Skills And Performance Strategy

Metals Sector Skills & Performance Strategy 2005

High quality engineers to lead change

Adding value and eliminating waste

Innovation and technology transfer

Management and leadership

Demonstration of employee competence

Culture change at all levels

High quality new entrants

Quality and availability of metallurgists and engineers

Skill levels and flexibility

Transferable skills and retraining

Contents

Metals Sector Skills & Performance Strategy 2005

Contents

1. Introduction 2. Facts & figures 3. Drivers for productivity and competitiveness 4. Implications for skills demand 5. Current qualification levels

4-8 9 - 13 14 - 21 22

6. Strategy to meet to the skills demand

23 - 24

7. Action plan

25 - 33

Appendix 1: Sector drivers linked to industry solutions

34

Appendix 2: Metals sector registered providers

35

Appendix 3: Main qualifications used in the metals sector

36

Appendix 4: Skills strategies in place for specific metals industries

37

Appendix 5: Industry solutions – company case studies Appendix 6: Metals sector businesses and employees in UK nations and regions Appendix 7: Sources of information and consultation

2

3

38 - 40 41 42 - 47

Metals Introduction Sector Skills & Performance Strategy 2005

1

Introduction

Introduction

Welcome to the Metals Industry Skills and Performance Strategy 2005. This updates similar strategies which have been in place for the metals sector for the past five years and provides: • a pen picture of the metals sector • a synopsis of employers’ views about the skills and business improvements required to maintain the sector’s competitive position • an overview of industry solutions that are already in place to meet identified needs • a list of action points that employers would like to see government address Case studies from some of the 500 companies which have benefited from industry solutions are included at Appendix 5. The Strategy has been produced following extensive consultation with employers, from large and small companies and in different parts of the sector, over the period October 2004-April 2005. Our Metals Forum trade association partners1 were instrumental in convening these groups, and also provided invaluable state of trade information. Metals Forum has already adopted the main findings in the Metals Forum Annual Report 2005 and continues to provide a significant ‘route to market’ for industry solutions and collaborative projects which are developed in response to priority needs. In 2005 Metals Industry Skills and Performance will become part of SEMTA, the Sector Skills Council for Science, Engineering and Manufacturing Technologies, and this Strategy will form the first two stages of a Metals Sector Skills Agreement. In that new form it will, we hope, both open up new partnerships and resources and engage yet more employers, and thus further the overall aim - to achieve measurable improvement in the business performance of the UK metals sector.

Lindsay Millington Chief Executive Metals Industry Skills and Performance July 2005

With thanks to Dawn Vinall for collating and editing the results.

1

See page 47 for a description of the Metals Forum and its member associations.

3

Facts Facts and & Figures Figures

Metals Sector Skills & Performance Strategy 2005

2

Facts & Figures

2.1

Footprint

The UK metals sector (comprising those companies which make, process, distribute and recycle metals, or fabricate metals for construction or other products) supplies vital raw materials, precision products and complete building structures to the manufacturing, public and service sectors. Every year, the metals sector: • produces

14 million tonnes of steel 1.2 million tonnes of castings 500,000 tonnes of aluminium • reclaims and processes 10 million tonnes of used or end-of-life metals a year • supports a national network of stockholding and distribution handling 16 million tonnes of ferrous and non-ferrous metals a year. The metals market covers a diverse range of industries, including aerospace, automotive, engineering, retail, leisure and public buildings and bridges, oil and gas extraction, power generation, telecommunications, defence, orthopaedic medicine, rail, domestic appliances, furniture and packaging. The metals sector footprint is depicted in the diagram on the next page.

2.2

Value Added

The metals sector contributes £38 billion per annum to UK GDP and creates close to £15 billion of gross value added (GVA) for the economy. This is: • 10% of all UK manufacturing GVA • twice as much as the automotive and aerospace industries.

Gross Value Added

Gross Value Added: 1995 - 2002

Manufacture of Basic Metals and Fabricated Metal Products

Metals compared to other sectors

£bn’s

£bn’s

14 12

£bn’s

14

£12.5bn

12

£10.7bn

20

10

manufacture of basic metals

8 £6.0bn

4

8 6

12.3

4 £3.0bn

16.1

Chemicals

14.9 11.4

8.4

2 0

95

96

97

98

99

00

01

02

Source: Office for National Statistics

10

Automotive Plastics

7.7 6.1

5.2

0

15

Machinery

10

manufacture of fabricated metals

2

16.4

Metals 16.6 15 15.5

£4.1bn

20

Electricals 17.4

£11.9bn

10

6

£bn’s

5 95

96

97

98

99

00

01

5

02

Source: Office for National Statistics

The UK metals sector has also invested £14.17 billion in the UK over the last ten years (excluding acquisitions). In addition, direct exports are also worth some £13 billion per year (£3.5 billion in scrap metal).

4

Metals Sector Skills & Performance Strategy 2005

Facts and Facts Figures & continued Figures

UK Metals Sector Footprint & Markets

telecommunications power generation

aerospace

process plant

automotive

orthopaedic medicine

metal forming

domestic appliances

metal packaging

Iron Aluminium oil & gas extraction

Steel

basic metals

treatment, coating & finishing Zinc

other metals manufacturing

engineering

Nickel Lead & other non ferrous metals constructional steelwork

casting marine

agriculture

furniture

chemicals

freight transport & rail

construction defence

This is the footprint previously covered by Metals Industry Skills & Performance (MetSkill) and SEMTA’s Engineered Metal Products Sector Strategy Group.

5

Facts & Figures

2.3

Metals Sector Skills & Performance Strategy 2005

Workforce

Total Employment The UK metals sector comprises some 30,000 companies employing 471,000 people across the UK (1 out of every 8 jobs in UK manufacturing). The metals sector directly employs nearly twice as many people as the chemicals industry and twice as many as the automotive sector, as shown in the table below. Indirectly, it is estimated that the metals sector supports a further 1 million people working in sub-contract businesses, such as site services, catering and general engineering. Twenty years ago, many of these services would have formed part of metals companies’ direct employment. This restructuring accounts for a significant part of the ‘decline’ perceived by the public.

Employment: 2002 Metals compared to other sectors

Metals

471

Electricals

417

Machinery

328

Chemicals

253

Automotive

222

Plastics

198

0

100

200 300 400 numbers of employees (000)

500

Source: Office for National Statistics

Note: Metals SIC codes 27 & 28 only for purposes of comparison with other sectors.

Age profile The metals age profile is toward the higher end of the spectrum, with 48% aged 45 and over. The all-industry average is just 35%.

Age Range

Percentage Employment

16-19

3

20-24

5.5

25-29

9.7

30-39

26.9

40-49

26.6

50-59

22.5

60 +

6 Source: Labour Force Survey 2001

6

Metals Sector Skills & Performance Strategy 2005

Facts & Figures

Gender The metals sector is heavily male-dominated. Whilst the figure has fallen slightly since 1995, over 84% of the workforce is male, compared with the all industry average of 55%.

Gender

Percentage employment 1995

Percentage Employment 2001

Male

85.5

84.5

Female

14.5

15.5 Source: Labour Force Survey 2001

Ethnicity The metals sector’s ethnic workforce composition has a white/non-white split of 96% and 4% This is broadly inline with UK industry as a whole, with a white/non-white split of 94% and 6% respectively.

Ethnic Origin

Percentage Employment 2001

White

96.3

Black Carribean

1

Pakistani

0.3

Indian

1.6

Black Other

0.1

Black African

0.2

Bangledeshi

0.1

Other

0.3 Source: Labour Force Survey 2001

Sub-sectors Employment by metals sub-sector is shown below. There are strong supply chain links between these industries, although each has its own specific processes and trade associations.

Industry

Employment

% Total Sector

Steel

70,000

15

Aluminium

20,000

4

Other non-ferrous metals

6,000

1

Casting

33,000

7

Metalforming

98,000

21

Treatment, coating & finishing

29,000

6

Metal packaging

7,000

2

Constructional steelwork

100,000

21

Service centres & distribution

30,000

6

Metals recycling

22,000

5

Other metals manufacturing

56,000

12

Source: Office of National Statistics Annual Business Inquiry 2002. SIC codes 27 & 28 [manufacture of basic and fabricated metals] plus: 45.21 [erection site contractors- steelwork consulting engineers only]: 51.52 [wholesale of metals & ores]; 37.10 [recycling of metal waste and scrap]; 51.57 [wholesale of waste and scrap].

7

Facts & Figures

2.4

Metals Sector Skills & Performance Strategy 2005

Company Size

Although the industry includes one of the largest UK companies, Corus Group, and a number of other large enterprises, approximately 88% of the workforce is employed in companies with less than 250 people.

2.5

Location

Employment in the metals industry is UK-wide, however, 62% of businesses and employees are located in five English regions: West Midlands; Yorkshire and Humberside; North West; North East and South East. The metals industry is also a very important part of the economy in Scotland and Wales.

Businesses 7%

2%

Employees 7%

4%

1%

6%

4%

8%

East Midlands 5%

East of England

9%

London

3% 12%

14%

North East

2%

6%

2%

North West South East South West

10%

12%

West Midlands

25% Yorkshire & Humber

19%

Wales 13% 15% 9%

Scotland Northern Ireland

5%

Source: Leicester University Centre for Labour Market Studies (2001)

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Metals Sector Skills & Performance Strategy 2005

Drivers for productivity and competitiveness

3

Drivers for productivity and competitiveness

3.1

Overview

Market trends From mid-2003, strong demand for metals, particularly in the ferrous sector, put pressure on available supplies, and a near-decadelong trend of falling metals prices was reversed during 2004 with some metals recording historic highs. As a result, metals producers have seen a marked turn-round in their business. But with mineral ores and energy prices surging, UK metals companies continue to look for production and supply chain efficiencies so that they can deliver the competitively priced materials that their customers need to succeed in their markets: selling completed goods like cars, planes and medical equipment, the components for them, or the capital goods needed to produce them.

Sustainability Metals are highly recyclable, so the sector is central to the UK’s success in achieving environmental sustainability. 10 million tonnes of metal is recycled each year, including 2 million vehicles, 3.5 million white goods and 2 billion steel cans. The industry also has strong local community roots and creates high added value using capital-intensive plant. Ultimately, it depends on a combination of advanced academic and technician level skills for year-on-year progress in process plant and product innovation. So, the sector also creates sustainable economic development across various levels of academic achievement, which is good for society as a whole.

Regulation and legislation Meeting the requirements of regulation and legislation is an increasing concern for companies, examples include: • Transport. More than 16 million tonnes of metal is moved around the UK each year, some of it several times, between originating mills or ports, secondary processing and further fabrication before distribution to the market. • Health and safety. In response to legislation, insurance costs and good practice, health and safety issues are a priority. Recent issues include working at height for those in steel construction, loading and unloading lorries and working on top of machines. • Climate Change. Notwithstanding the Climate Change Levy, which has imposed an unwarranted burden on UK companies, it is increasingly recognised that it is process improvement and business investment that is delivering energy savings, not the levy itself. • Energy. UK consumers re-contracting for gas and electricity supplies in the last twelve months have experienced massive increases in their bills. Large industrial consumers in the UK are typically paying 30-40% more for their gas and electricity than a year ago. • Working Time Directive. Twelve years ago the UK negotiated an opt-out from the Working Time Directive as part of Britain’s much more flexible approach to employment regulation. This flexible approach is now under threat.

Materials Innovation and Growth Team Early in 2005 the DTI launched an Innovation and Growth Team (IGT) dedicated to the £200 billion materials sector, of which metals is a significant part (see overleaf ). Organised through a joint government and industry forum, it is taking a look into what’s going to

9

Drivers for productivity and competitiveness

Metals Sector Skills & Performance Strategy 2005

be needed in 10 to 20 years time, what issues are most likely to shape the future of the sector, and how the UK should best respond to meet those developments. Business improvement and skills are important Task Forces within the IGT.

Metals Innovation The metals sector is at the forefront of innovation. 70% of steels used in automotive applications did not exist 10 years ago. 15% of a modern commercial aircraft is made from specially-developed steels. 50% of metal used in the Airbus A380 (by value) is manufactured in the UK. The UK steel industry’s light-weight automotive steels project has achieved 80% gains in rigidity and 25% reduction in weight, enabling major technical advances and cost savings.

3.2

Metal Sectors The following state of trade reports have been taken from the Metals Forum Annual Review 2005 (see page 47 for details). They indicate the diversity of the metals industries and show a buoyant sector actively responding to a wide range of market challenges.

3.2.1

Aluminium

The use of aluminium products continued to expand during 2004 in spite of price rises in primary metal. Significant gains have been made in transport, packaging and building and construction. Across Europe, primary aluminium production reached 4.4 million tonnes in 2004, an increase over the previous year of 5.6%, but Europe is still reliant on extensive primary metal imports. The UK aluminium rolled products sector has had good markets for beverage cans and packaging, lithographic sheet and automotive products. However, the aluminium extrusion sector faces the threat of a contracting market, coupled with very cheap imports from low labour cost countries. Benchmarking technology and competitiveness in the Italian extrusion industry has been one response. The stockholding sector, on the other hand, has had an excellent year across the board, but particularly in aerospace. The successful test flight of the new A380 Airbus has been a great boost to the UK aluminium industry, the wings being built in North Wales. Aluminium recycling rates continue to increase, a recent European study showed an aluminium recycling rate in building of about 95%. However, countries such as India and China are buying up an increasing proportion of these supplies, and it is likely that the actual act of recycling – the melting of scrap and production of new alloys – is increasingly likely to be carried out overseas in future. This trend has caused a significant loss of capacity in the UK recycling sector, a problem exacerbated by the demise of MG Rover, which was a significant user of foundry ingot.

3.2.2

Steel

World steel consumption rose by 9.3% in 2004, compared with historical trend growth of only 2%. Growth was particularly strong in China (13%), Central and South America (15%) and North America (14%). For the first time in history, the world produced over 1 billion tonnes of steel. Such rapid growth produced a very tight supply/demand balance up the raw material supply chain. Consequently, prices rose sharply. Iron ore prices rose by around 17% in the 2004 annual contract. Coke prices shot up by 130% in just four months. Shipping became in short supply, so that spot rates for transporting ore and coal leapt by 60% in one month in autumn 2003, fell back, then

10

Metals Sector Skills & Performance Strategy 2005

Drivers for productivity and competitiveness

surged again to an all time high in early December 2004. At its peak, the price of steel scrap in Europe rose by 70% in four months. Inevitably, steel prices started to rise as steelmakers tried to recover these unprecedented cost increases. Then, supplies became tight for some steel products themselves, enabling UK producers for the first time in many years to start improving their margins. And, while for most of the year European steel prices lagged behind US prices, the steady weakening of the dollar meant that the EU market became very attractive in the latter part of the year, leading to an increase in imports. Demand in the UK has been relatively healthy across most consuming sectors, but concern remains about the sluggishness of most of the Eurozone economies, particularly in the construction sector.

3.2.3

Foundry Industry

The level of activity in the UK foundry industry improved in 2004, with many foundries experiencing their highest level of activity for almost seven years. Whilst some of this improvement was due to business gained following the closure of other foundries, orders from new and existing customers also improved. Capacity utilisation increased, and most companies found it necessary to extend their lead times. Prospects for the immediate future remain firm. Coincident with this improvement in business was an unprecedented increase in the price of raw materials and energy. Whilst some foundries could recover cost increases through price rises and surcharge arrangements, companies on long-term or fixed price contracts experienced major difficulties. There is concern that if these high prices are maintained, customers will look to suppliers in the East to retain their competitive position. Historically, foundry closures have provided a useful pool of skilled labour but, over recent years, redundant workers have decided to seek employment outside the industry. As a consequence, there has been a significant increase in the recruitment of skilled workers from Eastern Europe.

3.2.4

Metalforming

Material in-put prices had an enormous impact on the metalforming sector’s performance over 2003-04, while some sub-sectors were able to pass on the extra prices, others could not. In some cases these price pressures stung customers into looking at alternative solutions for their material supply or even manufacturing elsewhere and then re-importing the finished products back into the UK. Thus, in general terms, while the forgings and sheet metal sub-sectors were able to maintain business and pass on additional costs, fastener businesses struggled and suffered significant margin squeeze where contracts or alternative suppliers did not permit the same flexibility. There have thus been hefty price increases in steel deliveries, at the same time as big gas and electricity price hikes. Consolidation of the smaller players within the metalforming industry has continued. However, there was also good news, as several large investments in modern automated press shops directly related to the motor industry were commissioned during 2004. Rolls Royce opened a new forging facility to manufacture turbine blades for aero engines near Glasgow; and, following Airbus’s success and its record order-books, fastener manufacturers supplying into the aerospace industry, both for airframe and for engines, are under pressure to increase capacity.

11

Drivers for productivity and competitiveness

3.2.5

Metals Sector Skills & Performance Strategy 2005

Service Centres and Distribution

The market share handled by stockholders and service centres is at an historically high level. However, pressure on cash-flow to fund inventories and receivables at higher prices, rigid credit terms applied by the steel mills, and the burden of government driven cost increases pose challenges. Distributors rely on the transport infrastructure, and the continuing increase in fleet operating costs as a result of working time restrictions, fuel price increases and congestion continues to be a prime concern. Health & safety has always been a high priority; steel processing is inherently risky, and the ongoing development of practical and clear guidelines for handling steel has to get more professional year by year. The projections for the iron ore, scrap, and coal/coke markets for the next few years, allied to the continuing increase in demand from China and other Asian economies, clearly demonstrate a trend of increasing steel prices and supply difficulties. To respond to the development of new products and solutions for users’ needs, in partnership with steel mills and others, will be a big part of the service model going forward.

3.2.6

Galvanizing

Like all metals related industries, the hot dip galvanizing industry was affected by the large increases in the price of its three main constituents: zinc, steel and energy (gas). Although galvanizing is a service industry, which never owns the (steel) product it applies protection to, the greatest impact was felt from the rise in steel prices. This meant that, in many cases where budgets had been set the previous year, fewer items could be made and galvanized within the money available. Despite this, it is estimated that the market contracted only slightly to about 800,000t in 2004, from a previous record of 830,000t in 2003. Certain sectors such as street furniture and construction continue to dominate the market for galvanized steel. Galvanizing benefits from its natural advantage as a highly sustainable method of protecting steel from corrosion. Recent lifecycle analysis work in Finland has shown that galvanizing contributes better long-term performance than many organic systems. The study considered three main lifecycle impact categories: global warming potential, acidification and photochemical ozone potential. Galvanizing had better results in all three. It is expected that, as the steel market comes back into balance and prices stabilise, the market for galvanized steel will continue to grow.

3.2.7

Metal Packaging

Demand for metal packaging during 2004 was disappointing in the speciality and industrial sectors and, whilst beverage cans showed 3% growth, there was no change in the market for food cans. Innovation was the driver for most activity with, new developments giving easier opening and enhanced convenience in the volume food market with curved tabs, peel seams in round and oblong cans, and single-serve pet food trays. Shaped food cans look set to be a growing trend. Beverage can manufacturers continue to push the boundaries on print, with some fine examples of high quality finishes on beer and soft drinks cans. They are also using their expertise to take the beverage can into new markets such as iced coffee drinks. In these traditional sectors, metal remains the choice for fillers looking for convenient, cost efficient packaging with good environmental credentials.

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Metals Sector Skills & Performance Strategy 2005

Drivers for productivity and competitiveness

In industrial products too there are developments giving enhanced convenience and safety. Paint cans are showing a lot of innovation with improvements in closure mechanisms, shaping, seaming and graphics. Paint can makers are capitalising on the striking visual effect of undecorated tinplate to create an attractive retro-look. Metal offers many advantages, not least is that it works with many different finishes – graphics, embossing or de-bossing. Manufacturers of promotional packaging and decorative containers are producing stunning examples of visually striking graphics, unusual tactile finishes and innovative shapes, whilst shaped aerosols offer new promotional opportunities for air fresheners, as well as health and beauty products.

3.2.8

Constructional Steelwork

2004 was challenging for the constructional steelwork industry: despite a 60% rise in steel prices, industry output and market share both increased and forward orders continue to be very healthy. Prices are now expected to be more stable. Price rises for steelwork in 2005 should be of the order of 5 to 7%. Steel construction demand in UK last year was 8% up on the previous year at a record 1.3 million tonnes (hot rolled sections and plate). Demand for cold rolled purlins, decking and cladding panels also increased. Steel construction continues to gain market share in a number of key sectors such as residential, hospitals and educational; last year steel’s market share in the multi-storey residential sector increased from 39 to 44%. In the single-storey sector, steel has 95% market share, and in the overall multi-storey sector steel’s share is 70% Price levels are sufficient to maintain a healthy level of investment in machinery, in material handling equipment, in computerised systems for design/control/operations, in training and maintenance, and in research and development of innovative products and methods.

3.2.9

Metals Recycling

Of the 10.4 million tonnes (mt) processed in the UK last year, 2.8 mt were delivered to UK steelworks, 0.9 mt to the foundries, 3.1 mt exported to EU member states and 3.7 mt went into deep sea installations. Compared to the frantic start in 2004, the early part of 2005 was somewhat muted in both the domestic and international markets. Last year was a good year in the UK non-ferrous metal recycling business. The continued underlying strength of the LME drove prices upwards with the exception of aluminium scrap. Demand for copper scrap remained strong, and for brass and copper alloy scrap it was extremely strong, with prices rising steeply in early 2005. Consumption of non-ferrous metals within the UK has continued to shrink over the last year, although demand in the European market has been buoyant for many UK merchants. There was a 7% increase in worldwide stainless steel production during 2004, to a record 24.3 million tonnes. Once again, the increase was led by Asia, in particular China. Chinese production growth saw an increase of 30% over the 2003 figure to 2.35 million tonnes. A worldwide increase in stainless steel production this year is forecast, growing by around 8% to 26 million tonnes. In the short-term, stainless steel scrap prices will be uncertain because of fluctuating nickel prices and falling iron prices. Overall, all areas of metals recycling could be described as healthy during 2004, and this is set to continue throughout 2005.

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Implications for skills demand

4

Implications for skills demand

4.1

Research Strategy

Metals Sector Skills & Performance Strategy 2005

MetSkill has a well-established research programme, developed over the last 15 years, which provides a detailed bank of evidence and labour market intelligence that underpins our knowledge and understanding of the UK metals sector and, in particular, its priority skills and business improvement issues. This knowledge is encapsulated in this Strategy, the first edition of which was produced in 2000.2 Every year the Strategy is reviewed and updated in consultation with employers, Metals Forum partner trade associations, trades unions, research and technology organisations, professional institutes and learning and training providers. 3 Priority needs are identified. These are based on a review of current drivers for productivity and competitiveness (see Section 3) together with research, surveys, competitiveness studies4 and consultation with companies as above.

4.2

Key Drivers

Ten key drivers have been identified that represent the most significant and continued strategic needs of metals employers.

Key Driver 1: Adding value and eliminating waste The UK has a large and innate demand for metal, however, recent years have seen challenges to UK production as imports continue to take an increasing share of the UK market. Company cost structures are also changing, with a growing trend for mergers and more UK operations owned by overseas companies. This is just one aspect of the increased globalisation. External pressures also include the ‘cost down’ demands of key customers, particularly in automotive, aerospace and construction. Such trading conditions and restructuring will continue to dominate the metals sector, both in the UK and overseas. To continue to compete effectively in the UK, companies need to add value, create additional capacity, drive down costs and eliminate waste within the process through: • • • •

developing strategic thinking in managers embracing world-class lean expertise improving processes and developing new ways of working building robust supply chain partnerships and leaner internal supply chains.

A series of ‘Competitiveness Analysis Reports’ on sub-sectors within the UK steel and metals industry, prepared between October 2000 and June 2001 for the Department for Trade and Industry (DTI)5, reinforce these needs and highlight the need to raise awareness of lean manufacturing and supply chain improvement techniques. In addition, a study, conducted by Cardiff University6 in 2001, showed the need to improve the understanding and application of supply chain management practices both within the single company and between customers and suppliers. Metals is one of eight key sectors where DTI has elected to invest7 in long-term, sustainable improvement in competitiveness through building capacity to address lean process improvement and supply chain partnership under Metals Industry Competitive Enterprise (MICE). The development of MICE8 as the metals sector ‘Industry Forum’ is in direct response to the above issues. (See Section 7).

2 3 4 5 6 7 8

14

Steel and Metals Industry Workforce Development Plan 2000, Steel & Metals Industry NTO See appendix 7 for list of organisations consulted in 2004 – 2005 DTI competitiveness studies, covering most of the sector, reinforce the picture of common strategic needs complemented by a limited number of specific needs in certain metals industries See Appendix 7 ‘Supply Chain Management & the UK Metals Industry’; (2001), Lean Enterprise Research Centre, Cardiff Business School £1.6m government investment in Metals Industry Competitive Enterprise (MICE) 2000-2004 MICE was launched in February 2000 with a £1.6m ‘pump priming’ grant from DTI

Metals Sector Skills & Performance Strategy 2005

Implications for skills demand

Key Driver 2: High quality engineers to lead change Metals companies require leading-edge expertise in production processes, energy-saving technology, information technology, environmental management and product development. In addition, the constant need for productivity improvement, as well as the drive for new teamworking, communication, motivation and leadership skills, means that companies need access to high quality engineers who can lead change. However, few metals companies can afford to recruit or maintain their own resource of such people. In addition there is a shortage of qualified engineers and scientists leaving university and entering the industry. Through the development of the MICE Engineer Team (currently 6 Engineers) the industry now has its own, shared cadre of high quality engineers who can lead change and business improvement - a partial response to this problem. (See Section 7).

Key Driver 3: Innovation and technology transfer The Technology Foresight9 programme recognised that people at all levels in the industry will require significant training to cope with expected technology change. Technology enhanced efficiency, together with process improvements and downsizing in response to competitive pressures, have knock on effects to the structure of the workforce and the working environment. Government has also invested some £5.5 million in the National Metals Technology Centre (NAMTEC), which signposts UK companies, especially SMEs, to vital resources within the UK science base, and seeks to identify and fill any gaps through the provision of R&D facilities. NAMTEC provides information on metals technology. In June 2005 NAMTEC was re-launched as a Research and Technology Organisation (RTO), with particular responsibilities for research and technology skills. (See Section 7). Both MICE and NAMTEC are part of a coherent, high profile, sector-wide drive to improve innovation, efficiency and productivity. These initiatives are backed by the industry and are supported by government and RDAs. Skills issues in these areas are also addressed by other metals-related RTOs, including the Steel Construction Institute, Castings Technology International and The Welding Institute.

Key Driver 4: Management and leadership A four-year metals industry Managers in the 21st Century project10 has identified the top three requirements for senior managers as: • managing change and performance improvement • business acumen and commercial awareness (especially market knowledge and a flair for identifying sound business opportunities) • behavioural skills and ability to manage people. For middle and junior managers, team working and leading, and the ability to manage and adjust to change were found to be essential behavioural skills. The survey also found, however, that 50% of managers lacked training relevant to these needs. The DTI Competitiveness Analysis Reports also identified the need to develop strategic thinking in managers to clarify and refine company corporate strategy.

9 10

Technology Foresight in the Steel Industry (1997) addressed the skills and learning implications of new technology ‘Steel Industry Managers in the 21st Century - Survey of Management Roles & Competences’; (1998)

15

Implications for skills demand

Metals Sector Skills & Performance Strategy 2005

Key Driver 4 continued More recently middle manager development has been identified as a key priority area for large and small companies across the sector. Particular needs are understanding of business strategy and lean techniques and the ‘soft’ skills required to manage a wide range of relationships and in today’s flatter structures. Management skills, therefore, are a priority issue for the future, particularly training and equipping managers at all levels to deal with business strategy, lean techniques and change, and to cascade the necessary skills down the organisation.

Key Driver 5: Culture change at all levels Competitive pressures and technological developments make achieving cultural change one of the greatest challenges facing metals businesses across the UK. Managers, in particular, require skills in managing change, human behaviour and relationships (see above). Typically, this means devolving ‘ownership’ within flatter ‘team working’ structures, together with increased levels of understanding of business priorities, the barriers to change and quality and customer service issues. A key feature of meeting this challenge is to adequately prepare managers and supervisors and other members of the workforce, and the adoption of flexible working practices against a backdrop of stability. Significant parts of the metals sector lack an understanding of current best practice in achieving culture change. Priority needs are: • • • • •

opportunities to learn from best practice, benchmarking and networks capability in influencing skills, team working, leadership and lean techniques understanding that developing people is a key contributor to business success encouraging personal skills development and lifetime learning encouraging people not in learning to learn (break the “anti-training” culture).

A culture where team-based continuous improvement, devolved responsibility, multi-skilling and personal development are the norm will do much to promote culture change. These are issues which can be addressed through a range of MICE, skills development and other sector responses.

Key Driver 6: Skill levels and flexibility Raising skills from Level 2 to Level 3 Over 50% of employees in the metals sector currently work at skills levels equivalent to NVQ Level 2. There is widespread agreement that skill levels need to rise if culture and working practices are to change. Evidence is also emerging that the sector has extensive needs in relation to basic skills11 and to multi-skilling. New skills and processes Increasing use of a team culture and lean manufacturing techniques is becoming more common across the industry and requires new skills and procedures. There are also needs in particular skill areas: • parts of the sector, notably casting and stainless steel, are subjected to large and fast moving changes in technology requiring continual updating of skills and knowledge • new communication technologies (including e-business) need to be addressed • developments in advanced metals and process technologies are highlighting the need for higher-level skills, particularly in certain regions • basic skills problems (poor literacy and numeracy) are emerging as a growing barrier to up-skilling (see next page). 11

16

‘Basic Skills in the Metals Industry’; (2002)

Metals Sector Skills & Performance Strategy 2005

Implications for skills demand

Employer investment and supply A 2001 survey12 confirmed that metals sector companies were prepared to maintain their levels of investment in their people even though trading conditions had been difficult in the year preceding the survey. 80% of the companies responding reported an average of 1-3 days of training per employee for the second year in succession, up from 50% in 1998. However, there was a move towards more focused 1-day sessions delivered in-company, and towards on-the-job training. Very little sector training need is met by the FE sector. Employers have a real opportunity to improve learning and skills, but not all employers are exploiting the full potential of their people. There is a need for a greater uptake of training and management development opportunities within the sector, particularly amongst smaller companies, including the exposure of industry specialised managers to improvement ideas from other sectors. However, a lack of suitable courses (14.3%) and local provision (11.6%) were cited by metals employers as being significant barriers to maintaining a fully proficient workforce. Basic Skills The introduction of new equipment, business improvement activities, team-working and health and safety activities all identify problems in basic skills. Increasingly detailed requirements with respect to safety, risk and environmental management also put additional pressure on those who hitherto have managed to get by with low levels of literacy and numeracy. However, activities such as MICE process improvement workshops and the Health and Safety Passport are proving useful means to exposing and addressing such needs and, through these activities, more employers are accepting the importance of addressing basic skill needs.

Key Driver 7: Transferable skills and retraining The extent to which companies in the metals sector can take forward technological, process and supply chain improvements is strongly influenced by their ability to maintain a workforce of suitably skilled and committed people. Beyond the need to recruit more young people into the sector, there is also a growing need to develop the existing workforce to higher skill levels that encourage transferability and more flexible working. Ageing workforce issues The age profile of the sector generates specific problems including: • much of the industry knowledge is in people aged over 50, in management, supervisors and skilled labour. For example, foundry specialists are over 50 years of age. • the industry need to recruit c. 117,000 new entrants13 (including school leavers, graduates and adults) to replace those that will be lost due to natural wastage by 2010. The intake of younger recruits has dropped significantly and, consequently, this situation is getting worse. If no action is taken, this will have a major impact in the next 10 years with an ageing workforce, a drop in skills, a reduction in graduates, and a general falloff in younger recruits to the industry. The industry has identified a need for significantly enhanced careers and recruitment initiatives (see below), as well as more widespread use of computer technology to capture knowledge and expertise before it leaves the industry is needed. Some companies are turning to adult recruitment as a response to demographic changes and school retention, which limit the availability of young people. In this, a shortage of local skills is showing a trend towards recruitment from Eastern Europe. Whilst this is not seen as a long term solution, since such workers are likely to return home in due course, it raises a requirement for streamlining induction, assessment and ‘top-up’ training processes. 12 13

‘Peoples Skills Scoreboard For Steel & Metals’; (2001) Source : IER 1999

17

Implications for skills demand

Metals Sector Skills & Performance Strategy 2005

Key Driver 7 continued Meanwhile, volatile trading conditions means that some companies’ growth is matched by others’ demise and downsizing. Clearer identification of transferable skills can both help companies recruit and retain employees and provide ‘portability’ for those forced to leave.

Key Driver 8: Demonstration of employee competence The DTI Competitiveness Analysis Reports14 on sub-sectors within the UK metals industry also found low levels of employees with competence training or professional qualifications:

Source: DTI Competitiveness Analysis Reports

Employees with competence training

Steel - Primary

Metal Production

Recycling

Fasteners

Forgings

Presswork

32%

30%

16%

22%

21%

29%

14%

11%

7%

7%

10%

5%

Employees with professional qualifications

In addition to the above figures, British Constructional Steelwork Association data on qualification levels show that only 15% of employees in the constructional steelwork sector are working at Levels 3 to 5, and very few have an actual qualification to prove their competence. Overall, some 40% metals sector employees have no qualifications relevant to the world of work. Prior to the 1990s, the industry has no history of vocational qualifications for shop-floor operatives, as existed in other sectors such as engineering. As a result of a 10-year development programme, Occupational Standards and National Vocational Qualifications (NVQs) are now available for all occupations with the sector. (see Appendix 3). These industry relevant and competence-based qualifications were originally developed, and have been recently reviewed and updated, with the close involvement of employers through sector-led steering groups. They are available through a range of quality assured preferred suppliers and, through MetSkill, the industry has put in place a range of regional and sub-sector workforce capability strategies which are significantly increasing take up of these NVQs. Through these programmes, some 10,000 individuals have taken part in qualifications related programmes over the past five years.

Key Driver 9: High quality new entrants As a competitive, high-tech and lean industry, the metals sector needs to attract even better new entrants, particularly at schoolleaver and graduate levels. Fewer than 3% of the industry’s employees are under the age of 2115 and, despite a predicted decline in overall numbers employed in the sector by 2010 due to technological and productivity advances, there will be a net increase in employees needed of around 117,00016. However, an ageing workforce means that the sector is losing employees faster than it is recruiting them; whilst flatter structures and new working practices require recruits that are more capable than ever before. Recruitment is hampered by the reduced number of available young people and public perception that the sector is in decline. Employers are concerned that education, at

14 15 16

18

See list of information sources in Appendix 7 Labour Force Survey Source IER 1999 [taken from the Process Industries Skills Dialogue , July 2002]

Metals Sector Skills & Performance Strategy 2005

Implications for skills demand

school and university level, often fails to prepare or enthuse young people for careers in industry. The current plethora of provision and education-industry initiatives confuses both employers and parents/young people, and whilst there is much good content, has failed to impact on the sector’s needs. Meanwhile, there is an opportunity to build new links with education as schools develop the 14-19 curriculum and higher education introduces new approaches such as Foundation Degrees. The Metals Academy, owned and led by employers: • is a strategic response to the sector’s need to attract and retain high quality new entrants • builds on existing sector initiatives run by MetSkill and others and draws together the best education, careers and apprenticeship/graduate training provision, nationally and regionally • provides a ‘one stop shop’, reducing confusion for employers and young people. Section 7 contains further information on Metals Academy.

Key Driver 10: Quality and availability of metallurgists and engineers Companies also report that it is increasingly difficult to get graduates with the right subjects at degree level. Expansion of higher education and more choice for students, means that potential students at ‘A-level’ are not taking the right subjects, e.g. maths and sciences, to get on the degree courses the industry requires. Because of this problem, and the nature of funding for universities, departments in critical subjects like materials science, chemistry and physics are closing or, at best, amalgamating. In parallel with promotion of apprenticeships, the metals sector needs to raise its profile and image with young people, graduates and post graduates if it is to attract sufficient high calibre entrants. Meanwhile, with fewer students, metals and metallurgy forms an even smaller part of materials, architecture and other related degrees. Smaller companies have embraced the new development routes for intermediate skilled jobs, such as Apprenticeships and National Vocational Qualifications, but find recruitment and retention of graduates a problem. They have much to offer graduates seeking leading-edge practical experience and responsibility at an early stage in their careers, but need increased help to plan development programmes to ensure that their particular benefits are presented to as wide an audience of potential recruits as possible. There is some developing interest in new progression routes and links between industry and academia to enable the most able technicians and team leaders to obtain vocational degrees and other knowledge accreditation. To meet this need the industry, through MetSkill, direct company links, and through relevant professional bodies, works with several universities and bodies, such as City and Guilds and BTEC, to make in-service Masters and Foundation Degrees and other vocational awards available. Promotion and take-up of these awards, however, remains a challenge.

19

Implications for skills demand

4.3

Metals Sector Skills & Performance Strategy 2005

Other Specific Needs

In addition to the ten key drivers in section 4.2 above, a number of skills gaps and shortages have been identified in specific parts of the metals industry:

Steel • • • •

Multi-skilling of operators Shortage of craft skills, particularly maintenance engineers and welders Shortage of metallurgists and metallurgy expertise Specialist skills in the welding and fabrication of stainless steel.

Aluminium • Due to the diverse technology employed in the industry, companies have specific requirements that are not satisfied by conventional college and university courses • Specific industry training in fabrication technology and product knowledge • Environment and energy management & shop floor expertise • Sales and customer service.

Other Non-Ferrous Metals • Skills to underpin capacity for innovation and use of new state-of-the art technology available to the industry • Greater use of standards-based training and use of metals NVQs

Casting • Specialist foundry skills • Industry-specific multi-skilling of first line operatives and technicians • Skills relating to sub-contract workforce.

Metalforming • • • • • • •

Selling skills for sales engineers and technicians Technical skills in metal forging and fastener manufacture Tool-making skills Relevant die design and press operator training Shortage of skilled electrical and mechanical maintenance engineers IT literacy in design, computer controlled manufacturing and e-commerce Multi-skilling in production.

Treatment, Coating and Finishing Contract heat treatment • New value adding skills, such as inspection, packaging, non-destructive testing • Skills in new technologies for new markets, such as. PVD, CVD technologies. Metal finishing • Higher levels of health, safety and environmental competence • New value adding skills for tank-side employees, such as laser marking (check) • New skills for new markets, such as computer components • Shortage of new recruits, especially young people for apprenticeships.

20

Metals Sector Skills & Performance Strategy 2005

Implications for skills demand

Surface Engineering • Application of standards based training • Need for more industry specific provision, e.g. electroplating • Awareness of e-business and electronic trading in the industry. Galvanizing • Technical skills training (e.g. latest hot dip galvanising techniques) • ‘Top-up skills’ for Eastern European recruits .

Constructional Steelwork Craft skills shortages, particularly welding and plating Shortage of graduate engineers with knowledge of structural steelwork and/or for future management roles Shortage of 3D CAD design engineers and detailers, technicians and estimators Training and competence-based qualification for steel construction erectors to meet the construction industry’s Skills Card Scheme requirements • Multi-skilling and standardised training in erection and cladding skills. • • • •

Metal Packaging • Multi-skilling of operators • Skills in high-speed manufacturing, product handling, preventative maintenance, problem solving, and advanced metal forming and finishing techniques • IT capability.

Service Centres and Distribution • Very few employees have any formal qualifications • Metals industry awareness, including primary metal production, semi-fabrication, finishing and recycling, as well as stockholding • Low capability of smaller companies to train their employees • Sales and customer service, negotiation and influencing skills, effective communication and performance management skills • Provision for the large number of ancillary workers employed in the industry.

Metals Recycling • Only c. 10% of employees hold formal qualifications • Higher levels of health & safety and environmental competence needed • Understanding and implementing the compliance criteria for legislation and regulation, e.g. End of Life Vehicles and WEEE directives • Certificate of Technical Competence to meet Environment Agency requirements • Negotiating skills for buyers and sellers of metal • Standardised approach to driver and operator training • Need to widen and strengthen individuals’ technical skills • IT skills gaps at all levels

21

Current qualification levels

Metals Sector Skills & Performance Strategy 2005

5

Current qualification levels

5.1

Employment by Highest Qualification Held

The 1995 and 2001 Labour Force Survey results, compared in the table below, show that there has been an improvement in qualification achievement in the metals industries (SIC codes 27 & 28 only). By 2001, 7% more employees held relevant qualifications and 5% more were qualified to NVQ Level 3. It is expected that, by 2006, the proportion of NVQ 3 qualified will have risen still further.

UK percentage of total metals employment, autumn figures Year

No Qual


NVQ2

NVQ3

NVQ4

1995

20.6

22.3

21.4

23.5

12.1

2001

13.9

21.4

22.2

28.2

14.3

Whilst the above data paints an increasingly positive picture, it should be noted that it excludes parts of the metals sector in which qualification levels are extremely low, such as metals recycling. Considered as a whole, it is estimated that up to 40% of the total workforce is unqualified.

5.2

Projected Employment Change by Main Occupational Groups

Metals Sector Occupational Group

% 1999

Number 2010

% 2010

% Change

% All Sectors

Corporate managers

10.4

46667

10.9

-18.5

8.3

Science/technical professional

3.3

16654

3.9

-7.8

28.2

Business/public service assoc. prof.

3.8

17969

4.2

-14.7

26.1

Admin & clerical

4.8

19352

4.5

-27.5

5.5

Skilled metal/electrical trades

24.6

102697

23.9

-24.4

-7.4

Skilled construction trades

6.7

26921

6.3

-27.1

-6.5

Process plant & machine operatives

13.7

57629

13.4

-23.7

-8.4

Transport drivers & operatives

7.1

31194

7.3

-20.0

2.4

Elementary: trades/plant/machinery

9.4

44210

10.3

-15.1

-2.2

Elementary: clerical/service

5.9

21653

5.0

-33.8

-5.7

All occupations

100

428827

100

-22.4

7.7

Source: IER, data for SIC codes 27 & 28 [Note these figures exclude other parts of the metals sector – SIC codes 45.2, 51.52, 37.10 and 51.57].

22

Metals Sector Skills & Performance Strategy 2005

Strategy to meet to skills demand

6

Strategy to meet to skills demand

6.1

The strategy to meet the skills demand is summarised in the diagram below.

To respond effectively to business needs, companies are seeking: • • • •

Industry solutions that are flexible and accessible Improved access to high quality, value for money providers Programmes to meet specific needs affecting only parts of the sector Funding – particularly to ‘pump prime’ activities until business results can be demonstrated to colleagues and investors.

Engagement of a wide range of metals industry leaders and companies

Impact Forward Thinking to identify business drivers and strategies for change

Industry Solutions to meet strategic needs, building on international best practice and national standards [incl. qualifications & frameworks]

- sector influence - company-level performance improvement - companies’ access to funding - take-up and customer satisfaction

Resources best value for money provision, including high quality engineers who can lead change; funding; and new product development

23

Strategy to meet to skills demand

6.2

Metals Sector Skills & Performance Strategy 2005

Industry Solutions

Ten ‘standardised’ business-oriented products and solutions to address the needs most frequently raised by employers have been developed, drawing on world best practice and national occupational standards as appropriate. These have the twin aims of: • volume impact - increasing take-up and reaching all parts of the sector • quantifiable business benefits within individual participating companies. The ten products are: • • • • • • • • • •

MICE Process Improvement Workshop MICE Supply Chain Improvement Programme MICE Policy Deployment Workshops for Senior Managers MICE Management Lean Awareness Workshops Metals Industry ‘Middle Managers’ Programme17 Metals Industry Leadership Development Programme Metals Industry Teamwork Training Programme Metals Industry Health & Safety Passport & Passport PLUS Metals Academy Metallurgy for the Non-Metallurgist Programme

Development of these industry solutions is underpinned by the sector’s national occupational standards and frameworks, including NVQs, vocational qualifications, apprenticeship framework, graduate apprenticeship framework, foundation and high level degrees. These qualifications and frameworks are developed with a very high level of employer involvement and are listed in Appendix 3. The relationship between the industry solutions and the ten key drivers, described in Section 3, is set out in diagram form in Appendix 1. The industry solutions are described in more detail in Section 7.1. Since the Strategy was introduced in 2000, companies and 10,000 employees have benefited from skills and culture change programmes, and these activities are saving the industry an estimated £20 million per year. Already, four companies report savings exceeding £1million a year. The results achieved through implementation of the above products between 2000-2005, and forecast for 2005-06, are shown in the table below:

2000-2005

2005-2006

525

300

Participating employees

10,047

5,353

Qualifications achieved through these activities

3,352

2,476

Funding obtained to support companies

£3.8m

£2.3m

Financial benefits for companies (conservative estimate)

£30m

£20m

Companies using industry solutions

17

24

Newly developed in 2004-05 responding to industry needs. Programme to be launched in June/July 2005

Metals Sector Skills & Performance Strategy 2005

7

Action Plan

7.1

Solutions in Progress

Action Plan

Industry solutions in response to Key Driver 1: adding value and eliminating waste Metals Industry Competitive Enterprise (MICE) MICE, launched in 2000 with support from the DTI, is owned and led by the metals industry and employs a team of 6 highly-trained business improvement engineers, who use proven kaizen techniques, such as 7 wastes, 5C, set-up time reduction, etc., to measure and capture existing company expertise and engage and motivate company employees to learn new skills and drive improvements that will genuinely create value for the company. Recognising the critical importance of spreading awareness of lean principles and practice within the industry, MICE partners - UK Steel, National Association of Steel Stockholders (NASS), Confederation of British Metalforming (CBM), MetSkill, the Non-Ferrous Alliance (NFA), the Galvanizers Association (GA) and the Cast Metals Federation (CMF) - have been actively promoting MICE to their member companies. Some of these organisations have run targeted MICE activities within their specific parts of the sector. A range of value-adding products have been developed by MICE to meet the specific needs of metals sector companies. In particular, the MICE Process Improvement Workshop and Supply Chain Improvement Programme have achieved impressive results. Between 2000 and 2005: • 130 companies have used the MICE products • 31 (so far) of these have returned with repeat business • 199 company projects have been undertaken • 90% companies report improvements are sustained/enhanced one year on • £220k average savings have been made by companies • £30million plus savings/financial benefits have been achieved for the metals industry • £1million plus worth of benefits have been recorded by 4 companies In addition, a range of measurable Quality Cost and Delivery improvements have been recorded:

Average

Highest Achievement

Not right first time

46%

100%

Delivery schedule achievement

58%

359%

People productivity

36%

192%

Stock turns

43%

138%

Overall equipment effectiveness

15%

60%

Value added per person

19%

62%

Floor space utilisation

25%

140%

25

Action Plan

Metals Sector Skills & Performance Strategy 2005

Quotes from employers: “The gains Corus and other metals companies UK-wide have experienced through working with MICE are so considerable; no company can afford to ignore them.” Andrew Page, Managing Director, Corus Construction & Industrial “One of the significant benefits of MICE, aside from the monetary savings, is that we now have a team with skills and knowledge that are invaluable.” Alan Gibson, Operations Director, Vald Birn “Some of the benefits MICE has brought have been instant…but we predict the result of our year on year savings and increased capacity will be much more significant.” Richard Morley, Managing Director, Caparo Merchant Bar

Industry solutions in response to Key Driver 2: high quality engineers to lead change Through MICE, companies have access to a team of highly trained and experienced improvement Engineers to help them target improvement priorities and spearhead change across the workplace. During MICE activities companies are also able to identify and develop their own engineers as ‘change agents’. Working alongside the MICE Engineers, the company engineers learn firsthand the skills and techniques necessary to implement and sustain continuous improvement and change activities. By adopting this approach, one year on over 90% of MICE companies report improvements that have been maintained or further enhanced. In addition, NAMTEC (see below) is working with employers and other partners to increase the number of graduate and postgraduate engineers entering the industry (see industry responses to Key Driver 10).

Industry solutions in response to Key Driver 3: innovation and technology transfer The National Metals Technoloby Centre (NAMTEC) provides support services to metals companies, including technical advice and assistance and in securing funding to support innovative R&D projects, environmental improvement and capital investment programmes. Since March 2002, NAMTEC has handled over 2,000 enquiries and provided support to around 700 companies. With the support of the DTI, Yorkshire Forward and Objective 1 (South Yorkshire), NAMTEC also provides knowledge transfer services, including a telephone technical helpline and on-line information and technical databases. NAMTEC’s ‘Metals Information for the 21st Century’ project, which is being developed in partnership with the Welding Institute, the World Metals Index, the Institute of Materials and Granta Design, will provide metals companies with low cost, web-based access to materials on engineering metals and welding consumables.

Industry solutions in response to Key Driver 4: management and leadership MICE runs in-company workshops and simulation exercises to improve management skills in Strategic Policy Deployment and Lean Awareness to ensure managers are equipped to get the most business benefits out of process and supply chain improvement activities. The range of management skills covered includes: • Practical understanding of Lean • Managing change • Value stream management (VSM)

26

Metals Sector Skills & Performance Strategy 2005

Action Plan

The Metals Industry Middle Manager Programme has been developed this year specifically to address managers’ strategic and behavioural skills. Led by a steering group of senior employers, the Middle Manager programme will provide a structured, modular training programme covering the skills needs metals employers most need from their managers These include: • • • • •

understanding of overall business strategy and key performance indicators business improvement techniques leading change coaching skills performance management.

Managers on the programme also complete a project, and are assessed in the workplace to achieve a NVQ Level 4 qualification. The development of the Middle Managers programme, including a pilot involving 30 managers from 4 companies that commenced in June, has been financially supported by the Iron and Steel Industry Training (West Midlands) Trust. Funds from the Welsh Assembly will help support the first 100 managers in Wales through the programme, which will commence in autumn 2005. See also Leadership Development below.

Industry solutions in response to Key Driver 5: culture change at all levels Metals Industry Leadership Development Equips managers, supervisors and team leaders with the skills necessary to: • • • •

Implement and manage flexible working methods and teamworking Increase the motivation and performance of employees Effectively communicate company objectives Lead continuous improvement.

Metals Industry Teamwork Training Aimed at production operators and shop floor personnel, this programme enables team members to: • • • •

Work more flexibly in their job and with others Deal effectively with culture change and new working practices Help improve safe working and reduce the risk of accidents Solve problems and make more effective decisions within their own sphere of work.

Both the Leadership and Teamwork programmes combine off-the-job training and in-company activities or project work with workplace assessment leading to a full Metals Processing NVQ at Level 2 (Teamwork) or Level 3 (Leadership).

Between 2000 – 2005 the following results have been achieved through these programmes:

(*as at May 2005, remainder of candidates still on programme)

No. companies

No. candidates

NVQ completions*

Leadership Development

153

1394

718

Teamwork Training

72

843

640

27

Action Plan

Metals Sector Skills & Performance Strategy 2005

Leadership and Teamwork continued Employers report substantial business benefits, including: • • • • •

increased employee productivity cost savings up to £500k reported by some companies increased production capacity a more committed and flexible team spirit improved employee motivation, involvement and ownership of responsibilities

Quotes from employers: “The Leadership Development Programme has enabled our team-leaders to make a more effective contribution to the business plan. It has … harnessed individual competitiveness as a team strength to overcome problems and drive forward improvements.” Peter Mills, Operations Director, Tyco European Tubing “We’ve found the Leadership programme highly effective… as a result, the business now has increased options in areas such as succession planning.” Mick Hood, HR Manager, Corus Engineering Steels “The Teamwork Programme has given our teamworkers relevant skills and qualifications and has helped us develop a new companywide attitude that has given us far greater flexibility and opportunities. Output per employee has increased, our teams now selfmanage their work, and absenteeism is cut by half.” Steve Blount Works Manager, Parsons Chain “Many of our employees had no formal qualifications and the sense of pride and motivation the teamwork development programme has given them has been very rewarding.” Lynne Humphries, HR Manager, Bridgnorth Aluminium In addition to the Metals Industry Leadership and Teamwork programmes, MICE activities within companies are also succeeding in involving the workforce and changing company culture.

Industry solutions in response to Key Driver 6: skill levels and flexibility In addition to the MICE, NAMTEC, Middle Manager and Leadership and Teamwork development activities previously covered, the Metals Industry Health & Safety Passport & Passport PLUS programmes (see industry solutions in response to Key Driver 8) are helping to engage companies and employees that have never before taken part in any formal training activities and are exposing basic skills needs. In addition, a number of LearnDirect courses that are freely available to individuals have been identified as being of particular relevance to common basic skills problems in metals companies. Companies contacting MetSkill for advice and guidance are also signposted to the range of provision offered by Metals Industry Registered Providers (see Section 7.2).

Industry solutions in response to Key Driver 7: transferable skills and retraining MICE products and the Metals Industry Leadership, Teamwork and Passport programmes and Apprenticeships, as well as activities and resources to assist basic and key skills development, are all providing valuable transferable skills for adults and young people

28

Metals Sector Skills & Performance Strategy 2005

Action Plan

entering and leaving the industry. They contain development in generic skills useful in all work situations, such as communication, working with others and problem solving.

Industry solutions in response to Key Driver 8: demonstration of employee competence Whilst the Metals Industry Leadership and Teamwork programmes, NVQs, VQs and Apprenticeships are helping to improve skill and qualification levels in the sector, the metals sector traditionally has very little history of qualifications, and over 40% of employees remain with no formal qualifications relevant to the jobs they are doing.

Metals Industry Health & Safety Passport Training, knowledge test and competence assessment to NVQ Level 2 unit in essential health and safety practice for production operators and other shopfloor workers to: • • • •

demonstrate that employees have achieved the recognised industry standard in health and safety improve individual employees’ capability to reduce the risk of accidents provide ongoing assessment against the Passport standard act as a stepping stone to further learning and qualifications.

Metals Industry Health & Safety Passport PLUS A more advanced programme for supervisors, teamleaders and managers. Training, knowledge test and competence assessment to NVQ Level 3 unit in promoting a health and safety culture in the workplace. The Passport Plus programme provides: • an industry-specific best practice standard in managing safety • evidence of competence according health and safety regulations for key individuals • a proven framework for the implementation of a company health and safety improvement plan. The Passport programmes were developed in response to the priority business issues of spiralling Employers’ Liability insurance and accident claim costs and increasingly stringent regulation, however they also set the standard for health and safety competence within the industry and, as such, have become a “Trojan horse” to getting companies not previously engaged to invest in standardsbased training and NVQs. Recognising the positive contribution made by the Passport programmes to raising standards of health and safety in the workplace and helping with the wider issue of insurance premiums, Metals Forum trade associations have been actively promoting use of the Passport to their member companies. In the case of NASS and the British Metals Recycling Association (BMRA), they have adopted ‘badged’ schemes to encourage take-up. In April 2005 the Passport and Passport PLUS were awarded approval from the Royal Society for Prevention of Accidents (ROSPA).

Between 2002 and 2005 the following Passport results have been achieved:

(*as at May 005, remainder of candidates still on programme)

Passport & Passport Plus

No. companies

No. candidates

NVQ completions*

151

1854

1191

29

Action Plan

Metals Sector Skills & Performance Strategy 2005

Passport and Passport PLUS continued Employers report a wide range culture change improvements, as well as tangible business benefits, including: • Lower insurance premiums • Reduced lost-time accident frequency and claims costs • Better health and safety compliance across the workforce • A first qualification for many employees and the encouragement to go on further

Quotes from employers: “We saved between £10,000 and £15,000 on our employers’ liability insurance by all or our employees achieving the Health & Safety Passport or Passport Plus. Without it we would probably not have got insurance at all; the scheme has literally saved our business.” Matthew Power, Managing Director, DMC Recycling “The Passport scheme has done exactly what we wanted it to do – changed attitudes and opened people’s eyes to their personal responsibilities. The proof that it works? - 75% reduction in lost-time accidents.” Eric Burgess, Health & Safety Manager, Sapa Profiles “It is a constant battle to keep up with health and safety legislation. The Passport raises awareness and this means that our employees can better contribute to their own safety and that of colleagues. It also helps them keep abreast of developments through the requirements for re-accreditation.” Jonathan Storer, HR Manager, Bekaert Fencing “The Health & Safety Passport is an endorsement that gives us assurance that each of our operators are capable of working consistently to the demanding safety standards of the metals industry.” Terry McMahon, Operations Manager, J B & S Lees

Industry solutions in response to Key Driver 9: high quality new entrants Metals Academy Metals Academy has been launched in 2005 to draw together, enhance and raise the profile of MetSkill’s education, careers, apprenticeship and graduate activities. Owned and led by employers, Metals Academy will: • respond to the sector’s need to attract and retain high quality new entrants • build on existing sector initiatives run by MetSkill and others and draw together the best education, careers and apprenticeship/graduate training provision, nationally and regionally • provide a ‘one stop shop’, reducing confusion for employers and young people A range of co-ordinated services is being developed at national and regional level, the latter built around a common model (see below). In the pilot phase the regional focus is on apprenticeships and on two regions: South Yorkshire and the Black Country, with national resources available more widely. It is planned that in future years the model will extend to graduates and other new entrants and to other UK regions/nations. Building on the best of what is already available, activities are designed to meet one or more of the following objectives: • to generate interest and commitment amongst young people, pre and post recruitment • to influence the education curriculum and ensure appropriate training is available • to improve value for money and ease-of-access for employers

30

Metals Sector Skills & Performance Strategy 2005

Action Plan

Metals Academy Model National resources currently in place/ in development include: • web-based promotion, incl. ‘career-fax’ and ambassador profiles • web-based Education-Resources Directory : signposting over 40 schemes relevant to sector employers • frameworks and qualifications : apprenticeship, graduate, M.Sc., foundation degree, BTEC, City and Guilds • materials : best practice guide to work experience (in development) : key skills workbook • lobbying activities, through SEMTA, EEF, Metals Forum or direct Regional activities are being developed around a common model, piloting in South Yorkshire and the Black Country, and later to be replicated elsewhere. There are four key strands: 1. Education/careers activities • partnership and strategy developed with 3-6 schools in each region, to include : structured work experience programme : teacher placements in companies : ‘ambassador’ visits to schools (using apprentice ambassadors) : school visits to industry • local press advertising and careers events; briefing for Connexions staff to develop into Higher Education links 2. Brokered recruitment and provision • web-based job-shop; one-stop recruitment and pre-interviews • LSC-funded apprenticeship training, brokered through a range of providers • support for employers and apprentices to develop for graduate entrants 3. Training enhancements • including lean manufacturing; health and safety passport to develop for graduate entrants 4. Peer group network activities • including apprentice lectures; football teams, etc.

Industry solutions in response to Key Driver 10: quality and availability of metallurgists and engineers NAMTEC’s objectives include to increase the number of graduate and post-graduate metallurgists and engineers entering the industry, for example, through developing new Foundation Degrees, sector specific higher degrees and a new metals and manufacturing Doctorate programme in conjunction with the two Sheffield universities. It also seeks to provide additional training of the current graduate workforce, and provide bespoke technical training packages that complement the existing metals industry leadership, teamwork, health and safety passport and MICE process and supply chain improvement programmes. Flexible programmes providing ‘Metallurgy for the Non-Metallurgist’ are also available when companies need to train nontechnical employees in basic metallurgy so that they can better understand the industry and the processes employed in making the products their business produces.

31

Action Plan

7.2

Metals Sector Skills & Performance Strategy 2005

Industry response to delivery and supply issues

Collaborative action Working through MetSkill and in partnership with other sector bodies, employers have come together regionally and nationally to devise largescale projects based on the drivers and industry solutions featured in this Strategy. This has resulted in metals sector programmes in the last five years linked, for example, to teamwork skills, leadership development, process improvement and supply chain work. Over 500 companies and 10,000 employees have participated since 2000 (see Section 6).

Funding The collaborative approach described above has involved working with a variety of public sector bodies where common ground between sector needs and government/community priorities has been identified. Over the past five years funding has been secured from bodies such as the Learning and Skills Council, Manufacturing Advisory Service, ELWa, Scottish Executive, Advantage West Midlands and Yorkshire Forward RDAs. The Iron and Steel Industry Training (West Midlands) Trust has also supported the strategy financially over a number of years.

Registered provider database The Metals Industry Registered Providers Scheme provides metals companies with improved awareness of, and access to, high quality products and services from a national network of recognised suppliers. It is also designed to enable providers to work more closely with the metals sector to improve delivery capability matched to the specific needs of metals companies. The 47 current metals industry registered providers are listed in Appendix 2. MetSkill also maintains a database of all known providers of training and business support services to metals companies around the country for use when signposting enquiries from employers to local sources of provision.

Programmes to meet specific needs Responding to specific training needs within their industry sectors, Metals Forum trade associations and other sector bodies organise a variety of training programmes, such as the hot dip galvanising course, run by the Galvanizers’ Association, and have developed training materials, such as the British Constructional Steelwork Association’s health and safety guides, and the employment law manual produced by the National Association of Steel Stockholders. Further information on the types of skills solutions in place for specific metals industries is contained in Appendix 4.

7.3

Action required by government & stakeholders

Despite the advances made by the sector over the past five years to address delivery and supply issues, there are still a number of problems, in particular: • • • • •

32

difficulty in meeting employer needs when sector priorities do not match with regional priorities confusion over the plethora of different funding regimes employers turned off by bureaucracy and wasted resources funding streams which favour college-based learning the lack of funding for training in the workplace at Levels 3, 4 and above

Metals Sector Skills & Performance Strategy 2005

Action Plan

The metals sector strongly supports the following government actions: • Implementation of the Tomlinson Working Group recommendations on 14-19 reform, in particular concerning better and equally funded vocational education routes and the move to specialised Diplomas led by employers through Sector Skills Councils. • Sector strategies to drive regional spending through closer collaboration between Sector Skills Councils, RDAs and LSCs • Regional funding opportunities for employers published centrally in a single, common format • Introduction of a single national quality assurance register for all training providers and consultants • National support for sector strategies that address management skills development. [More support for Level 3 and Level 4 programmes would have far greater strategic impact within the sector than the mainly basic skills, entry to employment or Level 2 initiatives available locally].

33

Appendices

Appendix 1

Metals Sector Skills & Performance Strategy 2005

Sector Drivers Linked to Industry Solutions

Business Drivers

Adding value and eliminating waste

Industry Solutions

MICE Process Improvement Workshop, Supply Chain Improvement Programme, Strategic Policy Deployment and Management Lean Awareness Workshops

High quality engineers to lead change NAMTEC research, technology transfer, CPD and technical training activities

Innovation and technology transfer

Management and leadership

Best Practice events for senior managers Metals Industry Middle Managers Programme (new 2005) [links to MICE and NVQ4]

Culture change at all levels

Metals Industry Leadership Development & Teamwork Training Programmes [structured programmes leading to NVQ Level 2 or Level 3]

Skill levels and flexibility

Metals Industry Health and Safety Passport & Passport PLUS [industry standard including NVQ Level 2 Level 3 unit]

Transferable skills and retraining Basic skills training and Key Skills Toolkit Metals Processing and other Standards, NVQs and VQs Demonstration of employee competence

Metals Academy and Metals Processing Apprenticeship Framework [school industry links, careers and enhanced apprenticeship activities] High quality new entrants

Quality and availability of metallurgists and engineers

34

Doctorate and Masters Programmes, Foundation Degrees, Graduate Development Framework and Vocational Awards Metallurgy for the Non-Metallurgist Programme

Metals Sector Skills & Performance Strategy 2005

Appendix 2

Name of Organisation

Appendices

Metals Sector Registered Providers

Location

Ad-Qual Dorset Alan Hodson Associates Argyle Anderson Associates Nottinghamshire Avon Vale Training Wiltshire Bradford College West Yorkshire Brinsworth Training South Yorkshire British Engineering Manufacturers’ Association North Somerset British Stainless Steel Association South Yorkshire BTAL (UK) West Yorkshire Carl Stahl Evita South Yorkshire Castings Technology International South Yorkshire Business & Training Solutions West Midlands Corus Consulting E-learning South Yorkshire Corporate Health & Safety Solutions Wales Develop UK South Yorkshire Development Resources South Yorkshire Ecliptic Business Solutions Shropshire EEF Sheffield Association South Yorkshire Fmea Derbyshire Future-Wize South Yorkshire Gen II Engineering & Technology Cumbria HPW Training South Yorkshire i2i Training & Development West Midlands In-Comm Business Services West Midlands Industrial Training & Development Bedfordshire Innoval Technology Oxfordshire Kirkdale Industrial Training & Development West Yorkshire KJW Business & Training Services West Midlands Mike Wakerley Training Derbyshire N D Safety South Yorkshire NLT Training Services Derbyshire Nottingham Engineering Training Association Nottinghamshire People Projects West Yorkshire Performance through People West Midlands Protech Training & Consultancy West Midlands PTP International South Yorkshire QED Consulting South Yorkshire Scott Brown Leicestershire SGB-Associates South Yorkshire

Simpact Training South Staffordshire Training Association

Worcestershire Staffordshire

Name of Organisation

Location

South West Durham Training Steel Construction Institute Vocation Vision & Training Walkgrove Wise Owl Training

County Durham Berkshire Pembrokeshire Nottinghamshire South Yorkshire

35

Appendices

Appendix 3

Key

Metals Sector Skills & Performance Strategy 2005

Main Qualifications Used within the Metals Sector

Type/Title/Levels/Awarding Body

Use within Metals Sub-Sectors

National Occupational Standards and N/SVQs: Metals Processing & Allied Operations L2&3 (EAL) [including units on fabricating constructional steelwork and laboratory services]

All

Combined Working Practices L2&3 (PAA, C&G)

All

Business Improvement Techniques L 2,3&4 (EAL)

All

Constructional Steelwork Site Operations L2 (ECITB)

Constructional Steelwork

Construction Contracting L3&L4 (Edexel)

Constructional Steelwork

Engineering Design L3 (EAL, C&G)

All

Engineering Maintenance L3&4 (EAL)

All

Engineering Maintenance & Installation L2 (EAL)

All

Mechanical Manufacturing Engineering L2&3 (EAL)

Casting (specific units)

Specialised Plant and Machinery L1&2 (CITB,OCR,EAL)

Service Centres & Distribution

Technical Design (Built Environment) L3 (Edexel)

Constructional Steelwork

Performing Manufacturing Operations L1&2 (EAL)

Casting (specific units)

Performing Engineering Operations L2 (EAL)

All

Technical Services L2 (EAL)

Casting (specific units)

Welding Engineering L4 (ECITB)

All

Fabricating & Welding Engineering L2&3 (EAL)

All

Non Destructive Testing (ECITB)

All

Engineering Management L4&5 (EAL)

All

Administration L2&3 (EAL, OCR)

All

Customer Service L2&3 (EAL, OCR)

All

Engineering competence standards (OSC Eng.) [used in MP&AO and CWP fabricating units]

All

Laboratory and technical activities (SEMTA) [used in MP&AO and CWP lab/testing units]

All

Occupational Standards in the Built Environment (CIC)

Constructional Steelwork

Leadership & Management Standards (MSC)

All

Vocational Qualifications: City & Guilds Progression Award in Process Technology

Iron, steel, aluminium and other non-ferrous

City & Guilds Engineering Certificate L2&3

Castings

BTEC National – metallurgy and engineering routes

All

City & Guilds Progression Award in Production Engineering L2&3

All

Metals Industry Awareness Certificate (Metskill)

All

Foundation Degrees: Bradford University – Metallurgy and Engineering Technology

All

Sheffield University – Engineering Materials (in development)

All

Sheffield University – Manufacturing (in development)

All

Masters/ Doctorate Programmes: Sheffield Hallam University - MSc in Materials & Manufacturing Management

All

Sheffield Hallam University– Metals & Manufacturing Doctorate

All

lead responsibility

36

named partner

active contribution to development

watching brief

Metals Sector Skills & Performance Strategy 2005

Appendix 4

Appendices

Skills Strategies in Place for Specific Metals Industries

[An illustration of sector-specific education support and training programmes and resources developed by metals bodies) Sub-sector

Specific skills strategies already in place to meet the needs of the metals sub-sector [in addition to the sector-wide strategies outlined in Sections 6-8]

Steel

• UK Steel schools packs and interactive websites • ILSAP (run by the International Iron & Steel Association and Liverpool University) online learning aids for steel applications, processes and metallurgy • Professional development programme for school head teachers sponsored by Corus • British Stainless Steel Association: - Stainless Steel Specialists Course - CPD training modules for architects • IOM3 distance learning package on heat treatment of steels • Worshipful Company of Tin Plate Alias Wire Workers educational activities, sponsorship and awards for students, graduates, apprentices and others • UK Steel: MICE partner.

Aluminium

• AluMATTER (run by the European Aluminium Association and Liverpool University) web-based learning tools for aluminium science and technology • Aluminium Federation (ALFED) CDROM training packages in aluminium technologies for schools /colleges and in-company/shopfloor use • ALFED: MICE partner.

Other NonFerrous Metals

• Non-Ferrous Alliance educational CDROM “The Magic of Metals” for 14 to 16 year olds and secondary education website.

Casting

• • • •

Metalforming

• Confederation of British Metalforming (CBM) Technology transfer software on simulation • CBM: MICE partner.

Treatment, Coating & Finishing

• • • • •

Metal Packaging

• Worshipful Company of Tin Plate Alias Wire Workers educational activities, sponsorship and awards for students, graduates, apprentices and others • Metal Packaging Manufacturers’ Association guidelines for the design and manufacture of metal cans • Metal packaging industry design awards.

Constructional Steelwork

• Route for steelwork erectors under the CITB Construction Skills Certification Scheme (requires Constructional Steelwork Site Operations NVQ Level 2) • British Constructional Steelwork Association (BCSA) management seminars, e.g. on EL insurance/legislation • Principles of Steelwork Detailing CDROM – essential underpinning knowledge for trainee design detailers • Steel Construction Institute: - SteelCAL software for architechts and engineers - Training courses, educational CDROMs and CPD programmes, including design of buildings and bridges, British Standards, Eurocodes fire, and welding for structural engineers.

Service Centres & Distribution

• • • •

National Association of Steel Stockholders (NASS) badged Steel Stockholding Health and Safety Passport PLUS programme NASS sales training courses NASS “Team Challenge” competition NASS: MICE partner.

Metals Recycling

• • • • •

British Metals Recycling Association (BMRA) badged Metals Recycling Health & Safety Passport & Passport PLUS programmes Certificate of Technical Competence to meet environmental standards for site managers BMRA training courses in environmental management systems, radiation safety awareness and plant operator training Senior Executive health & safety/environmental management seminars Metals recycling publications and information for schools available via BMRA website.

Engineered Metal Products

• Metalforming, casting and surface engineering activities as detailed above • The Welding Institute (TWI) Diploma and courses in welding technology, NDT, materials performance, joining technology and practical welder training • Association for Welding and Fabrication Training & Education – network of welding professionals in education and training • Cranfield University Welding Engineering Resource Centre.

The Founders’ Company Bursary scheme for under-graduates taking placements in foundries Institute of Cast Metal Engineers (ICME) college courses, CPD programme and professional membership, careers leaflets Cast Metals Federation (CMF) educational CDROM on investment casting (in development) Casting Skills Centre (part of CTI) courses and distance learning inc. casting design, quality and testing, melting, moulding and coremaking, ICT, methods engineering and metallurgy • CMF: MICE partner

Institute of Metal Finishing distance learning modules certificates, diplomas and courses on a range of surface finishing technologies IOM3 distance learning package on heat treatment of steels Galvanizers Association (GA) courses in hot dip galvanising health and safety (run by ROSPA) technical skills for operators and sales skills GA resource materials on galvanizing for students and lecturers GA: MICE partner.

37

Appendices

Appendix 5

Metals Sector Skills & Performance Strategy 2005

Activities in Progress: Company Case Studies

MICE Supply Chain Improvement Corus Construction & Industrial and Vesuvius supplier of re-linings for the reheat furnaces at Corus Scunthorpe Plate Mill, worked together to establish a better and more long-term and strategic supply chain partnership. Facilitated by MICE Engineers, their objective was to change the contract to re-line the furnaces from dealing primarily with installation to one that covered full-life performance. This meant together tackling the underpinning technological, operational and relationship issues. The activity commenced in November 2003 and, on completion in March 2004, savings of up to £270,000 per year had been identified. These came about from factors ranging from reduced refractory-caused breakdowns, to lower heat loss. In addition, planned improvements should bring £811,000 savings per year through increased output. Implementing all the changes will take four years, but Corus has already moved a significant way through its action plan and the benefits are already beginning to be achieved. “The pilot proves that there are vastly significant gains to be made through supply chain thinking that no business can afford to ignore. Through the experience and expertise MICE brought to the project, we are now in a position to net savings of in excess of £1million each year within the Plate Mill – a major benefit to us - and we recognise the potential to apply these principles to all our supplier and customer relationships.” Andrew Page, Managing Director, Corus Construction & Industrial

MICE Process Improvement Vald Birn (UK) Ltd, supplier of cast iron parts to the automotive and engineering industries, undertook a MICE Process Improvement Workshop in October 2003 as part of a progressive corporate recovery plan to stay ahead of market pressures and enhance its competitive edge. Over a structured five-month programme, the improvements gained included a 95% reduction in rework, a 33% reduction in set-up times on robotic finishing and a 21% increase in overall equipment effectiveness. These improvements have generated major long-term financial savings. In just one of the focus areas, for example, savings of £21,000 per annum have been realised by eliminating ‘burn-on’ on one of the parts. In addition, the MICE activities have paved the way for a new workforce culture that has enabled Vald Birn to achieve the coveted ISO/TS 16949 standard. “The new ‘challenge everything and accept nothing’ approach has been a turnaround in our culture. Previously people just accepted problems and put up with them! For me, one of the most significant benefits is not the obvious monetary savings, but the fact that we now have a team with skills and techniques that are invaluable. The comment made by our TS 16949 assessor that we had one of the most informed and committed workforces that he had seen is testimony to this.” Alan Gibson, Director, Vald Birn

Leadership Development Cold Drawn Products (CDP) has produced flat and shaped wire at its two rural sites in West Yorkshire for 50 years. During that time the company has changed considerably, but future demands on the business meant that a step-change in company culture was needed to continue to keep pace with competition. The concept of teamworking had been in place in the company for some time, but a further push was needed. The first step was to appoint and develop team leaders who could enable change to take place and embed a greater teamworking competence. The Metals Industry Leadership Development Programme provided the framework to make this happen. “Nine of our team leaders agreed to join the programme. Each had been doing much the same job for years, so this was a fairly major step for them. The Programme helped them to understand what we needed to achieve as a business and, therefore, the types of skills we need them to be competent in. They are now much more ‘in sync’ with what we are trying to achieve and are

38

Metals Sector Skills & Performance Strategy 2005

Appendices

more engaged within the business. The move to self-managed teams is a long and complex process, but we are now well along the path.” Steve Booth, Manufacturing Director, Cold Drawn Products

Teamwork Skills Novelis Can Recycling in Warrington (formerly Alcan Aluminium Can Recycling) was looking for a way of developing a behavioural system to underpin its well-established health and safety management system, coupled with a way of structuring training and providing accreditation for employee competence. Hence, in March 2004, the majprity of the workforce – 81 teamworkers embarked on the Metals Industry Teamwork Development Programme. On enrolment, most had no previous qualifications. Nine months later, however, they had achieved a level 2 NVQ and an additional environmental unit delivered to fit Novelis’ specific needs. “The Teamwork Programme formalises the fact that we have trained and assessed people’s occupational competence against the recognised standards The programme also leads to employees achieving the Metals Industry Health & Safety Passport. Give that all the latest health and safety legislation points towards competency, the fact that each employee holds a Passport certificate saying that ‘yes, they are competent’, is very important for us.” Ged Wright, Safety and Training Manager, Novelis Can Recycling

Health and Safety Passport All 57 shopfloor workers at the Willenhall Steels Division of Perry Willenhall Steel Service Centres qualified for the Metals Industry Health & Safety Passport in April 2004. The decision to put every operative and team worker through the Passport – the metal industry’s health and safety competence standard - was driven by top-level commitment to health and safety. In 1999 PWS Group was taken over by international steel group, Arcelor. Since then, the company has almost completely refocused its operation to serve the UK automotive client-base. As well as investing in new technology, the turnaround also involved retraining every one of their employees to operate the new equipment. Passport training was introduced phase-by phase across each team to develop the on-the-job competence and knowledge of every employee. New signage was installed throughout the factory, and a bonus-scheme was introduced to encourage shared responsibility for safety. The result has been zero accidents with no time lost in the last 11 months. “The greatest difference is the change in attitudes. We were hoping for a big culture change in health and safety and I believe we have achieved this. People can too easily shirk responsibility for health and safety and pass it on to the Health and Safety Representative. The Passport has given them the know-how and competence to not only follow safety procedures rigorously, but also to take the initiative to reduce risks, isolate hazards and do something about them.” Bob Onions, Operations Manager, Willenhall Steels, Perry Willenhall Steel Service Centres

Metals Academy Metsec plc, manufacturer of cold rolled sections for the construction industry at Oldbury in the West Midlands, uses the Metals Academy to recruit apprentices and offer them an enhanced level of development. Recently, for instance, Metsec production, design and engineering apprentices have participated in lean awareness training conducted by a MICE Engineer, and further learning activities, over and above those included within a standard apprenticeship programme, are planned for the future. As a result of this investment, apprentice retention rates are higher than employees recruited via other routes, with 72% of apprentices staying with the company for more than 10 years.

39

Appendices

Metals Sector Skills & Performance Strategy 2005

Metals Academy continued “The Metals Academy enables us to recruit and grow motivated individuals to very high skills levels, which creates a springboard for business growth and underpins our improving profitability. It gives us the mechanism to grow our own skilled employees, which is essential to our business, as many of the skills we need are no longer available on the open recruitment market, such as skilled CAD operators with an understanding of steelwork detailing. Apprentices develop into our corporate culture and imbibe our core values from the outset.” Stephen Tilsley, Managing Director, Metsec plc.

40

Metals Sector Skills & Performance Strategy 2005

Appendix 6

Appendices

Metals Sector Businesses & Employees in the UK Nations and Regions

Regional distribution of 16,500 companies and their employees: % of UK total by region

Scotland 4% employees 7% businesses

North East 6% employees 2% businesses

Northern Ireland 1% employees 2% businesses

North West 10% employees 12% businesses

Yorkshire & Humber 14% employees 12% businesses

East Midlands 8% employees 7% businesses

Wales 6% employees 4% businesses

South West 5% employees 9% businesses

West Midlands 25% employees 19% businesses

London 3% employees 2% businesses

East of England 5% employees 9% businesses

South East 13% employees 15% businesses

Source: Leicester University Centre for Labour Market Studies (2001)

41

Appendices

Appendix 7

Metals Sector Skills & Performance Strategy 2005

Sources of Information & Consultation

DTI Competitiveness Analysis Reports • ‘Sector Competitiveness Analysis Study for Steel Industries: Primary Transformers, Special and Stainless Steels’; Strategem Ltd; (2001): Department of Trade and Industry • ‘Competitiveness Study: Surface Engineering Industry’; Quo-Tec Ltd; (2001): Department of Trade and Industry • ‘Sector Competitiveness Analysis Study Fasteners, Forgings and Sheet Metal Presswork’; Strategem Ltd; (2001): Department of Trade and Industry • ‘Sector Competitiveness Analysis Study Non-ferrous metals and recycling’; Strategem Ltd; (2001): Department of Trade and Industry • ‘Cast Metals Sector Competitiveness Study’; Knight Wendling Consulting Ltd; (2000): Department of Trade and Industry

Metals Sector Research Research Reports • • • • • • • • • • •

“Metals Industries Labour Market Information”: (2004); Metals Industry Skills & Performance ‘Basic Skills in the Metals Industry’; (2002); Steel & Metals NTO ‘Employer Survey of Skills Issues for New Entrants and Existing Employees’; (2001); Steel & Metals NTO ‘Peoples Skills Scoreboard For Steel & Metals’; (1998, 1999 & 2000); Steel & Metals NTO ‘Steel & Metals Industry Workforce Development Plan’; (2000); Steel & Metals NTO Steel Industry Managers in the 21st Century - Survey of Management Roles & Competences’; (1998); Steel & Metals NTO ‘Steel Industry Managers in the 21st Century – Management Development Framework’; (1998); Steel & Metals NTO ‘Metals Recycling Sector Training Review’; (2000); Steel & Metals NTO ‘Development of Skills in Stainless Steel Fabrication’; (2001); Steel & Metals NTO ‘Mapping of Training Needs in the Constructional Steelwork Sector’; (1998); Steel & Metals NTO ‘Technology Foresight in the Steel Industry’; (1997); Steel & Metals NTO

Other Sources Used • ‘Supply Chain Management & the UK Metals Industry’; Lean Enterprise Research Centre, Cardiff Business School; (2001): Metals Industry Competitive Enterprise • ‘Labour Force Survey’; (2000); Office of National Statistics • ‘Labour Force Survey’; (Spring 2001); Office of National Statistics • ‘Non-Ferrous Alliance Training Survey’; PTP International Ltd (October 2002); Non-Ferrous Alliance • “Annual Business Inquiry”; (2002); Office of National Statistics

42

Metals Sector Skills & Performance Strategy 2005

Appendices

Employer focus groups involved in strategy consultation: September 2004 – April 2005 Galvanizers Association David Baron Robert Duxbury Robert Evans Niels Pedersen Phil Roberts Bernard Shanley

General Manager Director of Process Managing Director Marketing Manager - Zinc Marketing Director Managing Director

Galvanizers Association Wedge Group Galvanizing Cardiff Galvanizing (1969) Boliden Zinc Commercial Medway Galvanising Co Galco Steel

Managing Director Director Director, Manufacturing Director, Human Resources Managing Director Managing Director Managing Director Director Managing Director Managing Director Financial Director Managing Director UK Operations Works Director Managing Director Managing Director

Corus Rail H Williams & Sons Corus Strip Products UK Siddall & Hilton Bekaert Fencing Caparo Merchant Bar Corus Construction and Industrial UK Steel Bridon International Perry Willenhall Steel Service Centres Barrett Steel Buildings Niagara La Salle UK WH Tildesley Metsec plc Archibald Young

MetSkill Board Jon Bolton George Bond Andrew Herman Kate Kendall Kevin Mansell Richard Morley Andrew Page Ian Rodgers Steve Rutherford Peter Scarff Sue Sharples Tarlok Singh John Tildesley Stephen Tilsley Ian Young

Senior managers to discuss middle manager needs Bob Guildford Mark Irwin Colin Leighfield Derek Lum Richard Morley Chris Selby

Manufacturing Manager People Development Manager Operations Director Director Managing Director HR Manager

Corus Tubes Corus Strip (apologies) Wedge Group Metsec Caparo Merchant Bar Celsa UK

43

Appendices

Metals Sector Skills & Performance Strategy 2005

Appendix 7 continued UK Steel Tony Bagshawe Guy Glover Peter Holes Nigel Lane Graham Mackenzie Steve Mackrell Geoff Marston Keith Negal Duncan Pell Ian Rodgers Steve Rutherford Mike Thomas

Managing Director Director Managing Director Corporate Advisor Operations Manager Business Development Director Managing Director Commercial Director Director Managing Director Managing Director

Corus Tubes Outokumpu Stainless Cold Drawn Products CELSA Steel (UK) ISSB Sheffield Forgemasters Engineering UNSCO Corus UK Steel The Bridon Group Tyco European Tubing

Managing Director Training Manager Director, Manufacturing People Development Manager Managing Director Corporate Advisor Hot Line Section Leader Training & Development Officer Manager, Personnel Services HR Manager

South Wales Forgemasters Inco Europe Corus Strip Products Corus Strip Products Caparo Tubes Celsa Novelis Rolled Products Cogent Power Cogent Power Celsa

Managing Director Works Director Project Director Director Technical Manager Managing Director President

Hi-span Doby Verrolec CBM Metsec Kingspan Metal-con Metsec Hadley Industries

Wales Paul Brabben Martin Davies Andrew Herman Mark Irwin Andrew Jarvis Graham Mackenzie Russell McCafferty Lesley Morgan Peter Rose Chris Selby

Cold Rolled Sections Association Ben Beaugeard Terry Dingley Stan Hardy Derek Lum David St Quinton Stephen Tilsley Stuart Towe

Confederation of British Metalforming Jo Beck Ken Campbell Eric Forgan John Houseman Derek Johnson Alan Shaw

44

Financial Director Technical Advisor Managing Director Director General Non Executive Director Commercial Director

Clydesdale Forge Company Confederation of British Metalforming Barton Cold-Form Confederation of British Metalforming Kespar Engineering Regent Engineering Co Ltd

Metals Sector Skills & Performance Strategy 2005

Appendices

Aluminium Federation David Beale Joan Chesney John Cutler Henry Dickinson David Harris Iain Mackay Paul Martin Terry Martin Andrew McLoughlin Jim Morrison Mark Westwell

Chairman Communications Director/General Manager Managing Director Secretary General Managing Director Managing Director Assistant Director Plant Manager General Manager Operations Director

Seco Aluminium British Alcan Aluminium Bridgnorth Aluminium Norton Aluminium Products Aluminium Federation Adams Rite Europe Alupro Ltd DTI Hydro Aluminium Bernhard Metals Wolstenholme International

National Association of Steel Stockholders Peter Corfield Bob Law Brian McCance Peter Scarff Roy Taylor

Director, Distribution & Excellence Managing Director Managing Director Managing Director Managing Director

Corus Distribution & Building Systems Arcelor (Welbeck Steel Service Centre) Brian McCance (Steel) Perry Willenhall Steel Malthouse Engineering

BCSA Process & Technical Committee Mervyn Algie Richard Barrett Kim Dando P Howlett White J Krancioch E Leach David Moore A H Pillinger R J Pope A Pottage R Reid

Managing Director Managing Director Technical Director Technical & Contracts Director Group Quality Assurance Managing Director Engineering Manager Technical Director Technical Consultant R & D Director Technical Director

Ballykine Structural Engineers Barrett Steel Buildings Frank H Dale D A Green & Sons Severfield-Reeve Structures Leach Structural Steelwork Ltd BCSA Bourne Steel BCSA Severfield-Reeve Structures John Reid & Sons

45

Appendices

Metals Sector Skills & Performance Strategy 2005

Appendix 7 continued British Stainless Steel Association Council Simon Barron Barrie Cheetham Peter Davies Eddie Kirk Peter McDermott Bill Molloy Mark Perrins Mike Phinn John Swain Richard Vick John Vine Dennis Willetts David Winnard

Managing Director Chairman Managing Director Managing Director Operations Director Managing Director Managing Director Managing Director Managing Director Marketing Development Manager Director & General Manager Managing Director Operations Director

Cashmores BSSA Professional Polishing Services ThyssenKrupp Special Steels Ancon Building Products The Nickel Institute Outokumpu Stainless Wincro Metal Industries Anopol Corus Engineering Steels Jordan Manufacturing DS Willetts (Stainless) W&G Sissons

Managing Director Operations Director Operations Director Operations Manager HR Manager Operations Manager Managing Director Managing Director

Corus Rail Bridon Group Wedge Group Galvanizing William King Celsa UK Sheffield Forgemaster Metsec Allvac

Metals Academy Committee Jon Bolton John Churchfield Colin Leighfield Joe Muir Chris Selby Steve Tagg Stephen Tilsley Richard Wright

SEMTA Engineered Metal Products SSG David Critchley David Elliott Geoff Field Alison Griffiths Stan Hardy Ken Hoare Pam Murrell Peter Sinclair Norman Williams Ian Young

46

Technical & Projects General Manager Chief Executive Human Resources Manager Project Director General Manager Training and Technical Officer Managing Director Engineering Services Manager Managing Director

Cast Metals Federation Surface Engineering Association British Jewellers Association SPX Contech Confederation of British Metalforming Institute of Metalforming The Institute of Cast Metals Engineers BOLDU Anglesey Aluminium Metal Archibald Young

Metals Sector Skills & Performance Strategy 2005

Appendices

Additional consultation: NAMTEC IoM3 ICME Special Steels South Yorkshire EEF/SEMTA Engineered Products Materials IGT

discussions with Alan Partridge, Director (November) meeting with Bernie Rickinson (November) information from Symposum on Vocational Education (November) information from Special Steels Group meeting – Chair; Tony Pedder (December) information from EEF South Yorkshire Skills Broker Initiative (January) information from Education & Skills Strategy Group Away Day (January) and from SEMTA SSAs. information from SEMTA Engineered Metals Products Group (February) discussion on future skill needs and recruitment/training of materials specialists (January)

The Metals Forum Aluminium Federation British Constructional Steelwork Association British Metals Recycling Association Cast Metals Federation Confederation of British Metalforming Galvanizers Association Metal Packaging Manufacturers Association Metals Industry Skills & Performance National Association of Steel Stockholders Non-Ferrous Alliance UK Steel The Metals Forum is an alliance of metals industries employing nearly half a million people in businesses working in virtually every UK town and city. Each year these businesses supply £38 billion of metals from the UK into the engineering, construction, automotive, aerospace and other manufacturing sectors (see Section 2). The Metals Forum comprises the leading ferrous and non-ferrous trade associations and Metskill as listed above. Through the Forum members gain access to a wider supply chain perspective on policy, economic and commercial topics that confront each industry. For a copy of the Metals Forum Annual Review, please contact: Rupert Hodges c/o Headroom Communications 18 Tudor Road Beckenham BR3 6QR tel: 07939 722 447 email: [email protected] Or visit the metals Forum website at www.metalsforum.org

47

For more information about this strategy please contact: Metals Industry Skills & Performance (MetSkill) Ltd 5 & 6 Meadowcourt Amos Road Sheffield S9 1BX Tel

0114 244 6833

Fax

0114 256 2855

Email

[email protected]

Web

www.metskill.co.uk