Sembcorp Utilities (UK) Ltd
The North East Process Industry – a Vision, Strategy and Tactical approach to deliver skilled people to sustain and grow the Sector.
The skills challenge
Sembcorp Utilities UK is a leading industrial energy, utilities and services provider based in Teesside, UK with major customers in key UK industrial manufacturing sectors, including chemicals and petrochemicals, biofuels and recycling. To ensure Sembcorp and the entire process industry sector retain competitiveness, Sembcorp and its partners have identified that they need to address a number of pivotal skills issues.
At a sectoral level, a severe skills shortage has meant that businesses in the process industry can’t get enough skilled/qualified engineers at both graduate and technical levels. 8,000 new vocational and graduate personnel are required by 2020 to satisfy growth projections; whilst projects already in the pipeline, if approved, will generate demand for a further 8,000 jobs. Additionally, apprentice and general recruitment slowdown has led to an age gap, whereby the average age of a Process Operator is now over 55 – a fact which means that twice as many people are leaving the sector as entering it. There are also skills challenges for businesses like Sembcorp in the North East of England, which currently has the highest level of 16-24 year olds not in education, employment or training (NEET) – 13% in Tees Valley vs. 6.3% nationally.
Sembcorp and other manufacturers are convinced that if these skills gaps and shortages aren’t addressed, business in the process industry will simply move out of the UK. As a £60billion industry per year, this would have a major impact on the economy with the sector currently representing 12% of all UK manufacturing.
The solution
Sembcorp in collaboration with leading employers and stakeholders wants to address these skills challenges and build on the success of two projects – the Tees Valley Apprenticeship Programme (TVAP) and the Tees Valley Production Technician (TVPT_ programme with an entirely new initiative – known as the Sembcorp Skills Development Programme (SSDP) to be delivered by the National Skills Academy Process Industries (NSAPI). With investment from the Employer Ownership of Skills Pilot (EOP), the partnership will take tactical ownership of elements of the skills agenda to unlock barriers which are constraining the ability to meet future workforce needs. Collaboratively, the partnership will increase and improve opportunities for new recruits throughout their supply chain by:
- Recruiting an additional 100 new pre-apprentices aged 16-18 who will begin a new accelerated apprenticeship over 3 years (originally 4).
- Supporting the costs of apprentices through a grant for SMEs. The funding will also be used to support pre-apprentices to gain employed status quickly with employers through a recruitment grant.
- Designing and delivering a short 3-week intensive employability skills programme for 50 graduates each year and provide ten 6 week work-placements to increase experience and employment potential.
Impact
With the support of the EOP, the application of resources owned by larger employers will be used effectively to support apprenticeship and graduates employed throughout the supply chain. Learners’ productivity will be accelerated, increasing competitiveness and supply chain firms will be better equipped to meet their clients’ future requirements. This pilot departs from current provider driven models for apprenticeship and sporadic graduate recruitment programmes, into employer-led sustainable and refreshed provision, accredited to industry Gold Standards.
95% of the estimated activity will be for 16-18 year olds and 100 16-18 year olds will receive pre-apprenticeship training. 75 level 3 Apprenticeships (16-18yrs) will be delivered and 200 graduate (19-24yrs) opportunities created by the pre-employment programme alongside 20 graduate work placements.
The project will deliver a major shift in skills delivery for the process industries of the North East. Its focus will ensure future skills and capacities of the sector are sustainable to meet growing opportunities arising from technology and inward investment. This will help ensure employer competitiveness in an increasingly competitive global market.
Investment
Employer investment: £5,988,251
Employer Ownership Pilot Funding: £3,402,290
Total: £9,390,541
