AGENDA Introduction & background D2N2 Summary of analysis CITB Recommendations CITB Discussion Q&A CITB What happens next CITB & D2N2

D2N2 Local Enterprise Partnership Supporting the Construction Sector Local Growth Fund (up to £47bn investment in capital programmes across D2N2) Procurement Charter launched in July 2015 Refresh Skills Strategy – driven by Sector & Skills Advisory Group Area Based Reviews to identify needs Influence demand

D2N2 Local Enterprise Partnership Construction labour and skills research pipeline analysis report Objectives of the report Background & limitations Some significant findings Recommendations Discussion

Objectives A skilled and flexible workforce that supports: economic growth; enhanced productivity and jobs growth for the D2N2 area What CITB can do The region’s opportunities A skilled workforce Give you an EVIDENCE BASE Allowing D2N2 to: Support decision making Direct development of education / curriculum Support business-provider collaboration Support growing businesses Develop a skilled flexible workforce Drive higher level skills Deliver infrastructure for growth Local collaboration Improve skills Match skills & economy Encourage job creation Local people fill jobs Reduce NEETs Be ready for major opportunities

Pipeline analysis – calculating demand How do we find out what is happening in construction? The project database (lists planning applications) Project data run through the CITB Labour Forecasting Tool Review mandated requirements (e.g. certification & competence schemes, card schemes)

Pipeline analysis – calculating demand 80,000 40,000 60,000 2015 2017 2018 2020 20,000 2016 2019 Estimates of other work (>£250k + repair & maintenance) Project pipeline analysis What would regular sampling of the project data look like?

Known demand by project type PIPELINE [2016 – 2020] Planning applications Total projects Significant projects % Number 943 180 19% Total construction spend £10,420m £8,650m 83% 2016 construction spend % of total New Housing £813.8m 27.7% Private Commercial £791.8m 26.9% Infrastructure £513.7m 17.5% Public Non-residential £396.3m 13.5% Private Industrial £198.1m 6.7% Non-housing R&M £144.8m 4.9% Housing R&M £83.1m 2.8% Total £2,941.7m 100.0%

Construction labour demand for known projects 2016 Non construction professionals 7,500 Wood trades & interior fit out 5,700 Plumbing, heating, ventilation 4,000 Other construction process managers 3,800 Other construction professional & technical 3,750 Labourers 3,700 Electrical trades 3,550 Senior, executive & process managers 3,500 Building envelope specialists 2,650 Painters & decorators 2,200 Bricklayers 1,750 Non construction operatives 1,700 Roofers 1,300 Civil engineers 1,650 Surveyors Construction trades supervisors 1,100 Architects 850 Logistics 600 Scaffolders 550

D2N2 D2N2 & the East Midlands EAST MIDLANDS East Midlands region Employment forecast data From the CSN (January 2016) D2N2 EAST MIDLANDS D2N2 Region 48% of the total workforce of the East Midlands region Extrapolate 48% of East Midlands to fill gaps in Glenigan data Glenigan = £250k+ projects listed by local authorities Neighbouring populations Workers move in and out

Supply The construction workforce D2N2 Training East Midlands = 164,000 construction workers Travel 23 miles to work (average) 74% live in the East Midlands 38% have 20+ years’ experience 64% have 10+ years’ experience 198,000 learners in FE (all sectors) 61 construction training providers Construction & building services training 8,900 learning aims (6.6% of total) 79,400 construction workers in D2N2 (48% of East Midlands) = 7% of total employment The main colleges deliver 60% of all FE construction training New College Nottingham West Nottinghamshire College Derby College Central College Nottingham Chesterfield College 8,600 construction companies 92.9% employ <10 people 0.1% employ >250 people

Recruitment & development plan Demand & supply Gap Analysis 79,400 construction workers across all construction sectors [2015] Peak demand [Nov16] = 118% of 2015 employment Average monthly demand [2016] = 75% of 2015 employment Shortfalls expected Recruitment & development plan Average demand for 2016 v 2015 Construction -specific occupations specific Scaffolders (259%) Roofers (145%) Construction trade supervisors (135%) Labourers (109%) Architects (290%) Cross-sector occupations Logistical operators (103%) Non-construction operatives (137%)

Gap analysis Potential training capacity Potential shortfalls Carpentry and joinery Bricklaying Plastering Painting and decorating Starters is roughly equal to applications suggesting that demand is limited. Scaffolders Roofers Construction trade supervisors Labourers nec Logistical operators Non-construction operatives Steel erectors Bricklayers

D2N2 Summary Construction occupations at peak Labour demand Drivers (% of demand 2016) Construction occupations at peak Wood trades & interior fit out 5,700 Plumbing, heating, ventilation 4,000 Other construction managers 3,800 Other construction professional 3,750 Labourers 3,700 Electrical trades 3,550 79,400 workers in 2015 Peak demand = 118% New housing 27.7% Private commercial 26.9% Infrastructure 17.5% Public non-residential 13.5% The workforce 79,400 construction workers 20 years + experience = 38% 10 years + experience = 64% Journey to work = 23 miles 8,600 construction companies 93% employ <10 people 0.1% employ >250 people Training Construction specific shortfalls Scaffolders Roofers Construction Supervisors Labourers Steel erectors Bricklayers 61 training providers 8,900 construction, building & engineering learning aims delivered 60% of construction training delivered by five main colleges

D2N2 RECOMMENDATIONS 1a 1b 1c Construction skills plan Validate the gaps for critical skills & professions Address the short & long term gaps Maintain the evidence base 1b Identify pipeline investment List & describe major pipeline investments What are their implications? 1c Reskill & upskill Are there opportunities to draw in workers from other sectors? E.g. Does a future decline in manufacturing employment provide an opportunity to fill construction gaps? Are there cross-sector impacts?

D2N2 RECOMMENDATIONS 1a 2 3 4 5 6 Construction skills plan Validate the gaps for critical skills & professions Address the short & long term needs Maintain the evidence base 2 Identify & work with partners 3 Develop a future curriculum Site ready skills Specialist building skills Reduce under-subscribed courses Colleges Construction businesses Local authorities Influencers Stakeholders 4 Outreach & image building Go out to schools: Tackle negative stereotypes Encourage applications 5 Smart procurement Mandates support for: outreach; recruitment; training and apprenticeships 6 Facilitate shared apprenticeships Local authorities work with main contractors Apprenticeships allow movement between contractors & projects

Last words What action might have the greatest effect? Training interventions need to be flexible enough to respond Labour supply is very fluid Workers travel to and from D2N2 Overprovision would be a risk when economic recovery is domestically driven What action might have the greatest effect? Work collaboratively Get the stakeholders together to develop a plan What funding is available or might be Focus on wins that are achievable and have an impact Sectors driving demand Skills demand and potential shortages Critical local infrastructure

Questions Do you endorse the findings of the report? Recognise the pipeline we’ve shown you from an employer and or curriculum perfective? Does this match your experience? How can we collectively use this work to address gaps and shortages and work together better? How will you use this piece of work to change your planning? What support do you expect from D2N2?

Thank you