Critical skills shortage costs region major investment

10:22am Tuesday 5th February 2008

THE North-East has missed out on major inward investment projects because of concerns about skills shortages, an industry leader has warned.

Malcolm Potter, chief executive of the Tees Valley Engineering Partnership, said the key issue facing the region was skills and capabilities to deliver projects.

Speaking to The Northern Echo ahead of an engineering conference which will focus on skills shortages, he said: "I understand that there are contracts that could have come into this area but have gone elsewhere, because people need convincing about our ability to deliver them."

He said major projects, such as the £2bn crude oil processing plant on Teesside, which will create 2,500 jobs, and the rebuilding of Hartlepool Power Station, which will create 3,000 jobs, meant many more engineers and skilled workers were needed in the region.

He said if the area was to remain competitive against other regions, the shortage of skilled workers needed to be tackled.

He said: "We have got to start planning for that because there are huge people requirements there, although they are quite long-term projects."

He said an engineering diploma being piloted in Middlesbrough and Hartlepool would provide a good route into engineering.

The University of Teesside is also looking to provide flexible courses so people can gain qualifications while they work.

He said: "We have then got the existing workforce, which is old and grey, and an imported one.

"We have used workers from Eastern Europe a lot, but we are finding it is not an inexhaustible supply - in terms of Poland, we have probably peaked now.

"Lots of money will be poured into Eastern Europe so those projects will require their own people."

He said some smaller companies also needed to diversify so they could take advantage of the billions of pounds worth of investment which will pour into the region in the next ten years.

"Although the majority of companies currently have more work than they can shake a stick at, there are a number of smaller companies who are perhaps working below capacity because they are in a niche area which has faded away.

"If we can identify those companies and talk to them, they can start diversifying to meet the needs of the region so they can win more work."

The Tees Valley Engineering Partnership is supporting the Partners4Engineering conference, which is being held in the Wynyard Rooms, Wynyard, near Billingham, on March 12.

The conference will feature speakers from Amec and Sonhoe - the company behind the £2bn Teesside crude oil plant - and will focus on skills shortages, future market opportunities and support for smaller businesses.

Partners4Engineering 2008 is being organised by Washington marketing and event management company Allancia Limited, in conjunction with the North- East Process Industry Cluster (NEPIC).

The event will bring together leaders of more than 100 companies and organisations to investigate the issues and challenges surrounding the future growth of the region's engineering and process sectors.

Organisers are hoping many small engineering companies will attend.

Editor's Choice