skills investment plan - skills development scotland · entrants being a priority. at the same...

Skills Investment PlanFor Scotland’s chemical sciences sector

http://www.scotland.gov.uk/

http://www.scottish-enterprise.com/industry-support/chemical-sciences

Gordon Grant

Introduction A review of existing evidence along with employer and stakeholder consultation has identified a range of skills challenges and priorities for the sector, with a series of key themes being developed.

Primarily there is a need to increase the flow of new entrants into the sector, with initiatives such as a shared apprenticeship programme, enhanced career information and guidance, and attracting more female entrants being a priority.

At the same time, however, we must develop pathways which will allow firms working in the chemical sciences sector to recruit experienced people as well as new entrants. Transition training courses will play a key role in this, as will promoting Scotland globally to allow firms to recruit more staff from overseas.

Enhancing the skills of those already working in the sector is equally important, from developing provisions in colleges to increased flexible training opportunities, as is meeting the needs of employers by providing support and advice on the range of skills support available.

In all of these themes it is the chemical sciences sector itself which will take the lead, with Skills Development Scotland acting as facilitator by working in partnership with employers, academia, training providers and other key stakeholders.

It is this joined-up approach which will help ensure that Scotland’s chemical sciences sector can fully exploit the potential that exists for future growth, fully equipped to deal with future challenges and confident in its ability to maximise the opportunities that lie ahead.

Scotland’s chemical sciences sector already plays a crucial role in the continuing development of the nation’s economy.

Not only does chemistry play a fundamental part in our daily lives, but the chemical sciences sector underpins a host of other key sectors in the Scottish economy, from oil and gas to food and drink.

As a result, while around 9,000 people in Scotland are directly employed in the chemical sciences sector, around 70,000 people are employed in dependent services.

This makes it essential that Scotland’s chemical sciences companies have access to a plentiful and high-quality stream of talent, so they can both strengthen their position at the heart of Scotland’s economy, and develop their presence in a global marketplace worth around £2.5 trillion a year.

It is with this in mind that the Skills Investment Plan for the chemical sciences sector sets out the strategy through which this potential for growth and development will be maximised.

“There are around 8,890 jobs in the

chemical sciences sector in Scotland”

Purpose of the Skills

Investment Plan

1 The chemical sciences Skills Investment Plan (SIP) is an industry-led document developed by Skills Development Scotland (SDS) on behalf of the Scottish Government and the Chemical Sciences Scotland (CSS) Skills Group.

SDS will continue working with industry and public sector partners in its implementation.

The aim of the SIP is to:

• set out the characteristics of the chemical sciences sector in Scotland and its economic importance

• identify the key skills challenges facing the sector, as well as the wider challenges that will impact on the sector in the future

• build a clear picture of training and skills provision

• based on feedback from stakeholders and employers, identify the most important priorities to be taken forward in the action plan for the chemical sciences sector.

The development of this SIP has involved a review of industry publications and official data sources, leading on to consultations with stakeholders such as employers, industry bodies, universities, colleges and local authorities to understand the key issues facing the sector and its future skills needs.

Consultees included Scottish Enterprise, Strathclyde, Edinburgh and Heriot Watt universities, Ayrshire and Forth Valley colleges, and employers Dow Chemicals, Ingenza, Scotmas, GSK, Ineos, Giltech, Syngenta, Polimeri, CalaChem and Fujifilm Imaging.

The SIP sets out a clear statement of the sector’s skills needs and highlights the skills priorities to be addressed to support the sector’s future growth ambitions outlined within the Platform for Growth – A strategic plan for the Chemical Sciences in Scotland (2012)1. It also provides a framework for aligning public and private sector investment in skills to meet these needs.

1 Platform for Growth – A strategic plan for the Chemical Sciences in Scotland, 2012.

Figure 1: SIP development process

Develop SIP and action plan

Secure buy-in for draft SIP

Test and validate research findings with stakeholders and employers

Define sector; collate and review evidence

Publish SIP and action plan

“The SIP sets out a clear statement

of the sector’s skills needs and highlights

the skills priorities to be addressed”

The chemical sciences sector is diverse, with its work underpinning a host of other key sectors in the Scottish economy, from energy to food and drink.

The sector has 2302 active firms operating in Scotland. These businesses include CalaChem, a chemical services provider including chemical manufacture and provision of environmental waste treatment services; Fujifilm’s Scottish business, which produces inkjet dyes; Syngenta which manufactures fungicide, and the INEOS refinery and petrochemical plant at Grangemouth, several of which are foreign owned3.

Employment and GVAThere are around 8,890 jobs in the chemical sciences sector in Scotland, representing 6% of the overall Great Britain chemical sciences sector4 and just 0.4% of total employment in Scotland. However, around a further 70,000 are employed through dependent services in the supply chain. During the recent challenging economic period, Scottish employment in

the sector remained comparatively stable compared to the rest of Great Britain, declining by 1%, compared to 3% between 2009 and 2012.

Due to the broad nature of the definition used here, there is overlap with the existing life sciences SIP, approximately 37% of employment attributed to the chemical sciences sector in this SIP has been covered in the life sciences SIP. However, it was thought important to adopt this wider view to fully represent the chemical sciences sector.

Turnover in the chemical sciences sector in Scotland is estimated to be £8,630 million and GVA £1,100 million (Figure 2.1). Turnover in the sector showed a marked decline in 2009, in common with the downturn at the time, but has been gradually improving since. Over the period 2008-2010 GVA was relatively unchanged, but 2011 saw a decrease of 46% in GVA despite increasing turnover levels. This would suggest increasing production costs and falling productivity levels in the sector.

GVA per employee in the sector is 75% above the Scottish average, the second highest of any industry in Scotland, despite having fallen during the recent downturn. GVA per employee in the sector was £102,000 in 2011 compared to £139,000 in 2008 (a 27% decrease).

Characteristics of the sector

2

Figure 2.3: % of sector employment

2 ONS 2013 business count data (local units)3 http://archive.scottish.parliament.uk/s3/committees/europe/inquiries/euDirectives/InternationalEngagement/IE-ScottishChemicalSciences.pdf 4 Using the described definition employment in the GB chemical science sector was 136,850 in 2012.

Figure 2.2: Growth in exports 2002-2012

Source: Global Connections 2012 – Scottish Government

Gro

wth

in e

xpo

rts

(20

02 =

10

0)

Chemical science sector

All sectors

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

250

200

150

100

50

0

Figure 2.1: Turnover and GVA 2008-2011

Source: Scottish Annual Business Survey (SABS)

GVA Scotland

Turnover Scotland

£ m

illio

n

2008 2009 2010 2011

£14,000

£12,000

£10,000

£8,000

£6,000

£4,000

£2,000

£0

9,873

5,9756,882

8,626

1,102

2,026

1,5821,530

West Lothain: 6%

Aberdeen City: 6%

South Lanarkshire: 6%Falkirk: 17%

Highland: 16%

Renfrewshire: 9%

North Ayrshire: 10%

ExportsThe chemical sciences sector makes a significant contribution to Scottish exports. The value of exports in the sector is £4,500 million5, representing 17% of Scottish exports, and outperforming national export levels since 2007. Figure 2.2 shows growth in chemical sciences exports mirrored all Scottish exports between 2002 and 2006. However since 2007 export performance in the sector has outperformed national export levels. Since 2002 national exports have increased by 50%, whereas chemical science exports have increased by 148%. Average annual export growth in the sector has been 15% in 2010-2012.

Further export growth is expected. The Chemical Growth Strategy Group (2013)6 report sets out a vision7 that by 2030 the UK chemical industry will increase its GVA contribution to the UK economy by 50%, from £195 billion to £300 billion.

The Chemical Sciences Scotland Strategic Plan8 aims to increase manufactured exports from the sector by 50% by 2020. The most recent export data (see Figure 2.2) would suggest this objective is on track to date. If achieved this would make a significant contribution to national economic wealth.

Geographical coverage The chemical sciences sector is concentrated in Aberdeen City, closely followed by Aberdeenshire, Falkirk, Glasgow City, Highland and South Lanarkshire. Although Aberdeen City had the greatest number of firms, many of these firms were in the micro and small employment band size.

Indeed, the distribution of employment is somewhat different. Just under a fifth of the sector’s employment (1,480) was in Falkirk in 2012 and there was also a sizeable presence in Highland (16%) and North Ayrshire (10%),9 as seen in Figure 2.3.

Characteristics of the sector

continued

2

5 Export definition includes SIC 19 (Manufacture of coke, refined petroleum) as not possible to separate SIC 19 and SIC 20.6 Chemical Growth Strategy Group (2013) Strategy for Delivering Chemistry-Fuelled Growth of the UK Economy.

See: http://www.cia.org.uk/Portals/0/Documents/Growth%20Strategy%20FINAL.PDF. 7 Chemistry Growth Strategy Group (comprised of senior industrialists) consulted with key stakeholders to form a collective vision

of the economic potential of the chemical industry to the UK economy.8 Chemical Sciences Scotland (2012). Platform for Growth. A Strategic Plan for the Chemical Sciences in Scotland.9 ONS Business Register and Employment Survey 2011: All other local authority areas employed less than five percent of the sector

“Average annual export growth in the sector has been 15%

in 2010-2012”

3Skills demand

Existing evidence coupled with employer consultation shows that a range of skills challenges exist in Scotland’s chemical sciences sector.

Current gaps and skills shortages:

• technical and professional occupations are the hardest to fill

• the supply of science and engineering skills is problematic due to the highly competitive labour market

• the impact of emerging technologies could drive the shift in qualification needs higher

• there is a shortage of technical apprentices

• there is sporadic demand for contract support due to the plant shutdowns and manufacturing turnarounds.10

• there is a shortage of trained Chemical Process technicians (HNC/D).

The chemical sciences sector reports challenges associated with a highly competitive labour market where technical skills and experience are in high demand. In this context, employers have highlighted too few applicants of sufficient quality (explained as having insufficient work experience, and/or lacking specific skills) as the main difficulty in filling vacancies. In recruiting to these posts employers have a strong preference to hire people with direct experience, gathered over several years in the sector.

In particular, filling engineering posts across a range of sub-disciplines presents the biggest challenge for employers, whilst the lack of suitable applicants points to competition from other sectors, where skilled and experienced candidates can attract higher salaries, particularly oil and gas.

Many employers talk of recruiting from other firms in the sector, and accepting that others will take their employees. In this context they often experience staff retention issues which affected growth due to the cost of replacement and training. The comparably small size of the sector in Scotland means that there is not a large talent pool to recruit from within the sector.

Overall, employers are generally able to recruit apprentices and graduates, with very high demand for apprenticeship places. Employers’ general satisfaction with their ability to recruit these groups is in contrast to the difficulties that they face for more skilled people with greater experience.

Future drivers for the sector The future development of the sector in Scotland will be influenced by a number of external and internal factors which will, in turn, have an impact on skills needs; these are described in the table opposite.

10 Cogent (2011) Scotland Sector Skills Assessment. Current and Future Demand for Skills in the Science Based Industries. See: http://www.cogent-ssc.com/research/Publications/publications/ScotlandSSA2011.PDF

Drivers of Change Explanation

Economic challenges (including rising energy and raw material costs)

The cost of energy is increasingly impacting on the bottom line of firms. While some firms have taken action to address this through new processes and approaches, many have still to react.

Growth of competition from overseas

The global market for chemical sciences means increasing competition from other countries such as Germany and parts of the Pacific Ring such as Singapore. Cost pressures also come from China and India while the USA remains a key player.

Competitive labour market across sectors

Highly competitive labour market from within the sector to meet shortages and competition from other sectors such as oil and gas is common, as is employees leaving to work for parent companies in other countries.

Integration of new technology There is a lot of activity being undertaken in universities but the industry is not accepting the advancements as well as it could - the leap of faith required is too much for the sector to contemplate.

Increasingly “fragmented” nature of the business base

The sector is substantially composed of small businesses linked into large businesses. However, the sector has become more fragmented in that there has been a move away from large multinational firms to a pool of SMEs.

Possible development of shale gas

Uncertainty about where this might occur (in Scotland, England or both) but which would create further competitive pressures and demand for labour. However the UK development of shale gas will increase the competitiveness of the sector through cheaper feedstock and energy costs.

Possible future growth of industrial biotechnology

Industrial biotechnology has the potential to develop a set of powerful tools for exploiting and optimising the efficiency of bioprocesses and the specific characteristics of biologically derived products (bioproducts). This increase in efficiency and specificity has great potential for moving industry along the path to sustainability and greater use of renewable resources. This will require new skills entering the labour market.

Companies investing in Scotland

Firms are actively investing in Scotland, suggesting confidence in their operations. The majority of businesses have made significant investments in their operations in Scotland over the last three years. The amount of investment made by employers ranged from £80k to £100m. The investments mainly related to capital/infrastructure development (e.g. laboratories), energy, transport, storage facilities, and staff development.

Table 3.1: Drivers of Change

Mapping the supply side of provision is an important stage in understanding the extent to which the existing skills system can meet the current and future demands of the chemical sciences employers. The talent pool from which the chemical sciences sector recruits employees is the same as that of other key sectors such as oil and gas, and this needs to be borne in mind when studying skills provisions.

Overall, the take up of provision relating to the chemical sciences sector is in line with national patterns. The number of people participating in Modern Apprenticeships has increased along with expansion in the number of places in recent years. Students studying related subjects at college and university have decreased, albeit less than the average of all subjects, which shows continuing interest in these subjects. Participation in chemical sciences related subjects and MAs is, on the most part, higher amongst males than females. These patterns are described throughout the remainder of this chapter.

Modern ApprenticeshipsThe number of Modern Apprentices (MA) associated with the chemical science sector increased by over 40% between 2010/11 and 2012/13 – the majority coming from engineering. Geographically, they are well spread across Scotland, with 14% based in Aberdeenshire, followed by Fife with 11%. However, females achieving an MA on a framework associated with the sector accounted for only 4% in 2012/13.

CollegesCollege student headcount for subject groups relating to the chemical sciences sector declined between 2009/10 and 2012/13, with decreases ranging from 8% to 22%. However, the decline of all other subjects was 33% over the same period.

Nearly one-quarter of higher education level provision in colleges was at HND or HNC level in 2012/13. The subject groups outlined in Figure 4.1 are dominated by males, with only one fifth being female. However in the sciences and mathematics group, there are more female students compared to males (52% versus 48%).

UniversityEnrolments on to chemical science related subjects at Scottish Higher Education Institutions declined between 2010/11 and 2012/13 by 3% – undergraduates by 2% and postgraduates by 5%.

In 2012/13 there were 10,200 graduates with a chemical sciences-related qualification from Scottish HEIs. The supply of such graduates remained broadly the same over four years between 2009/10 and 2012/13. In 2012/13 the majority were from the HEIs in the central belt (65%), the greatest proportion coming from the University of Edinburgh (19%) whilst the University of Glasgow and University of Strathclyde both accounted for a further 14%. Of the 10,200 graduates there were proportionally more male graduates (64%), however proportionately more graduates from biological sciences are female.

4Current

provision

Figure 4.1: College students by gender (headcount)

Female: 11%

Male: 89%

Total students: 23,160

Engineering

Female: 52%

Male: 48%


Sciences and Mathematics

Female: 24%

Male: 76%


Manufacturing / Production Work

Female: 6%

Male: 94%

Total students: 400

Oil / Mining / Plastics / Chemicals

Female: 53%

Male: 47%


All subjects

Source: Scottish Funding Council, Infact database 26/02/2014

Graduate destinationsThe demand for chemistry courses from school leavers is increasing in conjunction with the strong demand for graduates. Graduates have little problem getting jobs in the sector, but they tend to only stay with firms for a few years and then move on as their experience is very marketable overseas. However there are only limited opportunities if graduates want to work for larger organisations, often limiting the breadth of experience they can gain at smaller firms.

In 2011/12, the chemical sciences sector accounted for the employment of 130 graduates from Scottish HEIs. Of the 130 graduates, just over 40% gained employment in Scotland. The majority of the graduates employed in the chemical sciences sector had a chemical sciences related qualification.

The male to female ratio of recruits into the chemical science sector is broadly equal in 2011/12. Female hires accounted for 54%.

Research baseAcademic expertise in the sector is represented by universities and research institutions, who pool their research under the umbrella of ScotChem. This venture is the main point of interaction between the industry and academic base, although research pooling also exists within the life sciences and energy sectors. This collaboration has assisted in Scotland having 4 of the UK’s top 10 Chemical Sciences Research Departments. Key areas of world-class capability exist within Materials, Synthetic Chemistry, Catalysis, Biological Chemistry and Pharmaceutical development. A 2013 study by Elsevier for Scottish Enterprise shows that researcher for researcher, Scotland produced more publications and citations respectively, than the rest of the world, in 2000, 2005 and 2010 for chemical sciences.

Consistently occupying a top 3 spot in the rankings, Scotland substantially outperformed Germany, France and rest of the UK.

Other supply activitiesA new Industrial Biotechnology Innovation Centre (IBIOIC)11 aims to grow the Industrial Biotechnology sector to employ 1,500 people in five years. It will harness the combined intellectual horsepower of 13 HEIs and create a single portal for industry to connect with Industrial Biotechnology to identify ways in which academic research can be commercialised.

IBIOIC hosted a Skills for Industry day in early 2014 which set out clear actions, including building a significant element of work experience and business skills into programmes, as suggested in a ScotChem paper in 2012.

The Royal Society of Chemistry (RSC) is already involved in addressing the commercial skills issues through the Chemistry Skills Programme12.

Other examples of work being undertaken to address the skills issues facing the sector include: SE working with SDS to make the chemical sciences sector more attractive to work in (e.g. STEM project); and INEOS running schools careers fairs. Addressing negative perceptions of the sector is important – this affects career choices at all stages in the education system.

4Current

provisioncontinued

11 Funding for IBIC is £45m over five years. See: http://www.scottish-enterprise.com/~/media/SE/Resources/Documents/Sectors/Chemical%20sciences/platform%20for%20growth.PDF

12 Chemistry Skills Programme. See: http://www.rsc.org/learn-chemistry/resource/res00000953/commercial-skills-for-chemists-introduction-and-overview

“Scotland produced more

publications and citations respectively,

than the rest of the world, in 2000, 2005

and 2010”

A review of existing evidence along with employer and stakeholder consultation has identified a range of skills challenges and priorities for Scotland’s chemical sciences sector.

Key skills issuesFour broad skills challenges and priorities have been identified by the sectors and tested and validated with Chemical Sciences Scotland (CSS), a joint industry, enterprise and government strategy team:

• increasing the flow of new entrants to the sector

• developing pathways to help recruit experienced people

• upskilling of the existing workforce

• better meeting employer demand.

5Key challenges

and priorities

Theme 1:Increasing the flow of new entrants to

the sector

Theme 4:Better

meeting employer demand

Theme 2:Developing pathways to help recruit experienced

people

Theme 3:Upskilling of the existing workforce

Developing and retaining a talent pool to support the growth of the Scottish chemical sciences sector.

OBJECTIVE AAttract more

new talent into the sector

OBJECTIVE BBroaden the talent pool for the sector and better align

with industry demand

Figure 5.1: Skills Investment Plan vision

“other chemical sciences companies

indicated that graduate work readiness was a significant issue

for them”

OBJECTIVE AAttract more new talent into the sector

Theme 1: Increasing the flow of new entrants to the sectorMany employers plan to invest significantly in Scotland. This investment along with the ageing workforce is likely to create an increased demand for labour compared with recent years.

Recruitment of new entrants through apprenticeships, colleges and universities is demand constrained, i.e. firms are over-subscribed when they advertise posts suggesting many more young people would go to work in the sector. Several employers recognise a need to do more, but for a range of corporate reasons are not able to commit to this individually.

The situation amongst new entrants is complex. While related apprenticeship and college activity appears to have been increasing, the rise has not been in local authority areas with a strong chemical sciences presence. This would suggest the increase is not benefiting the sector.

At the same time graduate activity in related science courses has been falling. Moreover, the scale of direct recruitment in to the sector from universities appears fairly limited in absolute numbers, of which around half have science and engineering backgrounds. The risk here is that the sector gets squeezed as demand increases from other sectors, especially energy which has significantly increased its employment of graduates over the past few years.

Recruitment through university appears much more gender balanced than from college and apprenticeships, perhaps reflecting the job types covered.

Key areas to be addressed include:

• establish a shared apprenticeship programme: to increase the number of apprentice positions in the sector a framework for a shared apprenticeship scheme that can be adopted by 6-8 employers should be defined. Larger employers can provide training and work experience whilst SMEs can have employees designated to them as apprentices for further work experience. This approach also allows for appropriate frameworks to be monitored ensuring they are relevant and up to date

• offer work experience to improve employability: employers highlighted a potential missed opportunity around HNC/D students, who are unable to find employment and so progress to do a full degree. The key barrier was seen to be their lack of work experience. Therefore we aim to increase the provision of vocational learning opportunities for graduates and HNC/D students enabling hands-on learning alongside/after the completion of academic studies. The course for HNC/D students will enable those students to gain sufficient experience to be attractive to employers. In the first instance this could be at Forth Valley College, but in time it should be offered elsewhere

• map recruitment patterns: current information on future demand across sectors should be mapped with a view to matching this to supply side activity, making use of the Working Futures project. A wider review of future engineering skills needs across a range of sectors is required to reflect changing recruitment patterns, particularly as a result of demands in the energy sector

5Key challenges

and prioritiescontinued

• strengthen the future talent pipeline through addressing gender imbalance in the sector: a targeted campaign to promote sector opportunities and college/apprenticeship routes to young people in schools, particularly girls. Most likely focussed in the three local authorities where the sector is largest

• develop career information on the chemical sciences sector: feedback from employers revealed that school pupils and graduates could benefit from a better understanding of the range of career opportunities available in the sector. Therefore we should ensure chemical sciences is well represented in STEM promotional activities. Here students and pupils will give a much greater consideration to the career paths they may be interested in and the most effective routes into any chosen area.

OBJECTIVE BBroaden the talent pool for the sector and better align with industry demand

Theme 2: Developing pathways to help recruit experienced peopleDemand for experienced workers is commonly seen to exceed supply, especially for skilled engineering and science posts. Employers want to recruit people with direct sector experience and often do this through attracting people from elsewhere in the sector. However, the sector is also losing people to oil and gas, and so the overall pool of talent available appears to be shrinking. Securing skills at this level can be an issue for employers – it can result in delays in manufacturing of new and existing products, thus creating difficulties meeting the consumer needs.

Recruitment from outside Scotland has often been seen as difficult, although many areas of Europe have rich chemical sciences activity. Some employers have reported

difficulties navigating the immigration system and holding onto key staff they have trained.

Because of this, the sector faces challenges in attracting experienced staff:


• establish common pathways into the sector: this could be done through key local colleges, delivering courses designed with employers to give people sector specific skills, building on the successful 12 week course already developed by Forth Valley College and Ineos. Ideally this could meet a range of employer needs, therefore increasing the chances of recruitment. To broaden the range of potential applicants and fill short term needs, recruitment efforts for mid-range professionals could be targeted outside of Scotland. This will require a communication plan to ensure sufficient numbers to fill the training course.

• promoting Scotland globally as the chemical science career location of choice: Talent Scotland to provide a briefing to CSS members on the services available including:

− promoting the sector to potential overseas recruits

− explaining to employers the practicalities of recruiting from overseas, especially outside the EU

− organising short seminars to introduce SMEs to the UK immigration system

− providing immigration advice and support to chemical science employers where appropriate.

Theme 3: Upskilling of the existing workforceThe potential investment from employers will create a need to upskill the existing workforce. There are some good examples of this being done through relationships with local colleges. These have also led to a few employers looking at recruiting skilled people from outside the sector.

The current practices of employers need to be strengthened to sustain and develop the supply of labour that they need to compete. Therefore they need to consider how best they can increase supply not only through new labour market entrants (outlined above) but also how to secure experienced hires from other sectors.


• colleges to further develop provision to meet employer needs: colleges and universities should continue to develop training provision to meet employer needs. This needs to be done in a way which minimises disruption, including part time courses. The scale and relevance of activity could be increased through:

− active employer involvement in course design

− employers being willing to share equipment and staff resources to help with delivery

− institutions sharing course materials and possibly staff with each other

• further employer activity via Flexible Training Opportunities (FTOs): further employer activity should be brought forward by promotion of public sector support – such as through Flexible Training Opportunities (FTOs). This resource will be able to support employer investment in training

Case studyRecruiting skilled people from outside the chemical sciences sector was one of the key aims of an innovative transition course run by Forth Valley College.

The College worked in partnership with SDS and Ineos at Grangemouth to create a Process Operator Conversion Course (POCC) which aimed to retrain candidates, providing them with transferable skills suitable for gaining work as Process Technicians.

In addition to a robust three month training programme at the College funded by SDS, all trainees had the opportunity of a three week work placement with the possibility of employment to follow.

Colette Filippi, Forth Valley College’s Associate Principal and Executive Director Business Development, said: “Conversion courses such as these are an excellent way in which to help people onto new and exciting career paths.

“Forth Valley College is delighted to work in partnership with industry and SDS to make these courses a success.”

Theme 4: Better meeting employer demandWhilst some chemical sciences companies are satisfied with the quality of graduates entering the sector, others indicated that graduate work readiness was a significant issue for them, particularly soft skills around commercial awareness.

There is scope to improve the soft skills of graduates and post graduates through increased work placement and employer sponsorship of projects. There is also thought to be changing employer demands, for example in the increasing need for people who understand continuous chemistry (as opposed to batch working).

The increased employer involvement set out above should create a series of routes for employers to better inform institutions of their needs.

Further actions by employers, to be led through CSS, could also include:

• soft skills training: develop a soft skills training course for undergraduates before they look for jobs in the industry. This should build commercial awareness, team work, and communication skills in order to excel in a commercial chemical sciences environment

• communication: develop a chemical sciences zone on the Skills Development Scotland websites ‘Our Skillsforce’ and ‘My World of Work’. This is to build on the existing websites of Talent Scotland and Scottish Enterprise. This should be kept up to date for both industry and students

• sponsorship: promotion to employers of the benefits of sponsoring university projects, especially in areas of ‘continuous chemistry’. Promotion to employers of the benefits of sponsoring university projects.

Trainee Tim Catley was typical of candidates taking part in the course. The architecture graduate and former Royal Marine found that the training offered the ideal springboard for entering the sector.

He said: “Forth Valley College has provided an excellent opportunity for me to access an exciting and more importantly, a secure career.

“The course was a mixture of both theoretical study and practical based learning delivered through highly experienced industry trained staff.

“The POCC has given me a strong basic knowledge of process operations and has provided an excellent building block for me to start.”

Ian Fyfe HR Director of Ineos said: There is a great demand for skilled people in our industry and we were aware that many people in Scotland, while having the base skills necessary to work in the chemicals sector, lacked the industry specific skills. By working with our key training partners we were able to give these talented individuals a comprehensive grounding in the industry skills required. It was great to see so many of the participants find new opportunities.

Trainee Tim Catley (centre) with some fellow course mates on the Westfield Training rig at Forth Valley College’s Falkirk Campus.

5Key challenges

and prioritiescontinued

6Action plan

The action plan details the key actions that will be undertaken to support the growth ambition of the chemical sciences sector.

It has been developed with industry and other stakeholders in order to respond to the key skills priorities of the sector.

This has been developed around the four themes which were set out throughout this document:

• increasing the flow of new entrants to the sector

• developing pathways to help recruit experienced people

• upskilling of the existing workforce

• better meeting employer demand.

The action plan sets out specific short-term and longer-term actions, partners and inception timescales.

The projects contained within the action plan will be accessible to chemical science employers across Scotland, and will have a regional focus where a need for this is identified.

This includes existing activity which is either already underway or was already in the pipeline to take place. Activities have not necessarily been initiated as a result of the SIP, but are deemed to be an appropriate existing mechanism for responding to some of the skills issues which have been raised.

The action plan also presents solutions which have been designed specifically in response to the skills issues identified within the SIP. These activities are strategic in nature and require further work before they can be delivered.

Action Description Expected outcomes Partners Start dateIncrease use of Modern Apprenticeships in frameworks related to Chemical Sciences

Promotion of Modern Apprenticeship opportunities to Chemical Sciences companies

Increase the number of apprenticeships in Chemical Sciences related frameworks from 1,900 to 2,200 by 2017

SDS/Colleges/Training Providers/Industry

Q4 2014

Establish a shared apprenticeship programme under an independent legal entity

Define the framework and remit of a shared apprenticeship scheme

Establishment of an agreed shared apprenticeship model

Up to 16 MAs delivered through the model by 2016

SDS/Colleges/Industry/Cogent

Q4 2014

Establish a group of 6-8 employers to implement a shared apprenticeship programme

Q3 2015

Establish work experience programmes

Increase the provision of vocational learning of graduates and HNC/D recruited in to the sector

Deliver additional work experience opportunities for 25 HNC / D students per annum

College/Industry/SDS

Q1 2015

Future skills needs

Updating view of future engineering skill needs across a range of sectors to reflect changing recruitment patterns sector

Review of up to date information of future demand across engineering relates sectors) and development of demand statement.

SDS/SEMTA/Cogent

Q1 2015

Address gender imbalance in the sector

Targeted campaign to coordinate and promote sector opportunities and college/apprenticeship routes to girls, focused in the three local authorities where the sector is largest

Increase in proportion of females moving into the chemical sciences industry

SDS/Colleges/SFC Q2 2015

Develop career information

Develop information collateral to use in schools, FE and HE to show the range of careers and various entry routes. Develop case studies with real life examples.

Delivery of 20 targeted careers information sessions in Schools, Colleges and Universities.

Increased uptake of chemical sciences subjects at school, FE and HE.

SDS/Colleges/Employers/Cogent/CSS

Q2 2015

Theme 1: Increasing the flow of new entrants to the sector

Action Description Expected outcomes Partners Start dateEstablishing common pathways in to the sector

Delivering transition training courses designed with employers to give sector-specific skills to people from outside the sector.

Deliver 48 transition training places, based on the needs of employers.

Enable employers to input to the design of the course and selection of candidates.

SDS/PACE/Colleges/RSC/Employers (via Cogent and CSS)

Q1 2015

Communication plan to be developed to attract skilled people from outside the sector onto the transition training course

Job Centre/PACE/SDS/Colleges

Q2 2015

Promoting Scotland globally as the chemical science career location of choice

Promote Scotland as a top choice career destination for chemical sciences at major UK/international events

Scotland becomes a location of choice for a career in chemical sciences

SE (TalentScotland)/SDS/Industry/SDI

Q4 2014

Organise and deliver short seminars to introduce SMEs to the UK immigration system and becoming a sponsor

Increased number of experienced staff taking up roles within Scottish chemical science companies

SE (TalentScotland)/SDS/Industry

Q1 2015

Provide immigration advice and support to chemical science employers on an individual basis where appropriate

Industry cite an increase in ability to recruit the right staff for experienced roles within their organisation

SE (TalentScotland)/Industry

Q2 2015

Theme 2: Developing pathways to help recruit experienced people Theme 3: Upskilling of the existing workforce

Action Description Expected outcomes Partners Start dateColleges to further develop provision to meet employer needs

Increase scale and relevance of activity. Involve industry in course design, share resources/staff

CSS to review the involvement of its members with education institutions and request greater involvement where required

Employers/Colleges/Universities

Q3 2015

Supporting use of Flexible Training Opportunities to support upskilling in the sector

Promotion of public sector support of FTOs

50 episodes of training supported through Flexible Training Opportunities Fund.

SDS Q3 2015

Skills academy Investigate options for an industry focussed skills facility to address company and geographic challenges

Feasibility study completed CSS/SDS/SE Q4 2014

Theme 4: Better meeting employer demand

Action Description Expected outcomes Partners Start dateSoft skills training

Support the introduction of soft skills training

Graduates/post graduates better able to communicate their skills and attributes to potential employers

SFC/SDS Q2 2015

Communication Develop a chemical sciences zone on Our Skillsforce and on My World of Work

Information of Our Skillsforce and My World of Work viewed as up to date and relevant for both industry and students

SDS Q2 2015

Sponsorship Promotion to employers of the benefits of sponsoring university projects

Increase the need for people who understand the job e.g. continuous chemistry versus batch processes

CSS Q2 2015

The co-ordination and delivery of the SIP will be led by the SDS life and chemical sciences sector manager and overseen by the CSS skills group.

Specifically, SDS will facilitate the following:

• co-ordinating the activities of partners in support of the action plan and reporting on progress to the CSS skills group

• developing a performance framework including indicators of success to monitor progress of individual actions, as well as the overall performance of the SIP. It will also be important to consider how progress can be reflected within the outcome agreements developed by the colleges and universities

• where required, securing resources to support the implementation of activities set out in the action plan

• co-ordinating the delivery of specific projects, through working in partnership with public sector and industry colleagues, to ensure that they are delivered in areas of need.

It is proposed that a formal review of the SIP and action plan will be undertaken 18 months after the launch of the document and a statement of progress will be produced by SDS on behalf of the CSS skills group.

7Monitoring and

implementation

“a formal review of the SIP and action

plan will be undertaken 18 months after the

launch of the document”

A broad definition of the chemical sciences sector was developed following consultations involving SDS and Scottish Enterprise. The definition is centred on two Standard Industrial Classification (SIC)13 Divisions: 20: Manufacture of Chemicals and Chemical Products; and 21: Manufacture of Basic Pharmaceutical Products and Pharmaceutical Preparations; covering the following SIC codes:

• 20110: Manufacture of industrial gases

• 20120: Manufacture of dyes and pigments

• 20130: Manufacture of other inorganic basic chemicals

• 20140: Manufacture of other organic basic chemicals

• 20150: Manufacture of fertilisers amd nitrogen compounds

• 20160: Manufacture of plastics in primary forms

• 20170: Manufacture of syenthetic rubber in primary forms

• 20200: Manufacture of pesticides and other agrochemical products

• 20301: Manufacture of paints, varnishes and similar coatings, mastics and sealants

• 20302: Manufacture of printing ink

• 20411: Manufacture of soap and detergents

• 20412: Manufacture of cleaning and polishing preparations

• 20420: Manufacture of perfums and toilet preparations

• 20510: Manufacture of explosives

• 20520: Manufacture of glues

• 20530: Manufacture of essential oils

• 20590: Manufacture of other chemical products nec

• 20600: Manufacture of man-made fibres

• 21100: Manufacture of basic pharmaceutical products

• 21200: Manufacture of pharmaceutical preparations

Due to the broad nature of the definition used here, there is overlap with the existing life sciences SIP. Approximately 37% of employment attributed to the chemical sciences sector in this SIP has been covered in the life sciences SIP. However it was thought important to adopt this wider view to fully represent the chemical sciences sector.

Appendix 1 - Defining the sector

13 SIC Codes are used to classify business establishments by the main type of economic activity in which they are engaged.

Appendix 2 - Evidence tables

Year GVA Scotland (£m) GVA UK (£m) Employment Scotland Employment GB

2008 6.5 4.2 - -

2009 6.7 4.0 38 38

2010 9.4 5.5 42 40

2011 5.8 5.1 52 40

2012 - - 41 38

Source: SQW (- = data not available)

Table 1: GVA and employment per firm

0-4 5-9 10-19 20-49 50-99 100-249 250-499 500-999 1000+

Chemical Sciences sector

2% 3% 4% 12% 20% 20% 28% 0% 12%

Total employment Scotland

8% 9% 11% 17% 12% 14% 9% 7% 13%

Source: SQW analysis of ONS BRES – base 8,890 for chemical science and 2,426,000 for total employment

Table 2: Employment by size band (2012)

Change 2009/10 – 2012/13

2009-10 2010-11 2011-12 2012-13 Actual %

Engineering 29,800 28,225 23,950 23,155 -6,645 -22%

Sciences and Mathematics 9,180 6,440 6,375 7,110 -2,070 -23%

Manufacturing / Production Work 1,640 1,375 1,560 1,505 -135 -8%

Oil / Mining / Plastics / Chemicals 500 400 455 400 -100 -20%

All other subjects 348,970 301,505 251,550 232,250 -116,720 -33%

Source: Scottish Funding Council, Infact database 26/02/2014

Table 3: Number of students at Scottish FE college (headcount)

Change 2009/10 – 2012/13

2009-10 2010-11 2011-12 2012-13 Total %

Aberdeen, University of 660 683 737 776 116 18%

Abertay Dundee, University of 470 535 382 105 -365 -78%

Dundee, University of 222 264 270 390 168 76%

Edinburgh Napier University 636 710 704 490 -146 -23%

Edinburgh, University of 1,436 1,725 1,758 1,937 501 35%

Glasgow Caledonian University 408 444 583 453 45 11%

Glasgow, University of 966 1,012 1,018 1,470 504 52%

Heriot-Watt University 1,146 1,050 1,052 897 -249 -22%

Open University in Scotland 220 207 211 131 -89 -40%

Robert Gordon University 370 429 413 327 -43 -12%

St Andrews, University of 735 926 855 688 -47 -6%

Stirling, University of 123 129 190 198 75 61%

Strathclyde, University of 1,426 1,412 1,298 1,396 -30 -2%

Scottish Agricultural College 37 35 28 32 -5 -14%

Highlands and Islands, University of the 426 502 466 332 -94 -22%

West of Scotland, University of the 691 609 491 435 -256 -37%

Total 10,169 10,827 10,605 10,200 31 0%

Source: SFC Note: Data is for students from all domiciles

Table 5: Chemical science graduates from Scottish HEIs

Change 2010/11 – 2012/13

Chemical Sciences related 2010/11 2011/12 2012/13 Total %

Undergraduate 9,675 8,874 8,863 -812 -8%

Postgraduate 3,732 3,418 2,897 -835 -22%

Total 13,407 12,292 11,760 -1,647 -12%

All subjects 2010/11 2011/12 2012/13 Total %

Undergraduate 165,495 162,210 162,025 -3,470 -2%

Postgraduate 55,580 54,115 52,760 -2,820 -5%

Total 221,075 216,325 214,785 -6,290 -3%

Source: SFC and HESA Statistical First Release 197,183 and 169. Note: Data is for students from all domiciles

Table 4: Enrolments at Scottish HEIs (2010/11 – 2012/13)

Appendix 3 - References

• Chemical Growth Strategy Group, 2013. Strategy for Delivering Chemistry-Fuelled Growth of the UK Economy. Available at http://www.cia.org.uk/Policyissues/GrowthStrategy.aspx

• Chemical Sciences Scotland, 2010. Written submission to Scottish Parliament European and External Relations Committee. [pdf] Available at http://archive.scottish.parliament.uk/s3/committees/europe/inquiries/euDirectives/InternationalEngagement/IE-ScottishChemicalSciences.pdf

• Chemical Sciences Scotland, 2012. Platform for Growth – A strategic plan for the Chemical Sciences in Scotland. Available at http://www.scottish-enterprise.com/industry-support/chemical-sciences

• Cogent, 2011. Current and Future Demand for Skills in the Science Based Industries – Scotland Sector Skills Assessment. Available at http://www.cogent-ssc.com/research/ssa2011.php

• Higher Education Statistics Agency, 2013. Statistical First Release 169. Available at https://www.hesa.ac.uk/sfr169



• ONS, 2013. Business Register and Employment Survey 2011 (Revised). Available at http://www.ons.gov.uk/ons/rel/bus-register/business-register-employment-survey/index.html

• ONS, 2013. UK Business: Activity, Size and Location. Available at www.ons.gov.uk/ons/rel/bus-register/uk-business/2013/

• Scottish Enterprise, 2013. International Comparative Performance of the Scottish Research Base in Chemical Sciences: A report prepared by Elsevier. Available at http://www.scottish-enterprise.com/knowledge-hub/articles/publication/scottish-chemical-sciences-research-base

• Scottish Government, 2014. Scottish Annual Business Statistics, 2011. Available at http://www.scotland.gov.uk/Topics/Statistics/Browse/Business/SABS/Archive/SABSreport11

• Scottish Government, 2014. Scotland’s Global Connections 2012. Available at http://www.scotland.gov.uk/Topics/Statistics/Browse/Economy/Exports/GCSIntroduction

• Scottish Funding Council, 2014. Infact Database. Available at https://stats.sfc.ac.uk/infact/

• Royal Society of Chemistry, 2012. Commercial Skills for Chemists: Introduction and Overview. Available at http://www.rsc.org/learn-chemistry/resource/res00000953/commercial-skills-for-chemists-introduction-and-overview

Skills Development Scotland Monteith House, 11 George Square, Glasgow G2 1DY. T 0141 285 6000 F 0141 285 6001 E [email protected] www.skillsdevelopmentscotland.co.uk

The Skills Development Scotland Co. Limited. Registered in Scotland SC202659. Registered office: Monteith House, 11 George Square, Glasgow G2 1DY.

AcknowledgementSkills Development Scotland would like to thank all the businesses and partner organisations who took the time to support the development of the SIP by taking in part in workshops, focus groups and consultations. We would specifically like to thank members of the Chemical Sciences Scotland Skills Group.

October 2014