Sir Alan Jones Presentation


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  • 15 minutes. Plus Q&A with Kate Bellingham, national STEM Careers Co-ordinator and former tomorrow’s world presenter. Good morning. As chairman of Semta, the sector skills council for science engineering and manufacturing technologies, it is my job to help companies in these sectors become more competitive through skill improvement. STEM is therefore pivotal to our role. <click>
  • You might ask: why does STEM matter? We don‘t make things here anymore. <click> But that’s far from the case. The reality is that we are the sixth largest manufacturer in the world, our sectors represent 75% of British business R&D and 40% of UK exports. Today STEM encompasses a whole new world: bio technology, nano technology, plastic electronics, composites. It‘s addressing today’s problems and tomorrow’s challenges through advanced manufacturing, green and emerging technologies like wind and wave power, low carbon, electric vehicles and smart buildings. And let’s not forget the UK’s space business will be worth some £14bn by 2020. It’s all based on STEM which, if you were to call it a sector, contributes £160 billion in Gross Value Added to the UK’s economy – that £50,000 per person employed. So STEM really matters. <click>
  • And it matters in the East Midlands. Here we have over 6,000 companies and over 100,000 jobs directly involved in STEM. <click> And the East Midlands accounts for 9% of all Engineering employment and 9% of all Engineering establishments in Great Britain. And it matters to everyone. STEM is not just for scientists and engineers, it is the vital foundation upon which understanding of everyday life and skills for business are based, particularly in today’s fast moving technological age. Taking STEM subjects at school, college or university will open up your opportunities and improving your skills for work will give you a real career advantage. <click>
  • However, while STEM matters now and for the future, the problem is that we don’t have the skills we need to succeed either UK–wide or in this region. <click> In the East Midlands 17% of engineering companies have skills gaps in their existing workforce and two thirds of these are in crucial technical skills. There are 18,000 people working in East Midlands engineering industries without qualifications. As employers increasingly demand higher level skills, there is a potential upskilling requirement for more than 46,000 people. And to make matters worse more than 40% of employees are over 45, and with the recession increasing early retirements, a lot of skills are walking out the door and never coming back. However only 25% of companies employ any apprentices or trainees so we have a growing skills problem that will threaten our economic recovery. <click>
  • In bio and pharmaceutical we see a similar picture. <click> 29% of companies in the UK have skills gaps and consequently 26% of companies go abroad for their skills. With 31% of employees aged 45+, you can see the scale of what we are trying to tackle. In the East Midlands shortages include Synthetic Organic Chemistry, Medicinal Chemistry, Bioscience and Molecular Biology. <click>
  • Semta is tackling these issues based on our detailed research of employers’ skills priorities: <click> Firstly we are improving the match between skills supply and demand by improving and promoting apprenticeships; we are supporting higher level skills by developing qualifications such as foundation degrees and forging links between Higher Education and business. To re-skill those with no qualifications, our National Skills Academy which has training providers in every region , has developed Business Improvement Techniques programmes which provide a strong 6:1 return on investment for companies. Semta’s industry experts can go into companies and identify the skills, such as management and leadership, that they need to deliver their business objectives. And to help develop a pipeline of talent to replace our ageing workforce, Semta promotes young apprenticeships and has led the development of Diplomas in Engineering and Science. <click>
  • To fund such activities Semta has negotiated a <click> £100 million sector compact to support employer priorities: Management and Leadership, Business Improvement Techniques and technical training plus apprenticeships and Skills for Life. In its first year more than 700 companies have been supported, 78% of them SMEs and 38,000 candidates have been signed up for qualifications. This is driving up the numbers of NVQ in our sector to 80,000 a year - record levels. Investing in skills and education pays off. For example, the University of Warwick’s Institute for Employment Research found the total net cost of taking on an engineering apprentice will get paid back in just under three years. <click>
  • Although much activity is taking place to improve STEM skills among the current workforce, more needs to be done. The East Midlands rightly recognises that our future prosperity depends on maintaining and developing our STEM base. Here and nationally we need STEM to address competition in global markets and the challenge posed by the development of green and emerging technologies. To put STEM at the heart of our new economy, we need this pipeline of young talent in STEM subjects. The skills and education landscape is changing. Employers are being encouraged to shape the agenda so we get the workforce skills to support our competitiveness. <click>
  • Yet The Leitch Review found that <click> 10 million adults in the UK do not hold the equivalent of a basic school-leaving qualification. and <click> 17 million have difficulty with numbers. <click> According to the CBI, employers rated poor education standards as one of their top concerns, with 51% dissatisfied with school-leavers’ basic skills, and 23% with those of graduates. While another CBI survey found that nearly <click> 60% of firms are experiencing problems recruiting STEM employees and they estimate there will be <click> an extra two million jobs requiring people to have STEM skills by 2014. And, although the numbers studying STEM subjects at A-level and degree are slightly up in recent years, only 7% of 16-years-olds now take Triple Science GCSE (separate physics, chemistry and biology), which is seen as the best grounding for further study at A-level and beyond. <click>
  • So we have basic skills gaps, and we struggle to get new recruits with STEM qualifications. What puzzles me is that young people are naturally interested in STEM. A recent STEM action programme report found that <click> : - Design and technology and science were rated by young people as the third and fourth most popular subjects. - Mathematics and science were considered to be important subjects to secure a good job. - The percentage of young people who would consider a career related to a STEM subject is comparatively high (with 59% contemplating future work linked with technology, 52% in science and 50% in mathematics; 38% in engineering). - There was a corresponding level of curiosity in finding out more about careers in each of these subjects, with 84% expressing an interest in further information about careers related to at least one of the STEM subjects. So what’s the problem? <click>
  • In answer my own experience, and that of the employers I represent, is very much in line with the findings of the STEM report. <click> We need cross curricular teaching of STEM subjects with plenty of practical work in better facilities so their relevance to everyday life and the world of work is clear and stimulating. According to the CBI, high quality labs lead to better results among students, but a quarter are unsafe or unsatisfactory. We need to change the image of STEM careers and help to debunk some of the myths, for example that salaries are low in engineering. We need to improve careers advice, influence teacher development and parental attitudes so young people understand from their mentors the vast opportunities offered by STEM. The only way to achieve these changes is for employers to get involved with schools. <click>
  • The government’s vision is for every school to have employer engagement but sometimes businesses either feel <click> they don’t have the time or think they need money to support schools or, given daily pressures, particularly in a recession, don’t think it’s their problem or a priority, sometimes because they are small companies and think it’s a luxury more relevant to larger companies. In my work supporting Diplomas I have found the best approach to these barriers <click> is a single focussed approach from a school which clearly explains the benefits of a business getting involved with a school. It’s best that both parties understand “What’s In It from Me” and agree explicitly to work towards their shared objectives. There are many benefits but generally businesses do it because they want to help their local community, they are genuinely altruistic, have a commitment to corporate social responsibility and want to help young people. And this goes for small companies and large companies, private and public sector. <click>
  • It is of course worth spelling out the many benefits of involving employers in education. <click> Young people get the opportunity to find out what skills employers look for, whilst also getting the chance to develop their self-confidence and communication skills. This will help young people to work better with other people in further or higher education, as well as in their future careers.<click> Employers benefit too: By raising aspirations and awareness of what kind of job opportunities are open to young people Being able to recruit young people who are more informed, more enthusiastic and better prepared for work Building a positive local reputation. It’s right to support our community by making a difference to the lives of young people. <click>
  • And The new 14-19 Diploma demonstrates that employers are prepared to seize these opportunities. Employers have been involved in Diploma development and now are involved in their implementation. A recent poll of Year 11 students found it’s on the right track: <click> 70% said they would work harder if studies were linked to employment <click> 78% believe work-related study can help land their ideal job <click> 60% agreed that undertaking work experience had given them a better understanding of what future employers would expect of them. So involving employers in education does make a difference. <click>
  • Even though times are tough, I want to encourage you all to think about the future and support young people so they have the STEM and employability skills businesses need. <click> There are many ways for employers to get involved: - work experience, careers information, work shadowing, teacher and pupil mentoring, job interview preparation, project support, days in industry or business and curriculum linked visits. As I’ve said it can benefit both young people and employers. And looking at the wider picture, education and business will link better than in the past, getting an appreciation of each other’s needs and so turn a virtuous cycle of continuous improvement. <click>
  • As well as Semta and the East Midlands STEM Partnership, there are many organisations who can help. I’ve listed them here as different approaches suit different employers: STEMNET with its Science and Engineering Ambassadors programme Young Engineers Education Business Partnership Organisations The newly launched Education and Employers Task Force which now supports Diplomas as well as other forms of engagement National Apprenticeship Service And The School Governors’ One-Stop Shop which matches prospective governors to vacancies. Emda plans to make The East Midlands even more of a flourishing region by 2020, and I have every confidence it will happen if we support STEM and the work of organisations like Semta and the East Midlands STEM Partnership in developing the skills of our existing workforce and our talent pipeline by involving employers in education. Thank you. 1970 words@ 115 wpm = 17 minutes.
  • Sir Alan Jones Presentation

    1. 1. The opportunity for employers to shape the future of STEM Sir Alan Jones
    2. 2. Why does it matter? <ul><li>Science, engineering and manufacturing: </li></ul><ul><li>2 million people employed </li></ul><ul><li>75,000 companies </li></ul><ul><li>Turnover £200 billion </li></ul><ul><li>40% of total UK exports </li></ul><ul><li>R&D: £10 billion </li></ul><ul><li>Total Gross Value Added : £160 billion </li></ul><ul><li>GVA £50,000 per person </li></ul>
    3. 3. East Midlands <ul><li>6,260 employers </li></ul><ul><li>115,100 employees </li></ul><ul><li>9% of all Engineering employment </li></ul><ul><li>9% of all Engineering establishments </li></ul>
    4. 4. Risk <ul><li>East Midlands Engineering </li></ul><ul><li>17% reported skill gaps </li></ul><ul><li>Two thirds in technical skills </li></ul><ul><li>18,000 no qualifications </li></ul><ul><li>75% no trainees/apprentices </li></ul><ul><li>41% is 45-64 years old </li></ul>
    5. 5. Risk <ul><li>Bioscience/pharmaceutical </li></ul><ul><li>29% have skills gaps in current workforce </li></ul><ul><li>26% of companies now go abroad for the skilled people they need </li></ul><ul><li>31% of employees are aged 45+ </li></ul>
    6. 6. Current workforce <ul><li>Priorities </li></ul><ul><li>To match skills supply with demand </li></ul><ul><li>To re-skill those with no qualifications </li></ul><ul><li>To improve management and leadership </li></ul><ul><li>Tackle issues relating to an ageing workforce. </li></ul>
    7. 7. Funding <ul><li>£100 million sector compact </li></ul><ul><li>Management and Leadership, </li></ul><ul><li>Business Improvement Techniques </li></ul><ul><li>Technical training </li></ul><ul><li>Apprenticeships </li></ul><ul><li>Skills for Life </li></ul>
    8. 8. The pipeline
    9. 9. The Challenge Leitch review of skills Dec 06 CBI Aug 08 <ul><li>10 million adults lack basic school-leaver qualification </li></ul><ul><li>17 million adults have difficulty with numbers </li></ul><ul><li>51% employers dissatisfied with school-leavers skills </li></ul><ul><li>60% of firms struggling to recruit STEM employees. </li></ul><ul><li>2 million more STEM jobs by 2014 </li></ul>
    10. 10. The Opportunity <ul><li>Design and technology and science are popular subjects. </li></ul><ul><li>Mathematics and science considered important subjects to secure a good job. </li></ul><ul><li>High percentages of young people would consider a STEM career </li></ul><ul><li>84% wanted STEM careers information </li></ul>Lengthening Ladders, Shortening Snakes Embedding Stem Careers Awareness in Secondary Schools From the STEM Careers Awareness Timeline Pilot October 2009
    11. 11. <ul><li>Practical cross curricular </li></ul><ul><li>Better facilities </li></ul><ul><li>Image </li></ul><ul><li>Support careers advice </li></ul><ul><li>Influence teacher development </li></ul><ul><li>Change parents’ minds </li></ul><ul><li>Improve facilities </li></ul><ul><li>Get involved in schools </li></ul>Unlocking potential
    12. 12. Engagement <ul><li>Perceived barriers </li></ul><ul><ul><li>Time </li></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><li>Not my problem/priority </li></ul></ul><ul><li>Breaking down barriers </li></ul><ul><ul><li>WIFM </li></ul></ul><ul><ul><li>Corporate Social Responsibility </li></ul></ul><ul><ul><li>Helping young people </li></ul></ul>
    13. 13. <ul><li>For young people </li></ul><ul><li>Find out what skills employers look for </li></ul><ul><li>Develop your self-confidence and communication skills. </li></ul><ul><li>Work better with others in education, or employment </li></ul><ul><li>For Employers benefit </li></ul><ul><li>By raising aspirations + awareness of jobs </li></ul><ul><li>Recruiting informed and prepared young people </li></ul><ul><li>Building positive local reputation + supporting the community </li></ul>The benefits
    14. 14. <ul><li>70% would work harder if studies were linked to employment </li></ul><ul><li>78% believe work-related study can help land their ideal job </li></ul><ul><li>60% agreed that undertaking work experience had given them a better understanding of what future employers would expect of them. </li></ul>On the right track
    15. 15. Getting involved Work related learning Work simulation Enterprise education Work experience Teacher/pupil mentoring School governors Part time work Work shadowing Careers information Industry days Mock interviews Curriculum linked visits Project support
    16. 16. Who can help <ul><li>Semta </li></ul><ul><li>STEMNET : </li></ul><ul><li>Young Engineers </li></ul><ul><li>Education Business Partnership Organisations </li></ul><ul><li>Education and Employers Task Force </li></ul><ul><li>National Apprenticeship Service </li></ul><ul><li> </li></ul><ul><li>The School Governors’ One-Stop Shop </li></ul>