APPENDIX 41
Memorandum submitted by Skillfast-UK
INTRODUCTION
1. Skillfast-UK is the Sector Skills Council
for apparel, footwear and textiles, and has responsibility for
more than 30,000 manufacturing enterprises.
2. Skillfast-UK welcome the Trade and Industry
Committee's inquiry into the "The future of manufacturing
industry in the UK" as an important step in the process to
promote a better understanding of the key factors which affect
manufacturing in the UK.
3. Clearly, there are broad skills and productivity
issues that cut across the whole of manufacturing; but at the
same time the apparel, footwear and textiles sector faces challenges
that are distinctive and to which employers demand dedicated solutions.
As such, this response is intended to act as a supplement to the
submission provided by the Skills for Business Network (SfBn)
on behalf of the five Sector Skill Councils (SSCs) covering key
parts of the UK manufacturing skills base.
4. As noted in the SfBn submission, Skillfast-UK
would be pleased to provide oral evidence or supplementary evidence
if this would be helpful to the Committee.
5. This submission provides an overview
of the key skills and competitiveness issues faced by the apparel,
footwear and textile sector. It is our belief that this analysis
strongly supports the case for significant changes to the pattern
of public investment in the skills development of the sector workforce.
KEY SKILLS
DEFICIENCIES FACED
BY THE
APPAREL, FOOTWEAR,
TEXTILES SECTOR
6. There are powerful factors that shape
the level and pattern of skills needs within the sector. The most
important are as follows:
— Increasing competition from low cost
overseas producers and continuing price deflation in the UK market,
leading to pressure on margins and reduced profitability for many
sector firms.
— The transfer of manufacturing capacity
offshore; with functions such as design, range management, wholesale
and distribution often retained in the UK.
— A growing focus on high value, niche
and fast response opportunities by the UK manufacturing sector
and an increasing reliance on export markets.
— Rapidly changing consumer tastes,
mediated by a concentrated retail sector with strong buying power,
creating a need for greater flexibility among suppliers.
— An increasingly globalised sector,
resulting from continuing trade liberalisation, convergence of
consumer preferences worldwide, globalisation of investment and
improving communications.
— The need for effective deployment
of technology in order to maintain competitiveness, particularly
in areas such as design, manufacturing and supply chain management.
— An increase in the salience of sustainability
issues, including environmental protection and ethical production.
7. The current and emerging strategies adopted
by sector companies to address the external forces detailed above
can be grouped into a number of categories, none of which are
mutually exclusive. Each of these strategies has distinctive implications
for skills. The strategies can be summarised as follows:
— Overseas and balanced sourcing.
— Fast turn manufacturing.
— Niche and added-value markets.
— Direct sales (eg use of e-commerce
to circumvent existing retail distribution networks).
— Service provision to support global
production (eg garment processing services to support fast fashion
supply chains).
8. The success of this range of strategies
depends upon a complex mix of skills in areas such as:
— Management skills, across a broad
spectrum, including resource allocation, project management and
supply chain management
— Operator multi-skilling and team
working
— Quality control (right first time)
— International marketing and distribution
— Research and development
— Technology—eg chemistry, engineering,
fibre science
— Information and communication technology
— Higher level technical skills in
areas such as garment/footwear construction and sample development
— Flexible manufacturing—eg single
cell manufacturing
9. The research conducted as part of the
development process for our Sector Skills Agreement found that
there are areas in which supply does not meet the pattern of current
and emerging demand. The key skills issues are as follows:
— Recruitment problems in respect of
operator and other entry-level roles. A wide range of operative
roles are affected, including sewing machinists, textile process
operatives, warehouse operatives etc.
— Skills shortages and skills gaps
affecting design roles, with appropriate technical and commercial
skills in short supply. Apparel and fashion design are chiefly
affected; however there is also an impact on footwear and some
textiles industries.
— Shortages of graduate technologists
with the industry skills and knowledge needed to drive business
performance in areas such as technical textiles
— Lack of capability in business skills
relating to international trade and control of global supply chains.
This issue has a widespread impact and is of critical importance
to apparel suppliers, independent designers, technical textiles,
and knitting industries.
— Deficiencies of specialist craft
and production skills. A wide variety of occupational categories
are affected including skilled leather trades (eg shoemakers),
handcraft tailors, textiles technicians, textiles operatives.
— A need to intensify effective multi-skilling
and flexibility across the sector workforce. This particularly
applies to workers at operative level and affects all manufacturing
industries contained within the sector footprint.
10. There are also skills gaps that relate
to more generic skills, which are common to manufacturing and
the wider economy. The highest incidence of establishments reporting
gaps is in the following areas:
— Information and communications technology
skills.
— Management and supervisory skills.
— Sales and marketing skills.
11. It should also be noted that in general
terms the apparel, footwear and textiles sector has a relatively
low awareness of recognised business improvement techniques such
as "Lean Manufacturing".
IMPACT ON
SECTOR FIRMS
OF SKILLS
DEFICIENCIES
12. Our SSA research indicates that skills
gaps within the workforce have a considerable impact on the performance
of sector firms—with serious consequences for their competitiveness.
The key implications for sector firms can be summarised as follows:
— Recruitment problems in respect of
skilled labour affect the ability of sector firms to meet production
and operational targets, and consequently increase the impetus
towards transfer of production activities offshore.
— Skills deficiencies of designers
affect firms' commercial development, including their ability
to develop new products, source production from overseas, and
tap into opportunities in the retail sector.
— A shortage of graduate technologist
skills severely hampers product development activity—science/technology
skills and knowledge are a critical driver of the product development
process that is a key contributor of added value to technical
textiles and other sub-sectors.
— Deficiencies of specialist craft
and production skills at industry level compromise the ability
of firms to diversify their product base and move into higher
added value markets. This is an issue of increasing salience as
the small-scale production of difficult-to-make items will be
a key feature of the sector going forwards, with the availability
of appropriate craft skills, whether they be in shoe making, embroidery
or tailoring, critical.
— Widespread skills gaps affecting
technicians and tradesmen affect product quality, productivity
and ability to convert product concepts into realisable products.
— Lack of capability in business skills
relating to international trade means that firms are constrained
in their ability to diversify their customer base through export
and meet customer needs cost effectively through overseas sourcing.
13. Recent international research suggests
that there is an association between growth in Total Factor Productivity
in a country's apparel, footwear and textiles manufacturing sector
and the presence of intermediate skills (up to and including S/NVQ
Level 3 equivalent) in the sector's workforce. Comparative research
looking at parts of the UK and Italian sectors at a micro level
also places a significant emphasis on the importance of skills
in areas such as design, marketing and garment construction to
the apparently superior competitiveness of the sector in Italy.
EFFECTIVENESS OF
THE DIALOGUE
BETWEEN INDUSTRY
AND EDUCATION/TRAINING
PROVIDERS
14. The evidence suggests that the level
of dialogue between education and training providers and sector
employers is limited and that the effectiveness of this dialogue
is likewise patchy. Some institutions actively engage with industry
at a variety of levels and there remains a small number of training
providers that are genuinely employer-led. Nonetheless, the majority
of sector employers have little or no contact with external learning
providers, particularly with regard to technical skills development.
Skillfast-UK believes that a new model of employer-led workforce
development is needed for the sector and that this would secure
greater commitment and investment from employers themselves as
well as from the public purse.
15. There are a number of key issues which
limit investment in training by the sector and which need to be
addressed through a dialogue between employers and the supply-side:
— A severe shortage of external provision
dealing with sector-specific technical subjects, combined with
a lack of awareness of available provision among sector companies.
— A belief that much of the provision
that is available is not relevant to sector needs (eg much of
the Further Education provision dealing with fashion design, "hobby"
courses).
— An inability to release employees
to participate in training because of the core demands of the
business. Sector companies tend to have a very slimmed-down workforce,
often working in shift patterns.
— A lack of effective in-house skills
development infrastructure within many companies.
— A lack of commitment to formal qualifications
as they are currently constituted, which limits participation
in publicly-funded learning.
Availability of learning provision
16. Employers identify a range of gaps in
vocational education and training provision that are required
to meet specific industry needs. Some of these gaps are due to
a lack of provision in the employer's immediate locality but some
are due to a shortage of provision on a national level.
17. Our current assessment of the situation
regarding publicly funded training relating to sector-specific
skills is that the capacity of much of the mainstream provider
base continues to deteriorate as the ongoing fragmentation of
the industry reduces the scope to deliver training profitably
under traditional models. This means that the sector is heavily
reliant on in-house skills development resources, which impacts
on its ability to build the capacity of employees in key areas
of under-pinning knowledge. For example, the NVQ delivery infrastructure
in England for sector-related skills is now limited in terms of
its size and the scope of its coverage, with particular industries
reliant on small numbers of centres or, in some cases, having
no centres at all.
Employer perception of relevance of education/training
provision
18. Almost a half of employers in the sector
believe that the education system does not supply enough people
with the skills that are needed in the world of work. This issue
pertains to all levels of the education system from school leavers
to graduates.
19. Design education is a key example. Despite
significant investment in fashion design education at Further
and Higher levels, there is still a significant incidence of skills
shortages and gaps relating to design roles within the sector.
20. This is because the quality of courses
is highly variable in preparing students for employment in the
sector. Key concerns relate to the degree of employer involvement
in curriculum design, assessment processes and provision of placements;
the integration of theoretical and practical elements within the
curriculum; and the varying degree of emphasis on student progression
and employability.
21. In similar vein, only a fifth of sector
employers perceive that courses from any external provider are
potentially relevant to the needs of their business, with training
carried out in the workplace consequently viewed as the key mechanism
for developing the skills needed to drive productivity in the
sector.
Funding of provision
22. The level of public investment in sector-related
skills development through the Further Education network is substantial.
However, the majority of investment is linked either to textiles/fashion
design courses, which primarily prepare young people for design
courses at HE level, or non-vocational courses of study in hobby/craft
subjects which lie outside the National Qualifications Framework.
Only a small proportion of recorded learning activity that falls
in this category has a specific industrial focus. This presents
a strong case for the re-direction of this investment into areas
of skills development that are more directly linked to sector
competitiveness.
23. This should mean a greater emphasis
on developing companies' in-house training infrastructures, which
are the main foundation of workforce development activity. This
area currently receives limited attention in terms of national
policy.
24. In addition, we believe that it would
be beneficial to target investment on the development of adult
skills at level three. Funded participation in apprenticeships
is currently limited to young people aged 16-24 but we believe
that this offers too narrow a focus. The sector covered by Skillfast-UK
has the highest proportion of workers lacking in formal qualifications
of any SSC footprint. Although this does not directly equate to
a low level of workforce skills it does provide a basis for arguing
that these workers should be given the opportunity to further
develop their skills through structured learning leading to accreditation.
25. There is a strong case for greater flexibility
in funding arrangements for learners aged 25 and over. The main
focus is currently on support for the achievement of a first level
two qualification. However, this is out of kilter with the fact
that employers are less able to attract recruits from a dwindling
pool of young people and increasingly reliant on an intake of
mature adults seeking a change of career.
Role of the Sector Skills Council
26. As the culmination of an extended programme
of work to develop a Sector Skills Agreement, Skillfast-UK's Stage
five sets out a suite of 14 possible solutions which, going forwards,
will form a basis of more detailed discussions with employers
and stakeholders in England and each of the Devolved Nations.
Advanced discussions are already taking place with a range of
partners to develop more detailed implementation plans for a number
of our proposed solutions. The proposals are summarized below:
|
| Theme | Proposal
|
|
| Recruitment and retention | "Intro": An operative recruitment programme to assist employers in drawing on diverse sources of labour, providing support for employability skills and assistance for employers in providing an appropriate induction and training infrastructure.
|
| The proposal in action |
| Skillfast-UK is working closely with sector employers and key partners, including the Department for Education and Skills, Learning and Skills Council and Jobcentre Plus, to develop a pilot programme that will provide companies with tailored screening and referral of job candidates, a wage subsidy for recruits taken from the claimant register and access to skills development support. The projected launch date for the pilot is early 2007.
|
| Graduate-level skills in design and technology
| "Walk the Talk—Design Recruits": A sign-posting initiative to ensure that FE and HE courses provide students with technical and commercial preparation for employment in the sector
Design Advisory Service: An initiative to provide enhanced networking of support for young and self-employed designers plus mentoring around business skills for fast-growth design businesses
"Career Catalyst": A fast-track apprenticeship programme to convert science graduates into technologists with industry-specific skills and knowledge
|
| International trade and the supply chain |
"Beyond the Border-line": A sector-specific flexible training programme leading to a recognised qualification on issues pertaining to overseas sourcing and international trading.
|
| Supply of technical skills at operative and craft/technician level
| "Skills HQ": UK-wide network of specialist centres offering "blended learning" (a combination of formal and workplace-based learning), utilizing both peripatetic and in-house trainers.
|
| The proposal in action: Mulberry apprenticeship
|
| Working with Bridgwater College, Learning and Skills Council Somerset and Bath Spa University, Skillfast-UK has helped the luxury leathergoods company to put in place a leather production apprenticeship programme. 20 young people will be recruited as apprentices with the support of Connexions. Innovative aspects of the plan include the use of in-company "expert witnesses" to facilitate the NVQ assessment process and the opportunity for other small businesses in the region to use Mulberry's premises as a specialist technical training hub.
|
| "Flexi-Techs": A programme to help textile technicians build a more flexible range of skills, building on training provided by machine manufacturers
"Text/Context": A Foundation Degree combining contextual knowledge on the textiles sector with technical skills, to build skill capacity for the technical textiles industry at the operative level.
|
| In-company training capacity | "Cascade": A programme to build training infrastructure for the apparel and knitwear industries to make operatives productive using proven best-practice techniques
"Lean Learning": Paving the way for skills development linked to lean-manufacturing techniques for increased productivity and competitiveness.
|
| Qualifications infrastructure | "Mix and Match": A programme to give employers the chance to build a customised S/NVQ qualification using modules from different qualifications
"Clean Break": A new, publicly funded S/NVQ for the laundry and dry-cleaning industry delivered by approved providers.
"Expert Witness": Employers are given the option of nominating an employee with expert knowledge as an internal assessor, reducing the cost and burden of implementing NVQs.
|
| Information, advice and guidance | "The Knowledge": A programme of activity to deliver a realistic picture of the sector to teaching and careers professionals, providing a specific focus on the opportunities available and employers' skills requirements.
|
| The proposal in action: The Knowledge — a one day conference
|
| In May 2006 Skillfast-UK organised a one-day conference for more than 150 teaching and careers professionals, focusing on topics such as sector labour market intelligence, careers in the sector, and suggestions on classroom activities. Around three-quarters of delegates indicated that their view of the sector had changed as a result of their attendance at the conference.
|
| Management and leadership development | "Solutions 4 Business": Activity to ensure that sector employers have ready access to flexible management development solutions, including skills development and mentoring, contextualised to the specific needs of their industry, where appropriate.
|
|
27. Going forwards, in return for diverting public funding
into workplace learning that employers do want, Skillfast-UK will
deliver increased employer investment in the skills that drive
sector productivity.
28. Our consultations with employers indicate that, under
a revised system, sector employers would increase their contribution
in the following areas:
— Curriculum and programme design and student assessment.
— Provision of student placements.
— Enhancement of HR infrastructure.
— Support for employees in undertaking accredited
training.
— Development of staff to become industry trainers.
— Development of staff at management level.
— Release of surplus equipment and materials for
training purposes.
— Investment in productivity techniques, such as
lean manufacturing.
September 2006
|
