Aerospace Training South West
On behalf of:
South West Regional Development Agency
by
STEP AHEAD RESEARCH Ltd
February 2006
Aerospace Training South West
Prepared for:
South West Regional Development Agency
By:
Dr. David Dundon-Smith
Heather Bentley
The views expressed in this report are the views of the authors and do not necessarily reflect those of
South West Regional Development Agency.
For further information contact:
Step Ahead Research Ltd
790 Innovation Buildings
Sittingbourne Research Centre
Sittingbourne
Kent ME9 8HL
Tel: 01795 438827
Fax: 01795 431487
www.stepaheadresearch.co.uk
Aerospace Training South West
Table of Contents
Executive Summary
1.0 Introduction
i
1
1.1 Aims and objectives of the study
1
1.2 Report outline
2
1.3 Policy context
2
1.3.1 National context
3
1.3.2 Regional policy
8
2.0 Aerospace Skills Needs in the South West: an overview
10
2.1 The aerospace sector in the South West
10
2.2 Current skills profile of the aerospace sector
11
2.3 Skills shortages and gaps
12
2.4 Employer training
13
2.5 Industry trends
14
3.0 Industry Leaders: views and attitudes
20
3.1 Skills needs
20
3.2 Response to skills needs
23
3.3 Request for public sector support
25
3.4 Attitudes towards collaboration
27
4.0 Aerospace Training in the South West
29
4.1 Overview of FE and WBL in the South West
29
4.2 The providers perspective
31
4.2.1 Training for new entrants
32
4.2.2 Training for the established workforce
36
4.3 Future development
38
4.4 Barriers and issues
39
5.0 Conclusions and Next Steps
43
5.1 The case for public intervention
43
5.2 Fostering collaboration
45
5.3 New approaches
46
5.4 Next steps
47
Annexe 1 Research Method
Step Ahead Research
Aerospace Training South West
Table of Figures
1.0 Introduction
Figure 1.1: National and regional policy context
3
Figure 1.2: SEMTA SSA – vision and potential barriers
4
Figure 1.3: WEAF Skills Programme – aims and strategies
9
2.0 Aerospace Skills Needs in the South West: an overview
Figure 2.1: Major aerospace players in the South West
10
Figure 2.2: Aerospace employers in the South West by sub-region
11
Figure 2.3: Aerospace establishments in the South West by sub-region
11
Figure 2.4: UK aerospace employment (2004)
12
Figure 2.5: Highest qualification held: aerospace and all engineering
12
(2003/04)
Figure 2.6: Key skills requirements in the aerospace sector
13
Figure 2.7: Trends in the number of establishments – 1998 – 2004
17
Figure 2.8: Employment by occupation – UK 2003 and 2010
18
4.0 Aerospace Training in the South West
Figure 4.1: Aerospace in FE and WBL provision in the South West (2003/04)
29
Figure 4.2: Achievements in selected subject areas – South West 2003-04
30
Figure 4.3: Qualifications achieved by level – South West 2003-04
30
Figure 4.4; Courses reported by interview respondents
32
Step Ahead Research
Aerospace Training South West
Aerospace Training South West - Executive Summary
Conclusions
The case for public intervention

It is difficult to set out a clear case for an overall increase in aerospace training provision in the South West,
taking into account the range of provision currently available or proposed and the volatility of employer demand
for skills.

However, there is a case for increased public sector intervention, given that aerospace is a priority sector for the
region and that there are issues on which support is needed; for example, attracting new entrants to the sector.

In order to establish what form this intervention should take, there needs to be an overall Vision for aerospace,
bringing together details of how proposed employer and provider training facilities would serve the needs of the
sector as a whole.
Fostering collaboration

Employers generally expressed strong support for increased collaboration on training and understood the need to
ensure that proposed in-house training centres were open to the industry as a whole.

However, there are limited examples of previous collaboration by employers in this area. Aerospace employers
are more likely to collaborate on R&D programmes and this suggests that a ‘catalyst’, such as the funding
available for collaborative R&D, could help to foster collaboration on skills and training.
New approaches

There is a need for an overall Strategy in order to take a regional overview of aerospace skills needs and training
provision and to align this with developments in national skills policy.

Within the strategy, public sector agencies, employers and learners will need to agree who pays for what
learning.

An effective system of skills brokerage could help aerospace companies to identify skills needs and appropriate
training solutions and help smaller companies in the supply chain to benefit from examples of good practice.
Next Steps

A strong Vision for aerospace, delivered through an employer-led Strategy and Action Plan, is needed if the
sector is to face up to increased international competition.

However, employers welcome the idea of having an individual or organisation with responsibility to lead on the
Strategy and drive forward collaboration, fearing that attempts to address skills needs could falter without this.
1.0 Introduction

Four large aerospace companies, Airbus (UK), Flight Refuelling, Rolls Royce and Smiths
Aerospace, have separately approached the South West Regional Development Agency
(SWRDA) to discuss their skills needs and initial proposals for in-house training centres.

It was believed that these companies might be willing to consider innovative approaches
to workforce development in the sector, collaborating with each other and with
established education and training providers.

This study:
- explored the skills and training needs of these companies, through site visits and
interviews with a number of senior staff;
- built up a broad picture of current and planned aerospace provision and investigated
providers’ experiences of engaging with employers, using telephone interviews with
11 education and training providers;
- placed identified skills and training issues in a wider context through interviews with
stakeholder organisations;
- brought employers and stakeholders together to discuss opportunities for
collaboration and current barriers and gaps.

The study did not intend to map the skills needs of the aerospace sector as a whole but
made reference to the SEMTA Sector Skills Agreement, which was accepted as a
summary of the national baseline position.
Step Ahead Research
i
Aerospace Training South West
2.0 Aerospace Skills Needs in the South West: an overview

The South West has a strong history of aerospace activity and represents a significant
“hub” for aerospace employers and employees. The market served by aerospace
companies in the South West is national or international in nature and South West
aerospace companies are affected by national level trends.

Nationally, a significant proportion of aerospace workers are well qualified but skills
shortages and gaps exist. The sector is affected by a number of trends which will impact
on the skills required by employers.

In general, aerospace employers train more than average, but large employers are more
likely to train than smaller companies.

Some key facts about aerospace in the South West and about skills and training in the
sector nationally are set out in the table below:
The South West aerospace sector – key facts
% of all Great Britain’s aerospace employees located in the South
West
21%
% of all Great Britain’s aerospace establishments located in the South
West
15%
No. of top 12 UK aerospace companies with major facilities in the
region
9
Decline in number of aerospace establishments in the South West
since 1998
14%
Sub-regions with strong concentrations of aerospace employees/
establishments



West of England
Somerset
Bournemouth, Dorset & Poole
Skills in the aerospace sector (national level)
% of workforce in management or professional occupations
27%
% of workers with a Higher Education qualification
34%
% of workers with qualifications at NVQ Level 3 (equivalent to 2 Alevels) or above
43%
Current skills shortages
Current skills gaps






Key sector trends
Forecast % of graduates in the sector by 2010


Professional engineers
Skilled trades workers
Process, plant and machine
operatives
Occur at most skill levels and relate
to both technical and generic skills
Increasing orders and turnover
Increasing levels of international
competition
Supply chain rationalisation
Development of new technologies
and techniques
50%
Training in the aerospace sector (national level)
Average annual spend on training per employee
£380
Average number of days off-the-job training per employee
% of employers with apprentices
3
Large companies:
SMEs:
96%
44%
For sources, see main report.
Step Ahead Research
ii
Aerospace Training South West
3.0 Industry Leaders: views and attitudes
This section is based on information gathered through interviews with a number of senior
managers across the four large aerospace companies.
3.1 Skills needs

An upturn in orders has led to demand for skills “ramping up” to peak levels. Three of the
four aerospace companies that participated in the study are looking to expand their
workforce.

Skills shortages were identified for a number of key technical skills, including stress
engineers and individuals skilled in the use of composite materials.

All four companies are currently reviewing staff retention and development policies.
Young experienced workers were felt to present the greatest “danger” in terms of staff
retention.

Non-technical skills, such as leadership or team working, were often mentioned as areas
where members of the aerospace workforce could improve.

A number of interviewees acknowledged that their companies had not planned for the
growth they were now experiencing and it would seem that the companies have found it
difficult to manage cyclical trends in the sector.
3.2 Response to skills needs

In addition to simply increasing salary levels, the four aerospace companies have also
sought to respond to their skill needs through:
-
“Alternative” methods to try to recruit people with hard to find skills
-
Using training to create the skilled workers they require

“Alternative” recruitment methods include recruiting from abroad, opening offices outside
the South West and sub-contracting or outsourcing non-core activities, either to UK
companies or to overseas.

Although training was seen as a good way to upskill the existing workforce, some
interviewees reported that the training budget could be one of the first things to be cut in
hard times. In addition, Further Education colleges and the LSC were often seen as being
slow to respond or unable to understand employers’ needs.
3.3 Requests for public sector support

The four aerospace companies that approached SWRDA are prepared to contribute
significant resources to address skill needs. However, they felt that greater benefit could
be gained if they were to receive public support in certain areas.

Although planning for these centres is at an early stage, it is possible to identify common
ground among the objectives that the different companies hope to achieve. In addition to
increasing the supply of skilled individuals, these include:
-
Improving the image of the sector
Including changing the perceptions of young people, parents and careers advisors
-
Improving the relationship between industry and education providers
Helping to “bridge the gap” between schools and industry and developing the
relationship that providers have with each other
-
Spreading best practice to the supply chain
Helping suppliers and sub-contractors to up-skill in order to achieve increased quality
and efficiency
Step Ahead Research
iii
Aerospace Training South West
4.0 Aerospace Training in the South West
This section is based on information gathered through interviews with 11 Further Education
Colleges, Universities and private training providers in the South West.
4.1 Overview of Further Education and Work Based Learning in the South West

Individualised Learner Record (ILR) data suggest that significant numbers of students in
the South West are studying qualifications that could be relevant to aerospace employers
(including both aerospace-specific courses and more general courses such as science
and mathematics). However, not all of these students will choose to enter the aerospace
sector and not all those who start a qualification will complete it successfully.
4.2 The Providers’ Perspective

Interviews with education and training providers suggest that current aerospace provision
covers many different aspects of the sector and all skill levels, from introductory courses
to PHD programmes. This includes provision suitable for both full-time students (who may
or may not enter the aerospace sector) and for members of the existing workforce.

There is a strong trend of apprenticeship training in the sector and providers report
working with a number of aerospace employers to deliver training of this kind. Aerospacerelated courses are also available at Foundation Degree level. These are vocational
Higher Education qualifications, which allow learners to combine higher level learning with
work in the sector.

The South West also has a strong base for university-level provision and research. This
includes a programme allowing aerospace employees to study part-time up to PHD level.
However, take-up of this programme has been limited to larger employers.
4.3 Future developments

Many of the providers have plans to expand aerospace provision in future. These
developments need to be considered in parallel with the plans of the large companies.
4.4 Barriers and issues

The providers identified a number of barriers and issues in terms of developing their
aerospace provision. These include:
Engaging employers

Providers felt that relationships with both large and small employers could be improved
and reported difficulties engaging with employers.

The Marine Skills Centre Network was considered by several providers to be an example
of best practice in terms of employer involvement.
Fluctuations in demand for training

The cyclical nature of the aerospace sector has an effect on demand for training. In
addition, there can be a significant impact on providers if they have a very close
relationship with certain employers.
Diversity and quality of entrants

Learners on aerospace related courses are likely to be male. While providers have tried
many approaches to broaden the recruitment of learners, they have not been able to
make a significant difference to the number of female students on aerospace courses.
Changes in technology

The rapid pace of technological development in the aerospace sector can cause
problems for some training providers in terms of keeping their equipment up to date.
Some have arrangements to allow them to make use of employers’ equipment, but these
tend to be ad hoc in nature.
Step Ahead Research
iv
Aerospace Training South West
1.0 Introduction
1.1
Aims and objectives of this study
In 2005, Step Ahead Research was commissioned by the South West Regional
Development Agency (SWRDA) to undertake a study to inform future investment in
skills provision for the aerospace sector in the South West. The research design for
the study was inspired by a potential opportunity to engage some of the largest
aerospace companies in the region in a collaborative approach to tackle the current
and future workforce development needs of the sector.
Four aerospace companies - Airbus (UK), Flight Refuelling, Rolls Royce and Smiths
Aerospace - had separately approached SWRDA to discuss their skills needs. It was
believed that these companies might be willing to consider innovative approaches to
workforce development in the sector, in collaboration with each other and with
existing providers of education and training in the region.
Therefore, the objectives of the research were to:
i.
Identify the training and workforce development needs of the four large
aerospace companies, using SEMTA’s (the Sector Skills Council for Science,
Engineering and Manufacturing Technologies) Sector Skills Agreement as the
baseline position for the sector as a whole.
ii.
Map current and planned training provision in the region, looking at existing and
proposed in-house company solutions (including details of facilities under
consideration) together with public sector provision.
iii.
Explore and test new approaches to public and private sector training and
workforce development, both to improve collaboration and to maximise the
added value of public sector investment.
The study did not intend to map the skills needs of the sector as a whole, other than
to present SEMTA’s Sector Skills Agreement in a regional context. Instead this study
explored the skills and training needs of four large aerospace companies in the
region, which involved site visits and interviews with a number of senior staff within
each company.
In addition, telephone depth interviews were carried out with 11 education and
training providers, including five colleges of Further Education (FE), three Higher
Education (HE) institutions and three private Work-Based Learning (WBL) providers.
Finally, a number of interviews were undertaken with other key stakeholders,
including SWRDA, the Learning and Skills Council (LSC) in the region, the Society of
British Aerospace Companies (SBAC) and the West of England Aerospace Forum
(WEAF).
The initial findings from the research were discussed and validated at an employer
and stakeholder workshop at the beginning of January. This workshop also started to
look at the willingness of employers to collaborate to meet the sector’s skills needs,
as well as current gaps and barriers. A more detailed account of the research method
is set out in Annex 1.
Step Ahead Research
1
Aerospace Training South West
1.2
Report outline
The rest of this Section looks at the national and regional policy environment with
regard to skills needs in the aerospace sector. The remainder of this report is
structured as follows:
Section 2 provides an overview of the skills needs of aerospace employers and key
industry trends.
Section 3 examines the skills needs and training activity of the four aerospace
companies taking part in the study.
Section 4 sets out current and future training provision in the region, based on
provider interviews and ILR analysis.
Section 5 sets out recommendations for a way forward towards a collaborative
solution to aerospace skills needs in the South West.
1.3
Policy drivers
Figure 1.1 below outlines the national and regional policy environment and key
government department, agencies and trade bodies with a direct or indirect influence
on the aerospace sector in the South West. It is clear that the needs of the
aerospace sector are being taken seriously across the UK and within the South
West. However, a number of policy developments, initiatives and public interventions
are in their infancy and do not always seem to be fully ‘joined up’.
There are also a number of agencies and bodies that seek to represent the sector,
with a number of working groups exploring workforce development issues. This
section will first look at the national policy context, including aerospace specific
initiatives and national skills policy, before focusing on policy initiatives in the South
West.
Step Ahead Research
2
Aerospace Training South West
Figure 1.1: National and regional policy context
DoD
MoD
DTI
UK Aerospace sector
SBAC
AeIGT
National
LSC
SEMTA
DfES
SWRDA
SW LSC
SW Skills
Alliance
SW Aerospace Sector
WEAF
1.3.1 National context
This section will briefly look at the role of:



the Aerospace Innovation and Growth Team
SEMTA- the Sector Skills Council for Science, Engineering and
Manufacturing Technologies
the Society of British Aerospace Companies
In 2002, the Department for Trade and Industry (DTI) established a series of
Innovation and Growth Teams (IGTs), with each given the task of looking
strategically at a specific sector. The teams aim to identify the key issues shaping the
future of their sector and how the UK can best respond to the competitive challenges
they will face. Aerospace is one of nine sectors to be covered by an IGT1.
1
HM Treasury, Science and Innovation Framework 2004-2014. The other sectors are Automotive, Software and
Digital Content, Chemicals, Environmental Goods and Services, Retail, Construction, Biosciences and Electronics.
Step Ahead Research
3
Aerospace Training South West
The Aerospace Innovation and Growth Team (AeIGT) brings together senior
representatives from industry, government departments, trades unions, universities
and research bodies. AeIGT’s 20 year vision for aerospace is that by 2022:
“The UK will offer a global Aerospace Industry, the world’s most innovative and
productive location, leading to sustainable growth for all its stakeholders.”2
Government and industry representatives have been working towards achieving this
vision at both the regional and national level. The partners aim to bring about change
in the sector, focusing on:
 Spearheading international developments in sustainable aviation
 Applied research and validation of new technologies
 Radical industrial productivity improvements right across supply chains
 Developing a world class workforce capable of delivering tomorrow’s solutions
 Developing competitive economic conditions in the UK that encourage industry to
invest and succeed3
Within AeIGT there are five working groups, including the Aerospace Technology
Steering Group, the Enterprise Excellence Board and the People Management
Board. The People Management Board is currently forming strategic partnerships
and project teams in order to:
 Develop effective and sustainable channels of communication between the
industry, government and academia
 Ensure structures and provision of education, training and lifelong learning
mechanisms meet the needs of the industry
 Ensure the industry adopts best practice in learning, people management and
continual professional development
 Promote the industry for the purpose of attracting and retaining the highest
calibre talent4
Figure 1.2: SEMTA SSA - Vision and Potential Barriers
Vision for the aerospace, automotive, electronics, bioscience and marine sectors





The right person trained in the right skills at the right time
Maximum opportunity for employers to make the right choices
Available progression and transferability routes between sectors
Employers can decide who to train and with which training providers
Flexible delivery of up/cross skilling in bite-sized chunks which attracts credits
Potential barriers




Accessibility of funding – many companies find the system too difficult
Mismatch between funding and age profile (90% of the 2014 workforce is already
employed in the sector)
Quality of business support – need to provide quality Information, Advice and Guidance
(IAG)
The ability of the training provision system to respond to skills demand
Source: SEMTA Sector Skills Agreement (SSA) 2005.
Similar challenges have been identified by SEMTA, as set out in their Sector Skills
Agreement (SSA) for the Electronics, Automotive and Aerospace Industries. The
AeIGT website – www.AeIGT.co.uk/vision.shtml
DTI website – www.dti.gov.uk/aerospace/aeigt.htm
4
AeIGT website – www.aeigt.co.uk/workinggroup3.shtml
2
3
Step Ahead Research
4
Aerospace Training South West
SSA puts forward a vision for the future of these industries and identifies critical
potential barriers to delivery, as set out in Figure 1.2.
In order to take the SSA forward, SEMTA have produced an Action Plan, focusing on
the issues facing the aerospace, electronics and automatic sectors nationally and
how these issues can be addressed at a regional and local level5. The plan includes
sections setting out what each of SEMTA’s delivery partners intend to do to tackle
sector needs. The Action Plan agreed between SEMTA and SWRDA includes:







Working with the DTI to identify technologies for collaborative research, leading to
the establishment of networks in the South West aerospace sector
Looking at the development of a regional plan and the role that stakeholder
organisations such as the Engineering Employers’ Federation (EEF) and the
West of England Aerospace Forum (WEAF) can play in delivery
Piloting aerospace education and training to fill gaps in provision
SEMTA and SWRDA working together to develop a checklist of competencies
and a matrix, which will be linked to the providers of skills training
Working with companies in the delivery of Lean skills
Developing skills to take account of technology programmes outlined in the
AeIGT report
Developing specific courses for the aerospace sector
The national trade association, the Society of British Aerospace Companies
(SBAC), also seeks to represent companies supplying civil air transport, aerospace
defence, homeland security and space. SBAC aims to assist companies to develop
new business globally, facilitate innovation and competitiveness, and provide
regulatory services in technical standards and accreditation.
The Skills and People Management Board of SBAC, which also includes senior
representatives from member companies, government departments, Regional
Development Agencies, SEMTA, the Defence Industries Council, Regional Trade
Associations (including WEAF), the Association of Aerospace Universities, trade
unions, academia and the Royal Aeronautical Society, aims to:



Establish an effective dialogue between industry, government and academia to
communicate and address skills needs
Continue to develop a world class workforce
Promote the UK aerospace sector more effectively in order to attract and retain
the necessary skills and talent6
A separate Training Directors Committee has also been established, with the
intention to replicate this across each region of the UK.
SBAC runs the Supply Chain Relationships in Action (SCRIA) Programme. SCRIA
has been established for 10 years and is an industry-wide programme aiming to
improve the performance of value chains by improving working relationships, cutting
out waste and maximising value transfer. In addition, the Society intends to launch a
new initiative to help UK aerospace companies at all levels of the supply chain to
maintain global competitiveness. The programme is to be developed with member
companies and the results are due to be presented in March 20067.
5
SEMTA, Sector Skills Agreement: Action Plan for England, 2005.
SBAC website – www.sbac.co.uk
7
SBAC acts on UK Competitiveness, Press Release 12 January 2006.
6
Step Ahead Research
5
Aerospace Training South West
The role of Department of Defence (DoD) and the Ministry of Defence (MoD) is
discussed in Section 2.5.
National skills policy
Reference in this section is made to:




Apprenticeships and Foundation Degrees
The National Employer Training Programme
National Skills Academies
Centres for Vocational Excellence
Any plans for future investment in skills provision for the aerospace sector in the
South West will need to take into account national skills policy. In March 2005, the
Department for Education and Skills (DfES) published the White Paper ‘Skills:
Getting on in business, getting on at work’8. The paper sets out how the government
aims to tackle the skills challenge and builds on its first national Skills Strategy,
published in 2003.
Through their strategy, the government aims to ensure that employers have the right
skills to support the success of their business and that individuals have the skills they
need to be personally fulfilled. The White Paper sets out proposals and reforms
designed to put employers’ needs centre stage in the design and delivery of training,
support individuals in gaining skills and qualifications and reform the supply of skills
and training.
An important priority in current government policy is developing a “vocational ladder”
into employment for young people from the age of 14, including GCSEs in vocational
subjects, Apprenticeships and Young Apprenticeships, and access to higher level
skills through Foundation Degrees9.
Apprenticeships are funded by the Learning and Skills Council and allow young
people to learn towards a recognised qualification through a combination of on and
off-the-job education and training. The government aims to increase the number of
learners successfully completing apprenticeships by 75% between 2002/03 and
2007/08 and to establish this as the main work-based route for young people to gain
employment skills10.
Foundation Degrees represent an important vocational progression route to higher
level skills for both young people and adults. The government hopes that expanding
these courses, which allow learners to gain a Higher Education qualification at Level
3-4, will help them to meet their target of increasing participation in HE towards 50%
of all 18-30 year olds11. Foundation Degrees aim to integrate academic and work
based learning through close collaboration between employers, universities and
Further Education colleges.
In order to give employers more choice over the training they offer their employees
and to help them to respond to their business development needs, the National Skills
Strategy sets out details of ‘Train to Gain’, the National Employer Training
Programme (NETP). Through this programme, employers can access a brokerage
service to help them to identify their skills needs at all levels, including both needs for
8
HM Government, Skills: Getting on in business, getting on at work, 2005.
Department for Education and Skills website – www.dfes.gov
HM Government, Skills: Getting on in business, getting on at work, 2005.
11
HM Government, Skills: Getting on in business, getting on at work, 2005.
9
10
Step Ahead Research
6
Aerospace Training South West
qualifications and more informal development needs. The skills broker will assist the
employer to link their training needs to business performance and give advice about
local providers who can fulfil their requirements, as well as signposting them towards
business support if appropriate.
The full range of an employer’s training priorities is covered, not just the needs of
low-skilled staff. However, the employer is expected to pay for training sourced, with
the exception of core basic skills and Level 2 (and Level 3 in priority sectors) training
for employees who do not have a qualification of this kind.
In the strategy, the government identifies the importance of Level 3 technician,
advanced craft and associate professional skills. It aims to use the NETP to create a
new partnership with employers to support training in these skills. It is hoped that
Train to Gain will make it easier for employers to access Level 3 training and in two
regions a system is being piloted to include an element of subsidised support for this
training.
‘Skills: Getting on in business, getting on at work’ also outlines plans for National
Skills Academies. The government intends to build a network of 12 national
academies, covering all the major sectors of the UK economy, by 2008. These
academies are intended to be sector-led national centres of excellence which will
provide an opportunity for employers to develop a national response to meeting their
sector’s needs12. They will be focused on vocational educational and skills training,
delivering to young people (16-19) and adults13.
The first four National Skills Academies are due to open in September 2006. One of
these academies will be sponsored by SEMTA, which intends to use this as a route
to encourage more young people and adults to consider a career in manufacturing by
offering real opportunities for progression and skills development, linked closely to
vocational learning offered through schools. The SEMTA Skills Academy is expected
to fill skills gaps in the lead sub-sectors of aerospace, automotive, electronics and
marine, and to raise standards in course design delivery and assessment14.
Once established, the National Skills Academies will be funded through the LSC,
employers purchasing training services and fees charged to learners. It is envisaged
that the Academies will link with existing national, regional and local networks of
colleges, Centres of Vocational Excellence (CoVEs) and training providers.15
CoVEs are specialist areas of vocational provision characterised by close links
between colleges, other providers, business partners, other employment interests
and communities. The LSC’s CoVE programme is primarily focused on delivering
skills at Level 3 and aims to enable the development, maintenance and delivery of
high quality, specialist provision across a range of areas16. Together with national
government, the LSC have established a target to create a network of 400 CoVEs by
March 200617.
CoVEs focus mainly on local and regional skills needs, but the government consider
them an important part of their policy relating to National Skills Academies. DfES are
currently reviewing the future development of the CoVE programme and aim to
DfES Website – www.dfes.gov.uk/publications/nsaprospectus
National Skills Academies (NSAs) – Frequently Asked Questions, DfES, 2005.
14
Keeping You Informed, Issue 06/05, December 2005, Engineering Industries Association.
15
National Skills Academies, DfES, 2005.
16
LSC CoVE website – http://cove.lsc.gov.uk/index.cfm
17
DfES Success for All website – www.dfes.gov.uk/successforall/index.cfm?pg=44
12
13
Step Ahead Research
7
Aerospace Training South West
ensure that there is a strong link between CoVEs and the new academies18.
1.3.2 Regional policy
As can be seen from Figure 1.1, a number of bodies have an influence in the
aerospace sector at a regional level. In this section, we look at the role of the South
West Regional Development Agency (SWRDA) and the Regional Economic Strategy
(RES), the West of England Aerospace Forum (WEAF) and the South West
Enterprise and Skills Alliance (SWESA).
In its draft RES, SWRDA identifies aerospace and advanced engineering as one of
eight priority sectors for the region. These priority sectors will be the focus of specific
activity to try to raise productivity such as, sector networks, supply chain
development and sector skills programmes19.
SWRDA has provided £2 million towards the funding of ‘A Journey Through
Engineering’, a project designed to tackle skills shortages faced by the advanced
engineering industry; with a further £2 million coming from participating schools,
colleges, universities, companies and other key stakeholders. Launched in January
2004, this project will last for three years and aims to tackle the sector’s short and
long term skills needs, and raise awareness of engineering as a career in schools,
colleges and universities20.
The RDA also plans to develop a new £500 million science park north of Bristol to
provide accommodation for new businesses emerging from joint ventures between
universities and industry and to provide expansion space for high technology
companies already trading in the area. The project is supported by local universities
and is located strategically close to prime contractors such as Airbus21. It is
suggested that demand for the park will come from the established key sectors in the
South West, including aerospace and defence, digital technologies and
biotechnology22.
Although not aerospace-specific, other SWRDA initiatives to encourage innovation
and improvements in productivity in the South West include:
 The South West Innovation Relay Centre – intended to drive technology transfer
agreements between companies in the South West and those based elsewhere
in Europe.
 Knowledge Economy South West – developed to improve the productivity and
competitiveness of the region’s businesses through better exploitation of the
Higher Education business base.
 Inspire South West – a programme to promote innovation in the South West,
jointly funded by SWRDA and the European Commission, as part of the EU
Innovative Actions Programme23.
SWRDA also provides funding to the West of England Aerospace Forum; a
membership organisation that aims to champion the interests of all aerospace and
defence companies in the South West region, especially SMEs. WEAF delivers a
skills programme to encourage people to enter and remain in the industry and to
18
National Skills Academies (NSAs) – Frequently Asked Questions, DfES, 2005.
Regional Economic Strategy for the South West of England 2005-2015 – Draft for Consultation, SWRDA, 2005.
20
SWRDA website – www.swrda.org.uk
21
South West England: Leading Edge Technology in Aviation and Defence, SWRDA, 2005.
22
SWRDA website – www.swrda.org.uk
23
South West England: Leading Edge Technology in Aviation and Defence, SWRDA, 2005.
19
Step Ahead Research
8
Aerospace Training South West
develop and upgrade the skills of the existing workforce. The aims of the skills
programme and WEAF’s strategy for achieving these aims are set out in Figure 1.3
below.
Figure 1.3: WEAF Skills Programme – Aims and Strategy
Aims





Facilitate the development of co-operation between academia and industry
Promote the image of aerospace careers to the general public and throughout the
educational curriculum
Increase the skills base of the South West Aerospace sector through focused skills
development and training
Enhance the attractiveness of the South West aerospace region to the wider aerospace
workforce
Encourage skills re-engagement with the Aerospace industry
Strategy




Improving public perception – through fun and information
Developing workforce skills – through work-based training
Transferring skills – through graduate placements
Identifying and meeting future skills needs
Source: WEAF website – www.weaf.co.uk/skills/skills.html
Initiatives aimed at promoting the sector to potential new entrants include an Aviation
and Defence Careers Day and ‘Engineering your Future’, which gives students from
local schools the opportunity to take part in hands-on activities introducing them to
the skills required in the aerospace industry and to Higher Education institutions and
aerospace employers.
Skills policy in the South West is influenced by the National Skills Strategy. The
South West Enterprise and Skills Alliance is part of the region’s response to the
challenges set for it by national government. SWESA brings together a wide range of
partners who represent business, education and training providers, public funders
and individual learners, and is responsible for the ‘South West Skills Strategy’. It aims
to help ensure that employers and businesses have access to the skills they need to
grow and that individuals can get the training required to enable them to fulfil their
career potential and ambitions within the region24.
SWDRA recognise that a number of actions must be taken to overcome the
challenges facing the region. These include repositioning target businesses and
sectors in higher value markets and creating dynamism and adaptability in the labour
market. In order to achieve these aims, four priorities have been identified for
SWESA action:
1. Developing a simple brokerage system offering skills advice and guidance to
better meet the needs of employers.
2. Raising demand for leadership and management skills and enhancing the quality
of professional development provision.
3. Improving levels of literacy, language and numeracy.
4. Joint planning to help make the supply of training more timely and flexible to
ensure more flexible use of resources25.
24
25
South West Enterprise and Skills Alliance, “Skills for Enterprise and People”.
South West Enterprise and Skills Alliance, “Skills for Enterprise and People”.
Step Ahead Research
9
Aerospace Training South West
2.0 Aerospace Skills Needs in the South West:
an overview
In this section we provide an overview of the aerospace sector in the South West and
outline information indicating the likely skill needs of aerospace employers in the
region. This provides a wider background to the perspective of the four large
aerospace companies interviewed as part of the study, which is examined in Section
3.
2.1
The aerospace sector in the South West
The South West of England has a particularly strong history of aerospace activity.
Nine out of the 12 largest aerospace companies in the UK have major facilities in the
region26. These include Airbus and Rolls Royce in the Bristol area, Westland
Helicopters in Somerset, Cobham/Flight Refuelling in Dorset and Smiths Aerospace,
which has sites in Dorset and Gloucestershire. The South West is also home to more
than 700 companies that form part of the aerospace supply chain27. Further details
on some of the major players in the South West aerospace industry and supply chain
are set out in Figure 2.1.
Figure 2.1: Major aerospace players in the South West
Airbus UK Limited
Rolls Royce
Cobham Group
(including Flight
Refuelling Ltd)
Westland Helicopters
Honeywell
Messier Dowty
Thales
Smiths Aerospace
GKN
Designer and manufacturer of key components including wings, landing gear
and fuel systems for civil and military aircraft
Global leaders in engineering for the aerospace, defence and marine industries
Designs and manufactures equipment, specialised systems and components for
the aerospace, defence, homeland security, search & rescue and
communications markets and modifies and maintains aircraft
Manufactures and supplies civil, utility, naval and search & rescue helicopters
and repairs and upgrades existing helicopters.
Manufacturer of aerospace products and services, control technologies,
automotive products and other technology
World leader in the design, development, manufacture and support of landing
gear systems
World leader in electronic systems and industrial electronics, acting in defence,
aerospace, airline security and safety
Providers of innovative solutions to builders and operators of military and civil
aircraft and engines
Supplier to automotive and aerospace manufacturers, providing technologybased, highly engineered products.
Source: SWRDA website – www.swrda.org.uk
The South West accounts for 8% of employees and 8% of establishments in Great
Britain. However, 21% of national aerospace employment (18,665 people) and 15%
of establishments (117) are located in the region.
Oxford Economic Forecasting has calculated a “multiplier effect” 28 for the sector that
calculates that for every 100 direct aerospace jobs, 122 other individuals earn a living
from connected activities. Taking this multiplier effect into account, it can be
estimated that 41,436 employees in the South West are dependent on aerospace for
their livelihood, equal to 1.9% of all jobs in the region.
SWRDA website – www.southwestrda.org.uk/what-we-do/business-growth/inwardinvestment/sectors/engineering/index.shtm
27
SWRDA website – www.southwestrda.org.uk/what-we-do/business-growth/inwardinvestment/sectors/engineering/index.shtm
28
UK Aerospace Industry Survey, SBAC, 2005 - This multiplier was calculated by Oxford Economic Forecasting as
part of their study “The economic contribution of BAE Systems to the UK”.
26
Step Ahead Research
10
Aerospace Training South West
In certain sub-regions, aerospace accounts for an even greater proportion of
employment. In the West of England and Somerset, direct and indirect aerospace
workers account for around 7% and 4%, respectively, of all employment. Over 80%
of aerospace employment in the South West is located in these two sub-regions,
compared with just a third of jobs across all industries (see Figure 2.2).
Figure 2.2: Aerospace employment in the South West by sub-region
60
Aerospace
50
All industries
%
40
30
20
10
Wiltshire &
Swindon
Somerset
Gloucestershire
West of
England
Devon &
Cornwall
Bournemouth,
Dorset, Poole
0
Source: ABI 2004.
However, the geographical spread of the sector is more even in terms of the location
of aerospace establishments. Figure 2.3 shows that over a quarter (26%) of these
establishments are found in Bournemouth, Dorset & Poole.
Figure 2.3: Aerospace establishments in the South West by sub-region
35
Aerospace
30
All industries
25
%
20
15
10
5
Wiltshire &
Swindon
Somerset
Gloucestershire
West of
England
Devon &
Cornwall
Bournemouth,
Dorset, Poole
0
Source: ABI 2004.
2.2
Current skills profile of the aerospace sector
In order to provide an indication of the skills needs facing the aerospace sector as a
whole in the South West, this section presents information from the SEMTA Sector
Skills Agreement for the Electronics, Automotive and Aerospace industries29. While
the data presented relates to the national level, it is likely that the picture of the sector
revealed will be mirrored to a significant extent in the South West.
29
Sector Skills Agreement for the Electronics, Automotive and Aerospace Industries, SEMTA, 2005.
Step Ahead Research
11
Aerospace Training South West
Figure 2.4 shows that nearly two fifths (37%) of employees are high skilled and work
as managers, professionals or associate professionals. The corresponding figure for
engineering as a whole is 31%. More than one quarter (27%) is engaged in
‘intermediate’ skilled trades occupations and a further quarter (26%) is employed in
lower skilled roles as machine operatives or elementary staff.
Figure 2.4: UK aerospace employment (2004)
Occupation
Managers
Professionals
Associate Professionals
Admin/ Clerical
Skilled Trades
Personal Service Staff
Sales/ Customer Service
Machine Operatives
Elementary staff
%
11
16
10
9
27
<1
1
15
11
Source: SEMTA/IER Forecasting model - quoted in Sector Skills Agreement for the Electronics, Automotive and
Aerospace Industries, SEMTA, 2005.
The higher skills profile of the aerospace sector compared with engineering as a
whole is also reflected in the qualification levels of the workforce (see Figure 2.5).
While only 5% of employees in the aerospace sector have no qualifications, this rises
to 12% of all engineering employees. Furthermore, 34% of aerospace workers hold a
Higher Education qualification, with 19% qualified to degree level or equivalent,
compared with 24% for all engineering industries.
Figure 2.5: Highest qualification held: aerospace and all engineering (2003/04)
UK
Aerospace
UK
Engineering
Degree or
equivalent
Higher
Education
GCE A
Level or
equivalent
GCSE
grades A-C
or equivalent
Other
qualifications
No
qualification
19%
15%
43%
12%
6%
5%
13%
11%
34%
17%
12%
12%
Source: LFS 2003/2004 - quoted in Sector Skills Agreement for the Electronics, Automotive and Aerospace
Industries, SEMTA, 2005.
2.3
Skills shortages and gaps
According to the Sector Skills Agreement, skills shortages in the aerospace sector
are evident across most levels of the workforce, including professional engineers,
skilled trades workers and machine operatives. Information on the extent of skills
shortages facing aerospace sector employers was not included in the Sector Skills
Agreement.. As with most sectors or occupational groups, the reasons for skills
shortages focus on lack of suitable applicants with the required qualifications, skills
and/or experience. Skills shortages have knock-on implications, in terms of loss of
business orders, restricted business development and/or increased running costs.
An employer can be considered to have a skills gap if they have at least one member
of staff who they do not consider to be fully proficient in their role. The SSA identifies
skills gaps in the aerospace sector at management, professional, craft and
operator/assembler levels; again at most levels of the workforce. It should be noted
that skills shortages and skills gaps are inherently related, as employers are often
forced to recruit at sub-optimal levels; thus creating a skills gap.
Step Ahead Research
12
Aerospace Training South West
Particular problem areas include technical engineering skills, particularly for general
engineering, Computer Aided Design (CAD) and Computer Aided Manufacture
(CAM). Skills gaps are also highlighted in management skills and key/inter-personal
skills.
SEMTA’s aerospace Sector Strategy Group (SSG) believes that increased emphasis
on higher value added activities within the industry has been reflected in increasing
skills gaps. The group reports that graduates entering the aerospace industry (who
are likely to take up associate professional or professional roles) had a lack of
employability skills and estimated that in some cases new entrants from Higher
Education would take up to two years to make a positive contribution to the business.
Some graduates were felt to have weaknesses in their literacy and numeracy skills.
Figure 2.6 summaries the key skills requirements for the sector, as defined by the
Sector Skills Agreement. The SSA draws on information on key skills requirements
for the aerospace sector from sources including the Aerospace Innovation and
Growth Team and the National Employer Skill Survey (NESS), together with
feedback from events and its own Sector Skills Group of employers.
Figure 2.6: Key skills requirements in the aerospace sector
Technical skills
Personal and generic skills
AeIGT
Software systems, modelling
and simulation
Systems design and modelling
Advanced materials engineering
Diagnostic and prognostic
techniques
Skills to support emerging
technologies
NESS
Communication skills
Advanced, high level and
intermediate general IT skills
Advanced and high level
customer handling skills
Advanced and high level team
working
High and intermediate literacy
and numeracy
SEMTA ‘Expert Group’ day
Systems and systems
integration
Software systems for navigation,
flight, weapons and radar
Manufacturing engineering using
advanced materials and
assembly techniques
Aerospace SSG
Leadership (particularly at team
leader level)
Project management and supply
chain management
IT skills
“Cross industry” skills needs
Risk management
Exploitation of new product
development
Supply chain management
Lean manufacturing
Marketing skills
Business understanding
Project management
Knowledge management
Systems thinking
Research skills
Teamwork
High level engineering skills
Generic skills
Customer relationship
management
Source: SEMTA Sector Skills Agreement.
The Sector Skills Council reports skill needs relating to technical skills, personal and
generic skills and what it terms “cross industry” skills needs. These are skills needs
that apply not just to the aerospace sector but also to other engineering sectors. As
such, competition for these skills is likely to become stronger in the future.
2.4
Employer training
SEMTA suggest that aerospace companies are likely to invest more in training for
staff than the average for all engineering sectors. The SEMTA/EEF ‘People Skills
Scoreboard’ found that aerospace employers spend an average of £380 per
employee per year on training, compared with £190 per employee across
engineering as a whole30. The same study also found that aerospace employees
30
SEMTA/EEF, 2003-04 People Skills Scoreboard for the engineering industry, quoted in Sector Skills Agreement for
the Electronics, Automotive and Aerospace Industries, SEMTA, 2005.
Step Ahead Research
13
Aerospace Training South West
receive more than three days of off-the-job training per year on average, compared
with 2.2 days across engineering as a whole.
However, only 19% of aerospace employers were able to afford for staff to have time
off for training. A quarter said that they were too busy to train or did not have the time
available and a further 10% felt the cost of training was a barrier31. Clearly, large
employers are more likely than their smaller counterparts to fund and/or arrange offthe-job training for their staff.
Traditionally, apprenticeships have been an important source of skills to the
aerospace sector. SEMTA estimate that nearly half of all aerospace companies have
apprentices or other recognised trainees. The Institute for Employment Research
(IER) at the University of Warwick report that BAE Systems save up to £1 million per
annum by training apprentices rather than by external recruitment32.
However, larger aerospace firms are much more likely than small and medium sized
enterprises (SMEs) to employ apprentices (96% compared with 44%) and the
aerospace Sector Strategy Group (SSG) believes that aerospace companies,
especially those further down the supply chain, are not offering enough
apprenticeships.
The Apprenticeships Task Force identifies that many SMEs and businesses located
in rural areas encounter difficulties that present barriers to their involvement with
apprenticeships. The Task Force is keen to promote solutions to help employers to
overcome these barriers such as Group Training Associations (GTAs). GTAs allow
employers to join together to share the administrative burden of running an
apprenticeship programme. This is believed to help more SMEs to take on
apprentices33.
2.5
Industry trends
The aerospace industry is currently going through significant changes and these are
likely to have an important impact on the skills needs of aerospace employers in the
South West in both the short and long term.
Increasing orders and turnover
The UK aerospace industry is currently experiencing a period of growth in orders and
turnover following a significant downturn after 2001. This decline reflected the impact
of the September 11th terrorist attacks, which affected demand for civil aerospace
production. While it is still below 2001 levels, there are signs that turnover is
beginning to recover, with growth of 3.5% in real terms between 2002 and 200334.
The UK’s share of the global aerospace market is also growing. It now stands at 13%
compared with 9% in 199535.
According to the Society of British Aerospace Companies, there were 28% more
aerospace orders in 2004 than in 2003. This represents the highest level since 1998,
31
SEMTA LMS 2002, MRO LMS 2004 and Employer Survey 2004.
Apprenticeships Task Force Final Report: The Business Case for Apprenticeships, Apprenticeships Task Force,
2005.
33
Ibid
34
Sector Skills Agreement for the Electronics, Automotive and Aerospace Industries, SEMTA, 2005.
35
An independent report on the future of the UK Aerospace Industry, AeIGT, 2003.
32
Step Ahead Research
14
Aerospace Training South West
and the first increase in civil aerospace orders since 200136. The civil and defence
aerospace markets are inter-related, with many companies serving both.
However, the civil and defence markets are subject to different influences. In 2003,
there was a 50:50 split in terms of turnover. This is very different to the situation in
1980, when just 25% of turnover was related to the civil market. Since 1991, civil and
defence aerospace activity have remained relatively “well balanced” and the House
of Commons Trade and Industry Committee suggest that this shows defence work
sometimes filling production gaps caused by a decline in civil aerospace and vice
versa37.
In recent years there has been significant growth in the number of orders received by
UK aerospace companies, including success in winning high profile contracts.
SEMTA report that UK aerospace businesses have won 50% of all orders by value
for the new Airbus A380 aircraft and 30% for the Boeing 7E738.
The DTI forecast worldwide demand for 15,000 passenger aircraft, which carry more
than 100 people, between 2002 and 202139. This includes supply to new markets
such as China, which has recently placed an order for 150 Airbus A320 aircraft
(worth £5.7 billion globally). Boeing has also signed a $4 billion deal to supply 70
aircraft to China. Annual Chinese air passenger travel is expected to rise to 500
million by 201040.
However, the aerospace sector remains a volatile market. There is evidence to
suggest that some airlines are still facing difficulties, with high oil prices for example
continuing to present a financial challenge41, and this could impact on their future
demand for new aircraft.
Defence markets are traditionally less cyclical than those for the civilian side of the
sector, influenced predominantly by governments’ spending and purchasing
decisions. There is evidence to suggest that companies are using exposure to both
civil and defence markets to reduce the impact of market fluctuations. For example,
Amicus report that Airbus will continue to develop their military division in order to
remove some of their vulnerability to future downturns in the civil market42.
The F-35 programme is likely to be particularly important in terms of defence
aerospace sales over the next 10 years, with the UK aerospace industry already
securing 24% of the programme to date by contract value43. This programme will see
the development and production of a Joint Strike Fighter (JSF) aircraft for the US Air
force, Navy and Marine Corps, as well as the UK Royal Navy44.
However, the value of this project to UK aerospace could be in question. It was
originally envisaged that two engine types would be developed for the JSF
programme, with one involving Rolls Royce as a major partner. Recent
announcements from the Pentagon however set out proposals to drop the second
36
UK Aerospace Industry Survey, SBAC, 2005.
House of Commons Trade and Industry Committee (2005), The UK Aerospace Industry (15th Report of Session
2004-05) HC 151-I, TSO.
38
Sector Skills Agreement for the Electronics, Automotive and Aerospace Industries, SEMTA, 2005.
39
http://www.dti.gov.uk/aerospace/commercial.htm
40
Airbus unveils $10bn Chinese deal, 5 December 2005, BBC News website –
http://news.bbc.co.uk/2/hi/business/4498794.stm
41
House of Commons Trade and Industry Committee (2005), The UK Aerospace Industry (15th Report of Session
2004-05) HC 151-I, TSO.
42
Amicus Research, Industrial Report 2004: Amicus and the Aerospace industries.
43
Sector Skills Agreement for the Electronics, Automotive and Aerospace Industries, SEMTA, 2005.
44
Airforce-technology.com website - http://www.airforce-technology.com/projects/jsf
37
Step Ahead Research
15
Aerospace Training South West
engine, in order to reduce costs. The UK government is currently in negotiations with
the US on this issue and approval is required from the White House and Congress
before any change is finalised45.
There are also likely to be significant changes in the UK defence market. The
Ministry of Defence (MoD) recently stated that there would be no need for new fighter
jets for at least 30 years after the introduction of the Eurofigher and Joint Strike
Fighter. The MoD is urging companies to shift away from traditional weapons building
and to concentrate instead on long term support for systems already being built46.
The Defence Industrial Strategy (DIS), published in December 2005, will have a
significant impact on the UK aerospace industry. The Strategy aims to ensure that
equipment required by the Armed Forces can be procured from a sustainable
industrial base that retains capabilities such as infrastructure, skills, intellectual
property and capacity within the UK47. The Strategy is designed to give industry a
clearer idea of the MoD’s priorities, allowing companies to better plan for the future
and to invest in key skills, technologies and capabilities.
In the DIS, the MoD identifies a continuing trend of industrial rationalisation in the
defence sector. It predicts that in several sectors, following the entry into service of
major projects, there will be substantial overcapacity in production facilities in a few
years’ time48. This suggests that the structure and size of the South West aerospace
industry in future may be very different from its current position.
Increasing levels of international competition
UK aerospace’s global position could be threatened by competition from traditional
rivals, such as Canada and the US, together with new entrants from emerging
markets, including China, India and Japan. The Aerospace Innovation and Growth
Team suggest that productivity within UK aerospace must grow at a greater rate than
that of its international competitors if the sector is to remain competitive
internationally.
However, the exact nature of the threat to civil and defence aerospace markets from
competitors from emerging economies is difficult to quantify. Countries such as
Taiwan, Indonesia and Brazil have already established their own indigenous
aerospace industries, which could impact on the international market49. While
significant economies of scale make it hard for competitors to join the market for the
manufacture of complete airframes or engines, this is not the case for the supply of
aerospace components. A report by Farnborough Aerospace Consortium (FAC)
points to a 30-50% decline in the number of UK companies supplying the aerospace
sector as a result of increased competitive pressure from low cost countries. The
FAC found that larger companies had already started making use of firms in lower
cost economies50, while SMEs were less likely to be aware of the benefits that this
could bring to their business and/or more likely to suffer from the increased levels of
competition.
Increased competition in traditional aerospace markets could lead to significant
growth in certain “niche” sub-markets, such as Maintenance, Repair and Overhaul
45
One of our engines is missing, Telegraph on-line (www.telegraph.co.uk), January 15 2006.
Defence industry survival requires ‘painful’ change, Financial Times, December 16 2005.
47
Ministry of Defence Website - www.mod.uk/issues/industry
48
Defence Industrial Strategy: Defence White Paper, Ministry of Defence, 2005.
49
House of Commons Trade and Industry Committee (2005), The UK Aerospace Industry (15th Report of Session
2004-05) HC 151-I, TSO.
50
Ibid.
46
Step Ahead Research
16
Aerospace Training South West
(MRO) activities or the supply of both new products and “after sales care” throughout
the product lifecycle51.
Supply chain rationalisation
The aerospace sector is characterised by a higher than average proportion of large
employers (as compared with all industry sectors), served by a ‘tiered’ supply chain
located across the world. Around a quarter (24%) of aerospace establishments in the
South West employ 50 people or more, compared with just 3% across all industries,
representing a rise of 20% since 199852.Similar trends have been reported by SBAC,
who believe that this reflects increasing numbers of aerospace SMEs either merging
or leaving the sector altogether as a result of a decrease in outsourcing
arrangements53.
In recent years, there has been a decline in the total number of aerospace
businesses trading in the South West. In 1998, there were 142 aerospace
establishments in the region, 14% more than in 2004. The trend in the number of
aerospace establishments in the South West between 1998 and 2004, compared
with the trend for all industries in the region and for the sector across Great Britain, is
set out in Figure 2.7.
Figure 2.7: Trends in the number of establishments – 1998-2004
Index (Year 1998 = 100)
120
110
100
90
Aerospace South West
80
Aerospace Great Britain
70
All industries South West
60
1998
1999
2000
2001
2002
2003
2004
Source: ABI 1998-2004.
Further consolidation in the industry is expected in the future. AeIGT report many
small aerospace companies in the UK becoming integrated into major trans-national
players. They suggest that SMEs will face particular pressures in this context as
many large companies are seeking to reduce their number of suppliers by up to
80%54.
Development of new technologies and techniques
The development of new technologies is an important driver for the aerospace
sector. Important trends occurring in the sector at the moment include increased use
of composite materials, a greater focus on systems engineering and the development
of smaller, lighter aircraft such as Unmanned Aerial Vehicles (UAVs). All these
changes have important implications for employees involved in aircraft design and
manufacturing.
51
House of Commons Trade and Industry Committee (2005), The UK Aerospace Industry (15th Report of Session
2004-05) HC 151-I, TSO.
52
ABI 2004.
53
UK Aerospace Industry Survey, SBAC, 2005.
54
An independent report on the future of the UK Aerospace Industry, AIGT, 2003.
Step Ahead Research
17
Aerospace Training South West
It is also likely that increasing customer and public concerns about aircraft emissions
will have an impact on technology used. AeIGT suggest that meeting customer
demand for environmentally friendly, high efficiency aircraft is likely to lead to a
requirement for new aircraft shapes (such as the Blended Wing Body), new materials
(such as lightweight composites) and new propulsion technology55.
The sector is also being driven by increased use of new working practices, following
principals such as Lean Manufacturing and Process Excellence. Lean Manufacturing
involves the continuous elimination of buffer stocks and indirect workers,
development of work teams capable of rotating jobs, synchronisation of products and
a built-in quality check56. Process Excellence takes this even further, encompassing
the whole product life cycle, not just manufacturing. It is defined as “the continuous
pursuit of perfection in all business processes, eliminating business failure and
removing non-value added activities”57.
It is estimated that some aerospace companies are already spending around 4% of
turnover on process change and improvement activities58. However, UK companies
have lagged behind their US rivals in their uptake of Lean Manufacturing Processes.
The importance of Lean skills and the skills of the indirect aerospace workforce is
explored further in Section 3.
Forecast future skills profile
The overall number of jobs in the aerospace sector nationally is forecast to decrease
between 2003 and 2010, declining by nearly one quarter (23%). However, this
decline will not be felt across all occupations, with employment growth forecast for
professionals (3%) and technicians (5%).
SEMTA predict that graduates will play an increasingly important role in the
aerospace industry over the next five years, with the proportion of graduates in the
workforce rising from 30% to nearly 50%. Further, they forecast that professionals
will make up 21% of the sector’s workforce in 2010, compared with less than 16% in
2003 (see Figure 2.8).
Figure 2.8: Employment by occupation – UK 2003 and 2010
30
2003
25
2010
%
20
15
10
5
Elementary
Operatives
Sales
Personal
service
Skilled trades
Clerical
Technicians
Professionals
Managers
0
Source: Sector Skills Agreement for the Electronics, Automotive and Aerospace Industries, SEMTA, 2005.
SEMTA’s Sector Skills Agreement also suggests that a greater proportion of the
55
Ibid
Sector Skills Agreement for the Electronics, Automotive and Aerospace Industries, SEMTA, 2005.
An independent report on the future of the UK Aerospace Industry, AIGT, 2003.
58
Ibid
56
57
Step Ahead Research
18
Aerospace Training South West
future aerospace workforce will need to be qualified to Level 3 or above to address
an increased need for innovation and work with new technologies. This suggests that
recruiting highly qualified individuals or able young people to the sector will become
an increasingly important issue.
In addition, aerospace employers will continue to have replacement demand for staff
to fill positions vacated by individuals leaving their jobs. SEMTA estimate that around
3% of the aerospace workforce will retire each year between 2003 and 2010. Total
replacement demand is likely to be even greater as these figures do not take account
of individuals leaving aerospace jobs for other reasons.
Step Ahead Research
19
Aerospace Training South West
3.0 Industry Leaders: views and attitudes
Interviews with senior staff in four large aerospace companies in the region were
carried out to provide a greater understanding of the challenges faced by the sector
and attitudes towards workforce development. The findings from these interviews
provide further support to the Sector Skills Agreement, as produced by SEMTA, and
the work of the aerospace Innovation and Growth Team. However, it is worth saying
that most of the senior staff interviewed for this study were unaware of and had no
contact with SEMTA, and had a limited understanding of the role of Sector Skills
Councils.
The four companies also share a number of common skills needs and have sought
similar solutions to these problems. In this Section, the views and attitudes of the
large companies are set out. However, no reference is made to the specific skills
needs or approaches to workforce development of any of the four companies.
Instead, this Section focuses on common challenges and common solutions. The
section also looks at the case for public intervention from the point of view of the
large aerospace companies.
Again, it should be noted that the views and attitudes of the large employers are not
necessarily representative of the sector as a whole, although they do represent a
significant proportion of the workforce. This study focused on the skills needs of four
large aerospace employers because of their initial approaches to SWRDA to help
them to address deep-seated challenges within the sector.
3.1
Skills needs
Skills shortages and recruitment difficulties
As outlined in Section 2, the aerospace sector in the South West is benefiting from
an upturn in orders. Three of the four companies interviewed for this study are
currently looking to expand their workforce. There was a feeling that the industry was
currently going through a period of expansion, with demand for skills “ramping up” to
peak levels due to aircraft such as the A400M, A350 and A380 going into production.
The concentration of aerospace companies in the South West was considered to be
both an advantage and a barrier. While the cluster of aerospace companies in the
region generates a larger “pool” of individuals with appropriate skills to draw on,
competition for these skills can be very fierce. Interviewees from all four companies
reported difficulties finding candidates with specialist technical skills, particularly
stress engineers, and individuals skilled in the use of composite materials. Other
technical skills mentioned as being in short supply include:




Design engineers
Aero-thermal engineers
Systems engineering/systems integration
Landing gears and fuel systems
It was felt that recruitment problems relating to specialist skills were a function of
technology changing at a faster pace than the skills of the workforce. Demand for
what were once minority skills is becoming more widespread. For example, the use
of composite materials is growing as these are now being used in more parts of
aircraft. However, a number of the interviewees acknowledged that their companies
Step Ahead Research
20
Aerospace Training South West
had not focused enough on training in the past and that they had not planned for the
growth and changes that they were now experiencing.
It would seem that the large companies have found it difficult to manage the cyclical
nature of the industry and the increasing focus on cost and value for money,
combined with more intense international competition. Such challenges are likely to
be even more stark for companies and SMEs further down the supply chain. It is
essential therefore that the current upturn in orders is used as an opportunity to
address skills needs of the existing workforce and the preparedness of the supply
chain.
Retention issues
While the aerospace workforce was generally considered to be loyal, with many
employees working for the same company for 20 years or more, all four companies
were reviewing their retention policies. Increased recruitment activity by some large
aerospace companies is seen by others to be very “aggressive”, encouraging them to
identify their ‘key’ workers and to review associated salary levels and benefit
packages. There was some concern that current recruitment campaigns will need to
target the workforce already within the South West, given the perceived high cost of
living in the region.
Among a number of interviewees, experienced young workers were felt to present
the greatest “danger” in terms of retention. There was felt to be a “buoyant market”
for these staff, with rival employers offering attractive packages that would encourage
them to move. Employees were considered to present less of a “retention risk” after
they had been with the company for 4-5 years as after this time they tend to “settle
down”.
In contrast to the Sector Skills Agreement, which suggests that 45% of the aerospace
workforce is aged 45 or older, only one company interviewed identified problems
associated with an ageing workforce. This company estimated that 30% of their staff
were due to retire over the next five years and suggested that, coupled with
recruitment needs to cope with growing orders, this would present a significant
challenge in the near future.
Skills gaps
When asked about the skills needs of their existing workforce, most interviewees
mentioned non-technical or non-engineering skills, such as leadership, team working,
logistics/procurement, supply chain management, as much as, if not more so, than
professional or technical skills. In this respect, it was unclear how proposed in-house
training centres would address this issue (see Section 3.3). Clearly, the skills needs
of the ‘indirect’ aerospace workforce are likely to be similar across large employers
as well as throughout the supply chain. Increased collaboration to address these
needs would seem appropriate, to avoid the duplication of effort and to help to bring
some stability in the level of demand for appropriate training courses.
Lessons can also be learnt from outside the aerospace sector, with suitable training
courses already likely to have been developed. The possible exception to this is
supply chain management, where the needs of aerospace sector are generally
considered to be different to other industry sectors. Aerospace is a “low volume, high
design” industry, with outsourced components having to be integrated across many
sub-systems and platforms. This is believed to make supply chain management more
challenging in the aerospace sector, especially when the global nature of the supply
chain is also taken into account.
Step Ahead Research
21
Aerospace Training South West
While it was predominantly raised as a ‘skills gap’ issue, interviewees from two of the
companies reported recruitment difficulties relating to non-engineering skills such as
procurement and supply chain management, especially at graduate level. This
problem was attributed by one interviewee to the negative image of the aerospace
sector among young people.
It was explained that UK aerospace companies are sometimes required to operate
“offsetting” arrangements, with overseas clients, whereby they must locate certain
functions in the client country. Ensuring that these arrangements operate in the most
efficient way possible also requires particular skills and knowledge.
In terms of engineers and the wider technical workforce, the large employers felt that
it was important for employees to have both dynamism and creative flair if the South
West aerospace sector was to remain competitive. There was considered to be a
need for more “movers and shakers” in the sector, combined with greater project
management skills to improve efficiency.
There was also some mention of a need for software or IT skills. In particular, there
was felt to be a need for skills allowing employees to make the most of IT packages,
for example in design, testing or procurement.
Some interviewees were dissatisfied with the skill levels of employees recruited direct
from full-time education or apprenticeship schemes. For example, it was suggested
that apprenticeship schemes should focus more on composites rather than metal.
The point was also raised that it is impossible to learn “experience” through Higher
Education. The use of “graduate training programmes”, to help graduates without
industry experience to adjust to the work environment, was felt to be a solution to
this.
Future skills needs
While, as acknowledged in the Sector Skills Agreement, the increased use of new
technologies and materials is likely to have a significant impact on the skills needs of
the sector, some employers did not want to over emphasize this point. It was
suggested that new aircraft going into production now would still be in service in 50
years time. As such, many of the skills needed to build and test these aircraft would
still be required for MRO activities over the lifetime of these aircraft.
One point of view was that while the nature of skills required might not change
significantly in the future, the way in which employees need to apply their skills might
be very different. For example, it was reported that timescales for the development of
new products are already becoming much shorter. A move towards more small, low
cost aircraft will involve staff using the same skills but they will have to learn to apply
them in a more agile and more commercial way.
One respondent believed that there was a need to marry future skills needs with
future product strategies, and that there should be a link between his company and
the LSC so that skills and products could match up. The brokerage element of ‘Train
to Gain’ could play an important role here.
Three out of the four aerospace companies mentioned that they are either
developing processes to analyse skill strengths and gaps or already have these in
place. Mechanisms include a “skills matrix” for each member of staff that links to the
appraisal system and a system of “skill owners”, responsible for managing workforce
demographics and highlighting problem areas or identifying emergent skill needs in a
specific skill area. An alternative approach involves a “competency framework”
Step Ahead Research
22
Aerospace Training South West
setting out the skills that each employee is expected to have, with the employee
being encouraged to assess their position in each skill area on a scale of 1-5.
Sharing the results of these processes with training providers could help providers to
better anticipate employers’ future skills needs. It is also possible that these
mechanisms could form the basis of examples of best practice that the larger
employers could share with their supply chain.
3.2
Response to skills needs
The four aerospace companies have taken a number of approaches to try to address
their skills needs. Together with the need to encourage retention, competition for
skilled staff has led to a “creep” in salaries and terms and conditions and at least one
employer is looking to offer a “scarce skills allowance” to critical staff.
While aggressive recruitment campaigns are not seen as sustainable or a solution to
deep seated challenges within the sector, short term pressures to fill vacancies or to
meet production targets take priority. Such activity however is likely to work against
increased collaboration within the sector, if there is an expectation that some
companies may look to “poach” staff.
However, there is evidence to suggest that employers are taking other approaches to
addressing skills needs, aside from simply raising salary levels. Interestingly, the
approaches reported by the different companies are very similar and can be divided
into two categories:
1. Alternative methods to try to recruit people with hard to find skills
2. Using training to create the skilled workers required
Recruitment alternatives
Difficulties finding sufficient numbers of staff with the required skills through “usual”
recruitment channels have prompted aerospace companies to take alternative
approaches. One example of this includes recruiting from abroad, with reports of
worldwide recruitment drives including roadshows in South Africa, Australia, China
and the Far East. Another interviewee said that they had taken on French and
German graduates and that these applicants were “head and shoulders” above their
UK counterparts.
One employer had also opened offices outside of the South West, including
elsewhere in the UK (the Midlands) and overseas (the US and Russia). In part, this
decision was influenced by skills shortages in the region and difficulties encountered
when seeking to encourage skilled individuals to relocate to the South West.
Sub-contracting or outsourcing more non-core activities, either to UK companies or
overseas, also helps to displace certain skills needs, and was generally expected to
increase in the future. This might involve contracting with companies to supply
finished products, to design packages or solve a specific design problem and/or to
supply labour to work on site. It was generally reported that outsourcing had
increased over recent years.
There are perceived advantages and drawbacks to the practice of sub-contracting.
The use of sub-contractors was felt to be a good way to deal with peaks and troughs
in demand without having to lay off employees during periods of decline. It was also
Step Ahead Research
23
Aerospace Training South West
reported that outsourcing to India and China is likely to increase for both cost
reasons and to allow 24 hour working. Alternatively, the use of sub-contractors just
as a source of additional labour was felt to be expensive and to have a negative
impact on permanent staff. In some cases however the large employers could not
solve hard-to-find skills through the use of sub-contractors.
Training
Each of the companies run in-house training programmes, send employees to
colleges of Further Education or institutions of Higher Education and/or use private
training providers. Those interviewed on behalf of the large employers tended to
have access to relatively significant training budgets and were prepared for
employees to spend time away from their job for training. Some companies also send
staff as far away as Europe or the United States to develop the specialist skills they
require.
However, some departments found it hard to release staff for long periods of time. It
was also reported by some interviewees that the training budget could be one of the
first things to be cut in hard times. While most respondents felt that training budgets
were increasing and that this was likely to continue; one interviewee felt the training
budget was an item that gets “attacked” each year.
A number of interviewees mentioned that their company or department was taking on
increasing numbers of apprentices and/or graduates and some stated that this was
because they could not find adequate numbers of fully trained and experienced adult
staff. In one company, the number of graduates recruited has doubled in the last
year. In order to try to recruit the best graduates and to try to improve leadership
skills, one employer reported that they had introduced a “graduate fast-track”
programme with high potential career paths, aimed at graduates likely to be the
professional leaders of the future.
Many of the respondents spoke about training or development “programmes” that
their companies had in place. In general, these can be characterised as programmes
that sit alongside the staff appraisal process to identify the skills employees have,
what skills they need to develop and the training required to address any “gaps”.
Interestingly, a number of interviewees mentioned plans to develop or improve their
training programmes in response to current recruitment or retention difficulties.
Training was seen as a way to create some of the skills required and also as a
method of encouraging already skilled employees to stay. It was felt that
management training could have a particular impact on retention as line managers
have a particular impact on younger staff.
Some interviewees raised the point that they aim to help unskilled or semi-skilled
workers to “broaden their horizons” and take on additional tasks and skills. One
company sought to develop semi-skilled workers; for example, by sending them to
night school, and revealed that a number of their senior executives had developed
their careers through a well structured vocational pathway. In many respects, the
aerospace sector would seem to have a lot to offer young people looking to develop
the career outside the HE route. The aerospace sector has a strong apprenticeship
tradition, and values the skills gained by professional staff that have advanced their
careers within the company.
However, it was felt that a “strong demarcation” between the roles carried out by
lower skilled employees could act as a barrier to their development. Trades unions in
Step Ahead Research
24
Aerospace Training South West
particular were felt to make “multi-skilling” of employees difficult 59. Comments were
also made to suggest that higher skilled staff, such as engineers, could also become
“too specialised” in their roles. Lean manufacturing requires an increased focus on
team working and multi-tasking across all levels of the workforce.
The interviews suggest that the aerospace companies are most likely to use in-house
training or to make use of private training providers or universities. Employers
reported working with universities located both within the South West (including
Bristol, Bath and Gloucester) and elsewhere in the UK, particularly Cranfield and the
University of Warwick. Some respondents also had links with these institutions
through research and technology programmes.
In some cases, the companies engaged with the universities or private training
providers to design a training programme aimed at all staff. “Off the shelf” training
was often considered to be inappropriate, with the training required to reflect the
particular needs of the company. The University of Warwick was identified as an
example of a provider that was good at tailoring its courses to the needs of
companies.
Further Education colleges and the LSC were often seen as being slow to respond or
unable to understand employers’ needs. For example, one interviewee recalled an
instance when they were told by a college that there would be a wait of 6-9 months
before courses could be put together. They then enquired to a college based in the
North of England, which was able to fly staff to the South West to teach the course.
The large employers appeared to rely on personal knowledge of university
departments and lecturers in choosing suitable education and training provision. In
some cases, interviewees, or members of their team, acted as guest lecturers with
their preferred HE institutions. These links are likely to have been developed through
collaboration on R&D programmes.
As will be discussed in Section 4, colleges struggle to engage and maintain
relationships with employers, both large and small. Attitudes of employers towards
colleges are unlikely to help here, which seem to be influenced by the perceived
inflexibility of FE provision.
3.3
Requests for public sector support
As outlined at the beginning of this report, all four employers had approached
SWRDA to discuss the possibility of working together with the public sector on
initiatives to address skills needs in the sector. As such, one of the objectives of the
study was to investigate the case for public support for one or more employer-led
training centre.
However, the interviewees revealed that planning for these centres was at an early
stage. In most cases, the proposed training centres had not got beyond a preliminary
scoping stage, and none could give a clear indication of learner numbers and/or the
type of training to be provided. Proposals to open the employer training centres to the
wider aerospace workforce and supply chain companies were also not well
advanced, although the importance of addressing the sector’s skills needs as a
whole was recognised. In looking at the case for public intervention, more work is
We only have the employer’s point of view on this issue as interviews with trade unions were not within the scope
of the study.
59
Step Ahead Research
25
Aerospace Training South West
required to investigate the need not only to re-skill or up-skill the existing workforce,
but also to attract new entrants to the sector.
The companies are prepared to contribute significant resources to realise their ideas,
but feel that a greater benefit could be gained if they were to receive public support in
certain areas. In most cases, the employers suggested that funding could be used for
some kind of skills centre or centre of excellence, revealing that they had large sites
available to them where a centre could be located.
There is also some common ground in the objectives of the proposed training
centres, which, in addition to helping to increase the supply of skilled individuals,
include:



Improving the image of the sector
Improving the relationship between the industry and education providers
Spreading best practice to the supply chain
Improving the image of the sector
Most interviewees felt that their company was able to recruit “the best” graduates
and/or apprentices available. However, one interviewee raised concerns about the
“calibre” of graduate applicants. He felt that there was a lack of interest in the sector
among young people, who did not see it as offering “high flying” careers.
The decline of Science, Engineering and Technology subjects in schools and
universities will continue to shrink the potential pool of young people entering the
sector, while demand for mathematics skills will increase from other advanced
engineering sectors as well as service-based sectors, such as finance and business
services. As such, the need to improve the image of the sector is essential to ensure
the flow of new people into the sector, especially among women.
A number of respondents believe that there is a need to target children below school
leaving age to try to change their perceptions of the industry. It was suggested that a
skills centre could be made open to school pupils from the age of 14 in order to get
them interested in aerospace. Other companies would like to engage with school
children at a much younger age, before decisions are taken about which GCSEs to
study.
The need to engage parents and to change their perceptions of the industry was also
raised, given their role in helping their children to select subjects in Year 11. A similar
argument was also made with regard to teachers and careers advisers, with
employers concerned that their knowledge of the sector was out of date. Employers
also suggested that young people were pressured into following a GSE ‘A’ level and
HE route, with limited information given to high calibre students about vocational
pathways in aerospace.
Improving the relationship between the industry and education providers
It was felt by one company that a training centre could help to “bridge the gap”
between schools and industry, especially in terms of developing the basic or core
skills of potential apprentices. The same employer also noted that while they took on
many apprentices, graduates and Year in Industry students, their relationship with
schools, colleges and universities was not joined-up. It was seen as difficult and time
consuming for employers to engage with different schools, colleges and universities.
Improving the relationship that some providers have with each other was also felt to
be important. One respondent felt that local schools see colleges as “enemies” and
Step Ahead Research
26
Aerospace Training South West
want to keep good students for themselves. He therefore felt that there was a role for
industry and/or other stakeholders to take the lead in collaboration where these two
types of institution were involved.
Spreading best practice to the supply chain
The increased focus on lean manufacturing, together with increased competition from
overseas, has placed greater emphasis on the capabilities of the supply chain as a
whole. Large aerospace employers need to help suppliers and sub-contractors to upskill in order to achieve increasing quality and efficiency standards.
However, there was concern that many suppliers have yet to grasp the need to use
new technology. One employer outlined how supply chain companies need to be
supported with access to facilities and skills development if this change is to occur.
The move towards an increased use of composite materials is seen as particularly
challenging for companies lower down the supply chain.
Large aerospace employers were felt to have an important role to play as “leaders”
within the sector. It was reported by one company that they had significantly reduced
the number of suppliers in order to work more closely with “core” strategic partners.
These core partners will be helped to become more “process capable” and, as such,
would be expected to use the in-house training centre.
It was suggested that because the supply chain used by aerospace employers is
very diverse, a skills centre could cover a wide range of skills. As both manufacturing
and non-manufacturing companies supply the aerospace sector, both technical
manufacturing or engineering skills and other more generic skills could be included.
3.4
Attitudes towards collaboration
In general, the large aerospace employers have a positive attitude towards
collaboration with other companies and with the public sector. The only limitations to
collaboration mentioned related to work in the defence industries or the need to
protect intellectual property rights. However, current collaborative relationships have
been built around R&D programmes (such as the DTI’s Technology Programmes or
the EU’s Framework 6 programme), with little or no effective cooperation on training
and workforce development. One company regarded current industry collaboration
as “piecemeal”, taking place only on a product-by-product basis.
This is in spite of numerous cross-industry committees or working groups that have
been looking at the skills challenges facing the sector. While many large aerospace
employers have been actively involved in or consulted on the SEMTA Sector Skills
Agreement, the AeIGT People Management Board and/or the SBAC Skills and
People Management Board, none of the large companies interviewed for this study
could point to any significant examples of cross-industry collaboration on training
within the South West. It would seem that these types of relationships, to be
developed and sustained, require a catalyst, similar to that provided by government
and/or EU funding for R&D programmes.
Skills brokers may be able to undertake a key role with regard to fostering industry
collaboration on skills and training. Helping companies to cooperate among
themselves and with education and training providers should be a central objective of
skills brokerage within the region. However, one interviewee acknowledged that the
aerospace industry has not so far made a “clear pitch” to the RDA or other
Step Ahead Research
27
Aerospace Training South West
stakeholders. He felt that the industry did not know how to engage and that there was
no “strategic vision” for the sector in the South West, with companies instead focused
on one-off issues.
Step Ahead Research
28
Aerospace Training South West
4.0 Aerospace Training in the South West
This section looks at training provision currently available in the South West for the
aerospace sector, drawing on LSC Individualised Learner Records (ILR) data and
interviews undertaken with 11 education and training providers in the region. The
interviews helped to build a broad picture of current and planned aerospace provision
in the South West and providers’ experiences of engaging with employers. Interviews
were conducted with three private training providers, five Further Education (FE)
colleges or Centres of Vocational Excellences (CoVEs) and three Higher Education
(HE) institutions.
4.1
Overview of FE and WBL in the South West
In 2003/04, there were 252 enrolments on FE aerospace-specific courses in the
South West and 102 via work-based learning. These figures relate to the number of
qualifications studied, not the number of learners as it is possible for a learner to
enrol on more than one course. However, using enrolments as an indication of
learner numbers, we can estimate that this relates to around two thirds (64%) of the
new entrants required to replace workers leaving the sector each year through
retirement60.
This might suggest that there is not a problem with the number of new entrants
seeking to take up employment in the sector, especially when you include graduate
level entrants. However, this broad analysis over-estimates the number of learners
achieving their qualification and deciding to take up employment in the sector, while
under-estimates the extent of Replacement Demand (which should take into account
people leaving the sector for other jobs and other reasons, other than just through
retirement). It is not possible to measure precisely workforce flows into and out of the
aerospace sector in the South West, in part because many new entrants to the sector
do not require an aerospace-specific qualification.
Figure 4.1: Aerospace FE and WBL Provision in the South West (2003/04)
Other
21%
Aircraft Maintenance
Licence
25%
NVQ in Aeronautical
Engineering/ NVQ in
Aircraft Engineering
Maintenance
21%
National Certificate in
Aerospace
Engineering/
Engineering
(Aerospace Studies)
21%
HNC/ HND Aerospace
Engineering/
Engineering
(Aerospace Studies)
12%
Source: IRL 2003-04 FO5, SW LSC.
Figure 4.1 shows that a quarter of FE and WBL qualifications relate to the Aircraft
Maintenance Licence for either mechanics or technicians. HNCs or HNDs in
60
Based on SEMTA annual retirement estimate of 2.8% (554 retirements per year).
Step Ahead Research
29
Aerospace Training South West
Aerospace Engineering or Engineering (Aerospace Studies) account for a further
20% of courses studied, with a similar proportion undertaking aerospace-related
NVQs.
Aerospace employers in the sector are also likely to have an interest in provision
relating to broader subject areas. Figure 4.2 shows that in 2003-04, 10,500
qualifications related to Engineering, Technology and Manufacturing were gained by
students attending FE colleges (8,290) and via work based learning (2,253). An
additional 18,495 FE qualifications were gained in Science and Mathematics. It
should be noted that GCSE and ‘A’ level students account for a large proportion of
these learners.
Figure 4.2: Achievements in selected subject areas – South West 2003-04
Subject area
Engineering, Technology & Manufacturing
(Further Education)
Science & Mathematics
(Further Education)
Engineering, Technology & Manufacturing
(Work Based Learning)
Number of
achievements
8,290
18,495
2,253
Source: ILR AIMS 2003-04 FO5, SW LSC.
Qualifications gained in Engineering, Technology and Manufacturing, and Science
and Mathematics are more likely to be at higher levels than those across all subject
areas. In FE, 45% of qualifications gained in Science and Mathematics and 30% of
those gained in Engineering, Technology and Manufacturing were at Level 3 or
above, compared with 22% across all FE subjects. This difference is less marked in
qualifications gained through WBL, with 41% of Engineering, Technology and
Manufacturing qualifications at Level 3 or above compared with an average of 30%
for all subjects.
Figure 4.3: Qualifications achieved by level – South West 2003-04
Engineering, Technology &
Manaufacturing (FE)
Science & Mathematics (FE)
Level 1 or below
Level 2
All FE
Level 3
Level 4 +
Engineering, Technology &
Manaufacturing (WBL)
All WBL
0%
20%
40%
60%
80%
100%
Source: IRL AIMS 2003-04 FO5, SW LSC.
There is a lack of diversity among the students taking Engineering, Technology and
Manufacturing courses. In FE, 91% of learners are male and 88% reported their
ethnicity to be “white British”. Within work based learning, the corresponding figures
were 98% and 97% respectively.
Step Ahead Research
30
Aerospace Training South West
Information and Communications Technology (ICT) qualifications are not included in
the above analysis due to the general nature of many of these courses, especially at
Level 2 or below. However, ICT skills are important in the aerospace sector. More
than 63,000 ICT qualifications were achieved through FE or WBL in the South West
in 2003-04, of which 4,000 were at Level 3 or above.
4.2
The providers’ perspective
The remainder of this section summarises the current and planned aerospace offer
from external training providers in the South West. Our work suggests that there is a
broad range of aerospace provision currently available in the region, covering many
different aspects of the sector. Provision is also available at all levels, ranging from
low level courses for those with few or no prior qualifications to specialist PHD
programmes.
We have broken down the provision, based on who it is aimed at (i.e. new entrants or
established staff), mode of delivery (full-time education or work-based) and level of
study. Education and training providers commented that aerospace employers are
interested in aerospace-specific training courses, as well as more general
engineering or electronics courses and/or more generic courses (e.g. management
or leadership skills).
Figure 4.4 outlines the number of learners on aerospace-related courses, as stated
by the education and training providers interviewed for this study. As such, the
findings can only be viewed as an indication of the aerospace provision available in
the region for a number of reasons:
1. It only relates to the training providers we interviewed
2. It is based on respondents’ estimates of learner numbers
3. The estimates for different courses cannot be added together as respondents
gave the number of learners in different ways. For example, some stated the
number starting the course each year while others gave the total number of
learners across all years.
Step Ahead Research
31
Aerospace Training South West
Figure 4.4: Courses reported by interview respondents
Aerospace-specific courses
Provider
Bournemouth and Poole
College
Bournemouth and Poole
College
Course
Learner numbers
Aerospace NVQs
12 full-time students
Apprentices within aerospace
companies
15 full-time apprentices
Airbus Apprenticeship scheme
20 full-time first year students, 12
second year students on dayrelease
Bristol & Filton Aerospace
CoVE
Bristol & Filton Aerospace
CoVE
Aircraft maintenance technician
training
100 students across all years
Airline industry short courses
Usually around 100
Filton College
Aerospace HNC
Yeovil College
Honeywell WBL
Brunel Training Group
Aerospace-related programmes
Bristol & Filton Aerospace
CoVE
University of Bristol
Advanced Apprenticeship in
Aircraft Engineering Maintenance
Mechanical Engineering
(aerospace stream)
Aerospace Engineering Foundation
Degree
MEng in Aeronautics
University of Bristol
MEng/BEng in Avionics
University of Bristol
University of Bristol
Part-time modular CPD scheme
Full-time aerospace PHDs
Serco Aerospace Ltd
University of Bath
University of Bournemouth
14 people are currently following
this course
Around 100-120 learners at any
one time
Nearly 100 apprentices in the
aerospace supply chain and
around 400 adults on aerospacerelated programmes
20 apprentices
Around 70 starters each year
14 students
70 per year
10 (Mostly Masters’ courses but
some are doing Bachelor’s
degrees).
180 students
50 students
Other advanced engineering courses
Provider
Bristol & Filton Aerospace
CoVE
Gloucester College of Art and
Technology
Yeovil College
University of Bath
University of Bristol
Course
Mechanical Engineering
Foundation Degree
Advanced Engineering
HNC
Performing Engineering
Operations
Mechanical Engineering
MEng (excluding
aerospace stream)
Learner numbers
Mechanical Engineering
70-80 students
40 students complete per year
40 students in Years 1 and 2
17-18 trainees per year
Around 130 starters each year
4.2.1 Training for new entrants
While not all learners on aerospace-related courses will take up work in the industry,
this provision is very important in ensuring that there is a supply of qualified people
able to work in aerospace. Training providers report significant involvement by larger
aerospace employers in provision of this kind, either as employers of apprentices or
as strategic partners with an interest in course content and in recruiting students who
Step Ahead Research
32
Aerospace Training South West
complete the course.
Full-time Further Education courses
To gain an aerospace qualification, potential new entrants to the sector can either
study through full-time FE provision or take a work-based apprenticeship route. An
example of one provider’s mechanism for preparing full-time students for the reality
of work in the industry is set out in Case Study 1.
Case Study 1: City of Bristol College – Maintenance Technician Training
City of Bristol College offers maintenance technician training towards the official
qualification required by the European Aviation Authority and currently has around
100 learners undertaking this training.
The college delivers the courses and examines the students. At the end of their
training, students do a placement in industry with a company such as British Airways
or Monarch Airlines. The curriculum and syllabus for the course is centralised across
Europe and requires students to receive 2,400 hours of theory teaching, spend 40%
of their training getting hands-on practice on aircraft systems and complete 12 weeks
of industry placement.
Once qualified, students can work for airlines, airports or flying clubs, because they
are licensed to work on radio systems, radar systems, engines etc. They may also
find employment with aerospace manufacturing companies.
However, another college commented that the process for establishing work
placements for students and the college timetable was currently not sufficiently
flexible for these arrangements to proceed as smoothly as they could. The LSC in the
West of England has identified problems with the efficiency of the apprenticeship
system, with insufficient alignment of learner aims, employer needs and available
provision. The LSC West of England has been piloting ‘PLAN-IT’, a web based tool to
join up more effectively learners, employers and providers. The LSC believes that
this pilot has been successful, and the LSC nationally is looking to roll-out a similar
system across all LSC areas.
Apprenticeships
The aim of apprenticeships is to allow learners to gain skills in a work environment at
the same time as working towards a qualification. In order to gain a full
apprenticeship qualification, a student must successfully complete a “framework”
qualification, which includes an NVQ as well as a key skills elements and a technical
certificate. However, some learners leave apprenticeship courses having achieved
the NVQ element only. Across all apprenticeships nationally in 2003/04, only 24% of
all those starting the course gained the full framework qualification. Around 13%
gained an NVQ only, meaning that over 60% of starters did not receive a qualification
of any kind61.
The majority of apprenticeship programmes are for young people aged under 21 and
in some cases under 24. Adult Apprenticeship programmes are currently being
piloted in engineering, construction and health and social care in nine LSC areas.
1,300 adults are currently engaged in these pilots and are expected to complete their
apprenticeships in 200762. As part of the National Skills Strategy, national
61
62
Further Education and Work Based Learning for Young People – Learner Outcomes in England 2003/04, LSC.
Third Age Employment Network website – www.taen.org.uk/news/archieve/mar2005.htm
Step Ahead Research
33
Aerospace Training South West
government sets out its intention to provide more opportunities for adults wanting to
gain technician, advanced craft, skilled trade and associate professional
qualifications at Level 3, including through adult apprenticeships63.
Apprenticeships are currently being delivered to the large aerospace employers,
including Airbus, Honeywell, Rolls Royce and Westland Helicopters, as well as for
companies in the aerospace supply chain. In terms of relationships with employers,
one provider had been asked by one large employer to customise the apprenticeship
programme for them. This employer is happy to be involved in parents’ evenings and
strategy meetings, and has developed a close relationship with the provider.
However, some providers felt that employer involvement could be improved. For
example one college reported that they would like to see employers acting more like
“partners” and taking more of an interest, rather just sending students to the college
with no further involvement. There is also evidence to suggest that universities feel
that employer involvement could reach a deeper level.
The apprentice scheme run by Serco Aerospace shows that it is possible for
schemes of this kind to be run by companies other than the largest South West
aerospace employers. More details are shown in Case Study 2:
Case Study 2: The Serco Aerospace Apprenticeship Scheme
Serco is a private company with around 600 employees. It has a Ministry of Defence
contract for aircraft engineering for the Royal Navy.
The company also runs an apprentice scheme that is recognised by the Adult
Learning Inspectorate (ALI) and the Learning and Skills Council (LSC). This scheme
was started in November 2001 and they currently have around 20 apprentices who
are Serco employees. In their first year, apprentices are trained entirely by Serco.
They then do a two year City and Guilds qualification through day release at Yeovil
College. Serco plan to take on 4-5 new apprentices every year.
Serco has a staff of four instructors who all have jobs elsewhere in the company as
well as their training responsibilities. The company started the training programme
entirely from scratch in response to difficulties recruiting trained staff. The first
apprentices are expected to become fully qualified with an Advanced Apprenticeship
in Engineering Maintenance in summer 2006.
No employees have completed the Serco scheme so far as it was only started in
2001 and there were some “teething problems” meaning the first apprenticeships will
study for a longer period than normal.
Most of the Case Studies outlined in this section relate to relatively new schemes or
those currently in development. It is likely that this reflects the under-investment in
training in the past reported by some employers and the length of time involved in
developing courses to meet employers’ needs.
63
HM Government, Skills: Getting on in business, getting on at work, 2005.
Step Ahead Research
34
Aerospace Training South West
Foundation Degrees and HNCs
Foundation Degrees are vocational Higher Education qualifications at a level
equivalent to NVQ 3-464. They aim to integrate academic and work based learning
through close collaboration between employers, universities and Further Education
colleges. While a Foundation Degree is a valuable qualification in its own right, those
gaining the qualification can also progress to a full honours degree through further
study, usually for around one year.
Higher National Certificates (HNCs) are qualifications at a similar level to Foundation
Degrees and can be studied either full or part-time. Completion of a HNC allows
entry onto the second year of an honours degree65.
There are a number of aerospace Foundation Degrees and HNCs currently available
in the South West and more are planned for the future. Examples of current provision
include:
 City of Bristol College’s Foundation Degrees in Mechanical Engineering (in
conjunction with the University of Plymouth) and Aerospace (with Kingston
University)

Yeovil College’s HNC in Aerospace Engineering delivered to remote sites for the
Army, Navy and RAF

Filton College’s HNC delivered for Airbus
In addition, the University of Bournemouth is looking to provide Foundation Degrees
in Avionics, Avionics Maintenance and Aerospace Maintenance.
One of the government’s aims for Foundation Degrees is to provide a natural
progression route from apprenticeships to higher education and there are plans to
establish a smooth route of this kind to full degree level for employees of Westland
Helicopters in the near future. Further details of the work in progress to establish this
route are given in Case Study 3.
Case Study 3: Progression for Westland Helicopters employees
The University of Bournemouth offers a two-year Foundation Degree in Aerospace
Engineering delivered at Yeovil College, aimed at learners who have completed
apprenticeship training with Westland Helicopters or their supply chain. The
university is currently working to develop a “top-up” route to allow these students to
progress to a full BSc honours degree.
The degree is intended to have a large work-based element and will involve the
students doing a workplace project alongside a management element delivered by
university staff. The course is intended to be ready for when the current Foundation
Degree students finish so that it will form a natural progression route for them.
Course development is being funded by the LSC European Social Fund (ESF) Cofinancing. The university were prompted to bid for the funding in response to the
findings of an RDA study on employer demand.
While it is aimed primarily at apprentices at the moment, it is thought that this route
could appeal to individuals who leave school after ‘A’ Levels who want to get a job
with future development opportunities, rather than going to straight to university.
However, the opportunities for this to occur could be limited if the scheme is not
64
65
NVQ Level 3 is equal to 2 or more A Levels, NVQ Level 4 is equivalent to first degree level.
Source: www.aimhigher.ac.uk/courses/choosing_courses/levels_of_course.cfm
Step Ahead Research
35
Aerospace Training South West
taken up by more employers. Although the Foundation Degree is intended to be
relevant to supply chain companies, only Westland employees have taken part so
far. However, it is unclear how relevant the course is to the supply chain and to what
extent it has been promoted to them. With regard to specialist provision, it can be
difficult for providers to promote the course to other employers. A skills broker could
play an important role here by helping to “match” companies with specialised needs
with suitable training providers.
Full degree level and above
As part of the study, interviews were conducted with the University of Bath, the
University of Bristol and the University of Bournemouth, all of which are major
providers of Higher Education aerospace training.
The University of Bath reports that its Mechanical Engineering MEng programme is
growing in popularity. Currently, around 200 students join this programme each year,
compared with around 150 five years ago. The number of staff working in the
department has also grown. Of all the students starting the programme, around a
third specialise in aerospace in their third year.
Reports from the University of Bristol suggest that there is a disparity in the popularity
of its Aeronautics and Avionics courses. Aeronautics includes the study of fluids and
thermodynamics, structures and materials, aerodynamics and flight mechanics.
Avionics involves more study of computer systems, software engineering, electronics
and digital systems. Around 70 students enrol on the university’s MEng in
Aeronautics each year but there are only around 10 students studying Avionics at
either Bachelors or Masters Degree level.
The university has the capacity to take on as many students in Avionics as in
Aeronautics and there is a very strong demand from industry for avionics skills.
However, there has been no expansion in learner numbers so far because of a lack
of interest in avionics as a career among potential new entrants. It was felt that this
was because of a lack of awareness among the general public that avionics even
exists as a subject or a career.
The University of Bristol also has 50 students doing full time PHDs related to
aerospace. These programmes usually involve a student investigating a particular
research area for an aerospace company.
4.2.2 Training for the established workforce
While training for new entrants is important, established members of the aerospace
workforce also need training provision to help them to improve or update their skills.
For example, they may require training to progress to higher roles, update their
knowledge, learn about new technologies or techniques or gain new generic skills
such as management or leadership.
Set out below are a few examples of provision targeted at the existing workforce
through short courses, NVQs for adults and higher level training.
Short courses
City of Bristol College’s Aeronautical Engineering Centre provides short courses for
the airline industry lasting for around 6 months to up-skill or re-skill their employees.
These courses are designed to be flexible and there are normally around 100
learners on courses of this kind.
Step Ahead Research
36
Aerospace Training South West
Yeovil College is currently delivering composites skills training to aerospace
businesses. This training includes composite assembly (which has been delivered to
Airbus) and composite repair. It is considered to have been very successful so far
and is expected to be a growth area in the future. The University of Bournemouth
also works with employers to deliver short project management courses.
NVQs for adults
Brunel Training Group’s offer to adults includes Business Improvement Techniques
courses, which are currently being studied by around 50 Airbus employees, and
NVQs. Brunel estimate that around 400 adults are currently studying aerospace
related programmes of some kind across all skill levels.
Brunel Training Group offers courses at NVQ Levels 2, 3 and 4 to adult learners but
the majority employed in operator roles and are studying at Level 2. The training
covers a wide range of skill areas including machining and electronics. They are
usually assessed in their workplace and interact with their trainer on a one-to-one
basis.
Higher level training
Gloucester College of Art and Technology report that they often deliver short, specific
advanced engineering courses at employers’ premises. As outlined above, HNC
courses can be studied either full or part-time. Learners doing Gloucester College’s
HNC in Advanced Engineering are generally mature, already working for and
sponsored by their employer. This HNC includes some of the skills needed to work
as an aerospace engineer and is therefore good preparation for an aerospace
degree. There are normally 40 HNC students of this kind in total across the first and
second years.
The University of Bristol has designed an innovative scheme to encourage continuing
professional development at higher skill levels. The programme was developed to
allow individuals to study up to Level 5 without having to return to full-time education.
The university report that the programme is strongly supported by the biggest
aerospace companies such as Airbus and Rolls Royce, but that there has been
virtually no involvement from SMEs.
Step Ahead Research
37
Aerospace Training South West
Case Study 4: The University of Bristol’s Modular Continuing Professional
Development Scheme
Currently around 180 individuals are undertaking continuing professional
development with the University of Bristol as part of a part-time, modular scheme.
This scheme allows learners to undertake intensive week-long courses and build up
these courses to gain a qualification.
Participants can attend for just one week if they wish or they can increase their
knowledge with more sessions to gain a certificate, a diploma, an MSc or even a
doctorate, depending on the number of weeks they attend.
Under the scheme, learners do not need to decide in advance which qualification
they will work towards. Every time they attend one of the week-long sessions they
receive credits and if they get enough credits they are awarded a qualification.
The programme is aimed at employees who have been in industry for a while who
wish to develop their skills as industry experience is needed to benefit fully from the
sessions. Participants are normally in their early 30s and usually have an
undergraduate degree or HND as well as 5-10 years of experience.
4.3
Future developments
As well as plans to develop provision and offer additional courses, such as the new
Foundation Degrees outlined above, a number of training providers in the South
West have plans that could have a significant impact on the aerospace provision
available in the future. A number of providers reported that they wished to avoid
“duplication” of their plans by other providers or by the creation of a “Skills Academy”
for the region.
These future plans are currently at different stages of development. For example,
Paragon ITE Training Group is currently building a new, fully equipped, engineering
centre. The centre will have capacity for 440 learners and is due to be opened in July
2006.
In contrast, Bournemouth and Poole College are planning a more general centre,
designed to be a one-stop shop for the aerospace industry with links to local schools.
Their aim is to develop a strategic relationship with other colleges, Higher Education
providers and industry to allow open access to the centre. They have already had
discussions with some other providers and aim to convene a steering group. The
college would like the centre to be a model of partnership working and is currently
seeking LSC/RDA support. It is envisaged that the centre will open in 2007.
Another project currently at an early stage of development is Bristol College’s plan to
develop a composites’ workshop. There is money set aside in the Aeronautical
Engineering Centre’s budget for materials and equipment to be used in the workshop
but funding for a building is also required. The college is currently looking into
possible sources of funding for this development.
Gloucester College has recently submitted a bid to become a CoVE (Centre of
Vocational Excellence) for Advanced Engineering. If this bid is successful, the
college will be able to offer Foundation Degrees and a greater number of specialist
Step Ahead Research
38
Aerospace Training South West
courses. The college is particularly keen to develop in this area as there are currently
no colleges or universities in Gloucestershire offering a degree in Engineering. A
similar situation was reported in Dorset.
Clearly, there is a need to look at the potential number of learners for each of these
developments in isolation and together, as well as in relation to the plans of the large
aerospace employers. Without a clear vision of the level and type of provision that is
required there is a real danger of duplication and over-provision, with limited account
being taken of the cyclical nature of the sector.
4.4
Barriers and issues
Training providers interviewed reported a number of issues that they felt represented
a barrier to developing their aerospace provision. These include:

Engaging employers

Fluctuations in demand for training

Diversity and quality of entrants

Equipment: pace of development
Engaging employers
There was a general feeling among the providers interviewed that relationships with
both large and small employers could be improved. A number of providers would like
to work more with smaller employers but this was felt to be very difficult due to the
limited time that small companies have for training. In terms of large employers, there
was a feeling that large employers could do more to get involved and that it would
benefit the employers to make this change.
Among most providers, employer contact resulted from a mixture of being
approached by employers and making approaches themselves. However, providers
appear to face difficulties making as many pro-active contacts with employers as they
might like. One problem was that, with large organisations in particular, it was often
difficult to know “the right person to speak to” if they wished to approach them. Again,
this could be a role for skills brokers.
Engagement between providers and employer bodies such as SEMTA and WEAF is
quite common. However, the providers also value direct involvement from individual
employers. Asking employers what they would like to see included in training
provision is not seen by providers as the most effective way of ensuring that courses
reflect industry needs. Several providers sought to maximise the overlap between
teaching and other activities, such as consultancy or research, to help to keep
courses up to date.
Knowledge Transfer Partnerships were seen as a good way to start a relationship
with an employer; for example, with the provider delivering more specialised courses
or the employer becoming involved in curriculum development. One provider who
had worked on Foundation Degree development with employer involvement had
developed a productive relationship by putting forward ideas and testing how
companies react to them, rather than just asking a broad question such as “what
would you like to see included?”.
Step Ahead Research
39
Aerospace Training South West
The Marine Skills Centre Network was identified as an example of best practice by
several interviewees. Further details of this training centre are set out in Case Study
5. One respondent mentioned that they were particularly interested in the way that
the Marine Centre started out with a large company playing a major role but how,
over time, this relationship changed and the major role is now played by supply chain
companies.
In addition, some of the marine centre’s resources could be relevant to the
aerospace sector. One interviewee estimated that around 80% of the equipment in
the Marine Centre could be useful to aerospace. He took the example of electronics
and explained that for both aerospace and marine, the basic principles are the same,
it’s just that in aerospace pressure becomes more of an issue and with marine there
is more of a need for waterproofing.
Case Study 5: The Marine Skills Centre Network
The Poole Marine Skills Centre was opened in March 2005. The Centre is funded by
SWRDA in conjunction with Marine South West, ITE Training Ltd and Sunseeker
International (a large employer in the marine sector). It offers City and Guilds
qualifications achieved through a mixture of classroom study, vocational teaching
and assessments. There are also possibilities to gain other qualifications and
industry recognised awards.
Marine Skills Centres are due to open in Plymouth and Falmouth in 2006 and the
three centres will work together to develop courses and qualifications tailored to meet
the needs of the sector. They will also share resources and good practice.
Source: SWRDA website – www.southwestrda.org.uk and Marine South West website www.marine-southwest.org.uk
Some providers commented that they would like their teaching staff to have more
industry experience. Several Further Education institutions seek to recruit staff with
experience gained in the industry and then train them to teach. Secondments to
industry for teaching staff, allowing them to gain experience or to keep their
knowledge up to date, also appear quite widespread among aerospace providers.
These secondments are usually with large aerospace employers. However, they
usually involve ad hoc rather than systematic arrangements. In addition, resource
issues mean that providers cannot always arrange as many secondments as they
might like.
In contrast to the views of many other providers, in particular those providing FE
training, one Higher Education provider reported that they felt that an academic or
research background was more important in their staff than industry experience. It
was felt that entrants from industry would not have the right experience for research
but that individuals undertaking research would be aware of the latest techniques in
their area of expertise, allowing them to pass this knowledge onto their students.
Two HE institutions mentioned using outside trainers or lecturers to work with their
students, for example from aerospace companies or government bodies. This
approach was felt to provide an important link between training and industry and to
ensure that this teaching was always up to date.
Fluctuations in demand for training
Fluctuating demand for aerospace training appears to be an important issue for a
number of training providers. This is particularly true of changes in employers’
requirements for training places for their staff. Providers acknowledge the general
Step Ahead Research
40
Aerospace Training South West
effects of the cyclical nature of the sector but also mention that if they have a very
close relationship with certain employers, this can have a particularly significant
impact.
Until recently, one provider was contracted to deliver apprenticeship training for a
large aerospace employer and at one point were training 20 apprentices for them.
However, the company has since decided to use another provider so there is now
only one learner on aerospace-related training. In contrast, another respondent was
approached by a company wanting apprenticeship training to start in September just
three weeks before the start of term. It was difficult to get this training arranged on
time and the respondent commented that he would like to see some kind of system in
place to stop this happening again.
Similar views were shared by other providers, with comments that just because an
employer puts people through learning one year there is no guarantee that they will
put the same number of people or even anyone at all through the next year. This was
felt to be a particular issue for very specialist aerospace training. There was a call for
aerospace employers to help providers to understand their business plans for the
next 5-10 years to enable them to prepare in advance for future developments.
In general, providers appear willing to try to respond to employer needs but can find it
hard to do this without a “critical mass” or diversity of demand. These problems could
be eased by a skills broker able to bring the demands of different employers together
and to put them in touch with a provider who can meet their needs.
Diversity and quality of entrants
Attracting bright new entrants of both genders appears to be an important issue for
some providers of aerospace training. Providers have tried a range of different
approaches to try to encourage more female students in particular to join aerospace
courses but reveal that none of these methods have had a significant impact. A
similar situation has been experienced with respect to promoting less popular
elements of aerospace, such as avionics.
Providers called for help with these problems as the factors involved relate to farreaching issues that cannot be addressed by one organisation working in isolation.
Interviewees would like to see employers and the public sector taking on more of a
role in this area. For example, it was suggested that employers could help to make
avionics more attractive by sponsoring students taking these courses. This was felt to
be necessary to compete with other career paths, for example financial services,
where similar skills are required and employers are already starting to sponsor
students to influence their career choice.
It is predicted that schemes of this kind will grow in importance as universities are
given the flexibility to increase tuition fees to up to £3,000 from the start of the next
academic year and undergraduates can already expect to owe an average of £9,692
by the end of their course in student loans, overdrafts and credit cards. One
engineering company currently providing sponsorship opportunities is JCB. They
offer funding of £2,000 a year to undergraduates who have completed the first year
of an engineering degree. Sponsored students are expected to work for the company
during their placement year and during the holidays and may be offered a 12 month
contract at the end of their course66.
Providers also commented on the role of the school system in preparing young
66
Industry offers top students a degree of help, The Sunday Times, January 29 2006.
Step Ahead Research
41
Aerospace Training South West
people for roles in aerospace and in encouraging them to consider a career in the
sector. Mathematical skills in particular were highlighted as being lacking among
entrants to Higher Education aerospace courses. One university commented that
they did not face problems finding applicants with the right grades. Instead, they
found that students with the top grades often required additional tuition to bring their
maths skills up to the level required for the course. It is likely that the amount of “topup” tuition required by entrants will increase if ‘A’ levels in Science, Engineering and
Technology subjects continue to decline in popularity.
A number of providers believed that they felt that the current school system caused
students to specialise too early, which can restrict the options available to them later
on. It was also felt that it can be difficult for those who do not study maths at 16 to
make a career as a professional engineer and that this has a particular impact on the
number of women joining the sector.
Equipment: pace of development
The equipment needed for aerospace courses was considered to present particular
issues for some training providers. This reflects the speed of technological
development in the sector. A number of providers mentioned that they had recently
received large injections of funding, for example funding associated with gaining
CoVE status, but that the equipment they had bought would eventually become out
of date. A jet bought by one provider around three years ago was expected to
become obsolete in another three years and noted that computer software dated
even more quickly.
The equipment needed for composites training was felt to be particularly expensive.
For example, providing this training involves complying with the health and safety
requirements with regard to emissions and the use of expensive tools with only a
short lifespan.
In several cases, training providers had some kind of arrangement to allow learners
to use equipment owned by employers. However, these arrangements are also often
ad hoc in nature. One university has a partnership with a large aerospace company
that means that students can undertake project work within the company and use
their equipment. Although the arrangement is currently in its sixth year, there is no
guarantee that it will happen again next year.
In addition, because of the sensitive nature of aerospace equipment, “mock”
equipment is needed in some cases to teach learners the fundamental techniques
they will require to work in a genuine aerospace environment.
Step Ahead Research
42
Aerospace Training South West
5.0
Conclusions and Next Steps
This study has sought to explore the training and workforce development needs of
some of the largest aerospace employers in the South West region, contrasting this
against current and planned education and training provision for the sector. As stated
above, this study has targeted only four large aerospace companies and mapped
provision across 11 education and training providers. As such, this study did not seek
to represent the needs of the sector as a whole or to undertake an audit of available
education and training provision.
Instead, this study was designed to:
 examine the case for public intervention and to maximise the added value of
public sector investment;
 explore opportunities to improve collaboration within the industry and with
and between education and training providers; and
 consider new approaches to public and private sector training.
5.1
The case for public intervention
From the above analysis, it is difficult to set out a clear case for an overall increase in
aerospace learning provision. Current and proposed education and training provision
for the aerospace and advanced engineering sectors is shown in Section 4 to be both
extensive and spread across all skill levels. Section 3 also shows that employer
demand for skills can be volatile, reflecting the cyclical nature of the industry, and
that current proposals for in-house training centres are at an early stage.
This study did not identify significant gaps in provision as identified by both the large
employers and by the education and training providers, other than possibly with
regard to emerging technologies. This view is supported by SBAC, which stated at
the employer and stakeholder Workshop that the issue is one of “linkages” between
current providers, rather than an overall lack of provision.
That being said, it is evident that the aerospace sector in the South West faces a
number of challenges that it cannot address successfully by itself. The large
employers have expressed a clear need to increase the pool of potential recruits,
from school leaving age, from college and university graduates, and from the wider
workforce, and to address current and emergent of skills needs of the existing
workforce.
The aerospace sector, along with the rest of the manufacturing industry in the UK, is
under increased pressure to attract the best and brightest new entrants, with
increased competition from service sector occupations. Competition to attract the top
graduates has led employers to offer bursaries and golden hellos on recruitment (see
Section 4.4). Starting salaries in equivalent occupations in sectors such as finance
and business services also tend to be higher than those available within advanced
engineering sectors. To maintain the competitiveness of aerospace in the South
West, more needs to be done to persuade more people to consider engineering and
aerospace as an exciting and worthwhile career.
Large employers in the sector are already doing their part by employing apprentices,
taking on ‘Year in Industry’ students and developing graduate recruitment
programmes, as well as other activities to foster links with local schools, colleges and
Step Ahead Research
43
Aerospace Training South West
universities. But this is unlikely to be sufficient without additional support to promote
aerospace to young people and other sections of the workforce. This will need to
include awareness raising campaigns among parents, teachers and careers
advisers, together with increased emphasis placed on vocational career pathways.
Some of those interviewed for this study were concerned that government policy was
not joined up here, where the proportion of people going on to study in HE was
working against vocational education.
Current initiatives in this area, which have been run by WEAF, are not generally seen
as successful in persuading more young people to consider aerospace as a potential
career. Interviews with the 11 education and training providers have shown that
those learners undertaking aerospace related courses are still predominately male,
with some avionics courses under-subscribed. Some concerns were also raised
about the proportion of people from minority ethnic communities entering the sector.
Changing perceptions toward a career in aerospace needs to be considered as part
of a wider Strategy for the sector. One-off campaigns or road shows are unlikely to
be sufficient, especially given that employment in the sector across the UK is forecast
to decline by 23% between 2003 and 2010. Promoting successful companies and
successful career pathways within a declining sector requires sustained activity
aimed at young people and those people who influence their career choices. A view
expressed in the January Workshop, was that the sector did not have a “Jamie
Oliver” to promote careers in aerospace. While not part of the remit for this study,
there is a need to review current advice and intelligence for careers in aerospace
available to young people, parents, teachers and careers advisers.
The quality of new entrants joining the sector was also raised as an issue by the
some of the large employers, at apprenticeship and graduate levels. It was
suggested that the more able young people were likely to follow the more traditional
GSE ‘A’ level and university pathway, rather than being given the option of an
apprenticeship with an aerospace employer. The large employers were also looking
further-a-field for their graduate in-take, with some holding road shows across four
continents, with the calibre of overseas graduates perceived to be higher.
Employers have to date responded to a shrinking pool of new entrants to the sector
by focusing on their own recruitment and retention strategies, while providing a
respite solution for some large employers this fails to address the longer term
problem of fewer people wanting to work in the sector. The strength of the South
West aerospace sector is based on the strength of the cluster of aerospace
companies and their supply chain located in the region. But the concentration of
these firms does have drawbacks, especially where companies are competing
aggressively for new staff. If the issue of new entrants to the sector is not addressed,
opportunities for industry collaboration are likely to become limited as companies are
forced to compete more aggressively against each other. The large employers have
already responded to this challenge by relocating some activities outside the region
and overseas.
While the large employers are very active in seeking to improve the retention and
workforce development policies for their current workforce, some interviewees did
recognise that they were slow to address their skills needs. The cyclical nature of the
sector clearly poses a challenge to large and small aerospace employers alike, with
training budgets often perceived to be under pressure. With some industry
commentators predicting that orders placed for new aircraft may have already
peaked, the pressure on training budgets is unlikely to ease.
Step Ahead Research
44
Aerospace Training South West
Ideas to develop in-house training centres, with support from the public sector, have
been shown to be at an early stage. Without detailed plans it is difficult to be certain
how these centres could be integrated successfully with current education and
training provision in the region. Potential linkages with the Marine Skills Centre and
the proposed Dyson Academy in the region have also not been made. Furthermore,
it was suggested that one of the perceived strengths of the Marine Centre was that it
was not owned by any one company.
As such, there appears to be a danger of duplication of provision, potentially leading
to the displacement of existing FE and WBL providers. One large employer at the
January Workshop separated the need for technical and engineering skills and
indirect skills (e.g. leadership, problem solving, team working, etc), with the latter not
seen to require large scale capital investment. This employer was confident that by
combining their (indirect) skills needs, they could make better use of existing
provision.
Plans by education and training providers to develop aerospace related provision are
also being considered at the local level (see Section 4.3). However, it was not
possible to determine to what extent the needs of the sector across the region as a
whole were being taken into account. While more than 80% of the workforce is
located in the West of England and Somerset sub-regions, aerospace establishments
are spread more evenly across the region. Education and training provision needs to
be accessible to all aerospace employers, with travel to learn times a key
determinant in a company’s decision to send a member of staff on a training course.
Given these uncertainties and current lack of alignment between proposed training
centres and other initiatives to improve education and training provision to the sector,
the case for increased public investment cannot be made. However, the findings from
this study suggest that the question should not be whether or not there is a role for
increased public sector intervention but rather to what end this intervention should
take. The aerospace sector is a priority sector for the South West region and as
such, needs to be supported. Current proposals need to be considered in aggregate
and with a view to the overall Vision for the sector in the South West.
5.2
Fostering collaboration
Examples of effective and sustained collaboration between aerospace employers to
address workforce development needs appear to be relatively thin on the ground.
This is in spite of a strong legacy of cross-industry collaboration on R&D
programmes. However, R&D collaboration is driven in the main by national and EU
government funding. No such catalyst currently exists to promote collaboration to
address the sector’s skills needs.
Supply chain initiatives to improve workforce skill levels by prime contractors or tier 1
contractors also appear to be limited. This may reflect the complicated nature of the
industry, in which it is common or a company to be a supplier in one respect and a
customer in another. Examples from other manufacturing sectors, such as motor
vehicles, where large companies require their suppliers to meet certain skill levels
and training targets, have not yet been brought across to the sector. However, as the
large employers seek to reduce the size of their supply chains to work with fewer
strategic partners, opportunities for supply chain initiatives are likely to improve.
Step Ahead Research
45
Aerospace Training South West
The proposed in-house training centres need to be developed with a view to engage
these strategic partners and other core suppliers. Detailed plans to determine the
number and type of learners coming from these partners/suppliers need to be worked
up alongside their own training needs.
Interviews with the education and training providers also highlighted difficulties with
regard to employer engagement. While large employers tend to have developed
close links with their local schools, colleges and/or universities, education and
training providers find it hard to engage and sustain relationships with employers,
especially SMEs. Difficulties with regard to employer engagement are not confined to
the aerospace sector, but reflect a wider challenge to improving the skills of the UK
workforce. Many companies, especially SMEs, are unable or not prepared to arrange
or fund training for their employees. As discussed in Section 2.4, the Apprenticeship
Taskforce report called on employers to form Group Training Associations to pool
their training needs, which was seen as one possible solution to encouraging more
companies to engage in training.
At the January Workshop, representatives of three large employers expressed strong
support for increased industry collaboration on training and workforce development.
One employer called for collaboration that went beyond the sharing of equipment.
This was seen as potentially difficult, but necessary to support the success of the
South West aerospace sector. Collaboration was considered to be easier with regard
to indirect or generic skills needs, although this study did not identify any recent
examples of such collaboration. The employers acknowledged that it would be more
difficult to agree which company led on which specialist skill area.
The employers understood the need to ensure that the proposed in-house training
centres were open to the industry as a whole, with each centre specialising in certain
skills areas (e.g. composite materials, systems engineering). Within this framework, it
was envisaged that these centres would work with each other and other education
and training providers to meet the skills needs of the sector as a whole, focusing on
the direct and indirect workforce, as well as new entrants to the sector and the
existing workforce.
5.3
New approaches
A Strategy for the South West aerospace sector will need to consider developments
in national skills policy. The National Skills Strategy places emphasis skills at Level 2
and Level 3 in certain priority sectors, while the needs of the aerospace sector are
mainly at Level 3 or above. There is also a need to align proposed developments
with the AeIGT framework and the DTI work on future technologies.
Across the UK, a network of National Skills Academies is currently being developed,
with the first four due to open in September 2006. Skills academies are intended to
be sector-led national centres of excellence, allowing employers to develop
appropriate responses to their skills needs. SEMTA has been tasked to lead on one
of these four national academies. Stakeholders have expressed a willingness to use
the skills academy framework to develop a regional response to the skills needs of
the aerospace sector in the South West.
However, this framework will need to set out within an overall Strategy for the sector.
Current provision for the sector seems to be developed bottom-up in response to
Step Ahead Research
46
Aerospace Training South West
local need. A regional overview needs to be taken to avoid duplication and address
any gaps in provision.
An effective system of skills brokerage is also required to help companies to identify
their skills needs and to help them identify appropriate training solutions. The current
mix of providers and range of provision makes it hard for companies wanting to
undertake training to source the most appropriate solution for them. As shown by the
Marine Skills Centre, employer-led training centres, run by the large aerospace
employers, may help to overcome company concerns about the usefulness of the
training being offered. Skills brokerage could also help to cascade good practice with
regard to training down the supply chain.
Ultimately, however, any Strategy for the South West aerospace sector will need to
explore the cost and funding of the available training provision. Public sector
agencies, employers and learners will need to agree who pays for what learning. Any
new approach will need to be able to manage the cyclical nature of the sector and
the annual pressure on training budgets.
5.4
Next steps
To explore the case for increased public intervention it is necessary to consider the
medium and long term goals for the aerospace sector in the region. The SEMTA
Sector Skills Agreement is a useful starting point, but the needs of the South West
aerospace sector are unique and need to be considered against the competing
strengths of other UK regions and overseas locations. The status quo is not an option
if a priority sector in the region is to be supported and strengthened to face increased
global competition. The large employers have admitted that the UK has been slow to
respond to the new challenges emerging from increased overseas competition. The
South West aerospace sector needs a strong Vision delivered through an employerled Strategy and Action Plan.
Employers welcome the idea of someone or some organisation being given
responsibility within the South West to lead on the Strategy and to drive forward
increased collaboration between employers and with education and training
providers. There was a concern that previous attempts to address skills needs in the
sector could falter without this additional resource.
Step Ahead Research
47
Aerospace Training South West
Annex 1 Research Method
This section briefly outlines the research method employed for this study, which
focused on an initial period of desk research and primary research with the large
aerospace companies, providers of education and training and other key
stakeholders in the region.
1.
Desk research
Before starting the primary research stage of the project we first undertook a brief
review of current national, regional and local research on skills needs. As part of this
work, we analysed Individualised Learner Records (ILR) data from the Learning and
Skills Council (LSC), which sought to identify the extent of post-16 aerospace
provision (not including HE) in the region.
The study took as a starting point the analysis presented in the Sector Skills
Agreement, as produced by SEMTA in spring 200567. It was not the intention of this
study to critique this analysis, but rather to provide more contextualised information
from the point of view of four large employers in the region.
In addition, we sought to map the alignment of current policy towards the aerospace
sector in the region, including a review of SWRDA, LSC and training provider
corporate documents and annual plans. However, as shown below, limited reference
to the aerospace sector was made in these documents. While most of the documents
did acknowledge that aerospace had been identified as a priority sector by SWRDA,
only a few made more other references to the sector (see Figure A1).
Figure A1: References to the aerospace sector in local policy documents
Somerset LSC Annual
Business Plan 2004/05
Identifies aerospace as particularly important in South
Somerset, leading to very specialised supply and demand
issues in this district
West of England LSC Annual
Plan 2005/06
Identifies aerospace as an important local cluster
West of England Local
Strategic Plan 2002 - 2005
Highlights aerospace as a local cluster which offers
opportunities to help employers to develop specialised hightechnology skills and to further improve the mix in the area
2.
Employer interviews
In order to gain a comprehensive picture of current and potential skills needs and
training activity in each of the four large aerospace companies, we undertook a
series of site visits and in-depth interviews with senior staff in these organisations.
Eleven depth interviews were conducted in person and a further 5 were undertaken
by telephone. The interviewees covered a range of job roles, including the Director of
Engineering, Director of Production, Director of HR, Chief Engineer, Training
Manager, etc. The interviews asked about skills needs in the industry, across all
occupational groups (including supply chain, procurement and logistics managers).
This allowed us to build up a clear picture of skills needs and training activity within
each of the four companies.
3.
Training provider and stakeholder interviews
Another 11 telephone interviews were carried out with Further Education Colleges
(5), Higher Education Institutions (3) and Work Based Learning (3) providers. These
67
Sector Skills Agreement for the Electronics, Automotive and Aerospace Industries, SEMTA, 2005.
Step Ahead Research
48
Aerospace Training South West
interviews aimed to explore current and planned aerospace provision in the South
West region.
Four interviews were also carried out with representatives of stakeholder
organisations, including SWRDA, the LSC, WEAF and SBAC. It was hoped that their
perspective would enhance the picture of current and future skills needs and training
activity, specifically looking at current and planned interventions.
4.
Discussion workshop
Findings from the desk research and depth interviews were brought together and
presented to key stakeholders and representatives from three of the four aerospace
companies68. These findings were used to inform a discussion between the 14
workshop participants, encouraging them to brainstorm innovative solutions to
current and emergent skills needs of the aerospace sector in the region, testing out
opportunities for increased collaboration between companies and cascading training
solutions through supply chain initiatives.
68
All four aerospace companies were invited to the workshop but only three were able to attend.
Step Ahead Research
49