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Future skills needs in the York, North Yorkshire and East Riding Local Enterprise Partnership Area

Transitional Area: East Riding

Engineering:Construction civil engineering.

Beyond 2030 has produced this Report on behalf of Calderdale College and as part of the College’s delivery of the 2017-18 ESF funded Skills Support for the Workforce programme across the York, North Yorkshire and East Riding Local Enterprise Partnership Area.

June 2018

YNYER Future Skills Needs – Engineering Sector. Construction civil engineering subsector

Executive Summary

York, North Yorkshire and East Riding Local Enterprise Partnership (YNYER LEP) has commissioned a series of research reports, which will allow key decision makers to understand more fully the future skills needs of the YNYER LEPs eight identified priority sectors.

Engineering is extremely significant to the UK economy, contributing £433 billion in 2015, about 26% of total GVA. There are nine key industries in which engineering skills are fundamental. To note is that the built environment, manufacturing and IT and communications sectors have the greatest number of firms using engineering skills.

This report considers construction civil engineering within the wider engineering sector. Beyond 2030 spoke with 9 subsector employers across the area and relevant stakeholders

such as the Institute of Engineering and Technology (IET), EngineeringUK, East Riding Council and Green Port Hull programme to inform this report, in addition to drawing on the sources mentioned in the bibliography.

Transitional Area of East Riding

East Riding has a resident population of 337,700, of which nearly 160,000 individuals are employed. Employment rates stand at 76.2%.

The East Riding economy is mainly based on agriculture and this, along with tourism, has contributed to the rural and seaside character of the area.

Large employment sectors include health and social work, manufacturing and retail.

Construction civil engineering, East Riding

This report considers construction civil engineering firms. Beyond 2030 have defined the subsector using the Standard Industrial Classification (SIC) of

Economic Activity codes 42, civil engineering and 71.12, project management activities related to civil engineering works.

530 businesses, employing 2,455 individuals operate in this subsector in East Riding. 93% of businesses employ less than 10 people. Professional occupations account for a third (33%) of the workforce. Nationally there are 44,000 civil engineers working in construction. Just 3% work in the

Yorkshire and Humber area. Where the roles are more technical, the longer learning pipelines, involved in the acquisition

of the detailed skills might be one cause of low levels of young people in the subsector. Nationally two construction-related engineering roles are on the UK Shortage Occupation

List: geotechnical engineer and tunnelling engineer. A degree in civil engineering is now a requirement in up to 15% of vacancies. Professional qualifications (EngTech, IEng, and CEng) are available from the Institute of Civil

Engineers which enable individuals to demonstrate knowledge and skills. New apprenticeship standards have been developed in civil engineering. Employment in the construction civil engineering subsector is expected to increase 14%

between 2014-2024 across Yorkshire and Humber. Including replacement demand, job openings will total 15,000.

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Looking forwards, the planned national infrastructure and construction pipeline has over 442 projects in Yorkshire and Humber. These projects will all require the skills of engineers and skilled trades.

There are many external factors which seem certain to impact on the subsector in the next few years.

Acknowledgements

Beyond 2030 would like to extend thanks to the employers in this subsector across the area and both local and national stakeholders such as the Institute of Engineering and Technology (IET), EngineeringUK, East Riding Council and Green Port Hull programme, who provided their time and assistance in giving us valuable insights into the issues facing the subsector.

Beyond 2030 are indebted to Calderdale College for their guidance and support in completing this report.

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ContentsExecutive Summary...............................................................................................................................2

Acknowledgements...............................................................................................................................3

1 Introduction...................................................................................................................................5

1.1 Engineering sector.................................................................................................................5

1.2 East Riding TA........................................................................................................................6

2 Construction civil engineering, East Riding....................................................................................7

2.1 Introduction...........................................................................................................................7

2.1.1 Subsector definition.......................................................................................................8

2.1.2 Construction civil engineering in East Riding.................................................................8

2.2 Civil engineering economy and employment.........................................................................9

2.2.1 Jobs people do.............................................................................................................10

2.2.2 Workforce characteristics............................................................................................11

2.3 Skills needs – Primary research testing the data..................................................................12

2.3.1 Recruitment.................................................................................................................12

2.3.2 What are the current skills needs and skills gaps?.......................................................13

2.3.3 Training........................................................................................................................14

2.3.4 Apprenticeships...........................................................................................................15

2.4 Future requirements............................................................................................................17

2.4.1 Sector growth..............................................................................................................17

2.4.2 Replacement need and total demand..........................................................................17

2.4.3 Qualifications...............................................................................................................18

2.4.4 Future roles and skills..................................................................................................19

2.5 Drivers of change.................................................................................................................19

2.5.1 Political........................................................................................................................19

2.5.2 Economic.....................................................................................................................20

2.5.3 Social............................................................................................................................21

2.5.4 Technological...............................................................................................................21

3 Bibliography.................................................................................................................................23

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1 Introduction

The York, North Yorkshire and East Riding Local Enterprise Partnership (YNYER LEP) has commissioned a series of research reports which inform key decision makers as to the future skills needs of eight identified priority sectors. These sectors are:

• Visitor Economy. • Food Manufacture.• Voluntary, Community and Social Enterprise (VCSE). • Health and Social Care. • Construction. • Engineering. • Agri-tech.• Bio Renewables.

As the economic and political situation changes, it is almost universally acknowledged that improved skills, not least because of the link to enhanced productivity, is a key way by which to improve economic well-being. Consequently, LEPs across England are looking at how best to support sectors with growth potential and which therefore may generate future wealth and prosperity.

In this research Beyond 2030 seek to understand fully the future skills needs required to ensure that within the YNYER LEP area, priority sectors can recruit and develop world class employees.

As well as wanting to understand the characteristics and future needs of the eight sectors, the LEP hopes to develop an understanding of the most significant subsectors in each priority area by geography.

1.1 Engineering sector

Engineering cuts across many industries including manufacturing, construction, information and communication, and energy. It plays a vital role in the UK’s economy, providing large-scale employment and physical exports, as well as implementing solutions to many challenges.

Engineers use skills such as science, maths and practical knowledge to design and build machines, systems, processes and structures. Engineers will generally specialise in one area, although many eventually further their knowledge to become a multi skilled engineer.

2018 is the Year of Engineering, which is a national campaign celebrating the world and wonder of engineering (HM Government 2017). Over the course of 2018, the campaign wants to shake-up people’s ideas about engineering, inspiring the next generation of innovators, inventors and problem solvers by showing them what engineers do.

This report considers the construction civil engineering subsector within Transitional Area (TA) of East Riding.

In this report Beyond 2030 sets out the skills and productivity of the area to provide context, before considering the subsector in further detail.

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1.2 East Riding TA

East Riding is in the wider region of Yorkshire and Humber. It borders North Yorkshire, South Yorkshire and Lincolnshire and covers over 900 square miles. The Humber Estuary and North Sea mark its southern and eastern limits. There are a few large settlements, such as Beverley, Bridlington and Goole. Around half of the population live in rural communities.

The economy is mainly based on agriculture and this, along with tourism, has contributed to the rural and seaside character of East Riding. The area has a number of historic buildings, nature reserves and the Yorkshire Wolds Way long-distance footpath.

The open and maritime aspects and lack of major urban developments have led to the county being allocated relatively high targets for the generation of energy from renewable sources. Easington, on the coast, is the site of a natural gas terminal, Easington Gas Terminal, owned and operated by Centrica Storage is one of three main terminals that process gas from the UK Continental Shelf.

Goole is a significant dock area which serves as a significant employer in logistics and related sectors.

Bishop Burton is home to Bishop Burton College, a further education and higher education college specialising in agriculture and equine studies.

East Riding has a resident population of 337,700, which equates to 30% of the LEP’s total resident population (ONS 2017). Nearly 160,000 individuals are employed in the area. Employment rates stand at 76.2% (Table 1). The area has a growing and increasingly ageing population and whilst the majority of the communities enjoy a high quality of life, deprivation is evident in some areas (East Riding Council 2016).

Using YNYER LEP as the standard, differences in the productivity, skills and employment across East Riding can be seen. Table 1 illustrates where the area performs better (green) or worse (red). For example, the job density is much lower in East Riding, as is the employment rate compared to the YNYER LEP area.

The economic inactivity rate is also much higher in East Riding (20.6%). While many of these are either retired, students, or looking after the home/family, it is worth noting that 24% (9,800) would like employment (ONS 2017).

The largest employment sectors (excluding agriculture) across East Riding are (ONS 2016):

Health and social work, employing 15% of all workers. Manufacturing, employing 12%. Retail employs 9% and education 8% of the workforce.

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Table 1 Productivity, skills and jobs:

Measure East Riding

North Yorkshire

York YNYER LEP

England

Gross Weekly pay full time (£) (place of residence, 2016) £498.30 £489.10 £509.60 £504.70 £544.70

Job density (the ratio of total jobs to population aged 16-64, 2015) 0.69 0.96 0.85 0.86 0.84

Employment Rate (Apr 16-Mar 17) 76.2% 80.7% 77.5% 78.8% 75.6%Self-Employment (Apr 16-Mar 17) 10.4% 13.9% 9.7% 12.0% 10.9%Full-time workers (employees) 66.1% 63.1% 62.7 63.8% 69.1%Unemployment Rate (Apr 16-Mar 17) 3.7% 2.9% 3.0% 3.2% 4.4%Economically Inactive (Apr 16-Mar 17) 20.6% 16.8% 20.0% 18.5% 20.9%

Level 4+ (Jan 2016-Dec 2016) 36.5% 35.9% 42.7% 37.5% 37.9%No Qualifications (Jan 2016-Dec 2016) 6.2% 6.5% 6.1% 6.3% 7.8%

Source: Office for National Statistics: LEP and National Labour Market Profiles; GVA for Local Enterprise Partnerships

2 Construction civil engineering, East Riding

2.1 Introduction

Civil engineering is a key subsector of the construction sector. Civil engineering deals with the design, construction, and maintenance of the physical and naturally built environment, including works like roads, bridges, canals, dams, airports, sewerage systems, pipelines and railways (ONS 2009).

Civil engineering takes place in the public sector from local authority through to national governments, and in the private sector from individual homeowners through to international companies. Therefore, civil engineers might work in public and private sector organisations including local authorities, central government departments and agencies, engineering consultancy practices, contracting firms and research and development organisations.

Civil Engineers provide technical and management input to develop design solutions for complex civil engineering problems. They will work as part of a team of engineers and other construction professionals through all lifecycle stages of development, design, construction, commissioning, operation, maintenance, and decommissioning of civil engineering infrastructure. A Civil Engineer will be required to have a broad skills base to work in areas including sustainable construction, structural integrity, geotechnics (engineering behaviour of earth materials), materials, tunnelling, marine and coastal engineering, water, waste management, flood management, transportation and power.

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2.1.1 Subsector definition

For the following report, Beyond 2030 has looked at civil engineering in construction using the following Standard Industrial Classification (SIC) of Economic Activity. SIC is a standard measure of activity used by government.

SIC Description 42.1 Construction of roads and railways42.2 Construction of utility projects42.9 Construction of other civil engineering projects71.12 Engineering activities and related technical consultancy

Source (ONS 2009)

2.1.2 Construction civil engineering in East Riding

In order for the growth potential in East Riding to be realised, there needs to be capacity in a number of enabling sectors (East Riding Council 2018). Enabling sectors are those which are strategically important but do not drive growth alone. East Riding Council sees construction, to build the infrastructure required, as one such sector.

The construction sector contributed £390 million to the East Riding economy in 2015 and has reported steady growth since 2012 (East Riding Council 2018).

However, the draft economic strategy action plan for East Riding, notes that there is an underrepresentation of higher skilled employment opportunities locally and a skills shortage in some specialised sectors including construction, manufacturing and health and social care (East Riding Council 2018). They recognise the need to enhance educational attainment, support those furthest from the labour market into employment, and address skills gaps are essential to drive inclusive growth.

East Riding third strategic aim is to improve connectivity (East Riding Council 2018). Good quality infrastructure and services for transport, mobile and broadband networks is an essential component to realise growth. The Local Transport Plan (LTP) includes evidence about the main transport challenges for East Riding (East Riding Council 2015). Some key transport challenges include:

Congestion issues in some larger settlements, along several key highway corridors and around numerous schools at peak times.

Significant new development is forecast over the next 14 years. East Riding is a rural authority with areas of significant remoteness. Residents in these areas

without a car are at risk of becoming isolated and unable to access services and facilities.

The Transport Policy Team has secured over £80 million for much needed larger transport schemes in the East Riding over the last five years through successful bids. This includes Bridlington Integrated Transport Plan Phase 1, A164 Corridor Improvements, A614/Glews garage Roundabout (East Riding Council 2015).

To complete such projects requires the skills of construction firms and civil engineering roles.

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2.2 Civil engineering economy and employment

Across East Riding there are 530 businesses working in construction civil engineering, employing 2,455 individuals.

77% (410) of the businesses in the subsector are involved in the ‘engineering activities and related technical consultancy’. This industry comprises (ONS 2009):

engineering design (i.e. applying physical laws and principles of engineering in the design of machines, materials, instruments, structures, processes and systems) for industrial process and production. It includes the drawing up of preliminary drafts, project development, specification of plans of execution or exact specifications on behalf of the contracting authority for the construction of industrial process and production.

the provision of surveying and mapping services and the like. the provision of architectural engineering services, drafting services, building inspection

services and surveying and mapping services, consulting activities and the like.

18% of firms are involved in the ‘construction of other civil engineering projects’ (i.e. construction of industrial facilities, and other facilities other than buildings, such as outdoor sports facilities etc.). Just 4% specialised in the construction of roads and railways and 1% in the construction of utility projects.

Table 2 Construction civil engineering businesses and employment, East Riding

Industries Business Count

Employment

Construction of roads and railways 20 240Construction of utility projects 5 15Construction of other civil engineering projects 95 450Engineering activities and related technical consultancy 410 1,750Total Construction Civil Engineering 530 2,455

Source (ONS 2017) (ONS 2017)

Examples of firms in the area include:

M B Roche Civil Engineering http://rochecivilengineering.com/ PBS Construction http://www.pbsconstruction.co.uk/ Blue Atlas Construction Ltd Pryjen Construction Ltd http://pryjen.co.uk/ BDS Groundworks & Surfacing Contractors http://www.bdsyorkshire.com/ Wold Construction Co. Ltd http://www.woldconstruction.co.uk/ CR Reynolds http://www.crreynolds.co.uk/ L & K Warcup Construction Ltd http://landkwarcup.com/wp/

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http://landkwarcup.com/wp/

http://www.crreynolds.co.uk/

http://www.woldconstruction.co.uk/

http://www.bdsyorkshire.com/

http://pryjen.co.uk/

http://www.pbsconstruction.co.uk/

http://rochecivilengineering.com/


93% of establishments employ less than 10 individuals in the subsector and this is an obvious issue when it comes to raising skills levels. This is greater than the East Riding all economy where 85% employ less than 10 individuals. The subsector has few (2%) medium/large employers. This is very important to any future work aimed at engaging with the subsector.

Figure 1 Size of establishments in civil engineering subsector

87%

7%5% 2%

Micro (0 to 4)Micro (5 to 9)Small (10 to 49)Medium / Large

Source (ONS 2017)

2.2.1 Jobs people do

Construction civil engineering firms include both engineering jobs but also none engineering roles. For example, for firms to operate effectively roles such as management and administration may also be needed. Civil engineering contractors may also employ ground workers and skilled employees to enable them to fulfil entire projects. Therefore, when considering the occupational groups of those employed in the subsector in Yorkshire and Humber and the UK level, it is evident that individuals are employed across a range of positions, not just engineering positions.

The greatest difference in the proportion of employment for the subsector compared to the all economy occurs in professional occupations. This occupational group accounts for a 33% of the workforce compared to 20% in the all economy. Key job roles in this group include:

Design and development engineers. Civil engineers. Chartered surveyors. Construction project managers and related professionals.

The subsector also has a greater proportion of skilled trades occupations, which includes roles such as:

Construction and building trades supervisors. Metal working production and maintenance fitters. IT engineers. Telecommunications engineers.

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Table 3 Occupational groups

Construction civil engineering (Y&H)

Construction civil engineering (UK)

All economy (Y&H)

Managers, Directors and Senior Officials

10% 15% 11%

Professional Occupations 33% 34% 20%Associate Professional and Technical Occupations

16% 16% 14%

Administrative and Secretarial Occupations

6% 5% 10%

Skilled Trades Occupations 21% 15% 11%Personal care services 1% <1% 9%Sales and Customer Service Occupations

7% 1% 8%

Process, Plant and Machine Operatives 6% 7% 6%Elementary Occupations 10% 6% 10%

Source (Office for National Statistics; Social Survey Division; Northern Ireland Statistics and Research Agency. 2017)

The job roles which have the greatest number employed in the construction civil engineering subsector across Yorkshire and Humber are shown below. This differs from national picture where civil engineer is the top occupation, employing over 44,000. Just 3% of civil engineers are employed in Yorkshire and Humber.

Table 4 Top five jobs roles in construction civil engineering firms, Yorkshire and Humber

Occupation Number employed 5330 'Construction and building trades supervisors' 4,0002123 'Electrical engineers' 3,3009120 'Elementary construction occupations' 3,2001122 'Production managers and directors in construction' 2,5002126 'Design and development engineers' 2,000

Source (Office for National Statistics; Social Survey Division; Northern Ireland Statistics and Research Agency. 2017) * not elsewhere classified

2.2.2 Workforce characteristics

The subsector has few women working in it, with just 21% of the Yorkshire and Humber civil engineering workforce being female. There are variations across the industries, with engineering activities and related technical consultancy more likely to employ females. 29% of the workforce in this industry are female, while in the construction of roads and railways, just 15% of the workforce are female.

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Young people are underrepresented in construction civil engineering compared to the whole economy. Only 5% are aged under 25. This compares to 13% in the whole economy of Yorkshire and Humber. However, the age groups 25 to 34 and 45 to 54 have a much greater proportion of workers compared to all economy (Figure 2).

Where the roles are more technical, the longer learning pipelines involved in the acquisition of the detailed skills might be one cause of low levels of young people in the subsector.

With an ageing workforce and a small proportion of young people entering the subsector, there are set to be significant challenges in future recruitment.

Figure 2 Age profile of construction civil engineering firms, Yorkshire and Humber

Under 25 25 to 34 35 to 44 45 to 54 55 to 64 65+0%

5%

10%

15%

20%

25%

30%

35%

40%

Civil engineering All economy


2.3 Skills needs – Primary research testing the data

2.3.1 Recruitment

The majority of firms Beyond 2030 spoke with, were not or were not expecting to recruit in the immediate future. One medium sized firm reported that they always look for quality staff, so have a downloadable application form for individuals to complete and send in at any time.

However, investigations on the jobs board (British Engineering Jobs 2018) found roles advertised in the following positions:

Senior Civil/Structural Engineer. Graduate Structural Engineer. Lead Highways and Drainage Engineer. Chartered Civil Engineer. Site Engineer / Setting Out Engineer. Civil Construction Manager.

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A number of engineering occupations appear in the United Kingdom Shortage Occupation List (HomeOffice 2018). Specifically, in the construction-related ground engineering industry, geotechnical engineer and tunnelling engineer appears on the list. However, no firm Beyond 2030 spoke to, mentioned any difficulties with these.

Data suggests that once a vacancy is filled, the construction sector does not have a problem retaining staff. In 2015, only 6% of UK construction firms reported retention issues (UKCES 2016). Where there are retention issues it tends to be in skilled trade occupations and machine operatives and tends to be because there are not enough people interested in doing the type of work.

2.3.2 What are the current skills needs and skills gaps?

2.3.2.1 Skills levels Half (51%) of the subsector workforce in Yorkshire and Humber hold a level 4 or above compared to 38% in the whole economy. 22% of the subsector do not hold a level 2 qualification.

Figure 3 Qualifications levels of construction civil engineering firms

NQ

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vel 4

a...

NQ

F Le

vel 3

Trad

e ap

pren

ti...

NQ

F Le

vel 2

Belo

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No

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0%10%20%30%40%50%60%70%

Civil engineering in Y&H Civil engineering UK All economy Y&H


A degree in civil engineering is a now a requirement in up to 15% of vacancies (which is up from 9% in 2012). As a job title this is now the third most demanded role, accounting for more than one in six vacancies (EngineeringUK 2017).

2.3.2.2 Skills needs / required From our primary work Beyond 2030 suggests that the following occupations and skills are particularly needed and valued by employers in the area and nationally:

Technical skills (many cases as a degree level qualification). o Civil engineer. o Civil engineering site management.o Civil engineering technician.

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o Construction / civil engineer ground worker. Project delivery / management - an awareness of business, client and end user needs

throughout the project lifecycle. Manage budgets. Design / AutoCAD experience. Team working / communication skills. Health and safety training is a necessity for many roles working in the subsector. Driving licence.

One small firm Beyond 2030 spoke with are looking at helping the subsector overcome skills issues by offering workplaces and job support to ex-military personnel. They have joined up with Buildforce to connect veterans with construction opportunities, providing work placements and full-time employment to service leavers, together with mentoring guidance on identifying transferable skills, training and jobs.

2.3.3 Training

As a high compliance sector, employers are obliged to ensure that their staff undertake a range of training and development which ensure the safety of construction sites. These are often around core areas including health and safety and which ensure compliance with legislation (i.e. site operators licence).

Our primary research found similar findings in this area. Key areas of training for employers in the subsector was health and safety. As one firm reported, being compliant with existing and new laws is one of the most pressing threats to the business because they need to be compliant to operate.

Most firms who responded to Beyond 2030, used a combination of ways to deliver training, including on-the-job, external etc.

Cost and time were the main drag factors on engaging non- mandatory training. In a robustly regulated sector, non-mandatory training is often overlooked.

2.3.3.1 Professional standardsOne way to demonstrate that an individual has civil engineering knowledge and skills is to become professionally qualified with the Institute of Civil Engineers (ICE 2018). Their qualifications are recognised internationally.

For most members, there are three stages to becoming qualified (ICE 2018). This is based on:

Academic qualifications. Work experience (also called initial professional development). Passing the Professional Review.

Membership levels are:

Technician engineer (EngTech). Incorporated engineer (IEng).

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Chartered engineer (CEng).

Identification of the appropriate training can be easily recognised by the individuals holding special identification cards such as the Construction Skills Certification Scheme (CSCS) (CSCS 2017).

2.3.4 Apprenticeships

Civil engineering apprenticeships are classified under the sector subject area of, ‘construction, planning and the built environment’.

Specific data is unavailable at local level, but national starts on a civil engineering for technicians’ apprenticeship are shown below.

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Civil engineer Civil engineering related Degree/HND/HNC should apply for a White/Yellow –

Academically Qualified Person CSCS card. Membership of Professional Body should apply for a White/Yellow – Academically

Qualified Person CSCS card.

The individual will need to have passed the Managerial and Professional (MAP) level Health, Safety & Environment Test within the past two years before applying for any of the above.

Civil engineering technician Diploma Level 3 in Civil Engineering for Technicians should apply for the Gold –

Supervisory CSCS card.

The individual will need to have passed the Supervisor Level Health, Safety & Environment Test within the past two years before applying for any of the above.

Civil & structural engineer designer Degree/HND/HNC should apply for the White/Yellow - Academically Qualified Person

CSCS Card. Membership of Professional Body should apply for the White/Yellow - Professionally

Qualified Person CSCS Card. NEBOSH Construction Certificate should apply for the White/Yellow - Academically

Qualified Person CSCS Card. NEBOSH Diploma should apply for the White/Yellow - Academically Qualified Person

CSCS Card. VQ Level 6 Diploma in Built Environment Design Management should apply for the Black

- Management CSCS Card.

The individual will need to have passed the Managerial and Professional (MAP) level Health, Safety & Environment Test within the past two years before applying for any of the above.

https://www.cscs.uk.com/card-finder/

https://www.cscs.uk.com/card-finder/


Table 5 Apprenticeship Programme Starts by Sector Framework/Pathway: Civil Engineering for Technicians

Age 2013/2014 2014/2015Under 19

100 190

19 to 24 90 11025+ - 10Total 190 310

Source (DfE, SFA and E&SFA 2017)

With the changes in apprenticeships, new standards have been developed, two having been recently approved and further standards are in development.

Table 6 Apprenticeship standards

Name LevelApproved for Delivery Date

Maximum funding

Civil Engineer (Degree) 6 4 October 2017 £27,000Civil Engineering Technician 3 4 October 2017 £12,000Civil Engineering Site Management (Degree) 6 In development Construction and Civil Engineering Ground Worker 2 In development

Source (Institute for Apprenticeships 2017)

In our primary work Beyond 2030 found there was general support for the principle of Apprenticeship. One small firm Beyond 2030 spoke with employs apprentices, citing that it provides them with the skilled workers needed in the future and it helps to get more people into construction and engineering.

However, micro firms report challenges relating to a lack of time, cost and finding interested candidates. This is not unusual and relates as much to the size of the firm as it does to the subsector.

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2.4 Future requirements

2.4.1 Sector growth

Future workforce projections for the subsector1 are available at the wider region of Yorkshire and Humber rather than the North Yorkshire area but this still provides a useful indication of changes in the workforce moving forward.

Employment in the Yorkshire and Humber civil engineering subsector is expected to increase by 14.0% between 2014 and 2024 – or by 4,000. This contrasts to the region’s all sector economy where growth of 3.9% is anticipated (UKCES 2016) but is in line with the wider construction sector growth of 14.6%.

Employment will increase across all occupational groups but particularly for skilled trades and higher skilled roles (i.e. managers, professional and technical roles) (Figure 4).

Figure 4 Construction civil engineering subsector occupational change, 2014 -2024 (000s), Y&H

Elementary Occupations

Transport and Machine Operatives

Sales and Customer Service Occupations

Personal Service Occupations

Skilled Trades Occupations

Administrative, Clerical and Secretarial Occupations

Associate Professional and Technical Occupations

Professional Occupations

Managers and Senior Officials

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 Source: UKCES Working Futures VI

2.4.2 Replacement need and total demand

Overall, the subsector in Yorkshire and Humber is expected to have approximately 15,000 job openings between 2014 and 2024, but to note is that 11,000 will be replacement demand.

49% of all job openings will be within skilled trades occupations and a further 12% in managerial roles (Figure 5). Professional occupations will account for a further one in ten job openings.

Figure 5 Job openings in the civil engineering subsector by occupation 2014 - 2024 (000s) in Y&H

1 Working Futures Civil engineering SIC 42 only

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Man

ager

s and

Sen

ior O

fficia

ls

Prof

essio

nal O

ccup

ation

s

Asso

ciate

Pro

fess

iona

l and

Tec

h-ni

cal O

ccup

ation

s

Adm

inist

rativ

e, C

leric

al a

nd S

ecre

-ta

rial O

ccup

ation

s

Skill

ed T

rade

s Occ

upati

ons

Pers

onal

Ser

vice

Occ

upati

ons

Sale

s and

Cus

tom

er S

ervi

ce O

c-cu

patio

ns

Tran

spor

t and

Mac

hine

Ope

rativ

es

Elem

enta

ry O

ccup

ation

s

0.0

2.0

4.0

6.0

8.0Expansion demand Replacement demand Job openings

Source: UKCES Working Futures VI

2.4.3 Qualifications

The change in qualification levels of the workforce shows that there will be a shift towards more people holding higher qualifications (Table 7).

By 2024, 40% of people employed in the civil engineering subsector are expected to be qualified at level 4 and above (less than Yorkshire and Humber region all sector proportion of 47%), whilst the proportion of people with no formal qualifications or level 1 is expected to fall to 15%.

Table 7 Change in qualification profile in civil engineering subsector, Yorkshire and Humber

No qualifications and level 1 Level 2 Level 3 Level 4 – 6 Level 7 – 8

Qualification example

GSCE (grades D – G)BTEC level 1

GCSE (grades A* - C) NVQ Level 2

AS & A level BTEC National

Certificate of higher education (L4)Foundation degree (L5)Bachelor’s degree (L6)

Master’s degree (L7)Doctorate (L8)

2014 level 2024 level

7,3655,929

8,0729,364

9,8459,279

4,4508,653

7271,506

2014 – 2024 % change -20% 16% -6% 94% 107%2014 % share 24% 27% 32% 15% 2%2024 % share 17% 27% 27% 25% 4%

Source: UKCES Working Futures VI

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2.4.4 Future roles and skills

The above Working Future projections demonstrate that there will be a decline in the sector. However, replacement demand means new workers will still be required. This workforce will become more highly skilled and with fewer low skilled roles.

Looking forwards, the planned national infrastructure and construction pipeline has over 442 projects in Yorkshire and Humber (HM Treasury and IPA 2016). In East Riding specifically, projects include:

The A63 Castle Street project, which is currently in the planning and consent stage, is looking to grade separation of the A1079 Mytongate junction in Hull and improvements to the surrounding roads, including the provision of improved pedestrian and cyclist access across the A63. Along with the Connecting the City Bridge, funded through the Humber Growth Deal, this will improve cyclists’ and pedestrians’ access to and from Hull Marina and road access to and from the port of Hull. Construction is planned for 2018/19, with completion 2021/22.

The rail electrification of the Hull to East Coast Main line is currently being scoped. Highways Maintenance funding has been allocated to East Riding.

Additional schemes that the council is currently involved in include (East Riding Council 2017):

Bridlington Town Centre Scheme. Wolfreton School Consolidation.

While land south of Beverley has been earmarked for future development. Potential future developments are likely to include new housing and employment, an extension to Keldmarsh Primary School, new areas of open space and a park and ride facility next to the southern relief road.

This will have obvious implications for the local subsector. These projects will all require the skills of engineers and skilled trades, but with a national shortage of engineers, there is concern about the ability to attract skilled workers in the future.

2.5 Drivers of change

2.5.1 Political

Leaving the European Union

Plans to leave the EU, following the UK European Union membership referendum in June 2016, has left the engineering sector facing an uncertain future.

The effect on inward migration particularly from EU countries could affect the sector’s ability to recruit and retain skilled staff and is by far the biggest issue employers have raised with us.

When the future regarding leaving the EU is clearer, companies will feel in a better position to make investment decisions.

Government Policy

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2018 is the year of engineering (DoE, et al. 2018). Ministers from across government are joining forces with engineers, industry experts and hundreds of businesses to change perceptions around engineering – and highlight the scale of opportunity that careers in the industry hold for young people in the UK.

National Infrastructure Commission (NIC)

The NIC aims to be the UK’s most credible, forward-thinking and influential voice on infrastructure policy and strategy (NIC 2018). They have outlined three broad challenges that must be tackled to ensure the UK has the high performing infrastructure networks required to drive economic growth and help improve quality of life:

Make better use of existing infrastructure to reduce the growing levels of congestion that we are seeing in the UK’s urban centres.

Identify where new infrastructure services and systems are required to deliver additional capacity.

Reduce CO₂ emissions in energy generation and the high levels that are produced in other core sectors like transport.

However, the resignation of Lord Adonis as Infrastructure tsar in December 2017 (Lord Adonis 2017) has highlighted concerns that maybe the NIC will not be an influential voice anticipated. Lord Adonis reports that his work, “at the Commission has become increasingly clouded by disagreement with the Government.” The bailout of the Stagecoach/Virgin East Coast rail franchise set was one area of disagreement along with Brexit.

Legislation / Regulations

Regulation and Governance issues are particularly significant for the subsector. Building Information Modelling (BIM) level 2, for example, has been mandated since April 2016 throughout the public sector.

Employers are not expecting there to be significant new legislation in the next few years, rather they are anticipating many current standards to move from EU legislation into UK law.

2.5.2 Economic

Rising Costs

The whole subsector is affected by rising operating costs, for example raw products and materials are almost universally rising in price. Consequently, resource management and budgetary controls are important and will become more important in future years.

Interest Rates

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November 2017, saw the first interest rate rise in over a decade from 0.25% to 0.5%. While this this interest rate increase will have little to no immediate impact on the construction sector, any further future raises will have an impact.

Labour availability

Where the roles are more technical, the longer learning pipelines, involved in the acquisition of the detailed skills might be one cause of low levels of young people in some of the industries.

Demographic changes mean that there are fewer younger people entering the job market, which has an adverse effect. Employers need to find ways to attract and then retain staff. Recruitment and retention are two important issues.

2.5.3 Social

The needs of the population in terms of infrastructure, housing, healthcare, education, work and leisure does and will continue to drive construction output.

Perception

There is widespread misunderstanding of engineering among young people and their parents. But encouragingly young people’s perception in engineering has become more positive in the last 5 years. The proportion of 11-16-year olds who would consider a career in engineering has risen from 40% in 2012 to 51% in 2016 (EngineeringUK 2017). However, too few young people are deciding to continue to study STEM subjects that keep the doors open to engineering careers limiting the number who ultimately will be able to enter highly-skilled engineering careers.

Effective careers education and interventions during school are vital to develop more informed careers thinking. The engineering sector is taking strides in increasing awareness of STEM subjects and campaigns such as the ‘Year of Engineering’ will help.

2.5.4 Technological

Urbanisation and rapid population growth continue to put pressure on infrastructure management, alongside a growing demand for more efficient, reliable and safe services. The cost of constructing and adding more infrastructure to a nation’s asset base is substantial and drives a focus on the use of new and innovative technologies to contribute to a more productive management of existing infrastructure.

Recent developments such as the internet of things (IoT), big data analytics and connectivity have the potential to deliver significant improvements across the whole asset management life cycle (NIC 2017). The use of information and technology to digitalise infrastructure across the (1) plan, design, build, (2) maintain, operate, (3) service provision, and (4) strategic financial investment planning phases of the life cycle will allow to achieve impacts such as (NIC 2017):

Optimising resources through better information on the resource use cycle.

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Using information to better manage utilities. Enabling consumers to make more informed use of resources and lower their consumption,

thereby reducing utility operating costs and extending operating life of existing infrastructure.

Providing opportunities for new services to citizens through smart technologies.

To achieve the above, a standard to capture data and analyse information from multiple sectors in a consistent and interoperable format is currently being developed by Innovate UK and Digital Built Britain as an extension to the existing Building Information Modelling (BIM) standards mandated for use in construction programs funded by the Central Government. Technology is crucial to the capture of this information.

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