Page 29 - Regional Employment & Skills Plan

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In Wales, manufacturing has a long tradition and will provide a key component to delivering a balanced economy.
In recent years the advanced materials and manufacturing sector has become considerably focused on adding value to products and services. Manufacturers are not just competing on cost but provide value by delivering products and services through innovation and processes.
The manufacturing base in Wales has capability in the following sub-sectors:
• aerospace and defence,
• automotive technologies,
• high value manufacturing,
• foundation industries.
Advanced materials is an important part of the sector. It covers the composition, structure and properties of materials and their specific application at the forefront of technological innovation. In the future; high value products will focus on taking advantage of new materials such as composites, nanotechnology, optoelectronics, printable electronics and silicon electronics.60
The advanced materials and manufacturing sector is an industry of importance for the region both in terms of economic output and employment numbers. Sector employment at a Wales level sits at 12.2% of the total workforce in Wales compared to the UK average of 8.4%61. The manufacturing sector within the region employs slightly less than the UK average at 8.3%, however, within the Swansea Bay City Region area specifically, 10% of individuals are employed within the sector.
Skills challenges are an important risk for the manufacturing sector as it can prevent both the normal continuation of business as well as expansion. ‘There is an increasing risk that these growth plans will be restricted because of problems in accessing employees with the required skills. Three quarters of employers surveyed say that finding employees with the right skills is one of their key business concerns, and almost half say it is their main concern.’62. This is of particular relevance to smaller manufacturers who may not have the adequate funding or facilities to complete training ‘Large companies are more likely to have a training budget (90%) than small companies (41%), but anecdotal evidence suggests that a wide range of ad hoc training is offered by firms of all sizes.’
The manufacturing sector, along with many others, has a requirement for replacement demand therefore there is a need to ensure that there is a sufficient pipeline of skilled individuals to support the sector. Jobs created by replacement demand will be those created due to the departure of workers which consequently have to be filled by new workers. This replacement demand could be as a result of but are not limited to permanent departures from the labour force through retirement or occupational mobility.63
60 http://gov.wales/topics/businessandeconomy/sector/advanced-materials-and-manufacturing-sector/?lang=en
61 https://statswales.wales.gov.uk/Catalogue/Business-Economy-and-Labour-Market/People-andWork/Employment/Jobs/ Employees-Only/Business-Register-and-Employment-Survey-SIC2007/employeejobsinwales-by-industry-year
62 Skills for Growth – EFF 2014
63 https://core.ac.uk/download/files/153/6818497.pdf
Regional Employment & Skills Plan South West & Mid Wales Aspirational Economy