Presentation by Dr. Ian Jones, CEO, Innopharma Labs to the Oireachtas Joint Committee on Jobs, Enterprise and Innovation - Tuesday 3rd November 2015 Introduction to Innopharma Labs Innopharma Labs is an award-winning Irish technology and training company. We operate an R&D budget of over €8 million in collaboration with multiple international academic institutions and industries, and sell these process analytical technologies globally to the pharmaceutical, food and fine chemical sectors. We are also one of the country’s leading providers of innovative training programmes in the pharmaceutical, food technology and medical devices industries. We employ 27 full time staff and over 40 associate lecturers and industry professionals all over Ireland. Our courses run nationwide in Dublin, Cork, Galway, Limerick, Athlone and along the east coast. Through the Springboard and Momentum initiatives, over 2,000 people have completed our upskilling and training programmes since 2010 which have focussed on providing in-demand industry skills. Over 70% of participants have returned to employment within six months of completion of their programme, proving that Innopharma Labs’ specifically recruited team and jobscentric approach succeeds. What is the opportunity for Ireland? The economy is recovering with the private sector creating jobs. However a gap has emerged in providing necessary qualified personnel in Ireland’s Science, Technology and Engineering sectors, particularly the burgeoning pharmaceutical, food technology and medical devices industries. The positions are, and will be, available but major companies in Ireland struggle to fill these with Irish graduates and Irish workers at present. Attracting appropriately skilled labour internationally, if available, can be expensive and prohibitive based on recruitment, relocation costs and the global shortage of such STEM skill sets. It is also leading to the outsourcing of significant activities to other countries such as Engineering Facility Design and Management of Facility Start up activities, in addition to commissioning, qualification and validation services. This skills deficit is a risk to the accelerated growth currently experienced by these industries and will have an impact on future FDI decisions in the Life Science Sector. There is also a consensus that Ireland needs to increase its output of STEM graduates over the next five years (Further Education and Training Strategy 2014-2019; SOLAS, 2014) and anchor our current graduates in Ireland in order to meet the needs of technology and science driven companies. In addition, there is a desire to introduce an early warning system that would highlight ‘at risk’ jobs in the recovering economy and to react accordingly with, for example, cross-skilling initiatives. There is a requirement to implement a nationwide approach to ensure there is a nationwide economic recovery. What is the solution? Innopharma Labs proposes the expansion of an agile third-level education fund rapidly reacting to industry skills needs and upskilling for the unemployed and ‘at-risk’ employed in Ireland through evaluating learning outcomes to meet current and future industry needs. These projects should focus on: o o o o o o enabling the long term unemployed, particularly those under-25, and recently unemployed, to return to work through up-skilling. enabling those in ‘at-risk’ sectors to cross-skill to more stable and value-adding sectors. Increasing the number of STEM based graduates (and help meet national STEM targets) through cross-skilling these ‘at-risk’ participants with STEM skills. enabling emmigrants to return to Ireland through providing up-skilling/bridging services. providing a rich supply of skill sets and human capital necessary to maintain the up-turn in high-tech manufacturing in Ireland over the next 5 years and beyond. reacting to specific industry skill set needs in a rapid and flexible manner. Some components of this agile and nationwide third level up-skilling are currently funded through the Springboard and other similar up-skilling initiatives. This could potentially continue to be the vehicle for funding such initiatives – with an expansion of its responsibilities. Regional jobs Crucially, the jobs secured by Innopharma Labs trainees are located throughout Ireland, supporting balanced regional development: In the last year alone over 600 people trained by Innopharma Labs found jobs in high-end manufacturing that otherwise would have remained unemployed These 600 jobs are not just based in Dublin but nationwide: Galway: 80 jobs Limerick/Mid-west: 32 jobs East Coast (including Dublin): 380 Cork 33 jobs Westmeath/Roscommon 25 jobs Other regions: 50 Many of these 600 jobs went to job seekers who were long-term unemployed. Many of these 600 jobs would not have been filled through other approaches as they were attained through networking events and support from the Innopharma Labs industry liaison team. Exchequer savings In terms of savings to the Exchequer: assuming an annual student up-skilling number of 10,000 participants, an average saving to the exchequer per unemployed participant of €15,000 and an average starting salary of €30,000, there will be a direct net saving to the Exchequer of €120 million over five years in reduced social welfare payment, increased PAYE payments (depending on the ratio of long term unemployed, recently unemployed and ‘at-risk’ employed) and continued industry investment in Ireland. Responding to industry’s needs With student coaches supporting the participants, industry experts delivering the training and industry liaison specialists engaging with companies on a daily basis, we have developed a tailormade team for successful up-skilling. Innopharma Labs’ training programmes are designed in conjunction with industry (such as United Drug, GlaxoSmithKline, BMS, Nypro, Becton Dickinson, Lake Region Medical, Mondelez and Dairy Gold) as well as representative bodies like PharmaChemical Ireland - Ibec. This means that the programmes meet the needs of industry. This is one of the reasons behind the huge success rate for graduates in finding employment. In fact, with 70% of graduates finding employment within 6 months of programme completion, Innopharma Labs is not only delivering for industry but helping create jobs, particularly for those in long term unemployment. For example in Limerick a recent up-skilling programme with a focus on long-term unemployment has realised a ‘back-to-work’ result of over 70%, with graduates who were previously unemployed between 18 months and 6 years (some since the Dell closures in 2009) are now working in high value roles within the local MedTech sector, in companies like Teleflex Medical, Vistakon, Beckman Coulter and Reagecon. The programmes range from Level 6 (Certificate) all the way up to Level 9 (Masters Level) and are accredited in partnership with ITT, Dublin and Griffith College. From the initial programme design, student recruitment, intensive training all the way up to taking up employment, the programmes are designed to support ‘job readiness’. Work preparation, student coaching and industry engagement are integral components of the programmes. ENDS Comments of Dr. Ian Jones, CEO, Innopharma Labs to the Joint Oireachtas Committee on Jobs, Enterprise and Innovation. <>