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News Release from: LSC Learning and Skills Council
Edited by the Manufacturingtalk Editorial
Team on 27 February 2003
Business urged to participate in skills
revolution
Twenty three per cent of manufacturing companies reported gaps in workforce skills in 2002, an increase of 7 per cent on 2001, and more flexible, multi-skilled workers are wanted.
Twenty per cent of companies in the manufacturing sector reported gaps in the skills of their workforces in 2002, according to latest research from the Learning and Skills Council The Skills in England 2002 report reveals that 23 per cent of all companies suffered skills gaps last year - an increase of 7 per cent on 2001
This article was originally published on Manufacturingtalk on 6 Jan 2004 at 8.00am (UK)
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The report shows that skill gaps are occurring because of the introduction of new technology, organisational change, the lack of training and HR development and changes in products or services.
The Skills in England 2002, which contains data from a range of sources covering all business sectors and across the English regions, shows how skill deficiencies, as well as limiting existing business effectiveness, are also threatening England's long-term competitiveness.
Commentating on the report the Chairman of the Learning and Skills Council, Bryan Sanderson, warned: "Skills gaps are not just a problem now, they are a problem that's building for the future.
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This is just the tip of the iceberg, as latent skill gaps are widespread.
Many employers are unaware of the skills needed, not only to improve their performance but to enable them to move into higher value-added markets.
A key challenge facing us is working with employers to break the vicious circle of low skill equilibrium into which many organisations have slipped." A profile on the manufacturing sector in the Report reveals - although the industry is in decline overall, the demand for specialised skills is increasing such as managerial, technical and mechanical engineering job roles are changing with employers now requiring more flexible, multi-skilled workers employers are particularly concerned about the mismatch between academic education and industry requirement within chemical and manufacturing processing in particular the skills needed are increasing at a faster rate than the skills base of the workforce and employers are failing to utilise their workers assets fully a lower proportion of higher level electronics positions exists in England compared with Japan, Germany and the US, with specific skills required to maintain a competitive edge against lower cost nations heavy manufacture traditionally relied on under 25 year olds, which are now proving difficult to recruit Bryan Sanderson commented: "If businesses, both large and small, are to succeed in this increasingly competitive environment, employers need to play a greater role and look to the development of their existing workforce rather than the external labour market.
This is particularly true for those companies faced with the challenges of meeting staff retention and replacement demand.
In both cases, employers need to recognise that part of the 'solution' may be to adapt jobs to the individuals available.
He concludes: "Employers are of course a crucial side of the skills equation, but the report also highlights the need for education and training providers to become more innovative and flexible in meeting the demands of business.
Aligning training provision to employers' needs is fundamental to the LSC's role and our aim is for the whole skills area to become much more demand-led.
One size simply cannot fit all if we are to close the skill gaps, truly enter a skills revolution and increase the country's productivity and international competitiveness.
"We are already seeing this approach pay dividends through our Workforce Development Strategy and initiatives such as Sector Pilots, Employer Training Pilots, Centres for Vocational Excellence and our work with Investors in People.
We welcome the Government's decision to publish a skills strategy in June to address these skills issues and set out how Government, the LSC, other partners and employers will work together to achieve this.".
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