02825_CI2014 REPORT_MT

Matchtech 2014 Confidence Index | Engineering TrendsA study of the current perceptions and ambitions of the UK’s engineering professionals

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http://community.matchtech.com/confidence-index-2014/

Matchtech 2014 Confidence Index

Contents

Foreword: Keith Lewis ..................................................................................Introduction .................................................................................................Findings and analysis ..................................................................................Summary ......................................................................................................Roundtable discussion, concluding themes and closing remarks ................Confidence Index, the survey .......................................................................About Matchtech ..........................................................................................Contact us ....................................................................................................

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“The findings from the survey paint a picture of surging confidence in the industry, on the back of major investment in infrastructure projects and Government calls for a rebalancing of the economy towards engineering.”


Welcome to the Matchtech 2014 Confidence Index - our annual survey of the perceptions, attitudes, and ambitions of the UK’s engineering professionals.

This year’s survey is the third annual Confidence Index undertaken by Matchtech and it is also the most comprehensive.

We received responses from more than 3,500 engineers across the UK, providing their insight into the state of the economy, their own career prospects, levels of confidence in industry and what concerns them most about their sector’s future. We also asked them what actions they want to see from a new Government in 2015, to drive growth and jobs.

The engineers surveyed were from a broad range of industry sectors, including aerospace, automotive, energy, infrastructure and maritime. The findings from the survey paint a picture of surging confidence in the industry, on the back of major investment in infrastructure projects and Government calls for a rebalancing of the economy towards engineering.

Looking ahead, engineers expect 2015 to bring growing order books and employment, with three-fifths (60%) of those surveyed saying they are confident their employer

will grow its revenues and income in the coming year. Additionally, more than half (56%) of engineers told us they are confident the UK will continue to be a leader within global engineering.

This is all good news for the industry as it looks to consolidate the recovery it has made from the global economic slowdown. Indeed, the 2014 Confidence Index has been conducted against a background of major change and investment in UK economy. For example, The National Infrastructure Plan has seen the Government pledge £375 billion to fund major capital projects, including Crossrail (currently Europe’s largest civil engineering project). Equally we are seeing significant investment in the next wave of power generation infrastructure, including renewable energy, with more to come.

In industry, advanced manufacturing is also showing strong growth, with the UK’s automotive sector among the most productive in the world and investment being made by domestic manufacturers and overseas firms in rail manufacturing, industrial machinery and equipment, and aerospace technology. All these growth industries are united by their need for engineers and engineering skills.

The Government has also pledged to offer more support for UK manufacturing in a bid to create what George

Osborne described as a ‘March of the Makers’, reviving u

Keith Lewis | Managing Director, Matchtech

Foreword


“We hope this report gives a more complete picture of the aspirations and attitudes of the UK’s vital engineering talent as they look forward to the coming year...”

However, while jobs figures are a ‘litmus test’ for economic success, they can tell a one-dimensional story, and do not detail people’s perceptions, their expectations, concerns and ambitions for the future; that is why we developed the Matchtech Confidence Index.

We hope this report gives a more complete picture of the aspirations and attitudes of the UK’s vital engineering talent as they look forward to the coming year and continue to play a critical role in the UK’s growth and economic recovery.

This report allows industry stakeholders to hear the collective voice of the UK’s engineers, and provides a timely opportunity for the wider industry to address the issues that will shape its future.

We invite you read this report and join the debate live on our Twitter feed @Matchtech and use the hashtag #CIndex2014 For more information please visit our community website:http://community.matchtech.com

Foreword continued

industry to power the recovery.

This investment and on-going growth in the UK engineering industry means the majority of engineers expect their employers to see revenues and income grow next year, with 43% expecting their organisation will hire more people and 45% expecting to see an increase in work with overseas clients.

However, investing in infrastructure projects and in UK manufacturing naturally means investing in engineers, and skilled candidates are finding their services in high demand.

While this is good for engineers it also reveals an issue that the wider engineering industry needs to address; that of the skills shortage. An overwhelming 95% of engineers believe there is a skills shortage in the UK, demonstrating the scale of the concern.

While there is a lot of noise about the skills gap, engagement with the current and emerging engineering community is essential to ensure the workforce is retained and continues to grow.

As the UK’s number one engineering recruitment specialist, Matchtech sees the evidence of this surging confidence, coupled with the skills gap, on a daily basis. Britain’s engineering sector is performing strongly and employment is high.

Keith LewisManaging DirectorMatchtech


Introduction

2 Source: EngineeringUK, a not for profit organisation which works in partnership with the engineering community to promote the vital role of engineers and engineering to society Government Industrial Strategy, 2013 3 Source: Government Industrial Strategy, 2013

Matchtech is the UK’s number one engineering recruitment specialist. and engage with over 200,000 engineers every year. We work with over 850 clients in the private and public sectors, and have established partnerships and affiliations with leading trade associations and institutions representing industry, education and Government. We are able to provide recruitment information and insight into into the engineering industry.

Our database of engineers, combined with 30 years of recruitment knowledge within the UK’s engineering industry, gives Matchtech a unique insight into the resourcing trends affecting the industry and the impact these have on the attitudes and aspirations of the engineers who work within it.

The latest figures from EngineeringUK2 indicate an industry turnover of £1.06 trillion; engineering makes a significant contribution to the UK economy and forms an important part of the Government’s industrial strategy for economic growth3. Future economic growth rests on ensuring this vital sector receives the support it needs to flourish and grow;

capturing and responding to ‘the voice of the engineer’ is a fundamental part of that.

To help create a collective voice for UK engineers, Matchtech launched the Confidence Index in 2012 as an annual survey to gauge their viewpoints and report these back to employers, educators, industry bodies and Government.

In 2014 the Matchtech Confidence Index attracted exceptional engagement from the engineering community, with over 3,500 engineers taking part. The survey represents a range of industry sectors highlighted by the Government as growth areas for engineering. These are sectors vital to the future success of the UK economy, including aerospace, automotive, energy, infrastructure and maritime. This year’s survey reached out to engineers on Matchtech’s database and we extended the invitation to our professional industry networks to capture unique market intelligence from across the whole of the UK, ranging from entry-level to senior management experience; from age 20 to past retirement.

The survey sought opinions from engineers regardless of whether they were actively seeking their next career move or firmly established within their current job role. All shared their experiences of past and current roles, future opportunities for industry and the trends they see across their sector.

To help create a collective voice for UK engineers, Matchtech launched the Confidence Index in 2012...


What is striking is that while engineers may be divided by the tasks they undertake and the organisations they work for, they are united by a common viewpoint on the future of their industry and the challenges that it faces.

Future economic growth rests on ensuring this vital sector gets the support it needs to flourish and grow; capturing ‘the voice of the engineer’ is a fundamental part of that

EngineeringUK has estimated that engineering accounts for 24% of turnover of all UK businesses

Last year, the 2013 Confidence Index painted a broadly negative picture of an industry which saw significant skills shortages; a workforce where more than half were considering moving abroad (58%) and felt the state of the economy was still negatively impacting their industry (54%). The 2013 survey also revealed that more than a third (37%) believed the UK would not be a world leader in engineering in the future, and that engineers were deeply worried about the lack of skilled talent coming into the career pipeline.

Today, the 2014 Confidence Index shows that while these concerns remain, there is a resurgence in confidence and a belief that UK engineering has a successful future. The views of engineers also reflect a backdrop of improved

economic performance and metrics, with the Office for National Statistics (ONS) figures for August 2014 showing output from manufacturing firms up 3.9% year-on-year, with a separate ONS report, ‘The Changing Shape of UK Manufacturing’, stating that 72% of total UK R&D spending (equating to £12.2 billion) goes on manufacturing. EngineeringUK has estimated that engineering accounts for 24% of turnover of all UK businesses and, that in the period 2010 to 2020, engineering firms are likely to have 2.74 million job openings. This is a dynamic industry that is set to grow.

The UK has a strong heritage in engineering and UK engineers continue to be responsible for many of the game-changing technologies, buildings and processes that underpin industrial, social and global economic progress.

The 2014 Confidence Index report suggests that today’s engineers think the UK industry has a strong future. However, several themes are identified as possible action points for the industry to ensure the UK retains its position as one of the dominant global engineering players.

The 2014 survey reveals growing confidence in the industry’s recovery

Findings and analysis


The Matchtech 2014 Confidence Index offers a detailed insight into the views of engineers, providing a unique source of market intelligence.

The UK engineering industry employs 5.4 million people, but we don’t know how engineers feel about the future of their industry, where they see the opportunities and threats and what they think the Government should do to help create an environment for engineers and for engineering to succeed. The Matchtech Confidence Index has collated the responses of more than 3,500 engineers to deliver their insights

The questions we asked broadly fall into six categories:

• Confidence in the engineering industry

• Celebrating engineering excellence

• Supporting a pipeline of talent

• Improving the skills base

• Promoting diversity

• The 2015 general election

Confidence in the engineering industryThe 2014 survey reveals growing confidence in the industry’s recovery and prospects among its engineers. Of course the engineering industry was not immune from the 2008 financial crisis. For example, the Markit/CIPS Manufacturing Purchasing Managers’ Index (PMI), which measures the performance of the manufacturing sector, reached a record low of 34.40 in November 2008. There was also a sharp cut back of 7.1% per year in Local Authority spending following the Spending Review in 2010. The downturn of course impacted on jobs in engineering. For example, the Institution of Civil Engineers reported that the average basic salary for civil engineers dropped for the first time in seven years in October 2009, and job losses occurred across manufacturing, technology and defence too.

However, confidence is returning and the recovery is reflected in the views of the engineers who make up the

industry. More than three–fifths (61%) of engineers are confident or very confident that their employer will grow its revenues and income in the coming 12 months.

4 Source: EngineeringUK 5 Source: The Markit/CIPS Manufacturing Purchasing Managers’ Index (PMI), which measures the performance of the manufacturing sector, is derived from a survey of 600 industrial companies 6 Source: Spending Review 2010 7 Source: Institution of Civil Engineers salary survey October 2009 8 Source: Summary of job losses in 2008 http://www.telegraph.co.uk/finance/financialcrisis/3542572/Financial-crisis-UK-job-losses.html. * indicates multiple choice question

Levels of confidence in revenue growth in 2015

Very confident 18% Confident 43%

Unsure 24%Not that confident 11%

Not at all confident 4%

In addition, more than two-fifths (43%) of engineers believe economic conditions are powering confidence across the industry, almost double the proportion of engineers (22%) who last year felt the economy was having a positive impact on the engineering industry. This confidence in revenue growth is also reflected in engineers’ views on the UK’s place in the global economy.


Looking beyond the engineering industry to wider economic and public perceptions of UK engineering, almost half (46%) of those surveyed said they believe that high profile infrastructure projects and investment are changing perceptions of the industry for the better. Furthermore, two fifths (40%) of the engineers questioned believe the engineering sector has a better reputation and is held in higher esteem in the UK today than it was 12 months ago.

Interestingly the survey revealed that just 17% of the respondents were professionally registered engineers and only 8% considered gaining these qualifications.

Celebrating Engineering Excellence: Attracting and retaining UK engineering talent

More than half (56%) are confident the UK will maintain its position as a global engineering leader, despite growing competition from other countries. Regardless of the threat posed by the increase in domestic engineering expertise and organisations in high-growth markets such as China and India, 45% of engineers say they expect their employer will increase the proportion of work they do with overseas customers in 2015 compared to this year.

If this is reflected across the entire industry it suggests that more could be done to encourage the take up of these professional qualifications. Overall, the Confidence Index 2014 shows an industry that is increasingly confident about its own recovery and place in the UK and world economy.

The global market Given the increasingly global nature of the engineering industry, we also asked engineers about their attitudes and ambitions regarding working overseas. The study found that more than half of engineers questioned (57%) say they would like to move abroad at some point in their careers, which shows consistency with the 2013 Matchtech Confidence Index findings in which 58% of

Most popular reasons for engineers to move abroad for work*

those polled said they were considering a move overseas.

Lifestyle change39%

21%

13% Opportunity to work on more interesting projects

Better pay and conditions

Retaining talent in the engineering industry is not just about pay packets; more than a third of those looking to move abroad are looking for a lifestyle change (38%), with 21% looking for better pay and conditions and 13% looking to work on more interesting projects. Europe (29%) followed by North America (22%) are currently the most popular destinations for those looking to work abroad. In addition, almost a quarter (24%) of engineers have taken a career break with 19% taking time out to go travelling, 11% for childcare and 12% to take a sabbatical.


Career progression Engineers are confident that their employers will continue to see revenue growth and economic progress in 2014 and believe the UK is well positioned to capitalise on improved economic conditions. This confidence is reflected in their expectations for their own career progression. Massive private and public sector investment in large infrastructure projects (such as Crossrail, HS2 and energy and highways upgrades) and resurgent corporate engineering activity, all supported by the Government’s growth strategy, is now feeding through to engineers’ remuneration. More than half of the industry (58%) received pay increases in the past 12 months, compared to wage stagnation in much of the rest of the economy. ONS figures issued in September highlighted that average wage growth across the economy was just 0.7 per cent. In comparison, those engineers who received pay increases saw an average 3% rise over the past 12 months. However, many of the engineers gaining increases have done so as a result of taking on more responsibility, with more than half of the pay rises received by the engineers surveyed (56%) following promotions, a move to a new role, or a performance-related salary increase. When asked what pay rise they expect to receive in the coming 12 months, engineers expected to receive around 3%, compared to the 1.25% wage increase that Bank of

5%*

*since 2013 results

THE AVERAGE INCREASE BEING 3%

Bank of England forecasts of 1.25%


of engineers expect theiremployer to recruit morestaff in the coming year

43%+

Confidence in career progression

Very confident 38% Confident 25%

Unsure 8%

Not that confident 8%

Not at all confident 18%

Don’t know 3%

England Governor, Mark Carney, has predicted for workers across the UK in 2015. So, despite the well-publicised skills shortage that is affecting the industry, wage inflation seems are under control. Engineers are also confident that they will see their own careers develop in the coming 12 months. More than three fifths of those surveyed (63%) said they are confident or very confident about their prospects for career progression in 2015.

Supporting a pipeline of talent: The ageing workforce vs. securing the next generation of engineers As engineering organisations capitalise on growth and opportunities across industry, engineers themselves expect to see a direct impact on jobs with more engineering roles created over the coming year.

This positive sentiment correlates with the national picture, where there is an increasingly buoyant jobs market across the economy. ONS employment figures from October 2014 show that UK unemployment has fallen by 154,000, with 1.97m unemployed in the UK – the largest fall in unemployment since records began.

Many commentators have noted that the key difference between the latest economic downturn and previous recessions is that unemployment has remained relatively low, with real incomes dropping instead.

Of those surveyed for the Matchtech Confidence Index 2014, twice as many (43%) engineers said they expected their employer to recruit more staff than not (20%) in the coming 12 months.

At the time of the survey, renewable energy, oil and gas, rail, power generation and nuclear new build were the the


sectors that engineers expect to show the greatest growth in revenues and jobs over the coming year. Perhaps this is not surprising considering the £38bn spend Network Rail has planned over the next five years, Government support for foreign investment in nuclear and its electricity market reforms, plus the well-reported need for the UK to develop a new generation of power infrastructure, mixing nuclear, renewables and gas-fired power plants.

The ageing workforce was cited as the biggest single challenge facing the UK’s engineering industry

We believe skills transfer and engineers’ willingness to work in other sectors of the industry could be a critical component in addressing the skills shortage

When asked about the challenges they see facing the engineering industry in the immediate and longer-term future, engineers in the 2014 Confidence Index identified the same issues as they did in 2013.

The ageing workforce was cited as the biggest single challenge facing the UK’s engineering industry, followed by a lack of students studying STEM (science, technology, engineering and maths) subjects.

This polarised pressure of an ageing professional population nearing retirement, coupled with a lack of trainee and graduate engineers joining the industry is part of a wider and well documented skills shortage. Of the engineers who

responded to the Confidence Index survey, almost 95% said they believe there is a skills shortage in the UK engineering industry.

The skills shortage is opening up new opportunities for engineers as employers compete to attract and retain skilled talent, and that includes recruiting engineers from other sectors in the industry. We believe skills transfer and engineers’ willingness to work in other sectors of the industry could be a critical component in addressing the skills shortage.

Improving the skills base: The potential of up-skilling and transferrable skills for engineering sectors

Developing a more flexible engineering workforce is a huge opportunity for the UK economy and the engineering industry, and would give the country one of the most adaptable and useful engineering talent bases available globally.

Engineers are open to the idea of transferring skills to different sectors of engineering, with more than half (59%) of UK engineers surveyed saying they would be willing to switch sectors.

Most popular reasons for engineers considering transferring sectors*

Higher Salary

Opportunity to work on more interesting projects

Change of work environment

Better work/life balance

31%

30%

26%

22%

* indicates multiple choice question


In our survey, about 10% of the respondents were female; a little more than the industry average

Encouraging and inspiring more talented people, of all genders, to take up a career in engineering is critical if the UK is to retain it’s crown

Engineers are open to transferring skills to different sectors

Promoting diversity: The presence, or lack of, women in engineering Getting more women into engineering is also a widely discussed topic as another antidote to the skills shortage, and to create a more diverse workforce. While strong progress has been made, much still needs to be done to encourage more women to become engineers. Figures from the Royal Academy of Engineering Labour Force Survey found that just 6% of the UK engineering workforce is female, and the Women in Engineering Group highlights that only around half of all female STEM graduates go on to pursue careers in the sector. In our survey, about 10% of the respondents were female; a little more than the industry average.

Over 300 women were surveyed, of which 5% believe that encouraging women to pursue a career in engineering is the most important factor in addressing the skills shortage. However, just 1% of the total engineering community surveyed saw it as a key solution.

In terms of addressing the deficit of female engineers via quotas on female staff, 2% of all engineers surveyed believe a quota on the minimum number of female engineers employed ought to be enforced. However, there is wider support among the female engineering community where 12% believe a minimum female quota should be imposed.

Nevertheless, the majority of women surveyed (39%) believe other policy initiatives, such as greater investment in STEM (science, technology, engineering, and mathematics) apprenticeship schemes, are more important in supporting the future growth of the engineering industry.

Encouraging and inspiring more talented people, of all genders, to take up a career in engineering is critical if the UK is to retain its crown as one of the world’s leading centres of industrial and engineering excellence. Unless the current skills shortage is addressed, quotas or objectives will not be effective in achieving a more balanced workforce.

9 Source: WES: Royal Academy of Engineering analysis of the Labour Force Survey, 2004-10, quoted in Diversity Data, RAEng, 20 http://www.wes.org.uk/statistics. * indicates multiple choice question

Oil & Gas

Renewable Energy

Aerospace

Power Generation

Automotive

Rail

54%

47%

47%

41%

34%

30%

Of those who said they were interested in transferring to a different sector of the industry, oil and gas was chosen as the most popular sector to work in, followed by renewable energy, aerospace, power generation, automotive and rail.


The ‘super commuter’ engineer

More anecdotally, the growing demand for engineering skills and talent is also shown by the distances that UK engineers are commuting in order to get to work.

Around a fifth (18%) of those surveyed commute more than 50 miles a day, with 6% commuting more than 100 miles a day. This compares to an average UK commute of 8.3 miles a day, according to figures from the ONS.

While not a definitive measure of the growing skills shortage, the rise of the engineering ‘super commuter’ shows that employers are looking to recruit talent from far afield and engineers are willing to travel for the right job and opportunity.

18%

The 2015 general election: Party manifesto commitments to engineering Given the back-drop of economic, industry and employment market change that has informed the Matchtech Confidence Index 2014, the survey also polled engineers and asked what actions they would like to see from politicians to address some of the challenges and facilitate some of the opportunities that face the industry.

As we look ahead to the 2015 General Election, we asked UK engineers what particular manifesto commitments they would like to see from UK political parties as a route to driving growth and recruitment in the industry and maintaining the UK’s advanced engineering and manufacturing-led recovery.

Boosting engineering training and apprenticeships was the single most important policy commitment that engineers wanted to see in 2015 manifestos, with 41% citing it.

More than a quarter (29%) want reduced university

fees or greater financial support for those studying STEM subjects. It is therefore interesting to

note that of the engineers surveyed, industry apprenticeships are held in higher regard

than higher education qualifications.

A further one-in-four (26%) want increased infrastructure

investment as a foundation for future economic growth, while 26% of engineers called for a clear energy infrastructure strategy for the UK and 21% want greater tax breaks and subsidies for organisations investing in engineering and industrial R&D.

Investment in STEM apprenticeships

Reduced university fees for STEM students

Clearer energy infrastructure strategy

Increased infrastructure investment

Greater tax breaks and subsidies

41%

29%

26%

25%

21%

* indicates multiple choice question

Summary


Following the most comprehensive Confidence Index that Matchtech has undertaken, engineers have reported a year of change in 2014 and highlighted there will be an increased number of opportunities in 2015. This report summarises the views of more than 3,500 UK engineers as they look back over a 12-month period which has seen the economic recovery gather pace, unemployment continue to fall and living costs continue to rise.

Engineering remains one of the UK’s core industries, and the huge investment currently being made in transport and energy infrastructure, coupled with a revival of the construction and manufacturing industries, means the skills of engineers will continue to be in high demand. Conversely,

while this will boost the UK economy, it will also add further pressure to the skills shortage. In 2014 we have seen a ‘broad brush’ approach to dealing with the issue of skills shortages, with engineering firms increasingly looking to hire staff from other sectors, and a renewed focus on apprenticeships and vocational training. Employers are also looking to international candidates when home grown talent is not available. The age profile of the UK engineering sector is highlighted in this report as the greatest challenge facing industry. As the workforce ages and retires, the need to supply a pipeline of talent, to encourage more STEM graduates, to promote apprenticeships and vocational training, and signpost routes into engineering careers is vital in meeting demand.

The need to encourage more STEM graduates to look afresh at careers in UK engineering, coupled with enabling more engineers to transfer their skills to different sectors, will be key to maintaining the growth and recovery we are seeing across the industry


The report also highlights a significant opportunity for UK engineering; the willingness of the workforce to transfer their skills to different sectors in the industry

The Confidence Index also highlights a willingness of the workforce to transfer skills to different sectors of the industry and move geographically. Today’s engineers are more flexible and aware of overseas opportunities and motivated by more than simple financial gain. This should indicate to employers the steps they need to take in order to attract and retain talent. Engineers want fresh challenges and stimulating jobs, but they also want to have a better quality of life and to feel their careers are progressing positively.

With the UK economy at stake, engineers expect the Government elected in 2015 to continue to recognise the importance of the engineering industry by supporting efforts to rebalance the economy, and promoting training and STEM education. They want to see a collective industry and political movement to build solid foundations for the future success of engineering. Ultimately, the Matchtech 2014 Confidence Index depicts

a positive picture of an engineering community that looks increasingly confident in its pivotal role in the UK and global economy. It also shows that engineers themselves are more confident in their own career progression and value over the coming year.

UK engineering is in good shape and is well set to maintain its growth...

While engineers are focused on playing their role in the on-going recovery of their industry, they are not willing to be taken for granted. This is an industry which is increasingly aware of its commercial, political and personal power. The Matchtech Confidence Index provides the ‘voice of the engineer’ and the perceptions they hold. It is now down to the stakeholders who shape industry to listen and respond.


Roundtable discussion, concluding themes & closing remarksMatchtech shared the findings of the 2014 Confidence Index with 17 key opinion leaders representing professional institutions, trade associations and corporate organisations across primary sectors of the engineering industry, at a roundtable debate on 25th November 2014 in London. Delegates of the Matchtech Confidence Index 2014 roundtable were:

Name Job title Company

Dr Rhys Morgan (Chair) Director of Engineering and Education Royal Academy of Engineering

Anil Iyer Chief Operating Officer Association for Consultancy and Engineering (ACE)

Blane Judd Chief Executive EngTechNow

Chantelle Ludski Regional HR and Change Management Director UK Hyder Consulting

David Gibby President and Chair Chartered Institution of Highways and Transportation (CIHT)

David Loosely Chief Executive OfficerThe Institute for Marine Engineering Science and Technology (IMarEST)

Dawn Bonfield President Elect Women’s Engineering Society (WES)

John Cullion Engineering Manager Dril-Quip

John Halton Director, Business and Industry EngineeringUK

Keith Lewis Managing Director Matchtech

Mark Edwards Director of Engineering; Aerospace, Automotive and Maritime Matchtech

Michelle Armour Human Resource and Recruitment Manager Babcock

Philippa Oldham Head of Transport and Manufacturing The Institution of Mechanical Engineers (IMechE)

Prof. Sa’ad Medhat Chairman NEF: The Innovation Institute

Richard Davies Principal Outside Parties Engineer, Infrastructure Protection London Underground, Transport for London

Simon Hill Chief Financial Officer Houlder Ltd

Stuart Higgins Infrastructure Development Manager UK Power Networks


The views of engineers captured in the study clearly reflected the experiences of our industry delegates. Delegates shared their thoughts on how the perception of engineering could be enhanced, how the industry might improve a pipeline of talent, increase recruitment levels, and retain employees to ensure that engineering excels as a vital global economic force.

While the outlook for the industry was broadly very positive, it was recognised that skills shortages, at all levels, across all sectors could hinder progress and must be tackled. Delegates agreed that UK industry’s strategy for sourcing talent needs to gain momentum in order to match the investment being put into sovereign and international engineering projects. Many delegates believed that the responsibility of mitigating the engineering skills gap lay equally with Government, industry and the education sector.

Celebrating engineering excellence: Talent attraction and retention, and career progression The delegates were quick to acknowledge the remarkable engineering talent that resides within the UK and the responsibility that industry has to look after the people that deliver examples of the UK’s engineering excellence. It was agreed that industry stakeholders have a responsibility to celebrate engineering with a wider audience, to attract the right people and train them with the right skills and to also invest and demonstrate the value of the engineers it already has.

It was broadly agreed that engineers typically think of ‘career not company’, looking for the next project to develop their skill set, promote their career, help them work abroad or achieve a better work-life balance, and will alter their employment situation to help them achieve their primary motivations.

The debate explored how, for many organisations, taking on a newly qualified engineer is a long-term prospect, taking several years to give a return on investment. However, with engineering skills in such high demand, employers face a challenge to retain such employees.

The concluding themes from the roundtable were as follows:

• Confidence in the engineering industry

• Celebrating engineering excellence

• Supporting a pipeline of talent

• Improving the skills base

• Promoting diversity


Furthermore, ambitious entry-level engineers that are looking to move onto the next level can often be disappointed when senior positions are not available in their organisation for them to be promoted in to.

Suggestions were made that organisations may need to consider creating more opportunities to retain new talent and to highlight the two avenues of career progression; technical expertise and managerial ability. It was also suggested that industry should embrace the concept of ‘fluid engineering talent’, and accept more readily that ‘churn’ (employee turnover) ultimately improves individual performance and helps raise the ‘engineering standard’.

It was concluded that organisations should audit and consider their attraction and retention strategies with current and potential employees, with a review of continuous professional development, creation of more innovative training, opportunities to work on interesting projects,

... the industry needs to create an environment that encourages people to return to engineering (especially women) after career breaks

definition of a clear career path, creation of roles to retain employees, working abroad within industry sector, secondments, sabbaticals, flexible working and more attractive pension packages.

By expounding the best corporate values and business practice, and addressing individual motivation, it was believed by delegates that engineers would be more likely to return to the organisations who offered such opportunities, and bring with them more experience, seniority and business acumen.

There was also consensus that the industry needs to create an environment that encourages people to return to engineering after career breaks. The Daphne Jackson Trust is dedicated to this purpose, originally focussing on scientists and research, this organisation has now extended its reach to returning engineers and industry. Fine-tuning this theme to encourage the return of more female engineers is the newly launched WES ‘Returnship’. Delegates agreed more noise could be generated by industry around these initiatives, to increase awareness of the level and type of support available.

The disparity between SMEs and large corporates was also discussed. Brand-power was thought to not have as much sway when it comes to attracting engineering talent as it might have had in the past. Instead, engineers look for interesting and career enhancing projects, and these can often be found at smaller organisations. With this in mind, it is vital that smaller companies promote their projects to the community, to encourage the best talent to their doors.


Professional registration status was viewed as the best mechanism to protect the profession, regulate quality and competence...

Professionalisation of the industry A statistic offered by the Chair, Dr Rhys Morgan, RAE, was that of the 2.7 million self-declared engineers working in the UK, only 230,000 are registered with a Professional Engineering Institution (PEI). This statistic was considered striking when professional registration (CEng, IEng, EngTech) was regarded by the majority of delegates as very important to the industry, with these engineers being generally more marketable, particularly to international corporations.

Furthermore, it was highlighted that many employers retain talent by offering financial inducement for professional registration, encouraging continuing professional development.

By professionally registering on the Engineering Council through one of the UK’s 36 PEIs, engineers clearly denote their level of experience, with a set career-level framework that gives confidence to both employee and employer.

Many corporations already offer professional registration and membership of employees to a sector-relevant PEI as part of a remuneration package. The consensus of the roundtable was that industry should do more to promote the values of being a professionally registered engineer and showcase engineering as a professional industry to vastly improve current typical audience perception. Professionalism of the workforce was a key action point for industry, agreed across the roundtable. Professional registration status was viewed as the best mechanism to protect the profession, regulate quality and competence, and calibrate the career path of the engineer.

Supporting a pipeline of talent: The ageing workforce

The roundtable delegates agreed with the survey respondents that the ageing workforce is the single biggest challenge facing the UK’s engineering industry. Suggestions put forward on how to curtail the imminent loss of accomplished engineers included more flexible retirement terms, allowing those nearing, or of, retirement age to remain in work and share their essential knowledge and experience with mid-level engineers.


Securing the next generation of engineers

The long-term solution to providing the industry with an abundance of skilled professionals lies with bringing in the next generation of engineers.

Delegates agreed with the engineers surveyed that the lack of students studying STEM subjects was the second biggest challenge. Promoting engineering as ‘the career of choice’ to the younger generation in schools was also seen as a priority for 23% of survey respondents.

Delegates pointed out that there needs to be a clear structure for careers advice and that a critical barrier to increasing the number of young people studying STEM subjects is the negative views held by influencers, typically parents and teachers, who usually play a role in guiding children with career choices.

Encouraging pupils to study STEM subjects has already been recognised as something that needs to start at primary school age

Informing these influencers about engineering and how it can offer an aspirational career was noted as, ‘a vital piece of the jigsaw in nurturing talent for the future’. One such initiative to address this challenge came from IMechE, the ‘Teachers Industrial Placement Scheme’ (TIPS), designed to ‘influence the influencer’ by providing teachers with ‘engineering work placements’ so they can report back to students and parents about what employees do in today’s world of technology and engineering. In addition, delegates agreed that industry should jointly celebrate modern ‘engineering heroes’ to highlight skills required to realise projects that could engage and inspire young minds. Encouraging pupils to study STEM subjects has already been recognised as an action that needs to start at primary school age, and critically at 11-14 years when children are choosing subject options. Indeed EngineeringUK have made a huge impact on improving access to potential young engineers through initiatives such as The Big Bang Fair and the Tomorrow’s Engineer’s programme, both which specifically address the promotion of engineering. It was also suggested that a ‘second chance’ option needs to be offered to students to reconsider studying STEM subjects later in their education. University engineering education could also be adapted to include a more vocational element, to ensure that candidates are more ‘job-ready’ upon graduation; a ‘pain point’ recognised by industry.


The traditional academic structure produces entry-level engineers with no ‘soft skills’

Investment in skills: The rising influence of apprenticeships Introducing more apprenticeships was seen as very important to engineers in the survey, with 41% citing this as a top priority. Delegates agreed that the lack of apprenticeships in the last few decades is regrettable, and needs to be corrected.

Improving the skills base: Up-skilling and transferrable skills Up-skilling, retraining and the transfer of workers from other sectors (and the military) were seen as key initiatives to improving the skills base for the engineering industry. Promoting apprenticeships to older students (‘adult apprenticeships’), is a route to engineering that delegates agreed had not been properly explored and had potential in moderating the skills gap.

The current Government is going some way to address this, pledging its support to thousands of new engineering apprenticeships, with initiatives such as the Trailblazers Scheme and Advanced Apprenticeships. Competing political parties are pledging even further investment and higher numbers; delegates agreed corporates need to take advantage of this impetus and invest in more apprenticeships.

The traditional academic structure produces entry-level engineers with no ‘soft skills’ and leaves some businesses wanting. It was agreed that there is work to be done in

assuring the influencers, namely parents and teachers, that apprenticeships are a sound route into professional engineering.

Linking apprenticeship outcomes to professional registration was considered to be a positive political move to support professionalisation of the engineering sector. For example, more senior-level engineers are starting to acknowledge their career path entry-point through an apprenticeship. More senior figures that started their engineering careers through apprenticeships need to come forward and promote this training as a credible ‘route to career’. It was perceived by the roundtable that engineers undertaking an apprenticeship were in fact more committed to their career choice and more likely to stay with their employer long-term (whether this is through loyalty or personal situation is not clear).


The delegates agreed that broad-based engineering skills are highly transferrable and that this could translate up through industry sectors; engineers indicated a high level of interest in transferring cross–sectors.

In contrast to this viewpoint, it was suggested that currently most engineering skills are ‘pigeon holed’ into specific sectors and that it is now time for industry to re-define the business model for developing engineering skills. Key industry stakeholders should have the influence to invigorate and re-define the way skills are viewed by companies, making them more commercially transferrable. Setting out clear policies on education and co-developing programmes with industry would help align engineering training with the future needs of business. It was also agreed that supporting the transfer of employees from one sector to another is a vital part of making careers in the industry more dynamic and interesting for engineers, as well as benefitting businesses by plugging skills gaps as they arise.

... supporting the transfer of employees from one sector to another is a vital part of making careers in the industry more dynamic

Mobility between organisations to increase knowledge should be more readily embraced as it would develop the experience and therefore value of an engineer. Certain technical skills should have transferrable elements and certainly managerial skills should reach beyond a ‘silo’ of one sector specialism.

Promoting diversity: The presence, or lack of, women in engineering

Encouraging females to choose a career in engineering and return to it after a career break was deemed a crucial part of mitigating the impact of the skills gap. Whilst only 6-8% of male engineers were likely to move out of industry, it was reported that over half of female graduate engineers will move into other industries, which delegates agreed was not satisfactory and action should be taken to retain this skilled demographic.

At the top end of the career spectrum, delegates agreed there are several barriers to be addressed. Perceptions held by female engineers of work environment and employee benefits could be addressed by industry, steering female engineers away from a decision to leave the industry by addressing concerns before they become prohibitive. One insight from WES was to recognise that women are often not able to move geographically to where the jobs are, meaning that local rather than national-level recruitment


... supporting the transfer of employees from one sector to another is a vital part of making careers in the industry more dynamic

processes become more important. Improving child care and offering flexitime would also be key points to review.

Enabling working mothers to return to the workplace is an initiative taken up by the WES ‘Returnship’ scheme where female engineers take up a ‘work placement’ before assuming full responsibilities so that work conditions can be revised and employers can up-skill the prospective employee with the latest technologies, safety and business practices.

Closing remarks Overall, it was agreed by delegates that industry needs to take charge of providing solutions to the skills gap and have a more open-minded approach to the recruitment process. Many delegates had examples of first hand practical solutions to managing talent shortages that had scalability and were largely met with approval of the other attendees. The discussion also explored how members of industry need to consider themselves as advocates for engineering and promote the real benefits of being part of such a highly professional industry; engineering is a vocation, not just a career. Looking ahead, delegates said they want to see more optimistic news stories about UK engineering in the press; we can start with sharing the positive views of our 3,500 advocates in the 2014 confidence index. We invite you read this report and join the debate live on our Twitter feed @Matchtech and use the hashtag #CIndex2014 For more information please visit our community website: http://community.matchtech.com

Such initiatives would present a more cost and time- efficient option to training and could be further investigated by industry.

Furthermore, it was suggested by WES that they believe working mothers are more likely to stay put when returning to work, offering loyalty through personal circumstances. At the other end of the scale is getting young girls interested in engineering and STEM subjects. Schools and industry

already work hard at this, but it is crucial to get the message through to parents, as the influence of the home is so powerful in a child’s education and career decisions.


Confidence Index, the survey

The 2014 Matchtech Confidence Index is a survey of engineers registered on our extensive database of over 200,000 engineers and other members of the engineering community who contributed to the poll after an appeal via social media and other online networks. This year an unprecedented 3,503 engineers answered the questionnaire and shared their views on the state of the sector, their own career prospects and aspirations and their thoughts on the outlook for the industry in 2015. The survey was conducted on using an online Survey Monkey poll between 18th August and 5th October 2014.

About Matchtech

As the UK’s number one engineering recruitment specialist*, Matchtech engages with the best engineers in the market and connects them with the best employers. This puts us in the unique position of having visibility over the challenges both our clients and our candidates face when it comes to engineering recruitment. Our strategy is to focus our consultants’ efforts on a specific area of recruitment so they can be the expert intermediaries our clients and our candidates want to engage with. Our specialist divisions are Aerospace, Automotive, Energy, Infrastructure and Maritime, and each of these divisions is comprised of teams and individuals who are dedicated to recruiting for niche sub-sectors. We’ve been doing this for 30 years, as part of the AIM-listed Matchtech Group PLC (www.matchtechgroupplc.com), with a turnover in excess of £450m last financial year. We work with our Group’s other recruitment brands to provide our clients with complete recruitment solutions across the engineering, technology, professional staffing and skills & employability sectors. As well as the Confidence Index, Matchtech also conducts numerous other projects to engage with the challenges and successes of the engineering industry. More information can be found on our Matchtech Community website (http://community.matchtech.com).

* Recruitment International


Contact us

10 Source: Women’s Engineering Society 11 Source: Institute of Marine Engineering, Science & Technology

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Matchtech would like to thank participating organisations for promoting the 2014 Confidence Index survey to their communities:

If you’d like to discuss the findings of the 2014 Confidence Index further, join the debate live on our Twitter feed: @Matchtech using #CIndex2014 ...or via our dedicated community website: http://community.matchtech.com

Alternatively, contact us direct:

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Matchtech1450 Parkway, Solent Business Park, Whiteley, Fareham, Hampshire, UK, PO15 7AF

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