product. Perceptions of engineers are further clouded by describing technicians who service or repair equipment as 'engineers'. In our view an engineer is a person who is capable of designing engineering solutions. Prospect believes that there should be increased support for the Engineering Council to help educate the public on the status of professional engineers and engineering technicians. In particular, action is needed to make the terms Chartered Engineer and Incorporated Engineer generally recognised.

THE ROLE OF ENGINEERING AND ENGINEERS IN UK’S INNOVATION DRIVE 6. Engineering is key to successful innovation. Incremental improvement accounts for over 95% of product innovation and it is Engineering that delivers this change. The most successful companies will be those that instil a culture of continuous innovation, backed up by structures and processes that make this a reality. Of course innovation does not occur in a vacuum and, in this regard, Lord Sainsbury’s concept of an innovation ecosystem is useful. As “The Race to the Top” points out as well as sometimes competing and sometimes collaborating with each other, companies interact with a range of other organisations including banks, venture capitalists, universities and research institutes, and public agencies in areas such as competition policy, regulation and intellectual property rights. Prospect strongly endorses Sainsbury’s view that “A highly skilled workforce is essential. Skilled labour is probably the least mobile factor of production, making the domestic system of education and training a key part of any innovation ecosystem and of crucial importance for policy makers”.

7. In reality however, and as outlined below, the UK is facing substantial skills shortages and gaps. High and intermediate skills shortages have been prevalent in parts of manufacturing, engineering and construction. A 2007 survey of engineers and technicians by Remuneration Economics showed that 97% of companies had conducted a recruitment campaign for engineers and/or technicians over the previous year and that 92% of these companies had experienced problems in attracting suitable candidates. Recruitment problems were attributed primarily to a lack of specialised skills and to competition from other organisations. Among the consequences of such difficulties reported in a 2006 labour market survey for SEMTA66 are reduced staff morale, increased workforce stress levels, loss of business orders, and restrictions on business development activities. At the same time 84% of companies experienced problems retaining their existing engineers and technicians. Furthermore, these sectors face an ageing workforce profile, with Chartered and Incorporated Engineers having a mean age of 55 and Engineering Technicians with a mean age of 50. Action to address these issues will therefore make a vital contribution both to supporting innovation and increasing productivity.

The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity

66 2006 Labour Market Survey of the GB Engineering Sectors – BMG Research prepared for the Science, Engineering, Manufacturing and Technologies Alliance (SEMTA) Sector Skills Council

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8. Fulfilling the UK’s engineering potential depends on an ability to recruit and retain appropriately skilled staff, underpinned by relevant education and a recognition that training takes time and will not impact immediately on labour supply. Over the last ten years the number of degrees awarded in engineering and technology has fallen by 10% and in physical sciences by 11%67, and there remain considerable problems in improving diversity across the sector. As shown in the table below, women remain under-represented in SET occupations at all levels and this problem is particularly acute in engineering professions.

Source: Labour Force Survey, analysed by Institute for Employment Studies for UK Resource Centre

9. Results from a range of recent engineering skills surveys demonstrate clearly both the nature and scale of the challenge68:

• The number of FE learners in engineering, manufacturing and technologies has fallen by over a quarter since 2002. • Just 3% of engineering and 1% of construction apprentices are female compared with 97% of child-care apprentices. • Achievement rates for engineering and related subject apprenticeships are around three-in-five.

67 Science and Innovation Policies in a Global Economy – David Sainsbury for the Fabian Society, June 2006. 68 Engineering UK 2007 – ETB, WISE Campaign, UK Resource Centre for Women in Science, Engineering and Technology (UKRC).

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• The proportion of undergraduate and postgraduate students of engineering and technology subjects over the last six years has declined from 9% to 6%. Just one in six of these students is female. • Nearly 30% of engineering and technology HE students are from outside the UK. Further, there is anecdotal evidence to suggest that at postgraduate level the majority are non-UK students. • Around 30% of engineering and technology graduates and 25% of postgraduates enter work with employers in the finance and business sectors. • Although starting salaries for engineers compare favourably with those for many graduate occupations, accountants, solicitors and investment bankers typically start on 25-50% more. • Salary levels for professional engineers generally do not compare well with other professional groups, including health and IT professionals as well as those in the legal and finance sectors. • Around three quarters of women who achieve SET qualifications do not go into a SET job. There are just under half a million women currently living in the UK who are qualified in SET but only 135,000 are currently working in these sectors.

10. Feedback from Prospect’s own members, in line with that from employers and Sector Skills Councils, is that there is a common need for leadership and project management skills as well as for higher level technical skills. Employers and practising engineers also highlight the need for multi-disciplined craftspeople and graduates with relevant degrees and ready for productive employment. Respondents to SEMTA’s labour market survey identified professional engineers, scientists and technologists followed by technician engineers / engineering technicians as the two occupational groups in which skills gaps were having the most significant effect on business.

11. The experience of the heavy engineering sector provides a good illustration of the challenges facing graduate recruitment and training. Prior to the privatisation programme of the 1980s and 1990s there were several large nationalised engineering organisations in the country that could support a significant training infrastructure. Key examples were the Central Electricity Generating Board, British Telecom, British Aerospace, British Leyland and the British Railways Board. These, in turn, were complimented by large private sector manufacturing concerns such as GEC, Hawker Siddeley and Marconi. These large organisations offered the opportunity for graduate trainees to gain experience of a number of different work areas, thus developing them to be more valuable than if they were trained in a single department.

12. As each of these organisations had a moderately dominant position in its sector, it was in the interests of the organisation to recruit and train its own staff. There were limited opportunities to 'poach' experienced staff from other organisations. Most of the major companies ran sponsored studentships that provided financial rewards (bursaries & holiday employment / training) to students. This ensured that there was competition amongst the best performing students for places on engineering courses.

13. However, since the 1980's there have been a number of factors which have caused the engineering graduate training infrastructure to collapse. Firstly, privatisation has led to a move away from the public service ethos of the former nationalised industries

162 to a more commercial basis. Since training graduates does not provide immediate financial benefits, it has suffered accordingly. Secondly, the increased commercial focus of the privatised industries has led to significant reductions in workforces. Over the past 15-20 years engineering graduate recruitment has been minimal, but companies have been able to continue operating with reducing numbers of those staff recruited prior to privatisation. In many cases, graduate roles have been filled by staff moving upward from the shop floor. Whilst this is, in general, an accepted and beneficial route for staff progression, the lack of pure graduate recruitment is now leading to a serious imbalance in some companies' workforces, with a lack of staff with an academic background.

14. Secondly, economic drivers in some parts of the sector have had a damaging effect. For example, the use of framework contracts in the UK power sector, where fees per task are agreed but work volumes are variable, has constrained investment in skills by contractors. More broadly, Ofge3.m has not supported any initiatives within the power sector to improve training and development of staff.

15.Thirdly, privatisation has been accompanied by fragmentation of not only the former nationalised industries but most of the key companies (such as GEC) that have always been in the private sector. Fragmentation has a number of knock-on effects. These include reduced ability for graduate trainees to gain the kind of wide-ranging experience that they could previously within a single company. In addition, many of the fragmented companies are now too small to support graduate training and hence resort to recruit staff by poaching' from other organisations. Graduates are now more likely to leave the company that provides their training once they have completed it. Companies such as consultancy firms that used to recruit experienced graduates from the major companies are now recruiting graduates directly from University. The consultancies are not able to give these graduates practical hands-on shop floor type experience. The graduates that follow this route are therefore lacking in practical experience.

The importance of engineering to R&D and the contribution of R&D to engineering 16. R&D underpins innovation and it underpins public good research, and engineering plays a key role in both regards. Prospect has submitted evidence on previous occasions to the Select Committee (and the predecessor Science and Technology Select Committee) on the importance of a strengthened and coherent framework for investment in public SET.69 We have similar concerns about business investment in R&D. Data compiled by the OECD shows that the UK falls behind both the EU and USA in terms of the contribution of business-based R&D to GDP. The fact that less than 45% of the UK’s R&D is from the commercial sector is of serious concern, especially as the Government has viewed the private sector as the main focus for future economic growth. It would help if more companies sponsored training in research through PhD programmes. As indicated above, more overseas students take advantage of postgraduate study than UK students. Whilst some of these remain in the UK and their expertise is available to UK industry, many do not.

69 Includes recent evidence to the inquiries into Science Budget Allocations (January 2008) and Research Council Institutes (June and December 2006).

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The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering 17. In our view, the industry is well positioned to take the lead on skills development in collaboration with other stakeholders. We would wish to see greater encouragement of the involvement of unions in company training plans and initiatives. Universities have a key role in training and research but there is a need for links with industry to be strengthened. Public funding of universities should recognise the social benefit of more expensive engineering courses and the value of collaboration with industry to produce sandwich courses that provide a more effective preparation for entry to professional engineering.

18. Many Prospect members are also members of an engineering professional body, and Prospect seeks to work collaboratively with such bodies on projects of common interest. Initiatives such as WISE and UKRC provide valuable expertise and resources to enhance diversity, and Prospect has some involvement with both bodies, although we accept that there is a need to enhance the profile of this work across the trade union movement as well as to ensure that it is more closely informed by trade union expertise and priorities.

19. More broadly, unions are increasingly playing a positive and proactive role in addressing skills issues, including through involvement in Sector Skills Councils and National Skills Academies – though these bodies very in their willingness to genuinely engage with union representatives. However, this role is of necessity pursued in parallel with unions’ more traditional functions of bargaining over pay and conditions and, with regrettable regularity, over restructuring and redundancy. This sharp end of dealing with careers that have been curtailed certainly does not help in portraying a positive image of the profession and undoubtedly contributes to the leaky “ pipeline” between engineering education and engineering employment.

20. As outlined in other evidence to the Select Committee, we are concerned that policy and financial pressures from central government can, in different ways, undermine both R&D and educational capacity. For example, university may have suffered as a result of pressures to achieve good research ratings reducing time spent on providing or improving teaching to undergraduates. Sudden cuts in funding, for example resulting from financial pressures on research councils, can have a devastating impact on the viability of university science and engineering departments.

Nuclear Engineering Case Study 21. The slowdown in new nuclear construction over the last two decades, both in the UK and globally, coupled with reductions in nuclear fission R&D spending in many countries, has resulted in a significant reduction in the number of skilled personnel working in nuclear construction, in licensing and in research and support industries. As the world returns to large-scale nuclear new build on a scale not seen since the 1980s, and growing activity is seen in the decommissioning and waste management

164 sectors, there will be a need for a major expansion in the supply of suitably skilled personnel.

22. The situation in the UK is perhaps especially marked owing to three factors – the entire absence of nuclear new build since the completion of Sizewell B in 1995; the dearth of new build in other forms of electricity generation since the end of the first ‘dash for gas’ in 2000, leaving another industrial sector with skills shortages as the need for investment in new power plants grows; and the age profile of those working in the nuclear industry in the UK. Industry estimates indicate that a certain proportion of the capacity needed for a new build programme, perhaps some 20%, will need to be sourced from overseas, even given investment in UK capacity over the next five years. The nuclear industry will therefore find itself in competition for key personnel, both with other industries (including other sectors of the power industry) in the UK and with nuclear industries in other countries.

23. There are a number of valuable initiatives to address these potential skill shortages, including the National Skills Academy for Nuclear, the Nuclear Doctorate Centre and the Keeping the Nuclear Option Open programme. However, a major ongoing effort involving all partners will be needed to provide the skills to support the upswing in nuclear activity, both new-build and clean-up, likely to be seen over the coming years.

24. Nuclear skills are likely to be required in three main areas over the next decades:

• to carry out a programme of new build of nuclear power stations, as discussed in the Government’s Energy White Paper of 200770 and Nuclear White Paper of 200871; • to maintain the continued operation of the present fleet of nuclear power stations, including the possibility of lifetime extension under some circumstances; • to manage decommissioning and waste management requirements caused by historical operations, ongoing operations and the end of the lifetimes of currently operating plants.

25. The UK has domestic capacity to supply most of the value of a new nuclear power plant (PWR of the EPR or AP1000 design). The main gap is in the plant and equipment category, where capability equivalent to some 20 % of the total value of the project will need to be source from the global supply chain.72 Although it is some time since a new power station construction project was carried out in the UK, considerable industrial capacity has been maintained to support existing nuclear power plants, new build associated with the fuel cycle and decommissioning and waste management activities. Furthermore, many of the skills needed to build a nuclear power station are equally applicable to other major engineering projects and

70 DTI (2007), Meeting the energy challenge: a White Paper on energy, The Stationery Office, London. http://www.berr.gov.uk/files/file39387.pdf. 71 BERR (2008), Meeting the energy challenge: a White Paper on nuclear power, the Stationery Office, London. http://www.berr.gov.uk/files/file43006.pdf. 72 NIA (2006), The UK capability to deliver a new nuclear build programme: a detailed description of the UK supply chain capability to deliver a new nuclear build programme, NIA, London, http://www.niauk.org/images/stories/pdfs/MAIN_REPORT_12_march.pdf.

165 so personnel in these areas could be sourced from general engineering disciplines without an insuperable need for nuclear specialists.

26. However, there are two important factors that need to be considered. First, nuclear power plant construction globally in the last decade has been considerably slower than previously – some 85 % of current global nuclear capacity is over 15 years old – with consequent reductions in global manufacturing and construction capacity in the field.

35 30 25 20 15 10 5 0 0 2 4 6 8 101214 161820 2224 26283032 34363840

Number of operating reactors by age (years) June 2007

27. In the peak years for nuclear construction so far, from 1982 to 1987, some 132 nuclear plants were connected to grids globally, an average of 26 per year. By contrast, as of December 2007 the total number of reactors under construction globally was 34, just one more than were connected in the peak year of 1984.

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35 30 25 20 15 10 5 0 0 2 4 6 8 101214 161820 2224 26283032 34363840

Number of operating reactors by age (years) June 2007

28. Secondly, there is a general shortage of highly qualified engineers in the UK. This may have been disguised by the dearth of construction of power plants of any description since the end of the first ‘dash for gas’ around the year 2000, but there is now a need to invest in new power construction of some description – some 30-35 GW over the next twenty years. Around 8GW of new nuclear capacity needed simply to replace nuclear plants coming off line if current levels of nuclear generation are to be maintained – by no means all of which will be nuclear.

0 1 2 3 4 5 6 7 9 9 9 9 9 9 9 98 99 000 001 002 003 004 005 19 19 19 19 19 19 19 19 19 2 2 2 2 2 2

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199119921993199419951996199719981999200020012002200320042005

New installed capacity since 1991, UK (GW, cumulative)73

29. Companies involved in constructing new nuclear plants in the UK are likely therefore to face competition both from other engineering concerns in the UK and from the projected upswing in nuclear construction globally.

30. This problem is not specific to the UK. In 2000 the OECD’s Nuclear Energy Agency, NEA, published a report reflecting on the following challenges for the sector.74

‘In most countries there are now fewer comprehensive, high-quality nuclear technology programmes at universities than before. The ability of universities to attract top-quality students to those programmes, meet future staffing requirements of the nuclear industry and conduct leading-edge research in nuclear topics is becoming seriously compromised.’

31. The situation in the UK is particularly serious because since the 1980s, public investment in nuclear fission research in the UK has fallen by more than 95% and the industrial R&D skills base has decreased by more than 90%.75 The challenge is exacerbated by the age profile of the UK nuclear workforce. Fewer than 6% of the estimated 100,000 people who work in the industry (including 23,500 at degree level) are under 24, while 31 % are aged 45 and over.76 At British Energy plc up to 40% of staff are expected to retire within the next ten years. A report by Cogent, the Sector Skills Council (SSC) that covers the nuclear industry, identified that 72% of

73 Shuttleworth G. and MacKerron G., (2002), Guidance and commitment: persuading the private sector to meet the aims of energy policy, NERA: London, http://www.nera.com/wwt/publications/5740.pdf, 74 NEA (2000), Nuclear education and training – cause for concern?, NEA, Paris, http://www.nea.fr/html/ndd/reports/2000/nea2428-education.pdf. 75 Richards R. (2006), ‘Mind the gaps’ Materials World (August 2006), http://www.iom3.org/materialsworld/aug06/news2.htm. 76 Pagnamenta, R. (2007), ‘Skills crisis looming in UK nuclear industry’, The Times (November 5, 2007),

168 employers in the industry have reported skills gaps. Project management, technical and practical skills were the most frequent areas cited77. Over half of employers found that the gaps hindered their ‘customer service objectives’. The industry is expected to need up to 1,000 new graduates a year for the next 15 years, to replace retiring staff, continue operating power plants and provide skills to manage the Nuclear Decommissioning Authority (NDA)’s programme of decommissioning nuclear reactors when they have reached the end of their operating lives.

32. However, there has been encouraging progress, both through the National Skills Academy for Nuclear and the re-establishment of a number of nuclear engineering courses at universities, notably since the Council for Science and Technology published a report in May 2005, entitled ‘An Electricity Supply Strategy for the UK’. Cogent and Energy & Utility Skills SSCs have undertaken a full assessment of the current situation and are developing strategic plans with their client industries and other interested parties to ensure that the needs of the energy sector are met. The National Skills Academy for Nuclear aims, in its first three years, to deliver 800 apprentices and around 150 Foundation degrees as well as upskilling and retraining a further 4,000 existing employees. Research Councils are spending £40 million per annum on energy R&D and this has significant effects on the supply of high-level skills. The Energy Technology Institute will add up to £100 million per annum of extra funding.

33. Furthermore training and research activities have increased in universities, including:

• the Nuclear Technology Education Consortium’s offer of 20 modules at Masters level; • seven universities participating in the Engineering and Physical Sciences Research Council (EPSRC)-funded research programme Keeping the Nuclear Option Open; • EPSRC supporting the Nuclear Doctorate Centre, a collaboration between Manchester’s Dalton Institute and Imperial College London; • Lancaster University providing an undergraduate course in nuclear engineering.

34. The then BNFL supported the establishment of four university research alliances URAs – radiochemistry (Manchester), particle science and technology (Leeds), immobilisation science (Sheffield) and materials performance (also at Manchester) – to underpin critical skills areas.

35. However, given the growing need for replacement power capacity of various kinds it is likely that, even if the UK can supplement the purchase of plant and equipment from the global nuclear market, there will be a need further to increase the supply of graduates with appropriate skills. Many of the other countries covered in the NEA report have taken action. For example, USA has increased its university budget for nuclear science and engineering research by £240m while France has pledged over £600m per year to the CEA civilian R&D programme and several Pacific Rim countries are investing in nuclear R&D.

77 http://business.timesonline.co.uk/tol/business/industry_sectors/utilities/article2806400.ece

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36. The Nuclear Energy Agency has identified a number of actions for Government which it believes would be beneficial in addressing these challenges. Prospect supports these, though we think that other parts of the energy sector would also benefit from the same approach. These include:

• engaging in strategic energy planning, including consideration of education, manpower and infrastructure; • taking responsibility for, or at least make a major contribution towards, integrated planning to ensure that human resources are available to meet necessary obligations and address outstanding issues; • supporting, on a competitive basis, young students and providing adequate resources for vibrant nuclear research and development programmes including modernisation of facilities; and • providing support to encourage the development of educational networks among universities, industry and research institutes.

The UK’s engineering capacity to build a new generation of nuclear power stations and carry out planned decommissioning of existing nuclear power plants 37. The nuclear industry has carried out a detailed study of the skills requirements to support a new build nuclear power programme, using the Areva EPR and the Mitsubishi/Westinghouse AP1000 Pressurised Water Reactors as reference designs.78 Typically a nuclear power plant comprises of 55% plant and equipment, 30% civil engineering and 15% project management and technical support. Plant and equipment includes the manufacture and provision of plant and equipment and site installation and commissioning of plant and equipment. Civil engineering and construction involves the provision of all civil construction materials and services, construction of the main power station (nuclear and turbine island) and construction of infrastructure (balance of plant). Programme management and technical support includes project management and services, nuclear safety and licensing, infrastructure surveys, studies and design, the Environmental Impact Assessment and support for the planning application and Public Inquiry.

38. The Nuclear Industries Association (NIA) estimates that at present the UK could source some 70% of the full project from existing capabilities, and that this could rise to 80% or more with investment in facilities and the training of new personnel over the next five years.

39. As far as decommissioning is concerned, The Nuclear Decommissioning Authority’s (NDA) Strategy79 notes that although some of the work is highly skilled and unique to that process (for example, removing spent fuel from reactors and retrieving and treating radioactive waste), there are several areas that share skills with

78 NIA (2006), The UK capability to deliver a new nuclear build programme: a detailed description of the UK supply chain capability to deliver a new nuclear build programme, NIA, London. http://www.niauk.org/images/stories/pdfs/MAIN_REPORT_12_march.pdf. 79 NDA (2006), NDA Strategy, Stationery Office, London, http://www.nda.gov.uk/documents/loader.cfm?url=/commonspot/security/getfile.cfm&pageid=4957.

170 other industries such as demolition work, construction, finance and mechanical engineering. Tapping into other industries for skills will provide a healthy cross- fertilisation of ideas and the transfer of good practice. However, as the Strategy also notes, this may also result in competition across industry sectors for certain types of high-demand skills such as project management.

40. NDA’s Life Cycle Baselines (LCBLs) show a slow decline in required employee numbers over the next ten years or so. After about 15 years – at a time when new nuclear build might be in full flow – the decline is expected to accelerate and before reaching a plateau. In around 35 years there is a projected small increase in NDA- linked activity associated with the assumed date for the development of the long-term ILW management facility before falling again to the previous level after five years. Only in about 80 years’ time (when Magnox reactor decommissioning and final site clearance is currently planned to begin) do job numbers rise significantly again.

41. NDA argues that such a fluctuating employment profile raises serious issues for both the NDA and for the regional economies of the nuclear site communities and that the pattern of employment will make it difficult to ensure that the necessary skills base is available over such a protracted time period.

42. NDA identified a number of key issues:

• ageing of the nuclear industry workforce; • absence of a consistent picture across the nuclear industry on long-term skills needs; • competition and the increased use of contractors to deliver the decommissioning and clean-up mission, adding to the need to maintain a focus on long-term national skills requirements; • the present focus of university courses, skills initiatives and standards which reflects the historic focus on operations, rather than the growing need for decommissioning and clean-up skills; • the difficulty that many communities in which the NDA operates will face in handling significant peaks and troughs in employment trends.

The value in training a new generation of nuclear engineers versus bringing in expertise from elsewhere 43. Sourcing engineers from overseas, while inevitable in at least the early days of a new programme, carries with it two drawbacks. First, for the high-value-added end of the industry to be outsourced would represent a missed opportunity for investment in high quality sustainable jobs in the UK. These are jobs that could play an important part in a general revival in engineering and especially in power engineering.

44. Secondly, to be become dependent on international sources of expertise would be to enter an uncertain environment characterized by competition for key skills. The NEA report raises a number of international concerns:

• decreasing number and the dilution of nuclear programmes; • decreasing number of students taking nuclear subjects; • lack of young faculty members to replace ageing and retiring faculty members;

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• ageing research facilities and non-replacement of closed facilities; • significant fraction of nuclear graduates not entering the nuclear industry; • provision of suitable trainers because of the situation in universities.

45. The greater the extent to which the UK is dependent on international markets for key nuclear skills, the more vulnerable it will be to shortages in that market and/or increases in the cost of such personnel.

The role that engineers will play in shaping the UK’s nuclear future and whether nuclear power proves to be economically viable. 46. It can be argued that moving from a nationalistic approach, whereby each country developed its own bespoke approach to plant design and construction, to one in which common designs are built and sourced across many countries will be beneficial. The UK in particular, by pursuing gas-cooled technology for its second generation of nuclear plants (the AGRs), has suffered from a degree of isolation from global expertise. Further, the consequences of constructing a series of differently designed plants even within overarching the AGR concept included failure to benefit from series economies of scale or from learning curve effects. There are clear advantages in being able to demonstrate that a new nuclear power programme will be both more economic in construction and maintenance and more efficient in operation. That said, the role of UK engineering will not reach its full potential unless both R&D and manufacturing capability is retained and enhanced.

47. Highly effective engineers will also have a key role in ensuring that construction and operation of whichever designs are chosen as the basis of investment in new build in the UK is carried out successfully in economic terms. Because of its highly capital intensive nature, overruns in the construction phase (in terms of time or cost), and poor operation in the early years after grid connection, have much more negative outcomes for nuclear stations than say for CCGT. Having an effective domestic nuclear engineering capacity available will therefore be crucial in ensuring the economic performance of new build projects and it would be an uncomfortable position for the UK to find itself dependant on a global supply of such engineers over which inevitably the UK would have little real influence.

The overlap between nuclear engineers in the power sector and the military 48. There is a considerable overlap between engineers in the civil power sector and the military. This applies in particular to the submarine nuclear propulsion programme rather than the weapons programme. Many companies (such as Serco, Amec and British Nuclear Group) undertake both civil and military contracts, and individual engineers may work on both at times. In addition many naval personnel retire relatively young (perhaps at 45 or 50). This results in a stream of highly-trained nuclear engineers and artificers (technicians) moving into civilian nuclear jobs.

March 2008

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Memorandum 25

Submission from the Professional Engineering Community80,

1. Introduction and Executive Summary 1.1 The engineering community welcomes the Committee’s inquiry into engineering. The deployment of engineering and technology has allowed mankind to enjoy a quality of life unknown hitherto. Engineering can be the creative process which converts science into products and processes. It can also generate inventions ahead of scientific understanding. Through engineering the UK can continue to develop new ‘solutions’ to many of the current and future challenges facing society and hence strengthen the UK’s economic competitiveness.

1.2 Working in partnership, the engineering community is already playing a leading role in providing: • Careers support and advice • Engineering scholarships and research bursaries • Endorsement for training and professional development • Activity to raise the profile, and change perceptions, of engineering and engineers through public engagement.

1.3 There is still more to do. Addressing each of the Inquiry’s terms of reference, this paper provides an overview of UK engineering and the challenges facing it, and makes recommendations on what extra can be done to maximise engineering’s and engineers’ contribution to meeting these challenges.

1.3.1 The role of engineering and engineers in UK society: • The various schemes for inspiring young people and changing perceptions should be better coordinated, with a view to building upon best practice and recognising an important role for the Shape the Future initiative.

1.3.2 The role of engineering and engineers in the UK’s innovation drive: • We recognise recent and ongoing efforts to ensure that public sector procurement encourages innovation in the delivery of products and services, including the Small Business Research Initiative (SBRI), but question the extent of their success. In view of the significant power of the public sector, procurement has an important role to play in fostering new technologies in the UK. • A review of the current industry / academia technology transfer programmes should be undertaken with recommendations for change. The engineering community is ideally placed to lead this.

1.3.3 The state of the engineering skills base in the UK: • We are aware of the ongoing TRAC(T) review of funding of undergraduate education. Recognising the strategic economic importance of engineering, the real cost of producing engineering graduates should be fully funded. • STEM course uptake (both HE and FE) should be incentivised by progressively writing off student debt for home students who follow careers which meet STEM skills shortages.

80 The list of signatories is attached as an Appendix. The Royal Academy of Engineering has also seen this submission and is supportive.

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• Efforts to raise professionalism among engineering technicians should be increased. The unions will have a key role to play in achieving this. • The engineering community and businesses are already engaged with education providers on the content and structure of new qualifications, e.g. the Engineering Diploma. This should be continued and supported by consistency from Government over the future of new and existing qualifications. • Sector Skills Councils should work closely with the Engineering Council UK and the engineering profession to exploit the benefits of our internationally recognised competence standards for professional engineers and engineering technicians.

1.3.4 R&D: • Public funding of engineering R&D which looks to the longer term, including environmental and sustainable technologies, should be continued, e.g. the carbon capture and storage competition. However, this support should not be too narrow in its scope e.g. not restricted to just post-combustion technologies in this case. • There should be a greater use of Engineering Doctorates, as compared with PhDs, and the scheme should be extended to include Engineering Masters. • Just as the Research Assessment Exercise incentivises excellence in research, so first-class teaching and first-class knowledge transfer should also be incentivised.

1.3.5 Roles in promoting engineering skills and the formation and development of careers in engineering: • Subject specialists for each STEM subject should be introduced for every secondary school student, encouraged by increased incentives for practising science teachers subject to their achievement of agreed performance standards. There should also be additional reward and recognition for the most inspirational teachers of science and mathematics. • Minimum standards for STEM careers advice should be set, improving the training of careers advisers and the information resources available to them, as recognised by recent DCSF initiatives. • There should be an increased drive to raise mathematics standards at primary and secondary school. To this end, we welcome the undertaking of a review of primary school mathematics teaching by Sir Peter Williams. We recommend that every primary school Science Coordinator should be a science graduate. • Industry should work more closely with education providers, engineering institutions and with EPSRC and HEFCE to explain its skills needs, feed into course design and provide students with practical experience of engineering. • Schools should be supported, as outlined above, with key potential contributions being to improve under-19 mathematics and physics skills. • As currently happens with Science (through the Chief Scientist), appropriate recognition should also be given to Engineering and Technology in the policy making process.

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2. The role of engineering and engineers in UK society Engineering continues to make a vital contribution to the UK economy and to UK and international society and well being. Engineering underpins virtually every aspect of modern life, from defence to health and construction. UK successes to be celebrated include the Channel Tunnel Rail Link, Airbus, plastic electronics and Formula 1. Engineering also provides the backbone of all IT. Moreover, engineers are at the forefront in tackling many of the challenges facing the international community e.g. scarcity of clean water, climate change and sustainable and secure energy sources. However, UK engineering is now part of a global economy. As a recent report81 by the think tank, Demos, noted: “Products are assembled along global supply chains. Savings flow through global financial markets. Something similar is happening to how ideas and technology develop. The rise of China and India means US and European pre-eminence in science-based innovation cannot be taken for granted. Nor can the knowledge jobs that have depended on it."

2.1 Engineering, with approximately 0.5 million professional engineers, brings technology, products and services to market and in doing so directly contributes (through SET-intensive sectors) approximately £250 billion82, 27% of the total UK GDP (2002). In 2006 engineering services83 directly contributed £3.2bn in exports to the Balance of Payments.

2.2 More needs to be done to communicate the extent of engineering’s and engineers’ centrality / contribution to UK society and to improve the perception of both amongst young people – our potential future engineers - and within the media. This contribution is quite separate from a strong and internationally recognised science base. To correct misconceptions, Government, business, the engineering community and education providers are all undertaking awareness-raising, outreach and education programmes, particularly for young people. Even though this activity reaches over 50,000 young people per year, more understanding is needed to ensure that such activity reaches the ‘unconverted’.

• The various schemes for inspiring young people and changing perceptions should be better coordinated, with a view to building upon best practice and recognising an important role for the Shape the Future initiative.

3. The role of engineering and engineers in UK's innovation drive The engineering community agrees with the content of the Government’s ‘Next Steps’ policy. However, emphasis on a skills base is a necessary but not sufficient precursor to innovation. While, as previously stated, the UK enjoys a science base second only to the US (measured by numbers of citations and papers), the UK continues to be less successful than many of our competitor nations in translating this research into commercially successful products – although progress is being made, as noted in Lord Sainsbury’s recent review of science and innovation policies ‘The Race to the Top’84. Professional development of engineers in the UK does not offer sufficient opportunity to engage with university research. It is also much rarer in

81 The Atlas of Ideas: How Asian innovation can benefit us all, Charles Leadbeater and James Wilsdon, Demos, January 2007 82 The Frontiers of Innovation: Wealth Creation from Science, Engineering and Technology in the UK, the ETB 2004 83 http://www.statistics.gov.uk/downloads/theme_economy/PinkBook_2007.pdf 84 The Race to the Top: A Review of Government’s Science and Innovation Policies, Lord Sainsbury of Turville, October 2007

175 the UK than in other nations for senior management to transfer between industry and academia.

• We recognise recent and ongoing efforts to ensure that public sector procurement encourages innovation in the delivery of products and services, including the Small Business Research Initiative (SBRI), but question the extent of their success. In view of the significant power of the public sector, procurement has an important role to play in fostering new technologies in the UK. • A review of the current industry / academia technology transfer programmes should be undertaken with recommendations for change. The engineering community is ideally placed to lead this.

4. The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile). The UK’s engineering and technology skills base is essential for inward investment. Employers regularly report shortages of engineers and gaps in their skills and recent reports suggest that the number of engineering graduates needs to double over the next ten years.85 According to one report, in 2007 nearly 50% of engineering employers had recruited from overseas in the preceding 12 months to cover specific skills shortages.86

4.1 Higher Education (HE) Significant numbers of engineering graduates are lost to the profession, although this varies between disciplines. Whilst some ‘leakage’ to financial services and other professions should not necessarily be a cause for concern, more work is needed to understand better which other professions engineering graduates and postgraduates enter and why they do so.

Key constraints on entry to degrees are a lack of mathematics skills and a lack of physics skills. With mathematics, this reflects reducing numbers of well-qualified mathematics teachers, and changing syllabi for national examinations. For example, teacher recruitment targets have generally been missed by 15% or more each year since 2000/0187. Two recent developments are however welcome. Firstly, the Further Mathematics Network has enabled further mathematics to be studied by many who would not otherwise have such opportunity. Secondly, development of the Engineering Diploma at Level 3 to include an applied mathematics unit will help to promote it as an equally relevant qualification for engineering as mathematics A Level.

A recent small-scale study also identified that the cost of engineering teaching is not being fully met with current funding, with the average shortfall of the departments surveyed in the study being 14%.88 The continuing TRAC(T) review of funding of undergraduate education is therefore welcomed.

One important trend that should be recognised is the increasing proportion of international students in engineering HE in the UK, especially at Masters level. In the year 2005-2006, nearly 30% of Engineering and Technology HE students were from

85 Shaping up for the Future, CBI 2007 86 Engineering and Technology Skills and Demand in Industry, IET 2007 87 “The UK’s Science and Mathematics Teaching Force” Royal Society 2007 88 The Costs of Engineering Degrees, ETB / EPC 2007

176 outside the UK.89 We should therefore look to encourage more home students through expanded financial incentives e.g. debt cancellation for those following careers with skills shortages.

4.2 Further Education (FE) and vocational skills There is evidence that the UK lags far behind the continent in developing and nurturing technician skills, resulting in significant shortfalls at Level 3 in the workforce. Although it will vary across engineering disciplines, we believe that generally it is at the vocational and intermediate skills level that attention should be focused. Although there were 559,000 non-work based learners in 2006/07 these numbers contain an element that is 22% down in FE since 2005. It is important that full advantage is taken of the opportunity offered by the recent apprenticeship review. Moreover the advanced apprenticeship frameworks now have the potential to link to the existing professional standard of Engineering Technician.

4.3 Diversity The profession has a white male bias, meaning that there is an untapped reservoir of potential talent. Gender issues are particularly acute. In 2005-2006 only 15% of students on Engineering and Technology HE courses were female. This compares with an overall female participation rate in HE of 58%90.

Similarly, there are also issues surrounding disability and ethnicity – the latter in terms of specific Black and Minority Ethnic groups (Black Caribbean and Bangladeshi).91

There are many organisations working, often independently, on separate parts of this problem and yet little progress has been made in recent years.

4.4 All these figures - on HE, FE and diversity - should be seen in the context of a projected decline in the 16-18 year old cohort. In 2004 the proportion of working population aged under 40 was 12% higher than those aged over 40, but by 2020 the number of those under 40 will be 4% lower than those over 40.7

4.5 Soft skills One area in which anecdotal evidence suggests engineers do currently lack skills is the misleadingly entitled ‘soft skills’ which are so valued by employers. These skills include communication, team work, project management and the more basic skills of work readiness. Employers often develop these relevant to their needs but more work placements during FE and HE could also address this. Companies will nevertheless continue to have a key role to play in supporting graduates with development of their soft skills as part of Initial Professional Development. It is encouraging that once their employees then reach the standard for professional registration that companies believe these issues have been largely addressed.92

• We are aware of the ongoing TRAC(T) review of funding of undergraduate education. Recognising the strategic economic importance of engineering, the real cost of producing engineering graduates should be fully funded.

89 Engineering UK 2007, The Engineering and Technology Board (ETB) 90 Patterns of higher education institutions in the UK: Seventh Report – Universities UK, September 2007. 91 Science, Engineering and Technology in the UK’s Ethnic Minority Population, Royal Society 2005 92 UK SPEC Baseline Project, Final Report, ECuk November 2007

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• STEM course uptake (both HE and FE) should be incentivised by progressively writing off student debt for home students who follow careers which meet STEM skills shortages. • Efforts to raise professionalism among Engineering Technicians should be increased. The unions and employers will have key roles to play in achieving this. • The engineering community and businesses are already engaged with education providers on the content and structure of new qualifications, eg the Engineering Diploma. This should be continued and supported by consistency from Government over the future of new and existing qualifications. • Sector Skills Councils should work closely with the Engineering Council UK and the engineering profession to exploit the benefits of our internationally recognised competence standards for professional engineers and engineering technicians.

5, The importance of engineering to R&D and the contribution of R&D to engineering Engineering R&D tends to take place in industry and hence is often funded commercially rather than by Government. Where it is publicly funded, HEFCE is proposing changes to the way its quality is measured. The consequences appear to be that in future there will be even greater emphasis on pure science rather than applied engineering. As before, there is also still no explicit recognition of the value of first-class teaching and first-class knowledge transfer.

5.1 Currently there is also a lack of engagement between engineering graduates and the research their universities undertake (or could undertake). The Engineering Doctorate is a scheme that provides an indication of how much better this could be done. As well as expanding this scheme, the lessons learnt could easily be used to create a similar Engineering Masters programme

• Public funding of engineering R&D which looks to the longer term, including environmental and sustainable technologies, should be continued, e.g. the carbon capture and storage competition. However, this support should not be too narrow in its scope e.g. not restricted to just post combustion technologies in this case. • There should be a greater use of Engineering Doctorates, as compared with PhDs, and the scheme should be extended to include Engineering Masters. • Just as the RAE incentivises excellence in research, so first class teaching and first class knowledge transfer should also be incentivised.

6. The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering. This is already an active area. All of these bodies have a role to play in promoting engineering skills and careers. To ensure maximum impact and consistency of message and approach, these activities must be well coordinated. The engineering community working together on this response and the Royal Academy of Engineering leadership of Shape the Future are examples of what can be done to good effect.

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6.1 Schools Engineering’s profile in UK secondary schools as a career choice is low and often poorly understood by non-specialist teachers and careers advisers. While the investment in the Science Learning Centres, the National Centres of Excellence in the Teaching of Mathematics, and the appointment of a National Director for STEM are welcome, their potential will only be fully realised if they are properly funded, applied across the whole of the school system and supported by well-informed and well-resourced teachers and careers advisers. Action to achieve this should include: • Subject specialists for each STEM subject for every secondary school student, encouraged by increased incentives for practising science teachers subject to their achievement of agreed performance standards. There should also be additional reward and recognition for the most inspirational science and maths teachers. • minimum standards for STEM careers advice, improving the training of careers advisers and the information resources available to them, as recognised by recent DCSF initiatives. • an increased drive to raise mathematics standards at primary and secondary school. To this end, we welcome the undertaking of a review of primary school mathematics teaching by Sir Peter Williams. We recommend that every primary school Science Coordinator should be a science graduate.

6.2 Universities should: • be funded to ensure adequate practical education, and to embrace new methods of teaching and learning, for example Conceive, Design, Implement and Operate (CDIO).

6.3 Industry should: • work more closely with education providers, engineering institutions and with EPSRC and HEFCE to explain its skills needs, feed into course design and provide students with practical experience of engineering.

6.4 Government In addition to the recommendations made earlier in this report, e.g. on harnessing the potential of procurement as an innovative force: • schools should be supported, as outlined above, with key potential contributions being to improve under-19 mathematics and physics skills. • As currently happens with Science (through the “Chief Scientist”), appropriate recognition should also be given to Engineering and Technology in the policy making process.

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Appendix

The Professional Engineering Community Signatories

Institute of Acoustics Royal Aeronautical Society Institution of Agricultural Engineers Chartered Institution of Building Services Engineers Institute of Cast Metals Engineers Institution of Chemical Engineers Institution of Civil Engineers British Computer Society Energy Institute Institution of Engineering and Technology Institution of Engineering Designers Society of Environmental Engineers Institution of Fire Engineers Institution of Gas Engineers and Managers Institute of Healthcare Engineering and Estate Management Institute of Highway Incorporated Engineers Institution of Highways and Transportation Institution of Lighting Engineers Institute of Marine Engineering, Science and Technology Institute of Materials Minerals and Mining Institute of Measurement and Control Institution of Mechanical Engineers Institute of the Motor Industry Royal Institution of Naval Architects British Institute of Non-Destructive Testing Institution of Nuclear Engineers Society of Operations Engineers Institute of Physics Institute of Physics and Engineering In Medicine Institute of Plumbing and Heating Engineering Institution of Royal Engineers Institution of Railway Signal Engineers Institution of Structural Engineers Chartered Institution of Water and Environmental Management Institution of Water Officers The Welding Institute The Engineering and Technology Board The Engineering Council UK

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Memorandum 26

Submission from ICE (Institution of Civil Engineers)

Inquiry into Engineering The Institution of Civil Engineers (ICE) was founded in 1818 to ensure professionalism in civil engineering. It represents 80,000 qualified and student civil engineers in the UK and across the globe. The ICE has long worked with the government of the day to help it to achieve its objectives, and has worked with industry to ensure that construction and civil engineering remain major contributors to the UK economy and UK exports. The ICE has worked with the Engineering & Technology Board (ETB) to co-ordinate responses to this inquiry; this submission therefore focuses on issues specific to the civil engineering sector. 1. Executive Summary 1.1 Professional engineering services contribute £2B to the UK economy93 and the construction sector in which civil engineering operates accounts for 10% of GDP94. 1.2 Civil engineers are central to the creation and maintenance of the UK’s transport, energy, waste management, water supply and flood defence networks. A stop/start approach to developing these networks is damaging quality of life and endangering economic competitiveness. 1.3 Priority policy areas such as climate change and the house building programme require technology to be deployed on a massive scale. Civil engineers have the applied technical skills to deliver such programmes but are not being utilised by government at the strategic level. 1.4 Action is needed to improve the sector’s capacity to absorb both formal R&D and “hidden innovation” arising from new business processes, technology transfer and problem solving on individual projects. 1.5 The UK’s current high demand for infrastructure investment comes at a time when global demand, the retirement of baby boomers and reduced entry into the sector during the 1990s are combining to create capacity constraints. 2. Introduction

93 Office of National Statistics (2007), United Kingdom Balance of Payments – The Pink Book 2007, HMSO, London 94 Pearce, D (2003), The Social and Economic Value of Construction, nCRISP, London

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2.1 All UK engineering services contribute £2B to the UK economy. Civil engineering sits at the heart of the construction sector which accounts for 10% of UK GDP. 2.2 Civil Engineering and Civil Engineers create and maintain the physical fabric underpinning life in the UK. A historic culture of stop/start investment in our rail, road, energy generation, waste, water and flood defence networks is damaging quality of life and endangering future economic competitiveness. ICE’s recent report, State of the Nation – Capacity and Skills identified the need for a Strategic Infrastructure Planning Body, chaired by a Chief Infrastructure Advisor, to work with government and industry to place infrastructure development on a long term, co-ordinated footing. 2.3 Civil Engineering will be central to the delivery of many of the government’s policy priorities including addressing climate change, house building and improving UK security and resilience. These problems require scientific knowledge to be deployed on a massive scale. Professional Civil Engineers have the management and applied technical skills to deliver such programmes in a market environment. Government is not, however, consistently engaging engineers in this task. For example the recently formed Climate Committee has no engineers amongst its membership, damaging its ability to discharge its duty to, “advise on the pathway to…reduce UK CO2 emissions by at least 60 per cent by 2050”. A Chief Infrastructure Advisor would help address this gap. 2.4 A ramping up of R&D expenditure in civil engineering will be required to deal with the challenges outlined above. However, much innovation in the civil engineering sector derives from improvements in business processes, technology transfer from other sectors or through solutions to problems thrown up on individual projects. Government can help create the conditions that will enable the industry to absorb both this “hidden innovation” and formal R&D through its role as research funder, client, regulator and policy maker. 2.5 The closure of the DTI’s Partners in Innovation Scheme and the changing roles of the former government research laboratories has hastened a decline in “intermediate research”, which transforms breakthroughs into industry codes and standards. This activity has historically been an important precursor to the use of new knowledge on civil engineering projects due to client and investor demands for high degrees of certainty and concerns over public safety. Industry has a collective responsibility in this area. However the sector is characterized by highly fragmented supply chains and

182 a perception that benefits from investment in innovation will accrue to third parties. When coupled with the low profit margins common in the sector, this creates a disincentive to invest. Government as the major client for infrastructure projects and professional bodies with their knowledge transfer roles need to show leadership and work with industry to increase investment in knowledge codification and transfer. 2.6 The UK does face civil engineering skills challenges. The Office of Government Commerce predicts annual growth in the infrastructure sector of 4.2% between 2005 and 201595. This period of high demand comes at a time when a decline in engineering student numbers (now partially reversed) and looming retirement of many of the “baby boom” generation are combining to create skill supply problems. 2.7 The UK’s stop/start approach to infrastructure development is also a factor in creating capacity constraints as it encourages short termism and an unhelpful environment for the development of high level skills.

3. The role of engineering and engineers in UK society 3.1 Economic and Quality of Life Contribution 3.1.1 Engineering is a major contributor to UK prosperity. All engineering services contributed £2B to the UK balance of payments in 2006. The construction sector, of which Civil Engineering is an integral part, accounts for circa 10% of GDP. 3.1.2 Civil Engineering and Civil Engineers create and maintain the physical fabric underpinning UK life. Furthermore the creation and maintenance of modern transport and telecommunications networks are fundamental to future UK competitiveness. We therefore welcome that government has at the strategic level identified investment in infrastructure as a priority area for improving productivity growth96. 3.1.3 Our recent report State of the Nation – Capacity and Skills identified a historic culture of stop/start investment in the UK’s rail, road, energy generation, waste, water and flood defence networks. To tackle this problem ICE is promoting the case for a Strategic Infrastructure Planning Body to work with government and industry to place infrastructure development on a long term, co-ordinated footing. In addition to securing more effective delivery of infrastructure we believe that the increased

95 Office of Government Commerce (2006), 2005-2015 Construction Demand/Capacity Study, OGC, London 96 HM Treasury (2007), Productivity in the UK 7, HMSO, London

183 certainty such a body would create would create an environment conducive to greater industry investment in skills and innovation. 3.1.4 Engineers play a major role across the economy. A recent survey by the Engineering and Technology Board indicated that three-out-of-ten directors of a sample of FTSE 100 companies with a first degree, had studied engineering97. The same survey showed that circa 25% of civil engineering graduates do not enter a professional engineering career but instead choose to work in other sectors. This demonstrates that the core skills developed via training in engineering (applied numeracy, technical literacy, problem solving and cost/benefit analysis amongst others) are highly valued across the economy.

3.2 Importance of Civil Engineering to Government Policy Priorities 3.2.1 Civil engineering will be vital to achieving government’s goals in many of its priority areas, including: y Climate change: adaptation will require major investments in flood risk management and improving the resilience of infrastructure and buildings. Mitigation will require action in three areas underpinned by civil engineering; transport, energy generation and energy use in buildings. y House building and the Sustainable Communities plan. Major investment in infrastructure will be needed to support the government’s planned 3 million new homes. y Security and resilience. Issues including energy security and the protection of buildings and infrastructure from terrorist attack require engineering solutions.

3.2.2 All of these areas will require the deployment of scientific and technical knowledge on a massive scale. Professional Civil Engineers have the management and applied technical skills to deliver such programmes in a market environment. Government is not however engaging engineers in strategic planning to tackle these issues. For example the recently formed Climate Committee has no engineers amongst its membership, undermining its ability to discharge its duty to, “advise on the pathway to… reduce UK CO2 emissions by at least 60 per cent by 2050”. Government policy making has been well served by input from the Chief Scientific

97 Engineering and Technology Board (2007), Engineering UK 2007, ETB, London

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Advisor and scientific advisors within departments. Given the scale of the UK’s infrastructure delivery needs there is now a strong case for the appointment of a Chief Infrastructure Advisor to fulfill a similar advisory role across government. 4. The role of engineering and engineers in UK's innovation drive 4.1 ICE urges the committee to take a broad view of innovation including: y Generation of ideas y Development of ideas (into products and services) y Adoption of innovation y Supply/transmission of innovation 4.2 The EU’s annual innovation scorecard indicates that generically, the UK is strong in generation of ideas but weak in their development, adoption and diffusion. 4.3 A ramping up of R&D expenditure will be required to deal with many of the challenges outlined above. However, much of the innovation that has delivered significant improvement in the civil engineering sector in recent years is not the result of the direct application of R&D. Other forms of innovation that have been important include: y Organisational and construction process improvements, for example the contractual and risk and reward arrangements developed by BAA for the construction of Heathrow Terminal 5 enabled the establishment of fully-integrated expert teams, allowing contractors to focus on working together and to share more information than was common under traditional arrangements. This was a major factor in the successful delivery of this highly complex project. y Technology transfer from other sectors, for example the use of off-site manufactured units in residential building projects. The steel maker Corus has applied its production line expertise to develop a range of fully fitted steel framed accommodation modules. This system has been used for a £1 billion development of accommodation for military and civilian personnel near Salisbury Plain and Aldershot, resulting in a 30 percent reduction in construction costs, reduced delays due to weather conditions and 50 per cent fewer deliveries to site98.

98 National Endowment for Science, Technology and the Arts (2007), Hidden Innovation, Nesta, London

185 y Knowledge sharing and diffusion. Over 1000 organisations have participated in Constructing Excellence’s demonstration programme, gleaning knowledge from over 450 projects with a value of £12.5B. Companies participating in the programme are performing above the industry average against 20 indicators including qualifications and skills of employees. y Project based innovation. Problem solving by the interdisciplinary teams working on individual construction projects has historically been an important driver of innovation in the sector. 4.4 There is an opportunity to improve the civil engineering sector’s capacity for absorbing this innovation by overcoming the following barriers: y Uncertainty of demand. The stop/start nature of UK infrastructure development, exacerbated by uncoordinated procurement across the public sector, does not create conditions conducive to investment or risk taking y Industry structure. Civil engineering and construction are characterised by highly fragmented supply chains leading to a perception that it is difficult for an organisation to recover its costs from developing new intellectual property because the benefits accrue to other members of the supply chain, or in the case of many major projects to society as a whole. y Decline of the previously strong “intermediate research sector”. Former government research centres including the Transport Research Laboratory, the Building Research Establishment and Hydraulics Research Wallingford, and industry owned groups such as CIRIA, have traditionally made a major contribution by codifying emerging knowledge into industry codes and standards. This activity has also allowed new knowledge to be deployed on civil engineering projects in an environment where clients, investors and regulators require high degrees of certainty that a process is robust, bankable and safe. The closure of the DTI’s Partners in Innovation scheme in 2002 has contributed to a decline in this type activity at a time when industry needs to be scaling up its use of new knowledge. y A lack of demand for innovation from clients, leading to a culture where organisations develop competitive advantage via cost efficiency rather than innovation. 4.5 Positive steps that could help overcome these barriers include y ICE’s proposed Strategic Infrastructure Planning Body would deliver greater

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transparency of demand, improving the investment environment. y Government in all its forms should be a more effective client. Incorporating and enforcing a requirement for whole life costing into public procurement would drive innovation in areas such as energy efficiency. y Government should embrace the case for positive, targeted regulation. Tightening of the Building Regulations since 1990 has been a driver for major improvements in the energy efficiency of new buildings. y Action to reinvigorate the intermediate research sector. Government as a major client and a proxy for the public interest should take some direct responsibility. However we recognise that professional bodies, working with best practice bodies such as Constructing Excellence, also have a role in this area. 5. The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity 5.1 The long term maintenance of the UK skills base must be addressed strategically across the Science, Technology, Engineering and Mathematics (STEM) sector. 5.2 ICE believes that the introduction of 14-19 diplomas is a positive step and is working to support both the engineering and construction & built environment diplomas. 5.3 It will be particularly important for future competitiveness to ensure that the UK has world class STEM teaching in schools and universities. There is a widely held view that universities are incentivised to maximise research ratings, with less emphasis placed on the quality of teaching, with consequences for the quality of graduates. 5.4 In the short term securing the necessary capacity and skills to deliver the UK’s infrastructure investment programme is a significant challenge. The Office of Government Commerce predicts annual growth in infrastructure demand of 4.2% between 2005 and 2015, whilst projects such as Crossrail will create strong regional demands. Global demand for engineering services is high, particularly in emerging economies, where returns on investment are often significantly higher than in the UK. 5.5 This period of high demand comes at a time when a decline in numbers entering engineering in the 1990’s and the pending retirement of many “baby-boomers” are combining to create pressure on supply. 5.6 Skill gaps are being filled by overseas recruitment but there is widespread acknowledgement that the sector will need to draw on a wider and more diverse range

187 of UK talent. ICE is active in this area through its ICEfloe initiative aimed at identifying and removing obstacles to equal opportunities in the sector. There are also many examples of changing practice in industry, for example “buddy” schemes pairing older and younger workers, allowing the former to contribute past retirement age, whilst improving the transfer of knowledge and skills to the next generation. 5.7 As noted above, we believe that lack of transparency of demand encourages short term behaviour in the sector and militates against organisations and individuals investing in higher level skills, strengthening the case for a Strategic Infrastructure Planning Body.

6. The importance of engineering to R&D and the contribution of R&D to engineering 6.1 The majority of formal R&D in UK civil engineering takes place in universities. Annual spend is circa £40M, including around £5M from industry. The UK will require increased spending on R&D and action is also needed to increase the industry’s ability to absorb research outputs. 6.2 The UK’s academic base is currently performing well. In the 2001 Research Assessment Exercise, civil engineering academics outperformed the national average for the quality of their work. In the longer term however, several major universities are reporting difficulties in recruiting UK students at MSc and PhD levels, a view supported by Engineering and Technology Board figures99 which suggest that non UK students account for 30% of all (undergraduate and post graduate) civil engineering students in UK universities. There is a need for greater understanding of what happens to these students on graduation and the long term impact on: y Capacity for world class teaching in universities y Our ability to retain the cohort of highly skilled individuals required to attract R&D investment from overseas y Diffusion of research and innovation across UK industry

7. The roles of industry et al in promoting engineering skills and careers

99 Engineering and Technology Board (2007), ibid

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7.1 ICE and other engineering bodies work closely with the Engineering and Technology Board in this area. The ETB’s submission to the Committee will provide more detail on this work. 7.2 There is a great opportunity for government, industry and the professions to promote engineering’s role in tackling environmental and human development issues such as climate change and poverty reduction. These are issues which can attract bright young people into careers in engineering. 7.3 Within civil engineering, ICE is active in working with other stakeholders in areas including: y Promotion of engineering in schools y Accreditation of undergraduate degrees and supporting academics with implementing the changes required to adapt teaching to the profession’s changing needs y Working with industry to sponsor students at university through our QUEST scheme y Supporting the early professional development of engineers through training agreements y Supporting specialist skill development through a system of specialist registers y Engagement with bodies such as the Regional Skills Fora, the Academy for Sustainable Communities Skills and ConstructionSkills Regional Skills Observatories

8. Recommendations Based on our evidence, ICE makes the following recommendations: 8.1 That government should endorse ICE’s proposal for a Strategic Infrastructure Planning Body chaired by a Chief Infrastructure Advisor. 8.2 That ahead of the appointment of a Chief Infrastructure Advisor government should appoint a senior engineer to the Climate Change Committee and any bodies created to provide strategic oversight of the UK’s house building and security & resilience policies.

8.3 That government reviews how its role as client, regulator, research funder and policy maker can improve the civil engineering sector’s capacity to absorb innovation.

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8.4 That government should work with industry and professional bodies to reverse the decline in intermediate research in civil engineering. 8.5 That government work with industry to address the long term causes of skills and capacity constraints affecting UK’s ability to deliver and maintain infrastructure.

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Memorandum 27

Submission from the Engineering and Machinery Alliance (EAMA)

Summary (numbered to sections) 1.1 Manufacturing’s added value offers potential to raise the living standards of those that service jobs may not reach. 1.2 The terms engineer and engineering are used to cover too many different meanings. We need a new, broadly shared vocabulary, so that we can talk about these problems precisely. Unless we can define the problems precisely we can’t will the means to resolve them. 2.1 Innovation is about new value. 2.2 Engineering lies at the heart of this endeavour. 3.1 UK intermediate skill levels are well below the best performers. But is that what we mean by engineers? 4.1 As companies simplify their activities to concentrate on core competences, SMEs are increasingly responsible for technological development or innovation in an information-overloaded business environment. 4.2 Under such circumstances it is not clear where or how the market will provide the ‘bite sized’ information packages that SMEs can absorb to inform their future activities and R&D. 5.1 From an SME perspective, far too many young people are leaving school without the basics. 5.2 Some work in a Danish engineering college shows that: growth in knowledge based jobs doesn’t necessarily lead to an increase in value added; exposing undergraduates to real life work environment raises their respect for practical skills. Introducing EAMA 1. The Engineering and Machinery Alliance represents 1,300 mechanical engineering firms in nine subsectors represented by the following organisations: • British Automation and Robot Association • British Paper Machinery Suppliers Association • British Plastics Federation • British Turned Part Manufacturers Association • Confederation of British Metalforming • Gauge and Toolmakers Association • Manufacturing Technologies Association • Printing, Papermaking and Converting Suppliers Association • Processing and Packaging Machinery Association 2. Together they represent mostly SME firms with a total turnover of some £7 billion split pretty evenly between finished capital goods and components for capital goods.

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3. UK mechanical engineering sector turnover in 2006 was some £37 billion, 76% of it from exports -- we are one of the few UK manufacturing sectors to regularly run a positive trade balance. Our customers are in other manufacturing sectors, automotive, aerospace, medical, food and materials handling and processing for example.

Sales £ billion Exports £ Trade balance Exports % GVA £ billion No. of firms billion sales 37 28 +5.6 76 13.1 13,007 Sources: Annual Business Inquiry (16 November 2007, reporting 2006 data) Export data from Monthly Review UK External Trade (November 2007)

4. The sector is high value added to unit of energy consumed. For example, work undertaken by ILEX for the DTI (gas use to gross value added), shows mechanical engineering has high value added to energy (gas) consumption. So it is the sort of industry that the UK should be encouraging in this increasingly carbon constrained world.

Gas use / GVA (mcm / £) Construction 0.01 Mechanical engineering 0.09 Vehicles 0.10 Paper, printing 0.19 Food, beverages 0.21 Mineral products 0.34 Chemicals 0.50 Iron and steel 0.89 Non ferrous metals 1.25

1. The role of engineers and engineering in UK society 1. If the UK economy is to provide rewarding jobs that enable everyone to improve their standard of living then that means tackling the task for all people at all levels of aptitude. Both the manufacturing and service sectors have vital roles to play, because they require different skill sets of the people who work in them. 2. One of the clearest points of differentiation between the two sectors is that manufacturing is capital intensive, that value is added through a physical transformation process involving some sort of machinery. This process may well have been conceived in the first place by a highly qualified engineer. Running the process may well require specialist skills, but in all probability at a lower level than those of the original engineer. 3. Adding value in this way offers an excellent foundation for employment in a job that does not necessarily require university levels passes, although it may well require good judgment, solid maths and a keen ability to see concepts on a paper in three dimensions. 4. The challenge for government and society as a whole is to recognise this diverse and oft-overlooked societal potential that’s embedded in manufacturing alongside the economic benefits. 5. We need policies that will lock it in for the UK, rather than let it move offshore to the benefit of citizens in other countries. 6. To do this we need to be much more precise about what we mean by ‘engineer’ and ‘engineering’, even perhaps as the terms are used in these questions. Are they

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intended to cover a multitude of different things? They have surely been weakened through over-use. 7. As the director of one of our member association writes: “In Germany an engineer is a revered person. He can only be called an engineer providing he/she is suitably university qualified. “In England we have many levels of engineer ranging from the university graduate to the Corgi gas fitter! We seem ashamed to refer to trades people and must disguise their trade with the term engineer. Sadly as a nation we have far too few qualified trades people whether it be in manufacturing or building trades. It seems unless you have been to university and have a degree you are deemed to be a failure, which of course is absolute nonsense. “Sophisticated manufacturing technology producers probably need well qualified engineers, even chartered engineers. On the other hand, turned parts manufacturers need well qualified craftsmen. People who are good with 'their hands' and able to picture the end result before they start. They are people who require more ‘hands on’ training than in the classroom/lecture theatre type training.

“Too often they are looked down on but in reality they should also be prized for their 'practical abilities' in a multitude of disciplines covering: tooling and its geometry, computer programming, speeds and feeds for machining various materials, as well as the ability to improvise.” 2. The role of engineering and engineers in the UK’s innovation drive 1. Innovation is about creating new value. It depends on technology, talent and a tolerance of failure. 2. Engineering lies at the heart of many of the solutions that are needed to treat ‘today’s problems’, from climate change and depleting energy sources to waste handling and the elimination of risk, and that’s quite apart from the development of new life enhancing products. 3. If ‘politics is the art of the possible’, what about ‘engineering as the science of the impossible’? From flight, to containing nuclear fission to produce domestic power, to looking inside the human body without a single cut or walking away from 180mph car crash apparently unscathed, none of this would be without engineers and engineering. 3. The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity 1. Again this question begs the clarification, what do we mean by engineers in this context? Do we need a new vocabulary that will communicate much more clearly what we mean? Is it the need for fully qualified engineers? Or technically competent people? Or very specialist skills? 2. The EAMA survey in December 2007 shows 93% of companies have problems recruiting the people they want. But this is not just engineers, but technicians and craftsmen too. It also shows that apprenticeships are becoming more popular again.

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3. The UK does not compare favourably with the best at intermediate skills levels. According to the OECD 35% of the UK’s working population aged 25-64 are low skilled. This is twice the rate of the best performers, USA, Canada, Switzerland, Germany and Sweden. 36% are qualified to intermediate status compared to 50% in Germany and New Zealand. 4. The importance of engineering to R&D and the contribution of R&D to engineering 1. It has been shown (Bower and Christensen 1995) that companies act most effectively in their area of expertise when they have extensive knowledge of what is going on in their business sector. When they are well ‘plugged-in’ they exploit R&D more sharply and counter or adapt threats such as disruptive technologies more dynamically. 2. But business structures are changing. Large original equipment manufacturers (OEMs) are narrowing their focus to certain key, core competences, divesting all sorts of technical requirements onto their supply chains, often onto SMEs. 3. However, SME suppliers are often so strongly focused on their day-to-day operations that looking beyond their suppliers and customers to ‘scan the horizon for technological developments’ is a low priority. 4. Universities, research centres and even trade associations can help here, but the real question is, are the Knowledge Transfer Networks fit for this purpose in this information overloaded world. 5. And if so, how are SMEs to acquire the bite size information packages from them that they need to ensure that they are up to speed and as a result can decide to be directly involved, perhaps with others, in R & D programmes progressing emerging technologies, new product and process technologies, new markets and new techniques, new standards and regulations

and other factors relevant to the SME and OEMs’ interests? It is not clear that the market is going to produce this information service. 5. The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering 1. As far as engineering and manufacturing more generally are concerned, the UK education system has failed. 2. Too many firms find that young people don’t have the basic grounding in English, Maths and ICT. Their work ethic also is generally poor. 3. Companies, particularly SMEs find that they have to educate young recruits in these basics. This is costly. Also, it is patently not their role. Ideally, the nation should educate. Business should train. 4. Work by Professor Ove Poulsen (Rector, Aarhus Engineering College, Denmark) throws some interesting light in this area. 5. For example, he shows that while high tech jobs in EU manufacturing declined 11% in the ten years to 2005, high tech service jobs grew by 37% based on Eurostat and Work Foundation data. But he observes that the expansion in

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knowledge based service industries (in which he includes education) has seen little pay-off in terms of increasing the EU’s potential growth and productivity. “Indeed the expansion of employment in knowledge based industries has seen a slowdown in productivity growth in Europe, while a similar expansion in the USA has been accompanied by an acceleration in productivity growth.” 6. In other case studies he suggests that there may well be a link between the amount of time a student spends in tertiary education (in Denmark) and that individual’s propensity to favour service/public service employment. In part this may be because education is becoming increasingly academic. 7. And in what may be described as an ‘antidote’ project between Aarhus Engineering College and the Danish wind turbine industry, undergraduates apparently working as junior staff on projects as part of their studies rediscovered respect for practical skills. Conclusion 1. We endorse Semta’s recommendations to the committee as the immediate priorities: a. Continued and enhanced flexibility for funding of provision, to suit small firms, those wishing to reskill and upskill existing employees, and those wishing to offer training at higher levels. b. More help for companies to plan their training needs in a more strategic way, using tools such as Semta’s Business to Skills Model, the Strategic Workforce Planning Tool, and the Six Stage Model Assessment Tool. c. The need for sectoral experts to help companies use the tools identified in two above to ensure that training and development undertaken by companies delivers a measurable business benefit. 2. However, we fear that this policy area may continue to confound best endeavours until there is a broadly accepted terminology that enables all stakeholders to define the problems and solutions precisely. 3. Progress in research, development and innovation needs SME input as well as that of the larger, international groups. It is not clear that the market is going to provide the information that SMEs need to be dynamic participants. Mentoring or other forms that foster supply chain co-operation need to be explored to see if they can provide the solutions in a fast changing, globally competitive environment.

March 2008

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Memorandum 28

Submission from the UK Electronics Alliance

Contact

1. Executive summary 1.1. The UKEA (see ‘Introduction’ below) welcomes the many initiatives that have been introduced by Government to encourage business growth and, in particular, those that are bringing benefit to the UK’s electronics sector. 1.2. Our sector’s manufacturing capability in particular has suffered significant decline, especially since the ‘dotcom crash’ but still remains highly innovative and contributes significantly to UK GDP despite many challenges including high costs and skills shortages and what are often perceived, especially by SMEs, as complex and onerous legislative control on one hand and uncoordinated business support initiatives on the other. 1.3. An innovative, efficient and competitive manufacturing capability is vital to the future prosperity of the UK economy and particularly so in electronics, a sector that continues to grow rapidly in global terms. Clearly the UK cannot and should not try to compete in those markets already dominated by low cost geographic regions but should increase its capability to develop innovative and high value products. 1.4. Where Government intervention is appropriate, its policies should promote the development of the sector’s capability to develop innovative and high value products. Of great concern is that our sector has an emerging demographic problem with an ageing and male dominated workforce, while the number of undergraduate applications for electronics engineering, computer science, information systems and software engineering courses has declined sharply since 2002 and UK domiciled women account for a small fraction of total acceptances into computer sciences, electronics, electrical and software engineering degree courses.

2. Introduction to the UK Electronics Alliance 2.1. The UK Electronics Alliance (UKEA) was formed in response to the Electronics Innovation and Growth Team (EIGT) Report published by the DTI in 2005 to address ‘the fragmented, diverse nature of the (electronics) industry, and its difficulty representing itself to Government and vice versa, (which has) led to delays in addressing some of the key issues which impact on its performance’ 2.2. The UKEA is an alliance of the UK’s leading electronics industry trade associations with a combined membership of over 1,200 UK companies, of which over 950 are SMEs, and an overall ‘reach’ of over 13,000 UK companies, which enables two‐way communication between its members and the BERR. 2.3. The UKEA has welcomed the opportunity to participate in the Strategic Plan for Electronics, which has been produced jointly by the Electronics and IT Services Unit of the BERR and the Electronics Leadership Council. The plan has the aim of addressing a broad range of issues affecting the electronics sector in the areas of technology, regulation, supply chain, skills, image, public procurement, and

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business support. The following aims within the plan may be of particular interest to the Innovation, Universities, Science and Skills Committee: 2.3.1. To create an environment that encourages an increase in investment in research and development activity 2.3.2. To Ensure that the sector has access to the high level skills it needs to compete in global markets 2.3.3. To ensure that the UK has a regulatory environment that facilitates growth and innovation and 2.3.4. To ensure that business support provided by public authorities is seen as relevant to and accessible by all sizes of business in the UK sector so that the UK is seen as a leader in innovation and exploitation.

3. Information 3.1. While the global electronics industry continues to grow, the migration of production to low cost regions has had a profound effect on all high cost regions. Western Europe accounted for 21% of global production of electronic goods in 1995 and declined to 17% by 2005.100 3.2. The UK is the second biggest manufacturer of electronic equipment in Western Europe with a €25bn turnover in 2005, 14.3% of the total101. The electronics sector is vital to the health of the UK economy. In 2006, the whole ICT sector accounted for 6.4% (£66.4bn) of UK GDP and employed 1m staff102. 3.3. However, this should be seen in the context that the UK’s manufacturing capability has been in decline for a number of years. In contrast, the UK electronics wholesale sector has grown, indicating the strong demand for electronics equipment, for which UK manufacturing has a decreasing capacity to meet. This may be of less concern if, in the longer term, the UK’s electronics sector is to develop its capability to produce innovative and high value, and by definition low volume, products rather than compete in high volume markets already dominated by low cost geographic regions. 3.4. However, the number of UK manufacturers in the electronics sector has declined faster since 1997 (by 38%) than in all engineering sectors including mechanical, automotive, aerospace, rail and ship (by 28%),103 which suggests that the electronics sector should be of particular concern, the more so because the innovation from the electronics sector underpins not only those other engineering sectors but also other sectors vital to the UK economy such as financial services, healthcare, retail and logistics. 3.5. At the same time, the UK’s electronics manufacturing sector continues to be highly innovative. In particular, the high proportion of SMEs in the sector relative to UK manufacturing as a whole indicates the level of innovation and entrepreneurship prevalent in the sector. 91% of electronics manufacturing

100 Source: Reed Electronics Research - European Electronic Markets Forecast – Jan 2007 101 Source: Reed Electronics Research – European Electronics Manufacturing Services Industry 2006 - 2011 102 Source: UKTI ICT Marketing Strategy launch 103 Source: Findlay Publications Manufacturing Database

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companies employ less than 250 staff compared with 80% in total UK manufacturing104 while 84% of electronics manufacturing companies employ less than 200 staff compared with 68% in total UK manufacturing105. Government policies towards this sector should pay particular attention to the needs of SMEs. 3.6. The UKEA is currently undertaking a survey of SMEs’ views on the business issues affecting them and, while the survey is still in progress and the sample of responses received thus far is relatively small, it is of interest that the three dominant issues, cited by more than 60% of respondents, are high material costs, high level of legislative control relative to other countries and difficulty recruiting technical staff with appropriate skills or experience. The supply of highly skilled engineers is vital to enable the sector to increase its capability to develop innovative and high value products. The UKEA would be pleased to share the final results of the survey with the Committee if required. 3.7. Skills shortages in particular, are a major threat to the UK’s electronics sector. The number of graduates in engineering and technical subjects has declined from 20,511 (9.68% of total degrees) in 1995 to 19,765 (7.1% of total degrees) in 2006106. 3.8. Further, undergraduate applications for electronic engineering courses have declined by 38% since 2002 while applications for aerospace, chemical, civil, general and mechanical engineering courses have all increased over the same period, chemical and civil by 62% and 63% respectively. Undergraduate applications for computer science, information systems and software engineering courses have also declined over the same period, by 38%, 42% and 60% respectively.107 3.9. In 2006, UK domiciled women accounted for only 10% of all acceptances into electronics and electrical degree courses, 12% of all acceptances into computer sciences, and 9% of all acceptances into software engineering, degree courses.108 3.10. Currently, 32% of all staff employed in the IT sector are women,109 which suggests that a longer term decline in the number of women is inevitable unless remedial action is taken. 3.11. In addition, 37% of UK electronics industry staff are in the 45 to 64 age group compared to 22.3% in the UK’s total workforce while the proportions are almost reversed in the 16 to 24 and 35 to 44 age groups110 indicating a fundamental demographic problem for the sector. The overall view is that the sector is predominantly male and ageing with little prospect of this trend reversing in the short to medium term unless remedial action is taken.

4. Recommendations

104 Source: ONS UK Business – Activity, Size and Location 2006 105 Source: Findlay Publications Manufacturing Industry Database 106 Source: Higher Education Statistics Agency 107 Source: Professors and Heads of Electrical Engineering Conference, January 2008 108 Source: Professors and Heads of Electrical Engineering Conference, January 2008 109 Source: Intellect, Perceptions of Equal Pay 2007 survey 110 Source: Labour Force Survey – 2003 and 2007

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4.1. While the many initiatives that have been introduced by Government to encourage business growth and, in particular, those that are bringing benefit to the UK’s electronics sector are to be welcomed, we recommend that progress within the Business Support Simplification Programme, currently being undertaken by the BERR, be communicated widely to the business community on a regular basis. We understand that the programme is scheduled for completion by 2010 and that it will lead to a significant rationalization of the business support schemes currently available. Businesses need to be kept fully informed during this period of transformation so that they are aware of the schemes that are available at any one time and will be available in the future. 4.2. Following completion of the programme, we recommend an awareness campaign to be supported by industry and further periodic reviews, again to be supported by industry provided feedback on the take‐up and effectiveness of the revised schemes. 4.3. Recognising the wide range of public sector initiatives available in support of recruitment and training and collaboration with academia, the UKEA is currently producing a navigation tool for use by industry to aid greater take‐up of the existing schemes. Guidance from various public sector bodies is currently being sought to provide assistance in ensuring the accuracy of its content. Subject to the tool proving useful, we envisage that periodic updating will be required and the support of relevant public sector bodies in the maintenance of the tool will ensure its continued accuracy and effectiveness. 4.4. While the Innovation, Universities, Science and Skills Committee’s inquiry into engineering is to be welcomed, we trust that the Committee will take into account the recommendations already put forward in the Review of Government’s Science and Innovation Policies, ‘Race to the Top’, produced by Lord Sainsbury of Turville and published in October of last year. The following recommendations within the review may be of particular interest to the Committee: 4.4.1. ‘The Higher Education Innovation Fund (HEIF)….. should move to a fully formulaic basis and increase support for knowledge transfer between business‐facing universities and local small and medium sized enterprises (SMEs). The Research Councils (RCs) should agree and be measured against firm knowledge transfer targets, including specific targets for knowledge transfer from their own institutes, and for the funds they will be spending on collaborative R&D through the TSB. The successful Knowledge Transfer Partnerships (KTPs) ….. should be doubled in number, subject to the Business Support Simplification Programme (BSSP). To improve access for SMEs, a shorter, more flexible, mini KTP scheme should be introduced, subject to the BSSP. The Review sees considerable scope for further education (FE) colleges to help raise the innovation performance of SMEs and recommends that KTPs are further extended to FE colleges.’ 4.4.2. ‘Government should continue its drive to increase the number of young people studying triple sciences, and consider entitlement for all pupils to study the second mathematics GCSE (due to be introduced in 2010). The Review believes that there is a major need to improve the level of career advice given to young people, so that they are aware of the ….. opportunities open to those with science and technology qualifications.’

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4.4.3. ‘…..careers advice be built into the curriculum for pupils and into Continuing Professional Development (CPD) for teachers. The rationalisation of extracurricular STEM schemes is supported, with suggestions for those schemes that should be taken forward, including a national science competition. The Higher Education Funding Council England (HEFCE) “Strategic and Vulnerable Subject Advisory Group” should be turned into an “Advisory Group on Graduate Supply and Demand” which produces an annual report detailing the number of students graduating in particular subjects, how easily graduates get jobs in particular areas, and in what areas industry foresees shortages of graduates arising.’ 4.4.4. ‘Innovation should be embedded in Departmental Strategic Objectives and the Director of Innovation at DIUS should produce an annual Innovation Report on the innovation activities of the DIUS, including the TSB, other government departments and the RDAs. Chief Scientific Advisors should work more effectively with their departments and with the Treasury spending teams to agree and manage their R&D budgets, and together to identify and act on cross‐cutting areas of research.’ 4.5. Government policies towards business development in the UK should promote the development of the sector’s capability to produce innovative and high value products, particularly within the SME community, and support the sector in the development of overseas markets, and existing policies should be reviewed to ensure that they meet the needs of industry. Industry has a major role to play in providing intelligence on the effectiveness of current and future proposed policies to ensure their effectiveness. For example, the research and development tax credit scheme is particularly welcomed by this community but initial research by the UKEA, which has been communicated to the BERR and DIUS, indicates that wider promotion of the scheme, clearer guidance on the type of activity that might be eligible and how to apply for tax credit may be needed. Further development of the scheme to encourage overseas companies to conduct research and development work in the UK should also be considered. 4.6. Government and industry should work together to ensure that the provision of STEM subjects in schools is appropriate to the needs of industry and industry should be encouraged to perform a more active role in promoting electronics engineering as an attractive career prospect as part of the National Curriculum. 4.7. The provision of incentives to encourage the take‐up of and graduation in engineering and technical degrees should be considered, perhaps by the provision of student loans at advantageous rates linked to continued employment in a related engineering or technical role during the loan payback period. 4.8. The provision of financial support, especially to SMEs, for the development of existing staff through approved training schemes should be considered, perhaps through a tax credit scheme. The temporary loss of vital staff from their business roles and the cost of providing training is often considered onerous by SMEs despite the clear potential long term business benefits. If such a scheme were to be implemented, it should be subject to periodic review to ensure its continued effectiveness and corrective action taken where necessary. Industry

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can play a significant role in helping to monitor the ongoing effectiveness of such initiatives. 4.9. Although it may be difficult to make a special case for the electronics sector, while our sector appears to have a fundamental demographic problem, whose effects will become apparent within the next few years, consideration should be given to the short term provision of incentives to encourage skilled and experienced staff nearing retirement age to continue working, until the decline in engineering and technical graduates is reversed. Consideration should be given to enabling recruitment and retention of appropriately skilled and experienced individuals from other countries, again at least until the decline in engineering and technical graduates is reversed. 4.10. Government consultation with industry, such as for this inquiry, is welcome. The initiatives undertaken by the Electronics and IT Services Unit of the BERR in fostering the creation of, and coordination of the work of the Electronics Leadership Council and the UKEA to improve communication between Government and the electronics sector should be provided with additional financial support to enable further progress to be made to address the issues identified in the Strategic Plan for Electronics. Similar support should also be considered where bodies such as the Electronics Leadership Council and the UKEA are invited to perform a role in enabling communication between Government and the electronics sector in support of other initiatives.

March 2008

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Memorandum 29

Submission from Prof Steve Rothberg, Loughborough University

The supply of graduate engineers is critically important to the health and vitality of our national economy.

Executive summary This submission concentrates on issues associated with ensuring and enhancing the supply of high quality graduate engineers as a critical factor in enabling the UK to be a ‘global leader in innovation and a magnet for technology-intensive companies’. We propose roles for the government and the media in promoting the engineering profession to UK society. To enhance the status of engineering in the classroom, we urge consideration of incentives to bring experienced engineers into the teaching of maths and science. We applaud HEFCE’s decision to increase funding to high cost, vulnerable subjects and urge continuation and extension of this initiative. Finally, we consider the importance of skills training at the higher levels of MSc and PhD and outline practical proposals to increase recruitment to PhD study, in particular.

1. When announcing the creation of the STEM Advisory Forum in March 2007 the Minister for Lifelong Learning, Further and Higher Education, Bill Rammell stated, "Science, Technology, Engineering and Maths are the higher value, more difficult, strategic subjects the Government wants to see maintained and which are crucial to the country's future competitiveness”. The sentiment is perfectly aligned with the Technology Strategy Board’s declared vision “for the UK to be seen as a global leader in innovation and a magnet for technology-intensive companies, where new technology is applied rapidly and effectively to create wealth”. The Royal Academy of Engineering report ‘educating engineers for the 21st century’ casts significant doubt over our ability to deliver the TSB’s vision in the UK. Between 1994-2004, total UK university admissions rose by 40% but admissions to engineering degrees remained stubbornly static at 24,500 each year. In contrast, China and India now produce around half a million graduate engineers each year. A strong supply of graduate engineers is clearly, critically important to the health and vitality of our national economy.

2. Ensuring that supply has now been central to the mission of the Faculty of Engineering at Loughborough University (and its predecessors) for just one year short of 100 years. There are many important influences on our ability to attract outstanding young people into the profession: • Society in general must hold engineers and engineering in high regard. In this respect, the UK falls well short of our counterparts in the US and Europe. • School children must be encouraged by the profession to consider engineering as a career and there are many valuable initiatives attempting to meet this need. School teachers must understand the importance of engineering to the UK economy, the nature of the engineering profession and routes from GCSE to Chartered Engineer, and they must be convinced of the legitimacy of engineering as a career for pupils with maths and science preferences. • High quality engineering degree programmes must be properly funded to ensure students have access to the best teaching and facilities, combined with excellent

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industrial links. Recent National Student Surveys have confirmed the high levels of satisfaction enjoyed by engineering graduates at our best institutions through high levels of commitment from university staff. • Student financial support must enable study not only on 3 year bachelor programmes but also on flagship MEng (4 year) programmes as well as MSc and PhD programmes. This submission briefly addresses key elements within these four issues.

Society’s perception of engineers

3. Downing Street ePetitions recently hosted a petition asking the Prime Minister for "Professional Status For Engineers and Engineering". Over 35000 people signed, compared to an average of 200 signatures across all petitions posted.

4. The sentiment in the petition creator’s case, reproduced below, is all too familiar to engineers:

"As a recently qualified Astronautics Engineer and with 8 years experience as a Robotics Engineer I am at a point where due to the lack of respect by the Government, the media in particular the BBC, and society as a whole, I feel there is little point staying in the UK. Car mechanics, Plumbers and Electricians are now commonly referred to as Engineers and Banks now regard Engineers as non/semi skilled. With the UK falling behind most other countries in training Professional Engineers and the falling numbers of children undertaking science based subjects this can only result in a reduction in the UK's competitiveness. I believe for the long turn prosperity of the UK and to attract students back to science subjects the Government must act decisively and introduce laws to protect Engineers such that only "Chartered Engineers" IChemE, IMechE, RAeS etc, can use the title Engineer. This will give Engineers the same professional status in our society as doctors, lawyers similar to Europe."

5. The government response cited investment in STEMNET, close working with DCSF and encouraging 2007 UCAS figures – all welcome developments – but also concluded there is ‘more to be done’. The lack of equivalence with doctors, lawyers and other professionals perceived by UK society is overwhelming. What ‘more’ can be done? If we are serious about tackling this problem, is protection for the title “Engineer” really impractical? Can the media, led by the BBC, be encouraged to drop their ‘that’s all a bit too complicated for me’ mentality and identify senior figures from industry and academia who can talk technically and with authority on key technical issues of the day such as in the debate over renewable energy and nuclear power? Radio 4, for example, routinely presents intellectual debate on matters of an economic, political, literary or philosophical nature but technical debate at the same intellectual level is much thinner on the ground. When it does appear, it is typically cast in a novelty light or, alternatively, likely to have been inspired by some form of disaster rather than the incredible achievements that truly characterise the world of engineering.

School teachers’ perceptions of engineers 6. The simple fact is that maths and science teaching in our schools and colleges is failing to propel high quality students into engineering. This is hardly a surprise; the demands on teachers are substantial enough without requiring them also to be expert careers advisors. Nonetheless, our challenge is to encourage the highest

203 quality students onto the highest quality engineering degree programmes, incorporating the Widening Participation agenda, if we are to deliver the TSB vision for the UK

7. High quality science teaching is one essential ingredient but, as highlighted in recent media reports, there is a critical shortage of suitably qualified teachers. In 1983, 1 in 3 science teachers was a physics graduate. By 2006, the figure was 1 in 8 and 26% of 11-16 state schools in England did not have a single physics specialist on their staff. Commenting on the report, "Physics in schools and universities" published by the Centre for Education and Employment Research at the University of Buckingham (August 2006), Lord Rees, President of the Royal Society said, "It is crucial that we get more specialist physics teachers into our classrooms if we are to inspire more young people to study physics at A-level and beyond”. Physics A-level is equally important in inspiring students to pursue careers in engineering and, until the shortage of applicants with A-level Physics became intolerable, was a prerequisite for admission to a high quality engineering degree.

8. To their credit, Government and organisations such as the Institute of Physics have acted and recent data has suggested a stabilisation in the number of Physics A- level candidates although, despite welcome initiatives such as the Golden Hello, 2007 data suggests the number of applicants to start postgraduate teacher training in Physics is still falling dramatically (30%).

9. This debate should not be limited to physics graduates and physics teaching. We must pursue schemes to draw outstanding maths, physical science and engineering graduates into the teaching of maths, physics, chemistry and related subjects at GCSE and A-level and for the proposed Diplomas. Excellent, existing schemes must continue and new schemes must be added. We should target high quality engineering graduates for careers as maths and science teachers.

10. School science is often and regrettably described as ‘boring’ but the great irony of this situation is that graduate engineers are shown in surveys to be the most satisfied of all professional people. Much effort has been made to excite schoolchildren to consider engineering careers but the incredible sense of achievement that practising engineers enjoy is difficult to convey in a classroom where the teacher has no personal experience of the complex world of engineering. We must provide fast- track training opportunities for experienced engineers to retrain as teachers and then acknowledge the value of their experience in salary levels in order to bring relevance and excitement to the teaching of maths and physical science for our young people.

Funding for engineering degree programmes 11. Engineering will have to undergo a step change in the next few years as we face up to the challenges of climate change, ever increasing energy demand, poverty alleviation, lifeline support systems, waste as a resource and the many other challenges to make UK society resilient to inevitable changes. UK engineers will make an impact on these future global challenges not only by working in the UK but also by their work overseas.

12. The future challenges facing engineers, the increasing rate of technology advances and the changing skills base of those entering degree programmes have increased the pressure to change the content of and delivery methods used in

204 engineering degree programmes. The Higher Education Academy Engineering Subject Centre (www.engsc.ac.uk) is charged with disseminating the numerous examples of effective practice developed in recent years including use of e-learning, project and problem based learning, work based learning and skills development. At Loughborough, we have particular strengths in links with industry that contribute to student learning and to turning students into the graduates that industry needs. We are the largest provider of sandwich courses (year-long placements in industry) in the UK, have significant input from practitioners into the teaching of design and a number of programmes directly sponsored by industry. Loughborough has also invested in the development of learning resources over a ten year period through its Engineering Education Centre which is now a Centre for Excellence in Learning and Teaching (www.engCETL.ac.uk).

13. The additional resources needed to facilitate the development and maintenance of strong industry links, the development of e-learning resources and the increased contact time needed to deliver the student-centred learning embodied in project / problem based curriculum models increase the cost of educating engineers. Engineering has traditionally been funded at higher band levels to reflect the cost of a laboratory based subject but recent research conducted by the Engineering Professors Council (EPC) and the Engineering Technology Board (ETB) indicates that current funding levels are too low and this inhibits curriculum developments designed to make our graduates fit for purpose in the 21st century.

14. The Royal Academy of Engineering’s report ‘Educating Engineers for the 21st Century’ agreed and identified, among its findings, the need for innovative curriculum development to improve student engagement and attract more entrants and the need for closer industry involvement including increased use of industry placements. Few would disagree with the sense in these recommendations, nor the suggestion that these innovations require funding. The Royal Academy also concluded that the HEFCE Fee Band weighting factor for engineering degree programmes should increase from the present 1.7 to 2.5. Current recruitment challenges in engineering have encouraged HE engineers to embrace the Widening Participation agenda but, again, there are funding implications that cannot be dodged of educating such diverse student cohorts. HEFCE should continue its additional funding for high cost, vulnerable subjects and extend the initiative across the whole of engineering and the physical sciences.

Higher skills training fit for a global leader in innovation 15. The Roberts’ Review, ‘SET for Success’, stemmed from the government’s concern that “the supply of high quality scientists and engineers should not constrain the UK’s future research and development (R&D) and innovation performance”. As the notion settles that our economy will be driven by High Added Value manufacturing and services, this supply becomes even more important to meet the TSB vision. A comprehensive skills training strategy must include MSc and PhD level study, including student finance.

16. Currently, there is huge difficulty in recruiting high quality first degree graduates into MSc and PhD programmes. Student debt after completion of a first degree is a major factor here. At MSc level, student finance is virtually non-existent and numbers of UK students are plummeting. Bodies such as TSB and EPSRC have carefully articulated their strategies including statements of priority technical themes. Study on MSc programmes aligned with these themes should be incentivised in the way that teacher training is currently incentivised in shortage areas.

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17. At PhD level, the situation is quite different and funded studentships are available through the EPSRC but supply exceeds demand significantly. The Roberts’ Review resulted in a significant and very necessary increase in PhD stipends. It is an unavoidable and somewhat regrettable fact that the increase has not been enough. PhD programmes compete with industry to recruit the very best of our first degree and Masters graduates. The student stipend is currently £12.9k pa, tax free. A graduate starting on a salary of around £18k would take home a similar sum of money but the average starting salary for an engineer with a Loughborough degree in 2006 was around £23k. With salary enhancement in the range 5-10% per annum for an outstanding graduate, the differential between the financial rewards along the two routes is still too great. Fewer studentships and higher stipends should be considered. Tax incentives to encourage companies to top-up stipends would serve the dual purpose of encouraging recruitment while promoting industrial relevance.

18. The recruitment process for PhD programmes also merits consideration. Advertising is currently the responsibility of every individual University resulting in a fragmented effort. For teacher training, responsibility for recruitment is shared between national government and the individual HE institutions. This is also an appropriate model for PhD study and the Research Councils could take the national role in promoting PhD study as a legitimate career step with direct benefit to the UK economy.

Concluding comments 19. We have prepared this submission during National Science and Engineering Week. Like many others, Loughborough has delivered a full programme of events for schoolchildren and our local community. This is just one of many such activities we engage in each year, clearly demonstrating our University’s ongoing commitment to the challenge of promoting science and engineering. As academic engineers we seek to play a full role in achieving the TSB vision through both our teaching and our research efforts. There can be no doubt that we recognise our responsibilities in addressing the challenges set out in this submission and we simply urge the Committee to ensure that the outcomes of the enquiry will assist us measurably in these endeavours.

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Memorandum 30 Submission from Women's Engineering Society

1.Overview 1.1. This response relates to the terms of reference numbers 1, 3 and 5. • The role of engineering and engineers in UK society • The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile). • The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering.

1.2 The Women's Engineering Society (WES) was formed in 1919 to support women who felt a sense of isolation. Today it is the most significant network of women engineers that works for the benefit of all women in engineering and technology in the UK while also seeking to increase the status of engineering as a profession that improves the quality of life. Our vision is of a world: "where engineers and engineering enhance the lives of future generations through a diverse, innovative and creative workforce". 1.3. The society has worked tirelessly through many and varied avenues to influence other agencies and to support and inform women in engineering and those who are considering it as career or are actively studying at all levels, interacting with all levels from apprentice to Chief Executive Officer and vice Chancellor. WES works closely with other agencies working to support and attract women to engineering e.g. UK Resource Centre for Women in SET (UKRC) and Campaign for Women in Science and Engineering (WISE) in the UK and women's engineering groups outside the UK. However, the mainstream UK engineering communities still fail to concern themselves with the 'leaky pipeline' and the under-representation of women entering the sector. It is essential that the knowledge and understanding of these issues are properly embedded in any future strategy.

1.4 Our recommendations are:

1) Government requires all engineering stakeholders to ensure that necessary steps are in place in their organisations to support and enable women to enter, stay and progress within engineering. 2) Stakeholder groups in engineering need to recognise the value of the contribution of WES and its sister organisations. Stakeholders need to recognise and embed the good practice that has been developed and work alongside WES and its partners. 3) Government requires engineering educators to work together at all levels to promote engineering as a high status and inspiring career for girls. Working in partnership with teachers, careers professionals and employers to ensure culture change that addresses the barriers to girls is embedded. 4) Government needs to ensure the engineering sector in the UK addresses the long hour and family unfriendly work cultures that contributes to the 'leaky

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pipeline' for women engineers, particularly those with children and caring responsibilities.

2. The Role of Engineering and Engineers in Society 2.1. Sainsbury (2007) and Leitch (2006) are championing the call for a UK workforce that leads the world in its skills and innovation. Engineering has a significant role in all of the major challenges such as climate change and security that the UK and indeed the world need to tackle. Employers want the best talent, and want diverse teams to produce the best products for diverse markets. If the UK workforce, by 2010, is only a third white and male (EOC, 2006) then the talent to ensure the UK is a knowledge incubator and a major economic player will need to come from another direction. 2.2. The concerns about the supply of students into the sector has grown to become a now significant part of the government education agenda (DfES and DTI, 2006; DCSF, 2008) and initiatives such as the new 14-19 Diplomas should also serve to improve the supply chain and yet the recent review undertaken by the Engineering Technology Board (2007) points out the low proportion of female participation at all levels. ¾ The proportion of female engineering apprentices in learning is as low as 3% (p6) ¾ In recent years the proportion of female students reading engineering and technology subjects has remained stable at about one-in-six, with no improvement in the gender balance. (p7) ¾ The proportion of female registered engineers is growing, but very slowly, so that they account for just over 3% of the total only. (p8) 2.3. Because there are so few women in engineering education, women students are very conscious that they have chosen a career counter to the norm. Faulkner (2006, p4) recommends that “Engineering faculty need to be enlisted in efforts to normalise the woman engineer amongst staff and students. They also need to be sensitised to the confidence loss some women engineering students feel on entering engineering education.” 2.4. Greed (2000) described the construction industry as a planet with satellites of equality orbiting without having a lasting impact. The engineering industry has a similar profile and while WES and other equality and diversity focused organisations are now making inroads, there is still much to be achieved in mainstream organisations. 2.5. The Government can improve the impetus of change by encouraging institutions, major employers and education to show evidence that they are tackling the issue of under-representation in a meaningful way.

3. Drawing on Existing Knowledge and Practice 3.1. There are a number of both established and new initiatives that encourage and support women in engineering and it is essential that the knowledge developed is more broadly embedded across mainstream engineering. Evaluation and measurement of impact is not always straightforward when there are complex issues preventing easy success, but a number of sophisticated tools and interventions now exist to support change and they need to be supported and / or expanded with support from stakeholders.

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¾ MentorSET is a highly successful national mentoring scheme which aims to increase the number of women who can maintain their SET careers, and realise their full potential. MentorSET provides independent mentors who understand the challenges faced and who can provide support and advice. Since it started in 2002 it has created approximately 300 mentoring pairs spread across the UK. The scheme is now sponsored by UKRC. ¾ The Culture Analysis Tool (CAT) developed by UKRC to support employers to identify and understand issues in the workplace has been taken up by a number of significant engineering organisations and employers e.g. Transport for London, Halcrow. ¾ Award schemes for women in engineering serve to highlight role models as well as the employers they work for. The Karen Burt Award commemorates the life of Dr Karen Burt who encouraged women to take up chartered status and to promote the engineering profession. Each participating accrediting engineering institution nominates only one candidate and so the nomination itself is recognition of achievement and career excellence. The award not only recognises the candidate’s excellence and potential in the practice of engineering, but also gives recognition to contributions made by the candidate to the promotion of the engineering profession. The chosen candidate will have been awarded Chartered Engineer status within the previous year.

4. Engineering Education

4.1. There has been considerable investment of funds to support STEM at school level with the STEM programme led by DCSF. These interventions will be designed to include the under representation of girls and other groups as an objective. The Girls in Physics Project (Murphy et al, 2007) sponsored by Institute of Physics and Science Learning Centres could serve as a model for the Engineering community. The London Engineering Project (LEP) run by the Royal Academy of Engineering (RAEng) has served as a significant influencer of thinking and practice within RAEng. By working with a diverse group of partners, and embedding gender awareness with support from UKRC, the RAEng are making significant inroads into embedding the good education practice within the institution. 4.2. Yet there is a significant contribution still to be made all the way along the supply chain. Further and Higher Education institutions are still unwelcoming to girls and women (Faulkner, 2006; Bagilhole et al, 2007) and research findings need to be understood and acted upon across the UK. Engineering higher education acts as gatekeeper to the industry and while there have been a range of individual interventions to try and improve the participation of women there has been an absence of engagement from some of the key higher education influencers. The Gender Equality Duty should be a positive influence in this area if compliance is measured. 4.3. Government should endorse positive interventions that are achieving change. 4.4. The engineering stakeholders should take action across engineering education at all levels to tackle the under-representation of girls and women. 4.5. Government should demand evidence of action by education institutions to tackle the under representation of girls.

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5. The Long Hours Culture and Women Returners

5.1. The Women and Work Commission Report (2006) has focused attention on concerns about the disadvantages still faced by women in the workplace that, if tackled could contribute around 2% to GDP. However the report found that women who were out of the labour market rarely had access to information about education and training opportunities, and women with caring responsibilities found it very difficult to participate in education and training (p54). Women often end up in occupations working below their potential (Olsen et al, 2005) with returners under utilizing their past training. 5.2. After taking an extended period out of work women face many barriers to returning, often compounded with lack of confidence in their own ability (Women in Work Commission, 2006). Maximising Returns (2002) explored ways in which the UK could make the most of the investment in SET graduates and address skill shortages. The research found that women with SET degrees are less economically active than SET men or non SET women. 5.3. The UKRC working with its partners like WES has developed a Return Strategy that includes career development courses, networks of support and placements and focused careers advice for women returners, but there is much still to do to tackle the barriers. 5.4. The 700 or so WES members are spread across a very wide age range. Whilst about 8% are student members, most members are in mid-career positions with about 40% are between 30 and 50 (only 4% are over 65). Women at mid career are the ones that see the greatest need for organisations like WES. When women are disadvantaged in their chosen career just for having children it is clearly time for change. 5.5. The Engineering Sector needs to explore ways that it can adapt from its traditional macho culture and draw on the experience of other sectors and other countries where change has been successful and where women are able to play a full part.

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Memorandum 31

Submission from VP Engineering, Messier-Dowty Limited

Messier-Dowty is an engineering company that is the world’s leading supplier of aircraft landing gear. We supply engineering products and services to over 19,000 aircraft operated by more than 750 operators. Our products perform over 30,000 landings per day; equivalent to one landing every 3 seconds and we employ over 4,000 staff worldwide, approximately one quarter of those being in the UK in Gloucester.

To Messier-Dowty, the term “engineering” represents the profession of applying scientific principles to the design, construction and maintenance of products by qualified practitioners. As professional engineering activity is core to our business, the state of engineering in the UK is fundamental to our Company and to its future success. We provide the following comments to your inquiry based on our experiences and perspective from within the aerospace industry.

The role of engineering and engineers in UK society Engineering provides solutions to the product or service requirements of all aspects of UK society from individual consumers, to companies, industries, charities, government bodies etc. However, the significance of the role of engineering in society is often taken for granted. The enormity of the contribution that engineering provides makes the appreciation of individual or specific details often difficult to identify. Almost everything we use, consume or produce employs tools or materials whose production was enabled in some way by engineering; from the basic necessities of life such as food, water and shelter through to the practice or appreciation of art, music and science.

In this way, engineering is a cornerstone of the wealth and security of the UK. The use, sale or trading of the products and services developed with contribution from engineers underpins the value additions made by companies and individuals to the UK economy. Messier-Dowty itself has an annual turnover in the UK of over 200 million pounds and provides additional benefit to UK society via direct flow-down of orders to our national supply chain and indirect support to the local economy through the patronage of salaried employees within Messier-Dowty and our supply chain. Engineering also enhances the economic security of the nation by providing the ability to exploit new advances in science without having to purchase this capability from the UK.

The development of the engineers needed to practice the profession improves the national educational standards and competencies. Aerospace design and manufacturing, for instance, provides high value and highly skilled jobs both within the professional

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engineering and workshop environments. Recent data shows that 34 per cent of all employees in the sector hold a university degree or equivalent, forecast to rise to 40 per cent by 2010. The industry also has a growing demand for technicians with NVQ level 3 and 4, equivalent to two or more A levels.

The role of engineering and engineers in UK's innovation drive To encourage innovation there needs to be an opportunity to implement and exploit new ideas. This requires the presence of the skills necessary to transform an idea into practical application. In terms of products and services this generally involves the practice of engineering through some form of design, production or maintenance activity. In the absence of these skills or the financial support necessary to mature ideas into a commodity, innovation is either be stifled or moved to where such support can be found. The need for appropriate engineering skills and financial support in order to enhance innovation applies to both companies and countries alike.

In addition to providing core skills to support the UK’s innovation drive, a strong UK engineering competency also has a key role in generating the necessary product development funding. Once transformed from an idea to a marketable commodity, the bulk of the profits go to the producer – again an engineering activity. Such organisations are then able to reinvest profits into new innovations to enhance product ranges. Similarly, the nation in which this activity takes place benefits directly through taxation and indirectly through employment, employee up-skilling etc.

Messier-Dowty has seen the benefit of engineering supported innovation first hand through the recent award to us of the Boeing 787 Dreamliner landing gear contract. This was achieved largely through the company’s preparedness to provide the necessary engineering support to develop new ideas for the use of emerging composite and titanium materials technologies to enable us to offer a product with clear competitive edge over our competitors.

The state of the engineering skills-base in the UK The aerospace industry is currently suffering from an insufficient supply of competent engineers both in terms of numbers and skills. Should the industry continue to grow as predicted, this lack of a suitable skills-base will have a negative impact on our company through absence of competencies and/or capacity to take on or deliver new work.

This shortage of supply is of key concern to our Gloucester site. Our core competence is professional engineering, and the lack of suitably competent engineers increases the risk of high-level skill activities being performed elsewhere in our international group e.g. in France where investment in French Engineering schools is

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producing increasing numbers of highly skilled professional engineers.

This shortage of supply also has the potential to result in increased off- loading of lower skill-level activities to companies in other nations. Whilst meeting short-term industrial necessity, off-loading of engineering activities has a number of potential long-term implications to the UK engineering industry including the loss of opportunities for “on-the-job” development and training of junior engineers, reduction of economic security through reliance on foreign skills supply and the potential to develop such suppliers into competitors.

A consequential effect of off-loading is to change the role of a UK engineer from practitioner to supervisor/reviewer of the engineering services provided by suppliers. This change in competency, if driven by increased scope of product supply or responsibility for our UK Company, is justifiable and sustainable. However, should the offloading be due to absence of an appropriate skills base it has the potential to accelerate the loss of UK engineering competencies. It is more difficult to regenerate a competency/skill base than to maintain it.

The number of suitably competent engineers entering the profession in the UK is also believed to be inadequate to support our projected business needs. Many factors are thought to be contributing to this including the perception by potential UK participants of a declining industrial demand, and financial reward and societal respect for the engineering profession being lower than for other similarly high- skilled occupations. In many countries with a stronger engineering skills-base these indicators appear to be the reverse of the UK, with engineering/manufacturing perceived to be a valued and growing sector, with good financial reward opportunities and high public regard for the profession.

The importance of engineering to R&D and the contribution of R&D to engineering As described above with regard to innovation, engineering is a fundamental enabler of the ideas and concepts emerging from the R&D activities of a product development company – even if that company does not see itself as an engineering organisation.

Engineering plays a critical part in identifying the boundaries in application of existing technologies and thus helps to define future direction of R&D directly aligned with future competitive advantage.

In brief, R&D is integral to the long-term strategy of all engineering organisations and vice-versa, making both areas interdependent.

R&D has a wider contribution to engineering than simply the generation of new product ranges or opportunities to exploit. R&D develops

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new skills, techniques or competencies within the engineering workforce associated with the activity which often is subsequently applied in many more applications than those first considered – it stretches the academic CV of the engineering profession and consequently the nation. R&D provides technical challenges to engineers and acts as a catalyst for further innovations, potentially giving a company an unexpected or new product competitive advantage and giving increased stability to engineering companies.

Research is an important driver of innovation. Aerospace and defence companies in the UK currently invest £2.5 billion per annum in R&D – this activity:

• Underpins the nation’s aerospace and defence capability and provides a route to the development of novel technological solutions, • Underpins operational, procurement and capability analysis of the industry leading to enhanced performance, new capabilities, cost and risk reductions and increased profitability, • Identifies emerging threats and risks and potential solutions to them, • Allows UK companies to remain internationally competitive and increases their innovativeness.

• Providing employment opportunities, • Defining the needs of the engineering profession and interfacing with training or regulatory bodies to ensure that graduates/trainees achieve appropriate competencies, • Promoting engineering as a worthwhile career through school involvement, professional development schemes, work experience etc., • Providing a direct link between fundamental research and practical applications, • Maintaining a capability and willingness to exploitation innovations.

The role of professional bodies in developing engineering in the UK includes:

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• Improving the control, quality and stature of engineering professionals in the UK,

• Raising the profile of engineering in the female population to support the increase of engineering capacity within the UK.

Government’s role in developing engineering in the UK includes:

• Doing no less than any other country to support and promote engineering and companies which are dependant on engineering capabilities, • Expanding the scope of Government funding and assistance to support engineering and manufacturing companies to a level comparable with other nations – i.e. give UK engineering companies the same opportunities as available to similar companies in other nations, • Addressing the gap between opportunities and/or initiatives available to small companies and very large organisations, but not to companies who fall between these two camps as is typical for many engineering companies including Messier- Dowty Limited; e.g. the recent extension of the availability of funding under “Train-to-Gain” is not available to companies of the size of Messier-Dowty, being too large to qualify as a SME but too small to have the advantages or leverage of a much larger company, • Rewarding engineering companies for contributing to the UK economy or society; e.g. through reduction in corporation tax for setting up training programs, up-skilling of workforce, creating jobs etc., • Introducing initiatives to increase uptake and interest in Engineering education, • Recognising professional engineers; i.e. through professional and/or skills recognition within the public sector.

Unions’ role in developing engineering in the UK includes:

• Developing a true partnership with employers and government to secure/safeguard long term employment and economic prosperity in the UK engineering sector, • Encouraging flexibility in workforce to help facilitate rapid change, • Recognising pressures and competition that UK industry face.

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Memorandum 32

Submission from Michael Dickson CBE

This is an interesting nut to crack because everyone agrees that engineering is a core wealth creator for societies but the Government, even post Lord Sainsbury, is still reluctant to invest sufficient resources (persons, facilities and finances) to train and create the next generation of engineers. So the Parliamentary Inquiry is not before time, in fact well overdue.

I have checked back through some of my notes taken during attending The Institution of Structural Engineers Task Group on Education and the following points spring to mind as a result:

1 All actions to promote engineering need to be coordinated through the RAE (with STEM) so that the ETB is energised to promote the value of engineering and the use of professional knowledge to create wealth and solve society’s challenges. 2 One of the problems is that engineering is perceived to be a poorly paid profession (although probably not true in reality) so that the CBI needs to undertake on behalf of Government a survey and publish the salary scales of professional engineers (both those still in professional engineering and those who, through their engineering training, lead industrial, academic, research or government organisations). This study needs a comparative approach to other walks of life (teachers, doctors, SME business persons). 3 There is little hope of engineering flourishing in the UK without good (well paid) inspirational teaching of design, maths and sciences at secondary school. So Government Policies etc need to:

(1) Support Engineering Institutions in providing resources for Teachers so as they can better understand the challenges of engineering and the career opportunities that would be given to pupils in their care (2) Support Institutions by insisting that young engineers in training for Chartership, Incorporated status or Technician grade should relate to their local schools as part of their CPD needs (3) Recognise that engineering is part of the creative industries so that DEFS should promote policies more closely linked to Engineering Challenge through encouraging A level students to undertake CDT courses at secondary schools (Arkwright and Smallpeice initiatives).

4 The ETB under guidance from the RAE/G15 to provide resource to underpin positive illustrated articles for the national and local press on engineering successes (How did they do that?) and to cover awards for Engineers (particularly young individuals) and Engineering Projects which are photogenic, innovative and creative. 5 Government fiscal policies need to be organised so as to encourage industry to provide more bursaries to attend (hard) engineering courses at universities, further educational colleges and technical colleges. Engineering courses are not cheap so that with the advent of tuition fees this is necessary to counter the disincentive to students of incurring large educational loans at the start of their careers. 6 Government to organise better links through the Foreign & Commonwealth Office and with BERR to Accredited Colleges of Engineering in other English speaking parts of the world (India, Sri Lanka, Singapore, Hong Kong etc) and to fund bursaries for post graduate studies in the UK with the opportunity of encouraging immigration of suitably qualified engineers into the UK. 7 Above all our younger members tell us that high on their priorities is the need for representation of Engineering needs in Local Government, Parliament and the Second Chamber through increased number of appointments of

216 politically skilled but knowledgeable professional engineers. After all, biology, chemistry and engineering underpin the performance of all parts of the natural built and industrial environment which creates our wealth and quality of life.

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Memorandum 33

Submission from INucE and BNES (Institution of Nuclear Engineers and the British Nuclear Energy Society)

1. Executive Summary

(1) This response is issued by British Nuclear Energy Society (BNES) and the Institution of Nuclear Engineers (INucE) in response to The Innovation, Universities and Skills Committee major inquiry into engineering announced on 29 January 2008. The two societies have also responded separately to Engineering Case Study: NUCLEAR ENGINEERING. Some general comments on nuclear will be found in this ENGINEERING response as that is the sector in which our members mostly work.

(2) The response addresses the five areas identified by the select committee from the perspective of our learned nuclear societies. The provision of adequately qualified and numerous professional engineers is independent of the nuclear industry covering all sectors and our general concerns are expressed here. More detailed nuclear issues are included in the associated Case Study on Nuclear Engineering. Linkage between, for example, school, university, industry, qualification, innovation, science and engineering, socio-political, energy and environment and in our case between the nuclear and other industries are factors that need to be addressed if the UK is be a success in a global market place.

(3) As BNES and INucE progress to form a Nuclear Institute, we will continue to work to the benefit of the UK by encouraging better understanding of nuclear energy issues and the assuring the qualification of nuclear engineers in particular.

2. About BNES & INucE

(1) The British Nuclear Energy Society (BNES) is the leading ‘Learned Society’ for Nuclear Energy. The Society functions almost completely by the contributions of volunteers who make available their experience and dedication to provide information to members UK, worldwide on Nuclear Energy issues, to afford opportunities for members to publish and present papers, meet and debate issues locally, nationally and internationally, to promote nuclear energy specific training in the UK and to further increased public understanding of the issues surrounding the use of nuclear energy.

(2) The Institution of Nuclear Engineers (INucE) is a professional body representing a broad cross-section of nuclear engineers engaged in various aspects of nuclear technology, predominantly in the UK, but also in the USA, South Africa and Asia. Members are involved in many aspects of the fuel cycle from fabrication, through operation of nuclear power plants, to decommissioning and waste management, as well as regulation. Their mission is to promote the highest professional and safety standards for the nuclear industry

(3) The two societies have announced their intention to merge and are currently pursuing the necessary charitable processes. This structure will continue our joint continuing encouragement of E&T initiatives to promote and interest specifically in the nuclear energy field but recognising that this field itself is dependent on a base of good science and engineering in general.

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3. Response: ENGINEERING

Preamble

(1) The role of engineering in general as opposed to nuclear specifically is very important to BNES and INucE because the activities of our members require interaction with virtually all engineering disciplines. Not only engineering but also science and, for example BNES’ Advisory Council comprises 11 professional engineering and scientific institutions.

(2) The discipline of engineering is founded on good science and mathematics in schools and so the Societies consider that in ensuring that engineers of right inspiration and skill starts with the scientific education of school children, continues with excellence in teaching at further institutions and is supported by a good appreciation of the public in general as to the important role of both engineering and science. That is why BNES’ Young Generation Network comprising one third of our membership and our Education and Training activities focus on school children and recognise the importance of Government initiatives such as Energy Foresight. We believe it is very important to encourage young people in engineering of both genders.

(3) Continuing from its important role in ancient civilisations, today engineering is about the economic application of science to meet every day social needs. How many excellent ideas and inventions from past centuries have not been realisable until engineers have come up with the energy process and materials to enable delivery? If engineers have contributed to our global warming concerns and scientists are investigating the impact; it will fall again to engineers to realise the necessary solutions and ensure that these solutions are not themselves environmentally damaging.

3.1 The role of engineering and engineers in UK society

(1) In focusing on engineers in UK society it is essential to look at this in global context. Engineers work for global companies, transfer readily around the European Community and beyond in to other regions. This is a fact of life, is driven by personal ambition, projects of global significance and has created a market for engineers in which the UK must take part in the competition for what in some cases is becoming a diminishing resource.

(2) The commentary below is largely aimed at “professional engineers”, i.e. those who have or could reasonably be expected to take a qualification with the Professional Institutions of which INucE is one. Unfortunately, in the UK, the term “Engineer” is used for a wide range of disciplines including those that are not of a “Professional” nature and the public are not able to appreciate the point that Professional Institutions award the status of Chartered Engineer to those who they believe can take responsibility for the performance of the solutions they develop. There is a staged process to achieve this level of responsibility and other grades of engineer such as associate, technician, scientist may be found in various institutions.

(3) The UK role of engineers mirrors the role in societies across the world and includes activities such as:

1. problem solving, development of ideas, links to science and technology research, the design process, the safety assessment process, construction , commissioning, operation, decommissioning and waste management, best practicable environmental options, best practicable means, economics, social and ethical responsibility. 2. Engineers must have good grounding and understanding of the laws of science and therefore have multidisciplinary grounding in a wide range of subjects, especially mathematics and modelling processes and must be able to work with a wide range of standards, codes of practice and with environmental, health and safety quality systems.

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(4) The need to ensure an adequate supply of engineers has been understood for a number of years now and this is not a problem limited to the nuclear industry. Surveys have been undertaken on the roles and needs for engineers by Regional Development Agencies for example and the concerns of an ageing engineering workforce often raised. More recently the sector skills councils such as Cogent have quantified the challenge and, this has led to the development of skills academies of which the National Skills Academy, Nuclear has been the first off the stocks.

3.2 The role of engineering and engineers in UK's innovation drive

(1) Engineering plays an important role in turning our science into practical solutions in the key UK requirements such as energy, infrastructure, health, transport, raw materials and education. Our concerns in BNES and INucE fall largely in the sector of energy, which is where most of our members work. Adequate energy supplies and proper use of it represents the foundation of society as we know it. So we believe that engineers play an essential role in providing all necessary energy sources, distribution systems and efficient plant and processes to use it.

(2) More generally, innovation in the current, global, commercial climate can be very challenging indeed. The electronics/communications revolution of the 1990’s has resulted in a state whereby technological ‘pull’, as a result of commercial need, can now realistically influence what is possible – many technical showstoppers have essentially been removed. Furthermore, the enormous commercial opportunities for high-tech consumer products can now yield the much-needed financial support, either via venture capital or revenues, necessary to realise the technological leaps on which these products rely. In the next few years and decades, it is essential that such innovation cascades down to address global challenges such as sustainable living, energy supply and climate change where the commercial support may be driven differently.

(3) A common denominator across almost all innovation is the ability of an individual, team, company or organisation to implement engineered solutions. This is readily demonstrated across all sectors, such as the built environment, transport infrastructure, energy, electronics and software development. Many of these sectors now exploit significantly advanced methods that draw on many years’ technical training and experience that are only found in mid-career, time-served engineers. Such people are currently in short supply on a global scale, with sectors such as the nuclear sector merely demonstrating the acute extent of the problem. The advanced methods described above are not confined, for example, to electronic system design or the use of advanced materials in construction – they extend to the crucial areas of engineering project management, manufacturing across continents, safety / regulation and the training / education of aspiring engineers by experienced engineers in the international community. The role of Engineering is therefore crucial in the UK drive for innovation as, otherwise, we can not:

• realise what is not currently possible but necessary to improve our standard of living and the economic base, • grasp, manage and implement new technology and scientific capabilities, • compete internationally on commercial and technological levels.

3.3 The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity.

(1) The number of applications to study Engineering at Universities in the UK has been declining now for several years, with a few isolated exceptions. This is due, without doubt, to a complex combination of issues but, primarily, because of:

• the greater diversity in course provision now on offer at tertiary level in related subjects, and

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• due to the significant requirement incumbent on accredited courses to recruit undergraduates with numerate ability (Maths A level) compared to those schemes that do not.

(2) It is essential that Engineers with advanced numerate ability are brought on, but there are many courses and opportunities that do not require this qualification offering similarly rewarding career paths. The university sector has been driven towards a greater diversity of course provision to stimulate greater numbers of applications from prospective students. However, employers in the engineering sector now readily feel the effect of the greater diversity in employment opportunities, with significant competition from the finance industry, for example, for the very best engineering graduates.

(3) A graduate-level Engineering education remains a valuable qualification in terms of the diversity of opportunity that it affords, but the prospect of its study on leaving school or college seems unable to match this demand at present. An A-level qualification in Engineering could be one mechanism to redress this state of affairs but it must not devalue the basic science qualifications. As a minimum, children should be able to differentiate between science and engineering and understand the exciting and socially important career opportunities available.

(4) To increase the supply of engineering manpower, not just at graduate level, better and more rigorous teaching of physics and maths in schools is essential. It may be necessary to give these two, and other academically rigorous subjects, some form of weighting in school league tables. At the moment schools are judged almost entirely on such tables and it is well known that it is much easier to get an ‘A’ grade in softer subjects such as Media Studies or Textiles then it is for maths or physics. The temptation for schools to encourage soft subjects is very hard to resist but a way round this must be found if we are to survive as a nation in an increasing high tech world.

(5) For the case of overseas students at both undergraduate and postgraduate level, the situation is slightly better. Significant numbers of high-quality, overseas students study across the UK for a wide variety of engineering qualifications. Many of these pursue rewarding careers in engineering but there are restrictions on the employment potential of foreign nationals in defence and security, for example. Furthermore, the supply chain is often conservative about their appointment for similar reasons. Hence, the potential benefit of overseas resource offsetting the need for good engineers is limited and this is likely to continue to be the case.

(6) Some are also starting to raise the ethical concern of taking key skilled persons from countries with under-developed economies, because it will be engineers who are also necessary to help in the development of these economies; so in the UK context there may be a case for considering our role in international aid and development.

(7) Some specific engineering sectors, such as consultancy, telecoms and computer systems have a very young age profile, with some engineering consultancies having average ages of their workforces in the 28-30 years region. This is in stark contrast with larger engineering companies, utilities and government departments where the age profile can be heavily skewed towards retirement age. This is especially the case for the larger companies in the nuclear sector, and redressing this imbalance is an ongoing challenge. A polarised workplace of this type in terms of outlook and ambition is very unusual and not always consistent with parallel graduate employment experiences.

(8) There is a further need to ensure the effective transfer of expertise from the senior engineers who are about to consider retirement. This has started to happen in many universities, where semi-retired experts from industry are found complimenting lecture series but it is ad-hoc. There has never been a more exciting time to be an engineer, with competitive salaries, international opportunities and career mobility but the sector perhaps would benefit from greater confidence in the availability of engineering skills long into the future, in particular to benefit resource planning.

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3.4 The importance of engineering to R&D and the contribution of R&D to engineering;

(1) Very little cutting-edge R&D can be accomplished without significant engineering input and talent. Many of the high-profile scientific achievements of the past few decades, such as DNA profiling, the Internet and the mobile communications revolution have relied implicitly ‘post-concept’ on engineering excellence, particularly in process design and manufacture. Without engineering input at proposal stage and sustained through to project delivery, R&D success can be compromised and poorly specified. Over the last two decades several of the large commercial R&D centres have closed, undermining this once valuable source of exceptional knowledge and experience. Notable exceptions are the Defence Science & Technology Laboratory and the National Physical Laboratory. In the nuclear context, the proposal to create a National Nuclear Laboratory would reverse a trend of drastically reducing the UK’s capability in this area. It should be remembered that vibrant R&D facilities can generate technical growth beyond their core raison d’etre because they attract the best research workers.

(2) Whilst universities offer perhaps the broadest horizons for R&D endeavour across the engineering sector, the current shorter-term focus on research investment has made university-based engineering appointments supporting R&D activities much less attractive than once was the case. Many senior engineers in these roles are now approaching retirement, and this situation has not been helped by the focus of the Research Assessment Exercise on the esoteric and internationally-leading over the longer-term, proof-of- principle basis of R&D. The quality of the PhD learning experience in experimental subjects can be heavily reliant on cutting-edge engineering support. It is essential that the formulation of the Research Excellence Framework fully recognises these issues.

(3) The contribution of R&D to engineering is critical to the international competitiveness of UK industry and the way in which it is supported is very diverse. Most of the existing initiatives, from for example EU Framework grants through to small consultancy exercises directly-funded by industry enjoy a good level of success. Dedicated initiatives that bring in expertise across industry and academe, such as the recent Competition of Ideas’ activities, are a welcome opportunity to bridge the gulf between academic objectives and industry need. However, in comparison with many other European nations, such innovation does not benefit from an underpinning framework of expertise, perhaps once offered by dedicated industry-based research centres, and it is difficult to identify how the training of individuals involved with these programmes can be made more contiguous.

(4) It is encouraging that recent EU requirements for participation in Framework 7 projects have placed a high priority on the funding of an adequate level of PhDs to ensure not only research but the development of a high quality post graduate skills base. These PhD’s will contribute to the direction that engineering takes in the future in our industry, universities and hopefully schools.

3.5 The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering

(1) Over the last few years, particularly, in the nuclear sector great strides have been made to rationalise the way in which skills, training, awards and progression are understood and managed. This has resulted in a number of welcome initiatives such as the National Skills Academy, Nuclear, which is developing employer led objectives Training and education supporting the nuclear field is in the process of being reinvigorated, right through from apprentice-level to degree and onto research-level qualification. However, much remains to be achieved with regard to the enormous socio-economic impact likely when many of the UK legacy sites close whilst significant skills requirements start to be felt for new build. These initiatives have grown out of the wider initiatives of Cogent and others referred to in 3.1.

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(2) Industrial companies are engaged in engineering development in the engineering sectors including nuclear, where they see that there are realistic contract opportunities. Development is linked to engineering skills and there are Monitored Professional Development Schemes whereby mentoring, internal training courses and events that link with and support those offered by the university sector and lead to Chartered Engineering status.

(3) Universities aim to provide undergraduate learning for tomorrow’s engineers across the engineering disciplines required by the nuclear sector, in addition to dedicated industry- based modules and specific nuclear provision for specialists. However, in consideration of the current climate of fee-paying students, this provision has to meet with the aspirations of prospective undergraduate students. Such aspirations are rarely aligned with the employer-driven needs of the sector.

(4) Universities contribute significantly to the research requirements of UK Engineering, providing the all-important broader context in which proof-of-principle exercises can be done before being exposed to the harsh realities of the commercial environment. They also provide the scope for fledgling researchers to hone their craft before progressing onto commercial scale R&D and the management thereof. The essential transferable skills acquired through university research comprise technical writing, presentation, analytical and numerate abilities; these are difficult to source by any other route. Related programmes, such as EngD and MRes research initiatives, are a welcome development of the traditional PhD that are much more attractive to Engineers with ambitions in the commercial sector. They demonstrate a welcome trend that should be continued.

(5) NTEC is an example of the cooperation of 11 major universities with nuclear courses arranged so that that they complement rather than compete with each other in achieving appropriate nuclear excellence in training future engineers.

(6) BNES as a learned society and INucE as a Professional Institution will continue to play key roles in our particular fields to promote the provision of skilled engineering resource in the UK and beyond. An important objective of our planned combined society “The Nuclear Institute” will be to continue to encourage the networking of all establishments and individuals concerned with nuclear energy, operation, regulation, engineering, education and waste management in the UK, to continue to offer charitable funds within our capability to encourage this, through our BNES Advisory Council to continue to work and collaborate with all the major Professional Engineering and Scientific Institutions who have members who work in the nuclear industry, through INucE to continue to offer professional qualifications that give opportunity for recognition by the Engineering Council, to encourage initiatives amongst the public in general so that they are able to better understand the issues surrounding nuclear energy, how it is engineered and how it relates to all the other energy sources and application technologies that are important the economic and sustainable future of the UK and the world.

(7) Currently BNES operates the Nuclear Academic and Industry Liaison Sub-committee (NAILS) to promote the exchange of knowledge between industry and academia with the aim of bringing closer the mutual understanding of R&D needs. Future plans are to publish this information more widely. This work will continue under the new Nuclear Institute.

(8) We look forward to continuing our close work with Government Agencies to further growth of engineering capability and competence in the UK and to provide an independent learned society view point on these issues.

4 Concluding Remarks

(1) BNES and INucE welcome the concern of the Universities, Skills and Innovation Committee to investigate ENGINEERING, something that has engaged many of our members now for the last decade. The recent formation of the National Skills Academy, Nuclear has

223 in our opinion been a welcome out-turn for the nuclear industry in particular and now has the challenge to put this particular industry on a sound footing for the future. We also look forward to other successful academies noting that engineers will work in many industries during their working lives and cross transfer valuable lessons form one industry to another.

(2) The focus of the committee’s enquiry is on engineering and the UK but neither of these can be taken in isolation. Science and Engineering are highly integrated, the former underpinning the innovation and understanding of our future technologies and the latter ensuring that such science is feasible in commercial application, works effectively and efficiently, generates economic benefits whilst at the same time avoids social detriments.

(3) The solution to the problem is to meet future needs (short-, medium- and long-term) for engineers by ensuring that the appropriate proportion of our education out put is interested in engineering, that they are generally knowledgeable, adequately skilled in specifics, acceptably qualified, able to take appropriate responsibility for their actions and can deliver to an informed public.

(4) Within our charitable objectives, BNES and INucE looking forward to working with Government and others to further either the advancement of engineering in the UK.

March 2008

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Memorandum 34

Submission from EEF

Introduction

1. EEF is the representative voice of manufacturing, engineering and technology- based businesses with a membership of 6,000 companies employing around 800,000 people. A large part of its representational work focuses on the issues that make a difference to the productivity and competitiveness of UK manufacturing, including the engineering sector.

2. We are delighted to respond to this survey as it provides the opportunity to highlight some of the fundamental changes that have taken place in engineering, how this affects the contribution that it makes to the UK economy and the implications this has for how best to support the sector.

The role of engineering and engineers in UK society

3. The first question in the enquiry is widely drawn and is therefore likely to generate a large variety of responses. These responses are also likely to reflect the fact that the distinction between different sectors of the economy are blurring and that engineers also work in a wide variety of industries. This makes it harder to put down a simple definition of what engineering and engineers do. It is therefore important to recognise the contribution that engineers make in sectors such as construction, financial services and engineering services. .

4. However, for the purposes of simplicity we have confined our responses to the engineering industries represented by EEF’s membership. These cover the SIC codes from 27-35 and encompass metals, metal products, mechanical engineering, electronics and electrical engineering, motor vehicles and other transport equipment (predominantly aerospace).

5. The basic statistics show that engineering:

Contributed just under £60bn in gross value added to the UK economy in 2006, accounting for 40% of manufacturing. Of this the largest sectors are metals and metal products (£25bn), mechanical equipment (£20bn) and motor vehicles (£15bn);

Employs 1.3 million people, with a growing share of them in jobs involving a high level of skills Over half (52%) of those working in engineering are qualified to level 3 or above compared with 45% in the rest of manufacturing;

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Generated export revenues of £132.1bn in 2006, just under 60% of total manufacturing exports. Of this the largest export category is electrical and optical engineering with sales abroad of £62.7bn. Official statistics for manufacturing exports and responses to EEF surveys suggest that a growing proportion of exports are destined for rapidly expanding markets in China, India, other parts of Asia and Central Eastern Europe. For example, four in ten firms see China as a major growth market over the next five years, compared with just one in ten in 2002111;

Spent £5.3bn on research and development (R&D) in 2006 with aerospace the largest spender at just over £1.8bn.

6. While these statistics provide an impression of an industry that is innovative and highly successful, they do not provide a complete picture of what the engineering industry does today and the contribution it makes to the UK. In the rest of this section we therefore highlight two areas of recent EEF research on changing sources of competitive advantage in engineering and on the role that the sector plays in combating climate change.

7. Our research shows that engineering companies are responding to increasing competition by focusing on the areas where they can best add value. Compared with previous EEF survey research, the number of companies competing with low cost countries by cutting prices aggressively has more than halved. Related to this, companies are rethinking where the competitive advantage lies. In a large survey of manufacturers, firms were asked to rank their top three sources of competitive advantage from a list of activities112113. This showed that the traditional focus of manufacturing (production and assembly) was at the top of the list, ranked as the source of competitive advantage by 29% of companies. However, it had only a narrow lead over design and development, which was mentioned by 23% of companies. Providing services to customers was a little further behind at 19%.

8. Looking ahead to the next five years, design and development (25% of companies) is set to overtake production and assembly (23%) as the key source of competitive advantage. Despite these developments, we should not dismiss the importance of production and assembly as 70% of companies placed it amongst their top three sources of competitive advantage. In addition, although manufacturers expect to see some production activities shift out of this country, just under seven in ten of them (68%) expect the UK to be the primary location for it in five years’ time.

9. The innovative and export-oriented nature of much of modern engineering is also reflected in our work on the actual and potential contribution it can make in helping to address climate change. Reducing greenhouse gas emissions will require the transition to a ‘low-carbon economy’ which emits substantially less

111 EEF (2007) Export support: how UK forms compete abroad 112 EEF (2007) High value – how UK manufacturing has changed 113 EEF (2007) Delivering the low carbon economy – business opportunities for UK manufacturers

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carbon dioxide per unit of output. The key components of a low-carbon economy – more efficient and less polluting transportation, energy supply and buildings – will be designed, developed, produced, operated and maintained with a major input from engineers and engineering businesses.

10. The UK engineering sector plays a central role right across the value chain in the emerging low-carbon economy. This includes the design, development, manufacture and operation of more energy-efficient and less carbon-intensive systems, products and services. Each subsector, from mechanical through to electrical engineering, is actively engaged in improving the performance of existing technologies and developing new alternative technologies.

11. The transition to a low-carbon economy therefore provides UK engineering with significant businesses opportunities at home and abroad. These include the design, development, manufacture and implementation of renewable energy systems, carbon capture and storage systems, low-carbon domestic heating systems, efficient automotive engines and industrial automation systems. EEF research shows that a combination of strengths in technology, skills and infrastructure leave UK engineering particularly well-placed to capitalise on these opportunities, although this will depend on government backing with a strategy that supports research and development in new low carbon technologies.

The role of engineering and engineers in UK's innovation drive

12. Engineering has not always been in this position of strength. In the decade between 1993 and 2003, engineering growth was fairly slow, averaging just 0.8% per year. Yet since 2004, engineering has grown on average by 2.0% per year. In doing so, engineering businesses have overcome a number of significant obstacles over the past decade – an uncompetitive exchange rate, growing competition from lower cost producers and rising commodity prices.

13. We believe that this improved performance reflects a range of changes that companies have made in how they run their business. Over the past five years, engineering productivity has increased by almost 30%, partly driven by greater, more effective use of modern management techniques such as lean manufacturing and high performance working. Yet it also reflects a more fundamental transformation, with many engineering firms investing in innovation to differentiate their products and services from their competitors and develop niche markets. This is reflected in the 2005 Community Innovation Survey (CIS) which shows that engineering is the most innovative sector in the UK.

14. EEF research also shows a growing proportion of engineering companies increasing the emphasis they place on innovation. Our 2005 survey114 showed that two-thirds of companies surveyed were increasing their focus on innovation with a further fifth planning to do so or considering it. Just under

114 EEF(2005) Where now for manufacturing?

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half of them (45%) were developing niche markets and customizing their products. A more recent EEF survey115 showed a majority of them increasing their innovation activity (71%) with 58% planning to do so in the future and that it was delivering results.

15. Much of modern engineering’s investment in innovation is driven by its high R&D expenditure. In 2006, engineering expenditure on R&D was £5.3bn, accounting for 50% of all manufacturing R&D and just over a third of all business R&D. More than this, engineering’s R&D intensity – a key factor in improving innovation performance and productivity growth – was 4.0% in 2006. This compared with 3.4% for the rest of manufacturing and 1.1% for business as a whole.

16. However, innovation activity in engineering is not limited to just R&D expenditure. The CIS survey shows that engineering was:

the most active sector in acquiring machinery, equipment and software to support its innovation;

more likely than any other sector to investment in design and development when innovating; and

the second most likely sector – behind only computer and engineering related consultancies – to train staff specifically to develop innovation.

17. Moreover, innovation in engineering goes beyond product and processes. The CIS shows that engineering is second only to computer and engineering related consultancies in terms of implementing wider innovations, such as developing and adopting new business models, management structures and marketing techniques. Investment in these areas is allowing engineering firms to engage in higher value activities.

18. This investment in innovation has translated into productivity gains and stronger, more sustainable output growth. In the five years between 2002 and 2006, average annual productivity growth in engineering was more than two and a half times that of the whole economy. As Chart 1 shows, productivity growth in engineering also accelerated from 4.5% between 1997 and 2001 to 5.3% in the next five years at a time when it slowed in the whole economy from 2.2% to 2%.

115 EEF(2006) New light on innovation

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Chart 1 Engineering sees faster productivity gains Average annual rate of change in manufacturing output per hour

1997 - 2001 2002 - 2006 6 5.3 5 4.5 4.4

4 3.5

3 2.2 2.0 2

0 Engineering Manufacturing Whole Economy

Source: National Statistics

19. Certain sectors have benefited from this investment in innovation: Mechanical equipment has seen average annual productivity growth of 9.5% between 2002 and 2006 and experienced average annual output growth of 4.1% over the past five years;

Transport industries experienced annual average productivity growth of 8.8% between 2002 and 2006 as output growth in these sectors has averaged 3.6% since 2002.

20. Investment in innovation means that engineering continues to contribute to the UK’s economic growth, even as financial market turbulence threatens to undermine the economy. Yet EEF believe more can be done by government to help engineering take advantage of its innovative potential. This includes:

Making greater use of public procurement to stimulate innovation;

Improving engineering links with universities; and

Supporting applied research in universities engineering and design departments

The state of the engineering skills base in the UK

21. The shift by companies in engineering to the higher value added activities described in the previous section means that they need more highly skilled employees and also a workforce with a wider breadth of skills. The UK engineering sector currently has a higher proportion of employees qualified to Level 3 and above compared with the rest of manufacturing and a lower

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proportion with low or no qualifications – as shown in Table 1. There is also variation in skill levels across engineering sectors. The machinery, electrical and optical equipment sector has the highest proportion of employees qualified to Level 3 or higher – at 56% compared with 45% in the metals sectors. In addition, employment in UK engineering compares well with our major European competitors on its skills content. The UK has a slightly higher proportion of employees in professional and technical occupations compared with France and Germany and a similar share of the workforce employed in science, engineering and technology occupations.

Table 1 Engineering employment is highly skilled % of workforce by qualification < Level 2 Level 2 Level 3 Level 4+ Engineering 20 28 25 27 Rest of manufacturing 24 29 21 24 Whole economy 18 28 22 32 Source: Sector Skills Development Agency

22. Having the right technical and practical skills remains critical for engineering, but increasingly companies are looking for employees with management skills, good commercial awareness and the ability to work in teams. However, some companies are experiencing difficulties in meeting these demands. Furthermore, the occupational profile within engineering and manufacturing is forecast to shift further towards higher skilled occupations in the coming decade. An EEF survey116 in 2007 showed that over 45% of companies thought that problems attracting and retaining skilled people would be among the biggest barriers to business growth over the next three years.

23. Analysis from the Sector Skills Council which includes engineering (SEMTA)117 shows that companies are currently experiencing skills gaps and hard-to-fill vacancies across a range of occupations and skills levels – from experienced technicians to recent graduates and professional occupations.

24. There are a number of reasons for the current skills problems facing the sector. Firstly, there are insufficient, suitably qualified young people entering the industry. The numbers of young people studying for STEM qualifications post-GSCE remain below levels recorded ten years ago. This has also translated into a fall in the number of UK-domiciled students accepted onto engineering, maths and science courses at university (see chart 2). In addition, over two thirds of companies recently surveyed by EEF118 said the average age of their workforce was between 41 and 50 years old. The UK’s ageing workforce is likely to lead to greater skills shortages in future unless more young people progress in science, maths, engineering and technology-related subjects. Combined with the falling numbers of UK students applying to study engineering is the relatively high proportion of graduates that look to other sectors for employment on completion of their studies. For example the

116 EEF(2007) Blurred vision – the need for a clear strategy on business taxation 117 SEMTA (2007) 2006 Labour Market Survey of the GB Engineering Sectors 118 EEF (2008) Absence survey (not yet published)

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Higher Education Statistics Agency shows that at least one in five electrical and electronics engineering graduates are not employed in a related occupation.

Chart 2 UK students in maths and engineering declining Number of UK-domiciled students accepted on maths and engineering courses Engineering (LHS) Maths 20000 35000

30000 17500 25000 15000 20000 12500 15000

10000 10000

8 0 9 99 0 02 05 19 19 20 2001 20 2003 2004 20 2006

Source: UCAS

The roles of industry, universities, professional bodies, government, unions and others

25. Given the importance of workforce skills to competitiveness it is clear that it is in employers’ interests to ensure that their employees have access to training and skills development. Employers are investing significant amounts in training. The latest National Employer Skills Survey put overall business investment in skills at just over £33 billion a year. EEF research in 2005 showed some 44% of engineering companies increasing their investment in training and just 5% reducing it.

26. As well as increasing investment in the training of their existing workforce companies are looking to encourage more young people to consider careers in engineering. There are many examples of companies engaging with schools and universities to show young people what working in the modern engineering sector is really like. The EEF has supported the safevisits.org.uk website which advises business how to organise effective and safe visits to workplaces.

27. The new developments in 14-19 education (in particular the introduction of the new Diplomas from September this year) will also involve cooperation between employers and the delivery consortia. This will be critical if students are to have meaningful and productive work placements. The forthcoming curriculum changes will also mean that young people will need high quality careers information and guidance at an earlier stage than they currently receive it.

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28. The evidence suggests that those providing young people with formal or informal careers advice do not fully understand the opportunities offered by careers in the engineering sector or the value of a high quality vocational qualification such as an engineering apprenticeship119. We have welcomed the introduction of the Quality Standard for Young People’s Information Advice and Guidance which should ensure that all young people receive impartial advice about their future career and educational options. It is now important that delivery on the ground is properly monitored.

29. However, it is also important that more young people achieve good foundation in STEM subjects at Key Stage 3. The proportion of people achieving grades A*-C at GCSE in Maths and Science has fallen below the average for all subjects. A-level entries in Maths and Physics have declined considerably over the past ten years. Increasing the number of young people studying STEM subjects is important and it is important to implement quickly the Sainsbury review’s recommendations to improve the quality on STEM teaching to provide students with information on how science is used in industry through the curriculum and expand the number of science clubs in secondary schools120.

30. As the Sainsbury review highlights, the array of bodies aimed at attracting young people to study STEM subjects, or to enrich teacher training or the curriculum, actually makes it more difficult for teachers looking for resources or for industry to engage with STEM teaching. The rationalisation of schemes recommended by Lord Sainsbury should be an urgent priority for the government’s National STEM Director.

31. In addition to ensuring the successful roll out of changes to the 14-19 years old curriculum, government also has a role in delivering an effective market for training beyond the compulsory learning age. The effectiveness of business investment in skills would be improved by speeding up progress towards a funding system driven by business and learner demand rather than by a ‘predict and provide’ model. We also believe that the government can play a role in improving the effectiveness of business training through, for example, better promotion of Investors in People and better collaboration among business support agencies including the Manufacturing Advisory Service.

32. The government’s plans to increase the number of apprenticeships and to improve their status are welcome as long as the plans for expansion are driven by business demand rather than centrally-determined targets. It is important that the government’s plan for growth does not only concentrate on developing new places in sectors where apprenticeships are rare. It should also look at ways of encouraging new supply in the engineering and manufacturing sectors. We therefore welcome its proposals to encourage SME take up of apprenticeships.

119 Trade and Industry Committee, fifth report 2006-07: Better Skills for Manufacturing, HC 493, paragraph 78 120 HM Treasury The Race to the Top: A review of Government’s Science and Innovation Policies. October 2007

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33. Higher education providers must also ensure that undergraduate programmes are response to the changing demands of the engineering sector. In addition, higher education also has a role in communicating the career possibilities to engineering graduates – however, it is essential that this process starts as early as possible.

34. Demographic change, which will see a fall in the number of 18 year old school leavers, combined with the need for an increase in the number of adults with higher level qualifications will lead to a change in the way in which higher education and industry work together. More students will come from the workforce rather than straight from school and there will be increased demand for qualifications or courses aimed at meeting specific business needs and delivered in a different way to the traditional honours degree course. For this change to succeed business and academia will have to learn to work together and to understand each others’ needs. This will be a critical issue for the government’s forthcoming review of higher level skills to tackle.

Conclusion

35. As our submission has outlined, engineering continues to perform an important role in the UK economy. It remains a generator of substantial wealth and a major employer across the whole of the country. However, engineering operates in a fast-moving global economy, and the importance of seeking high value-added and niche markets remains the number one challenge. Underpinning success in this respect are skills and innovation – the need to employ and retain a highly skilled workforce, and to innovate continually in order to compete effectively in the market place. Therefore, there remain a number of challenges for business and policy makers alike, in order to ensure the continuing success of the sector.

March 2008

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Memorandum 35

Submission from Universities UK

Introduction

1. Universities UK welcomes the opportunity to make a submission to this inquiry, and the articulation of a debate on this key issue of engineering. The knowledge and work of UK engineers is absolutely critical to the economy, and contributes to developments in virtually every aspect of our lives: our health, transport systems, building and construction, production manufacturing and design of products, IT development, and climate change. The central importance of our ability to continue to produce, develop and support quality engineers, across the range of specialisms (chemical, electrical, structural, mechanical, aeronautical, design and civil) must not be underestimated.

2. The UK must compete with rapidly developing countries in what is now a global market. China and India now produce half a million engineering graduates every year and are producing record numbers of graduate engineers to fuel their technological and economic development. The UK higher education system needs appropriate support to enable continued provision of highly skilled engineers that are a key factor in supporting business and ensuring the UK remains competitive.

Recommendations

3. This submission sets out our views on key areas and makes five key recommendations: • Better advice and guidance should be provided to all students regarding engineering careers, opportunities and progression routes. • Levels of funding for engineering courses should be raised by between 50- 80% through the provision of additional funding for teaching, to better reflect the true costs of teaching engineering in higher education. • Employers must take responsibility for engagement in higher-level learning and research training for the UK's engineers and scientists. • UK primary and secondary education systems should be enabled to provide better Science, Technology, Engineering and Mathematics (STEM) (particularly Maths) skills to students, to ensure take-up of STEM courses at a higher level is not constrained.

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• Support and incentives should be provided to small and medium sized enterprises’ (SME) employers to enable them to engage with higher education and potentially to employ and develop engineering graduates and retain them in the profession.

4. The drive to deliver low cost graduates and a resulting move away from open-ended learning will not stimulate the type of excitement and interest in subjects like engineering which will drive students and graduates to want to follow a career in related fields. This will occur through inspirational teaching and exciting open-ended programmes. Government need to recognise this and that appropriate funding of quality courses/teaching must not be sacrificed to meet other targets.

5. Industry needs many more high-quality engineers but along with student desire to study in this area, migration of engineering skills to other sectors must be addressed. Employment rates six months after graduation in 2005 for engineering graduates were higher than the average for all first-degree disciplines121 but despite salaries of 17.4% above average for all first degree graduates122 a significant number go into a range of other careers - 60% of registered engineers are spread throughout other sectors of the economy123.

6. The higher education market is now driven by student demand; and the factors that affect student choice are therefore critical to the take-up of courses that will generate the graduates that business want. Engineering employers and engineering professional institutions, over many years, have failed to inform young people (and parents) of the exciting, sustainable and well-paid career opportunities on offer within the engineering profession. There is a need to have high quality, and targeted information, advice and guidance available to applicants when making their choices for AS and A levels, and generally provision of better advice and guidance to students at all stages on engineering careers, opportunities and progression routes.

7. The supply chain also affects take-up of undergraduate qualification in engineering: the limitations of those students coming through UK primary and secondary education in maths is a major constraint to take-up of STEM subject at A Level, a requirement for a STEM university course or professional STEM

121 HECSU what do graduates do? 2007 122 HECSU what do graduates do? 2007 123 Engineering and Technology Board Engineering UK research report 2005

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career. If there is to be any success later in the supply chain these issues must be addressed. We support current work led by the National Council for Educational Excellence (NCEE), which will examine how Higher Education Institutions (HEIs), schools and universities can work together to to improve demand for STEM subjects.

8. The development of the 14-19 Diplomas could be seen as an important factor in terms of ‘supply’. These have been designed to encourage more young people to continue learning for longer and to have the chance to pursue a curriculum which is intended to provide them with knowledge skills and attitudes that they need to succeed in work, life and further learning including progression on to an HE qualification.

9. Of particular significance is the Engineering Diploma, which is intended to provide young people with a foundation in engineering principles. The Diploma is aimed specifically at equipping young people to go on to higher levels of study or employment. It will apply theoretical knowledge and skills to engineering with an emphasis on learning by doing. The Diploma also covers a range of industries involved in engineering as well as looking at issues of sustainability and the application of physics and maths in engineering.

10. As well as developing theoretical, technical and practical skills, young people will be required to learn general IT skills and the ‘softer’ skills such as team working, problem solving and multi-disciplinary working, management and organisational skills, all of which will be useful in working within different engineering related industries.

11. The Royal Academy of Engineering124 found in a recent study that UK engineering graduates are still world class. It is accepted however that business now place more importance on graduates having experience applying theory to real industrial problems. The HE sector recognises the importance of experience in industry and most now incorporate placements into engineering courses - students therefore need opportunities to experience genuine industrial environments through work placements and projects. It is often an unwillingness from business to offer placements that proves the determining factor in sector provision and the delivery of placements and sandwich type courses. Business must be encouraged to engage in order to reap the benefits of these types of courses.

124 Royal Academy of engineering Educating Engineers for the 21st Century June 2007

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12. Industry must accept responsibility for promoting careers to students, and for engaging with universities to ensure that they get graduates and postgraduates with they skills they want. They must also ensure that they supporting and retaining these graduates by offering Continuous Professional Development (CPD) and professional development throughout their careers. Industry also has an input to make if University staff are to develop new teaching material which takes account of the success of academic-industrial research links. A large proportion of UK engineering companies are SMEs. These SME employers need support and incentives to engage with higher education and to employ and develop engineering graduates and retain them in the profession. We urge Government to provide support for SMEs though incentives or voucher schemes to enable them to progress along the ‘innovation escalator’, which relates to this type of engagement through graduate employment/placements etc.

13. The Engineering and Technology Board (ETB) and the Engineering Professors' Council (EPC) recently commissioned independent consultants to investigate the costs of teaching engineering in Higher Education institutions in England and to provide a comparison with current levels of funding125. The findings of the study indicate that the present costs and funding levels threaten the sustainability and future quality of teaching, and suggest that the capacity for further efficiency savings is limited. We recognise the EPC and the ETB view that to maintain the long-term capacity and capability of engineering in the UK, which depends upon a high quality output from its HE Engineering Departments, levels of funding must be revised to reflect better the true costs of teaching engineering in HE, in line with recent findings of the Royal Academy126 that funding per university engineering student needs to increase by 50 - 80%. This would need to be supported with additional resource to the sector.

14. Universities UK’s Spending Review submission highlights the significant cost pressures that universities are under across all teaching areas. The introduction of variable fees from 2006 will make a major contribution, though the underlying financial position of the sector remains fragile and it will take time to overcome historic under-investment. To do this, it is crucial that the unit of public resource is protected and further growth is fully funded.

15. In 2006 the government announced its intention to replace the Research Assessment Exercise (RAE) with a less burdensome system relying to a greater extent on metrics as indicators of research quality. Initial proposals for a system based on income metrics were largely rejected by the academic community on the basis that this approach would not adequately assess the quality of research, being largely a volume measure. Further to this the

125 A summary of the findings and the full report from JM Consulting Ltd is available on the websites of the ETB (www.etechb.co.uk) and the EPC (www.epc.ac.uk). 126 Royal Academy Educating Engineers for the 21st Century 2007

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government announced a broad framework for the new system that would take greater account of research quality, and HEFCE were invited to take the development of the new approach forward.

16. Since then HEFCE have undertaken substantial developmental work. A key feature of the new system, put out for consultation by HEFCE in late 2007, is to develop distinct approaches for the science and non-science based disciplines. Science based disciplines would be driven to a larger extent by metrics (with bibliometric indicators playing a key role), with non-sciences assessed on the basis of ‘light touch’ peer review. The sciences would be subdivided into six broad subject groups, one of which would include Engineering.

17. Following the publication of HEFCE’s consultation, concerns were raised within the Engineering community over the appropriateness of bibliometric measures when applied to Engineering. This is largely because coverage in the bibliometric database, World of Science (WoS), is not complete in this area. Indeed, this limitation was recognised by HEFCE in the consultation, who indicated that they would investigate this issue further with subject representative groups.

18. Universities UK has broadly welcomed the direction of travel outlined in the HEFCE consultation, though Universities UK reflected concerns raised in some specific discipline areas, including Engineering. It has been suggested that due to the limitations of bibliometric data, Engineering would need to be reclassified in the non-sciences. However, Universities UK have not been convinced by this. In the RAE 2008, Engineering already maximises the use of metrics and it would appear sensible that a workable basket of metrics should be developed for this discipline. We welcome HEFCE’s intention to undertake further work in this area, in consultation with the Engineering community.

19. Universities share the concerns of the Engineering, and other academic communities, of the implications for multi and interdisciplinary research across the proposed science/non-science divide as currently proposed. We would prefer to see arrangements where a continuum approach is taken, rather than having a sharp divide that requires fitting subjects into one ‘box’ or the other. The full Universities UK response can be found at http://www.universitiesuk.ac.uk/research/downloads/REF_Response.pdf.

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Europe Unit

20. The UK Higher Education Europe Unit (www.europeunit.ac.uk), based at Universities UK, advises UK higher education institutions on European HE policy developments. Europe Unit guidance on the Bologna Process to create a European Higher Education Area of comparable HE structures has included advice on implications for four-year integrated Masters degrees in engineering and other professional subjects. Further information is available at http://www.europeunit.ac.uk/sites/europe_unit2/resources/E-05-12.doc

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Memorandum 36

Submission from The Universities’ Transport Partnership

1 The Universities' Transport Partnership

1.1 The Universities' Transport Partnership, UTP, is a group of eight leading UK universities providing Masters level education in transport. The UTP members are: Imperial College London, Centre for Transport Studies University of Leeds, Institute for Transport Studies Newcastle University, School of Civil Engineering and Geo- Sciences Napier University, School of the Built Environment University of Salford, School of Computing, Science and Engineering University of Southampton, Transportation Research Group University College London, Centre for Transport Studies University of Westminster, Department of Transport Studies The Partnership is supported with funding from the Engineering and Physical Sciences Research Council, EPSRC.

1.2 The Partnership was created in 1999 to bid jointly for EPSRC funding, and was again successful in securing support through a later bidding round in 2004.

1.3 Partnership members work together in: • the development of new course materials • promoting Masters courses to both employers and prospective students • working with professional bodies in promoting careers in transport and in the development of the transport planning profession • working with employers in ensuring that the content and delivery of the Partnership courses meets their needs, and those of their staff but they compete for students.

1.3 A total of 289 full time equivalent (FTE) students are studying for a Transport Masters this year at UTP members, 162 from the UK, 32 from other EU countries and 95 from the rest of the world. Of the UK students 119 FTEs are studying part time, almost all of whom are supported by their employer.

2 Working with Employers 2.1 To facilitate cooperation with employers, in 2001 the Partnership established an Employers’ Forum, chaired by a senior and respected transport planning consultant. The Employers’ Forum is open to all employers of UTP Masters students and graduates, and membership is

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free. The Forum meets twice a year in London and has one regional meeting a year.

2.2 Members of the Forum include nearly all the major transport engineering and planning consultancies, and many others, as well as a number of local authorities, and central and devolved government bodies. The employers are generally represented at a senior level, often by directors.

2.3 The Forum considers the structure, content and delivery of the UTP Transport Masters courses, as well as topics relating to the promotion and development of careers in transport, including professional development and CPD. Topics considered at recent meetings include • the Bologna Accord and European Credit Transfer System, and their potential impact on education in transport • skill shortages, and the Borders and Immigration Agency's Shortage Occupations list • attracting high quality graduates into transport engineering and planning careers • professional qualifications and recognition for transport planners.

2.4 As a result of Forum discussions: • nearly all UTP courses are now delivered in a structure that enables part time students to spend one full day a week at the university’ Previously they had to attend for parts of two or more days, making it disruptive for them and their employers • a number of new courses and modules have been introduced and more are being developed • there is more emphasis on generic management and communications skills • there is greater emphasis on knowledge underlying, for example, transport models, relative to how to use particular model packages.

2.5 The Forum has become a unique opportunity for employers in transport engineering and planning to meet and to discuss issues of common interest relating to careers, skills, education and professional development in an environment that is removed from the competitive context in which many of its members work.

2.6 The identity provided by the Employers’ Forum has provided opportunity for employers to present a collective view on matters of common concern such as the identification of transport skills among those listed by the Borders and Immigration Agency as Shortage Occupations.

3 Working with Professional Bodies 3.1 The UTP meets twice a year with the four professional institutes concerned with transport engineering and planning, the Chartered Institute of Logistics and Transport, the Institution of Civil Engineers, the Institution of Highways and Transportation and the Royal Town

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Planning Institute, to discuss matters of common interest in education and professional development. In addition, the Transport Planning Society is represented through the Employers’ Forum Chair.

3.2 Topics considered at recent meetings include • the Bologna Accord and European Credit Transfer System, and their potential impact on education in transport • course accreditation • continuing professional development • promoting careers in transport • professional qualifications and recognition for transport planners. . 4 Some Lessons Learned 4.1 The UTP is widely regarded as a success. By working together, it has been possible for the university members to work with employers and the professional bodies in a way that would be difficult, if not impossible, for individual universities to achieve; one university, working alone, would be unlikely to bring 35 or so employers together every six months; certainly not if all universities sought to have such meetings, individually. The same applies to the regular contact with the professional bodies that has been established.

4.2 Since the Partnership was established, the number of students studying for a Transport Masters at member universities has more than doubled. Whilst some of that increase most probably reflects an increasing demand for transport professionals, and thus for education in transport engineering and planning, a substantial proportion will be attributable to the effects of the collective promotion of Transport Masters by the Partnership, both to prospective students and through the Employers Forum. Certainly, the Employers’ Forum has provided Employers with a much better understanding of Masters level education, both the opportunities and the requirements for both employers and students.

4.3 However, the success of the partnership activities is totally dependent on: • the availability of funds to meet the costs of the shared activities. At present those are provided by EPSRC, but if that funding were no longer available, it is unlikely that the member universities would be able to fund the Partnership directly, and although employers clearly see real benefits in participating in the Employers’ Forum, soundings suggest that they would be unlikely to provide the funding necessary to maintain it. • the commitment of individuals within the member universities to the time required to manage and participate in partnership activities as well as mutual trust, and having a Chair of the Employers’ Forum who shares that commitment, is prepared to make the necessary time available and who is both respected and trusted by the employers, the universities and the professional bodies.

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4.4 The lesson for other sectors in higher education is that by working together across universities, it is possible to have highly effective, and efficient, relations with industry and the professional bodies, and to work together to promote careers and professional development within

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Memorandum 37

Submission from Edexcel

1 Executive Summary

1.1 Edexcel, the UK’s largest awarding body, offers a range of engineering qualifications to support careers in this field.

1.2 The organisation is committed to supporting the Leitch agenda and playing a full role in raising the UK’s skill levels through innovative and accessible qualifications that engage learners and inspire teachers.

1.3 BTEC vocational qualifications, which include aerospace, automotive, electrical/electronic, mechanical and manufacturing engineering, provide a route to a career in engineering or to further study. They are recognised by professional bodies and attract UCAS points for entry into higher education.

1.4 In 2006/07, 33,356 learners registered for BTECs in engineering. There has been a significant rise in popularity for these qualifications in the past two years.

1.5 Edexcel will also be offering the new Diploma in Engineering, which will be taught for the first time in September 2008.

1.6 Edexcel believes that the Government should encourage and support emerging initiatives to promote engineering careers, ensure ongoing and continuous investment in engineering educational facilities, and encourage the existing engineering teaching profession to keep their skills up to date.

1.7 The 2005 Young Woman Engineer of the Year, now an ambassador for science, engineering and technology, has a BTEC background and her career is outlined as a case study in this submission.

2 Introduction

2.1 Edexcel, a Pearson company, is the UK's largest awarding body offering academic and vocational qualifications and testing to schools, colleges, employers and other places of learning in the UK and internationally.

2.2 In 2007 we processed 9.6 million exam papers in over 85 countries, with 4.5 million marked onscreen using ePen technology. Our general qualifications taken internationally include GCSEs, AS and A Levels, iGCSEs and O Levels.

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2.3 Our vocational qualifications include NVQ and BTEC from entry level to Higher National Diplomas. Our entire vocational portfolio had over one million registrations across 45 countries.

3 BTECs: an overview

3.1 BTECs are work related qualifications built to accommodate the needs of employers and allow progression to university. They provide a more practical, real- world approach to learning alongside a key theoretical background.

3.2 BTEC First and Nationals can be taken as well as, or in place of, GCSEs and A levels in schools and colleges. They range from entry level, suitable for learners from the age of 14 who might struggle with traditional learning, to level 5 higher education qualifications.

3.3 Their content is informed by and based on National Occupational Standards (NOS) as determined by the relevant sector skills council, thus BTEC First and Nationals in Engineering are also recognised as technical certificates in several apprenticeship and advanced apprenticeship frameworks. They are also recognised by universities, employers and professional bodies across the United Kingdom and in over 100 countries worldwide.

3.4 As well as providing a route to a career in wide range of engineering disciplines, BTECs attract UCAS points to allow progression to university. A BTEC National Diploma, for example, attracts the same number of UCAS points as three A Levels.

3.5 BTECs have been around for 25 years, and they continue to grow and develop. In 2007, more than one million students enrolled on a BTEC course.

3.6 This table illustrates how BTECs fit into the National Qualification Framework (NQF) alongside their academic equivalents.

NQF Qualification Equivalent to Level 5 BTEC Higher National Diploma Foundation Degrees, Dip HE BTEC Higher National Certificate Intermediate level qualifications BTEC National Diploma 3 A Levels (A*-C) 3 BTEC National Certificate 2 A Levels (A*-C) BTEC National Award 1 A Level (A*-C) 2 BTEC First Diploma 4 GCSEs (A*-C) BTEC First Certificate 2 GCSEs (A*-C) 1 BTEC Introductory Diploma 4 GCSEs (D-G) BTEC Introductory Certificate 2 GCSEs (D-G)

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4 Edexcel’s Engineering qualifications

4.1 Edexcel offers BTECs from Introductory level to Higher National Diploma level in:

• Engineering • Communications Technology • Civil engineering • Mechanical engineering • Manufacturing engineering • Aerospace engineering • Operations & maintenance engineering • Electrical/electronic engineering • Automotive engineering • Instrumentation and control engineering • Marine engineering • Operations engineering • Plant & process engineering

4.2 We offer other engineering qualifications including GCSE, and NVQs at levels 1- 4 in Performing Engineering Operations, Performing Manufacturing Operations, Business Improvement Techniques and Marine Engineering Operations.

4.3 Edexcel is also offering the new Diploma in Engineering, which will be taught for the first time in September 2008. Three core themes run through the Diploma, plus an additional theme at Advanced Level:

the engineering world

discovering engineering technology

engineering and the future

analytical methods for engineering (Advanced Level only)

4.4 The themes aim to develop knowledge and skills within a range of engineering functions and sectors, including design, manufacture, maintenance, installation and commissioning, instrumentation and control, technical support, aeronautical, automotive, chemical, electrical/electronic, mechanical, and passenger transport.

4.5 Edexcel aims to provide accessible, exciting and innovative qualifications that engage learners and inspire teachers. In doing so, we aim to support the Leitch agenda to improve the UK’s skills.

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5 Scale of BTEC engineering

5.1 In 2006/07, 33,356 learners registered for BTECs in engineering.

5.2 The last two years have seen significant growth in popularity for BTEC courses at some levels. Between 2005/06 and 2006/07 there was a 56 per cent increase in registrations for the BTEC Introductory Diploma and Introductory Certificate in Engineering and a 16 per cent increase in the number of registrations for First Diplomas.

6 Recognition by industry

6.1 Professional bodies that recognise engineering BTECs for membership include:

Engineering Council Institution of Engineering and Technology Association of Building Engineers Chartered Institute of Building Institute of Automotive Engineer Assessors Institution of Motor Industry Institute of Marine Engineering, Science and Technology Institute of Materials, Minerals and Mining Institution of Civil Engineering Surveyors Institution of Engineering designers Institution of Structural Engineers Society of Operations Engineers Welding Institute

7 BTEC Engineering case study: Sarah Pullen

7.1 In 1997, Sara Pullen was a successful applicant for a BAE Systems Apprenticeship. Sara had contemplated studying an engineering degree at university but chose to undertake an apprenticeship and complete a BTEC because she felt it would give her a grounding for her career in engineering.

7.2 During the three year apprenticeship, Sara completed a BTEC Higher National Certificate and a BTEC Higher National Diploma in Manufacturing Engineering. Sara used her BTEC to step onto her final year at university, gaining a BEng (Hons) in Mechanical and Electrical Engineering.

7.3 Upon getting her degree, she gained Incorporated Engineer (IEng) status with the IET (Institute of Engineers and Technicians) and in 2006, she was appointed to a Senior Crew Systems Engineer at BAE Systems.

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7.4 Nine years after she started her apprenticeship, Sara is an Assistant Chief Airworthiness Process Engineer for BAE Systems and she is currently pursuing a Chartered Engineer status.

7.5 In 2005, Sara won the Young Women Engineer of the Year award and she is now an ambassador for science, engineering and technology.

8 Observations on engineering education

8.1 There is much to celebrate about engineering education in the UK at all levels. However, Edexcel would draw the Committee’s attention to the following points:

8.1.1 Image and career information – More needs to be done to raise awareness of engineering as an attractive career to school and college students. Ofsted has recognised that learners already on engineering courses need to have greater awareness of their own career prospects. Some excellent work by the National Forum of Engineering Centres (NFEC) and others is already underway to tackle this issue.

8.1.2 Ongoing investment – the nature of engineering means that learning institutions need to invest substantially in classroom resources, particularly in comparison to other subjects, and continue to invest to keep pace with technology. There are concerns, for instance, as to how far schools are equipped to run engineering courses and how many college engineering CoVEs (Centres of Vocational Excellence) will continue to exist.

8.1.3 Workforce development – Continuous technological change is inherent in engineering. As such, engineering teachers need to be encouraged to maintain up-to- date skills and awareness of new technologies. Membership of professional institutions is helpful in this regard.

8.2 Edexcel therefore believes that the Government should encourage and support emerging initiatives to promote engineering careers, ensure ongoing and continuous investment in engineering educational facilities, and encourage the existing engineering teaching profession to keep their skills up to date.

8.3 This approach will help enhance the education sector’s capability to deliver modern engineering education and create self-sustaining capacity.

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Memorandum 38

Submission from Semta

Executive Summary 1. The engineering industry has articulated its current and future skills needs through the Sector Skills Agreement process, and higher level skills are the first element identified as key to the sector’s future success. Making high quality apprenticeship programmes, flexible upskilling and reskilling programmes, higher education which prepares graduates for work, and management training the core “offer” for engineering firms, and making engineering the career of choice for the right people, will dramatically impact on skills shortages in the sector.

2. Any activity to improve skills in engineering requires companies to take a strategic view of their business needs, before focusing on training requirements and provision. This raises demand for and understanding of skills — giving managers the tools and skills to plan strategically for their company’s future and its future skill needs.

3, Provision and support must accommodate the particular needs of small firms, as 94% of companies127 in Semta’s British engineering “footprint” employ fewer than 50 people . Recognition of the particular barriers to engagement faced by small firms, and “flexing” training provision and support to address this, will have an important impact on skills in the sector.

Semta, the Sector Skills Council for Science, Engineering and Manufacturing Technologies 4. Industry owned and led, Semta aims to increase the impact of skilled people throughout the science, engineering and manufacturing technologies sectors.

5. We work with employers to determine their current and future skills needs and to provide short and long term skills solutions, whether that be training and skills development, or campaigning with government and other organisations to change things for the better. Through our labour market intelligence and insights from employers across our sectors, we identify change needed in education and skills policy and practice, and engage with key industry partners and partners in the education and training sector, to help increase productivity at all levels in the workforce.

6. The sectors we represent are: Aerospace; Automotive; Bioscience; Electrical; Electronics; Maintenance; Marine; Mathematics; Mechanical; Metals and Engineered Metal Products.

7. Semta is part of the Skills for Business network of 25 employer-led Sector Skills Councils.

127 Source: ABI 2006

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The State of Engineering Skills 8. The engineering sector is looking forward to making an exciting future contribution to the wealth of UK plc. Key to this contribution will be the supply of skills and individuals capable of embracing the technological change and global challenges ahead.

9. Through its Sector Skills Agreement (SSA) process, Semta has engaged with thousands of engineering employers across the United Kingdom. The outcome is an analysis of the key drivers of productivity, performance, and skills, and identification of areas where provision is not addressing skill needs. This then leads to an agreed action plan for Semta, employers, and all the stakeholders in the learning and skills landscape.

10. From the SSAs for the engineering sectors, the following key drivers for/ influencers on skills requirements have been identified: a. The introduction of new technologies or equipment, necessary to keep pace with the speed of technological change b. Development of new products and services in response to the move to a more value-added economy c. Globalisation of engineering processes d. Introduction of new working practices to reflect new technologies and processes e. New legislative or regulatory requirements f. Availability of support and funding for the right training, for the right person, in the right place, at the right time

11. For further information, the SSA for the Bioscience sector has identified the key drivers/ influencers on skills requirements: a. Improve sector image and attractiveness b. Achieve a top-quality workforce c. Enhance leadership and entrepreneurship d. Improve employer engagement through effective regional networks and clusters

12. The impact of these drivers can be categorised under key themes for engineering skills needs in the future:

a. Leadership and management skills — both a driver for demand (in that properly skilled managers see the benefit of training and development for their employees in the context of their business strategy, and also are able to make informed demands of the training landscape) and a skill requirement in itself (to enable managers to manage their business effectively).

b. Process Improvement, Lean techniques, Productivity and Competitiveness — to compete in a global economy, to survive, grow and sustain their position, engineering companies need to engage with tools and strategies for quality products, high productivity and excellent customer service. Some engineering sectors (such as automotive and aerospace) are already benefiting from substantial gains in productivity through lean techniques, while others (such as metals industry and mechanical engineering sectors) are less well advanced. Reducing New Product and Process Implementation (NPPDI) time enables companies to move swiftly to take advantage of market opportunities. This is essential to support future

innovation — creating a “continuum of innovation”, which enables successful ideas to be created through “blue sky” thinking of innovators, developed into

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practical solutions by engineers, and then implemented effectively and efficiently by technicians and skilled craftspeople. It also enables innovation to be a “whole company” ethos, giving those involved throughout the engineering process the opportunity to contribute to a successful outcome in improving Quality, Cost and Delivery (QCD).

c. Technical skills - core technical, engineering, craft and production skills are particularly required to meet the future needs of engineering. Current hard to fill vacancies are concentrated in these roles. One of the key means to address these shortages will be expansion of the apprenticeship programme to enable more companies to take more people to this high level of competence and understanding. The supply of graduates, and graduate level skills (including vocational and workbased learning at high levels) play an increasing part in company requirements. Companies also need to be able to reskill and upskill their existing workforce in new areas of technologies and processes. Through all these high level technical skills, more practical innovation, effective research and development, and better public understanding of the value of engineering will be possible. This also leads to easier recruitment and workforce planning (point e below).

d. Supply chain management — the particular skills required to enable a company to both manage their suppliers, and to play their own part in the chain of activity necessary in a successful engineering process.

e. Strategic workforce recruitment and development — relating to activities to improve the supply of young people coming into the sector, and also the ability of companies to plan their skill needs more successfully, articulating these needs in time for the learning landscape of brokers, providers, and funding bodies to respond.

Addressing the Engineering Skills Need 13. Semta believes that many of the future needs of the engineering industry can be met by a combination of activity focused on the following three areas:

a. Higher level skills supply — making apprentices, graduates, and management training the core “offer” for engineering firms, and making engineering the career of choice for the right people.

b. Raising demand for and understanding of skills — giving managers the tools and skills to plan strategically for their company’s future and its future skill needs.

c. Provision and activity to support small firms — recognising the particular barriers to engagement and issues faced by small firms, and “flexing” provision and support to address this.

Higher level skills supply 14. Linked to innovation, technological change, globalisation, and the changing economic profile of the UK, is the specific need for higher level skills. As the level of technological penetration in the sector increases, so too does demand for technical skills, and the ability to apply engineering principles in an practical environment. This has implications both for employers wishing to train staff in- house, and for the education and training provider system which prepares people to enter the sector. In particular, the following areas have been identified for

251 action: a. Advanced Apprenticeships — engineering has a strong tradition of apprenticeship, embedded in its historical need for high levels of practical skills which cannot be learned solely in the classroom. Advanced Apprenticeship (at Level 3), and the new Higher Engineering Apprenticeship (incorporating a Foundation Degree, work-based learning at degree-level, and Key Skills to a high level) are key programmes to address the current and future needs of industry. The Government’s recent announcements and consultation paper on apprenticeships, and the CSR/PSA targets relating specifically to increasing successful apprenticeship completion, have raised the profile of apprenticeships even higher. While we have some concerns about the proposed changes to apprenticeships, and the creation of the National Apprenticeship Service, there is no doubt that high quality work- based programmes have for too long failed to receive the same attention as academic programmes. There are also some potential issues around the expansion of apprenticeship, even in the engineering sector, such as the need to provide suitable skilled mentors and in-work support. b. Adult up-skilling and re-skilling at Level 3 and above — of significant importance to the engineering sector is the ability to access programmes which enable existing employees to refresh their skills, and increase their knowledge. A consequence of technological change is the redundancy of some “old” technical skills and the need for new, higher level expertise. Engineering companies want to bring existing employees up to the necessary standard to enable them to compete in modern markets, which requires flexible training provision (to accommodate individuals already in work) and appropriate funding (to enable delivery of relevant qualifications and programmes, regardless of the individual’s prior level of attainment in another field). c. Graduate skills and supply — some sub-sectors of engineering, such as aerospace, have significant requirements for graduate level employees. The wider knowledge economy in the UK will be driven by innovation in research and development, particularly at graduate level and above. The need for technical skills at all levels is linked directly to the “blue skies” thinking and energy which comes through higher education. Employers are concerned that graduates in engineering subjects lack employability skills and need work experience to acquire lean, project management, and team leadership skills. A more integrated graduate programme would mean graduates could contribute to company performance more quickly (a role for Higher Education). There is also a strong expectation that graduates will continue to develop their technical capability, particularly in the use of complex, high integrity, safety critical systems (a role for professional institutions and HE, as well as employers). d. Management and leadership skills —particularly in small firms, enabling senior employees to improve their personal, managerial, and technical skills leads to companies being better prepared to take advantage of opportunities, and to address issues in a proactive and effective way. Better management and leadership also leads to better training in the wider workforce, as managers are more enthusiastic and informed about the benefits of training for all. e. Inspiring young people —engineering still suffers from a number of issues relating to the supply of young people interested in joining the sector, and with the necessary prior learning to access engineering courses. This is due to:

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i) science and mathematics teaching in schools, which is still failing to prepare or inspire young people for further study. Teachers need support to develop and deliver an exciting curriculum, which relates the wider subjects to “real world” —teacher placements in industry can play a key role in this.

ii) continuing concerns over bias in careers guidance128, and partly due to a general impression that engineering is either for the very brightest students only (where many other professions compete), or the very weakest. Semta is hopeful that the Young Apprenticeship in Engineering will continue to grow, as this has demonstrated clear progression of appropriate and enthusiastic young people into highly skilled programmes. We are also anticipating strong supply into higher technical engineering study from the Diploma in Engineering in England.

Raising demand for and understanding of skills 15. Semta undertook a brokerage project in 2005-2006, which enabled companies to access expert guidance in strategic business planning, leading to more informed demand for training. The success of this project now forms the basis of Semta’s proposed Sector Compact, which is currently under development in England. During the project, Semta (with partners) engaged with and provided advice and signposting to 600 mainly small and medium-sized companies. Companies were offered the opportunity to discuss four tools, all relating to training, and ranging from those involving extensive strategic business planning to a relatively “light touch” training needs analysis (TNA). The companies contacted were just as interested in those tools which took them a “step further” than simply identifying current skills requirements in terms of business planning, as they were in the TNA tool which was relatively “non-invasive”.

16. It underlines the need, and desire, for engineering companies to have specialist help in establishing wider business goals, which then feeds the demand for skills, and understanding of how those skills will contribute to the company’s future productivity and profitability. Semta is proposing through its Skills Compact that it act as the “gateway” for this specialist help, referring companies to others such as Train to Gain brokers, the Manufacturing Advisory Service, Business Link, and specialist productivity and competitiveness advisors.

17. Given the strongly articulated need for management and leadership skills to enable engineering companies to be successful, it is important that this specialist help is credible with company managers. It is possible that some key skill gaps identified will relate to areas of management competence, so the expertise and credibility of the advisor is essential.

18. Semta firmly believes that more sector specialist “intervention” will help

128 Semta was involved in research in 2004 which demonstrated the bias of careers information, advice and guidance for engineering apprentices — two-thirds were advised by their teachers to remain in fulltime education, almost all to study ‘A’ Levels. Only 19% of the Advanced Apprentices had been advised at school to apply for an apprenticeship and, when asked how much information they had been given on apprenticeships1 83% said “not very much” or “none at all” (DfES Research Report 519)

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companies take a more strategic view of training, rather than simply responding to initiatives which offer “free training”. When companies do training to meet a wider business target, and align that training with strategic objectives, they are more likely to value that training, and gain from it. Training which is random, ad hoc, and picked from a narrow “menu” of provision, is unlikely to have the desired impact.

19. Such interventions also raise demand for skills by highlighting potential problem areas (such as an ageing workforce) or new markets (requiring new skills). Enabling companies to take a strategic view of their business’s direction allows for more close linkage between training and the “bottom line”, the key driver for demand in many firms.

Provision and activity to support small firms 20. Within Semta’s British “footprint” of engineering companies (which include Basic Metals, Metal Products, Wholesale Metals & Scrap, Mechanical, Electrical, Electronics, Automotive, Marine, Aerospace, and Other Transport), 76% of companies have fewer than ten employees, and 94% have fewer than 50 employees129. This goes some way to explaining the disappointing level of penetration of initiatives, such as Train to Gain, in manufacturing as a wider sector.

21. Of course, the proportion of individuals in the engineering sector employed in small firms is significantly smaller, with 13% employed in companies with fewer than ten employees, and 35% employed in companies with fewer than 50 employees. However, Semta believes that engaging with small firms remains a key area for future skills development.

22. The Semta brokerage project detailed above shows the appetite among smaller firms for specialist, sectorally expert “brokerage” to help them navigate through the processes, tools, and support available. Semta is also currently working with the Learning and Skills Council to support Train to Gain brokers with their engagement targets, by offering specialist support, in three regions.

23. While Train to Gain has clearly had an impact in terms of bringing flexible training provision into small firms (a key concern of small firms is the release of individuals for off-the-job training, so training delivered outside normal working hours, and/or at the employers’ premises is often necessary), too often the “offer” was initially interpreted in ways which did not reflect the needs of small firms. For example, in response to the wider sector demand, Business-Improvement Techniques was commonly offered to engineering companies through Train to Gain (linked to the specific and articulated need for process improvement and lean production in the first Semta SSA). However, small firms were initially more interested in raising the specific technical skills of a few employees, before taking on the more holistic approach of Business-Improvement. While these restrictions have now been resolved, they illustrate the danger of not considering the needs of small firms when seeking to improve skill levels.

24. Through specialist brokerage, which then gives the company confidence to take up further support, small companies can more fully participate in the many effective and commercially proven initiatives which are available.

25. In England, the role of the National Skills Academy for Manufacturing in

129 Source: ABI 2006

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improving and assuring the quality of training provision for manufacturing companies, is also key here. Confidence in delivery is of paramount importance to small firms, before they are willing to commit to release staff or funds for training. Linked to this is the Sector Skills Council (550) role in the reform and development of vocational qualifications, and funding linked to this. The increased flexibility of funded learning through the Qualifications and Credit Framework is welcome, but must be quality assured by SSCs to ensure the system of units and combinations does not become too complex for small (or large) employers to engage with, and that all the elements of the Framework are appropriately linked to the National Occupational Standards which large and small employers have worked with SSCs to create.

26. Group Training Associations (GTAs) have historically played an important part in meeting the needs of small firms, particularly around apprenticeship delivery and support. By relieving small firms of the bureaucratic burdens inherent in funding and management of apprenticeship schemes, and by providing small firms with “economies of scale” in other training provision, GTAs have continually proved their value in engineering.

The Role of Key Bodies

Sector Skills Councils 27. Sector Skills Councils have a key role in all the areas identified for action above. The findings of the Leitch Review, and the government’s subsequent response and current reforms of the Skills for Business Network and Sector Skills Development Agency, underline the value placed on SSCs by many employers, and the need for consistency in quality for those sectors where SSCs are not yet achieving the appropriate impact. In order to do this, SSCs must be appropriately resourced to deliver on their (soon to be refined and strengthened) role.

28. Through appropriate government support, Semta and the other SSCs in the engineering sector will enthusiastically enhance their activity in the key areas identified - ensuring that the supply of skills and vocational qualifications is driven by employers; raising employer ambition and investment in skills; and articulating the future skill needs of their sector.

29. Semta is already fully engaged with all these activities, and is confident that further development of the SSC network will enable us to deliver to the new standard.

Government and Funding Bodies 30. Approaching policy and funding in a flexible way, and enabling providers and SSCs to have the necessary impact in their support for engineering companies, will be the key requirement of government and funding bodies. SSCs should have direct access to more funding in order to directly support employers in their sectors.

31. Continuing support for initiatives such as the Manufacturing Advisory Service, which have demonstrated their impact on companies in the sector, and the National Skills Academy for Manufacturing, which is addressing the need for high quality engineering training provision through a regional model, is also

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essential.

32. Continuing support for Group Training Associations (as proposed in the recent Apprenticeships consultation) is also necessary to ensure small firms are able to benefit from the growth in apprenticeship and adult training.

Higher Education and Professional Institutions 33. As the skill requirements for the engineering sector increase in terms of level and complexity, so the role of Higher Education and Professional Institutions will grow. Many Higher Education Institutions are already closely engaged with employers in terms of course development and delivery, but pressure will continue to grow on HEIs to look beyond the “typical” student profile (A level entry at age 18 onto a full time course) to improve provision to the non-typical student (older, with non-academic qualifications and experience, wanting part- time and distance learning, and short courses which build “credits”).

34. The needs of engineering companies to keep their professional engineering staff at the forefront of technology and innovation will mean a continued requirement for relevant Continuing Professional Development (CPD), a particular strength of professional institutions and bodies in the sector.

Semta’s Recommendations 35. Continued and enhanced flexibility for funding of provision, particularly to suit small firms, for those companies wishing to reskill and upskill existing employees, and those wishing to offer training at higher levels. The government’s ongoing strategy of returning unemployed adults to the workplace, and upskilling current adult employees, means that more support for people aged 19+ to undertake Level 2, 3 and 4 qualifications is needed. More and better work with schools, colleges, and careers advisers to improve the credibility of vocational skills (and careers which utilise them) with young people.

36. More help for companies to plan their training needs in a more strategic way, using tools such as Semta’s Business to Skills Model, the Sector Workforce Planning Tool, and Six Stage Assessment Tool.

37. More support for sectoral experts to help companies use the tools identified to ensure that training and development undertaken by companies delivers a measurable business benefit.

Semta March 2008

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Memorandum 39

Submission from UKRC for Women in SET

Executive Summary 1. About the UKRC for Women in Science, Engineering and Technology (SET) 130 Launched in September 2004, the UKRC is funded by the Department for Innovation, Universities and Skills (DIUS) and is the Government’s lead organisation for the provision of advice, services and policy consultation regarding the under- representation of women in SET. It was a key recommendation of the Government's 2003 Strategy for Women in SET following the SET Fair Report in 2002. 2. Key Messages on Gender and Engineering from the UKRC

2.1 Increase women’s participation in engineering to improve engineering business success and address the skills shortage Widespread and solidly founded equality and diversity practices could have a direct impact on the bottom line for the business of engineering. Evidence from Catalyst131 and the Sunday Times 100 Best Companies to Work For show a direct correlation between embracing diversity and effective company performance. It is in the direct interests of the engineering sector to increase the numbers of women. Productivity and client satisfaction go hand in hand with fairness - this is the clear business case. In particular, we recommend that the RAEng and other lead bodies together set targets relating to the participation of women at all levels for the engineering industry.

2.2 Build an inclusive and welcoming culture that embraces difference: change the way engineering is gendered and culturally male dominated All stakeholders must take responsibility for increasing their understanding of the way engineering is gendered and unfair to women as a group. Action on workplace culture will help create engineering environments that are no longer ‘male preserves…(or)…male bastions’132, but are welcoming, comfortable and unproblematic for diverse women and men.

2.3 Step up and improve workplace leadership and implementation! Men who currently predominate in leadership in engineering have to step up and drive the improvements on women’s representation. It cannot be the responsibility of individual women or even women as a group. Good leadership on under representation creates workplaces with good employment and diversity practice, and positive cultures. Leaders can apply the lessons learnt from research and practice and implement best practice. They can increase positive change in cultures, in gender and diversity, in HR policy and in engineering education and career development.

130 www.ukrc4setwomen.org 131 http://www.catalyst.org/ 132 Ian Pearson MP, Minister of State for Science and Innovation - speech to UKRC Annual Conference March 2008.

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2.4 Take action on two fronts – increase supply and improve the workplace Taking positive steps in the workplace now is an essential complement to other initiatives which aim to increase the supply of girls and women to engineering – a holistic and integrated approach is needed. 3. Recommendations

3.1 To Engineering sector: 1. Act upon UKRC’s key messages on gender and engineering, with support from the UKRC 2. Acknowledge and address the need for an inclusive diverse workforce and transform male dominated cultures, using research and the expertise of UKRC and others to identify and implement solutions. 3. Set visible targets through the RAEng and other industry led bodies relating to women’s participation at all levels. Participate in the UKRC’s visible commitment (CEO Charter) and accreditation (for example, Quality Mark) schemes. 4. Provide evidence that engineering employers, and research and professional bodies value women and men equally. 5. Offer flexible working arrangements. 6. Raise participation rates of STEM qualified women in relation to the overall entry rates of women into engineering careers and their proportion of the total engineering workforce. This will involve having gender disaggregated workforce figures. 7. Improve retention and return rates to STEM employment by women and reduce the overall attrition of STEM qualified women significantly. 8. Integrate equality and diversity actions with performance measures of corporate innovation. 9. Include data on gender and diversity in annual and corporate social responsibility reports. 10. Take action to ensure 25% of new placements on boards are women and a significant increase of women on engineering decision making bodies133. 11. Profile women engineers for visibility and representation in the media.

3.2 To Education sector 1. Act upon UKRC’s key messages on gender and engineering with the support of the UKRC. 2. Enrichment, STEM choice and careers and other initiatives: Implement the gender and other equality duties with explicit gender and equality schemes, properly resourced, in all relevant institutions and environments. Take positive action to encourage girls from all backgrounds into subjects and activities relating to engineering, ensuring these are inclusive and benefit from best practice. (For instance, the gender mentor role in the London Engineering project that has been provided by the UKRC, and forthcoming, from the STEM Choice and Careers Project).

133 Norway’s publicly listed firms have to achieve a quota of 40% women on their boards. As a result of legislation in 2003, the numbers have quadrupled in 5 years. All major companies have complied. http://news.bbc.co.uk/1/hi/business/7176879.stm (12 March 2008)

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3. Universities and education providers: Take initiatives to assist access and reshape Higher Education engineering structures and cultures, and set targets, in order to attract, retain and progress women in all areas as students, researchers or employees. Engineering departments should participate in the SWAN Charter accreditation and awards schemes. 4. Universities and education providers: Scrutinise engineering and STEM education itself; deliver inclusive courses, (including content, teaching & learning methods, assessment & learning environment). Make use of expertise from the UKRC and its partners, and policy and practice messages from research. 5. Professional Institutes and other stakeholders: Ensure a gender analysis and impact assessment of all initiatives, to increase women’s membership and engage girls. Continue to use the UKRC’s support and expertise. 6. Resource and enable external champions and experts for gender equality in STEM like UKRC, the WISE Campaign and others, to advise and deliver.

3.3 To Government: 1. Act upon UKRC’s key messages on gender and engineering with support from the UKRC. 2. Lead by promoting the business case for action on inequality in SET to key organisations like the CBI, the IoD and other high level intermediary bodies. 3. Set targets and monitor progress to drive the achievement of equality; for example: the numbers of women on boards: add gender analysis to the R and D scorecard. 4. Enforce the Gender Equality Duty to increase the numbers of girls women studying towards and working in engineering. 5. Promote the need for business and education to address workplace culture, and engage with the UKRC’s work with major organisations and intermediary bodies, and support for business and education. 6. Sustain the impact of the Women and Work Commission and lead a national debate about gender roles, gender stereotyping and occupational segregation. 7. Take action on two fronts – focussing both on supply of girls and women in schools and universities but also change in the workplace to attract, retain and reward/progress women. 8. Use public procurement to drive improvements in equality and diversity practices within engineering. Ensure engineers are properly rewarded to encourage them stay within the profession. 9. Continue to promote all the key indicators of change identified by the UKRC. 10. Listen to and support women in engineering directly and indirectly through the UKRC, and through women’s networks (e.g. Women in Engineering, British Computing Society, and women in membership of professional institutes).

Background to the Submission from the UKRC to the Main Inquiry on Engineering 4. Some facts and figures

4.1 The skills shortage has a gender dimension There is a strong correlation generally between skills shortages and sectors where men predominate, and a decline in many EU countries in the numbers of engineering graduates. The STEM skills shortage also requires a class and ethnicity analysis, with

259 a focus on the intersection of gender and class. SEMTA has estimated that 50,000 new jobs are needed in engineering by 2012. The UK is failing to keep pace with an increased demand for engineers, and while total university admissions rose by 40% in the decade between 1994 and 2004, the number of students starting engineering degrees each year, at least in this period, remained constant at 24,500 (RAEng 2007).

4.2 The numbers of women in engineering and attrition

• The numbers of women in engineering have increased but not sufficiently to close the engineering skills gap. • 80% of girls have been found to be potentially interested in non- traditional careers (EOC, 2005). • The extremely low proportion of female engineering undergraduates does not reflect a lack of ability, since girls across all ethnic groups generally outperform boys at science GCSE and ‘A’ Level (DfES 2005/06). http://www.ukrc4setwomen.org/html/projects-and- campaigns/london-engineering-project/ - _ftn3 • Girls’ interest in non-traditional areas does not translate in practice. Around two thirds of women work in only four (more traditional) occupational areas (QLFS Jan-Mar 07). • There were 15,400 female Higher Education (HE) engineering* students (13.1%) and 102,405 male students (86.9%) in the UK, in 2002/03 (HESA 2004). • There were 16,315 female HE engineering students (13.7%) and 102,840 male students (86.3%) in the UK, in 2005/06. Figures vary widely by discipline (HESA 2007). • This suggests that the number of female students in Engineering increased by 5.9% (915) and that of male students by 0.4% (435) between 2002/03 and 2005/6. • It is well known that more women than men with qualifications in SET are not in SET related employment: In early 2007, 71% of women with SET degrees were not employed in SET, compared with 42% of men (QLFS Jan-Mar 07). • Women are not taking up engineering careers after qualifying in great enough numbers. In 2005/6, 13.7% of engineering students in HE were women but by early 2007, only 6.2% of the engineering professional workforce were women. By contrast 86.3% of engineering students in HE are male and men made up 93.8% of the engineering workforce. (HESA 2007 and QLFS Jan-Mar 07). • The increase in the numbers of people in HE and the absolute increase of women in engineering in HE has not led to an increase in the percentage of women doing engineering in relation to other non SET subjects. Women in engineering subjects made up 1.2% of the total in 2003/4 and 2005/6. The percentage of women in non SET subjects remained the same, while in Science and Technology it increased very slightly. Subject choice is still markedly gender segregated (HESA 2004 and 2007). • There were 21,492 female engineering professionals (5.3%) and 384,234 male engineering professionals (94.7%) in the UK in early 2005 (QFLS Jan - Mar 05).

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• By early 2007, there were 27,862 female engineering professionals (6.2% of the total) and 421,269 male engineering professionals (93.8%) in the UK. (QLFS Jan–Mar 07). • These changes suggest that over a two year period, the number of female engineering professionals has gone up by 29.6% (a 6,370 increase) whereas that of their male counterparts by 9.6% (a 37,035 increase).134 • The rate of change for women is higher but the lower base for women means the absolute increase in numbers of women is still a fraction of the increase for men, and the overall percentage of women in the engineering workforce remains very low. • There is emerging evidence that people, particularly women, might be motivated and inspired into engineering and SET by the challenges of climate change, the environment and sustainability (Forum for the Future survey 2007).

4.3 Retention and Progression

• While the number of women professionals may be gradually increasing, there is concern about women engineers’ progression and their retention, including return after career breaks. • Engineering occupations have the highest “quit rate” for women of all occupations where they work. Skilled and experienced women leave disproportionately to men. (Purcell & Elias 2004). • Research and organisational development work with SET companies and the HE sector has repeatedly revealed educational and occupational cultures that favours white men, a lack of work life balance or family friendly policies, and women perceived as a cost burden. • The availability of part time working is rare at senior levels and this severely disadvantages progression for women in UK. • Women’s disadvantage is further exacerbated by a lack of senior role models and access to power networks, and the need for mentors and relevant careers guidance.

5. Cultures, attitudes and experiences

5.1 Attitude survey The male engineer is still seen as the norm. In 2006, the UKRC joined forces with EPCglobal to conduct a survey of 2191 engineers, 28% of which were women. A surprisingly high proportion (30%) of all engineers didn’t think women perform well in all fields and at all seniorities. A very disappointing 38% of all engineers surveyed didn’t think it mattered if women were under represented in engineering.

5.2 On a positive note On a positive note other research found that in practice the stereotypes of engineering don’t match the reality: men and women alike are excited by technology, all engineers

134 In this analysis, women aged 16 to 59 and men aged 16 to 64 were included.

261 need to be socially skilled, many “types” of men and women are engineers, engineering is technical and social. (Faulkner, 2006)

5.3 The dripping tap effect Nevertheless, attitudes reflected in the UKRC EPCGlobal survey reinforce the need for changes in policy and practice to be accompanied by transformations of workplace cultures that need to counter the ‘dripping tap effect’, which subtly and not so subtly undermines women in the workplace. (Faulkner, 2006)

5.4 Gender relations make a difference Both being a woman and being in a minority make a difference to women engineers. Whenever we move away from the cultural norm we upset accepted orders and meanings.

The research on women in engineering shows various ways of understanding and responding to the implications of gendered relations and minority status for women. The reactions and experiences of women are quite diverse themselves135. For instance, younger women engineers as a group seem to underestimate the impact and existence of gender inequality and also have concerns about positive action. Some women even display coping mechanisms that essentially reject the idea or possibility of disadvantage or discrimination (UKRC Research Briefing: Encounters with Engineering). On the other hand, research has linked a heightened consciousness of gender to increases in confidence amongst women (Herring 2008). Finally, there is good evidence that organisations with strong leadership on gender equality can create a positive culture for women (Faulkner 2007).

In any case, for individual women, many engineering environments can feel like no win situations. It takes a lot of individual effort to decide how to ‘play’ it:

“I felt like they only employed me because I was a girl and yet they didn’t want me to act feminine”. (Quoted by Faulkner, 2006)

This comment captures some of the challenge: society’s ultimate ambivalence towards femininity and women, and the mismatch between ideas of what counts as feminine and who can be a good engineer.

There is also an in/visibility paradox which faces women engineers – they are so visible as women they can become invisible as engineers, given the norm has been a male engineer.

“Even really experienced women engineers have to (re)establish their engineering credentials every time they encounter a new colleague or associate – who may otherwise assume they are a secretary!” (UKRC Research Briefing: Gadget Girls and Boys with their Toys)

135 See references para 8

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5.6 Critical mass v. culture change Research on women in engineering has also examined critical mass and organisational change. The conclusion is that substantial change requires more than an increase in the numbers of women, which can still leave intact gendered power relations and a culture of dominant masculinity. Culture change must precede a successful recruitment and retention drive, to create engineering environments and opportunities where diverse women (and men) can thrive as well as survive. By necessity, this requires men in engineering to take a keener interest in gender equality. (Bagilhole 2006, Carter & Kirkup 1990) 6. What UKRC for Women in SET is doing

6.1 Services to Businesses and Organisations

UKRC works with engineering businesses to encourage commitments to good practice through the CEO Charter for Women in Science, Engineering and Technology. UKRC rewards best practice through the UKRC Quality Mark, and the MX Award for Diversity and Inclusion (Manufacturing Sector). UKRC also works through intermediary and influencing bodies relevant to engineering including the professional institutes, the sector skills councils (e.g. Summitskills, GOskills and SEMTA) and the research councils. The SSC introduce the UKRC to companies and organisations, promote the need to undertake action on under representation and work on joint projects with the UKRC.

Over the past 4 years UKRC and its partners have had contact with 135 engineering companies, 46 of which were SMEs. It has undertaken 11 Cultural Analysis Tool exercises (CAT) with engineering companies or organisations that employ engineers. For example, Halcrow has now rolled out CATs across the country; they actively highlight this work on equality and diversity as evidence when tendering for business. These positive action interventions have resulted in better practice, increases in the numbers of women employed and improved retention.

Of the 20 companies that have signed the CEO Charter, seven of them are engineering companies. One of the eight MX Award entrants was from engineering. One of the seven entrants for the Quality Mark was from engineering. 136

The UKRC also works with the key professional bodies to develop inclusive and positive practices and services to recruit, retain and involve women members, and to address women’s under-representation. We have helped with reviews of their overall policies, organisational practices and decision-making structures to enable more women to take active roles, gain profile and feel a sense of belonging within their professional body.

We have good links with key institutes including the Institute of Civil Engineering, IET, Royal Institution of Chartered Surveyors and the Royal Academy of Engineering. For example, the UKRC is working the RAEng on their Diversity Campaign, to mainstream good practice and positively impact on membership and culture. UKRC has also developed successful mentoring schemes and other support, for example with the British Pharmacological Society and the Geological Society.

136 Figures collated early March 2008: numbers increasing monthly.

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6.2 Work to influence education UKRC works with HE to encourage commitments to good practice through the Athena SWAN Charter for HEI’s (with the Equality Challenge Unit) and the Athena SWAN Awards which recognise good diversity and equality practice.

Between 2005 and 2008, UKRC’s European funded JIVE partnership undertook projects to increase the numbers of girls undertaking work experience in non traditional areas (e.g. Wider Horizons), and also training and CPD for teachers and STEM enrichment professionals. The lessons and expertise are relevant for subject choice, careers advice and the progression of girls in STEM.

The London Engineering Project (LEP), a pilot of the National Engineering Programme (NEP), led by the Royal Academy of Engineering (RAE), aimed to increase and widen participation in engineering higher education. The UKRC acted as a gender mentor to the LEP, delivering advice, training and hands-on support to ensure that all the activities, resources, promotional materials and recruitment strategies were inclusive to girls. The Gender Mentor role also gave feedback on all partners’ practice, including the industrial partners and wider stakeholders. All LEP elements were implemented with full understanding of their impact on girls and boys. Most LEP activities had least 50 percent female participation.

UKRC also worked with the LEP’s HE partners to help develop inclusive engineering courses through workshops, highlighting current research and good practice, advising on critical success factors and co-ordinating the development of a checklist and guidance. The approach shifted focus away from the recruitment of women to a scrutiny of engineering education itself. It addressed the way to make a difference with an inclusive engineering course, (through content, teaching & learning methods, assessment & learning environment).

The UKRC, through JIVE, has considerable experience working within further education and the vocational skills sector, especially construction, which links closely with engineering. Since 1999, it has designed and refined interventions with the FE sector to raise awareness of gender diversity and support organisations to develop a gender perspective in their service delivery. Bespoke CPD training for FE lecturers and the Cultural Analysis Tool (CAT) helped colleges ensure the culture within science, engineering, construction and technology departments was welcoming and supportive of women students. This work has had an important impact on increasing the participation of women in the field of construction in a number of regions of the UK, and has positive industry support.

6. 4 Services to women As well as services in relation to mentoring, the UKRC’s Return Campaign reached 700 women with qualifications in SET who were out of the SET workforce, and 400 of these have returned to employment or training/education. Businesses and individual women engineers have benefited, for instance with Thames Water and Astra

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Zeneca137 and there are several others. Here flexibility is the key on two levels: women with caring responsibilities often need flexible hours; and HR policy and practice needs to be flexible to accommodate the needs of returners. Sometimes that is easier for an SME than a major company. Placements have been achieved where there is an internal champion but would be assisted by a more “formalised flexibility” in the approach to employing returners. UKRC’s role is to convince business of the potential of recruiting returners and our experience is that this can be very positive, where we can match returners with the right engineering skills to companies with vacancies.

UKRC also works with women and SET organisations active in this area, for example, the WISE Campaign, the Women’s Engineering Society (WES) and the British Computing Society (BCS). Through its work with all the stakeholders and individual women, the UKRC is able to identify issues affecting women engineers. For example, do women’s career patterns and career breaks militate against achieving chartered status? This is a structural matter, which should be addressed within the support and awarding arrangements so as to avoid disadvantaging women.

6.5 Evidenced based practice and policy To create an evidence base, UKRC commissions or promotes research studies/surveys to increase understanding of the scale of the problem in engineering and identify solutions. For example, the first experiences of women students on work placements were reported in UKRC Research Briefing: Encounters with Engineering. As well as the need for “gender oriented support”, the findings suggested a range of generic action would improve engineering education and facilitate the transition to work and benefit women and men (e.g. the development of transparent career pathways and structured training programmes).

In 2008, UKRC published several research reports and briefings on media representations of women in SET. These have wide relevance for a number of stakeholders concerned with the gendered cultures of engineering, images of engineering and attracting and retaining women.

The UKRC website includes a number of case studies of companies which highlight elements of good practice in relation to gender equality and women’s position as engineers. Company case studies include Rolls Royce, National Grid, ABB, BT, and Transport for London.

March 2008

137 The UKRC website contains case studies of women engineers at various stages of their careers http://www.ukrc4setwomen.org/html/resources/personal/stories/

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Memorandum 40

Submission from Construction Skills

ConstructionSkills: our purpose 1.1 ConstructionSkills is the Sector Skills Council for the construction industry – a partnership between CITB-ConstructionSkills, the Construction Industry Council and CITB Northern Ireland. It is UK-wide and represents the whole industry from professional consultancies to major contractors and SMEs. Established as a Sector Skills Council in 2003, ConstructionSkills is working to deliver a safe, professional and fully qualified construction workforce.

ConstructionSkills has a leading role in: Providing sector skills intelligence Defining the skills strategy for the sector – including a sector qualifications strategy Increasing employer engagement in skills and training Skills and training brokerage Facilitating and leading skills and training delivery

1.2 ConstructionSkills provides assistance in all aspects of recruiting, training and qualifying the construction workforce across the UK. It works with partners in industry and government to improve the competitiveness of the industry as a whole, representing industry before Government to ensure it has fit- for-purpose qualifications, training and funding.

1.3 CITB-ConstructionSkills is the construction industry’s Industry Training Board and has levy raising powers. It helps the industry in England, Scotland and Wales in all aspects of recruiting, training and qualifying the construction workforce, and supports this by providing CITB-ConstructionSkills Grant.

1.4 The Construction Industry Council (CIC) is the representative forum for the professional bodies, research organisations and specialist business associations in the construction industry. It provides a single voice for professionals in all sectors of the built environment through its collective membership of 350,000 individual professionals and 25,000 firms of construction consultants.

About the Construction Industry 2.0 Over 2.5million people currently work in the construction industry, and this is expected to rise to around 2.8million by 2012. According to the latest findings from the Construction Skills Network, industry will require 88,400 new recruits each year for the next five years as activity peaks in 2011. Construction is a fragmented industry that needs to significantly improve its performance in areas such as health and safety, quality and cost over-runs if it is to compete in the long term. ConstructionSkills is giving the industry the business skills and support it needs to grow, and to improve its profitability. Part of its Sector Skills Agreement, established in 2003 with government and industry, is to increase the number of graduate recruits entering industry

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About the Sector 3.0 There are currently 27,950 professional firms in the UK and UK professional services firms earned a total of £13.9 billion in the UK in 2005/6 including £2.5 billion from work overseas. Skills shortages are affecting all levels across the UK Construction Professional Services (CPS), however the skills gap is most pronounced in building services engineering firms, with 45% of firms reporting a gap. This finding comes from the Professional Services Survey which was launched in December 2007 by the Construction Industry Council.

The CIC research also found that: Engineering Services firms accounted for 28% of all work Engineering firms generate 52% of all income and employ 17% of all staff Building Services engineering firms generate 7% of all income

These findings are based upon two latest CIC surveys; the UK Construction Professional Services Survey and the Built Environment Professional Skills Survey, which analysed 800 CPS firms employing 45,000 fulltime employees and 357 CPS firms employing 7630 fulltime employees respectively.

CIC research into the Construction Professional Services (CPS) sector has been repeated on a regular basis since 1995.

Committee Questions

4.0 What is the current state of the engineering skills base in the UK, including the supply of engineers and issues of diversity?

4.1 The UK Construction Professional Services sector – which includes professions such as engineering, architecture and surveying - currently employs 270,000 people, and requires 12,000 competent new professionals (of which just over 2000 are professional engineers) to enter the industry every year to meet current demand. Added pressure is being placed on the industry because 20% of current CPS professionals could retire in the next 10 years. Parallel research by CIC revealed that that 70% of Construction Professional Services firms believe that a shortage of recruits is the biggest problem facing the £13.9 billion industry. A worrying 74% of CPS firms have found that job applicants are likely to be lacking the necessary technical skills.

4.2 In 1994, around 12,500 young people applied for construction related degree courses, but this had dropped massively to around 8,000 by 2001. And although 65% of professional services consultancies are still experiencing difficulties in recruiting appropriately skilled staff, we have now seen a rise in the number of young people applying, indeed, 2006 year saw 11,000 opt for construction related degrees. UCAS figures released in January 2008 show that the number of students accepted onto all construction and built environment undergraduate courses in 2007 had risen by 5.8 percent from 2006 and civil engineering students increased by 10.3 per cent. Details of recruitment and training initiatives that are tackling these issues are highlighted in point 5.1 and 5.2.

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5.0 What are the roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering.

5.1 One of the priorities for ConstructionSkills is to help ensure an adequate supply of new recruits to the industry. The organization has a number of specific initiatives, but on a general level, works closely with industry, professional bodies (including WISE and ICE) and government to help address the issue.

5.2 Graduate Drive – Inspire Scholarships

Back in 2005, talk of skills shortages in the construction industry was widespread. Although skills gaps still exist today, we have made serious inroads to address this problem with initiatives like Inspire Scholarships which tackles, in particular, the problem of skills gaps in the management and professional ranks. It was designed to reverse the decline in the number of young people starting construction related degree courses seen in the 90’s (see point 4.2).

Inspire Scholarships are one of very few ways in which undergraduates can obtain extra funding as an incentive to choose construction and to help break down this barrier. And crucially, Inspire offers funding which does not need to be paid back. We want construction to be an industry in which students see employers invest in them from day one. A sum of up to £9,000 is available to those who successfully apply for an Inspire Scholarship with half of this grant coming from ConstructionSkills and the other half being provided by the sponsoring company. Scholars are carefully matched with relevant employers and are then provided with an invaluable opportunity to undertake a ten-week work placement with their sponsoring company in their summer break.

Inspire Works in partnership with the Institute of Civil Engineers on its QUEST scheme, which offers grants to students applying for engineering courses. QUEST, which is supported by some of the industry’s largest employers, including McAlpine, Costain, and Atkins, has been in existence since 1977. By adding Inspire to the equation, ConstructionSkills has helped increase the funding for QUEST scholars, in recognition of the fact that both schemes have common aims, and that QUEST already has an established track record in attracting high caliber civil engineering applicants. We’re looking forward to meeting the challenge of generating support from employers in the professional sector for civil engineering scholars.

5.3 Recruitment Campaign - Positive Image

Since the late 90’s ConstructionSkills has run a successful recruitment campaign which has evolved year on year to help meet the current recruitment challenges facing the industry. Most recently, it has targeted women and ethnic minorities, particularly at graduate level, to highlight the range of construction careers on offer. Coupled with our work on Inspire scholarships it is both raising the profile of professional careers and supporting industry by actively guiding young people from non-traditional recruitment pools into a career they might not have thought appealing due to long standing perceptions of the construction industry.

5.4 Diversity – an opportunity to increase the graduate recruitment drive

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From May 2007, ConstructionSkills began providing a team of dedicated Equality advisors based in the North, the South and the Midlands. These dedicated diversity staff are able to offer help and support to Minority Ethnic candidates as they enter the industry with CV writing, interview technique tips and support during the job hunt process.

Starting in 2007 ConstructionSkills began extending its Construction Ambassador Programme to develop a Mentoring and Support scheme, to assist Black and Asian minority ethnic (BAAME) candidates in their early stages of employment, address any specific concerns that they might have and provide practical and emotional support to ensure that BAAME candidates do not feel isolated. The Construction Ambassador Mentoring & Support scheme will aim to assist BAAMEs of all ages, from 16+ to graduate level on entering the industry

The STEP programme is designed to assist employers in the recruitment of atypical recruits in order to create a more representative and effective workforce. Resources are offered to employers to enable them to fund ‘positive action events’ in universities that can enlighten organisations to the business benefits of employing non traditional recruits. The main role of the Equality Advisors will be to develop strategic links with key partners to assist with diversity initiatives - the supporting of BAAME and Female candidates as detailed will be a combined effort between Education Advisors, Modern Apprenticeship Officers and new regional hub recruitment desks.

5.5 Bridging Academia and Industry – Constructionarium

Helping to transform the Civil Engineering curriculum at undergraduate level, Constructionarium is a collaboration between academia and industry, which has been designed to recreate the appearance and atmosphere of working on a real large-scale civil engineering project. It is a unique higher education venture designed to address the current shortfall in practical construction and design expertise among graduates, and attract prospective graduates by offering a more practical hands-on degree. It is held at the National Construction College, the training division of ConstructionSkills, located in Bircham Newton in Norfolk, on a permanent two hectare site, which has been designed especially for the purpose of this event.

The scheme is designed to complement the existing theory exams. It links the theory and reality of construction, something that is often missing from the current course curricula, and puts into practice what students have learnt during their studies. The initiative was originally pioneered in a joint venture by Imperial College London, Expedition Engineering and John Doyle Construction. However, 2007 saw over 600 students, from seven different Universities, including Cambridge, working together with employees from 14 construction businesses, to take up the challenge of constructing scaled down versions of bridges, buildings, dams and civil engineering projects.

5.6 Support for Women in Science Engineering (WISE)

ConstructionSkills has supported WISE since 2000. WISE has been an invaluable resource for female role models, and as a network of women in science and engineering organisations acts as the forum for

269 good practice and strategic advice. ConstructionSkills’ Chief Executive, Peter Lobban, has been a member of the WISE Steering Committee since 2000 and helps ensure that information about WISE and its Directory of initiatives is disseminated to ConstructionSkills regional Education Teams. This has resulted in regional advisors using role models recommended by WISE in their Education activities and partnerships.

March 2008

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Memorandum 41

Submission from The Royal Academy of Engineering (RAE)

Summary of recommendations

1a) Engineers have expertise that is highly valuable to policymakers. We recommend that the committee consider ways to ensure that engineers are called on to advise Government on issues of significance to policy making, in particular, climate change.

1b) The importance of engineering to society is not always understood. We recommend that the committee consider how engineers can be supported in communicating better their contribution to society.

2a) We recommend that the committee consider how DIUS and BERR can encourage businesses to use engineering solutions to create better business models.

2b) ‘Open Innovation’ is essential to the UK’s success in innovation. The committee should consider how DIUS can promote open innovation.

3a) There is a pressing need to attract women into engineering education and to retain more women in engineering careers. The committee should consider what action can be taken to change the current situation.

3b) There is a pressing need to attract more young people in general to engineering education. The committee should consider whether the DCSF / DIUS STEM Programme is doing enough for the engineering and technology elements in STEM alongside what it clearly does for the science and maths elements. At university level, Lord Sainsbury’s recommendation for a review of engineering education should be taken up swiftly.

4a) Engineering research differs from pure science. The committee should consider how to ensure that engineering research is adequately funded and properly assessed, especially through any assessment criteria developed by HEFCE.

4b) The committee should consider how Government can stimulate UK R&D and knowledge transfer through its procurement strategies.

5a) Coordinated effort is required to raise the profile of engineering and to attract young people into engineering roles that are essential for the welfare of society. The committee should consider how to ensure that all of the sectors above work together to encourage young people of leadership potential to begin an engineering career.

5b) The Academy recommends the appointment of a Chief Engineer to ensure that engineers have input to policy formulation and that issues relating to engineering are dealt with by Government in a strategic way.

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1) The role of engineering and engineers in UK society

1.1 Suppose that an unknown and fatal virus swept the UK, rapidly killing off all who it affected. Suppose that the virus struck only professional engineers – but somehow spread through all engineers, from graduate and chartered engineers to engineering technicians. How would society cope with this sudden and tragic loss? Society, as it is now, would not cope at all, for without any engineers there would be:

- No clean water delivered to homes or businesses and no used water or sewage flushed away; - No public transport, from the tube to trains to international flights; - No telecommunications – no mobile phones or landlines, no television, radio or internet, generally not much fun; - No emergency services or health service, which rely on communications and on life-saving electronic devices; - No electronic payments – no salaries and no payment for goods or services; - No military vehicles or defence technologies to support and safeguard British troops on operations; - No gas or electricity to homes or business – the country would be in the dark (in fact, purely by virtue of this most of the above infrastructure would fail); - And there would be no energy production in the first place, therefore no electricity or gas to distribute.

1.2 It is quite clear just how crucial engineers are to society’s functioning. The UK, and every other developed society is highly dependent on engineered infrastructure and therefore dependent on engineers of all grades to design, construct and maintain the physical fabric that supports our quality of life. The UK infrastructure is engineered in such a way that it provides optimal services with as little waste as possible, meaning it is often required to function at close to capacity. Therefore, the input of engineers is needed constantly to ensure the reliability of infrastructure when patterns of demand change and even when it is threatened by accident or attack.

1.3 Engineers not only support the current quality of life in the UK, they offer promise for the future. Engineers have brought significant innovations in medical care – since engineers design and produce all manner of medical equipment and devices from robotic surgery equipment, to imaging devices for the brain and body, to replacement hips. They are the source of innovation in consumer electronics, from mobile phones to televisions and have brought about huge changes in the world of entertainment. We are currently in desperate need of sustainable solutions to energy production and of ways to cut emissions through increasingly energy efficient transport, buildings services and electronic goods. Engineers offer the best hope for these solutions; without engineers we have little promise of strategies to save us from a frightening future, and no hope of deploying those strategies.

1.4 It is clear then that engineers have an absolutely critical role in supporting current and shaping future society. Yet the perception of engineers in UK society does not match their role, nor does it match engineers’ perceptions of themselves. The success of engineering means that it is often taken for granted, and as a result engineers are themselves taken for granted and undervalued. Not only is their importance to society not recognized, but the nature of their role is not widely appreciated.138 The creative or innovative aspects of engineering are often

138 See The Royal Academy of Engineering and Engineering Technology Board Report ‘Public Attitudes to and Perceptions of Engineering and Engineers 2007’:

272 overlooked, yet engineers have applied their abilities to create devices and systems from ipods to the internet. In exploiting the possibilities of technology and science, engineers use their inventiveness to give us things we never imagined we needed but can no longer live without.

1.5 Of course it is uninteresting to hear engineers complain about a lack of recognition and better to take action to get the positive message across. This is, to a large extent, down to engineers themselves – engineers have an increasingly important role in communicating with society. Most importantly, they need to explain clearly and impartially the technical possibilities for dealing with problems like climate change so that society can choose the best solutions (for example, engineers should automatically be invited to contribute to bodies such as the Climate Change Committee in order to communicate just what engineering can do to address this critical problem, and to ensure that mooted solutions are technically and practically deliverable). Engineers need to engage better on the issues that grab society’s attention – and the Academy has taken steps in this direction by looking at engineering’s contribution to tackling issues like climate change, international poverty, and the impact of engineering on privacy139, as well as implementing a general public engagement strategy. Engineers have a great deal to contribute to public debate and policy development, and organizations like The Royal Academy of Engineering should be seen as a resource that Government can use. a) Engineers have expertise that is highly valuable to policymakers. We recommend that the committee consider ways to ensure that engineers are called on to advise Government on issues of significance to policy making, in particular, climate change. b) The importance of engineering to society is not always understood. We recommend that the committee consider how engineers can be supported in communicating better their contribution to society.

2) The role of engineering and engineers in UK's innovation drive

2.1 One of the main roles that engineering has in society is in creating wealth for UK plc and it does this through innovation. Often the role of engineering in innovation is not appreciated – for example, Google is one of the most significant successful innovations of our time and its success is based on engineering methods – from the application of algorithms to create the search function to the successful scaling up of the process using a large network of computers. This was all a matter of engineering, and it should be appreciated that lots of innovators are engineers as well as entrepreneurs.

2.2 Engineering is fundamental to innovation in many sectors. The recent Nesta report, Hidden Innovation, shows how engineering and technology are key to facilitating innovation in a wide variety of sectors – from the obvious examples of construction to less obvious areas like retail banking. Technology has been exploited to a significant degree in the banking sector to improve processes which in turn improve services. In the City innovation is supported by engineering in virtue of the vast computing power that supports modern trading and by the engineering http://www.raeng.org.uk/news/publications/list/reports/Public_Attitude_Perceptions_Engineering_Engi neers_2007.pdf 139 See Dilemmas of Privacy and Surveillance, published by The Royal Academy of Engineering in March 2007: http://www.raeng.org.uk/policy/reports/pdf/dilemmas_of_privacy_and_surveillance_report.pdf

273 graduates who chose to apply their specialised skills to careers in the financial sector.

2.3 Business and marketing innovations frequently depend on the results of engineering. The internet has supported new business models that have been proved successful in examples like Easyjet and Ryanair; and even Tesco’s Clubcard system, credited as key to its huge growth, is dependent on sophisticated databases made possible by engineering and exploited by marketers.

2.4 Advantages are available through even closer collaboration between engineering and business. For example, if a business considers the design of its offices and premises in terms of its overall business model, it will have to consider the lifecycle and not just the capital costs of those premises. This will be a spur toward using engineering to create more sustainable office space and generally exploiting the ways that engineering can be used to change the way we work.

2.5 It is essential that the UK’s innovation drive is considered in the global context. International collaboration and ‘Open Innovation’ (in which industrial, start-up and academic partners combine their strengths to competitive advantage) are essential to the UK’s competitiveness. Engineering innovation is all about exploiting technology and research. This depends on taking a global perspective and exploiting the best science and technologies that are available across the world. UK engineers will need to develop new skills and strengths to support this collaboration – skills in road- mapping and horizon-scanning; skills in knowledge management. If these collaborative skills are fostered engineers and engineering can have an increasing role in the UK’s innovation drive. a) We recommend that the committee consider how DIUS and BERR can encourage businesses to use engineering solutions to create better business models. b) ‘Open Innovation’ is essential to the UK’s success in innovation. The committee should consider how DIUS can promote open innovation.

3) The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity

3.1 The cataclysmic scenario painted in the first section is just the extreme end of the steady drop in numbers of trained engineers that is currently the reality in the UK. In recent years, surveys of engineering employers (including those carried out by Cranfield University, the CBI and the IET) all provide the same indication: that looking forward, the majority of employers expect to find it difficult to fill engineering vacancies.

3.2 In the electrical power and distribution industry specifically, 20% of current power generation engineers will retire in the next 10 years and 50% will do so in the next 20. At the same time the number of 18 year olds is dropping, meaning that the sector will face significant competition in attracting a new generation of workers from a shrinking pool. Other areas feel the dearth even more strongly – nuclear engineering and materials are areas where recruitment is a serious challenge but which provide engineers with skills essential for the sustainable development and support of our infrastructure.

3.3 Skills shortages are not restricted to graduate engineers. With organizations like Transport for London and Network Rail re-launching their apprenticeship programmes the shortage of technicians is made evident.

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3.4 The greatest risk to the engineering skills base in UK comes from the poor progression with science and mathematics in schools, colleges and beyond. Engineering, at whatever level of practice, is underpinned by mathematics and science. However, 9 out of 10 students that complete GCSE science give up science at that point. They are thus, perhaps unconsciously, closing off the option of an engineering career at a very early age. The Academy supports the current Government interventions in this area (particularly in the recruitment of more specialist science teachers) because the future health of engineering depends on them.

3.5 The issue of diversity among engineering students and professional engineers is a somewhat mixed picture. HESA statistics on the makeup of engineering Higher Education courses in the UK reveal that women are greatly under-represented at 14% of the engineering student body. The situation amongst registered engineers is worse with 96% of engineers being male. However, the proportion of UK students from all minority ethnic backgrounds applying to engineering courses stood at 21% in 2005, slightly better than the 18% average for all subjects.140 And the number of engineering students from the lowest socio-economic groups is at least as high as in other subjects (though still a considerably lower proportion than found in the general population). The Royal Academy of Engineering’s London Engineering Project, funded by HEFCE, has engaged in a wide range of activities to attract students from a broader range of socio-economic groups to an engineering education.

3.6 The proportion of female students varies significantly across the engineering disciplines – the best sector being chemical engineering and the worst being mechanical engineering. The worst performers in terms of gender diversity would do well to learn lessons from the best on attracting talented female students. In terms of encouraging a better gender balance in professional engineering, it seems that the problem is self-perpetuating – the male dominance in engineering being a barrier to female engineers. If so, this may only be solved by a step-change, which may involve engineering more women into engineering. There is often a business case for doing so. For example, in user-centred design there is a need for a diverse workforce to represent diverse user groups. Actively encouraging more women in to engineering design – perhaps from product design, might bring about a step-change that will create a virtuous circle.

3.7 Making stronger links between engineering and design may in fact encourage more young people generally to engineering. As will an emphasis on the engineering component of issues that engage young people – such as climate change and poverty reduction. The engineering degree curriculum needs to be revisited to ensure that it is current and attractive to young people. Lord Sainsbury’s recommendation for a review of engineering education should be taken up swiftly.141

3.8 Despite the problems of lack of engineers, the engineering profession must not mourn those students who move to other careers, such as jobs in the city and

140 Mailardet, Martland, Morling: ‘Attracting More Students into Engineering: The UK Perspective’, Presented at IEEE conference on Meeting the Growing Demand for Engineers and their Educators, 2010-2020, Munich, Germany, 9-11 November 2007 141 The Race to the Top, recommendation 7.17: “A leading member of the engineering profession should be asked to set up a working group of experts from academia and industry to review current approaches to engineering education. The group should develop, with a number of leading engineering universities, an experience-led engineering degree which integrates technical, operational and business skills.”

275 management consultancy. A great virtue of an engineering education is that it gives students skills in systems thinking, skills that are valuable in a wide range of roles. Indeed, a useful way to promote engineering education is to bring attention to the fact that it makes a student a good candidate for a wide range of careers.142 a) There is a pressing need to attract women into engineering education and to retain more women in engineering careers. The committee should consider what action can be taken to change the current situation. b) There is a pressing need to attract more young people in general to engineering education. The committee should consider whether the DCSF / DIUS STEM Programme is doing enough for the engineering and technology elements in STEM alongside what it clearly does for the science and maths elements. At university level, Lord Sainsbury’s recommendation for a review of engineering education should be taken up swiftly.

4) The importance of engineering to R&D and the contribution of R&D to engineering

4.1 Engineering is crucially important to R&D. A huge proportion of scientific research is completely dependent on technologies produced, maintained and improved by engineers. The scanning electron microscope was developed by engineers in Cambridge and is essential to the research carried out in laboratories across the world. The human genome project would have been impossible without the sequencers which were produced by engineers. Across the sciences research is very often facilitated by the increases in computing speed and power that have made ever more complex data processing, calculations and predictions possible – climate science is particularly dependent on engineering in this way.

4.2 R&D is essential to engineering in that an increase in research is necessary to reverse the decline of high value-added manufacturing in the UK. Sir John Rose spoke recently about the importance of high value-added manufacturing to the balance and health of the UK economy and its skill base.143 He used the manufacture of turbine blades as an example. Others could include magnetic storage devices, fuel cells, optical components and aircraft wings.144

4.3 However, the contribution of R&D to engineering is a complex matter. An easy assumption is that engineering is all ‘D’ – exploitation of research for engineering application. However the examples above show areas where engineering precedes scientific research, where in fact science is exploiting the engineering for research purposes. There is thus a spectrum of activities between research and development, and between science and engineering.

142 For further comments relevant to the state of the engineering skills base, and to the discussion under point 5, the committee may wish to consult The Royal Academy of Engineering report, ‘Educating Engineers for the 21st Century’: http://www.raeng.org.uk/news/publications/list/reports/Educating_Engineers_21st_Century.pdf 143 Imperial College London Annual Gabor Lecture - 15 November 2007 144 Victrex PLC, now a FTSE250 company but originally a spin-out from ICI, is the world leader in its high performance polymer niche, exporting 97% of its production. Because of the cost of the product it is only used in the most demanding environments (at the bottom of oil wells or in car gearboxes) and all of these sales are dependent on devising engineering solutions for these mission critical applications. This is an example of how R&D in engineering can lead to profitable manufacturing companies that boost the UK economy.

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4.4 Nevertheless, engineering research can often be quite different to that in pure science. It is focused more on specific outputs and much less on the publication of papers for scholarly journals. As a result, it is difficult to measure science and engineering research on a commensurate scale. This can be harmful to engineering when it competes in the Research Assessment Exercise. Hefce’s proposed move to research metrics on the basis of Treasury directives is a threat to engineering as engineering research has quite different impact to that of other sciences and does not fit well with such a measure. Hence, it is essential that a good measure of the quality of engineering research is established so that engineering research is adequately supported – if it is not, then engineering cannot have the impact on innovation that is described under question 2.145

4.5 Collaboration between industry and academia is essential for R&D, and university-industry links must be strengthened and supported by stakeholders on both sides. There are some good examples of this in the UK. For example, Rolls- Royce does a great deal of research in collaboration with universities through their university technology centres, which focus on different aspects of research into engine design. Rolls-Royce has said that this has been crucial to the world wide success of their products and has also helped to create world class UK university departments.

4.6 However, in general the UK engineering industry is risk averse, and tends to work within the well-trodden path. More incentives for industry to engage in R&D would be of great benefit. The Government could take advantage of the power it holds in relation to public procurement in order to stimulate innovation across domains as diverse as defence, transportation and the NHS. There are good examples in other countries, notably in the US, to show what can be done to stimulate R&D and innovation by means of carefully calculated procurement practices. This is an opportunity already recognised by Lord Sainsbury. a) Engineering research differs from pure science. The committee should consider how to ensure that engineering research is adequately funded and properly assessed, especially through any assessment criteria developed by HEFCE. b) The committee should consider how Government can stimulate UK R&D and knowledge transfer through its procurement strategies.

5) The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering

5.1 Each of these sectors have a significant role in the formation and development of engineering careers, from attracting students into the profession to supporting young engineers. The Royal Academy of Engineering, which does not fit neatly into any of these sectors, also has an important role and has devoted significant effort into encouraging young people into engineering. One example of its efforts is its work on the Engineering Diploma. The new 14-19 Diploma in Engineering is significant because, for the first time in most schools, engineering will be part of the mainstream curriculum. Therefore, young people will not only learn more about the realities of

145 See The Royal Academy of Engineering response to the Hefce consultation on the research excellence framework: http://www.raeng.org.uk/policy/responses/pdf/Research_Excellence_Framework.pdf

277 engineering, but also have an obvious pathway into the profession. The Royal Academy of Engineering has made a particular contribution for the Advanced (Level 3 diploma) in the field of engineering mathematics by driving the development of a bespoke Additional Specialist Learning qualification. The qualification sets mathematics within a realistic and authentic engineering context.

5.2 Although this development is of great advantage to students interested in engineering from an early age, there needs to be effort focused on attracting bright students to engineering later in their education. Universities can help to attract the brightest and most creative students into engineering by making entry routes into engineering more flexible and by making course content more flexible. It should be easier for pure science students to change track to an engineering course part way through their degree, should they discover a particular interest in applied science. And there should also be pulls for students who are not so attracted by a highly technical education. Although mathematics and science skills are essential for engineers, so is an appreciation for the social context of engineering and the users of an engineering product or system. Emphasising the latter aspects of engineering, and giving opportunities for students to focus on this later in the degree, may well attract more students to engineering degrees and careers.

5.3 Attracting the best students is important because the UK does not simply need more engineers, but it needs more engineers with creative ability and leadership potential. It is difficult to identify high-profile, leadership figures such as Bill Gates or Jonathan Ive (senior VP of Industrial Design, Apple Computer) in the UK, and in engineering generally rather than IT. High profile UK engineers such as James Dyson or engineers in high profile companies like Arup or Phillips need exposure to inspire engineering students to strive for leadership level. It is the role of industry and the professional bodies to push these people forward. The Royal Academy of Engineering runs a distinguished visiting professors programme which allows eminent engineers to work in university departments and serve as inspirational figures for students. If prominent engineers are willing to evangelise by speaking to students in schools and universities, they can serve as role-models that will encourage a new generation of engineering leaders.

5.4 There are pushes from various quarters attempting to attract students to engineering, and these would benefit from a concerted collaborative effort. The Academy’s Shape the Future initiative has been central here and such over-arching programmes should be encouraged and supported. This effort should include the voices of all bodies mentioned above, alongside engineering employers who are often SMEs with no lobbying or media profile. Opportunities to hear their voice in the call for more engineers should be created, with professional bodies having a major role (in particular larger professional bodies like the larger engineering institutions working with more specialised, smaller professional bodies).

5.5 Attracting students to engineering careers can be helped by raising the profile and perception of engineering generally. Stories about engineering and engineers need to be heard more often, and more television coverage of what engineers do and how they change our world would have a great impact. Relationship building and fruitful, mutually beneficial partnerships with broadcasting can lead to a significant increase in programmes with a richer contemporary engineering content which can help raise the profile of engineering significantly.146

146 The Academy is currently working with and building relationships with the broadcast community. Specifically, the Academy has organised networking events between engineering and broadcasters (the

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5.6 Government can have a particular role in raising awareness of engineering by simply talking about engineering more often. The role of science and its contribution to society is often mentioned, but the word ‘engineering’ is seldom heard. A more conscious awareness of the place of engineering in society should be evidenced by hearing the word issue from their mouths once in a while to show that they understand how central engineering and engineers are to society. It is also important to note that the Government’s definition of ‘science’ may intend to encompass engineering, but the policy context for incubating good science is not necessarily the policy context that will support good engineering.

5.7 There is growing support for the appointment of a Chief Engineer, distinct from the Government Chief Scientist. Engineers have particular skill in the deployment of resources to meet national goals and measures; the management of risk and the assessment of technological solutions to problems like climate change and security of energy supply – all of which are essential to good policy making. Such an appointment would also go a substantial way to ensure that engineering is appropriately represented in Government and that the needs and contributions of engineering are dealt with by Government in a strategic manner. a) Coordinated effort is required to raise the profile of engineering and to attract young people into engineering roles that are essential for the welfare of society. The committee should consider how to ensure that all of the sectors above work together to encourage young people of leadership potential to begin an engineering career. b) The Academy recommends the appointment of a Chief Engineer to ensure that engineers have input to policy formulation and that issues relating to engineering are dealt with by Government in a strategic way.

March 2008

“Would Like to Meet the Innovators” event at last year’s ‘Britdoc’ festival brought together documentary film and TV producers with a diverse range of engineers); it is setting up an endowment fund to provide funding support to encourage the commissioning of engineering-rich programmes (working in partnership with both broadcasters and independent producers); and it is establishing a Broadcast Award (awaiting final confirmation).

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Memorandum 42

Submission from the Institution of Chemical Engineers

Introduction IChemE fully supports the submission to the Committee prepared by the Engineering and Technology Board (ETB) on behalf of the wider professional engineering community in the UK. Indeed, the submission itself represents an illustration of increasing co-operation and alignment between the professional organisations representing the diverse and multidisciplinary engineering community, and supporting the industries that depend on that community.

Chemical and process engineering occupies a particularly important bridging position between engineering and science, and IChemE itself reflects this by its participation in collaborative bodies such as the G15 group of professional engineering institutions and in the Science Council. The science and engineering communities must act in concert on key issues such as the promotion and celebration of technology-based industry and the promotion of STEM career choices to young people and to those who influence them.

In addition to the evidence tabled in the ETB submission, IChemE wishes to raise the following points.

Skills supply The process industries – those most clearly dependent on chemical and biochemical engineering – are among the most important contributors to the UK economy, accounting for in excess of £50 billion of gross value added and generating a substantial trade surplus. They are also industries which are experiencing sustained high demand for process engineering skills across all parts of the sector and at all levels of seniority from craft skills and technicians through to experienced chartered engineers. Such a situation places particular weight on the importance of attracting more bright young people into chemical and process engineering and into STEM subjects in general. Our own experience proves that perceptions can be changed and uptake of STEM subjects increased. Our successful whynotchemeng campaign has played a leading part in increasing the number of UCAS applications to chemical engineering by 71% in five years, and admissions into UK universities from 940 to 1465 since 2001.

1500 1465 1400 1364

1300 1317 1306 1262 1200 1203

1100 1095 1098 1000 1000 979 979 940 900

800 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Figure 1: Intake to Chemical, Process and Energy Engineering Courses in the UK 1996-2007 (Source UCAS)

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This has been achieved on modest resources contributed by IChemE, by universities and by leading companies, and we believe its lessons are transferable to other branches of science and engineering. We should be happy to share with the Committee details of how this success has been achieved.

Continued demand However, IChemE contends that this is no time for complacency. The supply of home graduates into engineering careers still falls well short of demand, as illustrated by important work in the North-East of England, a region particularly dependant on the chemical and process industries, where recent work by the North East Process Industry Cluster (NEPIC), reported shortages across all professional engineering disciplines, engineering technicians and apprentices. It is interesting to note that in the same region an investment pipeline of anything up to £7 billion is accessible – but only if the skills supply constraints can be addressed. The supply of engineering talent from the higher education sector must therefore continue to be increased.

The problem is that capacity in chemical engineering education in the UK is essentially full, and investment is urgently needed in increased capacity in the universities to train young people to Bachelors and Masters level, along with an increased unit of resource in order to allow universities to update their facilities and expand the scope of their teaching facilities to address the increasingly wide range of subject areas within chemical and process engineering. For example, the need to understand, develop and promote applications for more sustainable biofuels, highlighted once again in the King Report on low-carbon cars, translates directly into the need for broader training and education facilities and universities, for more undergraduates.

Research The same broadening of the profession of course also leads to a pressing need for increased investment in research in order that chemical engineering talent can be deployed to address the challenges of a growing, prosperous and crucially, low carbon, economy. It is perhaps the increasing interaction between engineering and life science disciplines that represents one of the greatest challenges.

Funding is also required to support large scale demonstrators both to accelerate the translation of research outputs into commercially successful innovation, and to raise public and business awareness of the possibilities that process engineering developments offer. These demonstrators must, as our recently published Technical Strategy Roadmap advocates, cover a wide spectrum and keep open the broad range of options. If the UK tries to pick winners too early, it may well find itself excluded from a potential lead position in areas of future technological importance. An excellent example is the area of carbon capture and storage, where we believe that the Government’s decision to confine the proposed competition for a demonstration plant to post-combustion carbon capture technology is extremely unwise. In our view it should be accompanied by a further demonstration programme trialling pre- combustion carbon capture which, although less readily applicable to the retro-fitting of existing plant, is likely to form a crucial component of a future low-carbon energy mix that includes responsible use of fossil fuel resources in the interests of both sustainability and energy security.

We welcome recognition of needs such as these by the Research Councils and other funding agencies. It is our experience however that neither the promotion of, nor the funding of research in, process and chemical engineering receives the priority that it should alongside assembly manufacturing. It is important that the somewhat more fragmented nature of the user industries, resulting from a challenging period of change in the chemistry-based sectors, does not lead to the sectors receiving less “airtime” when funding decisions are arrived at.

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About IChemE IChemE is the hub for chemical, biochemical and process engineering professionals. The heart of the process community, IChemE promotes competence and a commitment to best practice, advancing the science and practice of chemical engineering for the benefit of society and supporting the professional development of an international membership exceeding 27,000. The Institution has the role of a qualifying body and learned society, publishing books, journals and training packages and organizing conferences and courses, as well as engaging with industry, government and regulators on issues where the profession can assist and support decision makers.

March 2008

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Memorandum 43

Submission from the Institute of Physics (IOP)

Role of Engineering and Engineers in UK Society:

1.1 The role of engineering in advancing technology and the quality of life should not be underestimated: engineering provides for progress in science, manufacturing, and the creative and design industries. Engineering allows the results of scientific innovation to be brought to the market. Additionally, innovations within the service sectors are often underpinned by science and are enabled by engineers. We believe that engineering, along with science, is a ‘trusted profession’, with key role in providing the public and decision makers to with accurate information on which to base their opinions and conclusions

1.2 More should be done to emphasise the contributions of both scientists and engineers to the prosperity and success of the UK. The recent IET report Public Perceptions of Engineering147 suggested that there is a low level of public awareness of modern engineering. This lack of awareness is a key issue when preserving the health of engineering as an academic discipline and information about the breadth of jobs and careers within engineering should be provided in schools and universities. There is a need for more people taking physics (and mathematics in combination) at A-level if the UK is to produce enough skilled engineers to keep pace with the emerging economies of China and India.

Role of Engineering and Engineers in the UK’s Innovation Drive:

2.1 The aim of the innovation drive is to take inventions and the results of scientific research and turn them into innovative, marketable products that generate revenue and raise the quality of life. For this to happen product manufacturing issues must be addressed and engineers are essential for this process. The recent IOP report Physics and the UK Economy148 states that physics-based industries contribute over £70bn to the UK economy and employ more then a million people in the UK. These industries, such as aerospace, telecommunications and high-technology manufacturing, depend on physics knowledge and expertise for their survival, but require engineering and engineers to design and manufacture products.

2.2 The UK’s science base is very strong; however the UK’s record in bringing scientific developments to the marketplace is comparatively weak. Skilled engineers are needed in this process; engineers are involved in both the secondary and tertiary steps in innovation. A crude estimate of the cost in investment and manpower for moving from research to development to production is roughly 1:10:100. Furthermore, there is much anecdotal evidence of scientific developments originating in the UK being developed into profitable businesses overseas because of the lack of strength of the engineering base in the UK.

147 Engineering and Technology Skills and Demand in Industry, The IET 2007 148 Physics and the UK economy, The Institute of Physics 2007

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The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile);

3.1 The state of the engineering skills base should not be assessed in isolation, but in concert with other scientific disciplines. The term ‘engineer’ when used in the workplace can cover a wide variety of skills and activities including physics. There are comparatively few positions within high-technology industry with ‘physicist’ in their job title, but often these nominal engineering positions rely heavily on physics knowledge and will often be filled by those with physics qualifications. Physics A- levels are desirable in any engineer and it should be made clear to school pupils that ‘engineering’ is one of the fields in which physics-trained people can work.

3.2 Within the current pool of trained engineers there are demographic problems, with a high proportion of workers planning to retire over the next decade2. There is a limited number of skilled people under the age of 50, possibly due to a reduction in apprentice training around 25 years ago, though we note recent efforts to revise the programmes. The IET survey2 suggested that many firms are struggling to recruit experienced engineers to replace these workers. Additionally, a ready supply of skilled workers is a powerful incentive for companies to invest in the UK. Recent experiences of firms such as Plastic Logic relocating their main manufacturing bases overseas has demonstrated the powerful pull of trained workers for companies wishing to develop the result of scientific research and a weakness in this area in the UK. It is not immediately obvious how this problem can be solved in the short term, but in the longer term, an overall increase in the number of engineering and physical sciences graduates would provide for enough graduates to remain in the engineering profession and also fill positions in other sectors such as finance and teaching.

3.3 There has been a decline in the rate of applications for Chartered Engineer (CEng) status over the past ten years and an upward trend in the average age of registrant, currently over 55 years old149. In contrast there have been recent increases in the numbers of graduates from engineering degrees. The reasons behind this decline in CEng applications are complex; however it may be partially explained by engineering graduates moving into other professions such as finance and the service sectors. It may also be due to companies being reluctant to provide financial support to staff seeking to attain CEng status, feeling that there is no short- term gain to their business. However, some high-technology companies have found that their employees that achieve CEng status are both paid more than equivalent employees who don’t have chartered status, and are also able to charge more for consultancy work. The skills acquired through attaining chartered status are a means by which the level of skills level of engineers within companies can be raised and the process should be actively encouraged.

The importance of engineering to R&D and the contribution of R&D to engineering

4.1 The success of science-based industries is integral to the UK meeting its target R&D spend as set out in the Lisbon Agenda. For this to happen, a strong supply of skilled workers will be needed. Scientific innovations generated through R&D need the expertise of engineers to scale-up the products of the research to near market products. Without good engineers this process is almost impossible and seldom effective. Research by the IOP1 suggests that R&D spending in physics-based sectors has declined in the period following 2001. R&D provides fuel for the

149 2007 Survey of Registered Engineers, The Engineering and Technology Board

284 advancement of innovative industries and this decline must be addressed, we welcome the leadership role given to the Technology Strategy Board in this area, particularly the proposed changes to the small business research initiative (SBRI).

The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering.

Industry:

5.1 We believe that industry should promote a clear career structure that keeps good engineers within the profession. There is also a case for companies to revisit apprenticeship schemes as a means to train up and recruit qualified staff. Companies should make it clearer that physics graduates are often well suited to engineering jobs within their organisations and physics should be named as a desirable degree on job adverts. The IOP is active in this area with its Physicists Think campaign150, which promotes the abilities and skills of physics graduates to human resources departments of large companies. Companies should also support and encourage employees to seek CEng status as a means of strengthening the skills base within their existing employees.

5.2 Companies should also be proactive in engaging with universities, which can provide both an immediate research gain, and also the opportunity to engage with a pool of skilled potential workers and to highlight the possible careers available to them within engineering. This is an area already being pursued by large companies such as BAE Systems and Rolls-Royce. Businesses should also engage in outreach activities in schools to illustrate the career paths that are available to people who train in science and engineering.

Professional Bodies:

5.3 Professional bodies should promote the CEng status as a major step in the professional development of their members. This should include explaining the value of the skills gained through the CEng application processes.

Universities:

5.4 Universities should encourage more science/technology thinking amongst students of the arts, humanities and social sciences, this could be through introductory ‘taster courses’.

Government:

5.5 The government has a major role in stimulating growth in innovative science- based sectors of the economy. The proposed ‘intelligent’ procurement mechanisms and revamped (SBRI) programme have the potential to have a substantial impact in this area. Strong companies provide a draw for graduates in engineering and other disciplines and serve to highlight the career paths available to pupils and students studying science and engineering.

150 www.iop.org/activity/careers/page_26755.html

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Schools:

5.6 There have been some attempts to develop a progression route to engineering through applied qualifications. These have had a limited impact and it remains to be seen how the Engineering Diploma will fit into the educational environment, whether it will be seen as a vocational qualification or as a route to academic entry. For the moment, however, the main route to becoming a professional engineer is still via mathematics and physics A-levels.

5.7 We note that the proposed development of a Science Diploma, which is currently being promoted as an academic qualification, could add to the confusion about the best route into engineering. Particularly when one considers the current state of advice with respect to careers in STEM.

5.8 The problems facing physics education, e.g. lack of specialist physics teachers, limited careers advice, and under-representation of girls are major problems for the supply of the engineering pipeline and are manifested in the recruitment to university engineering courses.

5.9 Whilst the government and others are addressing some of the issues facing physics education we worry that the pivotal nature of physics in terms of progression to engineering is not clearly understood across government. In particular, perhaps because engineering does not have a strong identity in pre-19 education, there appears to be a strong emphasis on extra-curricular interventions rather than addressing the central problems in the classroom.

5.10 Until the fundamental issues of the physics teacher recruitment and retention of is addressed we believe that participation in engineering and physics will not be sufficient to satisfy the demand.

March 2008

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Memorandum 44

Submission from John A Napier

SUMMARY The UK Engineering Profession is heading for a recruitment catastrophe unless radical government backed action is taken by the profession. It is my firm belief and recommendation that statutory registration of UK’s professional engineers and/or protection of title “Professional Engineer”, as adopted in several other countries, will not only provide long overdue protection to the public and the public interest but will also protect the reputation of the UK engineering profession and motivate more young persons with the necessary abilities in Science and Mathematics to enter it and remain in it.

1. Engineering - A Vital UK Profession in Decline

It is of growing concern within the UK engineering profession that in the last decade the number of registered engineers has fallen by 21,500 and the median age of UK’s registered engineers has now reached 58 years and is fast approaching the age of normal retirement. There are insufficient numbers of young engineers being attracted into the profession to replace the losses resulting from retirement and the loss of registered engineers to other sectors. The current decline is acknowledged within and outside the profession to be a “ticking time bomb”, potentially damaging for the Nation and demanding radical change. 2. Public Attitudes & Perceptions of Engineers

The 2007 study commissioned by The Royal Academy of Engineering and the Engineering and Technology Board on Public Attitudes to and Perceptions of Engineering and Engineers 2007 found among its conclusions:

“Engineering was seen as difficult to define and vague. The reason for this confusion was partly attributed to the misuse of the term engineering to describe other trades, include technicians or to describe repair work.” Many school leavers, often influenced by parents, choosing a career, perceive the academic and training demands to become a professional engineer to be too difficult and to require levels of achievement in mathematics and science that are incommensurate with a career as they perceive it as a professional engineer. If in the 21st century the UK’s engineering and the engineering profession continues to be perceived by the public, and particularly the younger age group, in this confused way, the engineering profession will continue to decline. Some countries encourage their professional engineers to evidence their professional competency and accountability by granting a pre-nominal title such as “Ing”. A pre-nominal title for UK’s professional engineers e.g. “Eng” will, in the view of many outside and within the profession, raise the awareness of what professional engineers do, enhance the public perception of the profession, particularly amongst the young, and motivate more of the

287 best young minds to become professional engineers providing vital innovation and leadership for the engineering sector. .

3. Protecting the Public and the Public Interest

Professional Engineers within the registered profession are being educated and trained to be engaged in innovative, safe and environmentally sustainable engineering development and creative design that will both sustain the Nation and enable the UK to retain a leadership role in the global engineering sector. They are educated and trained to undertake engineering, requiring the application of engineering principles, and where the safeguarding of life, health, property or the public welfare is concerned. They are trained to know what is outside their own specialist fields of engineering expertise and to refer such specialist engineering work to those professional engineers accredited to deal with these requirements. These professional competencies demand nothing less than the high academic standards and professional training laid down by the Engineering Profession. Voluntary registration of professional engineers (as currently applicable in UK) allows engineering work impacting on public health and safety to be undertaken by persons who are unaccredited, and at the discretion of those who may have little or no understanding of engineering risk or of engineering safety integrity levels.

4. Current Voluntary Registration

Unlike the other learned bodies regulating solicitors, medical practitioners, architects, and teachers etc., engineers, practising in the UK, have not been registered or regulated by statute, and under the current charter, registration is voluntary. As a consequence we have today a situation in the UK where the engineering profession is both regulated and unregulated and this is perceived by many, not least by the Engineering Council, as bizarre. According to ECUK records, the 1970s government Enquiry and its outcome the Finniston Report (1979), clearly considered engineering in its entirety and concluded that there was a requirement for professional engineers to be regulated. The government implemented this recommendation by setting up an Engineering Council with powers to set and police standards of competence and conduct. The intention was that, although as an occupation engineering was not restricted, as a profession there was a public interest need for an entry restriction to it. However, by also allowing professional engineering practise in the UK to be open to anyone, voluntary registration has failed to achieve the objective.

5. Evidencing Professional Competence

Until more recently, Membership of a UK engineering institution accredited by EC(UK) was evidence in itself of competency as a professional engineer in a particular field. Since the decision by some Engineering Institutions to broaden their Membership, this is no longer the case. These developments combined with vague and confused public perception have created an all too widely held impression amongst the public, and

288 particularly among school leavers, that a professional engineer in UK is anyone practising in the engineering sector who might be registered or unregistered, qualified or unqualified, and whose education and training can be accredited or unaccredited.

6. Successive Reviews of The Current UK Registration Model

Continuing dissatisfaction with the state of the UK engineering profession has prompted successive reviews of the system of voluntary registration. These have achieved little. However other countries have achieved registration backed by legislation and the question is being increasingly asked - Why is it not happening in the UK? There is today a strong body of opinion that is saying we need to do something radical and we need to do it without further delay. The 1990 Canada Professional Engineers Act is an example of just one model that has worked viz: ““practice of professional engineering” means any act of designing, composing, evaluating, advising, reporting, directing or supervising wherein the safeguarding of life, health, property or the public welfare is concerned and that requires the application of engineering principles, but does not include practising as a natural scientist” ““professional engineer” means a person who holds a licence or a temporary licence” “No person shall engage in the practice of professional engineering or hold himself, herself or itself out as engaging in the practice of professional engineering unless the person is the holder of a licence, a temporary licence, a provisional licence or a limited licence”. As a similar example in the global developing world, it is interesting to note that an Engineers Bill has been drafted by the Engineering Council of India and submitted to the Government of India for piloting it through the Indian Parliament giving statutory backing to professional engineers and the engineering profession in India. Engineers Bill has been drafted by Engineering Council of India and submitted to the

7. Facilitating European & International Mobility

According to EC(UK), they have battled against the continental perception that UK engineers are second class for 40 years. This has prompted some UK engineers to subscribe to organisations such as FEANI to facilitate their mobility within Europe as practising professional engineers. An effective UK registration model, backed by legislation will make provision for international agreements to facilitate reciprocity of practise between countries.

8. Registration Backed by Legislation

Registration backed by legislation and/or protecting the title of professional engineer by statute, along with pre-nominal title “Eng” will provide clarity in standards of professional engineering education, training and competency, will increase individual professional accountability, protect the public and the public interest, and enhance the public perception (particularly amongst

289 school leavers and their parents) of the engineering profession. It will also encourage employers to use registered engineers to their advantage whereas otherwise they might not.

March 2008

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Memorandum 45

Submission from the British Computer Society

The British Computer Society (BCS) is pleased to endorse the Professional Engineering Community’s response to the above consultation. For detailed input relating to the IT/computing sector of engineering, |BCS would also like to refer the Select Committee to the response submitted by the UKCRC - an Expert Panel of the British Computer Society, the Council of Professors and Heads of Computing and the Institution of Engineering & Technology.

The British Computer Society is the leading professional body for the IT industry. With over 60,000 members, the BCS is the Professional and Learned Society in the field of computers and information systems.

The BCS is responsible for setting standards for the IT profession. It is also leading the change in the public perception and appreciation of the economic and social importance of professionally managed IT projects and programmes. In this capacity, the Society advises, informs and persuades industry and government on successful IT implementation.

IT affects us all in our everyday lives, and that is why BCS is committed to advance IT knowledge and deliver professionalism at the highest standards by ‘Creating the IT Profession’ for the 21st century.

Yours faithfully,

Dr Mike Rodd Director of External Relations

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Memorandum 46

Submission from STEMNET (The Science, Technology, Engineering and Maths Network)

Executive Summary

The Government (DIUS) funds the operation of the Science and Engineering Ambassadors Programme. This is known to be successful and to be very popular with schools and colleges. STEMNET believes that there is scope to further expand the range and influence of the Programme to encourage more young people to consider careers in Engineering but that greater strategic focus, from all stakeholders, is required.

Detail

1. STEMNET is pleased to submit evidence to this enquiry. Working with a broad range of partners STEMNET plays a key co-ordinating role in ensuring that young people (5 – 19) and their teachers, are able to experience a wide- range of activities and schemes which enhance and enrich the school curriculum. These activities and schemes cover the broad range of Science, Technology, Engineering and Maths (STEM) and are designed to increase STEM awareness and literacy as well as encourage more young people to pursue post-16 STEM qualifications and associated careers. A major component of STEMNET’s work is the co-ordination, for the Department of Innovation, Universities and Skills of the Science and Engineering Ambassadors (SEAs) Programme.

2. STEMNET’s evidence addresses the 3rd and 5th bullet points i.e.

• the state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile) • the roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering.

3. In June 2007, The Centre for Education and Industry at Warwick University published a report entitled “Careers from Science – An investigation for the Science Education Forum”. In that report they stated:

“People, their lives and the work they do, are the richest and most respected resource for learning about careers. Whilst a proportion of young people are attracted to science and technology for itself, many are interested first in the people (role models etc)”

STEMNET views engineering as the appliance of science, design, technology and maths and agrees that appropriate role-models from these disciplines can act as a powerful encouragement for young people to explore the wide variety of engineering-based careers. This is backed by the findings of a short study

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undertaken for STEMNET by the Association for Science Education in 2007 in which teachers confirmed that Science and Engineering Ambassadors were a valuable resource for them, but that they would welcome more opportunities to use the time and experience of the volunteer SEAs in career talks or in other ways of illustrating how people use the taught subjects in real-world environments such as the various engineering disciplines.

4. Studies into public attitudes towards Engineering by, for example the Royal Academy of Engineering and the Engineering and Technology Board, demonstrate clearly that many unhelpful stereotypes and misconceptions are still widespread. The effective and co-ordinated use of appropriate role models is a fundamental way to challenge such views and generate renewed enthusiasm for engineering careers. For example, one of STEMNET’s Science and Engineering Ambassadors recently wrote:

"Explaining my job to the children reminded me why I chose this career and why I love my job - details which can occasionally get lost when I spend too many days stuck in the office! When one boy said his dad was an engineer and he repaired cars, it definitely inspired me to tell as many young people as possible what engineering is really about!"

Kate Burt, Rail Vehicle Project Engineer, Network Rail

5. There are currently around 18,000 registered Science and Engineering Ambassadors covering a wide range of STEM backgrounds. Some 1500 employer organisations are known to employ people who volunteer as SEAs. Many of these are Engineering companies and STEMNET believes that around 65% of its SEAs are in Engineering-based careers. STEMNET very much welcomes the ongoing support from DIUS for the Programme. There is anecdotal evidence to show that the SEAs Programme operates most effectively and consistently where it has been adopted or recognised as part of a broader organisational programme, for example located in an organisational Corporate Social Responsibility or Staff Development Programme and we recommend that whenever there are opportunities to do so, Government Departments and professional bodies should draw the attention of employer organisations, who need and require STEM skills, to the SEAs Programme and encourage their participation as part of their operational framework.

6. Since the inception of the SEAs Programme there have been continuous positive trends in recruiting a broader range of SEAs than existed at the outset. Increasingly there is a cohort of younger (below 35) SEAs, 40% of whom are female and around 10% are from BME backgrounds. STEMNET’s sub- regional contracts to manage the SEAs Programme are being re-tendered during April 2008. STEMNET is making it very clear to all prospective bidders that it is vital to recruit and retain SEAs who come from very diverse backgrounds and who can represent the society they serve. This includes a focus on gender, age, ethnicity and economic background. Over the period of the contracts (August 2008 to March 2011) STEMNET expects to see an upward trend in the percentage of registered SEAs who are from “under- represented” groups.

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7. STEMNET welcomed the award in 2007 of 2 contracts addressing the issue of perceived gaps in the provision of STEM Careers Information, Advice and Guidance. It is working closely with the organisations holding those contracts and intends that Science and Engineering Ambassadors should play a strong role in demonstrating the excitement and sheer range of careers in Engineering as part of the new service being made available to schools and colleges.

8. However, if this is to have a proper strategic focus and real momentum the goodwill and co-operation of industry, universities, professional bodies, Government and unions, especially in the engineering arena, will be absolutely vital. Young people will often be influenced by career role-models who are most like them e.g. closer in age, gender and ethnicity. If the UK is to reverse the trend in the number of young people opting for Engineering careers then all stakeholders need to consider the tools and levers at their disposal to give the right people the time to act as role-models in schools and colleges. The Government funds the SEAs programme to achieve this end and STEMNET looks forward to working even more effectively with its partners and other stakeholders over the next funding period to ensure that there is a sustainable supply of engineers.

March 2008

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Memorandum 47

Submission from Research Councils UK (RCUK)

Executive Summary

The Research Councils believe engineering is vital both to the UK economy and to society in general. We seek to support a full spectrum of research and postgraduate training within engineering and work to ensure that that the research climate for engineering in the UK is vibrant. Individual Councils may intervene to ensure that there is sufficient research capacity in key areas for the UK, for example through Science and Innovation Awards.

Engineers and engineering are enabling new developments in many diverse areas of research. The Engineering and Physical Sciences Research Council (EPSRC) has the specific remit to encourage blue sky adventurous engineering research across the entire spectrum, to ensure that basic science and technology are translated into applications, and to identify and nurture emerging areas. EPSRC expenditure in 2007- 08 will be £342 M, on current plans this expenditure will rise during the forthcoming Comprehensive Spending Review period to £378 M in 2010-11. However, Research Council interest and funding extends beyond this where individual Councils develop novel engineering and applications which enhance the research and knowledge base in their areas of interest, for example in medical and bioengineering, earth observation, and in the provision of major research facilities.

The Research Councils recognise the importance of strong partnerships and engagement with research users in business and the public sector in order to meet their needs and increase knowledge transfer and economic impact. Such engagement is developed both through researcher-led grant funding and strategic partnerships between the Councils and other stakeholders. The Research Councils are also working closely with the Technology Strategy Board to ensure the effective translation of knowledge into innovation and new and improved products and services.

The impact of research extends far beyond the economic and has major social implications. We believe that research is crucial in informing and developing the solutions needed to address the Government’s five public policy challenges for the UK, and to improve quality of life and provide a sustainable environment. RCUK is co-ordinating ambitious cross-Council programmes to address these challenges that will involve new ways of multi-disciplinary working and combine resources from a range of bodies. We also have a wider role in communicating the major impact of engineers and engineering innovation.

Future research will require appropriately trained multidisciplinary researchers. The Research Councils currently support over 3300 PhD students in the area of engineering, which include over 600 Engineering Doctorate (EngD) Research Engineers. The EngD is a radical alternative to the traditional PhD, being better suited to the needs of industry and providing a more vocationally oriented doctorate in engineering. Using a similar centre-based approach to training EPSRC will also be increasing the number of PhD Doctoral Training Centres which focus on specific research themes, many relevant to engineering, and involve strong industrial

295 engagement. In addition, BBSRC is increasingly supporting CASE studentships in bioengineering.

RCUK Introduction

1. Research Councils UK is a strategic partnership set up to champion the research supported by the seven UK Research Councils. RCUK was established in 2002 to enable the Councils to work together more effectively to enhance the overall impact and effectiveness of their research, training and innovation activities, contributing to the delivery of the Government’s objectives for science and innovation. Further details are available at www.rcuk.ac.uk.

2. This evidence is submitted by RCUK on behalf of Research Councils and represents their independent views. It does not include or necessarily reflect the views of the Science and Innovation Group in the Department for Innovation, Universities and Skills. The submission is made on behalf of the following Councils:

Biotechnology and Biological Sciences Research Council (BBSRC) – Annex A Engineering and Physical Sciences Research Council (EPSRC) – Annex B Medical Research Council (MRC) Natural Environment Research Council (NERC) - Annex C Science and Technology Facilities Council (STFC)

3. All the above Research Councils have contributed to the main text of this response; some councils have provided additional specific information about their research in separate Annexes, as indicated above.

Definition of engineering

4. The international review of UK engineering research, ‘The Wealth of a Nation’151, jointly organised by EPSRC and the Royal Academy of Engineering and published in 2005 stated that engineering creates goods, services and infrastructure that benefits human kind. The breadth of research within engineering is demonstrated by assessment units of the 2008 RAE Engineering panel: • Electrical and Electronic Engineering • General Engineering and Mineral & Mining Engineering (includes aspects of bio and medical engineering) • Chemical Engineering • Civil Engineering • Mechanical, Aeronautical and Manufacturing Engineering • Metallurgy and Materials

5. Engineering is also of relevance in two areas outside the main panel: • Computer Science and Informatics • Architecture and the Built Environment

151 http://ire2004.org.uk/

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• Bio-engineering also includes tissue and protein engineering, biochemical engineering and bioprocessing, as well as aspects of bioremediation, food technology and bionanotechnology.

The role of engineering and engineers in UK society

6. Engineering makes an essential contribution to society, with engineers being involved in solving some of the most prominent issues affecting society today. Engineering research funded through the Research Councils is making an impact across a diverse range of areas, such as mobile communication technology, climate change mitigation and improving screening techniques to detect explosives.

7. The 2007 Royal Academy of Engineering and the Engineering and Technology Board study into ‘Public Attitudes to and Perceptions of Engineering and Engineers’152 showed that the public have little understanding of the social relevance of engineering or of the role that engineers play in society. The profile of engineering and engineers and the relevance of their work to society need to be raised with the public.

8. RCUK works to improve public awareness of engineering research and the role of research engineers in society. Engineering related press releases have attracted much media attention. Recent highlights include a practical solution to the storage of hydrogen for fuel cell powered cars, UK involvement in the international effort to produce a comprehensive model of the heart, and a debate about the issues surrounding future ‘rights for robots’. The BA Festival of Science provides an opportunity to engage with the public about engineering and how engineering tackles issues directly relevant to society. Topics have included flood prevention, urban design, transformation of brownfield sites, improving quality of life for disabled people, and the role of engineering research in sport development.

9. It is also important for Research Councils and engineers to understand the potential societal and ethical issues, aspirations and implications of engineering research. In 2006 EPSRC and BBSRC took part in the Nanodialogues to learn about public views around nanotechnology; as RCUK, we undertook a public dialogue about energy research priorities in 2007; and in 2008 EPSRC, on behalf of RCUK, will conduct a dialogue with the public about their views, aspirations and issues associated with nanotechnology for healthcare.

10. RCUK is just one of many stakeholder organisations with a role to play in highlighting the benefit of engineering and engineers to society. This is a key activity for organisations such as the Royal Academy of Engineering, the Engineering Technology Board and the Learned Societies, and we look for opportunities to work together as RCUK and with others to maximise influence, effectiveness and impact.

152 http://www.raeng.org.uk/events/pdf/Public_Attitude_Perceptions_Engineering_Engineers_2007.pdf

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The role of engineering and engineers in UK’s innovation drive

11. The primary role of Research Councils in the innovation ecosystem is to support world-class, leading-edge basic research and to sustain the supply of highly skilled people at postgraduate level. Research Councils also promote, in partnership with other stakeholders, the transfer of knowledge from their investments in the research base to potential users (private and public sector). The nature and outputs of engineering research demonstrate the fundamental importance of basic research in supporting innovation.

12. The Research Councils believe that research is crucial in informing and developing the solutions needed to address the Government’s five public policy challenges for the UK. RCUK is co-ordinating ambitious cross-Council programmes that will involve new ways of multi-disciplinary working, combining resources from a range of bodies, to address the key challenges. Each of the challenges highlighted will require researchers across the spectrum of engineering to be engaged if they are to achieve their objectives. • ‘Energy’ brings together energy-related research and training across the Councils to address the vital international issues of climate change and security of energy supply. • ‘Living with Environmental Change’ is an interdisciplinary research and policy partnership programme to increase resilience to – and reduce costs of – environmental change, addressing the associated pressures on natural resources, ecosystem services, economic growth and social progress. • ‘Global Threats to Security’ will integrate research into crime, terrorism, environmental stress and global poverty, to address causes of threats to security, their detection, and possible interventions to prevent harm. • ‘Ageing Lifelong Health and Wellbeing’ will establish new interdisciplinary research centres targeting the major determinants of health and wellbeing over the whole life course and reducing dependency in later life.

Table 1 - Planned expenditure for the Cross-Council programmes (£M)

AHRC BBSRC EPSRC ESRC MRC NERC STFC Total Energy 0 23 240 20 0 22 14 319 LWEC 5 16 26 20 57 237 2 363 Global 21 5 17 23 45 1 2 113 Threats to Security Ageing 1 41 31 30 370 1 12 485

Figures represent planned expenditure (£M) over CSR period. Figures are rounded to the nearest £ million.

13. In addition to the major cross-Council programmes, the Research Councils are working on two multi-disciplinary projects. These multi-disciplinary programmes are part of much larger bodies of work being undertaken by the Research Councils on these areas. Again both of these areas require engineering and engineers to be at the core of activities: • Delivering a Digital Economy through early adoption of Information and Communications Technology (ICT) tools supported by research capacity

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and skilled people, better positions the country to reap the economic and social benefits of technological change. • Nanotechnologies can transform society, they offer the potential of disruptive step changes in electronic materials, optics, computing, and in the application of physical and chemical understanding (in combination with biology) to generate novel and innovative self-assembled systems.

14. Further examples of major investments which require engineers to be leading research activity include: • Improving the quality of life of the UK citizen through the Sustainable Urban Environment programme, this aims to support the sustainable development of the UK economy. Multidisciplinary consortia have been funded, involving academic researchers from a range of disciplines working closely with a range of users, such as local authorities, town planners, city councils and charities. • Bringing new treatments a step closer by helping to develop faster and more efficient development and manufacturing techniques, through the Bioprocessing Research Industry Club (BRIC), a public-private collaboration between BBSRC, EPSRC and the UK biopharmaceutical sector. • Working to realise a step-change in energy research, development and demonstration (R, D&D) in the UK and internationally. EPSRC is the largest public funder of the Energy Technologies Institute (ETI)153, working in partnership with others, including the Technology Strategy Board. • Supporting research into sustainable power generation and supply, through SUPERGEN consortia. This multidisciplinary initiative is managed and led by EPSRC in partnership with BBSRC, ESRC, NERC and the Carbon Trust. The initiative aims to help the UK meet its environmental emissions targets through a radical improvement in the sustainability of power generation and supply.

15. The Research Councils are working closely with the Technology Strategy Broad to ensure the effective translation of knowledge into innovation and new and improved products and services. Effective working relationships have been developed through a range of partnership activities: • Collaborative R&D projects; for example the Research Councils are working with the Technology Strategy Board on its “Technologies for Health” call, for which TSB has set aside £15 M. • Innovation platforms addressing grand challenges, here a partnership of Councils and TSB are supporting a programme in Network Security, which also involved the Immigration and Passport Service. • Research Technology Clubs, there have been new investments made in the bioprocessing, and diet and health areas. • Knowledge Transfer Networks (KTNs), the networks can act as agents towards the identification of Small and Medium-sized Enterprises for Research Council schemes such as Industrial CASE.

153 www.energytechnologies.co.uk

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16. We recognise the importance of strong partnerships and engagement with research users to improve, and increase, knowledge transfer and economic impact. Engineering Research supported by EPSRC has significant levels of interaction and collaboration with business and users. In total 34% of EPSRC Engineering Grants are conducted in collaboration with users, involving approximately 1800 companies, with the combined cash and in-kind contributions valued at over £244 M over the lifetime of the projects. Other Councils also have many and varied interactions with industrial and other users, such as BBSRC’s Industrial Partnership Awards.

17. EPSRC has developed Strategic Partnerships which provide a framework for supporting mutually beneficial activities with more than 20 companies. The partnerships that have significant engineering interest include:

• BAE Systems • Carbon Trust • Proctor and Gamble • ARUP

18. To enhance and stimulate leading-edge research, the Research Councils support major centres of excellence whose key role is to bring academia and industrial research expertise closer together to enable innovation: • EPSRC currently supports 16 Innovative Manufacturing Research Centres (IMRCs). This provides the UK's leading manufacturing researchers with a base of stable yet flexible funding, enabling them to be responsive to the needs of UK industry and pursue strategic research themes in partnership. • Innovation and Knowledge Centres are centres of excellence to accelerate and promote business exploitation of an emerging research and technology field. Their key feature is a shared space and entrepreneurial environment, in which researchers, potential customers and skilled professionals from both academia and business can work side-by-side to scope applications, business models and routes to market. • The £10 M Interdisciplinary Research Collaboration in Proteomic Technologies funded by BBSRC and EPSRC is a unique research programme to advance proteomics and its application in the life science and biomedical research. Drawing on interdisciplinary and complementary skills it aims to design new proteomics methods and equipment that will solve cutting edge research challenges.

19. Research Councils seek to accelerate the commercial impact of the research they fund with the Follow-on Fund which supports researchers through the early stages of development, enabling promising research outputs to be translated into a commercial proposition which the market is then able to pick up. People movement is also a key enabler of knowledge transfer. Research Assistants Industrial Secondments (RAIS) encourages the transfer into business of knowledge gained by Research Assistants working on EPSRC projects. Research Assistants are seconded for up to 12 months to a company at the end of the research project. The company will usually have been a collaborator on the research project.

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The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity

20. People are at the heart of knowledge and skills; a secure future supply of researchers is essential for the research base and industry to be able to respond to as yet unforeseen challenges, to identify future opportunities, and to transfer knowledge. Research Councils continue to make major investments in innovative doctoral training provision.

21. The Research Councils have a joint strategy for enhancing the quality and output of the UK research base through training the next generation of world-class researchers. They will assist universities to improve the quality of their research training and improve the employability of early stage researchers.

22. A UK Higher Education sector working group co-ordinated by RCUK and Universities UK is developing a revised concordat to support the Career Development of Researchers. It provides a statement of the expectations and responsibilities of research funders and institutions with respect to the management of researchers. It will be launched in June and include the principle that “Diversity and equality must be promoted in all aspects of the recruitment and career management of researchers”. RCUK also has a Memorandum of Understanding with the UK Resource Centre for Women in SET.

23. Discovery and innovation in engineering happen through creative people working in a high quality research environment. EPSRC currently supports over 8000 individual investigators who hold research grants across the breadth of engineering. Each Council also supports investigators applying novel engineering to specific application areas of interest. Individual engineers can also be supported via fellowships from postdoctoral through to senior academic fellows. EPSRC currently supports over 100 academic fellowships across engineering. Postdoctoral fellows are also supported across engineering through the joint Royal Academy of Engineering / EPSRC scheme.

24. A number of areas of research in the UK (including within engineering) have been identified as being unable to sustain the research capacity needed in the future, including the production of enough well-trained people and the development of leaders of research teams. EPSRC has sought to address this through Science and Innovation awards, which are large, long-term grants (typically £3-5 M over 5 years) supporting staff in a research group, with commitment from the host Higher Education Institution(s) to continue support after the end of the grant. So far EPSRC has funded, in partnership with the funding councils, 24 Science and Innovation Awards; including key areas of engineering such as electronics design, bio-chemical engineering, renewable energy, carbon capture, tribology and structural ceramics.

25. Much of the Research Councils support in postgraduate training is provided through the flexible funding to Universities to allow them to respond quickly to training requirements. It is hoped that a number of their key strategy inputs come from industry. In order to allow industry a direct input to meeting their training needs Research Councils allocate industrial CASE studentship awards directly to a

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company for a project and academic partner of their choosing. Over 200 Industrial CASE students are currently funded with direct relevance to engineering research.

26. EPSRC currently supports over 3300 PhD studentships across its delivery mechanisms with direct relevance to engineering research. Where we have appropriate data, three quarters of these students are male and over 85% between 20 – 30 years of age. In addition to PhD research carried out in fundamental engineering, the other Research Councils support PhD programmes across a spread of application areas from bio to earth engineering.

27. The Engineering Doctorate (EngD) was established in 1992 to provide a high- quality, broad-based doctoral research experience with a taught component relevant to the needs of users. A 2006 review154 of the scheme was ‘convinced of the value and performance of the EngD scheme, the quality of the intake and outputs, and the contribution it makes to EPSRC strategic objectives by providing high quality knowledge transfer through people’. The EngD is a radical alternative to the traditional PhD, being better suited to the needs of industry and providing a more vocationally oriented doctorate in engineering. EPSRC currently supports 620 EngD Research Engineers. EngD centres can be established in any area, however EPSRC has established the following centres in direct response to identified industry need: • Non-Destructive Evaluation – Imperial College • Systems Engineering – Loughborough University • Systems Engineering – University of Bristol • Nuclear Engineering – University of Manchester • Large Scale Complex IT Systems – University of York (to be announced)

28. Future research will require appropriately trained multidisciplinary researchers. The Doctoral Training Centre (DTC) mechanism offers a new and exciting approach to postgraduate training. Each centre, focused around a small number of research themes, has strong industrial engagement, both in the management and support for research. EPSRC plans to increase the use of such centres through support for approximately 25 further centres in both our strategic research areas and across the portfolio. Current DTCs relevant to engineering include: • Bio-nanotechnology, medical imaging and bioinformatics – University of Oxford; • Medical devices and related materials – University of Strathclyde; • Neuroinformatics – University of Edinburgh • Systems Biology (co-funded with BBSRC) – Universities of Manchester, Oxford and Warwick • Proteomic Technologies (co-funded with BBSRC) – University of Glasgow.

29. EPSRC provides funding for Masters training and currently supports just under 170 Masters Courses relevant to engineering.

154 http://www.epsrc.ac.uk/PostgraduateTraining/EngineeringDoctorates/ReviewOfTheEPSRCEngDCentr es.htm

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The importance of engineering to R&D and the contribution of R&D to engineering

30. Research Council expenditure on research and development that relies on engineering or contributes to it is substantial. EPSRC will continue to fund world class research in fundamental engineering; expenditure in 2007-08 will be £342 M. This level of expenditure is through 3470 individual grants across academic institutions. On current plans and dependent on the quality of proposals received by EPSRC, this expenditure will rise during the forthcoming Comprehensive Spending Review (CSR) period to £378 M in 2010-11.

31. Considerable areas of research not principally directed at engineering rely on engineering input or support, for example engineering has increasingly allowed the study of biological, chemical and physical phenomena at much smaller scales, remotely and in extreme or previously inaccessible environments. Recognising the significance of technology development, NERC has selected ‘Technologies’ as one of the seven themes of its new Strategy for 2007-12: ‘Next Generation Science for Planet Earth’155.

32. Across the Research Councils we are providing researchers with the flexibility to take the lead in engineering and related research through major grants to support programmes of longer duration, typically 5 – 10 years. We are aiming to enable the academic base to take advantage of a changing research landscape where traditional boundaries no longer exist. EPSRC currently supports over 122 grants above £2 M; examples of such larger awards have been included in previous sections.

33. The Challenging Engineering activity was developed to encourage young researchers to be creative and develop transformative research projects. EPSRC currently offers two strands of support: • Challenging Engineering funding provide individuals with large grants of up to £1 M to develop their research groups. To date 20 awards have been made. • Exploring the Future workshops aim to enhance the creative skills of engineers and support their career development.

34. It is important to ensure that researchers of all disciplines have access to world leading facilities, which would not be available without engineering and engineers. Research Councils, particularly STFC, provide researchers with access to international facilities and directly fund UK facilities where critical mass and centralisation offer more economic and appropriate provision than numerous localised facilities. These can be major facilities such as HECToR, a high-end computing resource, and the Diamond synchrotron, or smaller scale facilities such as the Engineering Instrument Pool managed by STFC on behalf of EPSRC which consists of over 60 portable research instruments. Individual Councils also have in-house facilities through their institutes and fund major capital equipment on

155 http://www.nerc.ac.uk/publications/strategicplan/nextgeneration.asp

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grants; through the current portfolio of engineering grants EPSRC has invested over £60 M in capital equipment.

35. Recognising that engineering underpins many of the technologies that will enable better provision, delivery and monitoring of healthcare in the future, EPSRC in partnership with other Councils and stakeholders has strengthened its healthcare strategy. The portfolio of research supported includes those which are researcher- led along side major activities in key areas developed in collaboration with stakeholders. Key activities include:

• A strategic partnership between EPSRC and Cancer Research UK to promote the application of imaging science to cancer research. This partnership will draw upon these strengths to stimulate the research base with challenges associated with clinical need and to ensure technology pull-through to clinical practice. • EPSRC and MRC are working closely with the National Institute for Health Research (NIHR) to align engineering and physical science research with clinical need.

36. BBSRC established a £3-4 M Tools and Resources (T&R) Development Fund to support small or short-duration, pump priming research projects and / or to bring together communities for collaborative purposes: £3.15 M has been awarded to 36 projects. In addition, BBSRC is running a Technology Development Research Initiative to which it allocated £7 M in 2006-07 and £6 M in 2007-08; EPSRC has allocated an additional £3 M.

37. Engineering has a vital role to play in research efforts to better understand climate change and inform adaptation and mitigation measures, for example: • STFC and NERC are responsible for the UK Government’s funding of the European Space Agency, ensuring UK participation in satellite programmes including a number dedicated to Earth Observation. • NERC and the Department for Innovation, Universities and Skills last year jointly established the Centre for Earth Observation Instrumentation156, which will strengthen the UK’s capability in this area. • The cross-Council Tyndall Centre for Climate Change Research has conducted considerable research into engineering issues related to climate change management and mitigation157,158.

156 http://www.nerc.ac.uk/research/areas/earthobs/programmes/eoinstrument/ 157 http://www.tyndall.ac.uk/events/past_events/cmi.shtml 158 http://www.eci.ox.ac.uk/research/energy/downloads/40house/40house.pdf

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The role of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering

38. The Research Councils partner with many other stakeholder organisations in order to promote engineering skills to the public and young people in particular. • EPSRC and Yorkshire Forward commissioned an experiment to understand the impact of enhancement and enrichment activities related to engineering on young people in the Yorkshire and Humber region (Engineering a Better World159). • The NOISE160 campaign targets 11-19 year olds, and uses a range of early career researcher role models to promote STEM skills and careers. This campaign is informally linked with the Science Council’s ‘Careers from Science’ project, and 15/24 role models are involved in engineering related research careers. • EPSRC is currently in discussions with the Engineering Technology Board as to how we can work effectively with them and others on the upcoming National Engineering Skills Campaign. • EPSRC, the Royal Academy of Engineering, the IET and ERA Foundation fund ‘Engineering Explained’161 which is a professional programme of activities and shows that take engineering into schools (run by Wendy Sadler alongside Science Made Simple).

39. The majority of EPSRC’s work in the promotion of engineering and engineering skills is delivered via the EPSRC researcher base, using public engagement grant funding from EPSRC. These activities cover a wide range of engineering subject matter, delivery methods and audiences. EPSRC currently funds 4 high profile champions (Senior Media Fellows162) who work proactively with the media to promote engineering related research.

40. EPSRC has also been active in encouraging the increase in research capacity and research leadership through the funding of research chairs - either to bring in a star recruit from outside the current UK academic base or funded in partnership with a third party such as the learned societies or industry. Examples of such chairs span the breadth of engineering including chairs in decommissioning engineering, healthcare engineering and casting technology.

41. The Research Councils will increase the attractiveness of research careers by promoting improved career development and management of research staff in research organisations and fostering a culture of continuous enhancement. During 2008 the strategy for research staff will be given greater emphasis, assisted by a revised Concordat to support the Career Development of Researchers163 and extending the role of the RCUK-funded UK GRAD skills Programme to include research-only staff164

159 http://eabw.cseprojects.org/ 160 http://www.noisemakers.org.uk/ 161 http://www.engineeringexplained.co.uk/ 162 http://www.epsrc.ac.uk/PublicEngagement/ActivitiesAndFundingForResearchers/SMF 163 http://www.rcuk.ac.uk/rescareer/rcdu/careermanagement.htm 164 http://www.rcuk.ac.uk/news/redevelop.htm

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42. RCUK works to promote engineering skills to teachers via a programme of Continuing Professional Development courses delivered by and through the Science Learning Centres. The pilot programme of courses included i) climate change – alternative technologies, ii) nanotechnology and iii) new materials. Topics have yet to be agreed for the Comprehensive Spending Review period, but will include engineering related research areas.

43. EPSRC supports a number of vacation bursaries with the aim for undergraduate students to gain experience of a research environment. EPSRC award the top 15 Universities (based on EPSRC income), £20,000 to support up to 10 students. The bursaries are intended to be used in shortage areas such as engineering and increase the number of people choosing a research career path from a variety of backgrounds.

44. In 2007/08 EPSRC is making payments of £11 M to universities for training and development opportunities to enhance the skills of researchers. In 2007, EPSRC made payments of £1.4 M to 28 organisations to support training and/or course development in the area of entrepreneurship with the aim of increasing business awareness and encouraging innovative approaches to the exploitation of research.

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ANNEX A – BIOTECHNOLOGY AND BIOLOGICAL SCIENCES RESEARCH COUNCIL

BBSRC funds engineering-related research in a wide range of areas, including:

• biochemical engineering, bioprocessing and scale up • metabolic engineering and protein engineering - e.g. for enhancing industrial productivity of microorganisms • tissue engineering and other engineering research for medical applications, including biomaterials and drug delivery (e.g. engineering principles applied to the design of polymer-based delivery systems). • aspects of bioremediation (bioreactors and processing systems) • food technology • aspects of technology development (including nanotechnology) - e.g. the use of materials science for lab-on-a-chip applications. • engineering principles for studying animal locomotion

Research is funded through responsive mode grants, research initiatives (directed mode) and core funding to the BBSRC-sponsored institutes, as set out below for current funding.

Responsive BBSRC and directed Institute mode grants Projects Total Estimated spend 2007/08 £36.5M £2.7M £39.2M No. of grants/projects 'live' on 29/02/08 350 26 376 Total value of grants/projects 'live' on 29/2/08 £124.8M £8.2M £133.0M

In addition BBSRC currently invests c£40m pa in bioinformatics research and, over the last six years, has contributed £3m to two Interdisciplinary Research Collaborations in nanotechnology.

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ANNEX B – ENGINEERING AND PHYSICAL SCIENCES RESEARCH COUNCIL

These tables give a summary of expenditure by financial year (07/08) and commitment over the lifetime of current grants in the Research Councils’ Engineering Portfolio.

Table 2 - Funding related to the role of engineering and engineers in UK’s innovation drive

Total committed through current Expenditure grants (£M) 07/08 (£M) Innovative Manufacturing Research Centres (IMRC) – a focused and strategic approach to the support and organisation of manufacturing research, to produce a greater impact and raise the quality of the research. 140.4 25.1 IMRC-Grand Challenge - to help IMRCs develop their portfolio to address major research challenges with the potential for significant impact on national manufacturing priorities. Projects have included: Regenerative Medicine, Innovation and Productivity, 3D-Mintegration, and Knowledge and Information Management through Life. 13.6 3.6 Large Scale Complex IT Systems - as IT systems become larger and more complex, businesses urgently need ways of identifying, analysing and predicting system behaviour. This initiative is establishing a national network of researchers and students who are skilled in the science and engineering of Large Scale Complex IT Systems. 5.1 0.5 Sustainable Urban Environment programme - aimed at improving the quality of life of UK citizens, supporting the sustainable development of the UK economy and meeting the needs of users of EPSRC funded research. 32.8 4.7 SUPERGEN – aims to help the UK meet its environmental emissions targets through a radical improvement in the sustainability of power generation and supply. 39.8 8.5 Joint grants with Technology Strategy Board 37.4 9.4 Wired and Wireless Intelligent Networked Systems (WINES) Programme – aims to build inclusive, multidisciplinary consortia that focus on high risk and high potential research in the realm of ubiquitous computing 17.2 4.4

Table 3 - Funding related to the importance of engineering to R&D and the contribution of R&D to engineering

Total committed Expenditure 07/08 through current grants (£M) (£M) Total Engineering portfolio 1579.4 341.9 Medical Engineering 124.1 25.9 Challenging Engineering 16.4 TBC

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Table 4 - Number of engineering research staff supported by current EPSRC research grants

Staff Type Number Investigators 8423 Postdoctoral Research Assistant 2635 Post Graduate Research Assistant 1556

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ANNEX C – NATURAL ENVIRONMENT RESEARCH COUNCIL

NERC funds and carries out impartial scientific research in the sciences of the environment, and trains the next generation of environmental scientists. Details of NERC’s Research and Collaborative Centres are available at www.nerc.ac.uk. This annex is based on inputs from the British Antarctic Survey (BAS), British Geological Survey (BGS), National Oceanography Centre Southampton (NOCS), Plymouth Marine Laboratory (PML), Proudman Oceanographic Laboratory (POL), Scottish Association for Marine Science (SAMS), and Swindon Office Staff.

The role of engineering and engineers in UK society

1. There is a clear role for engineers and engineering in tackling many of society’s most pressing problems and improving quality of life. The problems include issues such as energy supply, natural-resource depletion, climate change, natural hazards and environmental pollution. These are major concerns for NERC, and it is therefore not surprising that our research findings often inform decisions that involve engineers and engineering. At the same time, much of our research is enabled by engineering, in particular the technologies required to obtain many types of environmental data. More is said on this in the section on research and development.

2. There is an important role for engineering scientists as well as engineers – i.e. for scientists trained in both scientific and engineering disciplines (typically in earth or technology science). These specialists often provide a link between research findings and their application.

3. An example of a wide contribution to society is that made by engineering geologists towards the management and mitigation of geohazards and difficult ground conditions. Engineering geologists act as an interface between civil engineers, structural engineers and planners to provide advice and guidance on best practice and operational procedures. Typically, this is in the form of commissioned research, which for BGS has recently included assessments of natural risks to the UK natural gas pipeline network and of seismic and landslide hazards in the United Arab Emirates. With colleagues in the EPSRC-funded Climate Impact Forecasting for Slopes Network (CLIFFS), engineering geologists at BGS are working with a wide arrange of disciplines including civil and structural engineers. The network seeks to develop our understanding of exactly how climate change will change landsliding in the UK, and how the impact to UK infrastructure can be minimised.

The role of engineering and engineers in UK’s innovation drive

4. NERC is a key partner in the Living With Environmental Change (LWEC)165 programme mentioned in the main RCUK text. Collectively, the partners involved in LWEC expect to invest approximately £1b in the programme over the

165 http://www.nerc.ac.uk/research/programmes/lwec/

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next 10 years. The programme will include engineering elements in support of its wide-ranging objectives, for example in the area of transport and urban systems.

5. LWEC is just one programme from which NERC expects the outputs to drive innovation in the engineering area. In common with the other Research Councils, NERC operates a number of funding schemes designed to encourage the exploitation of research outputs. As indicated in the previous section, much of the research conducted by NERC involves measurement technology, some of it engineered in-house for specific programmes. NERC has been able to commercialise some of this in-house technology, and to collaborate with industry in the development of other technology or the adaptation of commercial products; NERC’s research and collaborative centres will not generally develop their own technology if it is available “off the shelf”.

6. Funding schemes designed to facilitate R&D exploitation are detailed on NERC’s website166. For commercialisation they include the Innovation Fund (in support of outputs from NERC’s wholly-owned research centres only) and the Follow-on Fund167. NERC is also working with the Technology Strategy Board on its new programme for collaborative research and development, particularly on its Gathering Data in Complex Environments call168.

7. Particularly helpful in facilitating collaboration between the public and private sector are the Government’s Knowledge Transfer Networks (KTNs). The Sensors and Instrumentation KTN169, some of whose activities are supported by NERC, recently held meetings to address the difficulties involved in developing specialist environmental monitoring technology where only a small market exists.

8. In the context of commercialisation, the development of Autosub at NOCS deserves particular mention; two other examples from NOCS appear at the end of this section. Autosub is a world-leading autonomous underwater vehicle which was designed in-house for oceanographic research, in particular to provide a platform that could carry sensors into places difficult to access by ship, such as beneath polar ice, or to extend the coverage of a ship by being deployed to undertake routine measurements whilst the mother ship performs tasks such as coring. Autosub 1 technology has been licensed to offshore survey company Subsea 7 who intend to use the vehicle for mapping pipeline routes and charting the seafloor170. The investment possible through licensing has in part enabled NOCS to move on to the latest Autosub 6000 specification, which permits operation to 6000 metres and uses an innovative rechargeable battery system. NOCS’s world-class Underwater Systems Laboratory171 is active in solid-state sensor development and in further evolving autonomous underwater vehicle

166 http://www.nerc.ac.uk/using/schemes/ 167 http://www.nerc.ac.uk/using/schemes/3commercial.asp 168 http://www.technologyprogramme.org.uk/ 169 http://sensors.globalwatchonline.com/epicentric_portal/site/sensors/menuitem.b223bf3a83bde44f02c48 220ebd001a0/ 170 http://www.subsea7.com/rov_geosub.php 171 http://www.noc.soton.ac.uk/nmf/usl_index.php

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design, so that future Autosub derivatives will be able to hover in one place to take samples, and be equipped with high levels of on-board intelligence.

9. POL engineers often use their skills to adapt commercial technology for use in research, for example, the integration of primary sensors into larger measurement systems, such as frames and platforms to make measurements in the sea, and the use of X Band and HF radar. However, POL develops low-powered data loggers because they are not available commercially. The equipment POL develops is generally highly specialised and therefore not suitable for commercialisation.

10. Engineering geologists at BGS develop technological solutions to enable the measurement and monitoring of fundamental ground properties where there are no commercial alternatives. The Biologically Inspired Acoustic Systems (BIAS)172 project, supported by the Basic Technology Research Programme, is developing ultrasound equipment that mimics the acoustic behaviour of bats, enabling better characterisation of the subsurface. The outcome from the research will be a new set of instruments and processing methods that will have significant commercial potential.

Other examples of innovation and commercialisation by NOCS

11. Standard seawater is required to calibrate salinity measurement in every instrument used in the world. The former Institute of Oceanographic Sciences Deacon Laboratory (which became part of NOCS in 1995) developed a methodology and production system, and in 1989 this was privatised as Ocean Scientific International Ltd173. Since then, OSIL have been the only recognised provider of IAPSO Standard Seawater and provide salinity calibration standards worldwide.

12. The ability of a ship to measure the physical and chemical characteristics of the ocean whilst underway greatly expands the amount of useful data that can be gathered. The towed instrument SeaSoar was developed to be deployed on a cable behind the ship. SeaSoar undulates over the top 500 metres of the ocean gathering data. SeaSoar was licensed to Chelsea Instruments Ltd174 and has sold to research organisations and navies throughout the world.

Further background re the availability of deep-sea technology

13. Until the 1970s, virtually all oceanographic scientific equipment was developed and designed in-house in UK research institutions because there was no military or commercial requirement for equipment that could function at full ocean depth. Even now, military submarines only operate in the top 1000 metres of the ocean, usually the top 300 metres. This compares with civilian research submersibles rated to 4500 (Alvin, USA) and 6000 (Mir, Russia) metres. With the development of ever-deeper offshore oil and gas exploration and production, it is now possible to buy commercial off-the-shelf (COTS) equipment rated to depths

172 http://www.biasweb.co.uk/ 173 http://www.osil.co.uk/ 174 http://www.chelsea.co.uk/Vehicles%20SeaSoar.htm

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in excess of 2500 metres, but 6000 metre ratings (the typical level NOCS aims to achieve) are still quite rare outside of the marine science community.

14. Since the 1970s, a large number of relatively small manufacturers – often ex- employees of research institutions – have established themselves in Europe, the USA, Australia, Canada and Russia. Many of these manufacturers employ fewer than ten people and it is common for only one or two products to be produced by the company. Some companies in the USA have been able to count on US Navy contracts to provide R&D funds and sufficient baseline orders to ensure many years of trading stability. In Europe, military funding is less significant and the main customers are civilian oceanographic research centres, the offshore oil and gas exploration and production sector, and agencies concerned with monitoring the marine or freshwater environment. Companies tend to expand their product range through acquisition of other specialist companies.

The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity

15. NERC has a large engineering base, with engineers located at many of its laboratories and for long periods in the field, e.g. on ships and aircraft. It also supports several PhD studentships with an emphasis on engineering, in the categories of “Technology for environmental applications” and “Earth engineering”. The paragraphs below present information about the skills base particularly in the marine science and engineering geology areas as perceived by a selection of NERC’s research and collaborative centres.

16. POL has 18 engineers, of whom most are electronic engineers, and an apprentice engineer. POL supports engineers to further their studies by supporting part-time MSc and PhD projects. POL has 1 chartered engineer, 1 pending and more interested in becoming chartered with the Institution of Engineering and Technology (IET). POL has difficulty attracting good applicants for engineering posts because NERC salaries are not competitive (see also below). POL would like to recruit more engineers but lack of funding prohibits this. POL engineers often work with others from external organisations, e.g. coastal engineers interested in flood defences, and University engineering departments including Liverpool and Plymouth Universities.

17. National Marine Facilities175 at NOCS includes the Underwater Systems Laboratory mentioned above, and the engineering capabilities of the Sea Systems176 section. Although NOCS uses external contractors to fabricate large items such as carbon-fibre battery cases or Autosub external skins, Sea Systems is able to meet other engineering needs. Support for the ocean engineering work at NOCS comes at least partly from NERC’s National Capability funding stream.

18. Technical staff at National Marine Facilities are recruited with appropriate qualifications but are trained in-house or through external agencies to achieve proficiency in the use of the workshop facilities. Sea-going staff are further

175 http://www.noc.soton.ac.uk/nmf/ 176 http://www.noc.soton.ac.uk/nmf/sea_sys_index.php

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trained to ensure safe and competent execution of engineering duties onboard moving platforms (ships) remote from full-scale workshop facilities. The graduate staff come from engineering courses from UK and overseas universities. NOCS trains and supports PhD and EngD students, and encourages their integration within the science teams to ensure a culture of providing engineering solutions to scientific requirements. National Marine Facilities exists to serve the needs of the whole UK marine science community, not just Southampton-based researchers.

19. NOCS in particular observes that there is a shortage of engineering staff in the marine and offshore sector, and that there are problems retaining newly trained PhD staff because their skills are greatly valued by other sectors such as banking and insurance who pay far higher starting salaries. Although the marine and offshore industry sector frequently laments the shortage of engineers, few companies in this sector pay sponsorship to students or contribute to the scholarship and bursary funds operated by Learned Societies and Professional Bodies. Where funds are available, awareness of them among students is not always high.

20. BGS employs 13 engineering geologists, i.e. staff with formal training in an engineering discipline and further training in earth science or vice-versa. Chartership for these staff is through CGeol rather than CEng, as this is more appropriate to the BGS role; 5 staff are chartered through this route. There is currently an acute skills shortage in the field of engineering geology in the UK and worldwide, with demand for post-graduate qualified staff far exceeding the capacity of the few Universities with active MSc courses. BGS provides limited support, including project supervision, to PhD and MSc students through its University Funding Initiative (BUFI). In addition to engineering geologists, there are a number of technical staff, and many staff with engineering skills, who work predominantly offshore or in support departments.

21. It is well known within the scientific community that sustainable development will require greater reliance upon engineering geology skills, for instance in sustainable flood management and ground shrinkage design. However, the construction industry has little incentive to invest in training the necessary staff (even though it is willing to pay premium wages to qualified staff). The UK training base in engineering geology has been significantly depleted in recent years and could fall below a critical mass which would be difficult to rebuild. The implications for the UK environment and economy could be serious.

22. Commercially this is an opportunity for NERC, with BGS already performing the role of earth-science consultant to clients who realise that skills have been lost. NERC may in any case need to address the training needs in this area as it develops the LWEC programme and its other work under the Natural hazards, Climate system and Sustainable use of natural resources themes in its new strategy. There is already greater recognition for technology in that new strategy (see next section) and in the Oceans 2025 programme (the coordinated block- funded marine research programme), and this should help to improve the technology skills and facilities base in the NERC research community.

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The importance of engineering to R&D and the contribution of R&D to engineering

23. As mentioned in the main RCUK text, NERC has acknowledged the significance of technology development, both in support of research and as an aim of many areas of research, by selecting “Technologies” as one of the seven themes in its new Strategy for 2007-12: “Next Generation Science for Planet Earth”. NERC intends to create a framework for technology development that includes: improving and upgrading existing technology to ensure it remains state-of-the-art; funding proof-of-concept studies for new technology; developing prototypes that are tested in the environment; and funding grants to develop and maintain UK skills and capabilities for the longer term.

24. The science missions of most of NERC’s research and collaborative centres would be impossible without the products of engineering, and the expert knowledge of engineers, either in-house or as contractors or both. In the marine science area, engineering (especially electrical and mechanical) continues to enable a considerable proportion of the research undertaken, not just sea-going work but also applications such as the tide-gauge development and maintenance conducted by POL. In the view of NOCS, “without engineering, we would know no more about the oceans than the ancient Greeks and Romans”. NOCS’ science programmes rely upon the ability to make measurements, gather samples, or obtain images from above, within and underneath the bedrock of the global ocean, which averages over 3000 metres depth. Every 10 metres gives an atmosphere of pressure, so measuring equipment, often complex, has to function perfectly at 600 atmospheres at 6000 metres. In order to obtain remote-sensed data of the ocean, NOCS and others rely upon orbiting satellites, global wireless datalinks, submarine optical cables and other highly sophisticated systems that are products of engineering. See for example the monitoring of southern elephant seal behaviour in a project led by the Sea Mammal Research Unit (SMRU) in association with BAS177.

25. The polar oceans are particularly remote and inhospitable environments to study, and the advances made in developing autonomous instruments able to remotely monitor numerous parameters over extended periods have helped to overcome the limitations posed by, for example, the short-term duration of most field campaigns. At SAMS, close working between the Sea Ice Group178 and the Marine Technology Group179, i.e. between scientists and engineers, has significantly aided such advances (see also below regarding Autosub development). These groups are at the cutting edge of the development of sea-ice- mounted autonomous platforms. Since 2000, SAMS has developed and deployed, in both the Antarctic and Arctic, over 30 systems as part of programmes funded by NERC, the EU, Canada, Denmark and Norway.

26. NERC’s research on climate change and other aspects of the earth system relies on a wide range of facilities and technologies, from ships and aircraft to earth

177 http://www.antarctica.ac.uk/press/press_releases/press_release.php?id=308 178 http://www.sams.ac.uk/research/departments/physics-department/sea_ice 179 http://www.sams.ac.uk/research/departments/physics-department/marine-technology

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observation satellites to high-performance computers (e.g. HECToR). The Committee is invited to refer to NERC’s submissions to the 2007: A Space Policy and Investigating the Oceans inquiries for more details of some of the facilities and funding, and to details of facilities provision on NERC’s website180.

27. In addition to using engineering in support of its research and to developing innovative technology, NERC plays a role in informing engineering decisions by investigating potential environmental impacts. Some of this occurs through NERC’s support of engineering-related cross-Council and partnership programmes such as the Research Councils Energy Programme181 and the Flood Risk Management Research Consortium182. NERC’s research and collaborative centres, e.g. geological expertise at BGS and ecological expertise in NERC’s marine centres, are important sources of potential collaborative effort, evidence or advice, within and outside such programmes.

28. PML comments that in some well-developed technologies there is a good relationship between marine science and engineering, probably because there has been time for mutual interest development and application of the technology. However, in some emerging areas, e.g. marine energy technologies, application outpaces the assessment of environmental impacts. The engineering may have advanced to demonstration devices or, in the case of marine wind power, the establishment of large-scale offshore wind farms, before issues of environment sustainability are addressed. This may reflect a lack of timely cross-discipline communication, in this example between engineers, marine scientists, social scientists and economists.

29. The environment (e.g. climate change) is one of the key drivers for the shift in energy policy, but ironically it is not always considered in the solutions. These may then “backfire” and receive a bad press that could have been avoided. PML suggests that marine scientists and engineers would benefit from closer communication when developing solutions to important issues, for example through: a. databases of expertise/interest (a form of "on-line dating") for those who aren’t able to attend meetings other than discipline-based meetings/workshops; and b. "issues - solutions" multidisciplinary workshops at an early stage in the development of a technology; these could focus on creative, cross-disciplinary knowledge exchange, improve mutual understanding of the wider issues and facilitate future collaboration.

30. Successful communication at the planning stage can occur where scientists are involved in the programme steering committees for major projects such as satellites, autonomous vehicles and advanced computer systems. For example, NOCS scientists were part of the Huygens programme that successfully landed a probe on Saturn’s moon Titan. The Huygens engineers needed to know what characteristics the surface of Titan might have so that the lander could be designed to withstand the conditions. There might have been a methane ocean on Titan, hence the involvement of oceanographers who could advise on what the properties

180 http://www.nerc.ac.uk/research/sites/facilities/ 181 http://www.epsrc.ac.uk/ResearchFunding/Programmes/Energy/MoreOnProgramme.htm 182 http://www.floodrisk.org.uk/

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(e.g. wave conditions on a frigid moon) might be. Nearer to Earth, it is normal for oceanographers to be involved in the design of instrumentation for earth- observing satellites. It should be noted that in the satellite remote-sensing community a number of scientists hold engineering rather than physics backgrounds, and they have migrated from instrument development to operational use.

31. NOCS scientists and engineers worked closely together to develop the Autosub series of vehicles. Initially Autosub was driven by a science requirement (i.e. sensor platform for difficult-to-access areas), and by the engineers’ desire to be able to fulfil that requirement. The vision of senior NERC staff at the time was critical in driving a potentially risky programme to completion. NERC also needed to face the risk issues inherent in deploying expensive platforms in circumstances where there was a high probability of loss, such as under Antarctic ice sheets. Lessons learned from Autosub have been very helpful in other areas of operation, such as risk management in the Rapid Climate Change programme183 moorings array across the North Atlantic.

32. As well as using engineering in its monitoring work, BAS has a particular interest in engineering in support of the design of its Antarctic bases, for example in the context of energy efficiency184 and to cope with the changing environment and snow-cover185.

The role of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering

33. Professional Bodies such as the Institute of Marine Engineering, Science and Technology IMarEST186 and Learned Societies such as the Society for Underwater Technology187 have important roles in the advocacy and promotion of engineering. They also provide accreditation of skills, platforms for shared knowledge, and continued professional development which is essential in this field. For staff who did not enter marine science through the academic route but through industry, professional status (e.g. chartered marine engineer; chartered marine scientist) afforded through IMarEST and other Professional Bodies ensures recognition of competence and enables free cross-sector transferability of employment. Sea Vision UK188 performs a useful role in encouraging young people to consider careers at sea, but the message is targeted at deck crew rather than engineers.

34. In the engineering geology area, practitioners typically qualify via an MSc course (at one of four UK HEFC Universities – Leeds, Portsmouth, Imperial College and

183 http://www.nerc.ac.uk/research/programmes/rapid/ 184 http://www.antarctica.ac.uk/about_antarctica/environment/energy/technology.php 185 http://www.antarctica.ac.uk/living_and_working/research_stations/halley/halleyvi/ http://www.antarctica.ac.uk/living_and_working/research_stations/halley/halleyvi/?page_id=5 186 http://www.imarest.org/ 187 http://www.sut.org.uk/ 188 http://www.seavisionuk.org/

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Newcastle), or a PhD, often at one of these institutes. The accrediting professional body is the Geological Society of London. As indicated above, training needs in this area need to be addressed to ensure the maintenance of capability for sustainable development. There may be a role for NERC and EPSRC in helping industry to recognise the growing problem and encouraging it to help to fund the necessary training.

35. At a global level there is a good supply of engineering graduates, with China and India now forging ahead of Europe. However, engineering in the UK still lacks the esteem with which the profession is held in other countries such as Germany, in part because of the way in which we use the term ‘engineer’ to denote the person who fits our satellite dish or unblocks the drain. Engineering is perceived as a difficult subject which requires better mathematical ability than our education system is routinely able to instil. Role models in engineering are not adequately promoted in the UK – the public see TV chefs, sporting heroes and singers, but few engineers or scientists. Earlier generations may have been inspired by role models such as Jacques Cousteau, by publicity for the growing North Sea oil industry, the Apollo moon-landing programme, or the engineering in TV fiction – e.g. the vehicles designed to rescue people in Thunderbirds or Mr Scott of the USS Enterprise. Paragraphs 7-10 of the main RCUK text describe Councils’ awareness of the need to raise the profile of engineers and engineering in society, and some of the initiatives being supported.

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Memorandum 48

Submission from the Learning Grid

Executive Summary

About the Learning Grid

1. The Learning Grid is an industry-led programme that supports and promotes educational activities in the area of engineering, science, maths, design and technology. This initiative came from business people working with the Department of Trade and Industry, now BERR, who valued these activities and were keen to see Government support going directly to them. The Learning Grid has been in operation for two years and was established as a not-for-profit company in early 2007.

2. We support high-quality, proven activities that offer young people an insight into engineering. This support takes the form of quality accreditation, funding, promotion through an annual teachers’ guide and opportunities for collaboration including an annual celebration of engineering, the Rockingham Festival.

3. The heart of the Learning Grid is the Quality Standard, which reflects industrial and educational measures of effectiveness. Any activity may put itself forward for accreditation. Applications are assessed by an independent panel of teachers and industry representatives. The panel has received 30 applications, of which 15 have been approved.

4. This submission is made in association with the following organisations, representing the 15 Quality Standard activities:

− Primary Engineer − Engineering Your Future − F1 in Schools − Greenpower − Young Engineers − The Smallpeice Trust − The Engineering Development Trust − Shell Eco-marathon Youth Challenge UK − The Institution of Mechanical Engineers − The Imagineering Foundation − The Youth Engineering Show

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Evidence and recommendations

5. The work of the Quality Standard assessment panel supports the view that the UK is fortunate to have a superb range of proven initiatives that offer young people practical experience of engineering and related subjects. Engineering is an applied science and these high-quality activities give opportunities for ‘learning by doing’ that are infrequently available as part of the regular curriculum and that address both teachers’ and employers’ priorities.

Recommendation 1: The educational benefits of well-designed engineering- related activities are supported by teachers and industry. The contribution of these activities should be acknowledged in any policy framework seeking to address the supply of engineering skills in the UK.

6. Our experience leads us to treat with caution the frequently-expressed view that there are too many initiatives, that this is unhelpful and confusing and that consolidation should be the first objective. The diversity and dynamism of engineering-related initiatives is an opportunity not a threat.

Recommendation 2: The policy framework should allow for diversity and innovation. It should reinforce success and provide incentives for collaboration rather than seeking to ‘tidy-up’ provision based on a top-down view.

7. Evaluation of our grant-making activity suggests that strategic investment in the Quality Standard activities is effective in expanding the number of participants and offers good value for money. Taking 11 of the 15 activities, for the most recent year for which figures are available the number of participants had risen by 42% year-on-year and at the same time the overall cost per participant had fallen by 17%. However Government funding (excluding the Learning Grid) accounted for just 2¼% of income, having halved from the previous year.

Recommendation 3: Investment in delivery should be made to ensure that every pupil has the opportunity to take part in a high-quality engineering-related activity at each stage of their educational progress, with the primary aim of securing the direct benefits for that individual young person. This investment should be open to all providers with the capacity to deliver to a high standard across the UK.

8. Evaluation carried out by the initiatives gives a consistent picture: students value their experience and – in addition to the direct educational benefits of taking part - a majority state that participation has influenced either their career choices or their choice of subject options. Whether these young people are in fact more likely to follow a particular career path in later life is

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a question that is always asked by policy-makers and that the Learning Grid and Quality Standard initiatives are not resourced to answer.

Recommendation 4: Government should establish a longitudinal study to assess the influence of school-based engineering activities on eventual career outcomes. This would complement the existing, short-term assessment of changes in pupil intentions immediately after the activity has taken place.

About the Learning Grid

9. The Learning Grid programme was initiated by business people represented on the Motorsport Competitiveness Panel of the DTI, from companies including Ford, Jaguar, Caterpillar and Prodrive. Secretary of State Patricia Hewitt accepted the Panel’s recommendations in July 2003.

10. The Motorsport Competitiveness Panel’s report189 noted:

Motorsport is a powerful factor in attracting young people into engineering. Student motorsport competitions are an effective means of complementing traditional engineering education, by helping students acquire those skills and attributes most in demand from employers. These advantages are not fully realised at present owing to a lack of overall direction and insecure funding.

11. The report made clear however that this was not a programme for the motorsport sector, but rather a motorsport-themed contribution to the wider economy. A separate programme (the Motorsport Academy) is charged with skills and qualifications development for the motorsport sector. As the programme developed, it soon became clear that it had to encompass all engineering-led activity if it was to play a useful coordinating role.

12. The Learning Grid is funded by BERR and four Regional Development Agencies until 2009. The Institution of Engineering and Technology provides additional support under a partnership agreement. The programme has been based at the IET’s headquarters in Savoy Place since 2005.

13. The bulk of the Learning Grid’s funding is granted to initiatives. In the year to date, funding totalling £433K has been granted of which £410K relates to Quality Standard activities and the balance consists of development grants to activities with the potential to qualify in future.

14. The first task with which the Learning Grid was charged was the development of a Quality Standard for activities. This was created building on the experience of the Engineering Employers Federation and automotive trade association the Society of Motor Manufacturers and

189 http://www.motorsportdevelopment.co.uk/document_archive/Competitiveness_Panel_Report.pdf

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Traders. A briefing note190 is available that describes in more detail the criteria used and how assessment is carried out. The purpose of the Quality Standard is to give teachers, parents and companies the assurance that an activity is sustainable and effective. In addition, the annual monitoring process has provided useful information that had not previously been gathered.

15. An issue that the Competitiveness Panel wished to address was the volume of information being distributed about individual initiatives. The feedback from both teachers and companies was this was confusing and wasteful, with the different formats making comparisons difficult. The Learning Grid therefore developed an Activity Map191 and Guide192 in early 2006 to present this information more effectively and consistently. The current Guide 2008 is the third edition and feedback has been positive, with demand from individual teachers and advisory organisations such as SETPOINTs and Science Learning Centres accounting for all but a handful of the 15,000 print run.

Evidence

The value of hands-on activities

16. The Quality Standard assessment process reveals that the skills that young people develop on these programmes, as evidenced by the materials submitted for evaluation, are an exact match for the skills that employers typically say are needed. The committee will be familiar with the representations made by employers and trade associations over the years, typically including: − a sound understanding of technical concepts and how to apply them; − problem solving and continuous improvement; − effective teamwork; − project management and the ability to deliver on time; − written and oral communications; − self-motivation and confidence.

17. Engineering-led activities are often assumed to be primarily about technical skills and to have as their aim that participants should become engineers. As an observer of these activities it is evident that the impact can be far greater. Residential courses such as those run by the Smallpeice Trust and the Engineering Development Trust’s Headstart programme can have a transforming effect on the lives of young people; talking to the participants it is the responsibility, independence and interaction with adults on an equal basis that means as much to them as the engineering content. The competitive design and build activities bring different but equally

190 http://www.learninggrid.co.uk/ldocs/qualitystandard.pdf 191 http://www.learninggrid.co.uk/ldocs/activity_map.pdf 192 http://www.learninggrid.co.uk/ldocs/theguide_portrait.pdf

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significant benefits. We would therefore be wary of using subject choice or progression into a particular career as the only measure of effectiveness. An investment in these particular activities helps to create well-rounded, self-reliant individuals who will be an asset to society and the economy in whatever careers they choose.

18. That said, the evaluation evidence discussed below demonstrates a consistent impact from Quality Standard activities on student perceptions of science and engineering, whether as subject choices or as the basis for a career. The broader benefits described above are delivered in addition to, not instead of, the desired impact on young people’s educational and career choices.

Recommendation 1 The educational benefits of well-designed engineering-related activities are supported by teachers and industry. The contribution of these activities should be acknowledged in any policy framework seeking to address the supply of engineering skills in the UK.

Collaboration or rationalisation?

19. We would like to urge caution on two views that are so often stated (and no doubt will be repeated in other evidence) that the committee may well accept them as self-evident. These statements were also made in good faith at the inception of the Learning Grid and we have learned something of their limitations. The first is that there are ‘too many initiatives’ and the second is that as a result ‘teachers are confused’.

20. The range and variety of engineering-related programmes are sometimes presented as a nuisance. The Sainsbury review193 of October 2007 states:

However, at the current time far too many schemes exist. Each has its own overheads, few have more than a local coverage and teachers find it difficult to make sense of the vast amount of literature with which they are bombarded. (Para. 7.58)

21. We submit that this is a partial view. The current range of choices enables teachers to find the right option for specific needs of their school and their pupils. Not all teachers will have the time or inclination to embark on challenging competitions that last throughout the academic year; they may prefer a one-day activity or after-school club. An activity designed for primary school pupils is unlikely to suit secondary schools, still less colleges of further education. Finally, the opportunity to engage with a local employer may lead schools to look for an activity in a particular industry sector such as aerospace or marine. All of these are valid reasons for maintaining a diverse range of activities.

193 http://www.hm-treasury.gov.uk/media/5/E/sainsbury_review051007.pdf

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22. Past studies have tended to amalgamate well-established learning programmes such as the Quality Standard activities with short-term regional competitions and sometimes quite unrelated initiatives to arrive at a large headline number. For example, Sir Alan Wilson’s 2004 STEM mapping review194 is sometimes quoted as having found ‘478 separate initiatives’. An examination of the evidence reveals that this includes everything from research collaboration between business and higher education to payments made in recruiting teachers for scarce subjects. Given this, we would question whether the overall total is a meaningful number.

23. Our experience is that a policy response that sought to impose consolidation on established, well-understood and effective activities would be a mistake and would in any case be ineffective given the limited financial leverage currently exercised by Government. We would also suggest that the dedicated individuals who have developed these initiatives, often over many years, are entitled to greater respect. Such a policy response would also stifle innovation, since there would be a presumption against any new activity being developed.

24. The second assertion is that teachers are confused by the initiatives on offer. We suggest this concern is out of date. From the outset, it seemed clear that this must be down to presentation. If a typical supermarket can successfully present 15,000 different product lines to an indifferent cross- section of the population then it must be possible to enable professional educators to make sense of a few dozen curriculum enrichment activities in their field.

25. Our experience is that the Learning Grid activity map and Guide referred to above (Paragraph 15) are readily understood by teachers, who are best- placed to choose the activity that suits them. This view is borne out by feedback from users of the Guide (which includes 33 separate activity profiles). They cited lack of time and pressure from targets, rather than confusion on the part of teachers, as the main barriers to increased take-up of engineering activities.

26. The sheer volume of communications directed at teachers is clearly an area where enrichment initiatives have contributed to the problem in the past. The organisations associated with this submission have worked to reduce the number of separate documents they offer and to ensure that information is sent out based on user requests. The Guide itself was distributed as part of the Engineering and Technology Board’s ‘enginuity’ pack of information on careers resources which was both cost-effective and beneficial for users. There is a genuine willingness to collaborate among providers, which can deliver the benefits of rationalisation without the harmful effects of a top-down approach.

194 http://www.dfes.gov.uk/hegateway/uploads/Volume%201%20Main%20Report4.pdf

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Recommendation 2 The policy framework should allow for diversity and innovation. It should reinforce success and provide incentives for collaboration rather than seeking to ‘tidy-up’ provision based on a top-down view.

Return on investment

27. As a condition of their Quality Standard status, activities take part in an annual monitoring exercise. This includes data collection (on the understanding that this will only be presented in aggregate form), interviews with teachers using the activity and a report on development of the activity, particularly the scope for collaboration and joint working with others.

28. The first monitoring round in November 2007 has allowed the Learning Grid to assess the impact and cost of 11 of the 15 Quality Standard activities. This information is presented on the following page and is, we believe, the first time that such detailed analysis has been available. The 11 activities are: - Primary Engineer - Greenpower - F1 in Schools - Formula Schools - Formula Student - Young Engineer for Britain - Youth Engineering Show - Smallpeice residential courses - Shell Eco-marathon Youth Challenge UK - Headstart - Engineering Education Scheme

29. Of the remaining 4 activities, two have only recently received accreditation, one was too recent to provide prior year information and finally the K’Nex Challenge from Young Engineers, a Primary School activity, involves so many pupils that it would distort the overall picture. In the year to 30 September 2007, 103,446 pupils from 2,562 schools across the UK took part in the K’Nex Challenge. The majority of these would have undertaken only one day’s activity but there is a regional and, ultimately, national competition offering greater involvement.

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Table 1: Participant data for 11 Quality Standard activities

Measure Year 1 Year 0 Change

Total number of UK Universities taking part 60 59 2% Total participants from UK Universities 601 512 17%

Total number of UK Colleges taking part 65 69 -6% Total participants from UK Colleges 397 354 12%

Total number of UK Secondary Schools taking part 1,755 1,560 13% Total participants from UK Secondary Schools 9,346 8,468 10%

Total number of UK Primary Schools taking part 188 46 309% Total participants from UK Primary Schools 5,636 1,884 199%

Total participants 15,980 11,218 42% Total institutions 2,068 1,734 19%

Cost per participant (cash costs only) £210 £249 -16% Cost per participant (cash + in-kind) £277 £333 -17%

Table 2: Income and cost data for 11 Quality Standard activities Value of in-kind contributions £1,071,575 £ 943,575 14% Measure Year 1 Year 0 Change Total cost (cash + in-kind) £4,421,929 £3,737,473 18% Fees from participants, e.g. entry fees £1,034,500 £ 865,955 19% Industry sponsorship of individual events £ 83,750 £ 41,600 101% Industry sponsorship of overall activity £ 681,406 £ 581,257 17% Income from charitable trusts, individuals £ 827,015 £ 645,138 28% Learning Grid £ 405,000 £ 250,895 61% National (e.g. Govt. Departments) £ 76,233 £ 161,006 -53% Regional (e.g. Development Agencies) £ 25,000 £ 91,292 -73% Other income (e.g. commercial) £ 227,222 £ 191,921 18%

Income £3,360,126 £2,829,064 19% National Govt. funding relative to income 2.27% 5.69% -60%

Materials for use in the activity £ 190,093 £ 149,591 27% Permanent staff £1,164,121 £1,063,800 9% Contractors/consultancy £ 445,751 £ 338,102 32% Venue hire for events £ 620,886 £ 416,658 49% Other event costs, e.g. catering, AV hire £ 558,963 £ 512,443 9% Publications £ 131,535 £ 91,780 43% Other costs £ 239,005 £ 221,524 8%

Cash costs £3,350,354 £2,793,898 20%

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Source for both tables: monitoring returns from Quality Standard activities

30. Table 1 (participation) demonstrates that even this limited selection of initiatives reaches a high proportion of secondary schools and the great majority of Universities. The most recent figures from DCSF show that there are 3,343 maintained secondary schools in England, so around half of these schools are already taking part in an activity. Because many of the 11 are team-based activities and we have been rigorous about only counting registered team members, the number of pupils involved per school is understated. Even allowing for this, the number is still very low – fewer than six pupils per school. A collaboration between initiatives to introduce activities with wider participation into these schools would be particularly effective.

31. The proportion of primary schools engaged by contrast is very low – around 1% of the approximately 18,000 primary schools in England – but because activities typically involve the whole class, the number of pupils involved per school is 30. So the challenge is to multiply the number of schools taking part. This is being done particularly effectively by the Primary Engineer initiative, which offers training and support to secondary schools to work with teachers in their feeder primaries, with specialist schools acting as regional centres to spread the word.

32. Turning to the cost analysis, this demonstrates the low and falling contribution made by Government funding sources directly into delivery. Clearly for the activities in this table, Learning Grid funding has more than made up for the shortfall and has facilitated the growth in participation, but this is not currently an assured long-term source of income. Nor is a Learning Grid contribution of less than 10% of total cost sufficient to drive expansion on the scale required.

33. The key message from these figures, we suggest, is that an aspiration to reach every pupil with a high quality intervention at least once at primary school and once during their time at secondary school would be realistic, using current providers and at acceptable cost. Table 2 demonstrates the economies available from expansion, with a 20% increase in costs generating a 42% increase in numbers. As many costs rise with the number of schools involved, a successful campaign to increase the number of participants per school would be especially cost-effective.

34. Extrapolating from the figures above, we estimate that Government funding of the order of £15m per annum would achieve the objective stated above, drawing in additional private funds and with the average cost per pupil falling to under £50 from the current level of well over £200. Such a programme would build on proven capacity and expertise without the need to create new structures or the delay of setting up a new organisational model. It would be open to all providers and would include the networks and awards currently associated with the Quality Standard initiatives such as Science and Engineering Ambassadors, Young Engineers Clubs and CREST awards.

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Recommendation 3 Investment in delivery should be made to ensure that every pupil has the opportunity to take part in a high-quality engineering-related activity at each stage of their educational progress, with the primary aim of securing the direct benefits for that individual young person. This investment should be open to all providers with the capacity to deliver to a high standard across the UK.

Evaluation of outcomes

35. Robust evaluation is a requirement of the Quality Standard. The chosen measure is usually the impact on career and subject preferences, since those are the early indicators of ultimate career direction. It is striking that a wide range of activities produce similar results on this measure:

- 78% of students on Smallpeice Trust residential courses reported that they had been influenced to consider a career in engineering. The motorsport course scored highest on this measure (over 90%) with aerospace, biomedical and electronic engineering also well- placed. (Sample size 788)

- 87% of students on Headstart (a university-based residential course from the Engineering Development Trust) stated that they would definitely or probably study engineering. 71% said that the course had influenced or confirmed their choice of discipline. (Sample size 1179)

- 55% of students attending the Youth Engineering Show said that they were now more likely to choose an engineering career; an additional 34% said at the outset that they would ‘definitely’ or ‘probably’ choose engineering. (Sample size 1228)

36. At primary level, pupils’ career choice is clearly not an appropriate measure. Increasing the knowledge and appreciation of teachers towards design and technology as a subject and towards engineering are more useful objectives.

37. It is right that funders expect rigorous evaluation of outcomes. The difficulty that the Learning Grid and initiatives have in common is that the one measure all funders would like to assess – the ultimate career destination of participants – is prohibitively expensive for any one organisation to determine. Such an assessment would also require considerable expertise in research techniques and statistical sampling.

38. We would welcome a single, Government-endorsed longitudinal study that could draw on participant information from many different activities at all ages and assess their impact through young people’s educational careers and into the world of work.

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Recommendation 4 Government should establish a longitudinal study to assess the influence of school-based engineering activities on eventual career outcomes. This would complement the existing, short-term assessment of changes in pupil intentions immediately after the activity has taken place.

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Memorandum 49

Submission from the Engineering Council UK

1. This submission is intended to supplement the engineering profession’s joint submission, which we support. It looks in more detail at those issues where we feel we can offer additional insight and analysis.

2. Key points we make are:

• The engineering profession has established strong criteria for assessing professional engineers and engineering technicians (paragraphs 3-5, 11-13) • Engineering and the economy may suffer from failure to distinguish between engineering and science (paragraphs 6-9) • We suggest some reasons why the relatively healthy numbers of engineering undergraduates do not translate into adequate numbers of professional engineers, and explain how we are addressing this. (paragraphs 14-19) • We emphasise concerns about the supply of engineering technicians, while acknowledging promising developments with apprenticeships. (paragraphs 20-22) • In acknowledging the considerable effort and resource being applied to curriculum support and STEM outreach, we recommend more emphasis on evaluation of programme effectiveness. (paragraphs 23- 25) • Mathematics is fundamentally important to engineering. School- leavers rarely have the mathematics skills of previous generations in those aspects of mathematics most important to the study of engineering. Various steps have been taken by the profession and by universities to address this, but concerns remain. (paragraphs 26-27)

About the Engineering Council UK

3. Created as a result of the 1980 Finniston Report195, the Engineering Council UK (ECUK) regulates the engineering profession in the UK by licensing 36 professional engineering institutions who are then able to place suitably qualified members on ECUK's Register of Engineers. The Register has three sections: Chartered Engineer, Incorporated Engineer and Engineering Technician. The UK’s Register of around 250,000 professional engineers and technicians is the largest such register in the developed world.

4. ECUK has developed standards for registration which reflect employer needs. We work closely with employer organisations, and with the education sector, to ensure that the competences needed to practice engineering are understood, and that qualifications to underpin these are identified, and where possible accredited.

195 Cmnd 7794

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5. ECUK works with national regulatory bodies in many parts of the world, and has a good understanding of the standards applied in other developed and developing countries.

The role of engineering and engineers in UK society

6. We believe that engineering often suffers from its association with science. While a good grasp of science and maths is essential to practise engineering at every level, engineering also requires creative talent, and usually a greater ability to communicate with people not directly involved in the science – customers, fellow professionals and those who create and market engineered artefacts.

7. Hence engineers require a broader education than scientists, and their careers are far less likely to be in academia. Engineers from apprentices to senior managers require professionalism and communication skills – particularly as business and industry are placing greater responsibilities on technicians as well as professional engineers. Unlike the situation in the sciences, pathways exist for engineering technicians to progress into the highest echelons of the profession, and there are many examples of this - 8 of the last 25 IMechE Presidents served apprenticeships, for example.

8. These differences often lead to engineers being underappreciated; their contribution to the national science base is inevitably more muted, and the role of the engineer, the imaginative problem-solver, relegated to a support act (the idea that rocket scientists put the spaceship up – engineers fix it when it goes wrong). This highlights the need for engineering to be differentiated from science as a different, but equally worthwhile career.

The role of engineering and engineers in UK’s innovation drive

9. Because of the differences in the way professional engineers are trained and educated (professional formation), it is far less likely that they, unlike scientists, will come into contact with leading edge university research. It is much rarer in the UK than on the continent for senior engineering management to transfer between industry and academia. Despite much effort to improve knowledge transfer/exchange and technology transfer, industry/academia contact is limited –especially for SMEs.

The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity

10. We introduced UK-SPEC, as a national standard for registration of professional engineers, in December 2003. This was a changed approach, less prescriptive than before and deliberately designed to encourage innovative HE provision, and recognise the widening variety of pathways to engineering technician practice.

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11. Many of the issues facing engineering (recruitment, retention, maths skills) are global, and the UK has arguably been more successful than many other developed countries in addressing some of them196. However we are only too aware that much more could be done within UK engineering to tackle widespread and complex diversity issues197.

Higher Education

12. Transition issues meant that the effects of the standard are only just starting to be felt, with new types of HE courses appearing. We require that industry is always involved in accreditation processes. UK- SPEC gives credence to education programmes with strong industrial involvement – and these are the types of universities increasingly targeted by employers in their graduate recruitment. The Higher Education Academy Engineering Subject Centre has provided significant help in creating the circumstances in which good practice can flourish, and we work closely with it.

13. In order to keep pace with industry requirements, we encourage the professional institutions we license to embrace issues of systems design, sustainability and ethics.

14. We have also encouraged engineering academics in both further and higher education to become professionally qualified – we are concerned that many young learners are being taught engineering by those with limited engagement with the engineering profession. We are aware that the pressures of the Research Assessment Exercise can deter those in their early academic career from working towards professional qualifications. We would like to see engineering professional qualifications recognized in the next RAE/REF.

15. Significant numbers of engineering graduates are lost to the profession, although this varies between disciplines. There is some evidence this may be due to poor postgraduate training prospects. It is also possible that some entrants to undergraduate programmes lack the mathematics and science to cope.

16. Statistics indicate that the numbers of engineering graduates (home students only) has grown 6% in the past five years, reaching 16,300 in 2006198. With ONS identifying 425,000 professional engineers in the working population199, this implies a 53% higher replacement rate than would be required, assuming an average 40 year working life. The calculation is necessarily crude as many

196 FEANI Position Paper: Engineering Skills in Europe (2007); [US] National Academy of Engineering Report: The Engineer of 2020: Visions of Engineering in the New Century (2004) 197 E.g. extensive research by the Equal Opportunities Commission (now EHRC), UK resource centre for women in science, engineering and technology (including Athena/Swan datasets) http://www.ukrc4setwomen.org.uk/ Bagilhole et al. 2007; Faulkner, 2006 198 Engineering UK 2007: ETB: page 40 199 Engineering UK 2006: ETB: page 58

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pure scientists become engineers, and many of those who are claimed to be professional engineers are probably underqualified, but the ONS does not necessarily include individuals who have other job titles – managerial, military or other public servants. On the other hand there are indications of immigration of engineers from Eastern Europe – especially into construction, and retention of at least some of the non-UK graduates, particularly in academia. Clearly significant numbers of graduate engineers are not joining the profession.

17. Strong evidence for the declining availability of graduate training was found in the surveys conducted by DTI and Barclays Bank in the early 2000s. These showed successive decline in the numbers of engineering graduates finding graduate training programmes (to 32% in 2002)200, while an in depth study by Maillardet and Eraut (LiNEA)201 seemed to indicate that much graduate engineer training was narrow and of poor quality.

18. The HESA Longitudinal Survey for 2007202 reflects recent first destination surveys of graduates (6 months after graduation) in showing that engineering graduates are experiencing higher unemployment than the average for all graduates (11% in 2006). However, the same survey finds that engineering graduates experience amongst the lowest unemployment rates - at 1% - by three years after graduation. It seems very possible that, faced with a dearth of good engineering-related graduate training, and few jobs in engineering being available for those without experience, engineering graduates have reluctantly sought jobs in other sectors.

19. ECUK is currently working to develop a wider range of work-based qualifications that place emphasis on enabling more diverse access to HE, responding both to the government’s prioritisation of employer engagement, and a perception that the availability and quality of industrial training has not kept pace with the need for professional engineers.

Further education sector and vocational skills

20. The FE sector, including related work-based learning programmes supply a crucial and substantial part of the engineering skills base. Industry places increasing responsibility on levels 3 and 4 technical staff – technicians. However there is evidence that the UK lags far behind the continent in developing and nurturing technician skills, resulting in significant shortfalls at levels 3 and 4 in the broad engineering workforce203. LSC data indicates that engineering and manufacturing technologies (EMT) remained the most popular work- based learning sector subject area in 2006/07 (92,100 learners) – and there were 166,700 learners across EMT, construction, and ICT. In non

200 The Graduate Experience 2002 Report: March 2003: CEL (final of a series) 201 Early Career Learning at Work: LiNEA: Eraut and others: 2005 202 Destination of Leavers: Key Findings Report 2007: HESA: page 14 203 See for example Leitch Review p15

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work-based further education in 2006/07 there were nearly 559,000 learners across the same engineering disciplines.

21. However these numbers appear to be dropping year on year – around 22% down between 2005 and 2007 in FE, and 5% down in work-based learning. Moreover not enough are at level 3 or 4. It is important that full advantage is taken of the opportunity offered by the recent Apprenticeship review, including its welcome focus on diversity issues (only 2% of engineering apprentices are female and only 4% are from ethnic minority communities). The revision of Apprenticeship frameworks offers a timely opportunity to develop more Advanced Apprenticeship frameworks which link to ECUK standards for professional registration as an Engineering Technician.

22. Engineering benefits from significant numbers of adult learners, who often bring experience valued by employers. It is important that funding systems in both HE and FE provide adequate support for adult learners wishing to enhance their education and skills.

The role of professional bodies in promoting engineering skills and the formation and development of careers in engineering

23. There has long been in the engineering profession204 a widespread view that the best way to ensure a steady supply of engineers for the future is through supporting a broad and balanced curriculum – which reaches all young learners. This particularly includes mathematics, design & technology, and physical sciences, but is not by any means limited to these. Major programmes such as those funded by Gatsby, Nuffield, professional engineering institutions, and relevant subject associations (particularly mathematics, design and technology, and science), have been collected together and widely disseminated through the Shape the Future Programme directory. Together these form a set of outreach activities that might be scaled up to provide high quality first hand experience of inspirational and challenging engineering to every child. The work of these organisations and many others in similar fields is underpinned by the Science and Engineering Ambassadors scheme and the SETPOINTS run by STEMNET with Government funding. More work is needed, however, on ensuring that such activities reach more young people.

24. A call by the Engineering Education Alliance205 and more recently by the STEM Programme that all activities should have independent evaluation built in from the start needs to addressed to ensure that limited resources are being applied where they may have most effect.

204 e.g. Assistant Masters' and Mistresses' Association and The Engineering Council (1988). Schools Institution Working Group (1999), and National Institute for Careers Education and Counselling Interim Report to the Engineering Council, (2000) 205 EEA guidelines (2004): http://www.the-eea.org.uk/project_archive/resource_guidelines.cfm

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No major longitudinal study of progression choices, and curriculum and other influences upon these, has been attempted since 1980206 and such qualitative and quantitative insight would be of considerable benefit207. 25. We believe it would be wise to invest in such research into the long term efficacy of the various schemes, and to strongly encourage integral independent evaluation of relevant projects, so that future resource can be applied where it will have most effect.

Mathematics

26. As the joint response has indicated, a significant constraint on entry to engineering degrees (and a possible reason for relatively high drop-out rates) is lack of mathematics skills. This reflects shortages of well- qualified mathematics teachers208, and the changing nature of national examinations such as AS and A2. These serve a variety of purposes and we would not expect their syllabi only to be appropriate for those requiring extended mathematics skills in later life. However, the Engineering Professors’ Council has stated that “one of the problems facing all engineering departments [is] mathematics fluency of their new students…” It has also noted that “there [is] also a problem because of the downturn in the numbers taking the now-optional mechanics modules.” 209.

27. Universities have striven to accommodate change, and most engineering departments now offer some form of supplementary mathematics support during the first year. However this cannot be the only response. There are two developments which particularly merit wide support. Funding from DCSF has allowed the Further Mathematics Network (which ECUK has supported from its original pilot by the Gatsby Trust) to enable Further Mathematics A level to be studied by many who would not otherwise have such opportunity. It is important that the Network can continue to grow and that all involved in engineering – the profession, industry and universities – support it. The second development is the work done by a number of engineering educators and bodies to develop an applied mathematics unit to provide additionality to the new Engineering Diploma at level 3. This could develop into a more relevant qualification for engineering than Maths A level and should be strongly supported.

March 2008

206 Berthoud, R. and Smith, D. J. (1980). The education, training and careers of professional engineers: prepared for The Committee of Inquiry into the Engineering Profession by the Policy Studies Institute. Department of Industry. London: HMSO 207 EEA report into the barriers to engineering (2006): http://www.the- eea.org.uk/project_archive/barriers_into_engineering.cfm

208 The UK’s Science and Mathematics Teaching Force; Royal Society 2007 209 Notes from the meeting with Jacqui Smith, Minister for Schools: 22nd March 2006: www.epc.ac.uk

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Memorandum 50

Submission from the Chartered Management Institute

Executive Summary

• The Chartered Management Institute welcomes the opportunity to submit written evidence to the Innovation, Universities and Skills Select Committee as part of its inquiry into Engineering.

• The focus of this submission is the state of the engineering skills base in the UK and the critical need for engineers to have management and leadership skills.

• There are around 194,000 managers within the science, engineering and manufacturing sectors, the fifth largest number of managers in any sector represented by a Sector Skills Council. In addition, the Institution of Mechanical Engineers estimates that 76 per cent of professional engineers have a significant managerial function: for 36 per cent their main function is managerial; while for 24 per cent their main function is technological; and 40 per cent share both functions equally.

• It is by providing appropriate management and leadership skills to those with specialist engineering and technology skills, that individuals will be able to identify clearer career pathways through to management roles for which they will also be better equipped and prepared. This is a critical factor that could improve both the attraction and retention of highly-skilled engineers by employers, and will also drive organisational performance through better management and leadership.

• The Institute’s latest research published on 13 March 2008 “Management Futures: the World in 2018” examined the future skills needed for organisations to stay productive and competitive. Successful engineering companies in 2018 will be those with the leaders and managers who have the foresight to identify changes in the market. There will be a greater fluidity of skills and movement across different environments, with management skills, collaboration and political skills becoming critical alongside technical expertise. Engineers will need the vision to create synergy across different activities and be capable of harnessing innovation to deliver business results.

• Our overall recommendation is that, following on from a strong recommendation by the Committee, the Institute, in partnership with SEMTA, the Engineering Council and all its associated professional bodies in the sector, maps more closely the sector’s management and leadership needs in order to develop and deliver professional management qualifications for engineers.

1. Introduction

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1.1 The Chartered Management Institute (The Institute) is the only chartered professional body dedicated to management and leadership. We support 79,000 individuals and 400 corporate members and have a high level of engagement with employers across all sectors. Our members are employed at all levels of management within business, public sector and not-for-profit organisations.

1.2 Through the Management Standards Centre (MSC), the Institute is appointed by Government (QCA, DIUS, SSDA) as the Standards Setting Body for Management and Leadership. The MSC sets and maintains the National Occupational Standards on Management and Leadership, which is a national source of guidance for all those working in management.

1.3 The Institute works to promote management and leadership (M&L) skills across all sectors, and as such sets out its comments below. We focus on the role of the Institute, as a leading chartered professional body, in the promotion and development of management skills for engineers.

2. The business case for better management and leadership skills

2.1 We believe that the Committee’s final report should recognise the value to the engineering sector of improved management and leadership skills. To achieve an economy based on world class skills, UK employers will need to address critical management and leadership skills across all engineering sectors. We have set out below the business case for improving management and leadership skills at all levels.

2.2 The overall need for better M&L skills in UK businesses has never been greater. The challenges of global competition, demographic imperatives, worldwide economic uncertainty and moves towards a knowledge economy provide new incentives for UK managers to improve their skills and thus respond to commercial pressures.

2.3 As the Cabinet Office Performance and Innovation Unit’s 2001 Report on workforce development concluded210, demand for skills is derived from wider management strategies, and these therefore need to change if we are to successfully make the transition to a high skills, high added-value economy.

2.4 There are around 194,000 managers within the science, engineering and manufacturing sectors211; the fifth largest number of managers in any sector represented by a Sector Skills Council. In addition, the Institution of Mechanical Engineers estimates that 76 per cent of professional engineers have a significant managerial function: for 36 per cent their main function is managerial; while for 24 per cent their main function is technological; and 40 per cent share both functions equally212.

210 In Demand – Adult Skills in the 21st Century. A Performance and Innovation Unit Report – December 2001 211 Working Futures Sectoral Report 2004-2014, January 2006 212 Institution of Mechanical Engineers website, http://www.imeche.org/industries/management/cmi/

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2.5 The number of managers in the UK is predicted to grow by 1.3 per cent per annum between now and 2014, with growth now predicted to be faster than originally envisaged. The current estimate is that around 4.5m individuals in the UK have significant management responsibilities213, yet 36 per cent of organisations report that their managers are not proficient.

2.6 The business case for improving management and leadership skills is clear. Research based on longitudinal data and published by the Institute214 indicates that those employers who take responsibility for M&L development experience better overall organisational performance over a four year period. The research also shows that companies that provide training which is aligned to the organisation’s strategic business needs benefit most strongly.

3. UK plc and international competition

3.1 Despite a move in the right direction, unless Government, employers and skills delivery bodies prioritise management skills for current and future leaders, there is a real danger that we will not make the right management decisions to improve UK's international competitiveness. It is the skills and capabilities of leaders of organisations that determine how people are employed and whether resources are invested effectively. Particularly in the engineering sector, where foreign competition is strong and growing, this need to improve global competitiveness is essential.

3.2 The productivity gap between the UK and other leading nations has proved an intractable issue for successive governments. Up to 20 per cent of that gap is now attributed to skills provision. For example, differences in management practices between the USA and the UK explain 10 to 15 per cent of the productivity gap in manufacturing between the two countries. 215

3.3 In addition, the Department for Education and Skills' research paper, "Managerial Qualifications and Organisational Performance" (Bosworth, Davies and Wilson, 2002), identified the following key findings:

• Highly qualified managers are more innovative. They appear more likely to adopt strategies introducing new, higher quality products and improving the quality of existing products, while less qualified managers are more likely to be engaged in increasing the efficiency of the production of existing products and services; • Better qualified managers are associated with a better qualified workforce; • Management proficiency and performance appear to be positively linked (although this is a two-way relationship).

4. Engineering sector profile

213 Ibid 214 Management Development Works: The Evidence, Dr Chris Mabey, Chartered Management Institute 2005; Achieving Management Excellence, Christopher Mabey and Andrew Thomson, Chartered Management Institute, 2000 215 Management practices across firms and nations, Bloom et al., LSE-Mckinsey, June 2005, quoted in the Leitch Review final report, 2006

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4.1 The engineering sector is heavily dominated by small companies; 94 per cent of engineering establishments employ fewer than 50 people.216 Therefore, M&L skills provision must be specifically targeted at small and medium sized enterprises (SMEs), which can be hard to reach. SMEs can also find it difficult to find the time to release employees for training and development, meaning that innovative, more flexible training solutions must be offered.

4.2 SMEs are also potentially less able to cope with changing working practices such as part-time and flexible working. Properly qualified, professional managers will be better equipped to respond to growing demands for flexible working and new working arrangements, as the Government continues to introduce reforms and new workplace rights.

4.3 Moreover, recent research published by the Institute217 demonstrates the link between poor management performance and both low productivity and high reported levels of workplace ill-health. For example, the most widely experienced management styles in the engineering sector are reactive (35 per cent), bureaucratic (26 per cent) and authoritarian (25 per cent)218, with all three becoming increasingly common. Good management can reduce these stress factors and thereby drive higher productivity, lower costs and deliver social benefits through decreased absence levels.

4.4 The most significant positive net requirements for labour in this sector (for the period 2005-2014) are expected to be in relation to managerial occupations (an estimated 45,800 people), closely followed by skilled trades219. Therefore, it will be important for the sector to recruit and develop skilled managers and leaders. This presents a good opportunity for the sector to improve management and leadership skills across the board, and we urge the Committee to recommend that the sector implement not just technical skills training (such as tool setting and metal working) but management and leadership skills solutions as well.

4.5 Last year, 20 per cent of UK engineering establishments reported a gap between the skills of their current workforce and the skills required to deliver their business objectives220. Whilst these skills relate more to vocational skills (eg. technical and engineering skills) than to management and leadership skills, M&L skills will also be important in terms of delivering business objectives.

5. Delivering a qualified workforce – addressing future skills needs

5.1 We have highlighted the general lack of qualifications in the engineering sector. We would also point out that the UK's management population is also

216 Science, Engineering and Manufacturing Sectors Skills Council Sector Skills Agreement, 2007 217 The Quality of Working Life: Managers’ health and well-being, Worrall and Cooper, Chartered Management Institute, October 2007 218 Ibid 219 Ibid 220 Ibid

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significantly under qualified: under 40 per cent of managers are qualified in any discipline to Level 4 or above compared to 81 per cent of those in other professional occupations.221 Also, fewer than 20 per cent have a specific management qualifications222. This is reflected in the fact that employers report deficiencies in management skills, and the high failure rate of SMEs, which is in part due to UK companies competing less on unique value and innovation than their peers from other advanced countries.223

5.2 The Institute’s latest research published on 13 March 2008 “Management Futures: the World in 2018” examined the future skills needed for organisations to stay productive and competitive. Successful engineering companies in 2018 will be those with the leaders and managers who have the foresight to identify changes in the market. There will be a greater fluidity of skills and movement across different environments, with management skills, collaboration and political skills becoming critical alongside technical expertise. Engineers will need the vision to create synergy across different activities and be capable of harnessing innovation to deliver business results.

6. Professional bodies delivering professional qualifications

6.1 While an academic qualification may denote an individual’s competence and knowledge at a given point in time, it does not always provide evidence of the application of skills and an individual's practical impact in the workplace. Professional qualifications can combine evidence of impact with evidence of relevance through continuing professional development programmes.

6.2 The Chartered Bodies in particular are instrumental in defining the standards for their professions and the qualifications that recognise learning and skills. Evidence demonstrates that many more people take professional qualifications, usually paid for by their employer, than take NVQs or postgraduate academic qualifications in management-related fields as evidence of the relevance of what they do.

6.3 Recent Institute research into the “Value of Management Qualifications”224 includes a case study of the Team Silverstone development programme which combines classic classroom learning with practical track-side activities. The modules taken as part of the programme can provide the foundation for an Introductory Certificate or Introductory Diploma in Management accredited by the Chartered Management Institute.

7. The Institute’s offering to the engineering sector

7.1 The Institute works across the engineering sector to promote management and leadership skills qualifications. The Institute has established a partnership

221 Labour Force Survey data, March-May 2002 222 Final Report of the Council for Excellence in Management and Leadership, 2001 223 UK Competitiveness: moving to the next stage. DTI Economics Paper 3 by Prof. M Porter and Christian Ketels. May 2003 (Harvard Business School/ESRC) 224 The Value of Management Qualifications: The perspective of UK employers and managers. P Wilton, P Woodman and R Essex, Chartered Management Institute, September 2007

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with the Institution of Mechanical Engineers (IMechE), enabling its members to gain the Institute’s Diploma in Management (level 5) via a fast-track syllabus. The collaboration recognises the high level of management responsibility held by professional engineers. The Institute mapped its Diploma in Management against IMechE’s Chartered Engineer qualification and found that 50 per cent of the content was similar. Thus IMechE Chartered Engineers can gain the Diploma in a shorter timescale.

7.2 To date an initial pilot scheme is in progress, and the Institute is working with the Engineering Council to roll out such partnership arrangements to all Chartered Engineer awarding bodies in due course. Once Chartered Engineers have gained the Diploma qualification, they can go on to gain Chartered Manager status (see below for further details), which is the recognised measure for professional management capability.

7.3 It is also important for the Committee to acknowledge the value of continuing professional development (CPD), in addition to the more traditional formal academic qualifications such as A levels or an MME-related degree. CPD can provide a clear pathway into engineering-related careers, if new graduates can see the route towards management positions within a company, rather than being confined to technical roles.

8. How employers can deliver a more skilled workforce

8.1 The Sector Skills Agreement developed by SEMTA for engineering states that “employers in the [engineering] sectors are generally less likely to have a training plan (46 per cent) than the average for the UK economy as a whole (55 per cent).” The same patterns pertain to training budgets, with employers from MME sectors running several percentage points below the UK economy average. The Committee should, therefore, define training more precisely and make recommendations about M&L training for engineering sector companies.

8.2 The Institute’s own research has explored the value of management training and development.225 The Institute found that competency-driven management and leadership development (MLD), MLD driven by strategy, and giving employers responsibility for MLD, had the greatest positive effect on organisational performance.

8.3 When delivering training, it is very important that effective M&L training is given, provided by a qualified training provider and that any qualifications are fully accredited to an external nationally recognised standard. Employers with non-accredited in-house learning and development activities should consider the added-value that recognised management qualifications can offer in terms of employee motivation, the ability to attract staff and the organisation’s professional reputation.

225 Management Development Works: The Evidence, Dr Chris Mabey, Chartered Management Institute, 2005

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9. Chartered Manager – the national measurement of management capability

9.1 The designation of "Chartered Manager", introduced by the Institute in 2003, enables individuals with a management qualification and a significant commitment to CPD to gain externally validated recognition of their ability to deliver significant change in their workplace.

9.2 The six core leadership and management skills areas required to achieve Chartered Manager status226 are explicitly aligned to the skill areas identified in the National Occupational Standards for Management and Leadership. It therefore provides employers with a benchmark for professional management. As such, it could be promoted more widely by SEMTA to help drive demand for professional managers in the engineering sector.

9.3 Our website (www.managers.org.uk/charteredmanager) contains numerous case studies and testimonials describing how individual managers have benefited from becoming a Chartered Manager, for example managers from engineering companies such as BAE Systems, Rolls Royce, as well as from related companies, eg. Northern Ireland Electricity, EWS Railway Ltd, the Royal Air Force and the Royal Navy. Managers who have achieved the award cite numerous benefits, including: personal career advantages in terms of greater employability and promotion prospects; improving their ability to apply their management and leadership skills; and boosting their business knowledge, self-awareness and confidence.

10. Policy recommendations for skills training

10.1 In order to assist the Committee in promoting best practice in terms of improving management and leadership skills in the workplace, we have set out below some policy recommendations which should be applied to managers working within the engineering sector:

10.2 By 2020, at least 50 per cent of engineering managers should be qualified in management to level 4 or higher. This could help the sector attain its business performance goals and maintain international competitiveness.

10.3 Chartered professional bodies should be acknowledged by the Sector Skills Councils as a source of high quality learning and development in their specific fields, and SSCs should refer employers to the Institute’s wealth of information and advice on management and leadership issues.

10.4 Chartered Manager should be established by 2015 as a benchmark against which engineering firms and Government can recognise and measure professional management capability.

226 Leading people, managing change, meeting customer needs, managing information and knowledge, managing projects, processes and resources, and managing oneself.

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10.5 We believe that the Sector Skills Council for the engineering sector (SEMTA) should focus on promoting those higher level professional skills that, in their practical application, will have the greatest impact on both performance and also on leveraging the rest of the skills agenda. Professional managers play an essential role in developing strategies for workforce development. A great number of highly qualified managers are more likely to ensure that their teams are adequately trained and can help to embed a culture of learning and development that helps drive performance.

10.6 Our overall recommendation is that, following on from a strong recommendation by the Committee, the Institute, in partnership with SEMTA, the Engineering Council and all the professional bodies in the sector, maps more closely the sector’s management and leadership needs in order to develop and deliver professional management qualifications for engineers.

March 2008

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Memorandum 51

Submission from IET (The Institution of Engineering and Technology)

Executive Summary

Engineers perform a vital role in any society and engineering is an extremely varied field with many different specialisms and roles. The key to any definition of engineering is the creative application of science to solve the problems faced by society. The “invisibility” of so much of the technology in use today hides the complexity and achievements of the engineers who design, build and maintain it. It is evident that UK policy makers are becoming increasingly aware of the importance of engineering, and science to the UK economy.

The skills challenges facing the sector are very real and there is no single solution. It is vital that rectifying actions focus on increasing the supply of qualified engineers at all levels in many disciplines. We note that to date the actions focus on improving the image that young people have of engineering and on improving delivery of science, mathematics and technology in schools.

We believe that collaboration between all stakeholders (Government, industry, academia and the professional bodies) is fundamental to ensuring that the UK has the right people and skills to take full advantage of the opportunities offered by engineering and technology in the future.

1. Introduction

1.1. The Institution of Engineering and Technology (The IET) is one of the world’s leading professional bodies for the engineering and technology community. The IET has more than 150,000 members in 127 countries and has offices in Europe, North America and Asia-Pacific. The Institution provides a global knowledge network to facilitate the exchange of knowledge and to promote the positive role of science, engineering and technology in the world.

1.2. We fully endorse the joint evidence submitted to this inquiry by ECuk, the Engineering Technology Board and the engineering institutions to which we contributed. We have made this additional submission to provide further information.

2. The role of engineering and engineers in UK society

2.1. Engineers have played an important role in UK society for hundreds of years. The best way to examine their contribution is to define what engineering actually is. This is not an easy question to answer. The two definitions below came from discussions through the letters pages of our member magazine:

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2.2. “The IET defines an engineer as a person who applies science to solve practical problems, to create or improve high-tech devices, innovative products and sleek processes that let people take control of the places where they live – whether that’s a fast-moving city or a remote hot desert.” [Feedback, Vol 3, #2, E&T Magazine]

2.3. “Engineers are creative, imaginative, capable and resourceful. Engineers make things work and bring ideas from the drawing board to real tangible entities. In Victorian times, engineers built big things. Now, while engineers still build big things … [they also] bring the TV signals to you … designed the TVs in your house … made the rockets that flew man to the Moon, launched satellites that keep the world talking and designed and built the satnav in your car”. [Feedback, Vol 3, #3, E&T Magazine]

2.4. Engineering is quite simply all around us. It is therefore only fitting that the IET is not only the largest engineering institution in Europe, but we are also one of the largest of all the professional bodies in the UK. Engineering is also a broad term that includes many specialist areas. Again this is reflected in our members, who are drawn not only from a variety of disciplines, but also all levels of the profession from Technician to Chartered Engineer. The roles of these engineers vary depending on their specialisation and level.

2.5. Within the engineering profession, qualification and more specifically registration, falls into three categories. These categories represent different levels of responsibility and roles, but all require very high skills levels and all are vitally important to engineering.

2.6. Chartered Engineers (CEng) are characterised by their ability to develop appropriate solutions to engineering problems, using new or existing technologies, through innovation, creativity and change. They may develop and apply new technologies, promote advanced designs and design methods, introduce new and more efficient production techniques and marketing and construction concepts, and pioneer new engineering services and management methods. Chartered engineers are variously engaged in technical and commercial leadership and possess effective interpersonal skills

2.7. Incorporated Engineers (IEng) are characterised by their ability to act as exponents of today's technology through creativity and innovation. To this end, they maintain and manage applications of current and developing technology, and may undertake engineering design, development, manufacture, construction and operation. Incorporated engineers are engaged in technical and commercial management and possess effective interpersonal skills.

2.8. Engineering Technician (EngTech). Professional engineering technicians carry many responsibilities. They contribute to the design, development, manufacture, commissioning, operation or maintenance of products and services and are required to apply safe systems of work. Professional engineering technicians are involved in applying proven techniques and

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procedures to the solution of practical engineering problems and carry supervisory or technical responsibility.

2.9. If we look at the components of a mobile phone for example, different specialist engineers are needed to design and produce the chips, the (colour) LCD screens, the Lithium-ion battery (Li-ion), the external plastic casing, the wireless communication systems, the software and operating systems (and all other parts). Engineers are also responsible for designing the cell network and infrastructure and the support and maintenance of that network and infrastructure. In terms of the ‘levels’ of engineers, the overall project manager is likely to be Chartered, with those designing individuals components being Chartered or Incorporated, those managing day to day production are again likely to be Incorporated and those involved in the operation and maintenance of the plant and manufacturing processes may be Engineering Technicians.

2.10. Today’s technology is so well integrated with our daily lives that it does not enter our consciousness as perhaps it used to. There is therefore a key challenge in getting the excitement and opportunities that engineering has to offer into the public eye, and we will address these later on in our evidence. The question of the role of engineers in society could be viewed more broadly as “what is the role of technology in UK society”.

2.11. The diversity of engineering roles is reflected in the variety of disciplines in engineering. In medicine, you would not want an eye surgeon operating on your heart. Similarly, an engineer specialising in chip design may understand some of the principles behind bridge building, but you not want them building bridges. The basic skills may be the same but the specialisation is extremely important.

2.12. In contrast to this, convergence and inter-disciplinarity mean engineering projects now often require far more specialisms. For example, motor vehicle design was once largely the preserve of mechanical engineers, but now it includes advanced materials, electronics, software and other disciplines. This is further complicated by the global nature of engineering, meaning that the engineers working on a project may not be in the same country, let alone same building. The IET has recognised the changing face of the profession and has modified its structure to better reflect the diversity of technology and the global economy.

2.13. One boost for engineering is the increasingly positive attitude from Government and Parliament. As a stakeholder, we no longer feel the need to make the argument that engineering is important, or that science and technology skills are vital to the UK’s economic future. The debate we are engaged on now is how to raise the public profile, how to encourage more students into the profession, and how to ensure we have the right skills for the future. We also believe the work of the previous Science and Technology Committee, has been important in turning that corner and changing the terms of the debate.

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2.14. We are not complacent, and accept more still needs to be done – specifically there is always scope to be more joined up and effective in our activities. Yet on the importance of “STEM”, for more and more key decision makers, the question is no longer if or why, but how.

3. The role of engineering and engineers in UK's innovation drive The importance of engineering to R&D and the contribution of R&D to engineering.

3.1. Knowledge transfer has always been a key part of the IET’s mission. We capture and share knowledge from and through journals, events, lectures, magazines, online discussions forum, and our own web based streaming service IET.tv.

3.2. Engineering has a key role to play in innovation, research and development, for the reasons we have outlined above – it is impossible to decouple engineering from technology. Not all innovation and R&D has to be about technological advances, but more and more is focused in these areas – even innovation in business processes often hinges on the introduction of new technology.

3.3. The right regulatory environment, the right skills base, the right mechanisms for technology transfer, and the right public sector research agenda are all critical parts of the puzzle.

3.4. Getting these critical success factors correct is all the more important in a global market. With the changes over the past few years, notably with the creation of DIUS and increasingly important role for the Technology Strategy Board, we would like to give the next phases of plans and activities a chance to work before making any further recommendations.

4. The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile).

4.1. The state of the engineering skills base is something for which anecdotal evidence abounds, but little in terms of hard data is available. The output of the education system, at various levels, shows a significant drop in the numbers of engineers overall, with certain disciplines being hit very hard and others showing signs of resurgence. Without demand side evidence, it could be argued this is a response to a drop in industry demand, as a clear picture of what industry’s requirements has, in the past, been difficult to obtain.

4.2. It was for this reason that the IET initiated an annual skills survey in 2006. The 2008 survey will be published towards the end of April but initial data should be available earlier – at the Committee’s request we would be happy to present this data ahead of full publication. Our 2008 survey will be more comprehensive and address some of the limitations of the previous survey, whilst focusing on the same core questions to allow comparisons.

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4.3. The 2007 data offers a snap-shot overview of the workforce and looks at recruitment and training needs. We can make the full survey, which was published in July 2007, available to the Committee if requested. Key findings however include:

4.4. Recruitment • Business expansion remains the top reason for recruitment across all levels • 80 per cent said they would be recruiting “experienced staff”, with 76 per cent saying they would be recruiting graduates; 50 per cent said they would not be recruiting school leavers • 71 per cent said they were experiencing problems recruiting experienced staff • Nearly 50 per cent of companies had recruited from overseas in the past 12 months to cover specific skills shortages

4.5. Skills and Training • Nearly 90 per cent said they had to provide additional training for new recruits. • Leadership skills were seen as most lacking in experienced staff, with 24 per cent reporting typical recruits did not meet their expectations.

4.6. Confidence • Only 56 per cent said they believed they would be able to recruit enough people into engineering and technical roles this year (65 per cent in 2006). • Over 50 per cent said they did not believe they would be able to recruit the right number of technical and engineering staff in 4 years time (40 per cent in 2006).

4.7. Gender and Age profile • On average 8 per cent of the respondents’ engineering & technical workforces are female • 50 per cent of respondents said the number of female applicants and new recruits had remained static over the past four years • Both the 2006 and 2007 skills surveys show a workforce age profile that was more balanced than anecdotal evidence suggested.

[Extracts from the IET 2007 Skills Survey. Full report available online at: http://www.theiet.org/publicaffairs/education/skills- survey2007.cfm?type=pdf]

4.8. The Committee might like to address why there is an apparent market failure in the supply and demand for engineers. In strict market conditions, a scarcity of supply drives up price (or salary in this case), which in turn would increase supply (by making the roles more appealing). In practice the fact that it takes up to around 10 years of education, training and experience to become an engineer may mean that there is not the elasticity in the market to allow it to function in this way. However, there remains no clear answer

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to the question of why ‘traditional’ market forces appear unable to supply an adequate number of engineers.

4.9. The image of the engineering (and science and technology) is one factor that puts people off at a very early age. Students can rule out engineering as a career as early as 14 years old through GCSE subject choice. Looking at why this happens is very important and as part of our work supporting a UK Science Forum working party, the IET commissioned a literature review on barriers to students continuing with STEM. The report, published in February 2008, identified five key barriers:

o The need for quality teaching o Perceived difficulty of STEM subjects o Problems with transition from primary to secondary school o Negative views about STEM and STEM success o Poor perceptions of opportunities and careers in STEM

[Extracts from “Studying STEM: What are the barriers?”. Full report is online at: http://www.theiet.org/publicaffairs/education/stem.cfm?type=pdf ]

4.10. An alternative to addressing the issues of “switch off” is to create new ways to enter engineering at later career stages, or return to engineering after career changes or breaks. Whilst the length and depth of the training required may be one barrier, the creation of new routes into engineering – and science careers more broadly – could potentially help to fill the skills gap. A similar approach is currently being implemented in the teaching profession.

4.11. It should be noted that part time engineering courses do exist and it is possible to retrain as an engineer, but these are not common routes into the profession. Given the demographic shift the UK is likely to experience, encouraging late entrants into the profession at various levels may become more and more important in the future.

5. The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering.

5.1. We have demonstrated that there is a skills shortage and a clear need to encourage more entrants into engineering – at all levels, not just graduates. We also believe that professional bodies have a central role in encouraging more entrants into engineering, working alongside a variety of stakeholders.

5.2. Industry, universities, professional bodies and Government all have a key role to play and all parties need to work together in a co-ordinated manner. The IET is pleased to report that we have partnerships and joint activities with all these partners. The Unions are another important stakeholder and we are keen to join up more effectively with them in the future.

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5.3. There are numerous examples of Industry-Professional body, University- Industry or Government-University forums and projects, but there are fewer examples of groups where all five types of organisations sit together to address key issues.

5.4. We believe that a key role for any professional body should be to encourage and facilitate cross-sectoral working. Our membership includes individuals from industry, higher and further education and Government. We run expert groups drawn from members from these areas and help external agencies to form similar project groups. For example we have run a very broad working party for the Science Forum which brought together a wide range of stakeholders, including industrial members from beyond engineering, to tackle key “STEM issues”. We see this collaborative model of working as the only way forward.

5.5. Within our membership a debate has been started about the role of professional bodies in the 21st century and the IET firmly believes that acting as a broker between the various stakeholders is an extension of our 20th century role and one that we already undertaking. We would welcome the Committee’s views on this area and we are keen to take a lead in this debate and future work.

5.6. It is important to note that professional bodies also have a key role in raising and maintaining professional standards. Whilst not every engineer in the UK will choose to be registered, more and more engineering courses and almost all engineering degree courses are accredited by the engineering institutions. This has a secondary effect of helping safeguard the quality of engineering education. We encourage practising engineers to work towards and gain professional registration at an appropriate level as an internationally valid acknowledgement of their skills, experience and commitment to professional standards.

5.7. The issues facing the engineering sector cannot be solved by industry acting in isolation, universities simply changing their courses, or by Government alone. The Professional Bodies must take on the mantle and co-ordinate and facilitate joint activities that will inspire the next generation of engineers and technologists, raise the status of the profession and help secure the UK’s future prosperity.

March 2008

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Memorandum 52

Submission from The WISE Campaign

Executive Summary

1.1 Questions addressed This response addresses the third and the fifth terms of reference, which are: ♦ the state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile) ♦ the roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering.

1.2 Main arguments WISE promotes science engineering and construction as careers for schoolgirls, and is concerned that the diversity profile of engineering students and employees in the UK is not changing by market forces alone. At present 85% of engineering undergraduates are male, as are 93% of engineering apprentices227. The answer is to this failure to achieve a more diverse workforce is to challenge traditional approaches to encouraging young people into engineering and so move from the current low state of recruitment of girls. Enhancement and enrichment activities for schoolchildren are encouraging a new generation, but still have potential to improve the proportion of girls they engage.

1.3 Key recommendations WISE recommends that: ♦ government recognises its role in promoting positive change in the diversity profile of students studying or training in engineering at all levels to contribute to subsequent diversity in the workforce ♦ agencies delivering activities to promote engineering recognise the value of girls-only initiatives ♦ mixed gender enhancement and enrichment activities accept the challenge of delivering equitably to girls ♦ funders of all STEM enhancement and enrichment activities ensure that outcomes, as opposed to outputs, are tracked to ensure value for money for girls ♦ agencies delivering enhancement and enrichment activities positively embrace innovation and non-traditional approaches ♦ the Training and Development Agency’s pilot campaign to recruit STEM undergraduates into schools ensures that the nationwide roll-out of its scheme attracts a high proportion of young women

227 Engineering UK 2007, published by the Engineering and Technology Board

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1.4 The WISE mission The WISE Campaign collaborates with industry and education to encourage UK girls of school age to value and pursue STEM or construction related courses in school or college, and move on into related careers. WISE is hosted by the Engineering and Technology Board, and funded by: ♦ ConstructionSkills ♦ EEF ♦ SEMTA ♦ The Engineering and Technology Board ♦ The Royal Academy of Engineering ♦ UK Resource Centre for Women in SET

The state of engineering skills and diversity

2.1 Why diversity? There is a strong business case for diversity. Diversity policies can resolve labour shortages by recruiting and retaining high quality staff, they enhance a company's reputation and standing in the local community, and lead to improvements in their capacity to create and innovate228. In addition there is the demographic imperative resulting from the downturn in the birth-rate229.

2.2 Women in engineering The last 30 years have seen great strides forward in opening up erstwhile male-only careers to women viz. accountancy, law and general practice doctors. In engineering, although there has been a doubling in the number of women undergraduates since 1984, there are still only 15% female undergraduate engineers and 3% female apprentices. This is a major diversity issue, which affects the basic supply of skills, the potential for innovation in the sector and the culture of the workplace.

2.3 Traditional work practices Our society’s culture is such that the childbirth/rearing process is seen as a halt to productive work (rather than upskilling in multi-tasking, communications and negotiating). Many SMEs find the financial burden difficult, and do not embrace the idea of more young women in the workforce. Many young women who do join engineering companies find that it difficult to persuade their employers to think laterally about a standard 40 hour week, and so leave after childbirth. Few have such good statistics as those published by Openreach who see 99% of their female workforce return after maternity leave.

2.4 How this affects girls’ choices Girls from a young age see the engineering profession define itself in these terms of its heritage of maleness, and most do not even consider engineering as a possible future for them. Those who are proficient in science and mathematics (and girls do better in these subjects than boys at GCSE) can find themselves moving ‘naturally’ on into medicine and accountancy, or even out of the area altogether. And competent

228 The Business Case for Diversity: Good Practices in the Workplace, European Commission: Directorate- General for Employment, Social Affairs and Equal Opportunities, 2005 229 ESRC, National Statistics

352 girls who struggle with these subjects because of inadequate support do not even consider continuing with them beyond 16. So the gender profile of UK’s engineering companies will not change in the foreseeable future merely by doing more of the same in terms of intervention in the schools, colleges and universities.

2.5 Government responsibility The STEM programme has equality and diversity clearly articulated at the top of its agenda, but there is no subsequent strategy for delivery, or ring-fenced funding. At present the Government policy representatives advocate the better training of teachers and careers advisors, which they state will automatically lead to the disappearance of gender disparity issues. There is no evidence to support this position.

2.6 The need for a coordinated strategy DIUS has committed to funding the UK Resource Centre for Women in SET for the next three years, and UKRC (who also sponsor WISE) are in turn contributing valuably to a number of initiatives such as the London Engineering Project. But there does not appear to be any coordinated strategy and funding to ensure an increase in the number of young women coming into STEM careers.

Recommendation 1: that ♦ government recognises its role in promoting positive change in the diversity profile of students studying or training in engineering at all levels to contribute to subsequent diversity in the workforce

Promoting engineering careers

3.1 Do we still need to provide for girls-only? It has been argued that in the twenty-first century there is no need for courses devoted totally to girls, who have to live in the real world, and must learn in that context. But take the experience of a girl in a mixed school who has an interest in engineering: she will know from her peers, her teachers and her careers advisor that she is considering a career which is unusual for women. She then goes on a mixed course/recruitment event where there is a majority of boys, and she will have this sense of her own peculiarity reinforced. However, on a single sex course, she can be normal again.

3.2 Research into how girls value girls-only courses WISE has been investigating the value of girls-only courses by interviewing the participants from the last 20 years from the Insight course for year 12 girls (17-year- olds). When asked generally what they thought of the course and found valuable attendees said that they had experienced a good introduction to engineering, a useful taster of university life and that it had helped them with their choice of course and career. However, more in depth questioning revealed that the single-sex nature of the course did indeed provide them with a far richer experience: they engaged more with role models, had more hands-on experience, felt more at ease asking questions, and, perhaps most importantly, felt less of an outsider as a girl studying science. WISE believes in the value of these courses to ensure there is alternative model for influencing girls, whilst at the same time mainstreaming effective engagement with girls into mixed-gender interventions.

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Recommendation 2: that ♦ agencies delivering activities to promote engineering recognise the value of girls-only initiatives

3.3 Mixed-gender interventions There are a large number of mixed gender enhancement and enrichment activities provided by a number of organisations, from major corporations to small charities. Many of these find a proportion of 25% girl participants to be acceptable as it is, after all, larger than the percentage of women in FE, HE or industry. However work undertaken by the London Engineering Project230 has demonstrated that it is entirely possible to have an even representation of boys and girls, and other initiatives should accept the challenge to demonstrate their equitable investment in girls.

3.4 Equitable investment in girls ‘Gender neutral’ initiatives who promote themselves to both boys and girls, but end up delivering to boys on a ratio of three or four to one could consider whether they are investing well in the future. The need for diversity in the workforce is well documented elsewhere, and funds that flow more in the direction of boys than girls merely maintain the status quo. If an initiative is spending more on boys than girls ‘because we can’t get the girls to sign up’, this is a strong indicator that customer relations and recruitment messages are not effective across the piece, and money spent on attracting more girls would balance the scorecard from the customer perspective.

Recommendation 3: that ♦ mixed gender enhancement and enrichment activities accept the challenge of delivering equitably to girls

3.5 Tracking positive outcomes to interventions There appears to be little evidence as to whether interventions that deliver a one-off experience for students, then move on to the next cohort, have any value in the long term. An effective intervention should not only encourage more girls into engineering study and careers (a positive outcome), but would also be able to document these outcomes in the longer term. No doubt some agencies can demonstrate this type of indicator of success, but we are not aware of any widespread use of robust techniques on either mixed gender or single sex interventions. Funders may wish to gather these figures as evidence of value for money, and efficacy, for girls.

230 funded in the main by HEFCE, led by the Royal Academy of Engineering, and delivered in partnership with London South Bank University, African-Caribbean Network for Science and Technology (ACNST), Aspire Aimhigher South East London, Cambridge- MIT Institute, EDF Energy, ,RWE Thames Water, STEMNET, STEM Centre for London, The BA, The Brightside Trust, The Engineering Development Trust, The Engineering Professor’s Council, The Higher Education Subject Centre, The Office of Science and Technology, The Smallpeice Trust, The UK Resource Centre for Women in SET (UKRC), University College London, University of Liverpool, University of Sussex, Young Engineers

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Recommendation 4: that ♦ funders of all STEM enhancement and enrichment activities ensure that outcomes, as opposed to outputs, are tracked to ensure value for money for girls

Innovation as a way forward

4.1 New approaches in the workplace Innovation does not just mean creating innovative commercial products and services: innovation which challenges traditional approaches must be core to the recruitment and retention of staff, both male and female, to ensure the UK can stand alongside other emerging economies that are not restricted by legacy systems and cultures. “We can do this by investing in people and knowledge, unlocking talent at all levels, John Denham231”.

4.2 A new approach to interventions for schoolgirls WISE has recently won funding from the LSC for a major piece of work that looks in detail at the experience of single sex promotional interventions. Working with a large number of partners, primarily the Royal Navy, who have opened up their engineering school to the project, WISE will develop a series of large scale, hands-on, engineering activities to guide the girls through their year 11 studies and help them make informed choices about engineering diplomas and apprenticeships.

4.3 Learning through teaching The key to this project is that the girls, having participated in a day’s activities, then redesign the day for the next cohort and participate as guides on the next event, then take the learning back into their own schools. This active involvement in learning, planning and teaching is an innovative step forward based on the Royal Navy’s mantra of 'teach to learn'.

4.4 Collaborative employer engagement In addition to this innovative approach, local industry will participate in a self- sustaining consortium to encourage girls into engineering as a career, rather than into their particular companies. This plays to the strength of collaboration and partnership which is more powerful than competition in many circumstances232.

Recommendation 5: that ♦ agencies delivering enhancement and enrichment activities positively embrace innovation and non-traditional approaches

4.5 Addressing the lack of physics and maths teachers in schools WISE supports the initiatives to employ undergraduates as teaching assistants in these hard to resource STEM areas, such as the Student Associates Scheme run by TDA. The scheme brings motivated, subject-qualified assistants into the classroom for

231 Secretary of State for Science and Innovation, John Denham, in a Written Ministerial Statement, 13th March 2008. 232 As Warren Buffet said to Bill Gates as he handed over the majority of his fortune to the Bill & Melinda Gates Foundation.

355 mainly group or one to one work. They act as role models and, as a valuable addition, have a grasp of the career opportunities available to those studying STEM subjects.233. However steps must be taken to ensure gender balance when this initiative is rolled out nationwide, to ensure there is a positive reinforcement to girls of their opportunities in entering STEM careers.

Recommendation 6: that ♦ the Training and Development Agency’s pilot campaign to recruit STEM undergraduates into schools ensures that the nationwide roll-out of its scheme attracts a high proportion of young women

March 2008

233 This is not the same as the Undergraduate Ambassadors Scheme, which aims to give student credit towards their degree and does not pay

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Memorandum 53

Submission from CEESI-Training

EXECUTIVE SUMMARY

1. A collaboration between industry and eleven universities has been running since 2001 and has benefited a significant proportion of electronics design engineers working in the UK, particularly those working in small companies (SMEs). Badged CEESI-Training, it is a success story that is well-known within the electronics industry and the electronics departments of universities. Now it continues to attract new university partners as its simple structure sidesteps many of the barriers to collaboration and sharing. The Memorandum of Agreement linking the partners together has proved to be durable yet able to accommodate change.

2. For all these reasons the partners of CEESI-Training commend this model to the committee for further investigation. We recommend the model could find application in other branches of engineering and even in other science disciplines. CEESI-Training is funded by the Engineering and Physical Sciences Research Council (EPSRC).

BRIEF INTRODUCTION

3. This submission has been prepared by the following people: Professor Ted Pritchard Co-ordinator of CEESI-Training. Previously Head of Dept. at University of Huddersfield and advisor to DTI. Mr David Rees Chairman of CEESI Management Board, Seer Consultants. Roy Attwood Co-ordinator of postgraduate distance learning courses in electronics from the University of Bolton. Previously a design engineer with Philips Electronics.

All the above are Chartered Electrical Engineers with many years experience of academe and industry.

4. This evidence concerns the role of universities in promoting engineering skills and developing careers in engineering. It refers to the development of skills at postgraduate level, including continuing professional development.

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FACTUAL INFORMATION

Background

5. The electronics design industry is relatively modest in size but its unique position at the head of the electronics supply chain makes it critical to the economy as a whole. Entire industries, factories or product ranges can result from the work of a small team of design and development engineers.

6. In 2000 the UK microelectronics industry, represented by the National Microelectronics Institute (NMI), concluded that UK universities were either not developing the courses they most needed, or they were not delivering courses in ways that made them accessible to people with normal work commitments. Hence the universities were not helping sufficiently to address the looming "skills gap" in the UK.

7. There are two main reasons how this state of affairs had come about. Firstly, the postgraduate operations within universities were still concentrating on MSc courses of 12 months duration, studied full time. Such courses had thrived when grants were available for postgraduate study. Now, in response to changed circumstances, universities were filling their places predominantly from overseas, and the majority of students returned home afterwards. Secondly, the way research was assessed for funding (the RAE) forced departments to become more specialised, making it difficult for any one university to offer the breadth of coverage that industry now required. Many universities were indeed out of touch with the needs of the modern UK innovators, the SMEs.

8. A series of meetings took place within the industry to define what was required and universities were then invited to respond. A group of universities rose to the challenge and, together with the NMI, put a proposal to the Engineering and Physical Sciences Research Council (EPSRC) to form a collaboration, to be called CEESI234. EPSRC agreed to fund the first few years of the CEESI programme under its Masters Training Programme (MTP), and since then has extended funding as a Collaborative Training Account (CTA) through the University of Bolton.

What is CEESI-Training?

9. CEESI-Training is a collaboration between eleven UK universities, all running part time MSc courses studied partly by distance learning. A "pool" of 44 modules has been defined and within certain limits students can choose to study any of the modules in the pool. The MSc award is made by the university that supervises the major piece of work, the MSc Project. In this way students have more flexibility and security than they would if they were limited to only one university. The scheme works by the

234 At that time CEESI stood for Continuing Education in Electronics Systems Integration. Since then, the activities have broadened and the name has been changed to CEESI- Training.

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universities agreeing to transfer academic credits earned through CEESI- approved modules.

10. Students may choose to study one or more modules for continuing professional development (CPD) or may choose to go further and eventually gain an MSc from one of the partners. In practice students tend to study mostly with one university, but add a few specialist modules from one or two other institutions. Students pay only for the module(s) being studied in any one term, and can take a break before continuing. Bursaries are available to reduce the cost to eligible students, so financially this way of working towards a qualification is particularly attractive.

11. The memorandum of agreement signed by each university requires that: • each university agrees (within stated limits, typically 50% of a qualification) that it will allow students to import credits at no cost for CEESI modules studied through partner institutions. • the CEESI Board can agree to "adopt" new modules into the CEESI pool. • the CEESI Board can also accept new member institutions into the agreement • each module will be taught in part or completely by distance learning over the internet.

12. The flexibility of the scheme to the students is the main aspect that persuades universities to sign up to CEESI, but there are other benefits too. Universities gain from the marketing undertaken by the consortium as whole and by references from one partner to another. Meetings between partners provide a sharing of good practice, formalised in annual workshops organised by the CEESI Board. Academic staff also welcome the opportunities to keep in touch with the industry and their customers.

13. The academic partners in CEESI currently are: the Universities of Bolton, Bradford, Kent, Manchester, Southampton and Surrey, and the Institute for System Level Integration (iSLI) representing the Universities of Glasgow, Heriot-Watt, Edinburgh, and Strathclyde.

14. An indication of the success of the approach adopted by CEESI is the level of interest shown by universities. The University of Kent signed the Memorandum of Agreement in December 2007 and two more universities are actively considering joining.

Collaboration at credit level is key

15. CEESI works so well because the currency of collaboration is academic credits. Universities are reluctant to share syllabi or course materials on the grounds of academic freedom. However, when it comes to academic credits, agreement is possible. Thanks to the Bologna process of harmonising academic qualifications, the academic credit framework is now recognised throughout Europe and in many countries further afield.

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Repeated inspections by the Quality Assurance Agency (QAA) have led to a consensus of approach between universities to the point that most are now prepared to accept the parity of credits at a given level awarded by other universities. So whilst universities remain reluctant to share, they are generally willing to recognise credits gained elsewhere.

Effectiveness within the industry

16. CEESI-Training is currently training in excess of 300 electronic design engineers per annum (over 6% of the UK total) on 44 modules. Since it started in 2001, the collaboration has trained over 1200 engineers in total (around 25% of the UK total). This was recognised by the National Microelectronics Institute, the trade association for the Microelectronics industry in the UK and Ireland, which in its 2007 Review stated ‘CEESI continues to go from strength to strength and sets an impressive standard’. In terms of international recognition, CEESI-Training was awarded the Education initiative of the Year award at the EuroAsia IC Industry Awards ceremony in San Francisco in July 2006.

17. Approximately 60% of delegates are from SMEs and 40% from large companies. This high level of engagement by SMEs is unheard of in any other training initiative and reflects the flexibility and accessibility of the training provided. Offering modules for study over the internet on a module by module basis has proven to be one of very few successful strategies for reaching SMEs in the UK and therefore represents a significant breakthrough.

18. The Board of Management for CEESI-Training is composed of representatives of the Universities involved and industrialists from leading companies including NXP Semiconductors, Cadence DS, Sony Semiconductors, BAE Systems, Motorola, Filtronic CS and National Semiconductors. The Chairman and 50% minimum representation must be from industry. The Board is formally constituted and has its own terms of reference agreed and written into the Memorandum of Agreement.

RECOMMENDATIONS

19. The committee might wish to examine in more detail the innovations inherent in the CEESI-Training collaboration and the degree to which it is helping to meet the needs of the electronics industry for continuing professional development. It is possible that the model could be expanded and improved to have a greater impact on the electronics skills gap.

20. The CEESI Memorandum of Agreement has already survived scrutiny by legal teams of twelve universities and can therefore be proposed as a good starting point for similar collaborations in other branches of engineering.

March 2008

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Memorandum 54

Submission from Prof John Monk, Open University

Submission on Engineering

Executive Summary Broadly engineers are employed to ensure things that are constructed behave reliably and safely as specified and engineers' efforts primarily help to bring about change.

Engineered change affects a wide range of people and the environment in which change takes place. The requirement to evaluate the effects of proposed change brings an ethical dimension to the profession.

Engineers are employed in practically every kind of organisation that employs or produces things. Developments in Information and Communication Technology mean that most organisations require engineering capabilities.

ICT has substantially widened the scope of engineering and contributed to the expanding scale of engineered systems.

There is a public lack of awareness of the work of engineers.

The falling popularity of the profession will have an effect on the strategic reserve in UK engineering.

The government has a significant role in encouraging engineering competence within UK enterprises.

Standardisation is important to the successful development of engineered systems.

There is a mixed economy in the formation of engineers in the UK with Universities providing good theoretical foundation, companies providing initial professional development and professional institutions providing quality assurance.

The techniques of science and mathematics contribute to engineering judgements.

Qualifications I have been Professor of Electronics at the Open University for twenty five years. The students of the undergraduate and postgraduate courses I have been associated with are largely employed in the engineering industry.

I have had close contact with industry through lecturing, employment, secondments and research.

I am involved in the activities of the Engineering and Technology Board, the UK Engineering Council, Royal Academy of Engineering, the British Computer Society and particularly the Institution of Engineering and Technology (IET). I have some

361 international experience of educational systems and technology companies.

I advise on and inspect industrial training and education systems, look at schemes in the armed services, and have interviewed, moderated and acted as registrar for hundreds of candidates applying for registration as engineers. I have been involved in decisions relating to the qualifications of thousands of engineers. I am the registrar for all applications for registration through the IET for Chinese applicants.

I have not systematically researched UK engineering industry so my comments are opinions derived from private meetings rather than the result of targeted enquiries.

The role of engineering and engineers in UK society

What is engineering? Engineering is about material change. Engineers play a part in designing new things, maintaining and operating things; they diagnose faults and failures with a view to rectifying the fault and they play a part in regulating infrastructures such as electricity and communications and that too involves proposing adjustments.

Change brings benefits but can also cause harm and introduce costs. An engineer’s task is to propose change and to evaluate it. This evaluation can be wide ranging and consider energy use, material use and disposal, visual impact, the potential users and their foibles, reliability, cost, safety, impact on health as well as the technical capabilities of the construction, configuration or modification. Additionally engineers must ensure their proposals satisfy regulations, laws, industrial (and military) standards and the constraints of, for example, company policy and public expectations.

Broadly engineers are employed to ensure things that are constructed behave as specified reliably and safely. Often this requires a great deal of forethought.

Professionals Engineers are commonly part of a larger enterprise and while they have influence over change they are rarely the only agents involved. The engineers, like other professionals, advise, persuade and explain and therefore spend time in meetings. Where they have the authority to act they must be prepared to give convincing accounts of their actions. In any case, they have to be persuasive and confident about their proposals, and that is why they will spend most of their time analysing, simulating, calculating, experimenting, prototyping and having discussions with their engineering peers to gain assurance about their recommendations and to develop some fluency in expressing them.

You would hope that in assembling their case the engineers would be sure of their data and would not misrepresent it to further their own personal interests and instil trust. There is therefore an ethical dimension to the engineer’s work.

To secure their proposals engineers employ logical argument, mathematical descriptions and the techniques of science. However, rarely if ever can the different secured parts of any case be unassailably linked or be fully consistent. A distinction between the engineer and the scientist is, therefore, that the engineer does not seek all-

362 encompassing theories. For the engineer, experience in their specialist field and a formal or informal assessment of risks together with overarching ethical precepts contribute to what must ultimately be judgements about the shape of an argument and hence the shape of the engineered artefact.

Similarly products, processes or constructions are often over-specified so outlining compromises and justifying them is also a part of the engineer's task.

These aspects of engineering are not science or mathematics; the engineer does not set out to make discoveries but to make reliable predictions and robust evidentially based arguments to support the potential choices.

However engineers primarily consider changes that are to take place in the future. Inevitably that is fictional and requires some skill in telling the technical story about the engineering proposal and its potential effects often to a lay audience.

Engineers can also be a major influence on the abandonment of an unsound project.

Thus at heart engineers task is to make reliable judgements and convey those judgements to others in the enterprise.

A broad profession Engineers are employed in manufacturing and increasingly in the service sector as the capabilities of ICT expand. They are key figures of the health and military and even, for example, in the custodial services as those services turn to technology to improve efficiency, reduce risk and extend their range.

The Engineering Council’s register gives an indication of the breadth of the engineering profession in terms of the kinds of roles individuals perform.

The structure of the profession and indeed the use of the word “engineer” is broad. They have deep and long-standing cultural roots which make changes in the structure of the profession and the public perception of the profession difficult and slow.

Hidden work The results of work undertaken by engineers is largely hidden, their work is frequently completed before something is used and the concepts that engineered products exploit are commonly invisible physical effects such as force, voltage or heat flow. Finally many ingenious features of products employing, for example, information technologies or bio-engineering are microscopic.

Overall it is difficult to describe the contribution of the profession because of the variety of apparently unconnected applications of engineering and because engineering deals in things that for reasons of scale, safety, security, aesthetics or insulation from disturbances are mostly hidden from the lay observer.

More than making Artefacts are not only used, they must be made, maintained and ultimately discarded. At each stage questions of harm and reward can arise: harm or reward to the workforce, harm or benefit to the environment, harm and benefit to the users or the

363 harm and benefit to the sponsoring organisation.

Identifying the significant parties affected by an engineering decision can be a tricky task. Many engineers work for a firm. And the firm may work for clients or investors. The users of what is to be produced may be remote in distance and in time and may not be identifiable. And then there are the future unknown passers by. So deciding where the benefits and costs are going to accrue and hence what are the significant criteria for a good outcome itself demands judgement.

Changes Standardisation of engineering components has been crucial to the development of sophisticated, cheaper and more efficient engineered artefacts. The aim in standardisation is to encourage the development, manufacture and use of components and processes that behave according to tight, well-known specifications.

Standardisation, especially open standardisation, renders components made by one supplier interchangeable with components made by another. Standardisation therefore removes barriers to competition, which encourages rapid development and improvement of components. For instance, the standardisation of nuts and bolts helped the mechanical industries develop, standardised windows reduced the cost of buildings and the standardisation of communication protocols made the global internet feasible.

With standards in place some engineers concentrate on making components to the demanded standard while other engineers accept the standards, worry less about how the components work and concentrate on creating configurations of standardised components to fulfil functions that build upon the capabilities of the standardised elements to a higher level of sophistication.

This increased sophistication and emphasis on configurations makes the task of assessing the performance and behaviour of the engineered artefact one of analysing configurations and their properties. And this has led to a need for a cadre of "system" engineers.

A system is a collection of components connected together in particular ways. Sometimes the connections are mechanical, hydraulic and sometimes manual but with the developments in communication technology more and more connections are electronic or optical. The consequent ease of connection and its standardisation has massively encouraged the growth in scale of systems. The techniques for the analysis of such systems are in their infancy and it requires substantial effort to engineer these systems reliably.

It is noticeable that many activities that in the past have relied on simple manual systems have become regulated and operated by systems built around information networks.

It is also noticeable that business consultancies now have major divisions concerned with system integration employing Chartered Engineers.

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The role of engineering and engineers in UK's innovation drive

Innovation is a crucial part of the engineer’s role The engineer deals with specific situations and not generalities and thus every action is set in a novel situation. Across the spectrum of engineers there will be those that deploy well-established techniques to familiar types of installations but ultimately to deal with unanticipated events and there will be those who create and promote radically new engineering opportunities. In all cases there is an element of novelty that can bring about anything from minor adjustments to radical prospects for societal change.

Discoveries of social, chemical or physical phenomenon are often have no clear connection with a potential use. Engineers seeking improvements or novel approaches who are aware of a broad spectrum of discoveries will find uses for the discovery and will evaluate the utility and ultimately propose the integration of the discovery in some application. Equally an engineer may reject the use of a discovery because of uncertainties surrounding it; this assessment of feasibility must be carried out by those who are familiar with the constraints of engineering including the constraints of the market.

The engineer through his or her professional network is likely to be aware of new devices and materials. Indeed his or her business may be to find applications for new devices and materials. And having recognised a promising opportunity the engineer has to persuade others of the benefits by identifying problems or needs that will be resolved by the new opportunity. In this situation the engineer has a broad responsibility to use his or her authority to propose changes that are broadly worthwhile.

Innovations feed one another. A minor change to a production process may bring about sufficient change in the properties of an engineered component that that altered component is taken up in another engineered product or process and brings rewards.

Innovation is rarely radical but the cumulative effect of thousands of tiny changes in products or processes can transform an industry.

The state of the engineering skills base in the UK

The supply of engineers The relative reduction of applicants for studies in engineering (both amongst young people and older people seeking new qualifications) will inevitably affect the supply of engineering staff.

This may not result in a shortage since the UK has been able to attract well-qualified immigrants.

However many engineering enterprises have international organisations and may find it simpler to move their engineering operations to other countries where there is an engineering labour pool.

The drop in interest in engineering studies is a global phenomenon and there are no

365 clear indications as to why there is a slackening interest.

An alternative has been to welcome investors from outside the UK to run UK based operations and thus gain engineering support from engineering resourcesin other parts of the globe.

But there is a strategic issue. Localised engineering talent is essential for some industries and government departments.

In times of protracted international dispute, engineers are required to reconfigure infrastructures of all kinds to cope with shortages, damage, disruption to logistics and the extension and repair of defensive capabilities.

Bearing in mind it takes around seven years to train the highest cadre of engineers, therefore having an engineering reserve is a wise precaution.

Issues of diversity (for example, gender and age profile) There are strong cultural factors that lead to different groups being represented in the engineering profession. My comments are not based on any structured study but it is clear that women are not well-represented in the profession and there are ethnic biases but I do not have specific data.

The age profile varies amongst employers of engineers. The profile is commonly linked to company and organisational histories and the broad evolution within specific industries.

The importance of engineering to R&D and the contribution of R&D to engineering

Engineering It is impossible to separate engineering activities from research and development. Development is an engineering activity that takes a concept, material, phenomenon or process, finds uses for it and makes it useful.

Some development will be centred on engineering activity itself. For example, the improvement of software based tools or the refinement of measuring equipment.

Research into markets and market expectations can guide the engineering task.

Science Scientific research that uncovers new phenomena or new forms of material can provide inspiration for new forms of engineered product or process.

The instruments, materials, simulations, software tools and apparatus of science are heavily engineered. However scientific apparatus is operated by specialists in protected surroundings often for a limited time and does not necessarily demand the highest level of engineering. However in some instance very high degrees of precision, only obtainable with careful engineering, are required.

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the roles of industry, universities, professional bodies, Government unions and others

Education and training Universities primarily provide a traditional base of theory with a taste of other facets of engineering such as ethics, project and financial management. With a focus on the individual student they can only approximate the collective learning provided by working on an industrial project. Universities rarely have realistic engineering tasks to perform that illustrate the essential core of engineering work.

Many large companies have excellent training schemes for engineering graduates.

A change in the Engineering Council's policy demanded higher levels of qualification for registration. This has posed a problem for some companies who cannot recruit sufficient people with higher levels of qualification. As a result some companies, often in partnership with Universities, develop educational programmes for their newly recruited graduates.

Companies in the ICT sector recruit non-engineering graduates as well as engineering graduates. The rate of change of the product base in this sector means that everyone has to learn continuously. Often these companies are generous with the opportunities for learning they provide for their employees.

There is a growing number of private companies who have found a number of profitable niches to provide some of the education previously provided by universities.

Manufacturers of equipment provide courses to brief people on their, often very sophisticated, products. Certification of achievements on these courses has become a valued commodity for graduates and employers.

The professional engineering institutions accredit engineering degrees, and industrial training and education programmes. This accreditation is taken seriously by companies and Universities and thus helps to ensure a high standard of education and training for professional engineers. Accreditation is not universal but nevertheless sets exposes the high standards expected of all providers.

The professional institutions also have rigorous processes for the assessment of individual engineers and thus set standards of practice. This is of value to individuals, but also can help a company illustrate its competence through the proportion of registered engineers it employs.

The engineering institutions through a wide variety of means provide opportunities for engineers to stay in touch with the state of the art and to share experience.

Government actions All countries are vulnerable to losses of competent engineers to other countries. Any government has to be aware of potential drains and the consequent attrition of every aspect of infrastructure. And develop the capability to monitor and respond to critical

367 losses of engineering skills

The development of open standards for engineered devices should be facilitated by government, and government should make sure the standards are adopted by UK industry. This requires good mechanisms for the dissemination of standards.

Government could ensure that the engineers and the staff of its contractors it employs meet the standards demanded by the UK Engineering Council.

Government should, through the education system, encourage people into engineering careers that provide routes to competence standards.

Government should seek to provide better coverage for SMEs of the work of the professional bodies in sharing of engineering knowledge, understanding and practice.

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Memorandum 55

Submission from the Design and Technology Association

1. Summary of main points

1.1. Design and technology is a National Curriculum subject which introduces students to skills and knowledge essential to engineering. When studying design and technology students,

”… combine practical and technological skills with creative thinking to design and make products and systems that meet human need. They learn to use current technologies and consider the impact of future technological developments. They learn to think creatively and intervene to improve the quality of life, solving problems as individuals and members of a team.” (The importance of design and technology; National Curriculum; 2007)

1.2. However, design and technology is no longer compulsory at KS4 and therefore for many students the access it can provide, through practical activity, to the other STEM subjects of science and mathematics, is denied.

1.3. Design and technology has the potential to make significant contributions to the STEM agenda, but needs equal recognition and support to science and mathematics to fully do so.

2. The Design and Technology Association The Design and Technology (D&T) Association is an educational charity and a company limited by guarantee. It is the recognised professional association, which represents all those involved in design and technology education. It was established in 1989 with support from the Smallpeice Trust. The Design and Technology Association is governed by a Council of Management, which is elected by the members at the Annual General Meeting. It is financed through membership fees, support from charitable foundations, industrial sponsorship and income generated through project management, publications, courses, conferences and consultancy.

For its members the Association provides access to a network of like-minded professionals helping to share and develop ideas about the subject, teaching, learning and professional development. In addition, and for the subject community as a whole, the Association works with, lobbies and responds to consultations with government and other agencies. This important work helps ensure that the contribution of design and technology to the curriculum and, ultimately to the future economic well-being of the country, is both recognised and central to thinking about future curriculum planning and development. Change in education is continuous and change in design and technology education is both continuous and rapid. It is against this background that subject associations come into their own. They are able to provide government with professional advice and members

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with information and interpretation which help them to prioritise their responses and actions. The D&T Association has successfully carried out this role for 18 years.

3. The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering

3.1. Design and technology – a National Curriculum subject and an essential contributor to engineering education

3.1.1. Key skills lie at the core of design and technology and, as a result, the subject can provide coherence and relevance to teaching and learning in many other subjects. It is a subject that is able to contribute to the general education of all pupils and the vocational education for those pupils who will make their careers in design, scientific, technological, engineering and mathematical fields.

3.1.2. KS4 pupils rate it as their second favourite subject. This is not surprising as the context for this modern subject is the technological world of young people and the opportunity for them to be innovative and creative – attributes which also lie at the heart of engineering

3.1.3. Pupils with special educational needs also make better progress in D&T than in any other subject. The nature of design and technology is such that it provides opportunities for young people of all abilities to engage in activities that are challenging, relevant, motivating yet enjoyable and which give them a sense of satisfaction and wonder in their ability to design and make. Engagement in technological activities can be a powerful motivating force for learning at all stages.

3.1.4. As we move further into the 21st century the Design and Technology Association believes that D&T should be, as David Hargeaves suggested when he was Chief Executive of QCA,

“… moving from the periphery of the school curriculum to its heart, as a model of the combination of knowledge and skills that will be at a premium in the knowledge economy. It is from this best practice that other subjects can learn about effective teaching and learning for innovativeness.”

3.1.5. James Dyson, in the Richard Dimbleby Lecture 2004 “Engineering the difference,” highlighted the positive contribution made by design and technology as a National Curriculum subject,

“So China breathing down our necks. The only way we’ll be able to sell our products, is if they have better technology and are better designed. That means investing in engineering, and engineers, to ensure we don’t repeat the mistakes of the past. What do we need to do

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to ensure we get manufacturing right in the future? The first step is to address the shortcomings of our education system. And to use it to change attitudes. Actually, it is one area of our culture that has vastly improved its approach to engineering. We have a generation of children who have studied Design and Technology at school…...”

3.1.6. Since 1999, through the DCSF-funded CAD/CAM in Schools programme, over 10,000 design and technology teachers have been trained in the use of industry-standard CAD software.

3.1.7. The only practical experience secondary age students have of electronics, systems and control is through design and technology where these aspects of the subject remain compulsory at KS3.

3.1.8. Design and technology teachers will be responsible for teaching significant amounts of the Engineering diploma.

3.2. Concerns about Design and Technology as a National Curriculum subject

3.2.1. England and Wales were the first countries in the world to introduce design and technology as a compulsory subject for all pupils from 5-16. However, continuous curriculum change has gradually eroded this unique initiative, particularly the removal of the subject’s statutory GCSE status in 2004.

3.2.2. The downgrading of design and technology from a statutory subject to an entitlement at KS4 in September 2004 has resulted in a 22% decrease in GCSE entry from 408,000 candidates in 2004, to 320,000 in 2007.

3.2.3. However, in terms of entry the subject remains the most popular optional GCSE subject.

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Memorandum 56

Submission from Herefordshire and Worcestershire Chamber of Commerce

ENGINEERS AND ENGINEERING IN THE UK TODAY

Executive Summary 1. The UK has a long engineering history but today, engineering achievements are not celebrated as they were for example, in Victorian times. The changing structure of the economy with fewer people employed in manufacturing in general and the contraction or loss of some of our traditional industries – often based around heavy engineering – has led to a public feeling that the future is in services and that engineering and manufacturing are not exciting and are out dated. Together with other changes in society this has led to a loss of status for the engineering profession in relation to other occupational groups.

2. Changed attitudes have contributed to a reduction in recruits to the profession and in turn, a reduction in training places. There are shortages of both graduate and craft trained entrants to the profession. Nevertheless engineering is needed now as much as ever because its practical, problem solving approach is at the heart of turning ideas into practical reality, it is innovative and creative and able to turn the results of research into practical products and services.

3. In the UK business must work closely with schools to help young people and the adults that advise them (parents and teachers) understand the true nature of engineering and the wider manufacturing sector in the UK. We must show how this has changed from the outdated stereotypes that are often still believed and show the challenges that exist and the rewarding careers that can be available.

4. Without a strong engineering sector, the UK will not be able to compete effectively in the modern world.

Introduction 5. The Chamber of Commerce Herefordshire and Worcestershire represents some 1,500 member businesses and provides a wide and diverse range of business support services to both member and non member businesses. The economy of the two counties of Herefordshire and Worcestershire is very diverse. It includes a wide range of engineering businesses from small and often very traditional metal turners and formers, through to very advanced knowledge intensive manufacturers of high technology products as well as agricultural engineers that have grown up often out of the extensive land based industries in the area.

6. Many of the businesses in the north of Worcestershire were particularly dependent on the automotive industry although through diversification that dependence has become significantly less. In Herefordshire there is a major manufacturer of

372 aluminium and non-ferrous alloys and engineering is important to many of the areas other traditional industry such as carpet manufacture, agriculture and food production.

Consultation 7. This response draws on the opinions and views of members expressed in many discussions on manufacturing, innovation and training. In addition, a specific consultation exercise was carried out with a sample of members when the Chamber learned of the Select Committee’s enquiry.

Engineers and Engineering in the UK today 8. Engineering has lost a lot of its status in the UK today. In the past engineers and engineering were held in high public esteem, indeed some of the Victorian engineers are still quoted as good examples of their profession, often because modern UK engineers are not celebrated in the way that their forebears were.

9. The loss of status is in part at least connected to a lack of general awareness of the true nature of engineering which, like the broader manufacturing sector, has suffered with a public image problem that sees it as outdated and declining, dirty and lacking challenge. There are elements of truth in some of these accusations, there has certainly been a decline in overall numbers employed in engineering and manufacturing, and some jobs can at times be dirty, however there has been some huge progress made which is not recognised and modern engineering, like modern manufacturing, is very different from the situation half a century ago or earlier.

10. Changes in society and the economy have played a part in this change in public attitude to engineers and engineering. In the nineteenth century, many of the major engineering projects such as railways and canals, bridges and steam engines were viewed by large sections of the public in much the same way that the first space missions and moon landing were seen in the twentieth century. Now major civil engineering projects such as roads, airports etc are additions to networks with which we are already familiar and they are often surrounded by controversy over their environmental impact.

11. As well as the changing values in society, economic changes have fuelled a debate that has had an impact on the way engineering is seen. Over a period of years we have seen a number of traditional UK businesses, often with engineering at their heart, close, shrink in size and importance or move overseas. This has come about because of major changes in the world economy. The emergence of new producers overseas able to compete because of cheaper labour costs and also in some cases because they can begin with what is now the latest technology rather than go through the more evolutionary process of the long established producers.

12. We have discussed these changes in terms of the “decline of our traditional engineering sector” or “the progressive decline in manufacturing” or “employment opportunities are moving from the manufacturing to the service sector . In some cases change in certain sectors was both necessary and inevitable. The decline in the overall numbers of people employed in the manufacturing sector is however also a result of the huge improvements in productivity that has been seen in many industries.

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13. For example, in the carpet manufacturing industry around thirty years ago, three to four people would have been employed to keep a loom running and a large number of people would have been employed in rectifying by hand the faults in the finished carpet. Now one person can keep three or four looms running and while faults are still corrected by hand, fewer people are employed in this role because the number of faults coming off the loom has been reduced. As in many other industries this major improvement in productivity has been brought about as a result of engineering - often embracing new technologies.

14. The relative decline in status for engineers and the failure to celebrate the achievements of engineering has a number of consequences. Among them are lower levels of pay than in some other professions, and lower pay together with lack of recognition make it harder to recruit new people into engineering. This helps to accelerate a downward spiral in that as numbers of people being attracted into the profession decline the number of places where training can take place also declines. Several people have commented to the Chamber that when they attend meetings and conferences of engineers the number of young people present is declining.

15. Chamber members believe that we should learn from practice overseas. In many European countries a person that has qualified as an engineer is able to indicate their profession by putting an abbreviation of engineer in front of their name, such as Eng or Ing, in the same way that a doctor can put the abbreviation Dr. Frequently in discussions on recruitment into engineering in this country, comparison is made with India and China where the increasing numbers of young engineers (and scientists) is widely publicised. It would be instructive to find out what is done in those countries to attract young people in particular into the profession and to see how we could learn from their experience.

16. Summary • Engineering has lost status compared to other professions • Modern engineering achievements are not celebrated • Both status and pay rates have declined in comparison to other professions • The UK should look at best practice in other countries to help understand how more people can be attracted into engineering

Engineering, Innovation and R&D 17. Engineers see themselves, with justification, as being problem solvers and having a very “can do” attitude in their professional lives. They have a key role to play in innovation and R&D in today’s business world.

18. Earlier in this paper attention was drawn to the huge increases in productivity that has been seen in many parts of the manufacturing sector and engineering has played a large part in this. Representatives of businesses in sectors as diverse as construction and agriculture, automotive and food production, environmental and medical technologies all believe that they have a need for the skills of engineers of one form or another both to maintain their existing operations but also to be part of the development of the business and industry in the future.

19. Engineers are often needed to translate an innovative idea into a practical reality. The enhanced productivity in carpet manufacture that was quoted earlier came about

374 because it was recognised that the application of computer technology should be able to make it easier for one person to manage several looms at once. However, it required knowledge of engineering to apply that innovative idea to the looms and to make it work with the undoubted success that has been achieved.

20. Politicians, Chambers of Commerce and many others call for the UK to increase its focus on research and development if it is to compete in the modern world and meet the objectives in the Lisbon Agenda. However, there is an imbalance in the support that is given in the UK to research and development. It is often easier to get support for research rather than for development. Clearly there is an overlap between the two, but after research, whether in the academic world or elsewhere, there is usually a need for some work to be done to translate the new knowledge into a workable business idea and this is frequently an area where engineering skills will come to the fore.

21. The boundaries between new ideas, good design and the use of materials and resources come together in engineering. It therefore makes the discipline important to both research and development – the development of new knowledge and the translation of that knowledge into products or services that meet the needs of business and the market.

22. Summary • Engineering is a problem solving profession, it has a natural inclination to innovation • Many new products and services are the result of engineers bringing new ideas and knowledge together in a practical combination.

Engineering Training and the Skills Base 23. It has already been noted that there is a decline in the number of recruits coming into the engineering profession. The decline has further reduced the training places that are available. There has been considerable publicity about the reduction in the number of university departments that are offering places in science and engineering, but, there is also a decline in the number of local colleges that are offering training for those that wish to seek craft based training in engineering.

24. The two routes into the engineering profession through university and through craft based training are important to the industry. Many businesses have spoken to the Chamber over a number of years about their concern that they are finding it difficult to recruit engineers including those at technician level that earlier would have been graduating from local colleges.

25. At present in Herefordshire and Worcestershire it appears that there is only one training provider, based in Hereford that has an engineering workshop and offers genuine workshop based training for industrial apprenticeships. Several businesses have said that it is very difficult for young people to get this training because having just left school they will not have their own transport and public transport will not enable them to get to training easily from many parts of the area.

27. It is important to assess the skills acquired by the two access routes into the profession. Some of the engineering graduates from university are said to be weak in

375 some of the practical based skills. This can not only be a problem when they are taking up a position in industry but also can hold them back in not having a proper appreciation of practical implementation of some ideas.

28. There are many diverse and specialist areas within the overall engineering sector. This sometimes means that the specialist training needed within a specific sector is limited. For example, a Worcestershire based business that undertakes geophysical surveys for clients ranging from civil engineers to archaeologists has said that it has to recruit graduates both to do those tasks that it would expect to be done by a graduate level engineer but also to do tasks that could be done by a technician because it finds it almost impossible to recruit appropriately trained people at technician level.

29. That particular business would be happy to offer training at technician level and would be willing to work with appropriate bodies to ensure that the training was properly accredited and at a standard that would be accepted by others, a genuine qualification. Training in this way may be applicable in other specialisms and mechanisms to help businesses provide training in this way would be beneficial.

30. Clearly if we are to see an increase in the number of people entering the profession it is important to ensure that there is a clear understanding among young people in particular about what the opportunities and challenges are when they are making career choices. Earlier, in the paragraphs on the perceived status of the profession it was noted that engineering is sometimes seen as dirty and lacking in real skills and challenges. That perception is often reinforced in young people by attitudes among adults such as parents and teachers who may also have a lack of understanding of the present situation. More needs to be done to correct this.

31. Business and bodies such as Chambers of Commerce have a part to play in this, making more opportunities available for young people and teachers to see modern engineering and manufacturing operations at the time when education and career choices have to be made. This can be done with more opportunities for open days, work experience and similar schemes. Many businesses, especially small businesses, recognise the importance of this activity but are concerned about the additional work and responsibility in arranging this. However it is important to their future to invest time in this way.

32. In Malvern, in South Worcestershire, a group of manufacturers on a large industrial estate where many are in high technology businesses, grouped together to open up to students from local schools together with their teachers and parents and enable them to see the opportunities that were being offered. This proved to be a very useful exercise and dispelled many myths for the young people and adults and made them aware of exciting career opportunities.

33. Summary • The decline in recruits to the sector has contributed to the decline in training places • There is a need to encourage more entrants to the profession through the craft based route as well as the university route.

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• It is important for university graduates to have an adequate grasp of practical skills • More needs to be done at local level by business, Chambers of Commerce and others to make young people, their parents and teachers aware of the opportunities and challenges in engineering and to dispel inaccurate and outdated images.

Conclusion 34. Engineering is, and will remain, vital to the future of the UK economy. It has suffered because of the expansion of the service sector in relation to the manufacturing sector and the changes that have taken place in many traditional industrial sectors. These changes have tended to produce a general view that the smaller engineering and manufacturing sector is therefore less important and “less modern”.

35. It is necessary for us to address the issue of public understanding of the nature and importance of engineering to our modern economy. Linked to that is the issue of status and remuneration in the profession and the importance of celebrating the success and achievements of our engineers.

36. The UK has a proud and distinguished engineering history and will continue to need the same skills and creativity in the future if it is going to develop as a place to invest and to grow a business and to meet the targets of the Lisbon Agenda.

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Memorandum 57

Submission from CaSE (The Campaign for Science and Engineering)

Introduction 1. The Campaign for Science & Engineering (CaSE) is a pressure group aiming to improve the scientific and engineering health of the UK. Our objective is to communicate to Parliament and the nation as a whole the economic and cultural importance of science and engineering, and the vital need for its funding by government and industry. CaSE is supported by its members, which includes individuals, corporations, universities, research charities and learned and professional societies.

2. CaSE is concerned about science and engineering policy from school education through teaching and research in Higher Education Institutions and on to how the public and private sector fund and use R&D. CaSE is therefore pleased the IUSS Committee is holding an inquiry into engineering in the UK. This response is to the general engineering inquiry and not the case studies.

The role of engineering and engineers in UK society 3. Engineers are critical to the research and development of goods, services and infrastructure that benefit society. They are at the forefront in creating technological solutions to the big issues facing the UK and the rest of the world, such as energy supply, adapting to climate change, transportation, communication and health. Most engineering advancements benefit the vast majority of people, as reflected in a recent survey that found that 94% of people believe that engineering makes a good contribution to society.i235

4. It is vital that engineers communicate to the public the importance of engineering. The US National Academy of Engineers identified both the great engineering achievements of the 20th century and the grand challenges for the 21st century.236 These initiatives combined to show how engineering has transformed modern society and can lead us to a better future. Similar initiatives could be taken to raise the profile and importance of engineering in the UK. This should help increase the attractiveness of the discipline to students as well as raising public interest and hopefully eventual understanding of how engineering impacts upon all of our lives.

5. Engineering advances can have a major impact on society and societal values can impact engineering. This complimentary relationship means that it is important to improve public dialogue on engineering issues. A good example of this, are the proposals for nanotechnology produced by the Royal Academy of Engineering and the Royal Society.

The role of engineering and engineers in UK's innovation drive

235 Royal Academy of Engineering and ETB (2007) Public Attitudes to and Perceptions of Engineering and Engineers 2007 236 See National Academy of Engineering websites: http://www.greatachievements.org/ and http://www.engineeringchallenges.org/.

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6. Engineering is central to the UK’s innovation drive. Most countries see investing in scientific discovery and engineering applications as the main drivers to innovation and economic competitiveness. Investment in engineering research and the training of engineers leads to advances both in established fields and the development on new ones. High-technology innovations are often at the crossroads between scientific discovery and engineering application.

7. Unfortunately, the Innovation White Paper, Innovation Nation, did not fully reflect the vital contribution that engineering, or science, makes to the UK’s innovation drive. Compared to the previous Science and Innovation White Paper, there was not the same importance given to science and engineering. At a time when other countries, most notably China and India, are ramping up their investment in engineering the UK cannot afford to become complacent.

State of the engineering skills base in the UK 8. The future supply of engineers in the UK is dependent on the UK’s ability to train home grown engineers or attract them from abroad.

9. The first step is to excite students about engineering, to make sure they understand what it is, and the career opportunities that it leads to. Better public communication of the role of engineering should help as well as more specific improvements in careers advice, as currently underway. There are increasing STEM outreach schemes working in this area. It is important that these schemes are of an appropriate standard, delivered in a way that is most beneficial to their goals (e.g. influencing subject choice) and targeted to those groups that most need them.

10. In order to have home grown engineers there will need to be improvements in the provision of mathematics and physics in schools. There is no point exciting students about engineering if they are not able to study it properly. The shortage of specialist teachers in physics and mathematics limits our supply of well-trained engineers, as does the small number of schools offering separate science GCSEs (and therefore a good grounding in physics). Getting the secondary education system right is critical to improving the uptake of engineering in higher education. Numerous Government initiatives have tried to improve the teaching situation, but it seems that more radical approaches need to be taken to increase recruitment. More attention should be paid to retention of teachers (currently about 50% over 5 years) and a mechanism needs to be developed to target specialist teachers to the schools where they are most needed (i.e. offering financial incentives to work in schools that had experienced persistent vacancies in shortage subjects).

11. Overall, the number of students taking engineering subjects at university level has been fairly constant whilst other subjects have been increasing. However, nearly 30% of engineering and technology students in higher education are from outside of the UK. For postgraduate courses (taught and research) the percentage of non-EU students is almost half in most engineering disciplines.237 The UK needs to consider the implications of its increasing reliance on international engineers and how it can continue to attract, educate and collaborate with them in the future.

237 ETB (2007) Engineering UK

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12. Although there are a number of initiatives to engage under-represented groups in engineering more work are needed to ensure that there is a diverse range of people in engineering. Outreach initiatives, such as science and engineering clubs, should be focusing on engaging with these groups in particular. Educating and retaining an appropriate level of women in engineering would massively increase the UK’s engineering potential.

Engineering and R&D 13. The research base is the bedrock which enables and supports private and public sector R&D. There is a growing concern that basic research is being squeezed within Research Councils’ budgets, due to a greater emphasis on economic impact. For the UK’s future economic success it is vital that the UK maintains a healthy research base that is able to take risks and innovate. It is also vital that the UK ensures that government departments and industry as a whole increase their investment in R&D.

14. Engineering is a fundamental component to private sector R&D. It is a very strong component of the UK’s aerospace and defense sector, which is the UK’s second largest sector for R&D after pharmaceuticals and biotechnology. It is also vital to the UK’s automotive, telecommunications, energy, computing industries and a range of other technology-oriented industries. However, it is also worth noting that engineers bring valuable skills to other sectors, such as finance and management consulting.

15. R&D investment is a key factor in determining a company’s future success. The UK needs to improve its standing as a place for R&D investment. The UK’s competitive advantages are a relatively strong research base and linkages between different scientific and engineering disciplines. The UK needs to ensure that it produces enough highly skilled engineers and technicians needed for industry.

16. The public sector also invests in engineering R&D. However, not at the same scale it once did. The Sainsbury Review recommended that government departments increase their investment in R&D. Government departments need to create better mechanisms to stimulate engineering solutions to particular public policy issues, be it flooding, sustainable cities, low carbon energy, etc. It is critical that mission-oriented research comes out of departmental R&D budgets rather than the science budget.

The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering

17. The Committee has rightly identified a range of actors that need to support the development of engineering in the UK. The Government needs to take the lead by investing in the science and engineering base to train engineers and to fund basic research. It must also fund and deliver quality STEM education for all students. It should also take the lead role in ensuring the coordination of publicly funded initiatives to promote engineering skills and careers advice. Engineers in all government departments and agencies should be supported.

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DIUS needs to continue and develop its support for the science and engineering profession within government departments.

18. Professional bodies need to promote their disciplines and provide professional accreditation. Professional bodies also play an important role in supporting the development of their discipline and fostering a sense of community.

19. Universities need to provide the training and careers advice necessary to produce trained engineers. It very difficult if not impossible to maintain high standards in teaching engineering in a university that is not research active. Therefore, the consequences of focusing research into fewer research-intensive universities may have negative affects on producing engineers.

20. Industry has an important role in engaging students about the career opportunities that an engineering degree provides and providing valuable apprenticeship and work placement schemes.

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Memorandum 58

Submission from Thales

Terms of reference:

• (A)The role of engineering and engineers in UK society; • (B)The role of engineering and engineers in UK’s innovation drive; • (C)The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile); • (D)The importance of engineering to R&D and the contribution of R&D to engineering; • (E)The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering.

Introduction 1. Thales is a major international company, employing 68,000 globally in 50 countries covering interests in defence, aerospace and security for a wide range of customers including national governments.

2. Thales UK is a significant industrial player, employing 9,000 across the UK. Thales UK revenue in 2007 was over £1bn, a third of which was exports. Thales provides systems at the heart of the UK’s military and security capability, as well as in the non-defence field. The company is a Prime Contractor, systems integrator, technology provider and service provider. In Defence, our current major programme involvement includes being a member of the Alliance delivering the Royal Navy’s aircraft carriers, Prime Contractor for the Watchkeeper unmanned aerial vehicle and System of Systems Integrator for the Future Rapid Effects System requirement. As well as being a major contractor to the MOD, Thales has a major presence in the transport, telecommunication and security sectors, with major national customers including Network Rail. Electronic engineering is the core technical discipline of the operations of Thales. Our engineering pedigree in the UK dates back to 1888 as a result of our heritage with Barr & Stroud, now Thales UK (optronics).

(A) The Role of Engineering and Engineers in UK Society

3. As a global organisation, we are in a position to compare the supply of engineers across several countries, most particularly across Europe. It is clear that, comparatively, the UK supply is not what it needs to be to support the growth of the UK industry. We face shortages, and stiff competition, in most engineering disciplines, particularly in systems engineering. Thales is therefore dedicated to supporting all efforts to promote engineering as a career for young people in the UK. Thales is focussed on the supply of capable people for the job regardless of gender or ethnicity. In our graduate recruitment campaigns we are currently receiving 28% of all applications from non EU citizens.

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4. Our strategy is, therefore, to broaden the supply of recruits as much as possible both by considering the engagement of younger students in schools and retraining individuals with legacy skills. This requires the development of education and re-training solutions with schools and universities. There is an opportunity for all stakeholders-Government, industry and institutions-to work more closely together to meet these objectives.

(C) The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile)

5. Engineering is the core technical discipline of the operations of Thales. Thales UK employs 4,000 engineers and technicians, of which some 90% are qualified to degree level or above. In 2007 Thales UK recruited 83 graduates. In 2008 we look to recruit 110 graduates and in 2009 150. 80% of our graduate intake are engineers. The UK Labour market has a shortage of engineering capability, most particularly in systems, in the south east.

6. Thales UK plans to create an Engineering school of excellence in order to combat the difficulties of recruiting and retaining skilled people in the rail signalling industry. The school of excellence will take on school-leavers and graduates to train as licensed engineers to support main line and mass transit solutions.

(D) The importance of engineering to R&D and the contribution of R&D to engineering

7. We consider that Engineering and Research are inextricably linked. The ability to apply new scientific and technical insight depends on effective and developing engineering expertise; and the development of insight is often enabled by engineering contact with the real world.

8. Engineering advances to exploit each wave of technology. We recommend most strongly the need for science, technology, engineering and business to march in harness. The mobile communications market is still influenced by the ground breaking science and engineering conducted in RACAL’s (now Thales) research laboratory in Reading.

(E) The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering.

9. Whilst industry clearly has a role in promoting the exciting options available to those who pursue a career in engineering, this has to be exercised by means of direct contact through the schools and the education system to start the students on this path.

10. By the time students are at university, the issues are fundamentally around retention (universities are reported to be seeing very high drop out rates from engineering courses) and then follow through into engineering

383 careers. Thales believes that it can support universities by making strategic links with a number of them who provide courses that are key to our business and work with them to evolve the curriculum, provide work experience opportunities for students, and career advice from an industry perspective.

11. Thales plays its part in promoting engineering skills and the formation and development of careers in engineering. Thales is involved in activity across the UK to promote the increase of the interest and supply of engineers by working with local schools and universities to engage with students on the opportunities provided by engineering.

12. The professional bodies must be the co-ordinator in the overall effort to promote engineering. There are a number of voices with the same message: if our efforts were pooled, we could be very effective. In order to achieve this, the professional bodies need to be seen to have strong support from Government.

13. Thales is a strong supporter of STEMNET (science, technology, engineering and mathematics network) and encourages all graduates with appropriate backgrounds to become Science and Engineering Ambassadors. Thales takes every request for help from a school seriously and does everything it can to support them. Volunteers work with schools to support everything from extra reading classes, careers talks and presentations to full day challenge events. Thales also recognises the value in competitions such as Young Engineer for Britain in inspiring young people to follow STEM as a career and supports both regional and national finals also sending role models from our engineering community to act as judges.

14. Thales has a four-year graduate development programme for all new graduate entrants. The Engineering stream of this programme is accredited by the Institution of Engineering and Technology, Institute of Physics, Institution of Mechanical Engineering, Royal Aeronautical Society and the Institute of Mathematics and its Applications. Graduates on this stream work towards becoming a Professionally Registered Engineer (either Chartered or Incorporated). Delivery of the Thales Graduate Development Programme is through Thales Universite. Thales Universite have enhanced the programme by developing a number of bespoke courses specific to the graduate population to develop both their behavioural skills and their knowledge of the business life cycle.

15. Thales ensures that the views of industry are being heard in the engineering institutions and the UK Engineering Council (ECUK) itself by maintaining positions on committees, taking part in focus groups and actively engaging on key issues. Thales has also pioneered the creation of the UK Initial Professional Development Forum where likeminded companies can meet to discuss issues around development of engineers and go forward to the institutions and ECUK with one voice. This has been welcomed by ECUK.

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Memorandum 59

Submission from Rolls-Royce

Background 1. Rolls-Royce is a global business providing power systems for use on land, sea and air with leading positions in civil and defence aerospace, marine and energy markets. The Company employs around 38,000 people worldwide in 50 countries with an annual turnover in 2007 of £7.4 billion.

2. Over the last five years Rolls-Royce has invested £3.5bn in R&D globally: £824m in 2007, of which approximately 71% was invested in the UK. Global investment on R&T in 2007 amounts to £205m, of which £140m or 68% was invested in the UK.

3. Rolls-Royce knowledge and expertise, is applied across a wide range of businesses from the research and development of the Trent engine family which will power the next generation of civil aircraft; marine propulsion and design; to low carbon technology, such as fuel cells.

4. The company employs around 8,750 engineers worldwide including some 5,750 in the UK based principally in Derby and Bristol. Engineering employees operate in a number of disciplines including control systems, design, electrical, aero thermal, materials, nuclear, measurement systems and manufacturing.

The role of engineering and engineers in UK society and innovation 5. Rolls-Royce has a long tradition of technological and engineering excellence which has an important role to play in contributing to the economic welfare of society and in helping to address some of the future challenges which society faces.

6. The Environment is not a new subject for the Company. Since the first commercial jet engines were produced in the 1950s, Rolls-Royce engineering expertise has helped reduce aircraft fuel burn by 70 per cent and noise by 75 per cent. Rolls-Royce is committed, with its partners, to further step changes in the environmental performance of our civil aero engines. Since 2000 the Company has steadily reduced gas turbine fuel burn by introducing innovative technologies for aerodynamics and materials into the Trent engine family. We are on track to meet voluntary new targets set by the aerospace industry to reduce CO2 emissions by 50 per cent per passenger km, NOx emissions by 80 per cent and perceived aircraft noise by 50 per cent - all by 2020 compared with the 2000 benchmark. These are significant step change improvements, which will help society continue to meet its increasing desire to travel by air, but in a sustainable manner.

7. The Company believes that its engineering and technological knowledge and expertise has a role to play in helping society to develop an effective response to Climate Change. Our experience and ability to draw together the engineering assets; project management skills, and other competencies required to deliver large scale research and technological solutions will help

8. society to roll out industrial scale solutions to climate change on an international basis. For example, the Group’s existing strengths in marine

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technology and experience of supporting a range of underwater systems is addressing the operational challenges of developing tidal stream electrical power systems.

9. Furthermore, environmental policy and regulation needs to be informed by good science and as a world-class engineering organisation, Rolls-Royce has the scientific and technical knowledge to help inform the debate.

10. High value manufacturing is an important contributor to economic welfare. A well balanced economy is better able to weather the cyclical nature experienced by sectors - such as the one currently being experienced in financial services. High value manufacturing benefits regional economies and provides important demand signals for skills and education; supports the science base through collaboration with local universities and colleges; sustains small to medium sized enterprises which comprise the supply chain by providing a route to market as well as important supplier engagement; and provides high value employment which underpins local economies.

11. For example, Rolls-Royce has 11,400 employees in Derby delivering payroll benefits of £0.5bn and supports a further 15000 employees in 125 supplier companies. Average salaries for employees are 139% and 119% of market rates for blue collar and white collar employees respectively. As a result, Derby has the highest exports per head anywhere in the UK; has 2.4 times the national average of skilled employees; and, the highest percentage of workforce in high technology of any UK city. This record attracts further investment and ancillary benefits for the local community – a larger proportion of children achieve five GCSEs or better; increased educational outreach and community support activities enhance opportunities, skills and the general standard of living.

12. Sustaining high-value added manufacturing requires world-class manufacturing engineering, manufacturing technology and design tools, supported by long-term research. These work best when co-located close to the manufacturing operations. It follows that if the research and engineering work is attracted overseas, in time the manufacturing will follow. Similarly if high value-added manufacturing is sourced overseas, IPR will leak away and engineering will lose contact with the product.

Engineering Skills 13. Rolls-Royce invests significantly in its people in order to maintain its reputation as a world class engineering company. Each year, the Company invests around £30m on training and vocational education. Typically 60% of our Graduate recruitment will be engineers and we have an excellent reputation in the UK graduate market for the quality of our graduate activity – the most recent Times ‘Top 100 UK Graduate Employers’ rated us as No 24 overall and No. 2 Engineering Employer (‘High Fliers Survey’ 2007)

14. The Company currently has 323 graduates on our Graduate Programme worldwide, of which 296 are based in the UK. Around 145 graduates were recruited in the UK last year and we plan to recruit a further 171 in 2008.

15. Rolls-Royce has developed two different styles of engineering development programme: ‘Leadership’ and ‘Professional excellence. Both schemes are popular and in 2007, we received 831 applications for 24 vacancies on the

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Engineering Graduate Leadership scheme and 1511 applications for 79 vacancies on the Engineering Professional Excellence scheme. Nevertheless in maintaining our high entry standards we did not fill all of these vacancies.

16. Rolls-Royce is increasingly concerned that the decreasing pool of high quality engineering graduates prevents us and moreover companies in our supply chain from recruiting graduates. The problems experienced by prime contractors (recruiting, developing and retaining graduates) are multiplied several times over for smaller companies in the supply chain.

17. Rolls-Royce has 550 Advanced Apprentices on its programme worldwide (446 in the UK). In 2007, we recruited 183 apprentices in the UK and in 2008 we plan to recruit a further 205. For our Apprenticeship Scheme we received 2203 applications for 185 vacancies in 2007 and in the current 2008 cycle, we have already received 2012 applications, as at the end of February. Our success might be judged by our 98% retention rate or perhaps that 30% of our Apprentices go on to occupy senior management roles.

18. We also have some concerns about the wider pool for apprenticeships and to help address this, we began in 2003 to train apprentices from supplier companies in Derby. In 2007, 23 apprentices were recruited on this community apprenticeship scheme.

19. Although Rolls-Royce has few problems attracting young apprentices, we have particular difficulty recruiting engineers mid-career with skills and experience directly relevant to our main products and services. In 2005 we ran a major campaign in the UK covering a range of engineering disciplines. This brought over 1200 formal applications but provided only 100 new recruits. This left the Company with unfilled vacancies in a number of specialist areas including stress, design, aerodynamics and electrical systems.

20. Rolls-Royce also has the industry wide problem of an aging population with 36% of our works populations over 50 years of age. This is expected to increase steadily to nearer 50% in the next five years with attrition rates, which have always been low for this population, tripling to circa 6% per annum. As a result, the Company would need to recruit 500 a year to maintain current headcount levels. There is a clear need to focus development of those currently employed in the sector by up-skilling.

21. One solution is an adult apprenticeship scheme. Rolls-Royce has a few adult apprentices and has trained nearly 100 adult apprentices in recent years. However, these are very much more expensive to train than young apprentices because of the differing levels of government support. It costs around £60,000 to deliver apprenticeships in engineering over three years, and although government funds around £14,000 for 16-18 year olds, this sum decreases for those over 18 and again for those over 25 years of age.

22. While apprenticeships are generally local, the make up of our Graduate recruitment in the UK is increasingly international in flavour. Around

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27% of our Graduate programme intake was from overseas students (up from 23% in 2006). On a positive note, by employing an international mix of people we can better reflect the global nature of our business and our customer base. However, foreign nationals are difficult to deploy on major UK projects in the sensitive defence sector.

23. In 2007, 32% of the Rolls-Royce of our graduate intake were female (up from 30% in 2006). This figure is improving but is affected by the relatively low proportions of female students studying Engineering and Science at University. Importance of engineering to R&D and the contribution of R&D to engineering 24. There is an important continuum of activity between basic research and technology and demonstration, which translates technology into products for the market place. In the aerospace sector this continuum spans a period of up to twenty years between the basic concept and exploitation.

25. The “Demonstration” phase is critically important in this continuum as it brings together all of the activities to prove and further refine the technology which eventually makes its way to market. It is in this area that there is a close relationship between our engineers and the science base, through the Rolls- Royce University Technology Centres and supplier companies, who collaborate on projects which have a clearly identifiable end product.

26. The turbine blade is typical of this: a turbine blade sells for about $10,000 which is the equivalent of over $1,000 per ounce (the price of Gold). This value is based on the complexity of the processes and technologies that enable its functionality. Developing components of this complexity requires relationships with research institutions and universities and the skills of material scientists, metallurgists, mathematicians, aerodynamicists, combustion engineers, aero thermal engineers, stress engineers, manufacturing engineers, process engineers, procurement specialists and logisticians.

27. In recent years the focus on R&T has lead to an important mismatch between government funding to create technology and knowledge and the funds allocated to pull technology through to product (i.e. £6bn compared with £300m).

28. Rolls-Royce is currently leading collaborations on important demonstrator programmes such as the Environmentally Friendly Engine project which will lead to step change improvements in the environmental performance of aero- engines. The consortium for this demonstrator programme lead by Rolls- Royce, comprises Goodrich; HS Marston; Bombardier; Smiths Aerospace; central government departments and regional development agencies and includes University Technology Centres at the Universities of Cambridge, Loughborough, Sheffield, Oxford, Birmingham and Queens Belfast. Teams of engineers in each of these companies and universities are essential to the realisation of this R and D project. The support of the Technology Strategy Board and the Regional Development Agencies is essential for such large – scale demonstrator projects to bring technology to the market.

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Roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering 29. The University Technology Centre (UTC) programme developed by Rolls-Royce is an example of successful collaboration and alignment between academia and industry. Over the last two decades, Rolls- Royce has established 20 UTCs in the UK and a further nine overseas, each with a specific area of research. These UTCs, provide an important opportunity for cross fertilisation of both people and knowledge and the Company’s five year rolling commitment helps support the recruitment and retention of key university research staff.

30. High value manufacturing provides an important demand for engineering skills, investment in people and career development. For a long time we have been critical about the messages that young people receive about manufacturing and careers in engineering. Much more effort is needed to promote manufacturing engineering as an attractive and rewarding career and industry and government need to work much more closely to encourage more young people into the sciences and engineering. Our young engineers will be needed to help provide the technological solutions to the challenges being posed to the environment and energy security in the future. Current policies which promotes the idea of a post-industrial society and a focus on financial services undermines this approach.

31. The company applauds the drive by Government to increase the number of apprenticeships but this policy needs to be aligned to industry. Around 1 million manufacturing jobs have been lost in the last ten years eroding the regional presence which provides the demand for such schemes – typically Rolls-Royce apprentices are recruited from within 10 to 25 miles of the Rolls- Royce operations.

32. Rolls-Royce invests around £750k pa in supporting higher education for our apprentices. The result is that over 50% of UK apprentices enter higher education courses before the age of 30, including Foundation Degrees. In Derby, Rolls-Royce apprentice training is delivered by the Centre of Vocational Excellence (CoVE) in Lean Manufacturing which is a partnership between Rolls-Royce, Derby College and Unite (the Union). Similar arrangements are in place with other colleges across the UK.

33. To promote engineering skills, Rolls-Royce collaborates with Professional engineering bodies to promote engineering on the ‘chartership’ of engineers, a key part of employee development programmes, and in particular the graduate programmes.

34. More recently we have started to work with the Professional engineering bodies to promote EngTech level membership to support the development of our apprentice population. We are also working with regional development agencies and to establish Advanced Manufacturing Research Centres in the UK – in Scotland and in the West Midlands. The Sheffield model – in which we participate with other collaborators including Boeing - will be replicated in Scotland on a site next to our operations in Inchinnan for Forming and Forging technologies.

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Memorandum 60

Submission from the Association of Colleges (AoC)

The role of colleges

1. The Association of Colleges (AoC) welcomes the opportunity to contribute to the Select Committee’s enquiry into engineering. The AoC is the representative body for the 400 further education colleges in England, Wales and Northern Ireland.

2. Further education colleges have a significant role in engineering:

• colleges equip 120,000 individuals a year with the engineering skills to help them progress to university or at work. College programmes are at levels 2, 3 and 4 in the national qualification framework;

• engineering staff in colleges work very closely with employers to assess, train and teach staff. The links between some colleges and employers have developed over decades. 40 college centres of vocational excellence (COVE) provide support for clusters of employers in particular specialities or regions;

• colleges are organisations with a strong social mission. They have a leading role in helping women develop careers in engineering and in encouraging a more diverse recruitment base for the industry.

Engineering skills in the Thames Gateway

Thames Gateway College is a partnership between Barking and Havering Colleges who developed a Centre for Manufacturing Excellence on the Ford site in Dagenham. In 2003/04 it had 724 students compared to 1,311 in 2007/08. This is made up from 14-16 year olds on work related learning programmes, 16-19 year olds studying full-time, apprentices and higher education students. On average, there are 2.5 applicants per place available.

The Centre has been selected as the London arm for National Skills Academy in Engineering, Manufacture and Process Industries. The College works closely with the Ford Motor Company in training semi-skilled workers and developing a B.Eng. (Engineering and Manufacturing).

3. We have collected views some of the thousands of professional engineers employed in FE colleges as lecturers, managers and sometimes principals. Our response focuses on the state of the engineering skills base in the UK. We have also provided a case study on nuclear engineering.

Demand for engineering skills

4. The engineering sector is vital for the success of the UK economy and the wealth of its citizens. Manufacturing accounts for 15% of Gross Domestic Product (GDP) and 55% of exports. Although there is a popular image of decline, UK engineering companies leads the world in certain sectors, for

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example aerospace, motorsports and medical devices. Engineering has a critical role in sustaining the UK research base. The Government’s public service agreement for science and technology identifies the need for a “strong supply of engineers, scientists and technologists” Enough people with the right skills are necessary to “give UK businesses and public services the drive and capacity to innovate”.

5. There are more than 2 million people in the UK working in occupations that have some engineering component. More than 1 million are in substantial engineering occupations. The total number employed has shrunk since 1970 and there have been enormous shifts away towards industries using new technology. Job roles have changed in response to downsizing and outsourcing and a shift towards higher skilled occupations. Although the content and nature of work has changed massively employees are predominantly male with relatively little part-time working or self- employment.

6. Colleges have had to reinvent their engineering departments to supply the skills needed in different firms and new sectors. A report entitled “Engineering UK 2007”, published in December 2007 by the Engineering and Technology Board (ETB), identified some key trends:

• the continuing ageing of the workforce;

• a growth in demand for science subjects at A-level;

• little growth in the proportion of women taking engineering courses;

• 26% decline in the number of further education learners in engineering;

• Low unemployment among graduates in engineering subjects;

• a pressing need to widen access to and increase capacity.

7. AoC agrees with the ETB that there is a need to widen access and to increase capacity of engineering education and training to meet the future skills needs of engineering industries.

The work of colleges to supply skills

8. Colleges have taken a number of practical steps to address industry skills needs:

• staff have been recruited directly from industry to develop new areas;

• colleges have worked with the Learning and Skills Council (LSC) to develop 40 Centres of Vocational Excellence (CoVE);

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• colleges have included state of the art engineering facilities in their new buildings. Annual capital investment by colleges now approaches £1 billion;

• colleges have taken action to ensure success rates in engineering courses have risen from around 60% at the start of the decade to 75% in 2005/06;

• colleges have worked with the Sector Skills Councils to raise the status of the industry, to deliver off-the-job training for engineering apprenticeships and to qualify the workforce;

• colleges are involved in almost all the partnerships that will be offering the engineering diploma in 2008/09;

• colleges have developed foundation degrees to meet the demand for higher-level skills.

Bedford College Bedford College has a strong engineering department with 1,482 students, 452 studying full- time and 1,030 part-time. The college offers courses in Electrical, Electronic, Mechanical, Aerospace and Motor Vehicle Engineering and Computer Technologies. A recent development is courses in installing and maintaining a variety of renewable energy and energy saving technologies. The college has also developed strong links with the aerospace industry, training multiple groups of students from companies such as Marshalls. For many years, it has delivered aerospace engineering training to groups from United Arab Emirates.

The downturn in further education numbers

9 The downturn in further education numbers identified in the ETB report needs to be placed in context and reflects the reduction in short courses and changes in demand resulting from new technology. However the decline in numbers is a real issue and is a direct consequence of decisions about public spending and the level of employer investment. The Government’s skills strategy which took effect in 2003 had the following elements:

• a drive to massively increase the number of adults gaining skills for life and level 2 qualifications;

• a shift in public funding towards these priorities with a compensating increase in the proportion of course costs expected to be met by learners from 25% to 50%. This allowed Government to cut public funding for adult learners by one-third;

• LSC funding for short courses was removed in 2005. In the longer-term the Government wishes Sector Skills Councils to decide which courses can be funded;

• the introduction of a new mode of delivery (Train to Gain) which was extended nationwide in 2006. Funding has been fully opened to

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competition to develop a stronger training market but it has taken time for both colleges and training providers to generate new employer demand. The current financial problems of Carter and Carter, the largest UK training provider, show that it not easy for any organisation to survive in the LSC’s new market. (See Times Educational Supplement, FE Focus page 1: ‘Where is the rescue mission? Funding quango is silent over 25,000 trainees left in limbo after collapse of Carter and Carter’);

• a drive to improve success rates culminating in the introduction of minimum levels of performance in 2007.

10 These policies have had a dramatic impact on the further education system and on the nature of the learners served by colleges. Over a six year period – from 2004/05 to 2010/11 the LSC will increase the share of adult learning funding spent on priority qualifications (skills for life, level 2, level 3) from 45% to 95%. AoC estimates that this represents a redistribution of £1 billion over 6 years. The number of adult learners funded by the LSC in further education fell by 1.4 million between 2004/05 and 2006/07. This was much more than forecast partly because learners taking priority courses cost much more than those whose learning is considered less important. This is encouraging colleges to focus on courses that are safe bets and may discourage innovation.

11 There are further shifts in Government policy over the next few years:

• the growth plan for Train to Gain to attract 1.8 million new learners by 2010 at an annual cost of £1 billion a year. The growth plan extends the focus of Train to Gain to level 3 qualifications, those working in big companies (as well as small) and those who are out of work;

• the new apprenticeship strategy, with much of the expansion focused on 19-25 year olds taking advanced apprenticeships (at level 3);

• the introduction of skills accounts for adult learning to create greater choice over £1.6 billion of public spending;

• the reorganisation of national agencies (including the LSC) as a result of the transfer of 16-19 funding to local authorities;

• funding for courses will increasingly only be available if they are linked to an individual’s current work or to the views of Sector Skills Councils;

• financial support is available for those facing high costs (for example childcare or hardship) or those on low incomes taking priority qualifications. The take-up of career development loans is relatively low.

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12. The ways in which colleges will continue to meet demand for engineering education and training are:

• working with employers to identify their skills needs and the ways in which training can be funded – either from the public purse or from fees;

• drawing down public funding for apprenticeships and low skilled workers in line with targets agreed with the LSC;

• developing niche courses for individuals wanting to reskill which can be entirely covered by fees;

• finding creative ways to ensure that education and training takes place with industry standard equipment;

East Berkshire College and the aircraft industry East Berkshire College works closely with the aircraft ground support industry associated with Heathrow. The programme integrates the components of the current apprenticeship frameworks while adding additional bespoke training at full cost for the employers. The bespoke elements were quality approved by the Institute of Motor Industry (IMI) and support the specialised skills needed by technicians in the ground support role. The ground support companies worked with the college in a collaborative development phase and remain as advisers to the scheme. American Airlines, Aviance ,VT Airside Solutions and BAA are amongst the employers who have apprentices on the scheme.

The Apprenticeship Strategy

13. The Prime Minister launched a new apprenticeships strategy which is likely to play a major role in addressing future engineering skills needs. The Government will implement its proposals through an Apprenticeships Bill expected in the next Parliamentary session.

14. Ministers want 1 in 5 young people undertaking an apprenticeship within the next decade and have accepted Lord Leitch’s recommendation that the number of apprentices should treble to 400,000 a year by 2020. They say that if employer demand surpasses these targets “the Government’s priority will be to find the resources to meet the demand within the budgets available”. Apprenticeships are seen as playing a major role in achieving the objective of raising the participation age to 18.

The strategy raises a number of issues:

• the right direction for Government policy: Colleges have taken a leading role in the national drive to reduce the number of adults with poor basic skills and to increase the number gaining skills at level 2 and 3 and support the Government’s view that apprenticeships should play a significant role in this effort;

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• quality and quantity: We support the target of 400,000 apprentices by the year 2020 but there is a risk that the drive to meet the target will affect the quality of the experience with knock-on effects for reputation;

• employer demand: The strategy introduces some flexibility to encourage employer use of apprenticeships. Despite a strong apprenticeship tradition in engineering it is not clear that private sector employers will be prepared to provide sufficient places at planned rates of public funding. New demands from schools and universities for more employer involvement may impact on their willingness to participate in the apprenticeship programme;

• changing attitudes of young people and parents: The Government rightly identifies the need to change attitudes but should not underestimate the challenge. Some of the most successful apprenticeships require specialised skills which take years of learning to acquire. Many young people feel that a broader education, perhaps involving a degree, is a safer bet. The Government’s reforms will make better links with education programmes and widen choices but may not go far enough to create a strong alternative to full-time university study;

• funding and costs: Government spending on apprenticeships will rise from £899 million in 2008/09 to £1,109 million in 2010/11. Officials calculate this will expand the number of places by 35,000 16-18 year olds (up from 246,000 to 281,000) and by 33,000 adults (up from 92,000 to 125,000). The calculations assume that public funding for adult apprenticeships will fall as employer contributions rise to 50%;

• a more flexible apprenticeship blueprint: The paper suggests tighter control of the apprenticeship brand by the National Apprenticeship Service but more flexibility for employers to design frameworks. This is a positive move as experience of recent years has shown that many apprentices learn better if practical skills associated with the job are taught and assessed as an integral part of the training. The new blueprint should also make it easier for young people to progress from diplomas to apprenticeships;

• programme-led apprenticeships: The paper implicitly criticises programme-led apprenticeships but does not explain that they developed to cope with the shortage of employer places. The conditions in some workplaces and the requirements of Health and Safety and employment law mean that some training must take place off the job. We give an example of this for the nuclear industry below;

• role of colleges: The Government strategy downplays the role of training providers and colleges in bringing together young people and employers in favour of a nationally run matching service. It is might be better to run the two side by side. Colleges provide the best links to education programmes for young people and developed programmes to meet new demands for higher skills and are well-placed to put their

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staff and modernised facilities at the service of the national apprenticeship strategy.

Diversity 15. The funding changes in further education have reduced the number of women on further education engineering courses. The growth of employment-based training could reinforce existing gender divisions. The apprenticeship strategy rightly recognises the need to challenge gender stereotyping but Government action may not be enough to overcome deep- seated employer and public attitudes. Where there is a shortage of training places, employers tend to make safe bets (for example by recruiting those with a family history in their sector).

16. Further education learners on engineering courses by gender, 2004/05 to 2006/07

200,000

150,000

100,000

50,000

0 2004/ 05 2005/ 06 2006/ 07

Female Male

17. Colleges are alert to these issues and continue to work to recruit and retain women in engineering:

Filton College Extensive promotion of positive images of BME and female engineering students displayed within the College and marketing materials. Female apprentices from Rolls-Royce have been selected for an LSC funding initiative, (‘Trading Places’), tracking females in engineering, including filming them undertaking their engineering studies in college.

Derwentside College The college has been involved in the Women into Science and Engineering (WISE) programme for several years, offering week long courses during the summer term for female pupils from partner schools to attend the college, work in the engineering section, visit local engineering companies and hear from female engineers. The College’s school link and Young Apprenticeship programmes include female pupils and they have also offered Women into Engineering tasters – some of whom have progressed to engineering courses and ultimately gained employment in the engineering sector.

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How one college supports the nuclear industry

18. Lakes College in West Cumbria works closely with Sellafield Ltd and a private training provider, Gen2 on a 3½ year apprenticeship programme on which there are currently 70 apprentices per year.

19. In recent years, Gen2 has offered practical workshop training in Machining, Welding and Fabrication and other elements of their NVQ for four days per week; Lakes College delivers the Technical Certificate on the other day. This is delivered at Level 2 for the first year then the apprentices move on to Level 3 for the remainder of the course. The Level 3 apprentices are trained in the workplace by Gen2.

20. Safety rules limit access by under-18 year olds to only working under close supervision in certain non-active areas. The partners have therefore agreed to change the programme to a different model in which Lakes College now deliver the one-year block training on campus and move apprentices fully trained in their technical certificate onto site where they are able to move and work in previously non-accessible areas. The willingness of the college, training provider and employer to work together on a joint problem and to change established ways of doing things is an example of the strength of the partnership.

21. The college has worked closely with Sellafield Ltd and Gen2 to raise success rates to the over 90%. Sellafield Ltd provides the college with relevant equipment to ensure that apprentices train in a realistic environment.

22. Lakes College also helps apprentices to progress through higher levels of NVQs, a Foundation Degree in Nuclear Decommissioning and onto a full degree in a nuclear related field. The foundation degree is offered in partnership with Gen2 and the University of Central Lancashire for individuals from Sellafield Ltd and other nuclear related industries. Work is underway to develop further degrees and foundation degrees.

23. The college is keen to help develop the nuclear scientists of the future and to develop world class skills through West Cumbria to the rest of the country. This will attract inward investment and support economic development in the region.

March 2008

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Memorandum 61

Submission from the Heating and Ventilating Contractors’ Association (HVCA)

Executive Summary

The HVCA is active in promoting careers and skills in the building services engineering sector of the construction industry. The Association concentrates on generating opportunities for young people to enter the profession at apprentice level.

1. Introduction

1.1. The HVCA represents the interests of firms active in the design, installation, commissioning and maintenance of heating, ventilating, air conditioning and refrigeration (hvacr) products and equipment. HVCA members are subject to regular, third-party inspection and assessment to ensure their technical and commercial competence.

1.2. The HVCA’s Education and Training Department provides the Association’s members with a wide range of expert advice and guidance on matters involving recruitment, new-entrant and mid-career vocational education and employee development.

1.3. HVCA training courses address many essential elements of members' activities, and the Association is registered as a Continuing Professional Development (CPD) provider with the Chartered Institute of Building Services Engineers, the Institute of Electrical Engineers and the Institute of Mechanical Engineers.

1.4. Against this background, the HVCA is supportive of the Prime Minister’s goals in setting-up the Department of Innovation, Universities and Skills, and we greatly welcome the decision by the IUS select committee to hold a major inquiry into engineering.

1.5. We are confining our comments to the committee’s last key discussion heading i.e. the roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering.

2. Background

2.1. Building Services Engineering is a highly skilled, highly technical and fast- paced industry which plays a fundamental role in shaping the environment in which we live and work. Ensuring a steady stream of well-educated recruits to the industry is therefore crucial both short and long term.

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2.2. The HVCA welcomes the government’s long-standing commitment to secondary and higher education system, as well as to vocational training. However, employers in the building services sector are concerned about levels of literacy and numeracy, employability and attitudinal skills of some of the new entrants. As things stand, it will be increasingly difficult to attract good quality applicants into the industry able to deliver the increasing demand for building services engineering.

2.3. At a basic level HVCA undertakes several careers related activities to inform school students of the opportunities available in the industry. HVCA supports initiatives such as mobile classrooms to give school students the opportunity to gain exposure to practical skills relevant to a future career in the industry.

2.4. The basic message contained within the Leitch Report is that the UK must spend significantly more on boosting skills for everyone at every level and give employers a much stronger voice in deciding what should be funded.

2.5. HVCA supports the Government’s drive to increase the number of apprenticeships within the Building Services Industry. We see our role as a leading association as:

2.5.1. assisting BSE employers in offering sustainable apprenticeships placements, that provide a new entrant with the opportunity to not only enter the industry, but to progress to be a future industry leader;

2.5.2. securing funding to assist our employers to train craftspeople to the high levels needed to meet these demands;

2.5.3. demystifying the maze of qualifications and funding rules that currently deter our employers from investing in training and that cause them to consider migrant labour as the easy option, thus working against the long term future of the UK economy;

2.5.4. identifying areas of future training need and of re-skilling, such as in energy efficiency and climate change, and

2.5.5. working, with sector skills councils and other funding bodies, to ensure capacity is available to meet training needs.

3. New and environmental technologies

3.1. The building services engineering sector has a major role to play in the development of new and environmental technologies, with significant investment in renewables technologies in the run up to the assessment of Kyoto priorities in 2010. The actual business readiness of the sector however may be running behind that of the developing market as a significant number of companies claim to have few of the skills required to install the new technologies.

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3.2. This leaves the sector open to global competition as building services engineering companies abroad, particularly in Germany and Denmark but also in the rest of Europe, have more advanced skills in environmental technologies, and already European companies are winning contracts for installation of environmental technologies in the UK, with the Olympics in 2012 expected to exacerbate the situation. It is therefore imperative that the sector improves its skills in environmental technology installation.

3.3. The lack of formalised qualifications within an accredited qualifications framework means that currently the sector is relying on manufacturers and some private companies to carry out non-accredited installation training. This training develops specific product skills but possibly fails to develop generic skills in these technologies. In addition there is no way to quality-assure the end product. There is no development of these skills in the generic apprenticeship schemes currently, which suggests that the sector is not developing the new skills at entry level to the sector. All these issues identify a significant gap between requirement and provision currently which needs to be addressed urgently.

4. Wider and Sustainable Higher Education Provision

4.1. There is a low number of higher education establishments offering building services engineering sector courses spread unevenly around the UK, resulting in some areas with no provision at all. This is an acute problem for individuals who need to gain a professional qualification alongside their work. HVCA would like to work with new and existing providers to develop a sustainable UK-wide network of HE provision which is relevant to the ‘real world’. This will bridge the gap between operatives and professionals within the sector and encourage the uptake of higher level engineering qualifications.

4.2. Trade associations across the sector have long campaigned to create a training system which is more responsive to their requirements. Training to NVQ Level 2 does not fully meet the needs of our employer businesses, many of whom require Level 3 skills. This, coupled with age and budgetary restrictions on apprenticeship funding, and the restrictions applied to the Train to Gain funding programme, means the government’s funding footprint has up to now not catered for the full range and scope of training for new entrants and existing workers at all levels within our businesses.

5. Training Fund and a National Skills Academy

5.1. The HVCA believes that developing an employer-led training fund / mechanism is an important concept for our sector, and we have been developing this with industry partners for some time. We are currently exploring possible funding models and looking at schemes being utilised in the UK and across the world

5.2. One model we are currently exploring is that of a hvacr Skills Academy which would allow us to match employer contributions with possible EU

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funding. This would allow us to finance crucial industry initiatives such as: adult training models; models for career changers, particularly those leaving the armed forces; accrediting employers and manufacturers’ training schemes; and developing the education and training services of the Association as a kite mark or brand of quality training

5.3. Employers have many concerns with the quality and teaching provided by further education, while there is also wide variation in the achievement of quality marks by providers. Through the Academy we could work with providers to improve the quality of teaching and administration and also encourage achievement of quality marks. The end result would be that employers will have confidence that FE, HE and private training provision delivers quality training that motivates trainees and maintains good communication links between provider, trainee and employer

6. The HVCA would welcome the opportunity to discuss the issues we have put forward in this submission with the committee’s members. We would also be pleased to host a visit for the committee to one of our mobile classrooms or training venues.

March 2008

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Memorandum 62

Submission from The Royal Society

Key Points • For engineering to thrive in the UK, it is vital that the country has a strong science and maths base. • The number of UK‐domiciled students at undergraduate and postgraduate level in engineering has remained broadly static over the last ten years, at a time when student numbers generally have increased significantly. • It is important that the different areas of engineering are able to work well together. • Engineers are vital to the success of the UK’s economy, and to our ability to innovate successfully. • The Royal Society itself is taking a series of practical initiatives to promote engineering and engineering‐based innovation in the UK.

1. The UK science and engineering base For engineering to thrive in the UK, it is essential that the country has a strong science and engineering base. It is vital that sufficient numbers of people choose to study STEM subjects, including engineering, at university level.

2. Higher education trends in engineering Our reports A degree of concern? and A higher degree of concern analysed trends in STEM subjects at higher education level in the UK. The analysis of engineering subjects revealed that during the period 1994/95 to 2004/05 the number of both first degrees and masters degrees awarded to UK‐domiciled students in various engineering subjects remained fairly static. This is in a context of an increase of over 20% in the total numbers of first degrees awarded to UK‐domiciled students in all subjects, and an increase of 65% in the number of masters awarded. PhDs awarded in engineering over the period were more volatile, however by 2004/05 numbers were broadly similar to 1994/95. Again, this was in the context of a rise of 63% in the number of PhDs in all subjects. Engineering therefore has not experienced the growth that some other subjects have seen.

UK higher education in engineering is highly international, with many non‐UK students choosing the UK as a destination to study engineering. Compared to other subjects, engineering has one of the highest proportions of non‐UK students at both undergraduate and postgraduate level. In civil engineering for example, in 2004/05 non‐UK students accounted for 31% of undergraduates, 69% of masters graduates, and 59% of PhD graduates. The UK is clearly globally competitive in terms of attracting overseas engineering students to the UK, and the UK benefits greatly from this. However, an obvious follow‐on issue that must be tackled is why some engineering courses are not as successful at attracting similar levels of demand from UK students.

3. Diversity Engineering is diverse, comprising many different disciplines – including civil engineering, chemical engineering, pharmaceutical engineering, electrical engineering, structural engineering, and computing engineering. For engineering to have as strong an impact as possible it is important that these different areas within engineering are able to operate well together when necessary.

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4. Innovation The value of engineers is increasingly recognised in all sectors of the economy, from traditional and high value manufacturing to economically important service industries, and cutting‐edge areas such as biotechnology. The expert advice offered by engineering consultancy services is vital to major infrastructure and development projects in the UK and abroad. Engineers are highly prized by employers in non‐engineering sectors because they offer particular skills. Engineering is highly applications‐focused, which, for example, makes engineers particularly attractive to City employers for their highly developed problem solving and analytical skills. Elsewhere, their understanding of design principles in the development of processes and solutions makes them desirable to business services providers. Engineers are therefore contributing to the UK’s overall innovation performance in a range of settings, in both STEM and non‐STEM fields. They are playing an important role in the economy and society.

5. The Royal Society and engineering Since its foundation in 1660, the Royal Society has always been strongly committed to promoting the application of scientific knowledge. This remains a core value. For example the Society has recently established an Enterprise Fund to provide funding for the crucial early stages of commercialisation. The fund aims to support innovation and very early stage high risk research with potential for breakthrough discoveries and commercial application. The fund will be run on a commercial basis and will leverage the Society's unique advantages, including the outstanding technical and scientific network, the extensive policy activity and the flexible time horizons for investment. Engineers also take an active part in many Society schemes, for example our University Research Fellowship (URF) programme, conference grants and the Industry Fellowship Scheme.

The Society hosts an annual 'From labs to riches' event, aimed at promoting innovation and wealth creation in science, engineering and technology amongst a mixture of academic entrepreneurs, financiers, journalists and prominent industry figures.

We are taking specific steps to encourage actively the nomination of excellent engineers for election to the Society: candidates based in industry may require special attention.

We would welcome the opportunity to work further with the IUSS committee on any of the issues raised in this response.

March 2008

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Memorandum 63

Submission from ACE (Association for Consultancy and Engineering)

Engineering Skills – A Business Perspective

Introduction

1. The Association for Consultancy and Engineering (ACE) welcomes the opportunity to submit evidence to the committee. Given the inquiry’s engineering skills remit, this submission will focus on why the supply of highly-skilled engineers in the UK is diminishing, what effect this is having on UK engineering companies and what can be done to reverse this trend.

2. ACE regularly carries out industry surveys, producing annual State of Business reports, as well as a recent Skills Shortages and Recruitment Agency Behaviours survey which analysed exactly how acute the engineering skills shortages are in the UK. This submission draws heavily on these surveys.

3. Also included here is a statement from Stephen Bailey, from ACE member firm Grontmij, who provide engineering expertise to a range of clients across the water, energy, systems, building, environment and transportation industries and are experts in nuclear decommissioning, on the issue of engineering in the nuclear power sector.

4. ACE believes this inquiry must have at its heart an understanding of the needs of the companies who employ the engineers themselves. Whilst UK firms are world leaders in engineering innovation at present, the lack of sufficient numbers of engineers threatens this position. Providing a highly skilled pool of qualified professionals to meet the present and future demands of UK engineering firms must be a fundamental aim.

5. ACE represents the business interests of the consultancy and engineering industry in the UK. We are the leading business association in this field, counting around 800 firms – large and small, operating across many disciplines – as our members, with a combined turnover of approximately £4.5bn and employing about 75,000 staff.

6. We believe our participation in this inquiry is critical. In advance of what we hope will be an invitation to give oral evidence to the committee, we trust the information provided and ideas advanced below will aid in your inquiry.

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Executive Summary

The challenge

7. Domestic demand for consultancy and engineering services is outstripping the supply of highly-skilled engineers. Consultancy and engineering firms, while undoubtedly enjoying a period of sustained growth, are finding it increasingly difficult to attract the staff needed to complete their work programmes.

8. A recent ACE industry study, Skills Shortages and Recruitment Agency Behaviours, revealed that there are at present 20,000 unfilled vacancies in the consultancy and engineering sector. This astonishing figure is the manifestation of a far deeper crisis affecting engineering as a skill in the UK.

9. Compounding this is the constant process of osmosis away from the engineering profession. The number of engineering graduates entering the construction industry is falling, graduates preferring subjects such as finance, economics, law and business that lead into careers with higher earning-potential and prestige.

10. Of those that do study engineering, many decide upon graduation not to enter the engineering profession – their problem solving and numerical skills being highly attractive to financial organisations and other businesses. Many of those that begin a career in engineering do not remain in the profession for their entire working life, again being attracted to other careers.

11. This process is exacerbated by the lack of professional recognition of engineers in society, which contributes to comparatively low earning potential. Unless a significant shift is made at every level, from how engineering is communicated to schoolchildren and the wider public through to in-house professional development opportunities for experienced engineers and changes to work permit regulations, engineering skills will continue to diminish in the UK.

The solution

12. Engineers are essential to the health of UK society and its economy and a comprehensive solution needs to be found. ACE believes this is only possible through government, parliament and all industry representatives working as one to design and implement a comprehensive strategy.

13. ACE is recommending a multi-layered approach as the only solution that will meet present demands whilst also securing a sufficient engineering skills base for the future. This approach consists of:

• Increased investment in developing engineering as a subject and career of choice, including government- and industry-backed financial incentives for engineering students and for graduates who remain in the industry post- qualification. These could include tuition fee waivers. The aim should be for the UK to be self-sufficient in engineers in the long-term.

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• Relaxing of work-permit controls for non-EU engineers, especially the extension of the national shortage occupation list to include civil, structural, building services, mechanical and electrical engineering disciplines, sectors which UK engineering firms have highlighted as having a significant shortage. This is a short to medium term solution, planned to ensure sufficient engineering talent exists in the UK whilst other initiatives are developing home-grown engineers.

• Grandstanding and building upon the efforts being made in the engineering community to increase diversity in the industry, making an engineering career a more attractive option for under-represented groups.

• Co-operation between industry and government to better communicate the true value of engineering to the UK’s economy and society, providing suitably qualified practitioners with the same levels of professional respect as is afforded doctors, lawyers and accountants, raising the value of engineering services into line with these comparable professional services.

14. From ACE’s experiences in this area, the above is not a wish-list but an essential and achievable plan of action. ACE is working closely with government and other industry representatives to bring these actions into being, but as time passes the urgency for change increases dramatically. ACE warmly welcomes this inquiry and fully supports the efforts of the innovation, universities and skills committee to tackle this complex issue.

Numbers of engineers decreasing as workload increases

15. ACE’s recent Skills Shortages and Recruitment Agency Behaviours survey found that there are currently 20,000 unfilled jobs in the consultancy and engineering sector. Given that there are around 150,000 staff in the industry, this translates to 13% of all current jobs.

16. This survey also found that 24,000 professional vacancies are expected to be needed to be filled in the next 12 months.

17. ACE’s 2007 State of Business Report found that the majority of consultancy and engineering firms expect to see significant growth in the demand for consultancy and engineering services in the coming years. The UK’s future work programme includes:

• London 2012 Olympics • Crossrail • New build in the City of London, including the Shard of Glass, Heron Tower, The Pinnacle, The Cheese Grater and The Walkie Talkie, these five buildings alone having a combined projected cost of well over £2.5 billion • The £45 billion Building Schools for the Future programme • Plans for an additional 240,000 homes per year across the UK up to 2016

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• Repairing, updating and expanding the UK’s transport networks, including rail, road, airports and ports. • New nuclear power stations, decommissioning of existing nuclear power facilities and nuclear waste disposal • Development of the UK’s general energy generation infrastructure, including renewable energy projects • Mitigation of the effects of climate change, especially building of flood defences

18. ACE’s 2007 State of Business Report found respondents are also expecting increased global demand for consultancy and engineering services, especially in the Middle East, India and China. Whilst many of the engineers working for UK companies in these countries are indigenous, many others are expatriates from the UK, resulting in a reduction of the UK’s skills base.

Making engineering a subject of choice

19. ACE believes financial incentives to attract university students onto engineering courses will be necessary. Tuition fees for engineering subjects should be waived. ACE is in the process of internally agreeing proposals for exactly how these incentives should be structured but we will be happy to provide the committee with these at a later date.

20. ACE is committed to increasing the number of engineering students going into universities and graduates beginning engineering careers. To this end ACE will look at establishing a web-based resource of scholarships and graduate schemes offered by member firms to make the process of matching the right person with the right career easier.

21. The UK should aim to be self-sufficient in engineers, producing enough graduates from its own education system to fill all vacancies in UK engineering firms. The example of healthcare professionals is instructive. On 6 February the Secretary of State for Health Alan Johnson stated that from 2009 only doctors graduated from UK or EU medical schools will be able to apply for training jobs:

“Doctors from overseas have played an invaluable role in the NHS for many years and will continue to do so. They have helped us fill key skill-shortage areas such as psychiatry, obstetrics, gynaecology and paediatrics. But as the number of UK medical school graduates expands, there should be less need to rely on overseas doctors for these specialties.”

22. This is a position the National Health Service has reached after 50 years of reliance on doctors from non-EU countries, particularly India and Pakistan. It is only now, after great investment in the UK’s medical schools that we can realistically talk of self-sufficiency in this profession. Engineering should both heed this warning and follow this example. Government needs to increase investment in the provision of high-quality engineering education.

23. Whilst at present the number of UK engineering undergraduates is remaining static, the numbers of non-EU students is increasing, effectively reducing the size of the UK pool.

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24. The education system needs significant investment to ensure the supply of UK engineering graduates increases, especially to ensure more pupils studying A- Levels in physics and mathematics – the gateway subjects to engineering.

25. The example of teaching is also instructive. ‘Golden hellos’, offered to teachers 12 months after competing their induction year of between £2,500 and £5,000, are paid to incentivise a teaching career.

Filling the engineering gap now – work permits

26. ACE believes that civil, structural, building services, mechanical and electrical engineering disciplines must be added to the government’s national shortages occupation list as soon as possible.

27. There will be a time-lag between putting in place the changes to the education system and increased numbers of engineers being produced by the education system. The skills shortages already exist, so a short to medium term solution is required. ACE believes the only way to meet this immediate demand is to increase the numbers of engineering disciplines which are included on the UK’s national shortage occupation list, making it easier for UK firms to hire high-calibre engineers from non-EU countries.

28. ACE’s Skills Shortages and Recruitment Agency Behaviours survey found that, already, a significant proportion of fee-earning staff in the firms surveyed hold work permits. Of the total number of civil engineers working in the UK, 24% have been recruited from overseas. For structural engineers this figure increases to 27%. Overall, 88% of companies recruit non-UK nationals to fee-earning posts at present.

29. 14% of the total number of civil engineering roles is currently unfilled. This compares to 15% for electrical engineering, 12% for mechanical engineering and 11% for both structural and building services engineering. These are large numbers, overall equating to 20,000 current vacancies in the industry. As noted above, this is set to increase year on year.

Increasing diversity

30. ACE believes that the diversity within the engineering sector needs to be improved and is dedicated to working towards this end.

31. ACE is currently carrying out a survey into the diversity of the workforce in the consultancy and engineering industry. This is in response to government calls for more exact measurement of diversity within the sector. ACE will provide the committee with the results of its survey when they are available.

32. Relaxation of the work permits national shortage occupation list for engineers will also improve the diversity within the engineering industry.

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Perceptions of engineering

33. ACE believes the long-standing failure of government to protect the status of the professional title of ‘engineer’ has diluted and damaged the UK’s engineering heritage. With the term now used by a wide range of semi-skilled trades the attractiveness of engineering as a career choice has lessened, the image and recognition on offer in other professions catching the imagination of those beginning university.

34. ACE believes that government needs to visibly show its support for professional engineers and to acknowledge the importance of these engineers to the UK economy. The public perception of engineers is at odds with that in other countries, which is partly a result of the higher levels of protection and recognition given in these countries – in Europe the title ‘engineer’ carries the same weight as that of Dr.

35. Such visible support could come in the form of an advice note sent to all public sector clients, especially their media departments, from the Prime Minister, the Department for Business, Enterprise and Regulatory Reform (BERR), plus the sponsoring department calling for increased media attention to be given to the work of engineers in the construction process.

36. As a key part of the strategy to solve the engineering skills shortages crisis, ACE believes the government should be working closely with industry to improve the image and standing of engineers in UK society. Whilst the other recommendations outlined here deal with the micro-level, the broader need to develop and highlight the professional status of engineers is imperative. This is a ‘soft’ approach as opposed to the more direct actions outlined above, and would have no cost to the taxpayer.

Engineering Case Study: Nuclear Engineering

Stephen Bailey – Operations Director, Grontmij

37. I am an engineer by background and now work with engineering and environmental consultancy and ACE member firm Grontmij. Grontmij is working with the Nuclear Decommissioning Authority (NDA) and the UK Atomic Energy Authority (UKAEA), providing a complete range of engineering services civil, process, mechanical and electrical, to help support the clean up of nuclear waste.

38. I began my career in engineering in the 1980s with the strong belief that I was embarking upon a career rather than just taking on a job. Over time I became frustrated by the poor training and mentoring offered to me. I felt my creative and innovative skill sets – the core skills on which engineering is founded – were not

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being developed as they should be238. I became disillusioned with my chosen career path and made the difficult choice to transfer to the corporate finance sector where more appeared to be on offer.

39. Whilst the financial rewards were significantly greater there, after a time I began to doubt the move I had made. Happily, I was offered the opportunity to move back into engineering, where I worked with individuals who allowed me to develop my skills in ways that were not offered in my formative years.

40. I now take a great deal of pride in my belief that engineering is a career and not just a job. I advocate the importance of making a difference, and engineering allows you to do this both for the present and for the future. This is especially true for nuclear engineering, where the effects will be felt hundreds of years from now.

41. The UK has the engineering capacity to build both a new generation of nuclear power stations, irrespective of the source of particular technology239, and deal with waste arising from designing with decommissioning in mind (the end state).

42. This capacity is defined not by the pool of available expert nuclear engineers, but by the total number of engineers working in the UK. Nuclear engineering should be defined as the application of core skills in civil and structural and mechanical and electrical engineering disciplines into the nuclear industry.

43. For example, the Dragon and SGHWR nuclear reactors at UKAEA’s Winfrith site were both experimental reactors, never intended for commercial use. The information available on these reactors is much less than would be expected for a commercial reactor. The key engineering skills required here are problem-solving and developing innovative ideas for decommissioning to overcome this lack of information. In my own engineering training it was the understanding of fundamental engineering principles, problem-solving skills and the ability to think creatively that has underpinned all of my work.

44. This committee should concentrate on the broader engineering skills issues as are outlined in ACE’s main statement. The recommendations outlined, when taken together, will increase the size of the UK’s engineering pool, and therefore increase the number of potential engineers available to design, build and decommission our nuclear power stations of the future.

March 2008

238 I now realise that the conditions I experienced when I began my career are not those experienced by engineers today, who are offered excellent in-house training and personal development programmes.

239 The availability of the necessary components for these facilities will be the major factor if the UK fails to meet its nuclear power building programme, for example the number of reactor manufacturers is in very short supply when compared to the huge and growing demand for reactors across the world.

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Memorandum 64

Submission from the Society of Motor Manufacturers and Traders (SMMT) Ltd

1.0 Introduction 1.1 The Society of Motor Manufacturers and Traders (SMMT) is the leading trade association for the UK automotive industry, providing expert advice and information to its members as well as to external organisations. It represents more than 500 different sized member companies ranging from vehicle manufacturers, component and material suppliers to power train providers and design engineers. The motor industry is a crucial sector of the UK economy, generating a manufacturing turnover of £47 billion, contributing well over 10% of the UK’s total exports and supporting around 850,000 jobs.

1.2 SMMT welcomes the opportunity to submit a response to this inquiry. This response has been developed by SMMT in consultation with its membership. We support the Committee in looking at engineering in the UK and look forward to its final report and timely Government action on this important issue.

1.3 The key points in our response are: • A strong and innovative UK engineering base is integral and important to the UK economy and sustainability of the automotive sector. • There are competitiveness issues related to engineering for the sector. It must compete with other sectors to attract and recruit quality engineers and then, remunerate and retain them. The attractiveness of engineering and manufacturing careers is an ongoing issue. • The sector works closely and hopes to continue to work closely with other organisations involved in engineering, stakeholders and Government and hopes the topic remains a high-profile. A key problem is access and engagement with the skills system – such as tax credits.

2.0 SMMT engagement 2.1 The SMMT has broad engagement with the engineering agenda. Part of SMMT’s committee structure is the Design Engineering Group. The group exists to enhance the competitive position of the whole of the UK design engineering sector, both in the UK and internationally and help inform the SMMT view on the UK automotive and transport technology service industry. The committee consists of representatives from SMMT member companies. The SMMT also administers Foresight Vehicle, the UK's prime knowledge transfer network for the automotive industry240. The Foresight Vehicle programme has generated over 100 individual projects, which have delivered a wide range of advances in manufacturing processes and product concepts. Foresight vehicle was refocused under the Automotive Innovation and Growth Team (AIGT) in 2002 which brought together

240 For more information on Foresight Vehicle: www.foresightvehicle.org.uk

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major stakeholders from the automotive sector to identify the issues most likely to have the greatest impact on the long-term profitability of the sector. AIGT considered engineering support as crucial to the sector. We look forward to ‘AIGT II’ in 2008 when progress and next steps will be reviewed, refocused, revised and implemented. SMMT is closely involved in this process and stresses the importance of Department for Business, Enterprise and Regulatory (BERR) as a champion for automotive engineering.

2.2 SMMT Industry Forum, is the business improvement arm of the organisation. Industry Forum was established in 1996 with the aim of achieving sustainable world class operations in the UK automotive manufacturing and supply chain industry241. The original focus was on manufacturing process improvement in the automotive sector - based around its MasterClass product delivered by specially trained engineers working with shop-floor teams. Industry Forum has also trained engineers for other business improvement organisations in sectors such as aerospace, agriculture, metals and ceramics, and also for the regional initiative, the North East Productivity Alliance. The current products and services offered include lean assessment, team leader training, supply chain improvement, value stream mapping and raising purchasing performance. Industry Forum has also designed and developed products for the Automotive Academy and assisted the Academy in training trainers to strengthen the national delivery capability. In January 2007 the Automotive Academy now has been subsumed into the National Skills Academy for Manufacturing (NSAM)242.

2.3 In October 2006, SMMT made a comprehensive submission to the Trade and Industry Select Committee’s inquiry into skills shortages and the future of UK manufacturing. The submission outlined the diversity of the UK automotive industry, and the existence of difficult challenges to business improvement progress with the skills agenda. In January 2007 SMMT also submitted written evidence to Education and Skills Select Committee Inquiries into Post-16 Skills Training and 14-19 Specialised Diplomas, this was followed by an SMMT member giving oral evidence on the skills needs of SMEs. The evidence is documented in the final reports of these inquiries.

3.0 Integral role of engineering 3.1 The UK automotive sector is a significant contributor to the economy and the labour market. SMMT represents a wide range of companies of all sizes undertaking and utilising a wide-range of engineering activity. The UK has a number of other global strengths which includes the automotive design engineering sector and specialist vehicle production243.

3.2 The automotive sector is under increasing global competitiveness pressures and sustainability is vital. A number of factors impact on UK automotive manufacturing: • Higher relative operating costs

241 For more information on Industry Forum: www.industryforum.co.uk 242 For more information on the National Skills Academy for Manufacturing: www.nationalskillsacademy.gov.uk/academies/sectors/manufacturing/index.html 243 Automotive Sector Overview, SEMTA, www.semta.org.uk/employers/automotive/sector_overview.aspx

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• New technologies (both vehicle and manufacturing) and R&D intensity • Market and manufacturing growth in emerging (low-cost) markets, e.g. China • Central and Eastern Europe offer opportunities for growth • Heavy regulatory burdens • Skills gaps in UK manufacturing – including engineering skills gaps

To address these competitiveness issues in the UK we have high levels of investment and very advanced engineering (high value-added) and to support automotive manufacturing the sector has a large research, design and development profile. Maintenance and support of the UK engineering skills base, innovation and R&D is essential to the survival and development of UK automotive businesses. The challenges industry faces presents a good opportunity for engineers – striving for safe, low-carbon vehicles, whilst using new materials and improving productivity.

4.0 Innovation, R&D and engineering 4.1 The terms of reference for this inquiry include ‘the role of engineering and engineers in the UK’s innovation drive’. SMMT is not able to specifically comment on individual company involvement in innovative engineering and their specific projects as these are competitively sensitive and part of business plans. We are aware that across industry there is progress and involvement, particularly in low-carbon innovation. Automotive companies’ are involved in their own engineering projects, and we are also aware of their heavy involvement in new Low Carbon Vehicles Innovation Platform – which seeks to position the UK's automotive sector to benefit from growing public and private sector demand for lower carbon vehicles.

4.2 ‘In 2006, UK firms in the automobiles & parts sector invested £1,087 million in R&D, making it the fifth largest sector in the UK850. R&D is an important and ongoing feature of the automotive & parts sector given its highly competitive nature and short product cycles. Subsequently, a common feature amongst leading companies is a commitment to a high level of R&D expenditure.’244 This is further emphasised by the fact that Ford accounted for 77% of total UK R&D in 2006. We know such high- levels of investment are not industry-wide and R&D investment across the sector is varied. Automotive engineering R&D is important and internationally accepted that specialist engineering in the UK is a key strength. The Government has taken steps to ensure than small and medium companies can invest in engineering R&D, however our members still comment on the difficulty of the tax credits regime and accessing R&D assistance. Moreover, larger R&D companies still struggle with low-profits to offset the credit. It may be concluded that engineering R&D for our sector plays an important role in maintaining a strong R&D (and subsequent inward and outward investment and business interest) in the UK.

5.0 Industry image, access to and status of skills and funding 5.1 Skills are a core competitiveness issue for small, medium and large automotive enterprises. Recruitment, remuneration (cost) and retention

244 Information on the Department for Innovation, Universities and Skills website: www.innovation.gov.uk/rd_scoreboard/?p=41

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problems are experienced throughout manufacturing. The issues of recruitment and retention are by far and above the most important for the UK automotive industry going forward. However, there are several additional core priorities which need to be addressed, one of which is raising the standard of basic skills (over Level 3).

5.2 SMMT members frequently comment on the need to ensure STEM skills are properly taught throughout the education system and that they believe that engaging with young people (pre-14) is essential to improve the perception of careers in manufacturing/engineering industries. SMMT Industry Forum is working hard to change the perception of the engineering sector through initiatives such as the annual Youth Engineering Summit (YES). The aim of the YES is to raise awareness of engineering and its associated career options among school children aged 12 – 14 years old through improved information and advice.

5.3 Graduate recruitment into automotive manufacturing remains difficult, especially into smaller companies. There is a shortage of appropriately skilled graduates – attractiveness of engineering and understanding UK manufacturing is part of this. Recent trends in the UK output of UK engineering graduates are not encouraging – a CBI survey has shown that since 1994 the absolute number of students obtaining a first degree in engineering and technology has fallen by 11% per cent. It is clear that we face a challenge to ensure that young, bright employees are attracted to the sector in sufficient numbers. We also hear graduates are often not able to apply their skills in the workplace (i.e. appropriately skilled engineers). Currently we would assess that the engineering skills base in the UK is strong, but through business investment rather than from the education system and needs proper support from Government and stakeholders to ensure it is maintained. We would direct the Committee to work done by colleagues in the (then) Trade and Industry Select Committee and also to consider future skills, in particular for innovative engineering. Industry is changing – proactively and reactively as new issues arise: climate change and increasing competitiveness. Hence new skills are and will be needed and also included in training, education, qualification and business plans.

5.4 In 2006, the West Midlands’ hub of the Automotive Academy, Skills4Auto, identified ten priorities through a special exercise with major firms led by Ricardo Strategic Consulting, one of the priorities outlined was production and process engineering245. Since then we have seen the skills landscape alter in our sector with creation of NSAM, the publication of the Leitch Review and implementation plan, and a review of apprenticeships, we hope all of these changes will revive and address engineering and wider skills issues for our industry. SMMT has sought to establish closer links with the Sector Skills Council for Science, Engineering & Manufacturing Technologies (SEMTA), signing a Memorandum of Understanding. SMMT has provided office space for the launch team of NSAM and, along with other major engineering organisations, seconded staff to the team. We hope that the Committee recognises the plethora of organisations involved in engineering and skills, including those named above and the EEF, CBI and other respected organisations.

5.5 The number of organisations involved in engineering skills and the complexity of the skills system is an issue – in particular the complexity of funding. There are concerns about the way the Skills for Business network

245 www.skills4auto.com 414

is developing, for example the confusing relationship between SSCs and professional institutes such as Chartered Institute of Purchasing and Supply (CIPS), The Institute of Engineering and Technology (IET), and The Institute of Mechanical Engineers (IMECHE). Professional recognition can be a key driver for individuals to undertake up-skilling, acquire qualifications and develop their capabilities. The split of responsibilities between Skills for Business and the professions can be confusing even for insiders to understand and can only act as a deterrent to younger members of the workforce. This is just one example. We hope the Committee will also look at how the Train-to-Gain scheme works and particularly considers the difficulties of SMEs in accessing funding and also monitor progress on apprenticeships as a renewal strategy progresses.

6.0 Conclusion and next steps 6.1 An integrated approach involving business, engineering organisation, trade bodies, government and engineers is needed to properly assess, maintain and promote engineering in the UK. SMMT and its members are heavily dependent on supporting and benefiting a strong engineering skills base. We hope the Committee will use this inquiry to raise the profile of engineering skills issues and maintain pressure on Government to consider the wider skills and competitiveness issues for manufacturing industries.

6.2 SMMT looks forward to seeing more detail on engineering and the future of the sector in the Government’s Manufacturing Review and subsequent action on a strategy and also the expected revitalisation of the Automotive Innovation and Growth Team. We expect engineering to play a key role in both of these reviews.

6.3 Please find enclosed Motor Industry Facts 2007 which gives an overview of the sector and also the SMMT 8th Industry Sustainability Report which includes figures on all aspects of sustainability including investment, employment and skills. More information on SMMT can be found at: www.smmt.co.uk

6.4 Should the Committee need further information on any of the content in this submission or comments directly from our membership, please do hesitate to contact us.

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Memorandum 65

Submission from the Society of British Aerospace Companies

1. The Aerospace and Defence Industry - an industry based on engineering

1.1 SBAC is the UK's national trade association representing companies supplying civil air transport, aerospace defence, homeland security and space markets. SBAC encompasses the British Airports Group and UKspace. Together with its regional partners, SBAC represents over 2,600 companies across the UK supply chain, and assists them through facilitating innovation and competitiveness and providing regulatory services.

1.2 SBAC welcomes the House of Commons Innovation, Universities and Skills Committee’s inquiry examining the concerns of the UK’s engineering community. The UK Aerospace industry is globally competitive and has a strong reliance on a highly skilled workforce. It directly employs 124,000 people, of whom 80,000 are engineers or engineering technicians (one tenth of the UK engineering workforce of 800,000246). Gross Value Added (GVA) per employee for the Aerospace industry at £74,000 is also the highest of any sector of engineering.

1.3 Aerospace is an attractive and growing industrial sector. Globally the top 100 companies generated sales in excess of $480 billion in 2006 with growth currently running at approximately 5 per cent per annum. UK Aerospace manufacturing is globally competitive and exports 63 per cent of its total sales. In 2006, UK companies had a turnover of £20 billion and secured more than £26 billion of new orders.

1.4 The Aerospace and Defence industry, alongside pharmaceuticals, provides important balance to the UK economy and sustains high value careers in

246 http://www.prospects.ac.uk/cms/ShowPage/Home_page/Explore_job_sectors/Engineering/overview/p! eXefdcl 416

engineering, research and design. It is a manufacturing industry which is continually growing. Currently, 34 per cent of the industry’s employees hold a university degree or equivalent. This percentage is forecasted to increase to 40 per cent by 2010. The industry also has two per cent (2,600) of its workforce made up of apprentices.

1.5 Average salaries in the sector are £33,645 - 43 per cent higher than the UK average and 31 per cent above the manufacturing average. In many parts of the country, particularly the south west, east midlands, north west and north east, this means Aerospace is one of the highest value uses of labour and makes a significant contribution to regional economies. With approximately two thirds of the Aerospace workforce made up of engineers, the services which they provide are being both recognised and rewarded.

1.6 Research, development and new technology are incredibly important for long term competitiveness in the Aerospace industry. The sector is one of the most R&D intensive sectors in the UK economy and invests £2.5 billion per annum, second only to the pharmaceutical industry. A highly trained engineering workforce is crucial in insuring that the UK is able to maintain and raise current levels of manufacturing excellence on a world scale.

1.7 The Aerospace and Defence industry is committed to innovation, new technology and continuous improvement in engineering to address the challenges of environment, security and sustainability.

1.8 UK Aerospace and Defence engineers have a key role in developing new technology that both maintains the UK’s position as a world leader and delivers solutions to counter the challenges of Climate Change. Through projects like the Environmentally Friendly Engine programme and the Integrated Wing programme, which rely on UK engineers from the inception of the first idea to the maintenance of the end project, the UK will be able to deliver the necessary research and innovation that will reduce aviation’s environmental impact.

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2. Support for engineers through the National Aerospace Technology Strategy

2.1 The Aerospace industry is a manufacturing based industry; the UK’s strength is based on world-class technology built up by industry in partnership with government. The National Aerospace Technology Strategy (NATS) has been created to assist the many processes that support the industry’s long term health. The NATS details commitments that must be made by the UK Aerospace & Defence industry, and as such it is a tool that is useful in the development of an engineering workforce capable of meeting the long-term aspirations of the industry. NATS details product lifecycles and produces technology roadmaps governed by global market drivers; its proliferation of long-term programmes at the heart of the industry shows that Aerospace engineering is a constant source of opportunity. Long careers are highly probable as a result of products being constantly subject to revision, maintenance and upgrade. To help facilitate the recruitment drive needed to achieve this workforce, the NATS Technology Roadmaps supports the demand signal (as articulated in the Leitch Report) for which skills will be needed at certain points in the future.

2.3 Product lifecycles ensure that engineering is a constant source of opportunity, as demands for improved components/sub-streams of technologies are fed back to the science base, leading to more application of research and technology, and manufacturing, for the engineering workforce. As a result of this, engineers can look forward to long careers in the Aerospace industry, as products are constantly subject to modification, upgrade and technology insertions.

3. Engineers drive Aerospace research and innovation

3.1 The figure below details the Aerospace Technology Life-Cycle spanning forty years, and highlights the significant opportunities for engineers throughout the

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development of a large scale project. New technologies can take up to 15 years to progress from the concept stage to product application and this underscores the importance of maintaining the right skills base throughout the life of a product.

3.2 It is said that the Aerospace and Defence sector utilises more science than any other sector, a statement borne out by the diagram below:

3.3 R&D is vital in implementing various emerging technologies that will maintain and strengthen the UK’s position within the global Aerospace market. Due to the global nature of the sector, technologies engineered in the UK will benefit not only the UK, but also global markets. These same technologies will also require constant maintenance service and upgrades throughout their long working lives; these services will be provided by many of the engineers that were responsible for the products’ creation, as well as specialist maintenance engineers.

4. Engineering Skills: Attracting engineers to the Aerospace industry

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4.1 The Aerospace and Defence industry realises that there is a need to make the educational system aware of engineering as a career from an early stage, and to continue these reminders throughout the educational process. Individual industry members have set into operation a variety of programmes designed to promote Aerospace engineering from the age of 9 until graduate level.

4.2 Education: In promoting the quality of mathematics and science teaching, the Aerospace industry took the initiative by providing the initial corporate sponsors for the National Science Learning Centre at the University of York. This centre provides further training and development for science and mathematics teachers at the pre-university level. Other programmes such as road-shows, which demonstrate the exciting prospects of engineering, science, technology and manufacturing and their relevance to every day-to-day life have been in operation for some years. Industry has further supported teachers, through schemes such as “School Ambassadors”. These industry representatives give an insight into how the Aerospace works on its differing levels, as well as aiding teachers in their curriculum development and delivery. Many Aerospace companies have also set up educational websites, which supply curriculum materials, engineering careers advice as well as information about work experience.

4.3 Apprentices: SBAC members support and operate some of the largest UK engineering apprenticeship programmes. As an industry, we employ over 2, 500 apprentices, which the Aerospace and Defence industry aims to be educated up to NVQ Level 3. Those apprentices who succeed and excel during the scheme can often expect to be supported and encouraged by their organisation to further achievement in higher education.

4.4 SBAC supports the Government’s initiative to encourage apprenticeships, and would urge them to expand their campaigns to advise young people on the advantages of an apprenticeship route in aerospace as a good route into engineering.

4.5 Graduate Programmes: The Aerospace and Defence industry recognises that engineering graduates possess skills and knowledge that make them attractive 420

across a range of other sectors. Therefore UK engineering needs to maintain its attractive position as an interesting, stable and financially rewarding career option.

4.6 In the face of competing areas, such as finance sectors, or even engineering organisations based overseas, it is imperative that UK industry still attracts the brightest candidates. The industry already operates a number of Graduate Programmes. These are often organisation based schemes, building on the skills acquired at university and enhancing their effectiveness as engineers. Together with the recommendations based in the Leitch Review of Skills (2006), Aerospace is preparing itself for tackling the challenges ahead.

4.7 Leitch Review: According to the Leitch Review, 29 per cent of adults hold a degree or equivalent qualification. In the Aerospace industry the percentage of employees who have a degree or equivalent is 34 per cent. Highly qualified individuals are encouraged and attracted by the industry to join, and are critical to the success of the UK as a high-skills economy. The recommendations from Leitch are for 40 per cent of the general population to hold a degree by 2020. The proportion of Aerospace employees holding degrees will surpass this recommendation, with 40 per cent of employees set to hold a degree as early as 2010.

4.8 A key principle of the Leitch Review was to streamline the transition between academia and industry, and to implement a demand-led attitude to training. A demand-led approach will enable the academic community to deliver the qualifications and skills which are needed by industry. Through working with the Sector Skills Council for Science, Engineering and Manufacturing Technologies (SEMTA) and the National Skills Academy for Manufacturing (NSAM) in developing a Strategic Workforce Planning tool, employers will be able to influence the direction of learning and training for the next generation of engineers. In the case of the Aerospace and Defence industry, this means engineers are trained at a university level with the specific intention of fitting into an existing/emerging programme, rather than being trained in the hope of finding a programme within which they can fit retroactively.

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4.9 National Skills Academy for Manufacturing: Of the 11 NSAM corporate partners, 5 are from the field of Aerospace and Defence. These are: Rolls-Royce, Airbus, Corus, GKN and BAE Systems. This population of Aerospace companies again highlights the concerted effort being made by the industry to evolve the UK skills base into one that is globally competitive.

4.10 The presence of major Aerospace industry figures within NSAM indicates how necessary it is for the industry to maintain a high quality workforce to sustain our position as the second largest Aerospace industry in the world, and as one of the most profitable sectors in the UK.

4.11 Maintenance, Repair and Overhaul (MRO) is itself one of the largest sub sectors within UK Aerospace, and it is critical that a well-established skills base for MRO is maintained and nurtured within the UK to ensure the short and long term strength of the industry as a whole.

4.12 MRO engineering is also a lucrative revenue generator in its own right; the expertise of UK based MRO engineers and companies secures valuable revenue for the UK by performing vital maintenance work on foreign aircraft.

4.13 Though the Aerospace and Defence industry works towards long term targets in technology and product development, it should also be noted that it is prepared to respond to immediate problems. This can be seen by the technology insertion recently required for the Urgent Operational Requirements (UORs) in Afghanistan and Iraq.

5. Sustainable Aviation and opportunities for engineers

5.1 Sustainable Aviation is a comprehensive strategy for the long term sustainability of the UK aviation industry. This pioneering initiative brings together the UK’s leading airlines, airports, aerospace manufacturers and air navigation service providers. Signatories to the strategy are committed to delivering by 2020 the

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recommendations of the Advisory Council for Aeronautics Research in Europe (ACARE) in reducing: • carbon dioxide emissions by 50 per cent; • aircraft noise by 50 per cent; and • oxides of nitrogen (NOx) emissions by 80 per cent.

5.2 The strategy sets out the industry’s vision for a sustainable future, both environmentally and economically. Innovation from the UK is incorporated on all new aircraft which are sold throughout the world, meaning that any environmental improvements developed in the UK will make a contribution to the overall reduction in aviation emissions on a global scale.

5.3 The technologies being developed towards attaining these goals puts the Aerospace industry right at the cutting edge of innovative research. The self- imposed challenges of the Sustainable Aviation Strategy are focusing the direction of research into producing more efficient technologies to tackle the challenges that climate change presents. In doing so, openings for engineers in new emerging fields are constantly being created.

5.4 For example the Environmentally Friendly Engine (EFE) programme, which is

designed to deliver significant reductions in CO2 and NOx relative to 2000, is providing a new career avenue for Aerospace engineers. Many of the engineers who are involved during the development of these environmental technologies, will also be the same engineers who are later involved with the product development programmes. Engineers working on the EFE programme will be able to use the experience that they have gained for the development of the next generation of engines. As well as working on future systems, these engineers can also potentially integrate the new technologies into existing systems and thereby further improve current systems’ environmental performance.

5.5 Much of the innovative technology and process improvement is the product of a collaborative effort between industry and academia. The Aerospace and Defence sector have numerous examples of leading activity in this arena, for example BAe

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Systems has strategic partnerships with four leading UK Universities in Aeronautical Engineering (Cranfield), Support Engineering (Cambridge), Systems Engineering (Loughborough) and Distributed Data and Information Systems (Southampton) while continuing to work with dozens of other UK academic institutions. Rolls-Royce has set up University Technology Centres to this effect, where each centre is devoted to a specific technical discipline. The Lambert Review of Business-University Collaboration (2003) recognised the benefits such centres bring to the industry as well as universities and the economy as these technological improvements are introduced into the world.

6. Conclusion

• UK Aerospace and Defence companies directly employ an engineering workforce of 80,000, which is one tenth of the entire UK engineering community; • the Gross Value Added per employee for the Aerospace and Defence Industry is the highest of any engineering sector at £74,000; • 34 per cent of the industry’s employees hold a university degree or equivalent, by 2010 this is forecast to rise to 40 per cent; • average employee earnings in the sector are 43 per cent higher than the UK average; • UK aerospace engineers play a key role in developing the technologies which are combating Climate Change; and • the aerospace and defence industry are actively involved in building the required skills base for a successful and competitive global industry with its interaction throughout the UK educational cycle.

The engineering workforce remains a crucial part of the success of the UK Aerospace and Defence industry. With many different technologies being developed and installed into global markets, the UK Aerospace & Defence industry has a proven itself successful on a world scale.

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Aerospace and Defence is working to recruit new employees by investing considerably in apprenticeship schemes, and actively supporting graduates through university and beyond. By supporting the next generation of engineers, Aerospace is preparing for the future challenges ahead.

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Memorandum 66

Submission from the Ford Motor Company

1. FMC Motor Company (FMC) welcomes the opportunity to submit written evidence to the House of Commons Innovation, Universities and Skills Committee's Inquiry into Engineering.

Company Global Overview 2. FMC, headquartered in Dearborn, Michigan in the United States of America, is one of the world's largest vehicle manufacturers, with approximately 283,000 employees in 200 markets on six continents. Its automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Combined global sales were 6,553,000 in 2007. Net income globally last year was a loss of $2.7 billion, an improvement of $9.9 billion in 2006, and turnover was $174 billion. FMC's automotive-related activities include FMC Credit, Quality Care and Motorcraft. FMC observed its 100th anniversary on 16 June 2003.

Ford Motor Company in Britain 3. FMC group companies in Britain employ around 30,000 people – approximately one third of all Ford Motor Company employees in Europe. 15,500 of these people are employees of Jaguar and Land Rover. Ford expects to complete the sale of Jaguar and Land Rover to Tata Motors by the middle of 2008. However, at the time of submission Jaguar Land Rover remains part of Ford Motor Company. 4. FMC accounts for some 80% of UK automotive R&D, employing 9,500 people at the Ford of Europe technical centre located in Dunton, Essex and at Jaguar Land Rover technical centres at Whitley and Gaydon in the West Midlands. 5. Three Ford Motor Company brands build vehicles in the UK – Ford "Blue Oval", Jaguar and Land Rover. The Bridgend and Dagenham Engine Plants also build petrol and diesel engines respectively for Ford, Jaguar, Land Rover, Volvo and Mazda products. In addition, Mazda and Volvo have sales organisations in Britain, and Ford Financial Europe – Ford's financial services organisation – is headquartered here. 6. FMC group companies operate over 30 facilities in England, Wales and Scotland. A third of Ford's European spending, and over two-thirds of Jaguar and Land Rover's total spending, is in Britain. In total, Ford Motor Company spends around £4.5 billion in the UK each year. Jaguar and Land Rover are among the country's largest exporters to the United States market and are the UK's largest automotive exporter in value terms. 7. Ford of Britain operates three manufacturing centres in Britain: in addition to Dagenham and Bridgend the Ford Swaythling plant near Southampton manufactures Ford Transit variants. FMC's UK parts distribution centre is located in Daventry. 8. Jaguar's Castle Bromwich plant produces XK, XJ and XF vehicles. Jaguar's X- TYPE saloon and Land Rover Freelander are produced at Halewood on

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Merseyside. Land Rover's Solihull plant produces Defender, Discovery, Range Rover and Range Rover Sport.

Research and Development 9. Research and development forms an important part of FMC's activity in the UK. FMC accounts for 80% of automotive industry R&D in Britain, making us the 5th largest R&D investor across all sectors. FMC employs around 9,500 people at its three main technical centres in the country: the Ford of Britain technical centre at Dunton, Essex, and the Gaydon and Whitley centres responsible for Jaguar and Land Rover engineering development. R&D is also conducted into diesel engine engineering at the Ford Dagenham Diesel Centre and among the technical teams working in FMC manufacturing facilities. Total spending on R&D in the UK for FMC brands is around £800 million annually. 10. FMC adopts a multi-technology strategy approach to environmental R&D since there is no commercially and technically feasible single technology that alone can reduce CO2 emissions from road vehicles to sustainable levels. By applying a range of technologies across our product portfolio we will be offering customers more than 100 models and derivatives with improved tailpipe emissions and fuel economy performance over the next few years.

The role of engineering and engineers in UK society 11. The UK has a long and distinguished engineering tradition and FMC regards engineers as playing a crucial role in UK society. Engineers are involved in every stage of a product's journey from concept to customer, translating designs and research ideas into realisable commodities. 12. Ford believes that engineering expertise underpins UK manufacturing and is critical to the future vision of the UK as a high added value economy, particularly as globalisation is resulting in the overseas migration of lower cost jobs.

The role of engineering in UK's innovation drive and its importance to R&D

13. FMC believes that engineering is central to the UK's innovation drive and fundamental to our UK focus on Research and Development. 14. In particular, we believe that environmental technology development provides an economic opportunity for the UK and FMC is embracing that opportunity. 15. In 2006, FMC announced a £1 billion investment in low carbon technologies to be delivered principally by our UK technical centres over a 5 year period. That investment is focusing on lightweight vehicles, new advanced diesel and petrol engines, hybrid vehicles, bio-fuels and advanced transmissions. Availability of skilled individuals of sufficient quality and in sufficient quantity is critical to FMC's ability to achieve environmental objectives and our continued R&D investment in the UK.

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16. Together, Ford Motor Company brands are responsible for 80% of UK automotive R&D but it is concerning that the UK does not seem to be regarded as an attractive location for R&D investment by other vehicle manufacturers. 17. The UK cost equation and decline in supply base presents significant challenges to investment, particularly given the fierce global competition for R&D resources and the growth in technical capability of India and China. Government funds to support R&D activity are very limited and FMC submits that a debate is urgently required to address ways in which UK automotive R&D can be stimulated. 18. Enhancing both the status of engineering in the UK and the supply of qualified engineers should form an important part of that debate. 19. UK universities have a proven track record for research but without the UK engineering capacity to commercialise their ideas they will quickly migrate to the more engineering-friendly economies along with the potential job opportunities and the intellectual capital. 20. Engineers themselves are often a source of innovation, for example through innovative design applications, use of materials and manufacturing processes. Innovation is not exclusive to either engineers or the research community. If the UK's innovation drive is to make a meaningful contribution to the economy then it requires both. 21. FMC welcomes statements in the Chancellor's Budget on the importance of research and development to the UK economy, including the recent £20 million announcement to support low carbon vehicle development through the Innovation Platform. We also welcome the recently announced £20 million Low Carbon Public Procurement Programme which will assist the acceleration of "near-to-market" low carbon vehicles.

The state of the engineering skills base in the UK, including the supply of engineers and issues of diversity (for example, gender and age profile)

22. The UK's inability to supply sufficient numbers of sufficiently qualified engineers is a limitation on our R&D activities. 23. Engineering, like manufacturing, can only survive in the UK if it is high value-add. The skills required for modern automotive engineering are broader than in the past, now covering areas such as electronics engineering and systems integration. In fact, FMC now requires many of its engineers to undertake second degrees and even PhDs to achieve the necessary level of capability. Powertrain engineering functions require a new, cross-discipline approach which is not normally offered by Universities. 24. The pool of available home-grown engineering talent is insufficient to sustain the needs of engineering manufacturers like FMC. In a recent Ford recruitment exercise for 112 engineering positions some 80% of the successful candidates had UK backgrounds. Increasingly, we are finding that engineers are being recruited from outside the UK and it is understood that the UK's automotive supply chain is in a similar situation. 25. Careers in automotive engineering, and perhaps in engineering more generally, have traditionally tended to be most attractive to males. FMC recognises the importance of a more diverse and representative employee base and we have worked hard to encourage females to choose an engineering career through 428

programmes such as the Ford WISE (Women In Science and Engineering) initiative which rewards promising engineering undergraduates. We believe that recruiting a diverse range of candidates to work in engineering helps our understanding of the diverse needs of our customer base. 26. In trying to recruit female candidates with engineering degrees we are working from a limited pool, as the numbers of women undertaking engineering degrees is small. Even where women have undertaken a relevant engineering degree, they will often either take up a non-engineering role, or work in non-automotive engineering. In a recent recruitment programme for 70 engineering positions at Jaguar and Land Rover only 7% of the 600+ applicants were female. As a leading automotive company it is in our interests to attract females to the technical aspects of our business. FMC would welcome further Government action to reverse the traditional dominance of males in engineering.

The roles of industry, universities, professional bodies, Government, unions and others in promoting engineering skills and the formation and development of careers in engineering

27. The effectiveness of engineering training in the UK is limited by the complexity of the "training bureaucracy" and by inflexibility in training delivery mechanisms and funding requirements. 28. For example, the Government skills agenda is currently heavily focused on attainment of NVQ Level 2. While this is most welcome, and FMC is a beneficiary of this approach, there needs to be greater balance and more attention should be given to support for engineering degrees. 29. The eligibility requirements set out by the funding agencies are often very inflexible, which can create internal business issues. Examples include the funding of business-relevant NVQ2 qualifications for employees with an existing but outdated NVQ2 or an NVQ2 in an unrelated area, or the ability to fund literacy or numeracy diplomas should these requirements be identified through the NVQ2 learning process. With the increasing pace of technology, this approach needs to be reviewed. 30. At university level there are flexibility issues, such as a reluctance at times to offer foundation degrees or even to provide degrees to individuals who do not meet the normal intake requirements. 31. In addition, incentives for students to take on challenging engineering courses are currently insufficient. The last decade has seen the loss of engineering sponsorships at the same time as student fees and costs have risen dramatically. Government funding to companies to provide such sponsorships, in the same way that support is provided for apprenticeships, would be welcomed by industry. Consideration might also be given to offsetting all tuition fees for Institution approved engineering courses. 32. FMC further submits that part of the solution lies in a greater focus on engineering and STEM subjects at school. Engineering as a subject area does not seem to enter the curriculum at all until secondary school. We believe that it would be beneficial to try to engage with young people earlier in their learning, say at Key Stage 2 (ages 7-11 yrs).

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33. In addition, teachers often lack support to promote engineering as a subject. The education syllabus is under pressure from all sides and engineering is both time consuming and perceived as "difficult" with its proximity to the STEM subjects. 34. We are also concerned that performance targets may be forcing schools away from STEM subjects towards those subjects in which pupils are more likely to achieve better results. Over many years Ford has developed relationships with primary and secondary school teachers, exposing them to real engineering environments and modern practices and their pupils to the world of technical careers. 35. High quality recruits for our engineering apprenticeship schemes are more difficult to find as more young people tend towards an academic rather than vocational route. Where vocational engineering subjects are taught, facilities and syllabus are often out of pace with current technology which results in the need for students need to be re-taught skills on entering the workforce. Teachers and Lecturers should be provided with much more professional development within industry. 36. FMC supports the Engineering Diploma and is assisting schools in Barking and Dagenham and Solihull with the pilot. We very much hope that the diploma attracts a broad range of capable and interested students. FMC was one of the founding signatories to the Government's Skills Pledge in June 2007 and we offer a programme of continued learning for our employees. 37. FMC is proud to support CEME (the Centre of Excellence for Manufacturing and Engineering) in partnership with the London Development Agency, the Learning and Skills Council and Thames Gateway and Havering Colleges. CEME is an innovative urban regeneration project that supports the development of individuals and organisations – with a specific focus on the Engineering, Manufacturing and Technology sector. Operating for the public and region’s benefit with the aim of creating an advanced industrial zone in East London, the CEME campus offers a range of education and training to local students and businesses, working actively with local schools to bring pupils into a working technology environment and to open up the exciting employment opportunities that exist in the technology sector, working to develop the skills of unemployed people interested in finding employment in the technology sector, and offering an enormous range of onsite training, education and skills provision covering basic learning and skills through to foundation degree level education. 38. FMC has historically been a strong supporter of the Automotive Academy and is pleased to see it form the blueprint for the National Skills Academy for Manufacturing. NSAM aligns with FMC's philosophy of employer-led training and skills delivery and Ford hosts the NSAM London spoke at the Centre for Engineering and Manufacturing Excellence in Dagenham. FMC is also represented on the Board of SEMTA, the host sector skills council for NSAM. FMC will look to the recently formed Commission for Employment and Skills to provide strong and effective leadership in this area and would want to assist in any way it could. 39. More attention also needs to be given to the promotion of engineering as a career. FMC believes that teachers and careers officers would benefit from closer relationships with engineering companies. High quality work experience and work placement schemes, such as those that FMC offer, also help to give students a realistic view of engineering and the working environment. 40. Motorsport in all its forms, from F1 to World Rally Car and lower series is still a strong motivator for automotive engineers. Government support for this sector is vital. Technologies such as lightweight materials, hybrid energy capture systems and process innovations in CAE flow directly from motorsport in to the mass

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market. The UK has a unique world lead in this area which must be protected and nurtured. Formula Student is now a very significant student engineering event with hundreds of teams from all over Europe coming to Britain to take part.

March 2008

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Memorandum 67

Submission from NEPIC

1.0 Executive Summary

1.1 The NorthEast Process Industry Cluster (NEPIC) has, over several years, been actively seeking the views of those parties involved in the Process Industry of the region, including those in the engineering supply chain, regarding the current and anticipated skills position affecting their interests. This information has been used to provide a breakdown of the engineering needs associated with the sector in this region and these are broken down in the body of the response. 1.2 NEPIC has around 350 member companies and has conducted skills surveys within this membership in recent years. Additional knowledge has been based on an understanding of other sectors in the region. This has indicated that there is a need for around 3,100 graduates and 3,750 vocational level candidates to enter the engineering industries by 2018. 1.3 NEPIC is creatively seeking ways in which to add to the available pool of labour available to industry, and in particular the Process Industries. This seeks to address the issue at several levels, beginning with engagement with young people of primary school age and continuing throughout education to graduate attraction. 1.4 It is clear that there is a need for other schemes to attract young people into engineering, both through vocational and graduate routes, but also to attract other groups, including those in employment but seeking to transform their career, to be able to change direction and retrain in engineering disciplines if we are to be able to meet the anticipated demand for skilled people in the future.

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2.0 Introduction

2.1 We would like to thank you for providing us with the opportunity to provide information on the situation within the Northeast of England with regard to engineering skills, and in particular that affecting the Process Industries of the region. The response detailed below relates to both the state of graduate and vocational level engineering personnel and includes an estimate of the requirements for these people for the period up to 2018. 2.2 The Northeast Process Industry Cluster (NEPIC) was formed three years ago from a merger between the Teesside Chemicals Initiative and the Pharmaceutical and Speciality Cluster that were in operation in the region. The main remit of NEPIC is to ensure that the cluster of Process Industry (PI) companies, and their associated supply chain, in the region can develop and thrive by the development of a strong cluster working in collaboration to resolve issues and so ensure the sustainability of the manufacturing base. 2.3 Within the region the PI sector accounts for around 25% of the regional GDP, employing around 40,000 directly and 400,000 indirectly. It is estimated that there are around 520 companies in the region that are involved in the cluster, out of which NEPIC has around 350 member companies. 2.4 The information contained within this submission is based on a detailed knowledge of the Process Industries, gathered from many years experience of working in this field, and some detailed skills surveys, as well as an understanding of other sectors based on a good understanding of other industrial sectors in the region.

3.0 Process Industry – Manufacturing Base

3.1 The process industry in the Northeast of England is currently undergoing a period of significant capital investment, with around £5bn currently being invested and a similar amount planned for the future. The anticipated additional engineering intake as a result of these activities is set out below:

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Chemical Engineers - New Graduates 140 per year - Mature Graduates 30 per year

Mechanical/ Control/ Electrical Engineers - New Graduates 110 per year - Mature graduates 30 per year Total Graduate intake 310 per year

Vocational Engineering Apprentices 200 per year Vocational Engineering Mature Tradesmen 175 per year Total Vocational Intake 375 per year

3.2 This equates to a requirement for the period 2008 to 2018 of around 3,100 new engineering graduates to enter the industry and around 3,750 new vocational level entrants to the industry.

4.0 Non-Process Industry – Manufacturing

4.1 The level of change and development within other industries in the Northeast of England is also leading to a rise in demand for engineering staff. The other industries that we have considered include, but are not limited to, Iron and Steelmaking, Shipbuilding/ Offshore Capital Construction, Power Generation/ Utilities, Food Processing, Engineering Manufacture/ Fabrication and Automotive. 4.2 We have assumed that the combined size of these industries in terms of employment, GDP etc is approximately 1.5 times that of the Process Industries and that the requirement for Chemical Engineers in this field is around 15% of that in the Process Industries. This results in the following anticipated demand:

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Chemical Engineers - New Graduates 23 per year - Mature Graduates 7 per year

Mechanical/ Control/ Electrical Engineers - New Graduates 300 per year - Mature graduates 135 per year Total Graduate intake 465 per year

Vocational Engineering Apprentices 300 per year Vocational Engineering Mature Tradesmen 260 per year Total Vocational Intake 560 per year

4.3 Because of the spread of the projects currently identified within the region, we would expect the demand for these employees to be at different levels during the period under consideration, and the anticipated total engineering graduate and vocational level needs are thought likely to fall by around 50% for the period 2013-18. Clearly this is based on the level of understanding at the time of writing, but this may change as new projects are developed. The anticipate demand, taking this into account, is set out below:

2008-2012 Total Engineering Graduate Demand 2,325 2013-2018 Total Engineering Graduate Demand 1,150 Total Graduate requirement 2008 – 2018 3,475

2008-2012 Total Vocational Engineering Resource Requirement 2,800 2013-2018 Total Vocational Engineering Resource Requirement 1,400 Total vocational requirement 2008 – 2018 4,200

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5.0 Northeast Industry Engineering Supply Chain Requirements

5.1 This section includes requirements for Project Management, Project Construction, Contracted Plant Maintenance, Logistics and Engineering Machining. The estimated requirements are based on the following key parameters:

5.1.1 Process Industry • £7bn Capital expenditure over 10 years • £2bn/annum maintenance costs, including overheads, and minor capital works • £800m/annum revenue projects

5.1.2 Non-Process Industry • £4bn Capital expenditure over 10 years • £2bn/annum maintenance costs, including overheads, and minor capital works • Potential for reducing the scale of the regional non-Process Industry Manufacturing Group from 2013 onwards.

5.2 This gives an anticipated demand for these groups as follows:

Chemical Engineers - New Graduates 150 per year - Mature Graduates 100 per year Mechanical/ Control/ Electrical Engineers - New Graduates 200 per year - Mature graduates 100 per year Total Graduate intake 550per year

Vocational Engineering Apprentices 600 per year Vocational Engineering Mature Tradesmen 200 per year Total Vocational Intake 800per year

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5.3 This gives a total Graduate engineering requirement of around 5,500 over the period 2008-18 and a total Vocational engineering requirement of around 8,000 for the Engineering Supply Chain.

6.0 NEPIC’s Current Work

6.1 As a result of our analysis of the ongoing requirements, based on many years of experience within the region and a detailed industry led analysis of the skills needs for the next ten years, NEPIC has instigated several projects aimed at addressing some of these anticipated requirements. NEPIC will also be developing, alongside the new National Skills Academy for the Process Industries (NSAPI) other ways of attracting and training engineering personnel into the region’s industrial base. The main projects in operation are set out below:

6.1.1 Graduate Attraction o NEPIC is attending an increasing amount of Graduate Recruitment Fairs around the UK, to improve knowledge and understanding of the opportunities available to new graduates. During 2007 there was a NEPIC presence at eight such fairs; o NEPIC is working with University Careers Advisory Services to improve the awareness of Advisors about the status of the Process Industries and the opportunities that this presents; o NEPIC has produced a Graduate Recruitment DVD promoting the region as well as the manufacturing companies of the region to potential new entrants from university. This can be viewed online at www.nepic.co.uk.

6.1.2 Apprenticeships o NEPIC is supporting several programmes aimed at improving the attractiveness and uptake of apprenticeship programmes across the region; o NEPIC has produced an information DVD for schools promoting the vocational access route to industry, including highlighting this as an 437

alternative route to study for a degree. This can be viewed online at www.nepic.co.uk.

6.1.3 Retraining of other skilled people • NEPIC is developing retraining programmes aimed at several groups of potential employees that are currently not suitable for entry to the Process and associate industries. These include o Armed Forces personnel who require some reskilling to be able to work in the industries; o Long term unemployed who require both vocational training and workskills training before being in a position to enter the pool of available workers; o Ex-offenders who similarly require both vocational and workskills training, but who may also provide difficulties due to other restrictions that are placed on them.

6.1.4 Engagement with Young People • NEPIC is a supporter of Children Challenging Industry in the region, encouraging young people to study STEM subject and potentially entering the available workpool when they leave school o NEPIC operates the SETPOINT contract for Northumberland, providing STEM advice and support to schools and educationalists in the region. This also involves the coordination of the Science & Engineering Ambassadors scheme for the county, which provides Ambassadors who work within the STEM subject areas to help enthuse and encourage children in the STEM arena. o Two Science Education Units that operate within NEPIC’s geographical area provide further opportunities for trained educationalists to provide schoolteachers and students with an opportunity to see the positive benefits of science and encourage the uptake of these subjects by children.

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6.2 NEPIC aims, by the continued development of this multi-faceted approach, to close some of the gap in skills that have been identified. It is not possible, however, for one organisation to do this alone and other programmes are needed if we are to fill the gap between the current and future positions.

6.3 It is important that any programmes that are developed utilise the expertise contained within industry, and that funding is made available in such a way that the available pool of workers can be enriched without undue burden on employers, but that those with transferable skills can be brought to an acceptable standard for entry to the workplace and can be developed further in future years.

6.4 NEPIC would welcome the opportunity to be involved in the development of such programmes and to work with Government, RDAs and other bodies to find ways of closing the gap in skills that exists at this time.

March 2008

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Memorandum 68

Submission from Warwick S Faville

The following point 1 has questions asked of Lord Broers in the internet interactive after his final Reith lecture in 2006. The questions were only partially asked and I believe they are now more relevant.

1. “Manufacturing in the UK is having its problems note Rover and Marconi. I would suggest that a problem is weak engineering management in the UK. Is one of the route causes elitism in the professional engineering institutions? A four year degree may be fine to train a technologist but three years is enough for a manager who will be a project manager. Four years will put many off entering the profession.” “And as a corollary why do we need forty plus engineering institutions?”

2. Two years ago going to university was less expensive than it is today. It is now recognised that the expense of university is such that it is attracting the young of middle income rather than lower income families. The fourth university year required by the engineering institutions and others for the top level qualification may already be making engineering less attractive to the young of lower income families. There are three year engineering degrees on offer but not at the top institutions. Surely this is unhealthy for engineering.

3. Engineering has insufficient public image. I would contend that this is in part due to the proliferation of institutions. The ECUK (can we please call it Engineering Council and add UK just where needed) has 36 Licensed Members and 14 Professional Affiliates . Then there is the Royal Academy of Engineering. Look at other professions where there are less i.e. accounting, medicine and architecture and where there are prominent ones i.e. ICAEW, BMA and RIBA. There are many ways of classifying engineering. But perhaps the most sensible is to split it into Build Environment, Manufacture and Process. Surely the engineering institutions should be encouraged to merge under these or similar headings so that there are less institutions and fewer and clearer foci for the profession. Hence the proposal for merger between the Civil’s and Mechanical’s was a misplaced idea. The combination of the Mechanical’s and the Electrical’s would have been a sound development. An automatic knighthood for the presidents of the two lead institutions would bring focus and would encourage wider participation in professional affairs.

4. To explain myself - I am a mechanical engineer who originally trained with a scholarship from Rolls Royce Derby to attend Imperial College. I then worked with W S Atkins & Partners in most areas of engineering including nuclear and renewables. Now nearly retired, I have been freelance for a number of years. I have been retained by a number of companies. I have been active with the Institution of Mechanical Engineers committees (technical not social). As design and product integrity have been main themes of my career, I have also been active with the Chartered Quality Institute (formerly the

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Institute of Quality Assurance). I believe I made a significant contribution in piloting an experiential route to full membership.

February 2008

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