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

2. 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

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

4. 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

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. 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?

7. 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%

8. 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

9. 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

10. 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

11. 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%)

12. 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

13. 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

14. 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?

15. 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

16. 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

17. 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?

18. Thank you