| Dealing with the shortage of skilled labour |
| Tuesday, 29 June 2010 04:27 |
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Skills will allow small businesses to exploit new technologies, new markets and increase opportunities.
Skills will allow small businesses to exploit new technologies, new markets and increase opportunities. Companies in all industries have been hit hard by the recession and the number of people employed in Manufacturing has fallen, not only because of the recession but due to technological advances which have taken the roles of many lower-level workers over the years. In difficult times like these, many people are desperate for work and if recent school-leavers and graduates are unable to find work now they are going to be up against greater competition for jobs next year.At present there are at least 3,500 job vacancies across the process and manufacturing sector but 1 in 5 of all vacancies are proving hard to fill for employers due to lack of skilled applicants. Research has shown that around 90% of small businesses are struggling due to a shortage in skilled workers and around 1 in 7 employers report skill gaps. Amazingly more than 44,000 people already in employment in the sector have skill gaps relating to their current occupations! Research shows that in a glass company of say 50 people typically 5 will have a skills gap, and if that means they are only 10% less productive than it could be costing the business £25,000 per year in lost output! To break this pattern we not only need support and commitment from employers to train the younger generation coming into the sector, but we also need to encourage investment in training for the existing workforce to help employees become more productive. Crucially companies need to recognise the need to transfer knowledge and capture skills of the older workforce. To remain at the forefront of world manufacturing, which too often we forget we are, we must invest in the skills of the workforce, ensure skills are transferable and appropriate to business needs across industry allowing people to become multi specialists in their chosen careers. It is skills that will allow companies to exploit new technologies, new markets and new techniques or processes, and differentiate themselves. It is important that companies look at developing the base skills of their workforce such as reading, writing and maths along with technical skills if they are to excel in increasingly global markets. It is skills that will be vital in pulling the industry out of recession and ensuring it is in a powerful position for years to come. With the new government pledging to get people back to work, by reducing bureaucracy and creating a market for skills in the workforce we hope more will be done to promote the opportunities across the whole of Manufacturing and to help people train for existing and future job roles. We believe that reducing the “top down” target driven approach will be the best way to help companies access the training and qualifications that they require, and develop the skills their businesses need to compete with foreign manufacturers. This is now especially important with signs that some parts of production are slowly moving back to the UK, encouraged by the weakening of the pound and quality issues from overseas suppliers. A positive development is one that should be supported if we are to reduce our reliance on imports and increase the competitiveness of the UK, creating British jobs. If companies are moving back to the UK to improve quality, then use of technology is only half of the equation; quality manufacturing is down to the qualities of skilled workers. Companies need to ensure they invest in their staff to get the best results. Existing employees need the right training to help them progress, perform more efficiently and bring on new recruits. The numbers of people out of education, not in training and unemployed is rising yet, with the right investment and support, we could be training these people back into the existing and future job opportunities available in the process and manufacturing sectors. Companies in all industries have been hit hard by the recession and the number of people employed in Manufacturing has fallen, not only because of the recession but due to technological advances which have taken the roles of many lower-level workers over the years. In difficult times like these, many people are desperate for work and if recent school-leavers and graduates are unable to find work now they are going to be up against greater competition for jobs next year. At present there are at least 3,500 job vacancies across the process and manufacturing sector but 1 in 5 of all vacancies are proving hard to fill for employers due to lack of skilled applicants. Research has shown that around 90% of small businesses are struggling due to a shortage in skilled workers and around 1 in 7 employers report skill gaps. Amazingly more than 44,000 people already in employment in the sector have skill gaps relating to their current occupations! Research shows that in a glass company of say 50 people typically 5 will have a skills gap, and if that means they are only 10% less productive than it could be costing the business £25,000 per year in lost output! To break this pattern we not only need support and commitment from employers to train the younger generation coming into the sector, but we also need to encourage investment in training for the existing workforce to help employees become more productive. Crucially companies need to recognise the need to transfer knowledge and capture skills of the older workforce. To remain at the forefront of world manufacturing, which too often we forget we are, we must invest in the skills of the workforce, ensure skills are transferable and appropriate to business needs across industry allowing people to become multi specialists in their chosen careers. It is skills that will allow companies to exploit new technologies, new markets and new techniques or processes, and differentiate themselves. It is important that companies look at developing the base skills of their workforce such as reading, writing and maths along with technical skills if they are to excel in increasingly global markets. It is skills that will be vital in pulling the industry out of recession and ensuring it is in a powerful position for years to come. With the new government pledging to get people back to work, by reducing bureaucracy and creating a market for skills in the workforce we hope more will be done to promote the opportunities across the whole of Manufacturing and to help people train for existing and future job roles. We believe that reducing the “top down” target driven approach will be the best way to help companies access the training and qualifications that they require, and develop the skills their businesses need to compete with foreign manufacturers. This is now especially important with signs that some parts of production are slowly moving back to the UK, encouraged by the weakening of the pound and quality issues from overseas suppliers. A positive development is one that should be supported if we are to reduce our reliance on imports and increase the competitiveness of the UK, creating British jobs. If companies are moving back to the UK to improve quality, then use of technology is only half of the equation; quality manufacturing is down to the qualities of skilled workers. Companies need to ensure they invest in their staff to get the best results. Existing employees need the right training to help them progress, perform more efficiently and bring on new recruits. The numbers of people out of education, not in training and unemployed is rising yet, with the right investment and support, we could be training these people back into the existing and future job opportunities available in the process and manufacturing sectors. Terry Watts, CEO, Proskills, the Sector Skills Council for the Process and Manufacturing sector
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