EVIDENCE FORUM EVENT. 26 January TO Welcome: Steve Radley Director of Policy and Strategic Planning CITB

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Gerard Scott
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1 EVIDENCE FORUM EVENT 26 January TO Welcome: Steve Radley Director of Policy and Strategic Planning CITB

4 Capturing the Evidence Base to inform Investment Funding Decisions The industry needs an evidence base to inform investment decision making to enable skills gaps and shortages to be addressed quickly and effectively Evidence should be: concise available transparent leading edge subject to challenge Capturing the evidence in one place will provide a central function of excellence CITB will use the evidence base to direct its own priorities and future bids Evidence may contain a range of approaches and methodologies

5 Role & approach of the Investment Funding Committee Independent Oversight Provide direction Review evidence Scrutiny to ensure impartiality and consistency Align funding with CITB objectives Evaluate success of investment against priorities Share knowledge of successes and lessons to enhance future funding success and value

6 Why evidence is critical and how evidence supports successful bids Geeta Nathan: Head of Economic Analysis

7 The flexible & structured funds FLEXIBLE For projects of up to 18 months Skills and training Innovation, pilots & prototypes Enhanced incentives STRUCTURED For projects of 18 months to five years Enhanced incentives Infrastructure support Educational engagement commissioned Available to: Employers registered with CITB (individuals and groups) Federations Trade unions associated with construction CITB-approved training groups Successful bids go through a process of monitoring and evaluation

8 The funding round 22 bidders awarded > 7m to support industry projects including: Development of sector infrastructure : how we attract, train and retain a skilled and professional workforce to build one million new homes in the next five years Free and low-cost training for infrastructure supply chain companies targeted at civil engineering Increase women in housing, building and maintenance Upskilling small building firms including building regulations, energy efficiency and complying with regulations Specialist federation support for apprentices and adult upskilling

12 Understanding the Process: Where evidence and funding meet Sandra Lilley: Economic and Skills Forecasting Manager

13 How will this be achieved? CITB will: 1. Align forecasting, data and labour market intelligence within CITB & externally 2. Compare industry and CITB surveys, trend analysis, industry expertise, infrastructure pipeline and literature reviews 3. Review macro-economic forecasting 4. Capture anecdotal evidence including using training groups, the nations and this new industry evidence forum 5. Review government policy and strategy and impact on skills related issues 6. Review bespoke research e.g. HS2, NIPP, LEP reports, etc

16 QUESTIONS & ANSWERS

17 So what is the evidence base indicating? Noble Francis: Economics Director, CPA Presentation link

18 BREAK

19 So what is the evidence base indicating? Sandra Lilley: Economic and Skills Forecasting Manager

20 CSN Headlines 2016 to 2020; published 27 January 16 Economic growth slowed in 2015 after a strong rise in 2014 Uncertainty in Eurozone and China means recovery was domestically driven Positives in 2015 employment growth; unemployment falling to 5.2% (Oct15) Past two years construction employment grew by ~ 104,000 Construction growth slowed 0.5% decrease on output in Nov 2015 Output growth projected at 2.5% average for 2016 to 2020

21 CSN Headlines 2016 to 2020 continued Construction: Employment up in 2015 Demand expected to continue to rise: output averages 2.5% growth to 2020 Employment growth expected to average at 1.1% a year By 2020 construction workforce predicted at 2.73m (5% below 2008 peak) Regional and nations variations Wales and the South West performing well Scotland suffering in comparison London and the South East expected to grow

22 CSN Headlines 2016 to 2020 continued Private housing was a major driver for growth in 2014; slowed in 2015 Fewer SME housebuilders driving volumes in housing Public housing output contracted (back to single digit growth) Infrastructure saw significant growth and will continue; 25%, questionable? (e.g. HS2, Thames Tideway, HPC, Wylfa, Highways) Commercial construction will experience sustained growth (offices market) Public non-housing will experience a small bounce-back Industrial sector is performing well (driven by the warehouse sub-sector) All 28 occupational categories have expanded; particularly bricklayers

23 Understanding the Evidence Base: Demand v Supply Need for continued technical skills, trade and professional level Need for a wider/multi skills based linked to drive productivity & innovation CITB s research 50% of employers cited skills shortages as most important issue 17% of sole trades have funded or arranged training 41% of larger employers have funded or arranged training Training provision needs increasing in 14 core trades and professions inc: wood trades and interior fit-out; labourers; bricklayers; painters & decorators; building envelope specialists; roofers; carpenters, construction managers; civil engineers Research required for nine more inc: electrical installation; plant operatives; architects Regional variations; pipeline analysis is key

24 Demand & skills shortages What do these mean? Growing employer concerns over skills shortages Forecast is for continued growth Skills shortages need quantifying: How many workers? How long they will be required? What skills and or experience are needed? Drivers of demand work load & regulation Employers will fill demand differently Localised intelligence is key

25 PILOT collection of anecdotal evidence Interviews with Tier 1 suppliers

28 CITB Construction Panel: Wave 15 Employer Attitudes to and Motivations for Learning and Training

29 Shortage of suitably skilled staff: specific occupations 43% CONSTRUCTION BUSINESSES 35% PROFESSIONAL SERVICES BUSINESSES Carpenters / Joiners Bricklayers Plumbers Electricians Painters / Decorators Labourers Plant and Machine Operatives Heating and Ventilation Installers Plasterers Architectural Technologists Other Engineers Architects Environmental Professionals Designers Mechanical Engineers Carpenters / Joiners Building Services Engineers Base: All with difficulties finding suitably skilled staff - Construction (581), Professional (145) Multiple responses allowed; occupations mentioned by less than 5% not shown 7% 7% 7% 6% 5% 7% 6% 5% 10% 10% 14% 14% 13% 16% 16% 23% 25%

32 Recruitment challenges: what employers say 61% of those with recruitment problems found projects had taken longer as a result (20% of the sector) 48% had turned down work due to a lack of staff (16% of the sector) 8% experienced a direct financial impact 41% recruited someone with a lower level of skills (so companies will need to train more) Reasons for shortage of applicants: 16% lack of skills or qualifications 13% schools / colleges don t promote 11% competition from other companies 11% poor image of sector 8% lack of people joining the industry 5% lack of suitable training courses 5% due to company location 5% competition from other sectors 556 companies with shortages of applicants

33 Summary This is just the first step, our understanding and the process will develop Investment Funding needs to be utilised to address skills solutions at a national and regional level Some occupations are more in demand than others BUT the picture is constantly evolving AND there are region and sub-sector variations CITB is placing more emphasis on an evidence base than ever before All funding decisions will be underpinned by evidence Your input and opinions are critical to the process Compelling evidence is essential in setting priorities and guiding decisions

34 QUESTIONS & ANSWERS

36 Please get in touch If you want to get involved with the various fora and opportunities that will allow your organisation to contribute the evidence It could help your industry and your organisation Evidence forum Contact Sandra directly

CITB EMPLOYERS SKILL NEEDS SURVEY

CITB EMPLOYERS SKILL NEEDS SURVEY AUTUMN 2002 1 Summary Approximately 500 construction companies drawn from across Great Britain were asked about workload and recruitment difficulties in October 2002 Expectations