Low Carbon Economy 2018 - 2020 - Liverpool City Region · 2020. 2. 9. · Liverpool City Region...

Skills for Growth Action Plan

Low Carbon Economy 2018 - 2020

Contents

2

4 Summary and Recommendations

4 Low Carbon Economy Skills for Growth

8 SectorBriefing

9 SectorDefinition

10 Sector Performance

12 Sector Skills

13 Brexit

14 SectorProfile

15 Low Carbon Economy Job Types

16 WorkforceComposition–AgeStructure

17 Workforce Composition – Occupational Structure

18 WorkforceChangingSkillNeeds

20 Supply of Skills

21 STEM Skills

22 A Levels

24 Apprenticeship Provision

26 HigherEducation

28 Careers Education

30 Current and Future Demand

32 AggregateDemand

33 SkillsShortages

35 EnergyProductionandUse–KeyChallenges

37 WindEnergy

38 Electric Vehicles

40 HousingEnergyEfficiency

42 Conclusions

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Foreword

Skills for Growth Action Plan for Low Carbon

TheLowCarbonSectoriscoretothedeliveryofinclusivegrowth.Itsstrategicinfrastructurecanofferlocal,competitiveandresilientenergyandcreatesignificantlocaleconomicbenefit,aswellasreducingenergydemandthroughefficiencies,andwastethroughthecirculareconomy.

Steve RotheramLiverpoolCityRegionMetroMayor

Cllr Ian Maher LiverpoolCityRegionPortfolioLead, Skills and Apprenticeships

MakingsurethatpeoplehavetheskillstogetajobandprogressinLowCarbonandthatthesectorhaspeoplewiththerightskillstheyneedforgrowtharekeyprioritiesfortheLiverpoolCityRegionCombinedAuthority.Improvingskillslevelshelps the productivity and economic output of ouremployers,aswellasensuringthattheycanbenefitfromthisgrowth.

ThisActionPlansetsoutanambitiousprogrammeof work to help people into the Low Carbon Sector, to ensure they realise their potential and to ensure that businesses can access the Low Carbon skills theyneednowandinthefuture.Thisenablesustoimprove productivity and secure fair and inclusive growth.FollowingthedevolutionoftheAdult

EducationBudgetfrom2019/2020LiverpoolCityRegionwillhavetheopportunitytocommissionnewqualificationsandskillsprovisionthatdirectlyaddress some of the entry level routes into employmentandskillsrequiredbythesector.

Theprioritiesidentifiedheresetthedirectionforskills providers and employers, and will require inputfrommanypartnerstodeliver.Wehavemadegreatstridesinrecentyears:butthereismoretobedonetodrivecollaborativeworkingacrossprovidersandemployersforthebenefitofusall.This Action Plan will not only help the Low Carbon sectorpowertheLiverpoolCityRegion,butwillalso empowerpeoplethroughskillsanddecentjobs.

Summary and Recommendations

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Low Carbon Economy Skills for GrowthThisreportinvitestrainingproviders,businessesandprofessionalinstitutionsinLiverpoolCityRegion to take stock of their approach to employment and skillsintheLowCarbonEconomy.

TheLiverpoolCityRegioneconomyisgrowing;thisgrowthisgoingsomewaytorectifyaperiodofrelativedeclineoverpastdecades.TheCityRegioncannowaspiretocatchupwithotherpartsofthecountrywhichitpresentlylagsintermsofproductivityandoutputpercapita.

Itiswidelyacknowledgedthatinordertocontinuetogrow,theCityRegionmustaddresssomestructuralchallengeswithinthecurrenteconomyandensurethatexistingemployeesandthenextgenerationenteringtheworkforcehavetheskillsandexpertisenecessarytofindsatisfyingandsecureworkinaninclusiveeconomy.

TheLowCarbonEconomyisrecognisedbyboththeLiverpoolCityRegionCombinedAuthorityEmployment and Skills Board and Local Enterprise Partnershipasakeygrowthsector.Thisisdueto the importance of the sector in the local economy today.Thisreportfindsthatthesectorhassignificant growthinboththenumberofemployeesandthe numberofenterprises.Agoodproportionofemployeesinthesectorareinhighvaluemanagerial andprofessionaloccupations.Thesectorencompassesadiverserangeofskilled/semi-skilledtrades,particularlywithinmanufacturing.

The Low Carbon Economy is not just about jobs whichrelyonabackgroundinscience,technology,engineeringandmathematics.Itisadynamicsectorthatispredicatedonachangeinthestatusquo that needs business leaders, entrepreneurs, marketersandinnovators.Italsorequiresanadministrativeandlogisticsbackbonecommontoallcapital-intensivesectors.

5Skills for Growth Action Plan for Low Carbon

In many respects the Low Carbon economy is at the forefront of wider changes in the labour market, driven by merging of traditional sector skill sets and increasing circulatory of economic activity in the drive towards energy efficiency.

LowCarbonEconomyisalsoidentifiedasakeysectorfortheCityRegionbecauseoftherolethatitisenvisagedtoplayinfuture.Climatechangeisanimperativeissueofouragethathasbroughttogetheralmostallthenationsoftheglobetosign the2015ParisAgreement.Thisaimstosetacourse to almost completely limit the carbon emissions associated with economic activity within the next threedecades.Thisisachallengethatcansometimes seematoddswithprogresstodate.However,theUKhasbeenattheforefrontofactionsincethe1990s.CleangrowthisidentifiedasoneofthepillarsoftheUKIndustrialStrategy.Itisforwardlookingandnotimprudentforskillsproviderstoanticipate and plan for a radical shake up of the energysystemthathasramificationsforbuiltenvironmentskillsdelivery.Initswidestdefinitionthe‘LowCarboneconomy’isthefinal-destination forthewholeofoureconomy.

Sectors outside of Low Carbon need to consider climate literacy in the further development of their curricula to support the transition towards a Low Carboneconomy.

TheCityRegionhasstrengthsinenergy,waterandresourcemanagement.Environmentaladvisorsareasmallbutfastexpandingdiscipline,includingthoseprovidingspecialistexpertiseinlegalandfinancialservices.Thesecoreactivitiescanbetaken togetherwithsub-setsofothersectorswhereactivitiesarestronglyalignedwithLowCarbonoutputs.Thereportquantifiestypesofworkwithinengineering,construction,manufacturingandlogisticsthathavebeenclassifiedbystandardindustrycodes(SIC)andforwhichdataisgatheredbytheofficeofnationalstatistics.

A City Region Low Carbon economy defined in this way employs around 37,000 people in 4,500 enterprises.

Thisreportislargelyconcernedwiththesebusinesses and their skills requirements, but it will be of interest to a wider audience who will understand for example thatwhatisrecommendedforaworkforceengaged intheretrofitandrefurbishmentofhomesintheLow Carbon economy has relevance for similar categoriesofskillsappliedtotheconstructionofnew homes,whichdoesnotfallinsidethestrictdefinition.

Thechangingnatureoftheutilitiessectorandtheconstructionindustrymakesithardertodefinethenatureoftheinnovationgapinengineeringandmanufacturing.ThereisnotaclearroutemaptoaLowCarboneconomyandtherearecompetingviewsonhowcleanenergywillbegenerated,distributedandmanagedinthefuture.

Thegrowthinoffshorewind,aCityRegionspecialism, hasexceededexpectations.OtherpartsoftheLow Carbon economy meanwhile have seen considerablegrowth,onlytothenretractasaconsequenceofchangesinlegislationandsubsidyregimes.Installersofrooftopsolarpanelshaveseen a sharp fall in deployment in the Liverpool CityRegionsince2016.

Someenvisagedgrowthindustrieshavescarcelydeveloped,despiteinitialoptimism.TheGreenDealsetexpectationsabouthomeenergyretrofitfor measures such as external wall insulation that havebeennotdeliveredinpractice.Thisisanexampleofapolicyledobjectiveforgovernmentwhichrequiresanewmarkettobemade.Analternative route to stimulate activity is awaited byanowscepticalconstructionindustry.

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Conversely,afewyearsagothemassadoptionof the electric car was viewed as a revolution that wouldtakeseveraldecadestoarrive.Governmenthasnowsignificantlyshortenedthetimehorizonbysignallingthatashifttoelectricvehiclesisakeypriority.ThishasbeenarticulatedintheDepartmentofTransport’s2018‘roadtozero’strategy.Substantialpublicgrantforresearchanddevelopment, and an international race to improve theperformanceofenergystoragesolutions,hasjumpstartedtheautomotiveindustrytobringforwardnewultra-lowemissionsmodels.AdvancedmanufacturingisanotherkeygrowthsectorfortheCityRegionwhichishosttomanybusinessesintheautomotivesupplychain.

Itisatimeofparticularuncertaintyforthelegislationthatunderpinnationalstandardsandregulation.Brexitislikelytohaveramificationsforenvironmentallegislation.AtthetimeofwritingitisfullyexpectedthatcurrentEUDirectiveswillberetainedinUKlawafterBrexit.However,oversightofthesemaypassfromthejurisdictionofcourtstoaregulatorybody,andthisbodymayhavereducedpowerstoensureenforcement.ThereareEUDirectivesthatwillnotbeenactedat the time of Brexit and these are not expected to beadoptedintoUKlaw.AnexampleistheEU’s‘circulareconomy’package.Thiswouldgiverisetoarenewedemphasisonresourcemanagement.However,althoughtheEUDirectivemaynotbecome UKpolicythesameobjectivesarelikelytoberecycledintonationalstandardsbyanotherroute.

A period of uncertainty does not mean there is no scopetoact.Thereportreviewsevidencethatwhat businesses in the Low Carbon economy are seekingfromnewjoinersarecoreSTEMandarangeofothersoftskillsthatcanbeflexiblyappliedtoarangeofspecialisms.

The application of new technologies in the sector is shifting employer demand, with greater emphasis placed on transferability of knowledge across job tasks and the application of digital skills in managing business processes.

Thereisaneedtoactwithsomeurgency.ThedemographictrendofemployeesintheLowCarbon Economy mirrors a broader trend in manufacturing,energy,constructionandtransportsectors.Theworkforceisageingwithasubstantialcohortnearingretirement.Thisisparticularlyacuteinthecaseofutilitiesinfrastructure.

IntermsofcurrenttrainingonofferintheCityRegion,thereappearstobeageneralgapinSTEMprovision.TherehasbeenalackofgrowthintakeupofthesesubjectsatALevel.Thereis also evidence that a substantial proportion of graduateswhodoleavehighereducationwithSTEMqualificationsdonotgoonintoworkinSTEMoccupations.

Whilstthesupplyofskillsmaypresentachallengefortheregion,theanalysisinthisreportsuggeststhattherewillbeastrongdemandintheshortandlongtermforeducatedprofessionalindividuals,skilled and semi-skilled trades people as well as peoplewithgeneralmanagerialandenterpriseskills.

ThispresentsanopportunityfortheCityRegionto train and retrain workers for a new era of well remuneratedandrewardingworkinsometraditional industries that will be revolutionised and reinvigoratedbythetechnologiesandtechniques,goodsandserviceswhicharebringingaboutaLowCarboneconomy.


Low Carbon Economy Skills for Growth BusinessesoperatingintheLowCarbonEconomyare not only an important pillar of the Liverpool City RegionEconomy,butareattheforefrontglobalshiftstowardscleanandefficientuseofenergy. TomaximisetheopportunitiesofgrowingnationalandinternationalmarketsforLowCarbongoodsandservices,theCityRegionmustaddressunderlyingweaknessesinthesupplyoflabour andskillsacrossthefourfollowingareas.

1 Increase the number of young people entering and progressing in the sector.

• PromoteLowCarbonasanexcitinganddynamiccareeroptionforyoungpeople–capitalisingonhighprofileinvestmentsintotheCityRegionincludingoffshorewind,tidalandbiomassenergyproduction.

• Significantlyincreasethetakeupofapprenticeship pathways by employers – ensuringthatprogressiontolevel4+andhighereducationareintegraltotheofferofemployment.

• ExpandengagementwiththeSTEMAmbassador scheme to provide school and collegepupilstoexperiencetheuseofcuttingedgetechnologieswithinthesectorandthediversityofLowCarboneconomyworkplaces.

2 Capitalise on changing trend towards Low Carbon energy efficiency.

• Incorporateenergyefficientskillsandtechniquesintoconstruction,engineeringandlogisticsvocationaltrainingprogrammes–toraise awareness and embed Low Carbon practicesacrosskeysectorskillareas.

• Respondtogrowthofupcycling/reuseofmaterials–communitybasedtrainingwithsmallenterprisesengagedinfurnitureandhouseholdgoodsrepair,maintenanceandreuse.

• EstablishaCityRegionchallengetoinnovativeanddevelopnewmarketsfordigitalgoodsandservicesthatsupportthegrowthoftheLowCarboneconomy.

3 Improve workforce skills.

• Increaseavailability(andlowerthecostforbusinesses)ofcertificatedupdatetrainingingrowingmarkets,suchasinstallationofdomestic and commercial electric vehicle chargingpoints.

• Expandinvestmentintrainingofexistingworkers in key areas such as customer care, datamanagementandautomationofsystems.

• Improvenetworkingandcommunicationbetween Low Carbon SMEs – such as a City Regiondigitalplatformtoenableimprovedsupplier links, recruitment and collaborative investmentintraining.

4 Raise awareness of Low Carbon economy drivers across the wider workforce.

• Develop approaches to improve carbon literacy andawarenessofenergyasafactorinbusinessproductivityamonglearners.

Sector Briefing

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TheUKGovernmenthasincludedcleangrowthasapillarofthenationalIndustrialStrategy,1 challengingbusinessestoinnovateandimprovetheircompetitivenesswithininternationalmarkets.Thepolicyemphasisoncleangrowthprovidesapositive response to the commitments made by theUKinthe2015ParisAgreementtomitigatetheeffectsofclimatechange,whilechampioningthenewideas,productsandprocessesbeingdeveloped by businesses and universities to capture moreofthegrowingglobalmarketforLowCarbongoodsandservices.

TheinternationalmarketforLowCarbongoodsandservicesisvast,withestimatessuggestingthattomeettheParisAgreementtargetsaround$13.5trillion of public and private investment is required justintheglobalenergysector,between2015and2030.2Significantmarketgrowthisexpectedinpowergenerationandthecreationofcleanenergytechnologies;inthetransportsectorasnationalgovernmentsregulateandincentivisetheuseofelectricandlowemissionvehicles;theconstructionindustrytoimprovetheenergyefficiencyofbuildings; andthroughprofessionalandfinancialservicestosupportchangingpracticeandenableinvestment.

TheUKiswellpositionedtoexploittheopportunities ofgrowinginternationalmarkets,withworldleading expertiseinnuclearandgreenenergyproduction,inadvancedmanufacturingandengineering,materials science and professional services such aslaw,financeanddataservices.FindingsfromthenationalONSLowCarbonandRenewableEnergyEconomySurvey3 show that in 2016 the sectorgeneratedsome£42.6billioninturnoverand employed an estimated 208,000 FTE employees in theUK.Thisrepresentsincreasesof5percent and3.3percentrespectivelycomparedto2015. Nationally,thereareanestimated84,500businesses inthesectorearningover£3.7billioninexports.

Thelargestsub-sectorsofactivity,withintheONSdefinitionofLowCarbonandRenewableEnergy,areenergyefficiencyproductsandlightingandcontrolsystems,whichtogetherconstitutearoundone third of sector turnover and 40 per cent of employment.Overtheyear2015to2016theONSsurveyindicatesgrowthinrenewableenergy,withoffshoreandonshorewindsectorsexpandingemployment and turnover, while solar activity decreased.Fallingsolarsectorturnoverandemploymentwaslargelywithintheconstructionindustry and is likely to relate to reduced subsidy formicro-generationactivity.

TheLiverpoolCityRegioniswellpositionedtocompete within national and international Low Carbon economy markets, with a critical mass of productionanddevelopmentactivity.TheoffshorewindenergysectorinLiverpoolBayandIrishSeahavethedistinctionofhavingtheworld’slargestturbines in Burbo Bank Extension and the Walney Extension, due for completion in 2019, will be the world’sbiggestoffshorewindfarm4.Overthelastfiveyears,£4.3billionofprivatesectorinvestmenthasbeenmadeinthisarea.KeyinternationalcompaniesincludingABB,Ørsted(formerlyDONGEnergy),IberdrolaandClarkeEnergyarelocatedintheCityRegionandareatthecentreofastrongsupplychainofbusinessesprovidingglobalreach.Improvingphysicalandresearchinfrastructure,deepeningthecapacityforinnovationandtheapplicationofnewtechnologiesandensuringthesupplyofskillsandlabourareimportantgoalsforthe sector in order to realise the full productive potentialoftheLowCarboneconomy.


Sector DefinitionThe diverse character of the Low Carbon economy makesfixingadefinitionofthesectorproblematic.While Low Carbon business activity centres on energyandenvironmentalmanagement,thesectorhassupplyandsaleslinkagesthatcrossintoarangeofindustrialandcommercialareasoftheeconomy.DuetothiscomplexityitisimportanttogivesomedefinitionalshapetothesizeandchangingcompositionoftheLowCarboneconomyintheCityRegioninordertoinformcurriculumdesignandskillsprovision.

Based on available national data5, the sector in LiverpoolCityRegionisdescribedhereashavingtwoprimaryparts,asillustratedinFigure1.Thesearefirst,acoresetofbusinessactivitiesfocusedonenergyandenvironmentalmanagement.

Secondasupportingsetofbusinessesinmanufacturing,constructionandprofessionaland technical services that supply or undertake activitycentraltodeliveringLowCarbongoodsandservices.Itisassumedthatactivityinthissecondgroupisalsoconnectedtoothersectorsoftheeconomy,beyondthecoreareasofLowCarbon.Whilesomewhatimprecise,usingthisdefinitionallowstheCityRegiontoaccesscomparablestatisticstoassessperformanceandtrackchangeovertimetoinformstrategicplanning.

BasedonthedefinitionsummarisedinFigure1,the Low Carbon economy had employment of 36,740 in2016.Thenationaldataalsoshowsthattherewere4,470enterprisesregisteredintheLiverpoolCityRegionin2017.AsummarybreakdownofemploymentandenterprisesisshowninFigure2.

Core Low Carbon Economy Activity Supporting Low Carbon Economy Activity• Energyproductionanddistribution. • Manufacturingofmetalstructures,wireproducts, generators,glassandglassfibres.• Wastecollection,treatmentandmaterialsrecovery. • Manufacturingofelectriclighting,instrumentation, batteriesandcoolingandventilationequipment.• Water,sewerageandenvironmentmanagement. • Installationandrepairofelectricalequipmentand industrialmachinery.• Environmentalconsultingactivity. • Constructionofutilityprojectsandremodellingand renovationofexistingbuildings. • Wholesaleofwoodandconstructionmaterials. • Engineering,financialandtechnicalservices andconsulting.

Business Activity Employment* Enterprises**Energyproductionanddistribution 1,095 75Environmental services 5,550 155Manufacturing 7,500 485Construction activity 12,920 2,210Technical and advisory services 9,675 1,545Total 36,740 4,470

Figure1Summary Definition of the Liverpool City Region Low Carbon Economy

Figure2Summary of Low Carbon Economy Employment and Enterprise in Liverpool City Region

Sources:*ONSBRES,LiverpoolCityRegion2016**ONSUKBusinessCountsbyindustryandemployment,LiverpoolCityRegion2017

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Sector PerformanceThe Low Carbon economy in the Liverpool City Regionhasexperiencedanetincreaseinemployment of7.75percent(2,645jobs)overtheperiod2010to 2016.AsshowninFigure3,distributionofemployment changehasbeenunevenacrossbusinessactivityareas,withnotablegrowthinenvironmentalservices, particularlywastecollection;electricityproduction;and in technical and advisory services - most significantlyinengineeringrelatedscientificand technicalconsultancy.Evidentdeclinesinmanufacturingactivityareconsistentwithwider patternsofchangingworkpracticesandfallingemploymentinthesector.Employmentinconstruction activity has remained relatively constant over theperiod,despitechangingnationalpolicythatincludestheclosureoftheGreenDealprogramme.

While there has been variable performance in respect to jobs, data shows that there has been an increase in the number of enterprises within theCityRegionLowCarboneconomyovertheperiod2010–2017,asshowninFigure4.Allbusinessactivityareashaveseengrowthinthenumberofenterprises.Overall,thenumberofenterprisesinthesectorhasgrownfrom3,350in2010to4,470in2017,anincreaseof33.4percentovertheperiod.Thehighestproportionalchange,albeitfromasmallbase,isseenintheenergyproduction and distribution, with the establishment of businesses involved in the production and trade ofelectricity.

Figure3Employment Change in Low Carbon Economy Activities, Liverpool City Region 2010 – 2016 Source:ONSBRES,2017

0 10 20 30 40-10% Change 2010-2016

Energyproductionanddistrubtion 15.3

Environmental services 35.4

Construction activity 0.5

Technical and advisory services 13.8

Manufacturing -2.3


Despitefallingemployment,overasimilarperiod,therehasbeengrowthinthenumberofmanufacturingenterprises,withincreasesintheinstallation of machinery and equipment, repair of fabricated metal products and repair of electrical equipment.Therehasalsobeenariseinthenumber of enterprises across all technical and advisoryactivities-thelargestbeingengineeringrelatedscientificandtechnicalconsultancyand

environmentalconsultingthathavemorethandoubled the number of enterprises present intheCityRegionovertheperiod.Growthofscientificandtechnicalbusinessactivityhasbeenprimarilyinmicro-businesses(employing0–9people)associatedwithoffshoresurveyingandcartographicandspatialinformationactivitiesandconsultingservicesforenvironmentprojects.

Figure4Enterprise Change in Low Carbon Economy Activities, Liverpool City Region 2010 – 2017Source:ONSUKBusinessCountsbyindustryandemployment,LiverpoolCityRegion2017

20 40 60 80 100 120 140 1600% Change 2010-2017

Energyproductionanddistrubtion

Environmental services

Manufacturing

Construction activity

Technical and advisory services

150

19.2

21.3

22.1

59.3

Overall, the number of enterprises in the sector

hasgrownfrom3,350in2010to 4,470 in 2017, an increase of

33.4% overtheperiod.

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Sector Skills The diversity of business activity in the Low Carbon economyismirroredbythewide-rangingjobsand theskillsrequiredbyemployersinthesector.While there are specialist skill sets in some areas of Low Carbon activity, a majority of skills are rooted inengineering,manufacturingandconstructionoccupations,asillustratedinFigure5.EmployersintheCityRegionhavecommented,duringconsultation,6 that they have a primary requirement forstrongunderlyingcraftandtechnicalskillsatlevel3thatcanbebuiltuponandrefinedintheworkplacetomeettaskspecificresponsibilities.

ThelackofspecificpathwaysintoLowCarboneconomy careers requires employers to compete within the labour market for the best skills and talent.Theneedtorefineskillstomeetbusinessrequirements also means that there is a need for employerstoinvestinskillstraining.Whilestandards and requirements vary across business activities, additional skills and competences are required across the Low Carbon economy in response to newmarketopportunities,changingregulationsandtheimpactofdigitalisationonbusinessactivity.

Inadditiontostrongcraftandtechnicalskills,employershighlighttheirneedfor‘softer’communicationandproblemsolvingforworkinginteamsandcustomerfacingroles.Businessesareseekingnotjustsufficientskillstomeetbasicoccupationalrequirement,butfavourflexibility,entrepreneurialflairandabilityamongstafftocontribute to company innovation and efforts to accesscompetitivemarkets.Accordingtoresearch7 thereisaneedformulti-skillingtocapturecross-sectoropportunities;morediagnosticandfaultfindingskills;greaterintegrationofinstallationanddesignskills;leadershipandprojectmanagementskills;andgreaterenvironmentalandlegalknowledge andhealthandsafetyawareness.ScottishPowerEnergyNetworksintheCityRegionhighlighttheimportanceofstrongcontractmanagementandmarketingskillsbecause:the“deliveryofprojectsiscriticaltoeverythingwedo,soweneednewrecruits who can deliver to timescale and cost just asimportantlyasunderstandingournetwork.”8

Figure5Sector Skill Connections – Low Carbon Economy

Environmental Renewable Energy Low Carbon

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Chemicals industry ✔ ✔ ✔

Energy ✔ ✔ ✔ ✔ ✔ ✔ ✔

Manufacturing production ✔ ✔ ✔ ✔

Construction ✔ ✔ ✔ ✔ ✔ ✔

Marine / Logistics ✔ ✔ ✔ ✔ ✔

Engineering ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

Finance and Professional ✔ ✔ ✔


BrexitBritainleavingtheEuropeanUnionislikelytohave both a direct impact on international trade andregulationoftheLowCarboneconomyandhaveindirectimpacts,throughchangesinrelationswithcustomersandsuppliers.Nationally,thefullimplicationsofexitingtheEUarestillbeingworkedout,butitisclearthattradeandregulatoryarrangementswillneedtoberevisedinordertopreserveorrecreateexistingrelationsthatmaintaintheleadinginternationalpositionoftheUKintheLowCarboneconomy.

Insomeareas,suchaswastemanagement,thereareexpectedtobesignificantissuesthatincludereduced access to key markets in Germany andtheNetherlands.ChangesininternationalarrangementsmayleadtoincreasedinvestmentinprocessingandwasterecyclingcapacityintheUK.TheseconditionsprovideanopportunityfortheCityRegiontobenefitfrominvestmentintechnologicalinnovationtorealisegrowthinservicesandemployment.

A recent series of reports by the House of CommonsSelectCommitteeonExitingtheEUhighlightsanumberofimportantissuesfortheNorthWestandtheCityRegion.9

• Electricity–whiletheUKislargelyself-sufficient inelectricitygeneration,some5percentofcapacity isimportedfromtheNetherlandsandFrance.UKinternationaltradinginelectricitytakesplacewithintheEU,asphysicalinfrastructureisneededtodistributeelectricity,regulatedbytheInternationalEnergyMarket.AsmuchofUKpolicyandthetechnicalframeworksthatregulatethesectorhavebeenagreedatEUlevel,newarrangementswillneedtobeput intoplacetogovernthemarketpost-Brexit.

• Nuclear–theNorthWestistheleadingUKregionforcivilnuclearsectoremployment,withastrongclusteroftechnologycompaniesoperatinginternationally.AspartofBrexit,membershipoftheEuropeanAtomicEnergyCommunity(EURATOM)willneedtoberenegotiatedalongsidethecomplexnetworksofstandards,regulationsandinternationalagreementsthatgoverntradeinnuclearmaterial,technology,expertiseandthemovementofskilledworkers.

• Environmental services–includingwaterandsolidwaste,faceanumberofchallengesresultingfromBrexit.Thewatersectorisprice-regulatedandlargelyservesjusttheUK,whereasthe waste sector is characterised by its diverse and competitive national and international market.Keyissuesrelatebothtotheeffectsofreplacementregulationonthesectorandalso,for waste in particular, the impact of Brexit for EuropeancommercialoperationsintheUKandaccesstoglobalmarketsinareassuchasthe‘circulareconomy’ofmaterialrecyclingandbiomass.Additionally,itislikelytherewillbeanimpactfromthelossofEUfundingforresearchandenvironmentalprogrammesandforthenetworksofEuropeanpartnershipssupportingdevelopmentandknowledgetransfer.

TheLiverpoolCityRegionemployersurvey,10 undertaken in 2017 shows that 63 per cent of respondents in the sector had not yet noticed anyimpactfromBrexitontheirbusinessactivity.However, 81 per cent expect Brexit to have an impactinthefuture.Thislevelofanticipationissignificantlyhigherthantheaverageof55percent,forallrespondentstothesurvey.Uncertaintyaboutexternal conditions also has implications for labour andskills.While93percentofsurveyrespondentssaid that Brexit had not had any impact on their recruitmentactivitytodate,nearlyhalf(48percent) saidtheyexpectanimpactinthefuture.Thesurvey responsessuggestthatthekeyissuewillbelabouravailability, rather than a shift in the skills needed, with78percentofrespondentsstatingthattheirskillneedswillremainthesameafterBrexit.

Sector Profile

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The Low Carbon economy sector has a diverse mix of occupations and requirement for workforce skillsandexperience.Asdescribedinsectiontwo,sectorskillsarerootedinEnergy,ManufacturingandConstructionsectorsandtoalargeextentreflectthecompositionandchallengesoftheseindustries.Thereisalsoasmallcomponentwithin theProfessionalServicessector,engagedinspecialistlegalandfinancialservicesforLowCarbon.

FeedbackfromCityRegionemployersindicatesacontinuingneedforhighqualitycraftandtechnicalskills at Level 3 to meet current and anticipated medium-termdemand.Skilledmechanicalengineers, gasfittersandqualifiedelectricianswillincreasingly berequiredtoreplaceretiringworkersandtofillnewpostsbeingcreated.Employerscommentedtheyarecompetingforthebestrecruitsabletoofferbothstrongtechnicalcompetencesandhavethecommunicationskillsneededforthegrowingnumberofcustomerfocusedroles.

Asanexpandingandmaturingareaofbusinessactivity,thereareemergingspecialistrolesinthesector that cut across traditional industrial and occupationalboundariestoreflecttheapplicationofnewtechnologiesandemergingmarkets.However,theseappearlargelytobegroundedinexistingskillsthatcanbeextended,withtraining,tospecifictasks.Thefollowingsectionprovidesan overview of the types of occupations and skills beingdemandedbyLowCarbonemployersintheCityRegioneconomy.

Feedback from City Regionemployersindicates acontinuingneedforhigh

quality craft and technical skills at Level 3 to meet current and

anticipated medium-term demand.


Low Carbon Economy Job TypesWithinthesector,jobtypesrangewidelyfromhighlevelscientificinnovationandengineeringthroughto the application of traditional craft and technical skills.Thetypeofworkplacesforpeopleengagedin Low Carbon economy sector occupations isequallybroadandincludes:maintenanceofoffshorewindturbines;laboratoriesdesigningfuelcelltechnology;installationofheatingsystemsandinsulationinhomes;theindustrialprocessingofbiomassmaterials;andprofessionalservicesinlawandcarbonfinance.Figure6providesanindication of variety of skill levels and occupations relevanttotheLowCarboneconomysector.

NationalstudiesoftheLowCarboneconomyemphasise the cross-sectoral character of workforceskills.UKCESstatesthat“thedesign,installationandmaintenanceofmicro-generationsystems does not require very different skills thanthosewhichalreadyexistwithinthebuildingserviceengineeringsector”comprisingelectricaltradesandinstallation,plumbing,heatingandventilationandairconditioningandrefrigeration.11 However,theapplicationofnewtechnologiesinthesectorisshiftingemployerdemand,withgreateremphasisplacedontransferabilityofknowledgeacrossjobtasksandtheapplicationofdigitalskillsinmanagingbusinessprocesses.Thecoreskillsetsinengineering,construction,manufacturingandlogisticsremainanimportantfoundationforemploymentinthesector.12

Figure6Occupational Type and Employer Demand – Low Carbon Economy*DemandoccupationssourcedfromUKCES(2010;2015)

Skill Level / Occupational Type Employer Demand

Level 5+ Researchers,Adv.Engineers,

ProductDevelopment,International BusinessManagement

Level 4 Engineers,ProjectManagers,

Financial and Professional Services

Level 1/2 Semiskilledworkersinmanufacturingproduction,logisticsandconstruction

Level 3 Engineeringtechnicians,Fabrication

TeamLeaders,SupplyChainManagers

FuelcelltechnologydevelopmentDesignofwindturbinesMarinegeologyandmappingElectrical control systems Specialistlegaladviceincludingpatenting

Electrical/gridengineeringDesignofwindturbinesSpecialistfinancialservicesandaccountingChemical treatment of wasteProcessmanagementandqualitycontrol

Turbine technicians HighintegrityweldingHealth and safety technicians PlumbingtosolarthermalsystemsLogisticsmanagers

Plantoperatives/driversWarehouse workersInstallationofsolarpanelsConstruction–housingrefit/marineWastemanagementandrecycling

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As the Low Carbon economy cuts across a number ofdifferentindustrialsectors,thereisnotasingle source of data available to describe the composition oftheworkforce.Inordertoprofilethesector,information has been taken from a number of sources to articulate broad trends and identify specificissuesimportantforskillsandworkforceplanning.Withregardtoage,Figure7belowprovides a composite picture of Low Carbon economy sectorbasedupontheaggregateofManufacturing,Energy,ConstructionandTransportsectors.

Within the composite for the Low Carbon economy, thereissignificantvariationforeachoftheindividual industrialareasthatconstitutethesector.

• Manufacturing,ConstructionandTransportsectors haveanolderworkforcecomparedtotheaverage forallCityRegionsectors(31.1percent).Data fromtheONSAnnualPopulationSurveyshowsthat33percentofworkersinManufacturing are50+yearsold;34percentinConstructionare50+;and37percentinTransportare50+. TheEnergysectoralsohasahigherthanaverage proportionofworkersaged50+,butrestrictedONSdatapreventsaccuratecomparison.

• The APS data also indicates that since the last SkillsforGrowthAgreementin2013theproportion of older workers in Low Carbon Sector has increasedfrom29.4percentto34.9percentinSeptember2017.Whilethissurveydatashould be treated with some caution, it does indicatethata‘step-change’isneededtoattractyoungerworkersintothesectorinordertoavoidincreasingpressurefromhighlevelsofreplacementdemand.

Theolderageprofileofthesectorheightenstheimportanceofeffectivesuccessionplanning,particularly in roles where additional workplace trainingisrequiredforemployeestomeetregulatory requirements,forexampleintheEnergysector.13 ScottishPowerNetworkshighlighttheimportanceof this issue, with 50 per cent of their 900 person workforceintheScottishPower/Manwebareaduetoretirebefore2030–equatingto280staffwithintheCityRegion.Thischallenge,andtheimpact on replacement demand, is multiplied throughouttheenergysupplychain.Addressingthis issuepresentsanumberofoverlappingproblemsforemployers.Withanageingworkforce,reducedavailability of overseas workers and forecasts of employmentgrowthoverthenextdecade,thereislikelytobeincreasedpressuretofillvacanciesandmeetreplacementdemand.

Figure7Low Carbon Economy Sector Age Profile, Liverpool City Region 2017Source:ONSAnnualPopulationSurvey(workplace),LiverpoolCityRegionyearendingSeptember2017

Workforce Composition – Age Structure

16-19 20-24 25-49 50+Age Bands

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%

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10

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57.9

34.9

5.12


Figure8belowprovidesanindicationoftheoccupationalprofilewithintheLowCarboneconomy. The analysis is based upon the combination of data ontheEnergy,Manufacturing,ConstructionandTransport sectors to represent the Low Carbon economy.Thedataindicatesthatonethirdofalljobs(33percent)areinhigherskilledmanagerialand professional occupations, with skilled occupations constitutingaroundonequarter(23.9percent)of jobs and process and elementary occupations approximatelyonethird(30.7percent).Thenumber of professional occupations may be understated asdatadoesnotincludefinancial,legalandregulatoryroles.

ComparedtothelastSkillsforGrowthAgreement,published in 2013, there has been notable increases intheproportionofmanagerialandprofessionaloccupations in the sector and the proportion of elementaryoccupations.Thedataindicatesthatthere has been a small fall in the proportion of skilled occupations and process operatives over the period 2012–2017.Whilethisdatashouldbetreatedwithsomecaution,givenpotentialvariationwithinthesurveydata,itsuggestsincreasesintheshareofhigherqualifiedroles,includingenvironmentaland technical consultancy and also in elementary occupations,reflectingincreasedemploymentin wastemanagementandcirculareconomyactivities.

There is some variation within the Low Carbon economysub-sectorsincludedinthedefinition.

• TheEnergysectorhasahighproportionofmanagerialandprofessionaloccupations.Nationaldataindicatesthatalmost40percent of all employees are educated to level 4 or 5, significantlyabovetheUKaverage.14 This qualificationlevelismirroredinthehighproportion ofhighskilledjobsintheUK,withsome46percentofemployeesinmanagerial,professionalandassociateprofessionaloccupations.15

• IntheManufacturingsector,almosthalf(49.2percent)16 of all jobs are in skilled trades and plant and process operative occupations in the LiverpoolCityRegion.Trendswithinthesectorindicategrowthofhigherskilledprofessionalandtechnicalrolesandalong-termfallinelementaryoccupations,reflectinggrowingimpactofautomationinthesector.

• The Construction sector has around half of all occupationswithintheskilledtradesgroup(47percentin2017),17withdataindicatingsomemedium-termgrowthinhigherskilledtechnicalandprofessionaloccupationalgroups.

• The Transport and Communications sector has nearlyhalf(48.1percent)18 of its occupations in process and plant operative and elementary occupations.

Figure8Low Carbon Economy Sector Occupational Profile, Liverpool City Region 2012 and 2017Source:ONSAnnualPopulationSurvey(workplace),LiverpoolCityRegionyearending December 2012 and September 2017

Workforce Composition – Occupational Structure

Managers, Professionals and

Assoc.Professionals

Administrative Skilled Sales and Caring

Process Operatives

Elementary Occupations

Occupational Groups

35

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20

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10

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30.3 33

8.13.9

23.3

7.97.74.6

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26.5 23.9

Dec 12 Sep 17

18

Changing Workforce Skill NeedsIncommonwithallemployersintheLiverpoolCityRegion,businessesintheLowCarboneconomy requireworkerstohaveagoodbasicliteracy,numeracyanddigitalskillsandqualifications.Forall levels of work, Low Carbon economy employers have a preference for staff with STEM (science, technology,engineeringandmathematics)qualifications.AssetoutinthepreviousSkillsforGrowthAgreement,employerinterestcontinuestobefocusedonadaptingexistingvocationalandeducationalprogrammestoincorporaterelevantskills andcompetences,ratherthanthedesignofwhollynewframeworksfocusedonLowCarbonperse.

Figure9belowprovidesanillustrationofthepotential translationofexistingskillsetstojobspresentwithin theLowCarboneconomy.ThemodelunderlinestheimportanceofexistingvocationaltrainingroutesmaderelevantforcurrentandemergingemployerdemandwithinLowCarbon.Thispatternofgradualdevelopmentofskillsprogrammestoinclude Low Carbon components provides an opportunityforemployerstohighlightkeyareasofchangingskillneedsandforvocationaltrainingprovidersandhighereducationinstitutionstoadaptandextendthecoverageoflearningactivity.EvidencefromUKGovernmentassessmentofSkillNeedsforaGreenEconomy19highlightedtheneedfornewskillsinthefollowingareas.

Figure9Conversion to Low Carbon Jobs – Illustrative Examples

Chemist MastersDegree/PhD Refocusingof research skills

Researcher alternative fuels

Financial trader UndergraduateDegree Carbon literacy, market awareness,knowledgeofregulatoryenvironment.

Carbon Trader

Aerospace Technician Level3/4Apprenticeship/BTEC/NVQ

Adaptivetechnologytraining

Wind turbine technician

Offshore oil or gas maintenance technician

Level3Apprenticeship/BTEC/NVQ

Offshore wind technologytraining

Offshore wind maintenance technician

Electrician Level3Apprenticeship/BTEC/NVQ

Onthejobtraining/experience of installation of solar panels

SolarPVInstallation and Maintenance

Waste disposal operative

Level2BTEC/NVQ Identificationandtreatment of recyclable materials

Recyclingoperative

CURRENT JOB CORE TRAINING REQUIREMENT

ADDITONAL LOW CARBON SKILL REQUIREMENT

NEW LOW CARBON JOB

Source:AdaptedfromBirdandLawton(2009:48)


• Resourceefficiency–adaptingbusinessmodelstoprepareforgreenenergyregulations,designnewprocessesandpracticesandreducewaste.

• Low Carbon industry development – scientists, engineersandtechniciansinrenewableenergyproduction,installationofenergyefficientmeasures and operate in ways that reduce carbonemissions.

• Climateresilience–scientificandtechnical skillstomodelandinterpretclimatechange, riskmanagementandmeasurestoimproveclimateresilience.

• Managementofnaturalassets–accountservices for the natural environment, environmental impact assessmentandskillstodesignandadopttechnologiestomanagenaturalassets.

Theimpactofdigitaltechnologiesonbothproductsandonbusinessprocessesistransformative,posing akeychallengeforskillsprovision.Atalllevels,theuseofmeasurementandsensortechnology,computeraideddesign,manipulationofbigdataandweb-basedcommunicationsmakedigitalskillsanessentialrequirementforemployment.

TheLiverpoolCityRegionEmployerSurvey20 reports thatoneinfive(20percent)ofbusinessesfeltthattheyhadskillsgaps.IdentificationofskillsgapsvariedsignificantlyacrossthesectorscontributingtoLowCarboneconomy,asshowninFigure10.EnergyandUtilitiessectorreportedthehighestlevelofgap(31percentofrespondents),withonlyTransportbelowtheLiverpoolCityRegionaverageof20percent.ForallbusinessesreportingskillsgapsintheLiverpoolCityRegionsurvey,themostsignificantreasongiveninthelackofspecialistskills orknowledgeneededtoperformtherole–47percentofrespondentstothesurvey.

Figure10Businesses Reporting Skills Gaps, by Sector – Liverpool City Region 2017Source:LiverpoolCityRegionEmployerSkillsSurvey,November2017

Industrial Sector

31

22

18

26

35

%

30

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20

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0Energyand Utilities

Manufacturing Construction Transport

20

Diverse occupations within the Low Carbon economy include the operation and maintenance ofbiomassenergyfacilities;productionandinstallationofpowercontrolsystems;retrofitofbuildingenergyefficiencymeasures;throughtothedesignandmanufactureoffuelcelltechnologies.Drawingfromanumberofoccupationalareas,thesectorrequireshighqualitylabour,astrongbaseofengineeringskillsandcraftskillsandaworkforcewith the ability to effectively problem solve in a rangeofcontexts.Whileoverthelong-termtheseskills will be met by new entrants into the sector, more immediate skills supply will come from existingworkersthatwillrequireupdatetrainingtoadapttoemergingtechnologiesandpracticesandmeetchangingregulations.

The pathways to skills in the Low Carbon economy includefamiliarcareerroutesthrougheducationandvocationaltraining,asinFigure11(installationtechnicianintheEnergysector)andworkplacetrainingandthatenablesexistingemployeestoupgradetheirskillsandextendtheircompetencesinnewareasofactivity.Forexamplerecognisingthecentralimportanceofreducingenergyuse,theconstructionsectorischampioningthetakeupof‘energyliteracy’withinvocationaltraining,topromoteanunderstandingofhowenergyconsumptioncanbemanaged.21

Supply of Skills

Figure11Exemplar Career Pathway: Installation Technician

Qualifications required Typical entry level roles Progression

• Foundationdegree,HNC,HNDordegreeinoilandgasengineering,oranotherrelatedfielde.g.mechanicalengineering,offshoreengineering, civilengineeringorstructuralengineering

• Or advanced apprenticeship in relevant fieldapprovedbytheEngineeringCouncil

• Offshore or onshore installation technician

• Repair technician

• Maintenance technician

• Facilities technician

• Graduate schemes in piping/layoutengineering,orsubseaengineering

• Summer placements in oilandgasinstallationengineering

• Installationsupervisor

• Installationmanager

• Seniorinstallationengineer

• Sitemanagement

• Projectmanagement

Source:UKCES(2015)SkillsandPerformanceChallengesintheEnergySector.UKCES.London(Page31)


STEM Skills Theavailabilityofscientific,technical,engineeringandmathematical(STEM)skillsandqualificationsare essential for businesses in the Low Carbon economy.Nationalstudiesindicateagrowingconcernamongemployersabouttheshortageofnewtechniciansandengineersbeingtrainedtoreplaceexistingworkersdueforretirementoverthenextdecade.22AUKCESsurvey23 found that 60 per cent of employers interviewed in the energysectorstatedthattoofewindividualsarestudyingSTEMsubjectsatundergraduateorpostgraduatelevelsduetonegativeperceptions

aboutthedifficultyofcoursesorthelackofcareeropportunity.HowevertheNationalAuditOfficereporting24 HESA research, found that less than one quarter(24.4percent)ofSTEMgraduatesin2015/16 wereworkinginSTEMoccupationswithinsixmonths ofgraduation.Whilethisdoesnotaccountforunknowndestinationsandthoseundertakingfurther studythatmayhavegoneintoSTEMoccupationslater,itdoessuggestthatthereareproblemsinemployersattractingqualifiedindividualsintoscientificandengineeringcareerpathways.

The availability of scientific,technical,

engineeringandmathematical(STEM)skillsandqualifications are essential for businesses in theLowCarboneconomy.

22

A levelsDfEdataindicatesthatduring2016/17academicyeartherewereatotalof4,733studentsaged16 – 18 entered for at least one A level across thesixlocalauthorityareasoftheCityRegion.Performance at A level varies considerably by localauthority,asshowninFigure12,withmarkeddifferencesinattainmentofhighgrades(AABorbetter).Anaverageof13.5percentofthoseenteredforexaminationsattainedgradesofAABoraboveintheCityRegion.TherewassignificantunderperformanceinKnowsleyandHaltonagainstCityRegion,NorthWestandnationalaverages.

The take up of STEM subjects at A level in the City Regionhasvariedoverthelast3years,with5,384examinationentriesin2016/17,downfrom5,489in2013/14.Figure13belowshowsthebroadtrends,withthekeysignalbeingalackofgrowthinthenumbers of students entered into science, maths andcomputingexaminations.

Figure12Percentage of students achieving grades AAB or better at A level, Liverpool City Region 2016/17Source:DfE(2018)Alevelandother16–18results2016/17(revised)

Hal

ton

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sley

Live

rpoo

l

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elens

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19.7 19.522.4

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Area


Figure14providesamoredetailedviewbysubject areaovertheperiod2013/14to2016/17.Therehave been mixed patterns of participation, with growingnumbersofstudentsinvolvedincomputing, butafallinthenumberofstudentsenteredforICTandDesignandTechnologyexaminations.Therehas been a small decline in the number entered

intobiologicalsciencessubjectsandchemistryovertheperiod,ariseinnumberofstudentstakingmathematics.GivendemandforSTEMskills,thebroad trend is a concern as it indicates a lack of significantgrowthinkeyskillareasthatwillimpactthenumbersofentriesintoSTEMdegreesandhighlevelapprenticeships.

Figure13A Level Entrants for STEM Subjects 2013/14 – 2016/17, Liverpool City RegionSource:DfE(2018)Alevelandother16–18results2013/14to2016/17(revised)

Figure14Number of A level examination entries for selected subjects, Liverpool City Region 2013/14 to 2016/17 Source:DfE(2018)Alevelandother16–18results2013/14to2016/17(revised)

Year

13/14 14/15 15/16 16/17

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BiologicalSciences

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athe

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ICT

DesignandTechnology

%

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13/14 14/15 15/16 16/17

24

Apprenticeships Provision Apprenticeships are an important route into Low Carboneconomycareers,providingalearningpathwaytailoredtothespecificrequirementsofemployers.TheEnergyandUtilitiessectorhasbeenactive,nationally,inpromotingthetakeupofapprenticeshipsasameansofattractingyoungerworkersintotheindustry.Employersinthesectorareworkingtowardsexpandingapprenticeship opportunities across all occupations toofferprogressiontohigher-levelqualifications.25 ConsultationintheCityRegionindicatesthatsomeemployersareshiftingtheirrecruitmentactivitytobalancegraduateandapprenticeintake,withapprenticessupportedtoprogressfromlevel3tohigherlevelqualificationswhileworking.Vocational pathways provide an important route toqualifications,outsideofhighereducation,butrequirethestrengtheningofpartnershipsbetweenemployers,collegesanduniversitiestoensureappropriatelearningisavailable.

Nationaldataindicatesgrowthinthenumberofapprenticeship starts in STEM subject areas – growthofsome18percentbetween2012/13and2016/17–primarilydrivenbyincreasedavailabilityof Low Carbon economy relevant disciplines, includingengineeringandmanufacturingtechnologiesandconstruction,planningandthebuiltenvironment.26Whilepositive,theNAOalsoreports the under-representation of women in STEMsubjects:femalesconstitutejust8percentofallSTEMstartsin2016/17,despiterepresentingover50percentofapprenticeshipstartsintotal.27

IntheLiverpoolCityRegionin2016/17,theLowCarbon economy had 812 apprenticeship starts across294businesses.Theleveloftakeupofapprenticeships by businesses within the Low Carboneconomyislowatjust8.4percent.WhilethisisabovetheaverageforallemployersintheCityRegion–arateof7.6percentemployerpenetration-itdemonstratesasignificantunder-utilisation of apprenticeships as a core recruitment andskillsmechanism.

Figure15Apprenticeship Starts by Subject Area – Low Carbon Economy, Liverpool City Region 2016/ 17 Source:DfE(2018)ApprenticeshipdataforLiverpoolCityRegion

Adm

inis

tratio

n

Buildingandconstruction

Businessmanagem

ent

Sector Subject Area

Engineering

Manufacturingtechnologies

War

ehou

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butio

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Oth

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%

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012.6 6.8 6.4 10.7

4.3 8.6

50.6


The majority of apprenticeships within the Low Carboneconomyareinengineeringskills,asshown inFigure15,whichconstitutesnearly51percentofallstarts.Thesectorsubjectareasoverlapstronglywithmanufacturingandconstruction,withnotabletakeupofapprenticeshipsleadingto careers in administrative and business managementoccupations.Readingacrossdataforallgrowthsectorsshowsthediversityofroleswithin Low Carbon economy and the importance of STEMskillstounderpinentrytoemployment.

PerformancedatafortheLiverpoolCityRegion,analysedbygrowthsectorandlevel(Figure16),shows a majority of apprenticeship starts (56 per cent)wereatlevel3.Whencomparedwithallgrowthsectors,thereisasignificantdifferenceatlevel4+,withjust4percentofstartsintheLowCarboneconomycomparedtoanaverageof13percentacrossallsectors.Addressingthisgapbystrengtheningtheroutestohigherlevelqualificationsprovidesakeyopportunityforthesector to both shape the provision of technical skillsand,byarticulatingclearpathwaystoprofessional occupations, create an incentive for talentedyoungpeopletochoosecareersintheLowCarboneconomy.

Figure16Apprenticeship Starts by Growth Sector and Level – Low Carbon and All, Liverpool City Region 2016/17 Source:DfE(2018)ApprenticeshipdataforLiverpoolCityRegion

%

60

50

40

30

20

10

Level 2 Level 3 Level 4+0

40

4

5642

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45

Low Carbon Economy All Sectors

26

Higher Education TheCityRegionhasastrongbaseofstudentsstudyingSTEMsubjects,with14,770studentenrolments in subject areas directly related to the LowCarboneconomy.AsshowninFigure17,engineeringandtechnologyandphysicalsciencesarethetwolargestareasofstudy.NationaldataindicatesthattherehavebeenincreasingnumbersofstudentsstudyingSTEMsubjectsoverall,however this has been accompanied by sharp declines in the numbers of part-time students, acrossamajorityofsubjectareas.

TherearesixuniversitieslocatedinandservingtheLiverpoolCityRegion,withover14,500enrolled studentsstudyingSTEMsubjects.Withinthistotal are2,205postgraduatetaughtandresearchstudents studyingSTEMsubjects.AsshowninFigure18,the largestgroupofstudentsarestudyingengineeringandtechnologysubjects.TheUniversityofLiverpool andLiverpoolJohnMooresUniversityhavethelargestnumbersofstudentsinSTEMsubjects,withUniversityofLiverpoolhavingnearlytwothirds(61percent)ofstudentsinphysicalandmathematicalsciences.

Figure17Student Enrolments in Low Carbon Relevant Subjects, Liverpool City Region Universities 2016/17 Source:HESA(2018)

22.1%

11.1%

20.3%

30.9%

15.6%

Physical sciencesMathematical sciencesComputer scienceEngineeringandtechnologyArchitecture,buildingandplanning


University of Liverpool - Stephenson Institute for Renewable EnergyTheStephensonInstituteforRenewableEnergyisaspecialistenergymaterialsresearchinstitutefocusingonthephysicsandchemistryofenergygeneration,storage,transmissionandefficiency. TheInstitute’sresearchengageswithenablingtechniques–exploringthefunctionofmaterialsandtheiruseinthegenerationandstorageofenergy;energygeneration–solarelectricity,theuseofsustainablematerialsanduseofbiomassandwasteproducts;andenergystorage–highenergystoragebatterytechnologiesforconsumerelectronics,electricvehiclesandstationarypowerback–up.

Source:www.liverpool.ac.uk/renewable-energy

Liverpool John Moores University – Department of Maritime and Mechanical EngineeringTheDepartmentofMaritimeandMechanicalEngineeringundertakesteachingandworldleading researchinmarineandoffshoreengineering,maritimeoperationsandlogistics,engineeringsystemsdesignandadvancedmanufacturingtechnologyandmaterials.

Source:www.ljmu.ac.uk/about-us/faculties/faculty-of-engineering-and-technology/maritime-centre

Figure18Student Enrolments in STEM Subjects, Liverpool City Region Universities 2016/17Source:HESA(2018)

Physical Mathematical Computer Engineering Architecture, Total sciences sciences science and building and technology planningChester 265 155 290 200 - 910EdgeHill 235 210 630 - - 1,075Liverpool Hope 60 45 115 10 - 230LiverpoolJMU 750 210 1,070 2,025 1,235 5,290LIPA - - - 80 - 80UniversityofLiverpool 1,960 1,020 890 2,245 1,070 7,185Total 3,270 1,640 2,995 4,560 2,305 14,770

There are 6 universities located in and servingtheLiverpoolCity

Region,withover

14,500 enrolledstudentsstudying

STEM subjects

28

Careers Education Informationonspecificcareerspathwaysisavailablethroughindustryemployergroups,aslistedinFigure19,throughnationalwebsitesincludingtheNationalCareersServiceandNationalApprenticeshipsServiceandlocaldatabasessuchasLiverpoolCityRegionLearn.IntheLiverpoolCityRegioncareersandcourseinformationisalsoavailablethroughcareers,collegesandtrainingproviders.

Whilstthereisavaluablerangeofinformationavailable on individual occupations and on the importanceofSTEMacrossarangeofcareer

pathways, there is limited amount of information on the opportunities within the Low Carbon economy asawhole.Withemployersandpotentialrecruitsfocusingonspecificskillsetsandjobroles,thelack of presence for Low Carbon economy may obscuretherangeofcareersavailable.ThisbecomessignificantfortheCityRegionwherethere is limited supply of particular skills and growingcompetitionforrecruits.AsthesectorintheLiverpoolCityRegioniswellestablished,thereis an opportunity to create materials that present clearpathways,throughapprenticeshipsandhighereducation,intothesectorforyoungpeople.

STEM Ambassadors TheMerseysideandCheshireSTEMAmbassadorHubbringstogetherindustryprofessionals,youngpeopleandschoolstoexploreandpromotecareersinscienceandtechnology.TheschemehelpsbusinessestogainabetterunderstandingofeducationandthewaystoencourageagreatertakeupofSTEMsubjectsbymembersofthefutureworkforce.Youngpeopleandteacherslearnabouttheuseoftechnologyandmathematicsintheworkplacethroughpracticalprojects,problemsolvingandvisits.

Source:www.allaboutstem.co.uk


Of particular importance is active promotion of careers information, work experience and employer engagementinschools–suchastheSTEMAmbassadorsprogramme–tochampiontheLowCarboneconomy.Increasedactivityinthisarea isimportanttoencourageSTEMcareersand boostnumbersofyoungpeoplechoosingscienceandengineering,butalsotochallengegendergapsandengagingyoungpeoplein disadvantagedcommunities.

Figure19Sources of Careers Information for the Low Carbon Economy

Organisations Occupational Areas National Apprenticeships Service Nationalinformationonallapprenticeshipopportunities. www.gov.uk/apprenticeships-guideThink Power Careersinpowergenerationandtransmission www.thinkpowersector.co.ukConstruction Industry Training Board Construction www.citb.co.ukCogent Chemicalandpharmaceutical,oilgas,nuclear, www.cogentskills.com petroleumandpolymersEnergy and Utility Skills Gas,power,wastemanagementandwater www.euskills.co.ukRenewable UK Onandoffshorewind,waveandtidalenergy www.renewableuk.comLantra Environment and land based industries www.lantra.co.ukSemta Science,EngineeringandManufacturingTechnologies semta.org.ukNational Careers Service Careersserviceforyoungpeopleandadults. www.nationalcareersservice.direct.gov.uk

30

TheLowCarboneconomyfacesarangeofpressures on skill supply driven by the new markets and technologies,changingnationalpolicyonenergyuseandanageingworkforce.Energyandutilitybusinesseshaverecognised28theneedtochangetheirapproachtosecuringfuturelaboursupplybyactivelypromotingcareersinthesectorandcommittingtoraisingtheskillsofexistingworkers.Witharound20percentoftheenergyandutilityworkforce due to retire in the next decade, based onnationalfigures,andmajornewinfrastructureinvestment in key Low Carbon economy areas includingenergyproduction,waterandsanitationandhousingrenewal,29thereisapressingneedtoensuretheavailabilityofskilledemployees.

Theimplementationofnewtechnologieswillaffectall aspects of the Low Carbon economy and also create new demands in the wider labour market for technicalskillsfocusedonefficientandrenewableenergyuse.WithintheenergyandutilitiessectorthereisalreadygrowingdemandforspecialistITskillsabletoutilisecustomer‘bigdata’topredictand a improve the delivery of heat and power and a requirement for skills in cyber-security to protect automatedsystems.Risingdemandforskilledlabourisalsoexpectedthroughthegrowthofmorecomplexdistributedenergysystems,withmultiplepointsofenergyproduction,storageandroutesfordistributionthatrequireupgradingofinfrastructureandeffectivemanagement.30

Current and Future Demand

Estimates reported byEnergyandUtilitySkills

suggestthattherecentmovetosmart meters will create a national

requirement for over

12,000 additionalworkers,including10,000meterinstallers.31


Thegrowingadoptionofelectricvehicleshasdirect implications for physicists, chemists and manufacturingengineersworkingonfuelcelltechnology,butcreatesawiderdemandforqualifiedelectriciansandconstructionskillstoinstallchargingpointsandanewskillsetformechanicstorepairandmaintainelectricvehicles.Withemphasisonenergyefficiencyinthehome,thereisexpectedtobecontinuingdemandfor boiler replacements, insulation and micro-generationofelectricitythatwillalsoincreasedemandforskilledlabour.EstimatesreportedbyEnergyandUtilitySkillssuggestthattherecentmove to smart meters will create a national requirement for over 12,000 additional workers, including10,000meterinstallers.31

Growth is also expected in the circular economy, withpressurefromconsumersdrivingdemandformore recyclable materials, the reuse of waste to producesustainableenergyandthe‘up-cycling’of

furnitureandwhitegoods.Increasingdemandforrepairandreuseofhouseholdgoodsisexpectedto stimulate employment in small enterprises and community businesses and provide a boost to local economiesintheCityRegion.

InmanyrespectstheLowCarboneconomyisattheforefrontofwiderchangesinthelabourmarket,drivenbyamergingoftraditionalsectorskillsetsandincreasingcircularityofeconomicactivityinthedrivetowardsenergyefficiency.Thechallengeforthesectoristopushthroughaperiodofrapidtransformation to reposition Low Carbon careers as offeringchallengingcareeropportunitiesforyoungpeopleandadultswithstrongSTEMskills.Withnationalpolicyencouragingcleangrowth,thereisagrowinginternationalmarketinrenewableenergy,wastemanagement,manufacturingandcivilengineering,whichhasthepotentialtodrivegrowthforbusinessesandworkersintheLiverpoolCityRegion.

32

Aggregate Demand ForecastsfortheLiverpoolCityRegionLowCarbon economy indicate a small rise in employment between2016and2030andfastergrowthinoutput. AssetoutinFigure20,employmentisforecasttogrowby2,129or6percentovertheperiod,whilethe value of economic output (measured as Gross ValueAdded–GVA)isrising,growingbysome£665milliontotheendof2030or34percent.32 While the forecast data does not offer detail below broadtrendstoidentifyspecificimplicationsforoccupations, the pattern is consistent with industry analysisthatindicatesproductivityrisingfasterthan employmentasdigitaltechnologyimpactsonjobrolesandoveralllabourdemand.

FastrisingGVAreflectsexpectedinvestmentinthesectorandautomationofprocessesamongenergyandutilityemployers.Theincreasedimportanceofprocessmanagementanddigitalskillsisevidentinthe forecast performance of technical and advisory service business activity, linked to the Low Carbon economy.Architecturalandengineeringactivities,scientificresearchanddevelopmentactivitiesandotherprofessionalscientificandtechnicalactivitiesareallexpectedtogrowovertheperiod2016–2030. Areasofgrowthinthesehighskillareasarelikelyto offset, in respect to total employment, some declines in more traditional and lower skilled aspects of the LowCarboneconomy.RisingGVAunderlinesthe importanceofcapturingthepotentialofLowCarbon asahighskillhighvaluesectorwithintheCityRegioneconomy,butalsotheneedformanagerialandenterpriseskillsacrosstheworkforce.

Figure20Total Employment and GVA Forecasts Index, Low Carbon Economy Sectors, Liverpool City Region 2016 – 2030Source:OxfordEconomicsForecastsforLiverpoolCityRegion(2017)

Inde

x - 2

016=

100

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2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

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Employment GVAYear


Whiletrenddataindicatesvaryinglevelsofjobsgrowth,thesectorwillremainakeycontributorto employmentwithintheCityRegion.Itisimportant therefore to consider the implications of replacement demand,particularlyinasectorwhereahighproportion of the workforce will be due for retirementoverthenextdecade.Figure21provides an estimation of 35,710 jobs in key occupations important for the Low Carbon economy that will need tobereplacedovera10-yearperiod.Whilenotallof these posts will be taken up by Low Carbon economy employers, it illustrates the overall requirement of the CityRegionlabourmarketandpointstoheightening competitionbetweenemployersforskilledstaff.

Skills Shortages TheLiverpoolCityRegionemployerskillssurvey201733providessomeinsightsintoLowCarboneconomyemployers’recruitmentactivityandtheirexperiencesinmeetingtheirskillsneeds.Thesurvey shows that employers in this sector had a higherlevelofrecruitmentactivitythantheaveragefortheCityRegion,with81percentofbusinessesrecruitingintheprior12monthscomparedtoasurveyaverageof68percentofbusinesses.Theprincipal reason for recruitment was business growth,reportedby82percentofbusinessesandalsostaffturnover(for49percent),althoughthiswaslowerthanthesurveyaverage.

Figure21Estimated Replacement Demand, Selected Occupations, LCRSource:UKCESWorkingFutures2012to2022,ONSandCPCcalculations

Low Carbon Economy Occupations Replacement Demand Science,research,engineeringandtechnologyprofessionals 8,518Science,engineeringandtechnologyassociateprofessionals 3,742Skilled metal, electrical and electronic trades 7,575Skilledconstructionandbuildingtrades 6,250Process, plant and machine operatives 6,291Elementary trades and related occupations 3,334Total 35,710

34

The survey reported that 38 per cent of businesses hadvacanciesthatwerehardtofill,higherthanthesurveyaverageof27percent.Themostfrequentreasonsgivenforhardtofillvacancieswaslownumbers of applicants with the required skills (63 per centofbusinesses)andlownumbersofapplicantswith required motivation and personal qualities (23 percent)andalackofqualifications(17percent). Some 50 per cent of employers also reported difficultyinfillingvacanciesbecauseofshortagesintechnicalskillsspecifictothesectororrole,alevelmarginallyhigherthanthesurveyaverageof48 percent.WhileLowCarbonemployersexperienced someproblemsinfillingpostsatalloccupationallevels,whencomparedtosurveyaverages,theyhadhigherthanaveragedifficultywithchiefexecutiveandseniorofficialposts,skilledtradesandprocessandmachineoperatives.

ImprovingskillslevelswithinthesectorisaconcernforemployerswithintheCityRegionLowCarboneconomy.Justoveroneinfive(22percent)ofbusinessesreportedthattheyhadstaffwholackedproficiencyintheirroles,withprimaryconcernbeingknowledgeofproductsandservicesofferedbytheirorganisations.TheLiverpoolCityRegionbusinesssurveyindicates

thatinvestmentinskillswasdrivenbychangesinregulatoryrequirementsfor44percentoffirmsandtrainingtoenablestaffacquireskillsrelatedtonewproductsorservices(30percent).

Whileskillsshortagesareevidentinbothhighskillsand operative levels, there are particular issues withtheavailabilityofscientificandengineeringskills,reflectingnationalshortageissues.Figure22showstheskillsshortageoccupationlistproducedbytheUKgovernmentusedtomanagelabourflowfromoutsideoftheEuropeanEconomicArea.Onthis list are a number of skilled occupations vital to theLowCarboneconomy.

To meet current and future skills needs will requirethesectortochangepublicperceptionsbyhighlightingtheopportunitiesforcareersinthesectorandalsobyupdatingrecruitmentpracticesto more effectively compete within the labour marketthroughinvestinginapprenticeshipsandworkbasedtraining.Thedynamicnatureofthesectorcreateschallengesforemployers,butalsoopportunities to capitalise on new roles created bytechnology,growinginternationalmarketsandtheadoptionofLowCarbonpracticesaffectingallpartsoftheeconomy.

Figure22Tier 2 Shortage Occupation List: Selected In-demand occupationsSource:https://www.gov.uk/guidance/immigration-rules/immigration-rules-appendix-k-shortage-occupation-list

• Productionmanagersinnuclearindustrywaste managementanddecommissioning.• Productionmanagersinelectricitytransmission anddistribution.• Physical scientists in construction related groundengineering.• Physicalscientistsintheoilandgasindustries.• Physical scientists in nuclear industry waste managementanddecommissioning.• Civilengineersintheoilandgasindustries (includingoffshoreandsubseaengineersand controlandinstrumentengineers).• Environmental professionals in construction related groundengineering.• Mechanicalandelectricalengineersintheoiland gasindustries.

• Engineeringprofessionalsinelectricitytransmission anddistribution.• Engineeringprofessionalsinthecivilnuclearindustry.• ITproductmanagerandITsystemsengineers.• Datascientistsandcybersecurityspecialists.• Qualitycontrolandplanningengineersinelectricity transmissionanddistribution.• Engineeringtechniciansinelectricitytransmission anddistribution.• OverheadlinesworkeratLinesmanErector2.


Shiftsinenergyproduction,distributionandusehave made an important contribution to the City Regioneconomyoverthelastfiveyears.TheIrishSeanowhasthesecondlargestconcentrationof offshore wind turbines in the world and there hasbeensome£4.3billionofinvestmentintotheseassets.TheCityRegion’snationalstatusasaCentreforOffshoreRenewableEngineering(CORE)hasprovidedaboosttoprivatesectorinvestmentthathasincludednewbiomassenergyfacilities.GrowthofsustainableenergyproductionisbeingextendedthroughplanstorealisethepotentialfortidalenergyintheMerseyRiver.

Theconsumptionandconservationofenergyisalsobeingtransformedandiscreatingimportantnew markets for businesses and opportunities forinvestmentandgrowth.Theincreaseduseofelectricandhybridvehiclesamongprivateusersandpublictransportprovidersisbuildingademandforscientists,engineersandskilledtechnicians.

Theongoingchallengeofenergyefficiencyinhomes and businesses will require skilled craft workersandincreasingproductionofmaterialsandtechnologiesthathelpmanageenergyconsumption.

Anexcitingareaofdevelopmentistheuseofhydrogentoreplacefossilfuels(suchasnaturalgasanddiesel).Hydrogenoffersanimportantsourceofalternativeenergythatcouldmakeamajorcontributiontoreducingemissions.Whileinadevelopmentalstage,thereareanumberofinitiativesunderwayintheCityRegion:theconversionofpassengertrainsbeingundertakenbyAlstominWidnesandaNorthWestprojecttoreplacethesupplyofnaturalgas(seecasestudiesbelow).TheseinitiativescoulddriveresearchandinnovationintheCityRegionoverthenextdecade,with the potential for penetration into international marketsthatcouldboostdemandforengineeringandtechnicalskillstomanagethetransitiontohydrogenfueltechnology.

Energy Production and Use – Key Issues

Hydrogen Gas TheuseofHydrogentoreplacenaturalgas,asafuelforhomesandtransport,offersenormouspotentialtoreduceharmfulgreenhouseemissionsandstimulatejobsgrowthandinnovation.TheHYNETprojectplanforHydrogenproductioncouldattractnearly£1billionofcapitalinvestmentandmorethan5,000newjobsinthemanufacturingofHydrogenandconstructionofinfrastructuretobusinessesandhomesintheNorthWest.TheshifttoHydrogenwouldcreateemploymentacrossarangeofoccupationalgroupsandestablishacentreofexpertiseintheregioninHydrogenandcarboncapturetechnology.

Source:https://hynet.co.uk/app/uploads/2018/05/14368_CADENT_PROJECT_REPORT_AMENDED_v22105.pdf

Rail Transport PathbreakingresearchanddevelopmentintoHydrogenpoweredtrainsisbeingundertakeninWidnesbytheinternationalengineeringbusinessAlstom.ThedevelopmentofHydrogentechnologycomesinresponsetotheUKGovernment’schallengetoremoveallDieselrolling-stockby2040.Whileatanearlydesignstage,HydrogenpoweredtrainscouldmakeasignificantenvironmentalandeconomicimpacttotheCityRegion.SuccessfuldesignandtechnicalapplicationcouldprovideaccesstoEuropeanandglobalmarketsandsupportjobsthroughtheNorthWestsupplierchain.InitialproductiontoconvertafleetofClass321electrictrainsbyinstallingHydrogenfuelcellswillbeundertakenfromtheWidnesplant.

Sources:https://www.telegraph.co.uk/business/2018/05/14/french-train-giant-alstom-set-make-uks-first-hydrogen-fleet/andhttp://www.thebusinessdesk.com/NorthWest/news/2021157-train-giant-alstom-proposes-hydrogen-fuelled-solution-diesel

36

Inadditiontonewinitiatives,LowCarbonhassignificantopportunitiestocapitaliseonexistingprogrammesofworkandsectorstrengthsintheCityRegiontoincreaseemploymentandtraining.Forexample,growthinnuclearenergygeneration,inacontextoflargescaleUKandinternationaldemand, with companies such as Cammell Laird and Rolls Royce as key centres, in and aroundtheCityRegion,forproductionofsmallmodularnuclearreactors.Growthinthismarketwillcreatedemandforskilledengineersandtechniciansacrosstheregionalsupplychain.AlsolinksthroughtheLocalEnergyNorthWestHubprogrammeofinvestment.Includingobjectivestogenerateemploymentandtrainingoutcomesas a key outcome from direct and contracted

capital investment initiatives could make a major contribution to both employment and the availabilityofworkbasedtraining–ensuringthatmajorprogrammesgeneratebothenvironmentalandeconomicbenefitsfortheCityRegion.

With an established base of international businesses, nationalpolicydrivingmajorinvestmentintocleangrowthandastrongsupplychainofbusinessandknowledgecreatorsthroughouttheNorthWest,there is a deep foundation for new employment andrisingproductivityoftheLowCarboneconomy.ThefollowingsubsectionslookinmoredetailatthechangingskillsdemandofthreeimportantareasofbusinessactivityfortheLiverpoolCityRegion.

Low Carbon has significantopportunitiesto

capitaliseonexistingprogrammesofworkandsectorstrengthsintheCityRegiontoincreaseemploymentandtraining.


Wind energy TheoffshorewindenergysectorinLiverpoolBayandIrishSeacontinuestomature,withtherecentexpansionofexistingsitesatBurboBankandWalney and the introduction of improvements to technologythatincreasethegeneratingcapacityofturbines.Thesetwositeshavethedistinctionofhavingtheworld’slargestturbinesinBurboBank Extension and the Walney Extension, due forcompletionin2019,willbetheworld’sbiggestoffshorewindfarm.34

Therequirementsofthesectorarehowevershifting, with the demand for skills to construct offshore installationsbeingreplacedwithanemphasisontheoperationandmaintenanceoffacilities.TheOffshoreWindEnergyCouncilreportsthatamajorityofongoingemploymentinthesectorwillbefromoperationandmaintenanceactivity.35

Securinglongtermsupplyofskillsinmechanicalandelectronicengineeringalongwiththemarinelogisticssupportisakeyobjectiveforthesector.Figure23providesanillustrationofthetypesofcompetencesthatwillbecomeincreasinglyimportantinthesector.

Theleadinginternationalpositionofbusinessesin theCityRegionisalsoexpectedtoresultinan increasedshareofglobalbusiness,asthemarket for both the construction and operation of renewable energyfacilitiesgrows.Thesectorbody,Renewable UK,reports36thatthebenefitsofgrowingwindenergysectorhasledtocontractsthroughoutthediversesupplychainfromwindfarmdesignandseafasteningsthroughtofabricationofsteelworks,cable manufacture, marine co-ordination and provisionofinspectionservices.

Figure23Core and Additional Skill Competency Areas for Wind PowerSource:AdaptedfromCrownEstate(2010)

Skill Areas Additional Skills Required Low Carbon Work Area

Fabrication AeronauticaldesignControlsystemsengineeringElectricalengineerMechanicalfittersWelding

Transferable skills from heavy manufacturingandshipbuilding.Specifictraininginturbinedesignand manufacture and technical roles suchasuseofhighvoltagecablesforoffshoreinstallationsandhighspecificationwelding.

•Maintenanceandupgradingofwind turbines

• Repair of electrical systems

•Repairofgearingmechanisms

•Qualitycontrol

Construction and Installation CivilengineeringSurveyingConstructionprojectmanagementElectrical technicianRigandcraneoperatives

Transferableskillsfromtheoilandgasindustryandfromcivilengineering.Core additional skills required include healthandsafetyandworkingatheightsoffshore.Specifictechnicaltraininginmarineengineering.

• Inspectionofseabed foundationsfor turbines

• Maintenance of electricity cables

•Offshoreprojectmanagement

• Connection to electrical substations

Maintenance ElectricalengineerMechanical technician Systems performance operativeShip crew

Transferableskillsfrommanufacturing,chemicalandenergyindustriesandfromwithinportandmarineindustries.Technicaltraininginmonitoringofwindturbineperformance,problemsolvingandrepair.

• Performanceandmonitoringengineer

• Turbine technician

• Skipper wind farm vessel

•Mechanicalengineer

38

TheGovernmentiscurrentlydevelopinga‘sectordeal’thatisaimedatacceleratingthedevelopmentofthewindenergysectorandenhancingsupplychain developmenttoboostUKbusinessengagementin internationalmarkets.Thedealisexpectedtoinclude afocusonimprovingworkforceskills,accesstoqualifiedrecruits,encouraginggreaterbusinessleadershipincurriculumdesignandpromotingamore diverseworkforce.Thepublicationofthesectordeal should provide an important opportunity for the City Regiontoconsolidatethesuccessofthesector.

Electric Vehicles NationalpolicyincludedintheUKIndustrialStrategy37 andCleanGrowthStrategy,38 supported by new regulationsonthevehiclere-chargingforthcomingin the Automated and Electric Vehicles Bill,39 provide strongincentivestoaccelerateashifttoelectricvehiclesamongprivateandcommercialusers.Policyincludesatargetedendtothesaleofconventional petrol and diesel cars by 2040, public investmentinthecharginginfrastructureandfinance toencouragethetakeupoflowemissiontaxisand buses.Additionally,Governmenthasnegotiated an Automotive Sector Deal40 that includes major investment in the development of battery research andtechnology,supporttoraisethecompetiveness of electric vehicle supply chain and partnership with businesses to upskill the workforce and increaseengagementinapprenticeships.

Wind EnergyBurboBankExtension,locatedsome7kmoffshorefromtheNorthWirralcoast,operatestheworld’slargestturbines.Thefacilityhas32turbinesgenerating258MWofenergy.Eachturbineis195mtall–nearlytwicetheheightoftheLiverBuilding.BurboBankoperationsaremanagedfromastateoftheartfacilitylocatedatKingsWharfBirkenhead.TheExtensionprojectprovidedamajorcapitalinvestmentintheIrishSea,boostingrenewableenergygenerationfortheNorthWest.Theschemenotonlycreatesenoughenergyeachyeartopower230,000homes,ithascreatedjobsthroughtheconstructionphase oftheprojectandsome45permanentpostsintheBirkenheadoperationscentre.

Source:https://orsted.co.uk/-/media/WWW/Docs/Corp/UK/Project-Summaries/Project-Summary_Burbo-Bank-Extension.ashx?la=en&hash=81E63DC2093EDF092966228DA9E3D7602051C15F&hash=81E63DC2093EDF 092966228DA9E3D7602051C15F


Rapidimprovementsinbatterytechnologyandre-chargingspeedshaveencouragedconsumertakeupofelectricvehicles.Forecastsindicatethattherewillbecontinuinggrowthoftheelectricvehicle market, with an estimated 450,000 electric vehiclesintheLiverpoolCityRegionby2040.41 Major car companies have indicated a shift in productiontolowemissionvehicles,includingJaguarLandRover42 who have committed to buildingonlyelectricorhybridcarsfrom2020.Thesechangeshavesignificantimplicationsforthe electricity supply network, for the installation of chargingpointsindomestic,commercialandpubliclocations and demand for multi-skills to service and maintainelectricandhybridvehicles.

While the potential employment impact of a shift to electric vehicles is unclear, research for the Department of Transport43 indicates, should nationaltargetsbemet,therewillbesome13.6million electric vehicles on the roads in 2030 that willrequireanationalrapidchargingnetworkof20,000unitsover2,100publicsites.Withinternationalevidenceindicatingthatelectricvehicleusersprefertore-chargeathome,thedemandforinstallationofchargingpointswillbesignificantandrequirelargenumbersofelectricaltechnicianstoinstalldomesticconnections.Within the automotive industry, employers are reportingashortageoftechnicianswithmulti-skillsin mechanical, electrical and electronics able to repairandmaintainhybridvehicles,affectingbothmanufacturingandcustomerservices.44

Figure24Core and Additional Skill Competency Areas for Electric VehiclesSource:AdaptedfromCrownEstate(2010)


Vehicle Manufacture VehicledesignandengineeringChemist Physicist Manufacturingproduction

Growingdemandforhigherlevelskillsinvehicleengineeringanddesigntoexploitmarketforelectricvehicles.Specificrequirementforresearcherengagedinbatterydesignandoperationforelectricvehicles.

• Research and development of batterytechnology

• Mechanical and electrical engineering

•Manufacturingprocessengineering.

Vehicle Maintenance AutomotiveengineersVehicle mechanics Mechanical technician Fleet and public service vehicle maintenance workers

Increaseduseofhybridandelectricenginesdemandsnewskillsandmultiple competences from car and commercial vehicle mechanics and technicians.Industryreportsspecificneedforskillsinsensortechnologyandfault-finding/diagnostictechniques.

• Mechanical and electrical engineers

•Hybridtechnologyengineers

• Motor technicians

• Public service and commercial vehicle mechanics

Installation of Charging Points Electricians Sales Customer relationsHousingconstruction/buildingmaintenance

Transferableskillsforqualifiedelectriciansworkingindomesticandcommercialsettings.Level3inspectionandtestingrequired.Specificproducttrainingandcustomerservicesskills arerequiredfortheseroles.Additionally,buildingskillswillbeimportantforinstallationofunits.

• Electricians

•Qualitycontrolinspections

•Building/constructionskills.

Activity is focused onretrofittingmeasuresto

reduceenergyconsumptionandimprovethethermalefficiency

ofexistingdwellings and workplaces

40

Housing Energy Efficiency Despite the withdrawal of the national Green Dealprogramme,thereremainsanimportantchallengetoimprovetheenergyefficiencyofhomeandbusinesspremisesacrosstheUK.Activityisfocusedonretrofittingmeasurestoreduceenergyconsumptionandimprovethethermalefficiencyofexistingdwellingsandworkplaces;theadoptionofnewbuildingmaterialsandtechniquesintheconstruction sector that help achieve current standards;andtheuseofnewtechnologies,suchassmartmeters,tohelpcontrolenergyusewithinthehomeandplacesofbusiness.Thesethree aspects have important implications for the LowCarboneconomy,creatingdemandforbotharchitecturalandbuiltenvironmentdesignskillstoenableashiftfrom‘lowtono’carbonbuildingsandhighqualitycraftandtechnicalskillswithintheconstructionsector.

TheLiverpoolCityRegionhasamajorchallengetoupgradesocial,privateandprivate-rentedhomesuptoEnergyPerformanceCertificate(EPC)BandCby2035.Currently60percentofhousingstockisatBandDorbelow.TheLiverpoolCityRegionCombinedAuthorityisintheprocessofdevelopingaHousingStrategytoidentifypriorityactionstoimproveenergyefficiency.ThisStrategywillhelptoarticulatetheaggregatelevelofdemandforlabourandskills.


Thecoreskillsrequiredforhousingenergyefficiencyactivityandelectricitymicro-generationmeasuresarelargelyfoundinexistingconstructiontrades.Figure25identifiesareasofprofessionaland craft skills and their application to Low Carbon workrequirements.Overthelastfiveyearstherehasbeengreaterrecognitionoftheneedtoincorporateenergyefficiencyskillsandtechniquesintoexistingtrainingframeworksinordertobothimprovetheapplicabilityoflearningtoavarietyofdifferent workplaces and also to avoid providers ‘gambling’onvolumetrainingincontextswheretherehavebeensuddenchangesinnationalpolicy.

Whilst some caution is sensible, studies have underlinedthenecessityofupdatingworkforceskillsandexistingapproachestotraining,withintheconstructionsector,torecognisechangingtechnologyandtherequirementsoftheLowCarbonmarket.45Morespecificallytheimplicationsof new technical approaches to construction and retrofitthroughoffsiteproductionandassemblyofmaterials;46demandforin-situproblemsolvingandknowledgetoensuretheeffectivenessofefficiencymeasures;47andchangingregulationsand practices, such as the new PAS 2035 code for energyretrofitofbuildings.

Figure25Core and Additional Skill Competency Areas for Energy Efficiency Source:AdaptedfromCrownEstate(2010).


Design and BuildArchitecture EnvironmentaldesignPlanningStructuralengineering

Adaption of professional skill sets tofocusonbuildingdesignandconstruction to produce low and nocarbondwellingsandbusinesspremises.

•Designof‘nocarbon’buildings

• Energyproductionandmanagementsystems

• Construction project management

Insulation Plasterer/DrylinerBricklayingCarpentry/JoineryGlazing

Transferable skills from construction trades.Additionaltraininginrenderingandfinishinganduseofnewmaterialsforinsulation.

• InternalandExternalWallInsulation

•CavityWallInsulation

• LoftInsulation

Heat Management PlumbingElectricians HVAC Trades

Transferableskillsfromplumbingandassociatedtrades.Additionalskillsininstallationofsolarunitsandworkingatheights.Additionallyknowledgeforgivinghomeenergyadvice.

• Installationofsolarthermalunits

• Installationofenergyefficientboiler/heatingsystems

Micro-generation Electrician ElectricalInstallationRoofers

Transferable skills from electrical trades.AdditionalskillsininstallationofPVunitsandworkingatheights.Additionallyknowledgeforgivinghomeenergyadvice.

• InstallationofPVunits

• Installationofhomeenergymonitoringandcontrolsystems

Conclusions

42

The Low Carbon economy is diverse and is currently goingthrougharapidprocessofchangedrivenbytechnologicalinnovation,shiftingregulatoryenvironmentsandgrowinginternationalmarkets-underpinnedbygreaterpublicawarenessoftheneedtoreduceenergyconsumptionandharmfulemissions.ThisdynamismhasanumberofimplicationsfortheCityRegionandtheprovisionoflabourandskillsfortheLowCarboneconomy.

First,thepaceofchangehas,insomeskillareas,createdagapbetweentheemergingdemandforand the availability of skills – a problem that is exacerbatedbyanincreasinglyageingworkforceandtherequirementsofreplacementdemand.Indicationsareemployersaremeetingtheirskillsdemandswithinashrinkingpooloflabour,withqualifiedelectriciansandtechniciansinparticulardemandbybusinesses.Theimplicationsarethatmoreyoungpeopleneedtobeattractedintothe Low Carbon economy to sustain short-term requirement, but more importantly be available to capture the expansion of new markets, such as EV andhouseholdenergymanagement.

Second, due to the diversity of business activity LowCarbonlacksacoherentprofileasacareerpathway.Whileeffortsarebeingmadetopromoteapprenticeships as a route to professional and technical careers and some employers are actively engagedinencouragingthetakeupofSTEMqualifications,progresssince2013hasbeenlimited.Usingexistingbusinessandeducationalnetworks more could be done to improve careers informationandguidanceandunderlinethepotentialofLowCarbontoofferexciting,rewardingandenterprisingcareersforyoungpeopleintheCityRegion.

Third,digitaltechnologyishavingatransformational effect on every aspect of business activity within LowCarboneconomy,fromproductdesignthrough tocustomerservice.Whileemployersvaluestrong underpinningengineering,technicalandcraftskillstheapplicationoftheseskillswithinadigitalenvironmentishavinganeffectondemand.Closer workingbetweenemployersandeducation/training providersisessentialtoidentifythespecificsofchangingdemandinordertoinformadaptionofexistingcurriculumandbuildtheevidencefornewframeworks.Wherethisdialogueworkswell,itcan makeasignificantimpactonthequalityandrelevance oflearningandalsoontheabilityofbusinessestobuildapipelineoffutureleadersandinnovators.

Finally,LiverpoolCityRegion,throughtheCombined Authority, Low Carbon Board and Employment and Skills Board has a unique opportunity to improve the skills system and realise thepotentialforgrowth.Withinrapidlychangingpolicy and commercial environments, the City Regionpartnershipshaveanopportunitytoshapeandbuildacollaborativeresponsetomeetingskillneeds and in the process raise the international profilecompetivenessofthesector.


Endnotes1. https://www.gov.uk/government/topical-events/the-uks-industrial-strategy2. BEIS(2017)TheCleanGrowthStrategy:LeadingtheWaytoaLowCarbon

Future.https://www.gov.uk/government/publications/clean-growth-strategy3. Dataavailable:https://www.ons.gov.uk/economy/environmentalaccounts/

datasets/lowcarbonandrenewableenergyeconomyfirstestimatesdataset4. Source:https://www.offshorewind.biz/2016/06/21/dong-to-invest-gbp-5-4-billion-

in-east-irish-sea-wind-farms-by-2019/5. UsingStandardIndustrialClassifications(SIC2007)categories.6. ConsultationwithLCRemployers,May2018.SeealsoIPPR(2016)Low-

carbonskillsdevelopmentintheUK:theapproachofLiverpoolCityRegion.Available:https://www.ippr.org/files/publications/pdf/nsaw-case-study-aldridge-simons-feb2016.pdf

7. DTZ(2009)ImpactoftheGrowthintheGreenEconomyonFutureJobsandSkillsRequirementsintheLiverpoolCityRegionFinalReportforLiverpoolCityCouncilSeptember2009.DTZManchester.

8. RachelShorney,SPEnergyNetworks.Personalcommunication.9. CopiesofthesectoralreportsproducedbytheHouseofCommonsSelect

CommitteeonExitingtheEUcanbefoundathttps://www.parliament.uk/business/committees/committees-a-z/commons-select/exiting-the-european-union-committee/publications/

10.Wavehill(2017)LiverpoolCityRegionEmployerSkillsSurvey201711.UKCES(2010)StrategicSkillsNeedsintheLowCarbonEnergyGeneration

Sector.EvidenceReport16.UKCES.London.Pagexxiii.12.IPPR(2016)Low-carbonskillsdevelopmentintheUK:theapproachof

LiverpoolCityRegion.EuropeanCaseStudy.InstituteofPublicPolicyResearch.London.

13.UKCES(2015)SkillsandPerformanceChallengesintheEnergySector.UKCES.London.

14.UKCES(2010)StrategicSkillsNeedsintheLowCarbonEnergyGenerationSector.EvidenceReport16.UKCES.London.

15.ONSAnnualPopulationSurvey(workplace)UK,December2016–duetosamplesizedataunreliableataCityRegionlevel.

16.ONSAnnualPopulationSurvey(workplace)LiverpoolCityRegion,September2017



19.HMGovernment(2011)SkillsforaGreenEconomy.Available:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/32373/11-1315-skills-for-a-green-economy.pdf

20.Wavehill(2017)LiverpoolCityRegionEmployerSkillsSurvey201721.Skyblue(2015)TrustandCertaintyreportfortheSCIG.Available:https://www.

citb.co.uk/documents/news%20and%20events/trust-certainty-summary-report.pdf22.RoyalAcademyofEngineering(2016)TheUKSTEMEducationLandscape

–available:https://www.raeng.org.uk/publications/reports/uk-stem-education-landscapeAlsoseeUff,J.(2016)UKEngineering2016.Available:https://www.raeng.org.uk/publications/other/uk-engineering-2016

23.UKCES(2015)Sectorinsights:skillsandperformancechallengesintheenergysector.

24.NAO(2018)DeliveringSTEMskillsfortheeconomy.Available:https://www.nao.org.uk/wp-content/uploads/2018/01/Delivering-STEM-Science-technology-engineering-and-mathematics-skills-for-the-economy.pdf

25.EnergyandUtilitiesSkillsPartnership(2017)ManySkillsOneVision.Available:https://www.euskills.co.uk/wp-content/uploads/2017/11/Workforce-Renewal-and-Skills-Strategy-2020.pdf

26.NationalAuditOffice(2018)DeliveringSTEMskillsfortheeconomy.NAOLondon.Available:https://www.nao.org.uk/wp-content/uploads/2018/01/Delivering-STEM-Science-technology-engineering-and-mathematics-skills-for-the-economy.pdf

27.IbidNAO(2018)page29.28.EnergyandUtilitiesSkillsPartnership(2017)ManySkillsOneVision.Available:

https://www.euskills.co.uk/wp-content/uploads/2017/11/Workforce-Renewal-and-Skills-Strategy-2020.pdf

29.UKGovernmentInfrastructureandProjectsAuthority(2016)NationalInfrastructureDeliveryPlan2016–2021.Available:https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/520086/2904569_nidp_deliveryplan.pdf

30.Arup(n.d.)Distributedenergysystems–flexibleandefficientpowerforthenewenergyera.Available:https://www.arup.com/publications/research/section/distributed-energy-systems-flexible-and-efficient-power-for-the-new-energy-era

31.EnergyandUtilitiesSkillsPartnership(2017)ManySkillsOneVision.Available:https://www.euskills.co.uk/wp-content/uploads/2017/11/Workforce-Renewal-and-Skills-Strategy-2020.pdf

32.OxfordEconomics(2017)ForecastsforLiverpoolCityRegion33.Wavehill(2017)LiverpoolCityRegionEmployerSkillsSurvey201734.Source:https://www.offshorewind.biz/2016/06/21/dong-to-invest-gbp-5-4-billion-

in-east-irish-sea-wind-farms-by-2019/35.ReportedbyOWICtoSolentLEP.Available:https://solentlep.org.uk/

media/2150/owic-sector-deal-consultation-final.pdf36.RenewableUK(2017)OffshoreWindIndustryInvestmentintheUK.Available:

http://c.ymcdn.com/sites/www.renewableuk.com/resource/resmgr/publications/Offshore_Wind_Investment_V4.pdf

37.BEIS(2017)UKIndustrialStrategyhttps://www.gov.uk/government/topical-events/the-uks-industrial-strategy

38.BEIS(2017)TheCleanGrowthStrategy:LeadingtheWaytoaLowCarbonFuture.https://www.gov.uk/government/publications/clean-growth-strategy

39.Detailsavailable:https://services.parliament.uk/bills/2017-19/automatedandelectricvehicles.html

40.BEIS(2017)AutomotiveSectorDeal.https://www.gov.uk/government/publications/industrial-strategy-sector-deals/introduction-to-sector-deals#automotive-sector-deal

41.Source:SPEnergyNetworks–energystrategyworkshop6March201842.https://www.theguardian.com/business/2017/sep/07/jaguar-land-rover-electric-

hybrid-cars-2020 43.DepartmentforTransport(2015)Uptakeofultra-lowemissionvehiclesinthe

UK.https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/464763/uptake-of-ulev-uk.pdf

44.AutomotiveCouncilUK(2016)EmployersViewsifJobsandSkillsRequiredintheUKAutomotiveIndustry.https://www.automotiveip.co.uk/wp-content/uploads/sites/7/2016/02/UK-Automotive-Industry-Jobs-and-Skills-Report-2.pdf

45.FarmerReviewoftheUKConstructionLabourModel(2016)http://www.constructionleadershipcouncil.co.uk/wp-content/uploads/2016/10/Farmer-Review.pdf

46.CITB(2017)Faster,smarter,moreefficient:buildingskillsforoffsiteconstruction.https://www.citb.co.uk/documents/research/offsite_construction/offsite_construction_full_report_20170410.pdf

47.CentreforLowCarbonFutures(2012):Theretrofitchallenge:deliveringLowCarbonbuildings.https://www.leedsbeckett.ac.uk/as/cebe/projects/retrofit_challenge.pdf

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