Memorandum submitted by ConstructionSkills
INTRODUCTION
ConstructionSkills is the Sector Skills Council
for the construction industry—a partnership between CITB-ConstructionSkills,
the Construction Industry Council and CITB Northern Ireland. It
is UK-wide and represents the whole industry from professional
consultancies to major contractors and SMEs. Established as a
Sector Skills Council in 2003, ConstructionSkills is working to
deliver a safe, professional and fully qualified construction
workforce.
ConstructionSkills provides assistance in all aspects
of recruiting, training and qualifying the construction workforce
across the UK. It works with partners in industry and government
to improve the competitiveness of the industry as a whole, representing
industry before Government to ensure it has fit-for-purpose qualifications,
training and funding.
CITB-ConstructionSkills is the construction industry's
Industry Training Board and has levy raising powers. It helps
the industry in England, Scotland and Wales in all aspects of
recruiting, training and qualifying the construction workforce,
and supports this by providing CITB-ConstructionSkills Grant.
ConstructionSkills has a leading role in:
— Providing sector skills intelligence.
— Defining the skills strategy for the
sector, including a sector qualifications strategy.
— Increasing employer engagement in skills
and training.
— Providing skills and training brokerage.
— Facilitating and leading skills and training
delivery.
GENERAL
— The construction industry makes a major
contribution in helping the UK and the economy to achieve a more
sustainable future—by ensuring that what is built, how it
is built and where, makes best use of sustainable technologies
and low and zero carbon. (paragraph 1.3)
DEVELOPING THE
SKILLS BASE
— To increase employment opportunities,
while at the same time increasing productivity, there is a need
for micro-businesses, which constitute the vast majority in the
construction sector, to be able to take advantage of the growing
market around Government's "green" policy and investment.
Annual spend has been projected to be between £3.5-£6
billion per annum—a sum which would provide significant
opportunities to a wide range of companies and could create a
number of new jobs. (paragraph 4.1) — In order to establish
consistency, quality and build market confidence, the underlying
skills and qualification structure needs to be examined—from
entry through to high level—to ensure that the skills are
backed by qualifications and, where necessary, accreditation and/or
certification. We believe it is critical that there is industry
involvement in this process. (paragraphs 4.2-4.3)
— It is critical that businesses, across
the construction and built environment supply chain, are supported,
as appropriate, in relation to people development—this support
may be in the form of advice, training and the time and financial
resources required. The built environment Sector Skills Councils
are well placed to support this. (paragrpah 4.5)
— In order to sustain the developing "green"
market, an "education" programme aimed at the total
population is needed, to increase understanding of the issues
and of the benefits of environmental change and develop continued
"effective demand". (paragraph 4.6)
— Currently issues relating to skills,
and environmental skills in particular, are being handled by up
to seven different government departments. A strategic approach
to meeting skills challenges is needed, with Government and industry
working together across the emerging environment opportunities
in the construction and built environment sectors. (paragraph
4.8)
— In order to maximise opportunities the
construction industry will need to develop not only its technical
capability but to interface with other sectors, for example energy
producers, and their supply chains. This could mean a significant
shift in the skills and competence of the existing industry as
part of a major process of innovation. (paragraph 4.10)
— Application of the range of "green"
technologies will require the industry to advise on and install
appropriate solutions across a range of markets. Failure of these
product innovations, due to them being installed in inappropriate
situations or a lack of expertise, could result in a downturn
across the whole sector. (paragraph 4.11)
— SSCs will also need to play a key part
in ensuring that businesses can access high quality diagnostic
services to help them create their own strategies for meeting
their needs for sustainability skills. This work is already in
hand. (paragraph 4.12)
— Construction and the built environment
is a grouping of many sub-sectors. The key construction and built
environment sector skills councils agreed in 2007-08 that the
best way forward in the development of the requisite skills is
to ensure that there is cross sector working. The Built Environment
Skills Alliance (BESA), which is an alliance of Sector Skills
Councils, could lend support here. (paragraph 4.14)
— When the 14-19 budget, currently held
by the Learning and Skills Council, moves to local authorities
it it is essential that LAs work with SCCs to maximise both employment
and training opportunities. (paragraph 4.18)
— The £100 million extra to improve
the insulation for 150,000 homes in the social sector is likely
to be the province of SMEs. There is a need to ensure that those
tasked with this activity understand the skills issues around
ensuring airflow and the variety of building that they may come
across. (paragraph 4.19)
— There is an opportunity to apply the
multiplyer effect here. Many more jobs could be created in the
private market if these often small and micro businesses amass
the skills to be credible "energy advisors". This is
an area where there may be anidentifiable need for some form of
development resource. (paragraph 4.20)
— It is reassuring that Government has
recognized, in BERR's Low Carbon Strategy: an Industry Vision,
the need for a new industrial activism that brings together different
strands of government policy to ensure low carbon companies have
access to the infrastructure, skilled workers, research and development
and investment opportunities they need. ConstructionSkills believes
this is the way to achieve both job creation and low carbon ambitions.
(paragraphs 4.21-4.23)
1. OVERVIEW
1.1 ConstructionSkills believes that the
"green" incentives in the 2009 Budget can provide a
positive stimulus for carbon reduction. As a Sector Skills Council
we are acutely aware that appropriate skills and capacity will
be required to achieve this. Our response specifically focuses
on the skills related items listed within the Inquiry document.
We have interpreted "UK environmental industries" in
the broadest sense and related this to the "nature of the
jobs that might be created in green industries".
1.2 47% of all UK carbon emissions are as a result
of the activities of the construction industry. 27% of all emissions
arise from the existing 26 million homes, 7% of all emissions
are from existing offices and 13% of all emissions are as a result
of the manufacturing of construction materials and the construction
process. The construction industry is also the single largest
producer of waste in the UK. It is worth noting that between 1990
and 2005 carbon emissions reduced in the existing housing stock
by just 4% despite the significant investment in cavity wall and
loft insulation over that period.
1.3 The construction industry makes a major
contribution in helping the UK and the economy to achieve a more
sustainable future—by ensuring that what is built, how it
is built and where, makes best use of sustainable technologies
and low and zero carbon.
1.4 For clarity, a summary of the construction
industry and the types of activities it carries out, in relation
to general construction and environmental impact, is noted in
Appendix A.
2. CONSTRUCTIONSKILLS'
RESPONSES
Clarifying the terminology
2.1 Wikipedia defines green employment as
"a worker who is employed in the environmental sectors of
the economy. Environmental green-collar workers (or Green Jobs)
satisfy the demand for green development. Generally, they implement
environmentally conscious design, policy and technology to improve
conservation and sustainability".
2.2 Whilst this is one definition it is clear
that the terms "green jobs" and "green industries"
create some confusion within the business community. As with "environmental
skills" and environmental industries' this is open to misinterpretation,
as a number of relevant jobs already exist in the construction
industry in areas such as insulation. In order to maximise employment
and employer engagement it will be necessary to "translate"
these terms into language that business understands—Sector
Skills Councils have a part to play here.
2.3 Green industries can be seen as those where
the "green" element is the sector's main area of operation,
rather than a sub-sector of wider business activity. Increasingly,
in parts of the construction sector, this is becoming part of
the way "we do business".
2.4 It is also important that the Government/Industry
Sustainable Construction Strategy moves to a position, over time,
where the word "Sustainable" is no longer needed as
all construction will be conducted in this way.
3. INQUIRY ISSUE:
THE NATURE
OF THE
JOBS THAT
MIGHT BE
CREATED IN
GREEN INDUSTRIES
AS A
RESULT OF
THE GREEN
FISCAL STIMULUS
3.1 As BERR's Low Carbon Strategy: an
Industry Vision points out, seemingly unconnected sectors
such as groundwork can benefit from the move to a low carbon economy.
For example, one firm switched from advising on bore holes to
take "advantage of a new low carbon opportunity to become
specialists in the installation of Ground Source Heat Pumps".
Such firms could be the tip of the iceberg.
3.2 What is certain is that the nature of the
jobs that might be created in green industries as a result of
the "green fiscal stimulus" will be part of a dynamic
process of change, which needs to be understood more clearly.
4. INQUIRY ISSUE:
THE SKILLS
BASE FOR
THE UK ENVIRONMENTAL
INDUSTRIES, AND
THE EFFECTIVENESS
OF GOVERNMENT
POLICIES TO
IMPROVE AND
ENLARGE IT
4.1 To deliver the low carbon future we
need to avoid relying solely on "leading edge" companies.
To increase employment opportunities, while at the same time increasing
productivity, there is a need for micro-businesses, which constitute
the vast majority in the construction sector, to be able to take
advantage of the growing market around Government's "green"
policy and investment. Annual spend has been projected to be between
£3.5-£6 billion per annum—a sum which would provide
significant opportunities to a wide range of companies and could
create a number of new jobs.
4.2 In order to establish consistency, quality
and build market confidence, the underlying skills and qualification
structure needs to be examined—from entry through to high
level—to ensure that the skills are backed by qualifications
and, where necessary, accreditation and/or certification.
4.3 DECC's Heat and Energy Saving Strategy
consultation recognises the need to build capacity and skills
to provide the new approaches to energy. We believe it is critical
that there is industry involvement in this process.
4.4 New jobs created in environmental markets
will not all require totally new skills, but will often be an
addition to existing workers skill-sets. As this market develops
it is likely that a significant number of the existing workforce
will move into specialist environmental niches. This transfer
would "free up" jobs in the traditional sector and help
to create wider opportunities for new entrants to the sector.
4.5 As markets develop, companies—and
especially small and micro businesses—will need to gain
the leadership and entrepreneurial confidence and competence to
discuss green issues with clients such as individual homeowners.
It is critical that businesses, across the construction and built
environment supply chain, are supported, as appropriate, in relation
to people development—this support may be in the form of
advice, training and the time and financial resources required.
The built environment Sector Skills Councils are well placed to
support this.
4.6 In order to sustain the developing "green"
market, an "education" programme aimed at the total
population is needed, to increase understanding of the issues
and of the benefits of environmental change and to develop continued
"effective demand".
4.7 Without the "skills activism"
proactive approach to skills investment, the skills to deal with
what could be seen as a slowly evolving market may not be developed.
Employers, governmental and individual skills investment decisions
are tied to a foreseeable need for these skills. A sustained policy
direction is essential, if employers and training providers are
to invest in these opportunities. If the recession is seen to
turn back Government's ambition in the area of sustainable development
and communities, this could severely dent companies' plans and
ambitions.
4.8 Currently, issues relating to skills,
and environmental skills in particular, are being handled by up
to seven different government departments. A strategic approach
to meeting skills challenges is needed, with Government and industry
working together across the emerging environment opportunities
in the construction and built environment sectors. Co-ordination
is needed across Government departments and greater consistency
in policy—linked, where appropriate, to elements of public
funding for people development to complement that invested by
companies and the sector as a whole.
Innovation
4.9 At a DIUS co-ordinated workshop in June
2008 at Windsor Castle on the "Skills for Sustainability"
it was noted that: "The more businesses come to see skills
and innovation and sustainability as one single cluster of issues,
the easier it will be for them to embrace the sustainability agenda—not
as an add-on but as a central part of their whole upskilling effort".
4.10 In order to maximise opportunities the construction
industry will need to develop not only its technical capability
but to interface with other sectors, for example energy producers,
and their supply chains. This could mean a significant shift in
the skills and competence of the existing industry as part of
a major process of innovation.
4.11 We must avoid the temptation to create
jobs at the expense of innovation and productivity improvements
in the burgeoning markets, as this can be counter productive in
the medium to longer term. Application of the range of "green"
technologies will require the industry to advise on and install
appropriate solutions across a range of markets. Failure of these
product innovations, due to them being installed in inappropriate
situations or a lack of expertise, could result in a downturn
across the whole sector, as happened in the UK in the 1970s with
timber frame housing.
4.12 The Windsor workshop found that "SSCs
will also need to play a key part in ensuring that businesses
can access high quality diagnostic services to help them create
their own strategies for meeting their needs for sustainability
skills". This work is already in hand as noted above.
4.13 In April 2009, ConstructionSkills—recognising
the need for innovation, skills and sustainability to be part
of an iterative continuum—set up its Future Skills Unit
which will seek to provide the best advice, support and encouragement
for industry as `sustainability' moves incrementally into the
industry mainstream.
Encouraging collaboration—the role of the
Sector Skills Councils
4.14 Construction and the built environment
is often seen as a single sector, in fact it is a grouping of
many, often loosely related, sub-sectors. This means the market
opportunities stemming from "green" investment, be it
public or private, will vary. The key construction and built environment
Sector Skills Councils agreed in 2007-08 that the best way forward
in the development of the requisite skills is to ensure that there
is cross sector working. The Built Environment Skills Alliance
(BESA), which is an alliance of Sector Skills Councils, could
lend support here.
4.15 The range of renewable energy sources and
technologies is diverse and complex spanning a number of Sector
Skills Councils and sector bodies. Recognising the need for collaborative
working, the respective Chief Executives[60]
have agreed a shared commitment to create a Renewable Energy Skills
Strategy. Working in this way fully utilises the sector specific
knowledge and experience, whilst at the same time providing a
single skills interface for environmental issues.
4.16 This skills strategy will "provide
a better understanding of the future skills requirements, the
increased training capacity required and the nature and timescales
of job opportunities in the environmental sector, whilst recognising
the specific nature of some of the job requirements in each of
the sectors".
4.17 A response to the Inquiry on behalf
of this group has been submitted and will not be covered in detail
here.
Working with Local Authorities
4.18 The fiscal stimulus gives around £100
million for local authorities to deliver housing to "higher
energy efficiency standards". Whilst what the standards will
be has not defined, the LGA report Creating green jobs: developing
local low-carbon economies states that local authorities "want
to work with employers and employment and skills providers to
ensure that skills gaps are identified and new training opportunities
provided including public sector apprenticeships". When the
14-19 budget, currently held by the Learning and Skills Council,
moves to local authorities it is essential that they work with
SCCs to maximise both employment and training opportunities.
Improving domestic scale insulation
4.19 The £100 million extra to improve the
insulation for 150,000 homes in the social sector is likely to
be the province of smaller firms in the construction sector. There
is a need to ensure that those tasked with this activity understand
the skills issues around ensuring airflow and the variety of building
that they may come across.
4.20 However there is an opportunity to apply
the multiplyer effect here. Many more jobs could be created in
the private market if these, often small and micro business amass
the skills to be credible "energy advisors". This is
an area where there may be a identifiable need for some form of
development resource.
Supporting low carbon companies
4.21 It is reassuring that Government has
recognised in BERR's Low Carbon Strategy: an Industry Vision
that: "Despite the clear economic case for undertaking
energy efficiency measures, lack of information and lack of finance—especially
in the current economic climate—can prevent businesses from
taking them up". These financial and information issues need
to be addressed.
4.22 As mentioned above, the fiscal stimulus
offers the potential of creating new jobs and at the same time
upskilling many others. There is a potential multiplyer in the
construction and built environment sector, and this requires many
more micro firms to develop.
4.23 The BERR report also states: "we
must also think about how we best equip UK businesses and workers
to compete for these opportunities. We need a new industrial activism
that brings together different strands of government policy to
ensure low carbon companies have access to the infrastructure,
skilled workers, research and development and investment opportunities
they need". ConstructionSkills believes this is the way to
achieve both job creation and low carbon ambitions.
23 May 2009
60 AssetSkills, Cogent, ConstructionSkills, ECITB,
EU Skills, Lantra, SEMTA and SummitSkills. Back
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