Role of LEPs in meeting skill needs of the construction sector

1. Role of LEPs in meeting skill needs of the construction sector Richard Kirkland European Structural and Investment Funds (ESIF) Co-ordinator for D2N2

2. The D2N2 LEP Area: 4,784 sq. km 12 Population: 2,196,100 5 Working age population: 1,358,100 5 GVA: £45.4bn 9 Exports (goods): £11.7bn 4 Local Authorities: 193

3. The Construction Sector in D2N2 LEP • Slightly over-represented in terms of GVA • Slightly under-represented in jobs • Productivity below sectoral benchmark • Generated £3.1 billion in 2017, 6.7% of the total GVA • Over past 15 years GVA has grown but jobs have fallen • Largest business stock (8,500) of all sectors • High GVA growth forecast to 2030 of 45% (1 of 5 sectors with projected growth in GVA of 25%+)

4. The Construction Sector in D2N2 LEP • Important for HS2, house building, infrastructure, employment sites, enterprise zones etc. • Dependent on national policies (housebuilding), government investment (transport), growing business confidence (commercial property demand / enterprise zones) • Emerging strengths in modern methods of construction (MMC) such as off site manufacture, low carbon construction technologies • Nottingham Trent University and Laing O’Rourke’s Explore Manufacturing facility in Bassetlaw

5. The challenge for the Construction Sector in D2N2 The local challenge is to ensure a pipeline of skilled workers for the construction industry, exploit our advantages in our knowledge base, support the industry to adapt to digitisation and exploit the opportunities arising from Modern Methods of Construction and low carbon technologies (heat pumps, district heating on new developments etc)

6. D2N2 Procurement Charter • Procurement Charter aims to gain the greatest social value out of investments • Apprenticeship creation one of our six key priorities. • Successful capital projects must demonstrate they have worked to target the six key action points of the procurement charter before funding is released

7. Derby College Technology Hub

8. Derby College Technology Hub • £1.3m of Local Growth Funding committed to a £1.75m overall project cost. • Creation of new learner floorspace to improve teaching and raise the standard of provision in construction and engineering • New equipment available to allow for ICT to be more integrated into the teaching of construction programmes and will increase the provision of BIM. • Support construction companies address skills shortages, co designed and delivered with local employers • 125 learners per year will complete the programme raising the number of learners qualified at Level 3+ and Apprenticeships

9. Vision University Centre • £2.61m of LGF used to develop new higher level skills centre at Vision West Nottinghamshire in Mansfield enhancing the offer in the area • New Centre will complement existing college construction offer by offering higher level qualifications e.g. management

10. Nottingham City Hub • £30m of LGF funding utilised to support project scheduled to open in 2020 • The City Hub is the largest LGF award and will provide venue for enhanced skills development • Nottingham College are offering on site construction provision to support the CITB’s Construction Skills Fund initiative.

11. Workforce not as well qualified as the UK overall. 32% qualified to NVQ4 level or above in D2N2 compared to 37.9% in the UK. • Estimated working age population will rise by 1% between 2014 and 2039 !!!! • Exposed to Brexit - Treasury estimates 8.5% of the jobs in East Midlands related to EU exports: 5% of the EM working age population are EU nationals (compared to 4% in other regions), EU nationals are predominantly employed in private sector and 66% have middle to high skills • Technology-driven changes in nature of work to require re-skilling by workforce as well as maximising potential of young people and unemployed entering the labour market. • Drive up productivity in all sectors, so that jobs at all levels support progression and are better paid. • Closing gap between the skills of people and the needs of employers is essential if we are to achieve our vision of a productive, prosperous and inclusive economy Emerging skills issues

12. Future Workforce Equip young people with knowledge and skills required to make informed career choices to access employment and provide businesses with a strong pool of talent Inclusive Workforce Support individuals furthest away from the labour market to reengage and move towards and into productive work. To support employees to move up the skills escalator into more productive, better paid jobs of the future Skilled and Productive Workforce Enable businesses to find talent they need, equip their workforce with the skills of the future Planning for future Skills Needs Build intelligent, evidence-based local skills ecosystem capable of matching the skills of the population with the needs of business e.g. LEP Board and the Skills Advisory Panel Skills for the Future

13. Future Plans Technical Construction Skills • £2m of ESF programme • Unemployed / inactive to gain technical skills to support the construction sector • Focus on developing skills to meet future needs in relation to new technology, modular housing construction, low carbon technology production methods.

14. Future Plans Skills Access Hub • £2.4m ESF programme • SME’s lack capacity, knowledge and incentives, to engage with education and training institutions • Practical and coherent routes to engage with provision to support skills needs as part of their overall growth strategies. • One stop skills shop linked to Growth hub

15. Future Plans Careers and Employability Hub • £1.5m of ESF programme • Employers have recruitment challenges at all skills levels. • Issues with ‘work-readiness’, employability skills, lack of awareness of job and careers opportunities of young people. • Focus to enhance links between employers and schools to provide meaningful/inspirational experiences of the world of work and inform career decisions

16. Horizon scanning Opportunities – HS2 Phase 2 - 2033 • East Midlands HS2 Hub at Toton • HS2 station at Chesterfield • HS2 Infrastructure and maintenance depot at Staveley • Estimated to create 74,000 to 90,000 jobs • HS2 supply chain opportunities and support • Co-ordinated business support to help SMEs benefit from HS2 related contract and supply chain opportunities, • Develop comprehensive HS2 awareness campaign aimed at raising the ambition of businesses to make the most of HS2

17. HS2 Skills and Employability Strategic Framework HS2 Skills and Employability Strategic Framework in D2N2, with focus on 5 key areas of activity: • inspiring young people – particularly primary (2033) • building further education capacity • harnessing the power of our universities • Support for individuals • ensuring our businesses are ‘HS2 ready’.

18. HS2 Infrastructure Opportunities • ‘Toton Innovation Campus’; which will bring leading businesses, colleges, universities and research institutions together. • Campus capable of delivering up to 11,000 high-quality jobs, 5,000 homes and a range of leisure opportunities. • The Northern Derbyshire Growth Zone centred around the HS2 station in Chesterfield and the Staveley maintenance depot will have a transformational impact on the Derbyshire economy