Engineering skills shortage threat

6:03am Thursday 22nd May 2008

A REMARKABLE boom in engineering, with soaring employment and productivity, is threatened by a lack of skilled workers, MPs were warned yesterday.

Companies that have battled against the strong pound and low-cost countries are struggling to find staff with the "right technical and practical skills", the Engineering Employers Federation (EEF) said.

The industry group said the average age of workers at two-thirds of firms was 41 to 50, because of a failure to train engineers dating from at least 15 years ago.

It called for more post-16 students with Science, Technology, Engineering and Maths (Stem) qualifications, pointing out that numbers were down on a decade ago.

The recruitment problems will ring alarm bells in the North-East, where the process industries sector employs 34,000 people and supports 280,000 jobs.

Worth £10bn a year to the region, it already accounts for almost a quarter of the regional economy, with more than 500 pharmaceutical, biotechnology, chemical and support companies.

However, the North-East Process Industry Cluster (Nepic) has plans to expand to £13.3bn by 2015, which involve creating 12,000 jobs.

Only last week, Dr Ashok Kumar, the Middlesbrough South and East Cleveland MP, warned ministers that a shortage of engineers threatened the target.

Now the Commons innovation, universities and skills committee has launched an inquiry into how the industry, universities, professional bodies, Government and trade unions can plug that skills gap.

At yesterday's evidence session, the EEF said the industry was in a "position of strength" and had grown at two per cent a year since 2004.

Furthermore, productivity had increased by almost 30 per cent over five years.

But, warning of skills problems facing the sector, the EEF said: "There are insufficient, suitably qualified young people entering the industry.

"The numbers of young people studying for Stem qualifications post-GCSE remain below levels recorded ten years ago.

"The UK's ageing workforce is likely to lead to greater skills shortages in future, unless more young people progress in science, maths, engineering and technology related subjects."

However, the EEF welcomed Government plans to increase apprenticeships and training centres and introduce diplomas in September.

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