1. Construction Skills Investment Plan Tayside Construction Forum 02 September 2015

2. Introduction - Purpose of SIPs SIPs positioned in Scottish Government Economic and Skills Strategies, and central to SDS strategy Clearly articulated and communicated statement of skills needs facing the sector Identify the skills priorities that support the sector to achieve its growth potential Framework for better alignment of skills supply with industry articulated demand National focus and emphasis on industry engagement and commitment

3. Construction SIP Story so far and Development Process Stage 1 Inception and Commissioning Stage 1 Inception and Commissioning Stage 2 SIP Research Stage 2 SIP Research Stage 3 Refinement and Validation Stage 4 Publication and communication Stage 5 Implementation and review Industry engagement Desk research, industry consultation and analysis Launch end of March at SBF

4. Consultation Process Met at SDS Glasgow on 19 th January, cross sectoral representation Satisfied with evidence base, broad themes and draft strategy and action plan, suggestions made Draft SIP refreshed and sent to panel members for review and final comment Final comments considered and draft SIP amended accordingly Endorsed by Construction Scotland, Industry Leadership Group on 23 Feb Industry Review Panel and ILG

5. Sector Overview Sector definition –Complex and multi- faceted –Main sub sectors Specialised construction (including BSE) activities Construction of buildings Architectural and engineering activities Civil engineering Manufacture of construction related goods Retail of construction related goods Employment –Employment 178,400 in 2013 (6.9% of total Scottish employment), but decline of 16% from 2008 (when it was 212,500 and 8.4%) –Decline focused on central belt – (Glasgow; Edinburgh; S Lanarkshire) –Largest sub sector decline (27%) in both civil engineering and manufacture of construction related goods –In terms of occupations, the largest declines in employment over the last 5 years were in ‘process, plant and machine operatives’ jobs accounting for around 40% of all job losses

6. Employment forecasts –Some variations/ caveats but broadly consistent ~ 1% per annum (Scotland 0.5%) –Public sector infrastructure  private housing has implications for skills demand –Employment growth + replacement demand = future needs of sector Employment growth 21,000 (2,100 per annum) by 2022 Replacement demand c39,000 (3,900 per annum by 2022) Total demand around 6,000 per annum over the next few years –2015 to 2020 time horizon this will imply total labour demand of 30,000 –Even split between Managerial/ Professional/technical and Skilled Trades Future Scale of Sector

7. Modern Apprenticeships –4,435 starts in Construction related frameworks in 2013/14 (up third since 2009) –Accounted for 18% of MA starts in 2013/14 –Frameworks including mgmt and supervisory VQ – increased by 42% since 2009 and at 14% of all starts in 2013/14. –Achievement rate up to 77% (in line with other framework groups) FE/ HE –14,685 students at FE level (down third since 2009) –8,675 students at HE Institutions (down fifth since 2009) In work training –Relatively low engagement in workforce development (UKCES ESS) –18% of companies did not offer training or wider development opps (v 11% other sectors) –22% of companies offered management training (v35%) Current training activity

8. Skills Challenges Sector drivers –New technology and innovation –Energy efficiency and low carbon agenda –Industry talent pool –Business, ICT and enterprise skills Implications for skills –General trends towards higher level skills –Traditional apprenticeship route into industry may not fully reflect needs/ opportunities –Engaging SMEs and micro-businesses in workplace development –Competition with other sectors (entry level and experienced staff) –Specific implications from BIM, MMC and Innovation –Multi skilling professionals – e.g. management, ICT and HR skills

9. SIP Strategy and Actions ThemeKey Actions Attracting talent and developing new pathways Career and sector promotion ‘Foundation’ apprenticeship pathways Under-represented groups Return to construction / transition training Workforce development to meet employer demand Ourskillsforce construction hub, S4G and FTOs Management pipeline ‘ Qualifying the workforce’ Micro and SME businesses Modernising training provision and targeting interventions Regional targeting of MA’s, pathway development and College provision Maintaining (and introducing new) Apprenticeship Frameworks Providing, and stimulating demand for skills for future growth Moving from entry routes  workforce development BIM and MMC Business, ICT and enterprise skills

10. Foundation Apprenticeships Students given the opportunity to complete the first stages of a Modern Apprenticeship along with traditional subjects such as Maths and English Starting in S4 or S5 Students will also complete a placement or project with a local employer while working towards the qualification through school and college. Supported by School, pupils will attend up to 1 day per week in college for 2 years Benefits for employers include young people entering the workplace better equipped with relevant experience, skills and underpinning knowledge. It can also reduce the time on off the job training. Foundation Apprenticeships are a new opportunity being offered to students in years S4-S6 of school

11. Pilot - Foundation Apprenticeship in Civil Engineering  2 centre pilot – West Lothian College & Inverness College UHI (tbc)  West Lothian aiming for 50% Female students  Students will be in S5 & S6 - Programme over two years  Students will have achieved National 5 Maths and have qualifications in a range of technical subjects  Students will also be working towards Higher Maths  Could reduce duration of Modern Apprenticeship by 1 Year Pilot to start in September 2015

12. Shared Apprenticeship Model Shared Apprenticeship Scheme CITB, Highland Council and Construction employers Increase the number of MA places Increase the number of companies participating in the MA scheme ‘Shared Highland Apprentices in Construction’ (SHAC) run the scheme SHAC employ the MAs and work with companies to develop placements Launched 18 May, Inverness