Skillset Regional Contact:

Ruth Palmer, Regional Manager (NE, Y&H)
Skillset
VTR North
The Old Brewery
High Court
Leeds
LS2 7ES

www.skillset.org

Learning and Skills Council Contact:  sally.gardner@lsc.gov.uk

Click here for the Skillset North East Fact Sheet

Overview of the Sector in the North East

Skillset is the SSC for the Audio Visual industries which includes:

• TV and radio broadcasting
• Independent production for TV and radio
• Film production and distribution
• Cinema exhibition
• Animation
• Commercials
• Corporate video production
• Facilities
• Interactive media and games
• Photography, photo processing and retailing
• Manufacture of photographic equipment and materials
• Picture libraries

An estimated 3,500 people are working in the region’s audiovisual industries (Skillset Census 2004).  In 2004 production activity in the North East contributed £8.5 million to the NE economy and created and safeguarded over 250 jobs. (The 2003 Annual Business Inquiry estimates a total workforce of just under 5,000 in the region, including all three of the sectors excluded from Skillset’s Census, but excluding all freelancers.)

The largest sectors are the three interactive media areas of web and internet (1,140 people), offline multimedia (560) and electronic games (470).

The sector is small in the NE but growth is forecasted at 19% between 2002-2014. (Regional Sector Overview 2005)

The audio visual industries are characterised by a small number of very large national and international companies and a very large number of small and medium-sized businesses, micro businesses, freelancers and sole traders, particularly in the creation, production and development of content. (Skillset 2005)

Freelance working is most prevalent in independent production, where 58% of the workforce is freelance but freelancers who are based in the region are often involved in work outside the region. [NB the Census counts only those freelancers working on the day of the survey rather than the full available labour pool.]

Many businesses operate across a range of media areas (e.g. Facilities operate across several sectors including television, interactive media, radio and animation). (Skillset submission)

The workforce is exceptionally young: Skillset’s 2003 Workforce Survey found that 62% were aged under 35 compared with 39% across the whole economy. (Skillset submission)

Around one fifth of the Audio Visual workforce in the North East is female.

Ethnic minorities make up around 1% of the NE Audio Visual workforce.  The ethnic minority population as a whole in the region is only 2.4%. (Regional Fact Sheet 2005)

1% of the North East workforce is thought to have a disability.

Terrestrial television broadcasters (BBC and Tyne Tees) are the largest individual audiovisual employers in the region. Tyne Tees’ regional output is wholly factual and a quarter of Tyne Tees’ non-news regional output is commissioned from independent producers across the region.  The BBC does not make any network programmes in the North East.

In 2000, Tyne Tees created Signpost, which is now the leading supplier of on-screen British Sign Language translation, supplying most digital and terrestrial broadcasters and providing services to other organisations outside the audio visual industries.

Independent Production includes a number of well-established companies, such as Amber Films, A19 and Film Nova and a number of award winners, such as Coastal Productions, Ipso Facto and Yipp Films. Few independent companies in the region have more than five core employees and many are lone traders with working patterns similar to freelancing.  Hit TV shows helped inject almost £8.5m to the NE economy last year (double the 2003 figure of £4m (Northern Film & Media 2005) Key productions filmed in the NE in 2004 included 55 Degrees North, Distant Shores, Steel River Blues, Lawless and Wire in the Blood.  Byker Grove, made by Zenith North, is filmed in Newcastle and has been a feature on BBC Children’s television for 17 years.

There are eight independent local radio stations in the region, including four owned by EMAP and two by Radio Investments.  The BBC has two local radio stations (Newcastle and Cleveland).  All provide news services, together with music and/or features.

Development of digital communication technologies provide increasing opportunities to exploit the global marketplace in the media industry. This is a knowledge based sector where competitive advantage is gained through the skills that employees posses.

This is a highly skilled, highly qualified industry.  Around 66% are graduates and 24% post graduate. Three fifths of the workforce are in high-level occupations: 19% as managers, 25% as professionals, 16% as associate professionals. (Dialogue 2004 and 2005)

Key issues facing the sector now and in the future

There is a wide range of data available on the Audio Visual industries from many sources.  This range makes it difficult to collate, aggregate and compare the data, especially as the data is often produced for a specific purpose, using a variety of definitions, classifications and methodologies.  During the next phase of the development of the regional skills strategy and action plan, more The full version of the SSA can be found at  http://www.skillset.org/strategy/pathfinder/.  The Skillset Action Plan will be done to integrate the regional data from various sources.

This is a high skill/high knowledge industry, which needs to further develop links with HE. (Dialogue 2005)

The high level of freelancers and short-term contracts mean that new and different models of learning are required especially if the sector is to work with the LSCs. (Dialogue 2005)  Freelances, Micro businesses and SMEs, which are characteristic of the sector, are a growth area and present a considerable challenge on how they can be supported. (Dialogue 2005)

The region’s film industry suffers from a lack of technical facilities such as editing suites, cutting rooms and studio space. (Skillset submission)

There are commercial cinema exhibitors across the region, however, these are mainly large chains operated by companies based outside the region.  There are only three subsidised exhibition venues or film societies, in Redcar, Hexham & Berwick.  The Tyneside Cinema is the only full-time regional film theatre and is the key hub for the industry in the region particularly in relation to audience outreach and education work, supporting exhibition of locally made film and supporting other exhibition venues particularly in rural areas.

A high percentage of regional Tyne Tees Television adverts are made within the region, with a substantial proportion being made by Dene Films in Newcastle.  These commissions help to sustain local post-production houses.

There is considered to be a lack of lighting and grips hire and, which means that warehouses must be rented where interiors are required by productions.

Most organisations involved in developing digital content in the region work either exclusively or almost exclusively within the North East, with very few physically operating or receiving commissions from outside the region.  In addition, many North East businesses in other sectors commission work outside the region rather than from North East interactive media suppliers, which can create shortages in the work available locally, meaning that freelancers have to travel to find most of their work.

Games businesses are subject to cyclical demand for resources, reflecting their project-driven nature.  One of the weaknesses identified is that the location of most of the publishers in the south of England puts northern games developers at a disadvantage, with businesses reliant on the maintenance of effective links.

Employment Issues in the North East

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

Recruitment difficulties and causes

The popularity of the sector should not be confused with an ability to attract the right candidates for the right employment opportunities, as the ‘glamour factor’ attracts too many unsuitable candidates seeing ‘front of camera’ jobs.

Within visual media, recruiting editing staff, crew, production staff, writers and project/programme managers were all cited as difficult. (Skillset Submission 2005)

NE AV Skills Panel member also highlighted a particular issue in relation to production skills in the region, which was partially attributed to the downscaling of large AV businesses.

Retention issues

Data from Skillset studies indicates that the NE lacks the critical mass of television/visual production work to retain and develop good, experienced staff in the region. (Skillset submission 2005)

Attracting people into the sector

Demand for jobs in the AV sector is high reflecting their general perception as ‘cool’ industries in which to work.  The competition for jobs means that employers can be relatively selective in their recruitment and is reflected in the relatively high proportion of workers in the industries qualified to degree level (NVQ Level 4) or above. (Skillset Submission 2005)

There is concern that young people get an accurate view of what working in this sector might mean. (Dialogue 2004 and 2005)

Skill requirements of new recruits

In addition to their creativity and high tech skills new entrants to the sector need awareness of and access to good business management skills. (Dialogue 2004 and 2005)

Workforce Development in the North East

Skills shortages/gaps in existing workforce and latent skills issues

Data from NESS suggests that at the time of the survey, 4% of AV establishments in the NE were experiencing HTF vacancies, but none were reported to be due to skills shortages, although other qualitative research has suggested that skills shortages are much more prevalent. (Skillset submission 2005)

Skills gaps by occupation in the NE (from NESS cited in Skillset submission 2005):

• Managers and senior officials (11%)
• Professionals (2%)
• Associate professionals (12%)
• Administrative staff (5%)
• Skilled trades (7%)
• Personal service staff (8%)
• Sales and customer service staff (8%)
• Machine operatives (0%)
• Elementary staff (0%)

Skillset research has revealed a number of cross-sector core competencies in which skills gaps exist.  These include professional, interpersonal skills, good literacy and communication skills and time management.  Over a quarter of respondents, all of which were small companies, reported a lack of business knowledge within their organisation. (Skillset Submission 2005).

Employers require staff with creative flair and contextual awareness of their role within the end-to-end process of producing programmes or products. Other Skillset research has shown that the need for multi-skilled staff in the areas of production and editing is contributing to a demise of expert skills, which remain a pressing requirement. (Skillset Submission 2005).

The NESS sample sizes do not allow conclusions to be drawn about the cause of skills gaps in the North East region. At a national level, Skillset’s figures show that the major areas for skills improvement amongst employees are communication skills (52% of employers with a skills gap), problem solving skills (51%) and customer handling skills (49%). (Skillset Submission 2005).

Future skills demand

The main occupations affected by skills gaps are managers and senior staff (one third of the total), associate professionals (18% of the total) and sales and customer service staff (15% of the total). (Skills submission 2005 based on NESS)  However, research undertaken by Codeworks on the digital media and technology Sectors, ‘Skills for Growth’ presents a very different picture, at least in those areas.  It found that 60% of companies had lost business because their staff lacked the right skills; 36% said the skills of their workforce did not meet current need, and 32% that they could not resolve skills gaps due to a lack of suitable candidates.

In the Skills for Growth Survey undertaken by Codeworks 2005, NE companies were asked to indicate what they thought their skills priorities would be over the next five years:

• High level technical skills, e.g. web services, cross platform integration, ASP, .NET, Java for mobile platforms
• Commercial skills, e.g. sales and marketing, project management, public relations, management and financial skills
• Niche needs
• Creative skills, e.g. typographic and other design skills
• Product specific skills, e.g. Microsoft, other new products, etc.
• Other technical skills, generic ICT skills
• Generic skills, e.g. employability, customer care and basic literacy

Respondents to NESS 2003 were asked for occupations employed within their establishment the level of specific skills required now and the level that they expected would be required in three years. In the Skillset area the three largest groups are corporate managers, Science and Technology professionals and Science and technology associate professionals.  The data shows that different skills sets are required in these jobs, in that:

• The skills required to the highest level for corporate managers are ‘softer’ skills: customer handling skills and communication skills. Following these are General IT user skills and management skills.
• Both Science and technology professionals and Science and technology associate professionals have a similar ranking of skills needed: IT professional skills and General IT user skills, Technical and practical skills and problem solving skills.  The level of skill required by Professionals is higher than Associate professionals (Sector Skills Reports, Spilsbury 2004)

Prioritisation of skills issues within the industries

The four sub sectors to be prioritised UK wide are:

• Television
• Film
• Interactive Media

Skill gaps and shortages in the industry exist because:

• Lack of opportunity in project-based sub sectors
• Lack of experience in freelancers/aspirants
• Staff recently recruited
• Poor staff motivations
• The pace of change in technology and practices

Skills gaps:

• Creativity
• Multiskills in Production and Editing
• Generic Skills: communication skills, project management, management and leadership, time management
• Business skills: growth, investment, marketing, business planning
• ICT skills: Web journalism, Web Editing and Web Design and IT

Skills Shortages:

• Editing Staff
• Production Staff and Crew
• Project/Programme managers
• Camera Assistants
• Carpenters
• Digital Projectionists
• Production Assistants
• Production Accountants

Researchers

In the Skills for Growth survey (Codeworks 2005) when a company indicated that it was unable to resolve past skills gaps, the most frequent reason they gave for this that there was a lack of suitable candidates which supports the premise that there is a shortage of skilled workers.

Based on the responses from the SIN questionnaires and NESS, skills development needs exist in both cross-discipline and role-specific areas. Standards of professionalism, business knowledge, interpersonal and communication skills, literacy, and spelling and grammar - whilst obviously not unique requirements of the audio visual industries - are clearly seen as deficient by employers in the sector.

In terms of role-specific skills within visual media, the SIN questionnaires suggest that development is required in the areas of editing, producing, writing and project/programme management, all of which have been the cause of recruitment difficulties in the region. 

NESS data revealed the main occupations suffering from skills gaps in the region to be managers and senior officials, associate professionals and sales and customer service staff. Whilst sample sizes do not enable us to highlight specific deficiencies within these occupations in the region, national data from the Skillset SSC area shows that the major areas for skills improvement amongst employees are communication skills, problem solving skills and customer handling skills. This reiterates the view that skills needs fall into both generic and role-specific categories.

A recent key development within the region in this respect has been the downsizing taking place within Tyne Tees. Those staff who were made redundant have invaluable skills which could be harnessed for the industry in the region. However, there is recognition that these skills need updating to support them in working in a different context, potentially as freelancers or in small businesses. If the opportunity for these people to develop these skills in the North East is not available, then it is likely that these highly skilled individuals will relocate elsewhere in the UK and be lost to the region’s workforce and economy. (Skills submission 2005)

Learning and Skills Infrastructure in the North East

Critical mass is an issue. (dialogue 2005)

Nationally there is an oversupply of training and education provision.  There is a need for employers to collaborate and invest more effectively. (Dialogue 2004)

School provision is patchy and learners need to be encouraged to see the links between technology and creativity.

Institutions don’t always have the most up to date hardware and software which means that recent graduates are not familiar with the newest equipment.

There is a gap between what FE and HE provide and industry needs – a degree is no longer a good signal of ability and potential. Generally FE and HE provision is inflexible to the specific needs of employers (especially the Computer Games industry).  Training is important to employers – learning is not training. (Dialogue 2004)

There is a need for more business skills training for SMEs, good quality training for directors and generic training, which is transferable. (Dialogue 2004)

Barriers to employers accessing the skills provision they need

In the 2004 dialogue the following were highlighted as barriers to accessing training:

• Lack of time
• Fees too high
• Lack of funding (including public funds to bid into)
• Lack of cover/difficult to take time off work
• Lack of suitable courses
• Lack of awareness of training
• Lack of critical mass in the region to make specialist training viable.

Skillset Submission 2005

Sample sizes from NESS do not allow us to accurately analyse barriers to training in the North East audiovisual industries. Nationally, the main barriers from an employer perspective are:

• lack of time for training (59% of those with skill gaps, 43% of those without);
• lack of funding for training (54% and 39% respectively);
• lack of cover for training (42% and 33% per cent respectively).

Issues surrounding training supply are mentioned less often, but significant numbers of employers do suggest that barriers were due to unavailability of courses, either generally or locally.

In order to make training cost effective for employers, it may be necessary to release multiple staff at the same time, which for small companies can be impracticable. Skillset or agencies such as Northern Film and Media has a key role to play in facilitating training by brokering partnerships between organisations.

Skillset’s survey of employer perceptions of training  indicated that a range of sources were used to find out about training.  The most frequently reported sources of training information were recommendations from colleagues in the business, the internet, Skillset and Business Links.  At the July meeting of the North East Audio Visual Skills Panel, concern was expressed that “the one stop shop for Information, Advice and Guidance (IAG) doesn’t seem to exist”.  Whilst employers are aware of the generic training available, what they find difficulty in establishing is whether it is of the right quality to meet their needs.

These issues relating to IAG were also highlighted in the Northern Cultural Skills Partnership’s (NCSP) Framework for Engagement with Training, in which it was reported the number of enquiries received by NCSP indicated a lack of information on the provision available, with confusion among employers about who to approach.  It is important to recognise that members of the North East Audio Visual Skills Panel have stated that they will contact Northern Film and Media for information, as it is regarded as a credible source.  The establishment of Skillset Careers (formerly skillsformedia) has also helped to address this difficulty to some extent.

The Pye Tait survey asked employers about the importance of different types of training provision.  The small numbers surveyed in the region mean that detailed analysis of this data is inappropriate.  However, what the survey illustrates is that employers in the region tend to see training across the whole spectrum (pre-entry training in FE, HE, post-graduate and the community, post-entry training for new entrants and CPD, specific technical training and training to acquire management, leadership and business skills) as important to them.  Smaller businesses participating in the survey regarded short courses of between half and two days’ duration as the best way for them to maintain up-to-date skills and knowledge.

Research by Pembridge on behalf of Northern Film and Media highlighted the importance of supporting the successful development of businesses in the industries.  Areas of need included planning and financial management.  It is significant that not-for-profit organisations also saw the need to undertake straightforward commercial and marketing planning.

Small firms participating the Pye Tait survey of employer perceptions were asked to comment on the factors preventing them from undertaking training more often. Time and cost again came out as significant barriers to training, but around one third of these participants indicated that they had no need for additional training.

From the perspective of the employee (looking at data for the national industry), the 2003 Skillset Workforce Survey identified that barriers to training are extremely common from the perspective of employees and freelancers, with around 90% of respondents having experienced difficulties when they had tried to obtain training or training materials. The key difficulties identified were:

• Fees being too high (39%)
• Difficulties in taking time off work (38%)
• Lack of suitable training (35%)
• Employers not willing to pay for training (29%)
• Difficulty in assessing the quality of courses (28%)

It is significant that freelancers are more likely to identify barriers to training than employees, in particular due to loss of earnings whilst participating in training.  This has significant implications when considering the most appropriate supply-side responses to meeting the training needs of the audio visual industries in the region, especially where responsibility for training lies with the individual.  Collaborative approaches to skills development are seen as essential if workers in the freelance and independent sectors are to maintain and update their skills.  A failure to support the development of the freelance sector could create structural weaknesses in the industry.

Best Practice

The Sector Skills Agreement

Skillset is one of four SSCs that have been selected as Pathfinders to develop SSAs. Skillset’s SSA is an agreement between the AV industries, Skillset, government and the organisations that the development of skills which will influence the funding available for skills development in this sector. (INTERIM SSA)

The North East Regional Skills Strategy was developed in partnership with Northern Film & Media, the Regional Screen Agency for the North East, and in consultation with industry, through the Regional Skills Panel, trade associations and public agencies. The full document can be found at  http://www.skillset.org/uk/northeast/strategy/  Skillset has a partnership agreement with Northern Film & Media[1]:

• Screen Academies
• TV Academies

Games Courses: Nationally Skillset will be kite marking about 10 of the current 100 plus that are in existence to ensure that there is a standard of excellence.  A course at Teesside will be accredited.

Skillset are working with the LSC and training providers to identify overlaps and gaps and ensure that training undertaken is relevant and where it needs to be vocational and where it doesn’t.  Skillset is leading the process of changing and rationalising the qualifications – built into the qualifications will be a more demanding criteria

Skillset are also making the links with Aspire, Connexions, Children’s Trust, etc .

Business Growth Opportunity Scheme

Freelance Training Fund: In film there are moves to make a mandatory levy although not all sub sectors are supportive of this.  One hundred of the best people in the industry have agreed to be put into a database to support others in the industry.

The University of Teesside has a fast growing reputation in the digital media and digital technology sector.  With Digital City they are hoping to convert academic excellence into business growth and creation by generating new high value media businesses from the Universities intellectual assets.  There are currently 20 companies in the system and capacity for 40 in the near future.

Any Other Employment and Skills Issues in the North East

Culture North East is the regional cultural consortium for the North East of England.  It is one of eight in the English regions charged by the Department for Culture, Media and Sport to promote, encourage, co-ordinate and develop cultural and creative interests in the region.

Culture North East works with a range of partners in the region to develop and gain a further understanding of the culture and creativity of the North East of England.  This informs and contributes to the development of strategy, policy and debate about cultural life in the region. 

Culture North East produced a revised Regional Cultural Strategy for the North East of England in 2004, updating the original strategy that was published in 2001.  The strategy sets out six strategic aims:

• To sustain, develop and celebrate the cultural distinctiveness of the North East
• To prioritise investment in the protection, development and promotion of the region’s natural and cultural assets
• To fully realise the potential of cultural and creative activity in contributing to the raising of educational standards, and sustaining world class education facilities and developing a culture of lifelong learning
• To improve opportunities for individuals and communities across the region to fully experience and participate in cultural activity
• To stimulate vigorous and sustainable economic growth of the region’s tourism, cultural and creative industries
• To develop effective qualitative and quantitative information on the cultural sector to facilitate planning, advocacy, leadership and evaluation

Northern Cultural Skills Partnership (NCSP) is a group of cultural and creative organisations and individuals that have come together to help those working in the cultural and creative industries to access appropriate professional development.  NCSP provides access to learning information and tools to analyse training needs and has published a framework for engagement with training for the cultural industries in the North East. 

PACT

Producers Alliance for Cinema and TV (PACT) is the UK trade association that represents and promotes the commercial interests of independent feature film, television, animation and interactive media companies.

Production Guild

Production Guild is the leading industry association representing the interests of over 600 individual members involved in the senior producing and production accounting grades of major film features and high-end television drama in the United Kingdom and abroad.

TIGA

TIGA is the trade association representing the business and commercial interests of independent games development studios. TIGA’s overall objective is to keep independent developers in the UK and Europe at the heart of the global Games industry, which means ensuring that the business environment in the games industry is favorable to independent development studios because there are a lot of them in the UK and Europe and because they underpin the industry.

UK Film Council

UK Film Council is the Government-backed strategic agency for film in the UK. Its main aim is to stimulate a competitive, successful and vibrant UK film industry and culture, and to promote the widest possible enjoyment and understanding of cinema throughout the nations and regions of the UK.

For more information about the industries that fall into the Skillset footprint see Economic Impact of the UK Screen Industries – a Report submitted to the UK Film Council and the National and Regional Screen and Development Agencies 13 May 2005.

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[1] Location spend figures have risen every year since Northern Film & Media was created in Oct 2002 when they stood at just £1.5m. A total of £8.47m was spent by film and television companies and some 86 productions shot here during 2004 compared to 71 in 2003. During 2004 the NE attracted seven TV films/mini series, 17 light entertainment programmes and 26 commercial/promotional productions. NFM notable successes include Emmy award winning the Boy whose skin Fell Off and School for Seduction.