Nick Barrett, Editor
nick@maintenanceandengineering.com
@MaintOnLine
Skills challenges will be front of mind for many employers in manufacturing and engineering following the recent National Apprenticeship Week, which each year offers an opportunity to shine a spotlight on exciting career opportunities available to young people.
Attracting fresh talent with new skill sets into industry has seldom been more vital as firms look to recover strongly from the pandemic while starting to make a serious dent in net zero carbon targets. This pressing need was reflected in the ‘Build the Future’ theme of this year’s campaign, which ran from 7 to 13 February.
However manufacturers in particular are currently being held back from filling the skills gaps necessary to meet future ambitions due to issues with how the Apprenticeship Levy paid by large firms is being implemented, Make UK highlighted to mark the occasion.
The group revealed that almost £2 billion of levy funding – intended to fund apprentice training – went unspent last year as companies struggled to cover the wages of apprentice hires. Currently, it said, an average four year engineering apprenticeship can cost a business up to £120,000 to deliver, while just £27,000 is claimable from levy funds.
Make UK urged the Government to make an exception to allow manufacturing companies to spend left over levy funding on paying new recruits, which it argues would help to boost numbers coming into the sector. The call will no doubt be backed by industry, with manufacturing and engineering known to be among the sectors worst affected by skills shortages.
A report from the Institution of Engineering & Technology at the tail end of 2021 found that close to half of engineering companies are experiencing difficulties with a lack of skills available in the external labour market.
Crucial technical skills – as well as soft skills – are said to be missing, with significant gaps reported across all levels of the engineering profession from technician or skilled craft level down to operative level. It is also well known that greater numbers of people with digital training will have to be recruited to harness the opportunities presented by Industry technologies.
Closer working between employers, educators and the government is needed to improve the engineering skills pipeline, the Institution said. It also highlighted an ongoing mismatch between employers’ desire for new entrants to have experience and the proportion engaging with educators to offer this experience.
Those firms that make the effort to partner with schools, colleges and academia will have the greatest opportunity to shape the future skills pipeline and can position themselves favourably to attract the best new talent.
National Apprenticeship Week also saw Make UK and other key industry groups launch a new partnership with the Government to help grow the number of manufacturing SMEs offering apprenticeships, as well as courses in new and net zero sectors.
With fierce competition for skills across the economy, it is clear that only by grasping the nettle and better coordinating efforts to attract apprentices into engineering and technical roles can the sector set itself up for a lower carbon, increasingly digitalised and more productive future.
Net zero and digital go hand in hand
Critical urgency of getting investment flowing into lower carbon machinery and assets was driven home by the recent ‘Delivering Net Zero through Digital’ report from Policy Connect, the All-Party Parliamentary Group for Manufacturing and the Institution of Engineering & Technology.
The paper makes the point that, with just 13 years remaining for industry to achieve a 78% reduction in carbon consumption, action across the sector must accelerate from now on. In particular it emphasises that purchases of new plant – which can have a lifespan of up to 25 years – need to be as sustainable as possible. The maths speaks for itself.
It is well known that one way of supporting the decarbonisation process is through investment in digital technologies, offering the potential to secure significant benefits through reduced waste, improved processes and increased productivity.
But while there is no lack of enthusiasm in the sector for either the net zero or the digitalisation agendas, costs will also remain critically important and the report calls for an expansion of tax relief mechanisms to encourage capital investment in green technologies. These include the introduction of a low carbon eligibility criterion for all tax reliefs and allowances.
Other key issues to be solved include the industry’s digital knowledge gap and the report adds that businesses should be encouraged to have their own net zero plans in place by 2027.
Further considerations for industry as it looks to chase down emissions reduction targets are discussed by our Editorial Advisory Board starting on page 8 of this issue, including emphasis on the need to consider embodied carbon and the role of good maintenance.
It appears that most in our industry are on the same page in recognising the need to drive down emissions. But it is likely to require more than willpower alone to drive action where bottom lines are affected.
By combining the net zero and digital agendas and increasing fiscal incentives from the government, it is hoped that companies will stand a fighting chance at cutting carbon while unlocking improved efficiency and cost savings.