Labour Market Intelligence
Research into the Advanced
Materials and Manufacturing
Sector in Wales
Paul A. Morgan
Sam White
Skills Summit Presentation: An overview of
key findings
November 2014
Presentation Structure
• Key Questions: for discussion
• About the Research
• Key Findings
– Profile of AM&M Sector
– Forecast skills needs
– Provider Capacity & Capability
• Discussion
Key Questions
• Can the current training infrastructure in Wales meet the
demand for skills in AM&M up to 2022?
• How many people will need to be trained between now
and 2022?
• How can we meet the challenges and barriers to upskilling the Welsh AM&M workforce?
Section 1
About the Research
About the Research
• A skills research study in the Advanced Manufacturing
sector in Wales
• Specifically, to determine the following:
– Emerging technologies & skills related requirements
– Provider capability & capacity
– Issues & barriers faced by employers & training
providers
Sector Definition
•
•
•
•
aerospace,
automotive,
electrical,
electronics,
•
•
•
•
maintenance,
marine,
mechanical,
metals and engineered metal
products.
Approach
• Desk-based research – a review of existing information
and analysis of secondary data
• Stakeholder Engagement – interviews with key
stakeholders
• Industry Engagement – an online survey of employers,
interviews with training providers, case studies with
businesses
• Analysis – national datasets & survey data
Section 2
Key Findings
Profile of the AM&M Sector
A high value added sector: the AM&M sector in Wales employs 6%
of all Welsh labour yet contributes 17% of all turnover in Wales.
A high growth sector: 19% growth in AM&M turnover between 2008
and 2011 (16% for all of manufacturing)
Employment
81,381
AM&M
Health
Retail
Manufacturing
Education
Accommodation & food services
Public administration & defence
Business administration & support services
Agriculture, forestry & fishing
Construction
Arts, entertainment, recreation & other services
Professional, scientific & technical
Transport & storage
Wholesale
Financial & insurance
Motor trades
Information & communication
Mining, quarrying & utilities
Property
-
Source : BRES 2012
50,000
100,000
150,000
200,000
250,000
Employment by Regions
AM&M
West Midlands
East Midlands
East
North East
South West
Yorkshire and The Humber
Wales
South East
Scotland
North West
London
GB
199,500
138,200
176,600
67,800
154,800
143,900
81,400
226,100
136,300
172,900
103,000
1,600,500
Proportion of
AM&M
Regional Employment in the
Economy
Region
2,416,000
1,969,000
2,527,000
1,032,000
2,375,000
2,243,000
1,269,000
3,920,000
2,426,000
3,102,000
4,593,000
27,872,000
8.3%
7.0%
7.0%
6.6%
6.5%
6.4%
6.4%
5.8%
5.6%
5.6%
2.2%
5.7%
Businesses
Other Engineering Activities
Metals
Mechanical
Electronics
Electrical
Aerospace
Automotive
R&D
Marine
Wales
Other Transport
UK
Rubber Tyres
0%
Source: IDBR 2013
10%
20%
30%
40%
50%
60%
Turnover
AM&M
Electronics
Other Transport
Aerospace
Marine
Rubber Tyres
Mechanical
Automotive
R&D
Electrical
Metals
Other Engineering Activities
-20% 0%
Source: Annual Business Survey 2008-2011
20% 40% 60% 80%
Regional Comparisons
Rubber Tyres
Metals
Electronics
3 Stars
West Midlands
South West
Yorkshire and The
Humber
West Midlands
South East
South West
Marine
Aerospace
Other Transport
Other Engineering
Activities
R&D
1 Star
West Midlands
South East
East
West Midlands
South West
Scotland
South West
East Midlands
West Midlands
London
West Midlands
North West
North East
Yorkshire and The
Humber
North East
North East
North West
Wales
South East
Scotland
South East
East
London
Electrical
Mechanical
Automotive
2 Stars
Aerospace Clusters – European Union
Forecast Skills Needs
• Skills Gaps and Shortages
• Emerging Technologies
• Demand levels
Skills Gaps & Shortages
Professional Engineers, Scientists and Technologists
Skilled trades occupations/Craft
Technicians / Technical occupations
Managers and Senior Staff
Process, plant and machine operatives
Administrative and secretarial Occupations
Elementary occupations/Labourers
0.0
1.0
2.0
3.0
4.0
5.0
Gaps
Source: Miller Research (UK) Ltd.
Bases: Gaps = 71, Shortages = 68
Shortages
Skills Gaps & Shortages
Professional Engineers, Scientists and
Technologists
26%
Technicians / Technical occupations
26%
20%
Skilled trades occupations/Craft
Managers and Senior Staff
8%
Process, plant and machine operatives
8%
Source: Miller Research (UK) Ltd.
Bases: Gaps = 71, Shortages = 68
31%
12%
7%
4%
6%
Elementary occupations/Labourers
Shortages
34%
11%
Administrative and secretarial
Occupations
Gaps
39%
6%
0%
10% 20% 30% 40% 50%
Aerospace
Advanced Materials Engineering
Advanced Materials Selection and Processing
Computer Aided Design(CAD)
Aircraft Engineering
Maintenance, repair and overhaul (MRO)
Manufacturing Engineering
New Product Development (NPD)
Technology Management
Quality control skills
Quality control
Mathematical modelling and simulation
Computer Aided Engineering (CAE)
CNC Machine Operations and Programming
Stress Engineering
1
2
3
4
Automotive
New Product Development and Implementation
New Product Development (NPD)
Diagnostic and Prognostic Skills
Quality control skills
Control systems
Computer Aided Design(CAD)
Computer Aided Engineering (CAE)
Manufacturing Engineering
Advanced Materials Engineering
Materials science – thin films and coatings
Maintenance, repair and overhaul (MRO)
Prototype development
High tech marketing
1
2
3
4
Electronic
Circuit design
Control systems
Quality control
Advanced Materials Engineering
Technology Management
Systems design and engineering skills
Manufacturing Engineering
Diagnostic and Prognostic Skills
Assembly line or production robotics
Advanced Materials Selection and Processing
Computer Aided Design(CAD)
Electronic engineering, optics and nanotechnology
Materials science – thin films and coatings
New Product Development and Implementation…
1
2
3
4
Other Engineering
Materials science – thin films and coatings
Chemistry
Materials scientists
CNC Machine Operations
Prototype development
Concessions Design / Check
Advanced Materials Engineering
Diagnostic and Prognostic Skills
Computer Aided Engineering (CAE)
Computer Aided Design(CAD)
Cost modelling
New Product Development and Implementation…
Manufacturing Engineering
1
2
3
4
Emerging Technologies
•
•
•
•
•
•
•
Composite Design Manufacture & Repair
The use of robotics in system integration
New aircraft designs / types
The use of new materials
3D printing
Powder metal manufacturing
Remote operations
Change Drivers
Competitiveness
New Technologies
New Products
New Markets
Globalisation
Legislation & Regulation
Employee Age Profile
Environmental Drivers
Mergers and Acquisitions
0
1
Source: Miller Research (UK) Ltd.
Base:54
2
3
4
5
Forecast Employment in 2022
6%
Managers
8%
19%
Professionals
22%
15%
Associate Professional/ Technician
17%
Admin & Secretarial
9%
10%
25%
Skilled Trades/ Craft
1%
Other Service Occupations
2%
2%
Sales & Customer Service
2%
17%
Operatives
15%
5%
Elementary Occupations
5%
0%
1
2
2012
2022
23%
3
5%
4
10%
5
15%
20%
25%
6
7
8
30%
9
Total
Employment
2012
4,880
15,470
12,210
8,140
20,350
810
1,630
13,840
4,070
81,400
Forecast
Employment
2022
5,740
16,450
12,620
6,500
17,210
1,150
1,530
11,480
3,830
76,510
Source: LFS 2012
Net Employment Demand
Managers
Professionals
Associate Professional/ Technician
Admin & Secretarial
Skilled Trades/ Craft
Other Service Occupations
Sales & Customer Service
Operatives
Elementary Occupations
-3,000
-2,000
-1,000 0 1,0002,0003,0004,0005,000
Expansion demand
Replacement demand
Net Increase: 12,480 between 2015 and 2022 (1,560 p/a)
Net requirement
Forecast Skills Needs: 2022
Skills Gap (critical)
Skills Gap (Any)
Total Per Annum
Total Per Annum
Skills Shortage
3,628
34,939
450
4,370
29,023
107,147
3,630
13,390
152
1,835
Per
Annum
20
230
Associate Professional/
Technician
27,048
3,380
81,145
10,140
985
120
Admin & Secretarial
4,019
30,741
500
3,840
25,116
126,039
3,140
15,750
14
514
<1
60
8,173
1,835
1,020
230
61,299
10,093
7,660
1,260
-
-
13,800 439,863
54,980
3,500
440
Occupation
Managers
Professionals
Skilled Trades/ Craft
Operatives
Elementary Occupations
All Occupations (Total) 110,384
Source: Miller Research (UK) Ltd.
Total
Provider Capacity and Capability
LLWR Student Numbers by Broad Subject Area (Qualification Aims
selected for relevance to AM&M)
Level
Sector Subject Areas
Entry
Level /
unknown
Engineering
Engineering and Manufacturing
Technology
Manufacturing Technologies
195
Level 1
Level 2
Level 3
Level 4/5
Total
2,510
8,385
6440
145
17,480
20
15
275
4,575
35
440
5
5,490
Section 3
Discussion
Discussion
• Can the current training infrastructure in Wales meet the
demand for skills in AM&M up to 2022?
• How many people will need to be trained between now
and 2022?
• How can we meet the challenges and barriers to upskilling the Welsh AM&M workforce?
Paul A. Morgan
pmorgan@semta.org.uk
0787 2376221
Sam White
sam@miller-research.co.uk
Bill Peaper
bpeaper@industrywales.com
customerservices@semta.org.uk
0845 643 9001
www.semta.org.uk
T: 0845 643 9001 E: customerservice@semta.co.uk
W: www.semta.org.uk