1. AGENDA 1.Introduction & background D2N2 2.Summary of analysisCITB 3.Recommendations CITB 4.Discussion Q&A CITB 5.What happens next CITB & D2N2

2. D2N2 Local Enterprise Partnership Supporting the Construction Sector 1.Local Growth Fund (up to £47bn investment in capital programmes across D2N2) 2.Procurement Charter launched in July 2015 3.Refresh Skills Strategy – driven by Sector & Skills Advisory Group 4.Area Based Reviews to identify needs 5.Influence demand

3. D2N2 Local Enterprise Partnership Construction labour and skills research pipeline analysis report 1.Objectives of the report 2.Background & limitations 3.Some significant findings 4.Recommendations 5.Discussion

4. A skilled and flexible workforce that supports: economic growth; enhanced productivity and jobs growth for the D2N2 area Objectives a)Give you an EVIDENCE BASE Allowing D2N2 to: b)Support decision making c)Direct development of education / curriculum d)Support business- provider collaboration 1.Support growing businesses 2.Develop a skilled flexible workforce 3.Drive higher level skills 4.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 What CITB can do The region’s opportunities A skilled workforce

5. 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)

6. Estimates of other work (>£250k + repair & maintenance) Pipeline analysis – calculating demand Project pipeline analysis What would regular sampling of the project data look like? 0 80,000 40,000 60,000 201520172018 2020 20,000 2016 2019

7. Known demand by project type 2016 construction spend% of total New Housing£813.8m27.7% Private Commercial£791.8m26.9% Infrastructure£513.7m17.5% Public Non-residential£396.3m13.5% Private Industrial£198.1m6.7% Non-housing R&M£144.8m4.9% Housing R&M£83.1m2.8% Total£2,941.7m100.0% PIPELINE [2016 – 2020] Planning applications Total projects Significant projects% Number94318019% Total construction spend£10,420m£8,650m83%

8. Construction labour demand for known projects2016 Non construction professionals7,500 Wood trades & interior fit out5,700 Plumbing, heating, ventilation4,000 Other construction process managers3,800 Other construction professional & technical3,750 Labourers3,700 Electrical trades3,550 Senior, executive & process managers3,500 Building envelope specialists2,650 Painters & decorators2,200 Bricklayers1,750 Non construction operatives1,700 Roofers1,300 Civil engineers1,650 Surveyors1,650 Construction trades supervisors1,100 Architects850 Logistics600 Scaffolders550

9. EAST MIDLANDS D2N2 & the East Midlands East Midlands region  Employment forecast data  From the CSN (January 2016) 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 D2N2

10. 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 79,400 construction workers in D2N2 (48% of East Midlands) = 7% of total employment Supply The construction workforceD2N2 Training 198,000 learners in FE (all sectors) 61 construction training providers Construction & building services training  8,900 learning aims (6.6% of total) 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

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

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

13. D2N2 Summary Labour demand Training 79,400 workers in 2015 Peak demand = 118% 61 training providers 8,900 construction, building & engineering learning aims delivered 60% of construction training delivered by five main colleges Drivers (% of demand 2016) 1.New housing 27.7% 2.Private commercial 26.9% 3.Infrastructure 17.5% 4.Public non-residential13.5% Construction occupations at peak Wood trades & interior fit out5,700 Plumbing, heating, ventilation4,000 Other construction managers3,800 Other construction professional3,750 Labourers3,700 Electrical trades3,550 Construction specific shortfalls Scaffolders Roofers Construction Supervisors Labourers Steel erectors Bricklayers 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

14. D2N2 RECOMMENDATIONS Construction skills plan 1a Validate the gaps for critical skills & professions Address the short & long term gaps Maintain the evidence base Identify pipeline investment 1b List & describe major pipeline investments What are their implications? Reskill & upskill 1c 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?

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

16. Last words  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

17. Questions 1.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? 2.How can we collectively use this work to address gaps and shortages and work together better? 3.How will you use this piece of work to change your planning? 4.What support do you expect from D2N2?

18. Thank you