Skills North East - The Regional Skills Partnership

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Improve Regional Contact:

David Hickman, Operational Manager - Northern England
Improve Ltd
Ground Floor
Providence House
2 Innovation Close
Heslington
York
YO10 5ZF
T:    0845 644 0448 / 07796 615431
F:    0845 644 0449
E:    david.hickman@improveltd.co.uk

www.improveltd.co.uk

Learning and Skills Council Contact: sue.thompson@lsc.gov.uk

Click here for the Improve North East Fact Sheet

Overview of the Sector in the North East

Improve represents employers operating in all sectors of the food and drink manufacturing and processing industry including sea fishing, craft bakery, meat and poultry, dairy and general food and drink (www.improveltd.co.uk).

Food and drink products and brands have a tremendous influence on our lifestyles and standard of living. Every household in the country consumes the sector’s products and food and drink remains the biggest spending category. In 2004 consumers expenditure on food and drink came to nearly £147.7bn, representing 21.0% of UK national consumer's expenditure (FDF/FFB).

Food and drink manufacturing is an important sector for the region. Within the Food and Drink manufacturing sector there are just over 200 companies comprising of more than 400 individual business units (LFS, 2004) and employing approximately 27,000 individuals. In fact, the NE accounts for 4% of the sector’s workforce in England (LFS 2004). The majority are employed in the ‘other’ food, i.e. bread, biscuits, pasta, convenience/ snack foods (49%) beverages (15.5%) fruit/vegetables (14.8%). (Regional Fact Sheet 2005)

Many companies have invested significantly in automation, using highly sophisticated computer control techniques with high productivity. At the other end of the scale, some small companies maintain a craft approach making a virtue out of labour intensive hand production.

The sector is fiercely competitive and is heavily influenced by the leverage of the supermarket multiples. (Regional Fact Sheet 2005)

The demands of consumers are changing. As social trends alter, new lifestyles are impacting upon the food and drink products, which end-users want to buy as ethnic foods, organic produce, wheat free goods, low fat products and healthy living goods. (Regional Fact Sheet 2005)

Tyne and Wear is the dominant sub region and is particularly strong in the manufacture of bread, pastries and cake (23% of firms), fruit and vegetables (12%) and the manufacturing of chocolate and confectionary products (10%). These 3 sub sectors account for 45% of sector employment in Tyne & Wear. (Regional Fact Sheet 2005).

Employment Issues in the North East

Current and forecast recruitment demand (either for growth or replacement)

15,761 people are employed in the sector with numbers forecasted to remain roughly the same between 2002 an 2014. (Regional Fact Sheet 2005)

The proportion of the region’s workforce employed in the sector is similar to the national sector average (1.4% and 1.5% respectively). (Regional Fact Sheet 2005)

The proportion of businesses in the region with 50 or more employees is amongst the highest at 79% of a total of 426 workplaces. (Regional Fact Sheet 2005)

Nationally 33% of the workforce is female (no regional data available). (Regional Fact Sheet 2005)

Many companies are run by people in the 50s and above age range. (Regional Fact Sheet 2005)

Nationally the proportion of the workforce with NVQ3+ or equivalent is 35% (Regional Fact Sheet 2005). 11% of the sector workforce in the NE has a qualification at Level 4 or higher. This compares with 17% for the sector as a whole in England and the UK. 82% of the sector’s workforce in the NE do not have a qualification higher than Level 2. This compares to 66% for the sector in England (LFS, 2004).

Recruitment difficulties and causes

Attracting people to the sector is a key issue.

Vacancies notified to employment service job centres in the region as a share of all vacancies are NE 1% (England 1%).

24% of the sector’s employers in the NE report vacancies. This compares to 35% of sector employers in England.

Only London (17%) has a lower proportion of employers reporting vacancies than the NE (NESS, 2004).

Attracting people into the sector

Skill demands/recruitment is increasingly difficult at all levels due to the poor image of the industry. Low pay and poor environments to work in, therefore attracting and retaining new recruits from low skilled up to management level is difficult. Employers are looking to asylum seekers and overseas nationals (OSNs) to fill the vacancies but there is insufficient provision for training (Regional Fact Sheet 2005). The number of OSNs working in the sector is increasing and cultural issues often arise due to a lack of understanding. These issues can result in lost man hours, damaged reputation and in serious cases, heavy fines.

Skill requirements of new recruits

The skills most likely to be required at higher levels are team working skills and technical and practical skills. (Regional Fact Sheet 2005 from NESS 2003)

The skills least required are management skills, general and professional IT user skills and foreign language skills. (Regional Fact Sheet from NESS 2003)

Employees amongst the elementary trades, plant or storage related occupations are much less likely to require any of the skills in their job. (Regional Fact Sheet from NESS 2003)

Emphasis on locally produced food through a government imitative pushing local procurement has resulted in the need for more skilled manual labour. (Regional Fact Sheet 2005)

Workforce Development in the North East

Skills shortages/gaps in existing workforce and latent skills issues

There are significant skill issues evident within the industry – the key areas are attraction, retention and upskilling. (Regional Fact Sheet 2005)

7% of sector employers in the NE report skills shortage vacancies. This compares to 9% of sector employers in England. (NESS, 2004)

Only the WMs (7%), the NW (7%) and London (3%) have the same proportion or less employers reporting skills shortage vacancies than the NE. (NESS, 2004)

There is a shortage of applicants for food technology and food science courses and many graduates leave the area to work elsewhere. The need is for more incorporation of food related topics into schools to encourage take up of foundation level food technology courses. (Regional Fact Sheet 2005)

Basic skills are in short supply and as a basic requirement into the industry, this is an immediate barrier to entry. Employers are realising that these basic skills need to be provided in house as new recruits do not often have the required skills – this is pushing demand for flexible course to be delivered in house. (Regional Fact Sheet 2005)

A high level of firms in England (74%) have provided funding for staff training over the previous 12 months. (Regional Fact Sheet 2005 from NESS 2003)

Future skills demand

In line with many other areas of manufacturing, replacement demand is of importance as older workers reach retirement age.

Learning and Skills Infrastructure in the North East

Provision of training is limited and does not appear to reflect the needs of businesses. (Regional Fact Sheet 2005)

There are plenty of basic skills providers, but just two NVQ sector specific suppliers. Gateshead is the only college that offers food and drink manufacturing. (Regional Fact Sheet 2005)

The Seafood Training Centre offers a VQ for fish filleting. Compliance is a key issue and certification is becoming important for employers following foot and mouth. (Regional Fact Sheet 2005)

The demand is for basic courses that offer sub sector specialism as increasingly inspectors wish to see more than just the basic entry level skills. There is not enough provision for these courses. (Regional Fact Sheet 2005)

A lack of suitable courses in the area of was stated to be a barrier for only 13% of companies in this sector compared to19% nationally. (Regional Fact Sheet 2005 from NESS 2003)

Similarly, a lack of suitable courses generally was considered a barrier for only 8% of companies in the NE compared to 13% in England as a whole. (Regional Fact Sheet 2005 from NESS 2003)

Barriers to employers accessing the skills provision they need

39% of companies regionally and 42% of companies nationally stated that lack of time for training is their biggest barrier to undertaking training. Related to this point was lack of cover (for those undertaking training) stated to be a major barrier for 25% of companies regionally and 42% nationally. (Regional Fact Sheet 2005 from NESS 2003)

Best Practice

NE Food and Drink Network (NEFDN) was established in 2003 to address the lack of sector specific NVQ training provision in Tyne & Wear. NEFDN has developed a 4-week pre-entry programme, including a Food Skills Passport (the Fast Port), and is currently piloting its delivery with JCP Durham and South Tyneside council funding. Awaiting contracts from JCP Tyne & Wear and the other Tyne & Wear councils.

NE food Technology Service is housed at Teesside University, but funded primarily through DEFRA, Food for Britain, ESF and ERDF the service provides free training to companies in areas of food hygiene, BRC accreditation and other quality related processes.

Seafood Training Centre, established in 2002, with partnership funding from LLSC Tyne & Wear, North Tyneside Council and Seafish NTO. It was established to address the skill gap in fish filleters in Tyne & Wear. The Training Centre has developed a VQ (L2) in Fish Filleting (NEOCN) accredited) and are currently working with Billingsgate Market to incorporate this into NVQ L2 in Fish Processing and a Modern Apprenticeship. The Training Centre also delivers Basic and Intermediate Food Hygiene for the Seafish Industry (CIEH). A mobile training unit is used for flexible training delivery and promoting the sector.

Several examples of Enablers and Best Practice were offered by the sector in the 2004 dialogue. These are outlined below:

NE Food Technology Centre (Consultancy and High level training funded through ERDF and ESF)
NE Food and Drink Network (NVQ 3/trainer training and Development of training providers)
JC+ pre-entry model (e.g. The Fastport route to employment in the food and drink sector for short term unemployed people in County Durham)
Lean Manufacturing
Sector Promotion
Seafood Training Centre
NE Training Consortium - Facilitating contracting with agencies
NE Food Manufacturing CoVE
Roll out of NEPA model
Tender for a National F&D ‘hub’

The Food & Drink sector are exploring a regional ‘Food Park’ approach which will support the route to market for smaller organisations in the sector by offering:

Affordable food grade units
Access to technical and business support
Access to cutting edge research and development

Joint working practices to improve productivity and efficiency.

Any Other Employment and Skills Issues in the North East

North Shields Fish Quay will get new food park for the processing industry while disused buildings will be re-opened as workshops and offices. Quotas introduced due to the decline of white fish in the North Sea have meant that fishermen have had to adapt – largely by increasing their catch of prawns, lobsters, shellfish, etc. The demand for quality shellfish means that the processing plant is a good opportunity.

Food and drinks firms in the NE are to benefit from a service giving access to world leading research carried out in the regions’ 5 universities through www.north-eastfoodanddrink.co.uk . An attempt to match company needs to research already being advanced or which can be commissioned by academics: