f - new web viewgreater manchester’s priority sectors research has involved analysis of data...

THE CONSTRUCTION SECTOR IN GREATER MANCHESTER: EMPLOYER SURVEY

NOVEMBER 2013

1 INTRODUCTION

Greater Manchester’s Priority Sectors research has involved analysis of data on the size and composition of each priority sector and its workforce, collation of secondary literature relating to skills priorities within each sector, and a survey of college and training providers who are active within the priority sectors.

To ensure that the views of employers are represented in the research, in summer 2013 a survey of employers within each of the priority sectors was undertaken. Employers were given the opportunity to complete a survey over the phone or face-to-face with a representative from a local training provider. In total, 710 employer surveys were completed. A copy of the survey questionnaire is attached as an appendix.

2 PROFILE OF RESPONSES

Total responses

106 construction sector employer questionnaires were completed. By sub-sector, the total number of responses breaks down as follows:

Civil engineering – 3 responses

Construction of buildings – 15 responses

Specialised construction activities – 88 responses

When asked to specify exactly what activity took place onsite, a diversity of responses emerged: air conditioning related services, building services, electrical contracting, gas related services; plumbing and overall construction activities were most commonly mentioned. Other activities mentioned included installation, joinery, plastering and roofing.

Numbers of employees

Eight of the construction sector companies we surveyed had only 1 employee, while the largest had nearly 42,000 employees (nationwide). The 106 companies employed a total of 45,677 employees, meaning that the average company size within the sector was 430 employees. However, disregarding the largest company which is so much larger than any other company in the survey, the average company size across the survey is 5 employees. In comparison, the average company size across the whole survey (n=710) was 19 employees.

Company status

92 respondents (87%) said that they were an independent company (i.e. not owned by/part of a larger company). Across the survey as a whole, 73% of respondents said they were an independent company.

3 SUPPLY OF SKILLS AND TRAINING TO THE SECTOR

Current level of engagement with learning and training providers

Most construction sector companies surveyed (76%) said that they felt engaged with training and learning providers. This compares to 79% across all nine sectors covered by the survey.

A quarter (27%) said that they worked with their sector skills councils or skills academies; this figure compares to an all-sectors rate of 25%.

Those that are currently engaged with external training providers mentioned benefits including:

“[Provides us with access to a] dedicated Training Officer with knowledge of our industry.”

“Delivering and managing our apprenticeship. Achieving legal training requirements”

Reasons given for not currently engaging included:

“As a sole trader I would need business to improve a great deal to be able to employ an apprentice”

“Ideally we should integrate far more work based programs with staff”

The vast majority of construction sector companies surveyed (90%) said that training providers were able to respond to their business skills needs (compared to an all sectors average of 83%). In terms of making this responsiveness better, the companies suggested that training providers should:

Organise programs better and provide support during the training period;

Make sure candidates have the right skills and the level of expertise advertised;

Ensure a forum is available where employers’ needs can be matched with training provision, and that provision is responsive to employers’ training requirements.

Prevalence of in house training

Close to three quarters of construction sector companies surveyed (68%) said that they carried out in-house training - which compares to an all-sector figure of 85%. Health and safety training is the most common type of training provided. Other examples of training include:

Coaching and mentoring; Toolbox talks on the use of equipment, company processes and

procedures.

“[We provide] on the job training to ensure that the apprentice/operative meets the practical standard of work that we require as a business”

The proportion of construction sector companies that have a dedicated training budget is with 22% below the 28% all-sectors figure.

Views on the current supply and quality of recruits

Most construction companies surveyed (85%) felt that the current supply and quantity of recruits met their business needs. The satisfaction rate across all-sectors was 77%.

Supplementary comments focused around work ethic and attitudes as young recruits were seen to lack general employability skills. Major gaps in recruitment are linked to specialist skills and the difficulty in finding staff trained in a certain technique or material.

Within this sector formal recruitment procedures are often replaced by recruiting by word of mouth or receiving referrals from family or friends.

4 GENERAL ISSUES RELATING TO SKILLS AND TRAINING

Does sector face specific skills shortages in Greater Manchester which are not faced elsewhere?

Only 20% of construction sector respondents to the survey said that their sector faced specific skills shortages within Greater Manchester which were not seen elsewhere in the UK. Across all-sectors those responding yes to this question was 26%. Greater Manchester specific skills shortages that were mentioned include mechanics, biomass engineers, joiners, dry lining as well as testing and inspection related activities.

Four respondents stated that skills shortage within the sector is a national as opposed to a Greater Manchester specific problem. It was also pointed out that the construction workforce is ageing while there are not enough young people coming into the sector.

Comments relating to the employability and work-readiness of young people applying to work in the sector

Comments on this topic were focused around attitude and employment readiness, reflecting the comments that were made when businesses were asked about the supply and quality of recruits. Several comments were made about poor attitude towards work, lack of motivation and understanding of industry requirements regarding the level of effort and working hours. Only two positive comments were made stating that young people are keen to work in the sector.

“Some young people are misinformed on pay, working hours and money expectations.”

“A poor general attitude to work is something we have noticed recently... Apprentices’ have a lack of motivation and don’t seem to take responsibility for organising themselves.”

“Working in an economically deprived area, we need to spend extra time on pastoral work as many [young recruits] come with home issues.”

Comments making construction sector specific points were few and only two businesses specified a skill needed in the sector that young people were lacking – namely, the ability to drive. The lack of work experience when entering the industry is seen as a problem and 8 respondents stated they will not employ school leavers due to previous experiences or have an age limit they have set themselves. One respondent has introduced a buddy system to enhance mentoring in the work place. Overall, work experience opportunities and trial periods were welcomed.

Are apprenticeships suited to the sector?

Respondents’ view (88% compared to 84% across all-sectors) was that apprenticeships are suited to the construction sector. This is linked to the importance of learning the trade in the work place. Comments were made regarding the length of courses and opportunities to train in specific areas. Training young unskilled people in the work place is seen as a way to provide trained staff that suits individual business needs.

Construction businesses (both those already taking apprentices and those thinking about whether they should) regard apprenticeships as an essential way for a young person to be introduced to the industry, learn specialised trade skills and knowledge. As one business stated:

“They [apprentices] get trained in all areas that our business offer[s], help support existing engineers and are the future service team for the business.”

Could the sector offer work experience opportunities

Just over half of construction sector companies (53%) answered yes to this question compared to 70% of companies across all sectors. For those companies that said they already offered work experience opportunities stated they have ongoing work experience programmes run with local schools and/or colleges.

Hindrance to taking on young people for work experience mentioned in the survey by 9 companies included insurance costs and age restrictions related to specific construction work. The work environment especially on construction sites poses dangers to inexperienced young people.

Does the sector get enough support from training providers to grow and expand?

A majority of construction sector respondents (75%) felt that training providers gave enough support to help their company grow and expand, primarily by offering training, opportunities to gain further qualifications and supporting in recruitment. The all-sectors figure was slightly lower at 70%.

In terms of further support that training providers could offer Greater Manchester construction sector firms, 4 companies referred to the need for increased communication and overall awareness of support available. Further information especially on funding options and availability of grants were mentioned.

5 DEMAND FOR SKILLS AND TRAINING FROM THE SECTOR

Essential or mandatory training for staff working in this sector

Mandatory training or training essential to staff was identified by 101 of the 106 construction sector companies (95%, compared to 48% across all sectors). This significantly high level of training expected can be explained by the volume of trade specific qualifications available in the construction sector.

A range of qualifications and training courses were mentioned out of which the CSCS card (Construction Skills Certificate Scheme) was most common (required by 48 or 45% of companies). Other examples of construction specific training that staff were required to complete include the ECS card for the electro-technical industry; level 2 or 3 NVQs in addition to gas related licences such as ACS.

Training that is most valued by businesses in this sector

Despite 48 companies listing the CSCS card as an essential sector specific qualification, less than 10 companies mentioned it as the most valued training among their staff. NVQs at a variety of levels, especially level 2 and 3 were mentioned just as often as CSCS. Other valued skills included health and safety knowledge and the ability to drive.

Views on whether the skills required to work in the sector will change and what will drive this change

In comparison to the all-sectors responses, construction sector businesses were more likely to see climate and environmental change as the key driver of changes in employee skills needs – 61% of firms in the sector mentioned climate and environmental change as having a big impact upon skills needs compared to 34% for all-sectors.

Technological changes were seen as the next most important influence upon the sector’s skills requirements (whereas other sectors frequently saw technological changes as being the most important influences upon future skills requirements), while economic and political changes were seen as having less of an impact on future skills needs.

6 CONCLUSION

The survey reveals a sector characterised by small independent companies with the exception of a few significantly larger companies. Albeit versatile, most of the respondents fall into the specialised construction activities sub-sector. The sector is highly engaged with training providers and the vast majority of companies are happy with the service training providers offer and satisfied with the supply and quality of potential recruits. There are several sector specific training courses and qualifications available which are seen as valuable for staff to hold by the majority of companies.

One major challenge in the sector is attracting young recruits who are motivated and willing to learn the necessary skills. Apprenticeships are seen as an essential route for young people to be introduced to the sector. Smaller companies may be unable to provide in-house training which can be a hindrance when taking on young recruits as mentoring is seen as a way of ensuring apprentices meet the standard of work required. The sector’s strong relationship with speciality, external training providers may also explain why rates of in-house are below those seen in other sectors of the economy.

Looking to the future, the sector expects environmental changes and regulations to impact upon the skills they need their staff to posses. Training providers need to be aware of this and identify the specialist construction skills/qualifications (e.g. biomass engineering, insulation systems) that flow from such changes.

Appendix A: Copy of employer survey questionnaire

GREATER MANCHESTER PRIORITY SECTORS SKILLS REVIEWS

CALL FOR EVIDENCE FROM EMPLOYERS

The Greater Manchester Skills and Employment Partnership has been established by the Greater Manchester Combined Authority and Local Enterprise Partnership with the aim to maximise the contribution that skills training makes to Greater Manchester’s economy.

Key to achieving this is understanding the skills needs of the priority sectors which drive Greater Manchester’s economy. These priority sectors are: Financial and professional services Digital Creative industries Advanced manufacturing Education Health and social care Logistics Retail Hospitality & tourism Construction

On behalf of the Partnership, the Greater Manchester Learning Provider Network is undertaking consultations with businesses to understand which issues employers see as being crucial to the future growth and success of their sector in Greater Manchester.

This input will be used to inform: the development of education and training providers’ curriculums so that they

better meet the needs of business; and Greater Manchester’s future skills policy and business support offer.

All responses will be treated as confidential and findings will be presented to in a way to ensure that it is not possible to identify individual respondents in the final analysis. If you would like any further information on this piece of work please email Sharon Kelly, Strategy and Partnership Manager at the Greater Manchester Skills and Employment Partnership on [email protected] or phone 0161 237 4256.

PRELIMINARY INFORMATION

NAME OF BUSINESS: _______________________________________________KEY POINT OF CONTACT: _______________________________________________

SECTOR(S) THE BUSINESS SITS WITHIN:Priority Sector % of

your busines

s

Priority Sector % of your

business

Financial and professional services Health and social care

Digital LogisticsCreative industries RetailAdvanced manufacturing Hospitality & tourismEducation Construction

SUBSECTOR(S) THE BUSINESS SITS WITHIN:

PROFILE OF THE BUSINESS:Number of employees at the siteIndependent or part of a group?Turnover of business/group The main business activity carried out at the site

THE SUPPLY OF SKILLS AND TRAINING

The Partnership wishes to understand employers’ views on the current supply of training to their business.

1. Do you feel that your business is engaged with learning and training providers? [tick one box and fill in details if applicable]

YesNo

Don’t knowIf yes, what benefits do you see from this engagement?

If no, what are the barriers to engagement faced by your business?

2. Do you engage with sector skills councils or skills academies? [tick one box and fill in details if applicable]

YesNo

Don’t knowIf yes, who have you worked with? How have you worked with them?

3. Do you carry out any training in house?YesNo

Don’t knowIf yes, what types of training do you do?

4. Does the current supply and quality of recruits to you business meet your expectations? [tick one box and fill in details if applicable]

YesNo

Don’t knowIf no, could you elaborate on where the main mismatch occurs? For example, specific skills, competencies, experiences etc.

5. Do you feel that training providers are able to respond to your business skills needs?[tick one box and fill in details if applicable]

YesNo

Don’t knowIf no, why not?

6. In your opinion, how can training providers better respond to your business needs? [write in details]

GENERAL ISSUES RELATING TO SKILLS AND TRAINING

7. Does your sector face specific skills shortages in Greater Manchester which are not faced elsewhere?

YesNo

Don’t knowIf yes, what skills shortages? And compared to where?

8. Do you have any comments relating to the employability and work-

readiness of young people applying to work in your business sector? e.g. attitude to work; lack of confidence; lack of motivation; personal circumstances. [write in details]

9. Do you see apprenticeships as suited to your business/sector?YesNo

Don’t knowPlease explain your response

10. Do you feel that your business could offer work experience opportunities to young people considering a career with your sector?

YesNo

Don’t knowPlease explain your response

11. Do you feel businesses in your sector get enough support from training providers to grow and expand? E.g.: recruitment drives, re-training, up-skilling, leadership and management, etc… [tick one box and write in details]

YesNo

Don’t knowIf yes, what support do you particularly value?

If no, what further support could employers be offered?

DEMAND FOR SKILLS & TRAINING

12. Are there any qualifications or licences that are essential or mandatory for staff to have in your type of business?

13. Which other skills or qualifications do you most need for staff to possess within your business?

14. What training do you most need or value in your business? E.g. training topics, levels of training required etc.

15. Do you foresee the need for staff to acquire new skills in the future as a result of changes within your sector?Prompts:Social (e.g. ageing population) changes - Technological (e.g. broadband) changes - Environmental (e.g. climate change) changes - Economic (e.g. recession) changes - Political (e.g. raising school leaving age) changes –

16. Do you have any other comments you would like to make?

17. Would a representative from your business be willing to attend a briefing session on the findings from this research? [If yes, please write down the name and contact details]

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