Scottish Textiles Skills Survey

Transcription

1 Scottish Textiles Skills Survey January 2013

2 Scottish Textiles Skills Survey Contents Executive Summary Survey Report Introduction Industry Profile Workforce Demographics Recruitment Workforce Predictions 12 months and 3 years Staff Development Activity Modern Apprenticeships Skill Needs Skills Challenges Conclusions References Scottish Textiles Skills Survey January

3 SCOTTISH TEXTILES SKILLS SURVEY EXECUTIVE SUMMARY HIGHLIGHTS Respondents collectively employ more than 3000 employees 60% have recruited in the previous 12 months 63% predict the size of their workforce will increase over the next 3 years The most frequently cited reason for recruiting new staff was to fill new posts created as a result of business growth Access to funding is the biggest skills challenge facing the industry over the next 12 months Retaining the skills of retiring employees is the biggest skills challenge facing the industry over the next 3 years The Scottish Textiles industry has a rich and varied heritage which is recognised and valued around the world. The sector has faced significant challenges over a number of years, but the range and quality of products coupled with the flexibility, innovation and skills of the workforce have enabled the industry to continue to compete in the global marketplace. The recognition of investment in skills as one of the drivers of increased productivity has resulted in a number of initiatives being implemented to address issues within the sector e.g.: Skills in Textiles project funded by the Scottish Funding Council and delivered by the Scottish Textiles Academic Group (STAG) Approval of the Fashion & Textiles Heritage Award Modern Apprenticeship MA pilot projects with Johnstons of Elgin (weaving) and the Borders Knitwear Manufacturers Training Group (knitwear) Partnership between STAG, Cardonald College and the Scottish Textiles & Leather Association (STLA) to expand the MA programme into technical textiles and apparel Within this context STAG, in partnership with the STLA, has undertaken a comprehensive survey of employers across the fashion, textiles and leather industry with the aim of establishing an evidence base in relation to the profile and skill needs of the current and future workforce. Scottish Textiles Skills Survey January

4 The survey findings will inform the development of the emerging Skills Strategy and Development Plan for the textiles and leather industry in Scotland which will place the skill needs of industry at its very core. Summary of Key Findings The survey was accessible on-line for a 5 week period from 20 November to 21 December During this period, 71 individual companies responded from across all sectors and all geographical parts of mainland Scotland and the Islands. No individual respondents are identified in this report. 96% of respondents were SMEs (i.e. employ less than 250 employees) and just over half of respondents (51%) employ between 1 and 9 employees. Collectively, all respondents employ more than 3000 employees. 59% of the workforce are aged over 45 years 71% of the workforce are classified as operators 60% of companies have recruited in the last 12 months, and 33% currently have vacancies Lack of skills was the most frequently cited issue for those companies commenting on the quality of job applicants 41% of companies predict an increase in the overall size of their workforce during the next 12 months, compared with 63% in the next 3 years. Collectively, up to 275 new employees could be recruited, equivalent to approximately 9% of the workforce. The most frequent reason for recruiting new staff (at both 12 months and 3 years) was to fill new posts created by business growth, followed by replacing existing staff due to retirement. Only 18% of respondents currently employ Modern Apprentices (MAs), predominantly at operator level, but 50% would consider employing them in the next 12 months. Skill needs are predicted across a number of job functions including operators, technicians and within sales & marketing A significant level of need is also anticipated within management and leadership roles Access to funding and finding appropriately skilled recruits were identified as significant skills challenges over the next 12 months 3 years. However, reflecting the age profile of the workforce, retaining the skills of retiring workers was identified as the single biggest skills challenge facing the industry over the next 3 years The survey represents a sample of 3,139 people from a total workforce of 11,300. Based on this, the results have a margin of error of 1.5% (+/-) and are therefore considered to be representative of all of the Scottish Textile Industry s skills issues. It is intended that the survey be repeated on an annual or bi-annual basis to track changes in employer perceptions and behaviours in relation to skills development activity. Scottish Textiles Skills Survey January

5 SURVEY REPORT INTRODUCTION The Scottish Textiles Academic Group (STAG), in partnership with the Scottish Textiles and Leather Association (STLA), has completed a comprehensive survey of employers across the fashion, textiles and leather industry with the aim of gathering evidence in relation to the profile and skill needs of the current and future workforce. Specifically, the survey aimed to: Establish the industry profile in relation to sector, location and workforce demographics Predict future recruitment and skill needs Quantify current & future training activity Identify the key skills issues facing the industry Following discussions with key partners including Scottish Enterprise and Creative Skillset and a field test with industry representatives, a web-based survey was devised and agreed. The survey was promoted to the industry via a number of channels: STLA newsletter to its 100 member companies and website article STAG Ezine to its database of 300+ contacts and website article Scottish Enterprise communication to its database of 600+ employers These primary activities were then followed up by reminder mailshots and targeted s. The survey was available on-line between 20 November and 21 December The survey findings will inform the development of the emerging Skills Strategy and Development Plan for the textiles and leather industry in Scotland which will place the skill needs of industry at its very core. INDUSTRY PROFILE 71 companies responded to the survey. This represents more than 11% of the industry base (based on 631 businesses - Source: ABI 2009 figures [published Sep 2011]¹). All major industry sub-sectors responded to the survey covering apparel/clothing, weaving, knitting, leather goods, technical textiles, design, dyeing and finishing. Employers in a number of niche sub-sectors also took part including embroidery, kiltmaking, spinning, printing (digital and screen), accessories and rug manufacture. Apparel/clothing constituted the largest response group, accounting for 22% of responses. Although Leather Goods constituted the smallest response group, this is an increasingly significant sub-sector of the textiles industry in Scotland, accounting for more than 20% of the workforce employed by responding companies. Scottish Textiles Skills Survey January

6 Businesses from across the length and breadth of Scotland responded with the highest response rate (25%) from companies in the West of Scotland (including Glasgow, Renfrewshire, Dunbartonshire, Ayrshire and Lanarkshire) closely followed by the East of Scotland (including Fife, Edinburgh and Lothian) at 24%.. Collectively, the respondents employ 3139 employees. This represents 28% of the total number of people employed in the sector in Scotland (based on a total workforce of 11,300 - Source: ABI 2009 figures [published Sep 2011])¹ 96% of respondents are SMEs (i.e. they employ less than 250 employees) and 51% of respondents employ between 1-9 employees. Although the majority of businesses taking part are microbusinesses employing fewer than 10 employees, this figure is below that quoted in the Scottish Textiles Industry Survey² which reported a figure of 66% businesses employing less than 10 employees. This differentiation may be due, at least in part, to the reluctance of microbusinesses to complete a skills specific survey as they may perceive it as of less direct relevance. Figure 1 Company Distribution by Number of Employees 1 to 9 10 to to to to WORKFORCE DEMOGRAPHICS Age Profile In order to build up a picture of the current (and future) workforce, respondents were asked to provide the age profile of their workforce employees, representing, 34% of the total workforce, are aged between years. When added to the older age categories (55-59 and 60+ years), it is apparent that 1856 employees, 59% of the total workforce, are aged over 45 years. Scottish Textiles Skills Survey January

7 Figure 2 Number of Employees by Age years years years years years 60+ years When employee numbers are aggregated into age bands years, years and 45+ years, the results can be compared with Scottish data. This suggests that the textile industry has fewer young workers (11% compared with 13%) and significantly more older workers (59% compared with 42%) ³ Figure 3 Percentage of Workforce by Age 45+ years years Scotland All Sectors STAG/STLA Employer Survey years Job Roles Respondents were then asked to provide a profile of their workforce based on job role. The largest group of employees (2243 employees) were identified as operators, accounting for 71% of the workforce. Other significant groups were business support roles (including Finance, IT, HR, Administration) with 364 employees and 228 team leader/supervisors. This last figure indicates a ratio of less than 1:10 for team leader to operator. Scottish Textiles Skills Survey January

8 Figure 4 Number of Employees by Job Role RECRUITMENT Companies responses to questions regarding recruitment, both past and future, demonstrate an optimistic outlook for the industry. 60% of companies had recruited in the previous 12 months, although 67% had no current vacancies. This compares favourably with the findings of a recent UK Commission for Employment and Skills (UKCES) employer survey which reported that 48% of employers (50% in Scotland) had looked to recruit in the previous 12 months.⁴ Of those textiles companies who do have current vacancies (33%), 13% are within sales and marketing, 11% are at operator level and 10% at technician level. A relatively small, but none the less significant, number of respondents (17, representing 24% of those who answered the question) classified their vacancies as being hard to fill (defined as applicants have not been of sufficient quality and/or there have not been enough applicants ). This compares with a national figure of 35% reported in the Scottish Employer Skills Survey 2010⁵. Perhaps not surprisingly given the respective number of employees in each job role, there were more hard to fill vacancies at operator level, followed by technicians. When asked specifically about the quality of applicants, 34 employers (representing 49% of those who responded to this question) indicated that the quality of applicants had been an issue. Lack of skills was the most frequently cited answer, given by 85% of respondents. This was followed by poor attitude, motivation and/or personality (68%) and lack of experience (41%). Only 9% cited lack of qualifications as an issue. Consequently, when employers are recruiting, particularly into key occupational roles, they expect that they will need to invest in developing the skills of the new recruits. Scottish Textiles Skills Survey January

9 WORKFORCE PREDICTIONS 12 MONTHS and 3 YEARS Companies were asked to predict changes in their workforce, and give reasons for any predicted changes, over a 12 month and 3 year timeframe. 12 Months When asked if they expected the size of their workforce to change in the next 12 months, 43% predicted that it would remain unchanged, with 41% predicting an increase. A small number, 3%, predicted a decrease. Companies were then asked to estimate the number of new staff who could be recruited in the following 12 months. Nearly 200 permanent and 70 temporary/seasonal additional employees were identified. The most common reason given for recruiting new staff was to fill new posts created as a result of business growth (76%), followed by replacing existing staff due to retirement (31%). Not surprisingly, most recruitment will be at operator level (cited by 61% of respondents). However, significant levels of recruitment are also predicted in sales & marketing, design and at technician level. 3 Years Companies were then asked the same series of questions for a 3 year timeframe. 63% of companies predict to increase the size of their workforce over the next 3 years, compared with 41% in the next 12 months. 23% predict no change, compared with 43% in the next 12 months. When asked to estimate the number of new staff who could be recruited in the next 3 years, up to 275 posts were identified. The most frequently cited reason for recruiting new staff was to fill new posts created as a result of business growth (74%, compared with 76% for 12 months), followed by replacing existing staff due to retirement (33%, up from 31%). When we look at the job roles where recruitment is likely to occur, operator level is still the most frequently cited at 58%, a reduction from 61% at 12 months. Increased levels of recruitment are predicted in sales and marketing (up from 27% to 36%), but the most dramatic increases are predicted within warehouse and distribution (up from 10% to 21%) and in team leader/supervisor roles (up from 7% to 19%) Comparative figures for 12 months and 3 years are included in the figures below. Figure 5 highlights the comparative differences in the reasons given for predicted recruitment needs over the 12 month and 3 year timeframes. Scottish Textiles Skills Survey January

10 Figure 5 Reasons for Workforce Growth months 3 years To replace existing staff due to retirement To replace existing staff due to staff turnove New posts created due to restructuring New posts created due to business growth Other Figure 6 highlights the number of employers who said that they predicted recruitment needs within each of the job roles listed. It is not an absolute number of jobs. Figure 6 Job Growth by Job Function months 3 Years 0 Scottish Textiles Skills Survey January

11 STAFF DEVELOPMENT ACTIVITY 58% of respondents have provided staff training for their employees within the previous 12 months. As 60% had recruited new staff over the same timeframe, it is possible that there is a correlation between recruitment of new staff and the provision of staff training. 42% had delivered no staff training during the same period. These figures are below those reported by UKCES⁴ in their analysis of employers perspectives on people development. They reported that 73% had provided some form of development opportunity for at least some of their staff. However, there may be a differentiation due to the terminology of the question i.e. staff training vs. people development, the latter being a more generic, informal term. The Scottish Employer Skills Survey 2010⁵ reported that 61% of workplaces provide training. It is possible therefore that the textiles sector is offering less access to training opportunities for its workforce. The group of employees most likely to have received training were operators (54%), followed by executives/senior managers (33%), design (31%), technicians (28%), and team leaders/supervisors (23%). Figure 7 Staff Training by Job Function Other Sales/Marketing Business Support Warehouse/Distribution Quality Control Operator Technician R&D Design Team Leader/Supervisor Executive/Senior Manager When asked about how staff training is delivered, the majority of respondents (86%) use internal training methods. Specialist training providers (29%), industry bodies (27%) and private training providers (23%) were also used. However, only 18% of respondents have used college provision and 7% have used universities. This reflects the UKCES findings⁴ that employers are more likely to provide internal training rather seek external delivery, although their figure of 63% is significantly lower. They also Scottish Textiles Skills Survey January

12 reported that private training providers were most likely to be engaged when employers looked externally for training provision, with only 14% using FE Colleges and HEIs. Annual spend on training activity by employers varies greatly, ranging from 200 to 122,000. When asked if they expected spend on training to change in the next 12 months, 50% responded that it would not change. However, 36% stated that spend would increase in the next 12 months. MODERN APPRENTICESHIPS Respondents were then asked a series of questions relating to their current, and potential, participation in the Modern Apprenticeship programme. 18% of companies currently employ Modern Apprentices (MAs). The majority employ MAs at operator level (82% of responses) with the balance being at technician level (36%), management (18%) and business support (9%). This compares with the UKCES report⁴, which found that although 28% of employers offered Vocational Qualifications, only 15% offered Apprenticeships. When asked whether they would consider employing MAs in the next 12 months, an encouraging 50% of respondents stated that they would. These figures reflect a changing attitude in the industry to skills development in general, and vocational training and Modern Apprenticeships in particular. The figures also compare very favourably with the UKCES⁴ findings which highlight that 24% of those employers not currently offering Apprenticeships expect to do so in the future. This more positive trend in the Scottish textiles industry may be due, at least in part, to the considerable development work that STAG, STLA and others have undertaken during the last months e.g. the pilot MA project with the Scottish Borders Knitwear Manufacturers Group. As further evidence of this positive attitude, 35% of respondents asked for further information regarding MAs. SKILL NEEDS One of the key objectives of the survey was to identify future skill needs within the industry to inform the sector s emerging Skills Strategy and Skills Development Plan. Companies were therefore asked if they anticipate skill needs in specific business areas within a 12 month and/or 3 year timeframe. 12 Months The results for 12 months to some extent mirror projected recruitment patterns in that employers predict the highest level of skill needs amongst operators (40% of respondents) followed by sales and marketing (23%). Scottish Textiles Skills Survey January

13 Interestingly, employers anticipate significant skill needs at leadership and supervisory/team leader level (combined at 34%). There are a number of possible explanations for this: General recognition of the need to develop the skills of this key group of employees As business growth was cited most frequently as the reason for increased employee numbers, recognition that this will place increased demands on employees at supervisory/ management level Preference to promote from within, which will result in the need to provide skills development opportunities for current and/or future team leaders/managers 3 Years The results for 3 years demonstrate a slight reduction in skill needs amongst operators (37% compared with 40% for 12 months). This reflects the slight reduction in recruitment predictions within this job role at 3 years versus 12 months. As with the 12 month figures, there are significant skill needs anticipated at leadership/management levels. The survey highlights a dramatic increase in predicted recruitment within this group over the next 3 years and it would appear that employers are recognising the knock-on effect that this will have on their skill needs. Comparative figures for 12 months and 3 years are included in the figures below. Figure 8 Skill Needs by Job Function (12 months and 3 years) months 3 Years 0 A further question asked if employers would benefit from support to identify their training needs. 22 employers (some 36% of those who answered the question) stated that they would benefit from such support. Scottish Textiles Skills Survey January

14 SKILLS CHALLENGES To conclude the survey, employers were asked what they considered to be the biggest skills challenges facing their business over the next 12 months and 3 years. 12 Months The top 3 skills challenges facing the industry over the next 12 months were identified as: 1. Access to funding 2. Identifying appropriately skilled recruits 3. Identifying suitable new recruits 3= Time to implement training 3 Years The top skills challenges facing the industry over the next 3 years were identified as: 1. Retaining the skills of retiring workers 2. Access to funding 3. Identifying appropriately skilled recruits Figure 9 Skills Challenges facing the Industry (12 months and 3 years) Other Skills succession planning Convincing employees to take Time to implement training Access to funding for training Lack of specialist training provision Access to information about Identifying graduates with the Identifying appropriately skilled Identifying suitable new recruits Retaining the skills of retiring 3 Years 12 months Retaining the skills of retiring workers was eighth in the list of challenges for the next 12 months. The jump to number 1 within 3 years highlights that employers have recognised the significance of the age profile of the industry, and the potential impact it could have on their business, and the industry as a whole, if it is not addressed. Scottish Textiles Skills Survey January

15 CONCLUSIONS This is the first comprehensive skills survey of its kind in the fashion, textiles and leather sector in Scotland and the response from the industry has been very encouraging. The survey results have helped to create a picture of the industry s profile and provided valuable evidence of the skills issues facing employers. In particular, the survey highlights some key messages which provide a back-drop against which to take forward the development of a Skills Strategy and Action Plan. Business Growth There is a general sense of optimism within the industry with many employers predicting future recruitment needs as a direct result of business growth. Workforce Demographics The age profile of the workforce, coupled with future growth predictions, highlight the need to attract new recruits into the industry. Initiatives such as the Modern Apprenticeship provide a framework for work-based training and development to national industry standards. MAs provide a route into the industry for young people. The industry must attract young people if it is to develop the world class workforce referred to in A Strategy for the Textiles Industry in Scotland ⁶. However, a survey of year olds conducted by Skillfast UK in 2009⁷ found that fashion and textiles was ranked ninth from a choice of 10 industry sectors in terms of its attractiveness as a career choice. MAs, combined with other education, employability and training initiatives such as pre-apprenticeship programmes, the College Learning Programme and the new Employability Fund, go at least some way to raising the profile of the industry and establishing textiles as a career of choice. While the greatest need is likely to be in manufacturing textile operations, there is potential to expand the current level and scope of MA provision beyond production roles and into management, warehousing and business support functions. Funding Access to funding for training, however, is a concern for employers. MAs provide one source of funding but there is a need to provide the industry with a route to clear and concise information about the wide range of funding sources available. Industry/Education Collaboration Employers are demonstrating a positive attitude to MAs with 50% stating that they would consider employing MAs in the next 12 months. MAs therefore also provide an opportunity for industry and education providers to engage more positively. The delivery model piloted in the Scottish Borders provides an example of how the industry and education can work in partnership to develop a sustainable model of workplace skills development. Scottish Textiles Skills Survey January

16 Innovation One of the industry s shared goals as set out in A Strategy for the Textiles Industry in Scotland ⁶ - is to increase Scotland s position as a major player in high quality textiles design and innovation. A comparison of the British and Italian textiles industries in 2003⁸, suggested that the Italians were more innovative in all aspects of their business design, yarns, fabric, machinery, marketing. It suggested that Italian producers added value to their products not so much by machines but by what is in their heads through imaginative ideas, a deep understanding of materials and how garments are best constructed, and the skills of their employees Only 4% of the workforce (employed by the respondents to this survey) are employed in Design and R&D roles. However 35% of those employers who predict increasing their workforce over the next 3 years anticipate recruiting into these functions. This trend, coupled with action to increase collaboration between industry and academia, could help to create the environment for enhanced levels of knowledge exchange and innovation. Organisation Development More than a third of employers said that they would benefit from support to help identify their training needs. At an individual company level, such support would provide an opportunity to review skill needs in relation to wider business strategy. At a cluster level (either in relation to sub-sectors or geographical location), it would create economies of scale by addressing common needs. And at an industry level, it would have a direct impact on productivity, growth and competitiveness. Leadership and Management Development Finally, the need for Leadership and Management Development, from team leader/supervisor level upwards, has emerged strongly. There is an opportunity now to review the good practice that already exists within the industry, and in other sectors, and to explore programmes of training and development which will: attract potential leaders of the future into the industry, provide access to development opportunities for those already in the industry who have the potential to grow into supervisory/management roles, and provide training for those already in supervisory/management roles who have not yet had the opportunity to fully develop their skillset. Scottish Textiles Skills Survey January

17 REFERENCES ¹ ABI 2009 figures [published Sep 2011] Scottish Enterprise ² Scottish Textiles Industry Survey ibp Strategy and Research, 2012 ³ Labour Force Survey Q1-Q ⁴ UK Commission s Employer Perspectives Survey 2012, UK Commission for Employment & Skills ⁵ Scottish Employer Skills Survey 2010 Scottish Government ⁶ A Strategy for the Textiles Industry in Scotland Textiles Scotland ⁷ Generation F: Perceptions of the Fashion and Textiles Sector Among Young People Skillfast-UK 2009 ⁸ A Comparative Study of the British and Italian textiles and clothing industries. N. Owen & A.C. Jones DTI Economics Paper No. 2, April 2003 Scottish Textiles Skills Survey January