Addressing The Industry Skills Challenge. Subsea UK 2011 Skills Conference - 9 th February 2011 Mike Duncan, Skills Development Director

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1 Addressing The Industry Skills Challenge Subsea UK 2011 Skills Conference - 9 th February 2011 Mike Duncan, Skills Development Director

2 Focal Point For Skills Delivering the right skills for the industry now and in the future Identifying what s needed Developing world class skills standards We are... Assuring the quality of training provision Collaborating with Academia to ensure relevant education provision Working with government to ensure appropriate policies are developed & funding secured

3 What Is OPITO Doing? FORECASTING SKILLS FORUMS OPITO ATTRACTION DEVELOPMENT

4 Attraction - Engaging The Next Generation 70-80% E

5 Development Workforce Interventions Skills Utilisation project with RGU 3 industry pilots in progress Transformation Programmes 2010 pilot, 4 main disciplines - 70% take-up Identifying further opportunities with Industry Engagement with Kinloss & Government Skills Agencies Profiling candidate transferable skills Investigating Industry Skills Share Fair

6 Skills Forums Subsea & Wider Industry Providing a focal point on skills issues across industry Identifying common skills issues (communication/ research) Forum for collaborative work at a non-competitive level Collaboration with Industry skills bodies 5 sub-groups currently working on identified critical issues Leadership & Management (embedding behaviours) Skills / Knowledge Retention Technician Skills Employability Skills Workforce Planning

7 Evidence Is Growing...

8 Forecasting Identifying Emerging Themes Industry Trend & Investment Analysis 5 year outlook Identified Projects to P70 level Labour Market Survey (In Progress) Conducted by RGU & funded by Skills Development Scotland Output feeding into Government s Energy Skills Advisory Board 380 Companies approached across all sectors of Industry 144 respondents Broad representation of companies/sectors Sample representative of 67,000 staff /contractors Workforce Profile (In Progress) Workforce capacity actual / projected next 5 years

9 UKCS Activity Is Increasing Significantly UKCS Activity* + Investment Outlook 33 New Platforms 16 Operators tonnes topsides 8-12 Major Brownfield Modifications Upgrades/Compression/Accom Capex = 13bn OPEX = 25bn 40 Potential Sub-sea Tie-backs Investment similar magnitude to 2005 but with much more competition & constraint on labour * Source: OPITO 2010 Industry Trend Research Capex = 25bn OPEX = 30bn * Source: Oil & Gas UK Economic Report

10 FTE Impact On Skills Capacity New FTE s Includes attrition Correlated to ECITB data Total FTE = Off-shore Execution On-shore Engineering/PM Fabrication

11 Not The Perfect Storm But At Least A Force 9 Gale... Global Growth & Support UK Migrant Worker Cap Competition for Energy skills Broad Public Sector Cuts Fabrication Capacity GOM Aftermath

12 Emerging Themes from Labour Market Survey Signs of optimism across the market Strong majority of companies projecting growth next 5 years Nearly 50% companies forecasting growth next 12 months 2,000 vacancies across industry during 2010 Pressure from Increasing Diversification 70-80% E International Growth & Decommissioning Competition for skills from Energy / Nuclear / Power sectors Labour Market Needs Attraction & retention of skills - Concerns about ability to attract / recruit - Gender / Talent Pool issues Aggregate view of workforce demographics satisfactory but issues in key disciplines Knowledge retention & transfer also identified as a primary concern Broad satisfaction with qualifications but quality issues identified

13 Thank You... Lead and Decide Mike Duncan Skills Development Director OPITO T: M:

14 Addressing The Industry Skills Challenge Subsea UK 2011 Skills Conference - 9 th February 2011 Mike Duncan, Skills Development Director