Skills Crisis!! – Move On! Automotive Industry Delivering Solutions

26th February 2015

Jo Lopes CEng FIET FIMechE

Head of Technical Excellence

Chair Automotive Industrial Partnership

What to Expect…

1. UK Automotive Industry Growth

2. Technological Complexity

3. Skills Crisis?

4. Working Across Sectors

5. A Single Company’s Approach

6. Automotive Sector Approach

7. Wrap-Up

UK Automotive Growth and the Technological Challenge

£64bn turnover

£12bn value added

UK Automotive Sector Diverse and Important

+770,000 jobs

dependent on

automotive

+140,000 in

manufacturing

Industry annually invests

in R&D

1.5 million cars annually

2.4 million

engines

Source: SMMT

New Car Registrations UK and EU

Strong domestic market with a robust forecast

Source: SMMT registration data

10.0

11.0

12.0

13.0

14.0

15.0

16.0

17.0

1.8

1.9

2.0

2.1

2.2

2.3

2.4

2.5

2.6

EU

27 n

ew

car

reg

istr

ati

on

s /

millio

ns

UK

new

car

reg

istr

ati

on

s /

millio

ns

UK (left-hand axis) UK forecast EU27 (right hand axis)

UK Automotive Manufacturing Growing steadily

Source: SMMT

UK Exports Market Diversity

Source: SMMT

UK automotive supply chain Potential for Further Growth

Source: SMMT

In the presence of essential complexity,

establishing simplicity in one part of a system

requires trading off complexity in another

Creating the illusion of simplicity Need for simplifying complex systems

Automotive system complexity Why?

Customer demands for greater overall vehicle

performance and comfort

Growing need for CO2 / NOx / Particulate reduction

Growing complexity of the powertrains

Reliability and quality

Fuel economy

Luxury vehicles can contain up to 100 Electronic

Control Units

Availability of more memory and microprocessor speed have provided the design engineers

with greater flexibility, but also has driven greater complexity.

Software Complexity Scale

Taken from LinkedIn post in June 2014 by Andrea Busnelli here: http://www.linkedin.com/today/post/article/20140626152045-3625632-car-software-100m-lines-of-code-and-counting?trk=mp-details-rr-rmpost

Build

the s

pecifie

d s

yste

m

Define Attributes, Strategy, Propose Research Identify

Programmes

Development of Customer Handbook

Functionality

Development of Logical Functionality

(Function without Form)

Definition of Physical Systems

and their Component Interfaces

.Design Of Components

Verify Designed Component Interfaces to

Physical Systems

Verify Functional Behaviour

Validate Voice Of Customer is Achievable

Validate Project Design

Build Of Components

Verification Of Built Interfaces for

Components to Physical Systems

Verification of Built and Integrated

System Behaviour

.Verification of Project

Functionality

Validate Project For Use

Commit to

Programme Product

Completion

Business

Context

Customer

Concept

Physical

Systems

Logical

Systems

Component

Detail

Adapting a Systems Engineering Approach Growing Development Costs, Time, Risk,…

Skills to Deliver Growth A Crisis? or a Problem?

Crisis or Problem?

Source: Engineering UK 2015 The State of Engineering

Crisis or Problem?

Source: Engineering UK 2015 The State of Engineering

Source: Engineering UK 2014: The State of Engineering

Source: Engineering UK 2015 The State of Engineering

Crisis or Problem?

Source: Engineering UK 2014: The State of Engineering

Source: Professor John Perkins’ Review of Engineering Skills 2014

Source: Engineering UK 2014: The State of Engineering

Source: Engineering UK 2015 The State of Engineering

Crisis or Problem?

Source: Professor John Perkins’ Review of Engineering Skills 2014

Source: UKRC's Analysis of the European Labour Force Survey (2007)

Female Engineers

Source: Engineering UK 2014: The State of Engineering

Source: Engineering UK 2015 The State of Engineering

Crisis or Problem?

Source: Professor John Perkins’ Review of Engineering Skills 2014

Source: UKRC's Analysis of the European Labour Force Survey (2007)

Female Engineers

Source: Engineering UK 2014: The State of Engineering

Source: Engineering UK 2015 The State of Engineering

Crisis or Problem?

Source: Professor John Perkins’ Review of Engineering Skills 2014

Source: UKRC's Analysis of the European Labour Force Survey (2007)

Female Engineers

Crisis or Problem?

Critically, the automotive

and aerospace supply

chain, which is far bigger

than our requirement, will

need to draw on the same

small pool.

Source: Engineering UK 2014: The State of Engineering

Crisis or Problem?

Critically, the automotive

and aerospace supply

chain, which is far bigger

than our requirement, will

need to draw on the same

small pool.

Source: Engineering UK 2014: The State of Engineering

Crisis or Problem?

Critically, the automotive

and aerospace supply

chain, which is far bigger

than our requirement, will

need to draw on the same

small pool.

Source: Engineering UK 2014: The State of Engineering

Discussing the UK skills shortage,

CBI’s DG John Cridland described the situation as;

“A car crash in slow motion”

Crisis or Problem?

Critically, the automotive

and aerospace supply

chain, which is far bigger

than our requirement, will

need to draw on the same

small pool.

Source: Engineering UK 2014: The State of Engineering

Discussing the UK skills shortage,

CBI’s DG John Cridland described the situation as;

“A car crash in slow motion”

“The single biggest strategic challenge for advanced manufacturing

in the UK is the availability of skilled people, at both technician

(Advanced Apprentice) and degree level.”

The Wright Review of Advanced Manufacturing

in the UK and it’s Supply Chain - 2014

Crisis or Problem?

Critically, the automotive

and aerospace supply

chain, which is far bigger

than our requirement, will

need to draw on the same

small pool.

Source: Engineering UK 2014: The State of Engineering

Discussing the UK skills shortage,

CBI’s DG John Cridland described the situation as;

“A car crash in slow motion”

“The single biggest strategic challenge for advanced manufacturing

in the UK is the availability of skilled people, at both technician

(Advanced Apprentice) and degree level.”

The Wright Review of Advanced Manufacturing

in the UK and it’s Supply Chain - 2014

Cross Sectorial Cooperation Seeking Simplify

Complexity in Interactions !!!!

Meeting the Challenge to Simplify

28

• Government and Industry need to work together to address the image of manufacturing and engineering

“Perkins Review”

• Industry must take responsibility to be even more proactive and to channel resources in to streamlining this

complex state – The Royal Academy of Engineering’s engineering skills project: “marketing the dream”

• We in industry have a responsibility to explain and 'sell' the work

we do more proactively

• Governments have a responsibility to use the levers at their

disposal to support and promote the shortage of Engineers and

Technicians

Jaguar Land Rover A Single Company’s Actions

The STEM Journey Jaguar Land Rover Schools Engagement

Education Business Partnership Centres

Jaguar Primary 2D Challenge

Maths in Motion

Land Rover 4x4 in Schools Technology Challenge

Work Experience

2D CAD design and make challenge.

Employee Volunteering Programme

This activity involves a wide range of basic mathematical skills to compete in a Grand Prix type race

Teams are challenged to design & build a radio controlled 4-wheel-drive (4x4) vehicle, to

set specifications, that can successfully negotiate a series of obstacles and tasks.

Key Stage 1

(Age 4-7)

Key Stage 2

(Age 7-11)

Key Stage 3

(Age 11-14)

Key Stage 4

(Age 14-16)

Post 16

(Uni/UTC’s)

JLR STEM Ambassador, EBPC support, Formula Student, Greenpower, Smallpeice

Academies / Specialist Schools

Organised work experience programme across all JLR sites.

1 Academy / specialist school in each area of JLR

operations.

Jaguar 3D/GT Challenge 3D CADCAM design, make and race challenge following key

engineering principles.

A

P

P

R

E

N

T

I

C

E

/

G

R

A

D

U

A

T

E

Industrial Cadets Accreditation through JLR educational challenges towards Industrial Cadetship

5 Centres across JLR, offering learning modules in support of National Curriculum criteria,

2013 – 22,000 pupils plus 2,000 teachers through these centres

JLR Action on Lack of Engineers

• JLR actively supports schools, universities and colleges via direct intervention and

collaboration with bodies such as SEMTA, CBI, EngineeringUK, New Engineering

Foundation, RAE, IET, IMechE & other Professional Institutions etc

• Inspiring Tomorrow’s Workforce is a new traineeship programme which will engage

NEETs aged 16-24 who are interested in STEM careers.

• Lead sponsor of the Queen Elizabeth prize

16-18(College/A-Levels)

18-22(University U'Grad)

Advanced Apprenticeship Business Placements

School Activities/Promotion Campus Activities/Promotion

The Engineering Network for Women

22+(Granduate)

Graduate Hiring

Qualifications & AccreditiationHigher Apprenticeship

Work with Sector Skills Council & National Bodies

4yr Eng'g based qualification.Roles primerily support MFG & PD

Learn & Qualify in Eng'g skills whilst you earn(JLR funded)

3/6/12 Month Placements across the Business -c.90 in PD/MFG

Allows opportunity to suppliment academic learning with real Eng'g experience

Normally hire 300 graduates into the business each year. 75% will be Engineers into PD/MFG

Apprentices often go out to local schools on request to promote apprenticeships as a career

to those at school considering their options

Graduates around the business attend University recruitment events. Presentations and other activities in order to promote the industryand business, ranging from recent graduates to Senior Managers. Support efforts to encourage

females into STEM

JLR works closeley with and in collaboration with bodies to promote apprenticeships and lead developments (e.g. Higher Apprenticeships within the sector)

Numerous networking events are held at University campuses around the Uk and provide opportunities for female engineering undergraduates to meet female Engineeers from within the business - ranging from recent graduates to Senior Managers. Supports efforts to encourage females into STEM

6 year Eng'g based qualification. Outcome is a BEng Applied Eng'g degree from the University of Wariwck. Learn & qualify in Eng'g skills whilst you earn (JLR funded)

Eng'g graduates supported and encouraged to attain Chartered Eng'g status.

On-going professional Eng'g development (e.g. Technical Accreditiation Scheme to allow

Eng'ers to gain a further modular MSC)Inspiring Tomorrow's Workforce/Traineeship Programme

Inspiring Tomorrow’s Workforce is a new traineeship programme which will engage NEETs (Not in Employment, Education or Training) aged 16-24 who are interested in STEM careers, including those

who had previously failed to secure JLR apprenticeships.

• Young Women in the Know 4 day Engineering

Experience

• Range Rover Evoque WISE Scholarship

• Undergraduate Sponsored Placements for

Electrical Engineers and Women in to

Engineering

University Technology Collage Model Opened September 2014

Industry Involvement:

Jaguar Land Rover

National Grid

Dassault Systemes

Bosch

Tata Motors

Prodrive

Squires Gears

SCC

Automotive Insulations

Support from IET & IMechE

Street Section

WMG Academy for Young Engineers

At full capacity – 640

Identifying Future Skills National Automotive Innovation Centre (NAIC)

• Collaboration, Innovation, Research

& Education

• Alongside the WMG Academy for

Young Engineers

• Education Hub open to schools and

students to work on real life problems,

vehicles and components

Identifying Future Skills National Automotive Innovation Centre (NAIC)

Best Courses from the Best Sources

TAS Inspired

First Degree Modular Engineering programme scalable for JLR and

Advanced Manufacturing Industry

Masters Modular Degree to support

the Advance Manufacturing Industry

Automotive Industry Collaboration Industrial Councils

Automotive Council Development and Structure

2009 2013

Technology

Group

Supply Chain

Group

Business

Environment

and Skills

Group

2014 onwards

Development Publication Delivery

Comprehensive Membership

Linking to Future Powertrain Skills

Supporting commercialisation of

research across “Valley of Death”

(TRL levels 5/6-7/8)

£1bn commitment over 10 years

30k jobs secured and more created

in new supply chains

APC signatories

Industrial Sector Strategies Industrial Partnerships on Skills

Life Science

Strategy (Dec 2011) and one year on

update (Dec 2012)

Aim: To make the UK the global hub for

life sciences

Nuclear (March 2013)

Aim: Grow the global market

share; set out role that nuclear

plays in UK energy mix

Agri-tech

(July 2013) Aim: increase inward

investment and exports

Education

(July 2013) Aim: Increase

the UK's education exports

Information Economy

(June 2013) Aim: to seize

the opportunities from new

ICT technology

Offshore wind

(August 2013) Aim: Build

competitive and innovative UK

supply chain

Oil and Gas (March 2013)

Aim: Increase inward investment in

energy supply chain

Construction

(July 21013) Aim: make the UK the

global leader in sustainable

construction

Professional Business

Services

(July 2013) Aim: make

the UK the global hub of

expertise

Automotive (July 2013)

Aim: Investment in R&D; grow

and develop UK Supply Chain

and grow the right skills

Aerospace (March 2013)

Aim: Maintain existing UK market

share; secure UK employment

Aerospace

Airbus

Automotive

Jaguar Land Rover

Nuclear

Magnox Science

GlaxoSmithKline

Tech Partnership

Cisco

Energy & Efficiency

National Grid

Tunnelling & Underground

Construction

Crossrail

Creative Industries

Channel 4

Industrial Sector Strategies Industrial Partnerships on Skills

Life Science

Strategy (Dec 2011) and one year on

update (Dec 2012)

Aim: To make the UK the global hub for

life sciences

Nuclear (March 2013)

Aim: Grow the global market

share; set out role that nuclear

plays in UK energy mix

Agri-tech

(July 2013) Aim: increase inward

investment and exports

Education

(July 2013) Aim: Increase

the UK's education exports

Information Economy

(June 2013) Aim: to seize

the opportunities from new

ICT technology

Offshore wind

(August 2013) Aim: Build

competitive and innovative UK

supply chain

Oil and Gas (March 2013)

Aim: Increase inward investment in

energy supply chain

Construction

(July 21013) Aim: make the UK the

global leader in sustainable

construction

Professional Business

Services

(July 2013) Aim: make

the UK the global hub of

expertise

Automotive (July 2013)

Aim: Investment in R&D; grow

and develop UK Supply Chain

and grow the right skills

Aerospace (March 2013)

Aim: Maintain existing UK market

share; secure UK employment

Aerospace

Airbus

Automotive

Jaguar Land Rover

Nuclear

Magnox Science

GlaxoSmithKline

Tech Partnership

Cisco

Energy & Efficiency

National Grid

Tunnelling & Underground

Construction

Crossrail

Creative Industries

Channel 4

Investing £131m Government Funding to

£223m cash and in-kind contribution from Industry

Supported by c.600 companies from the participating sectors,

including 10 FTSE 100 companies

Employ over 5.5m people in 480,000 businesses across the UK.

Their combined value (GVA) to the UK economy is £256bn

The industry technology road map

The industry technology road map

Source: Automotive Council

UK Automotive Skills Roadmap

Automotive Industrial Strategy - Driving success – a strategy for growth and sustainability in the UK automotive sector

Ministerial Announcement and Launch

GOVERNMENT AND AUTOMOTIVE INDUSTRY START

THE MOTOR ON £30 MILLION SKILLS INVESTMENT

Business Secretary Vince Cable said:

“This investment puts our automotive sector in the driving

seat to design the skills our manufacturing companies need.

There is a risk that without adequate investment in skills, the

industry will run into serious skills bottlenecks.

“Through our industrial strategy we are working in partnership

with the automotive sector as it goes from strength to

strength. We are providing businesses with the confidence to

invest, and to create high skilled jobs.”

Official Launch Event on 12 March @ House of Lords

AIP – Partners

Automotive Investment

Organisation

The Industry’s Vision

To take responsibility for, and to transform, the end-to-end skills system for the sector, enabling automotive employers to attract and develop the current and future skilled workforce that we need in order to complete globally.

“ ”

Problem Solving Examples of the Outputs of the AIP

Consensus view of the

industry hot spots on

specific skills

Analysis of potential

new skills required

Career “route maps” for

the Automotive industry

to provide clarity and

visibility of career

progression in the Auto

Sector, from school

leaver to CEO.

Only when you understand

something you can simplify it

Industry Standard Job

Families and Frameworks

Apprenticeship Clearing House

for all levels in collaboration

with the Aerospace Industry

By 2020 the AIP will help deliver…

• 10,000 more apprentices recruited by OEMs and

SMEs

• 2,000 more graduates choosing the Automotive

sector for a career

• Up-skilled workforce to meet the production

challenges of tomorrow

• A collective, representative voice for the sector;

advising, informing and supporting the development

of UK skill policy

Conclusion and Wrap-Up No Silver Bullets

Summary

UK Automotive Industry is booming and vehicle

production is continuing to climb

Customer and Legislative demands are increasing

complexity and therefore a increase in specific skills

Availability of skills is a the single biggest strategic

challenge to sustaining growth

Collaboration externally is key to accelerate

skills development and recruitment as well as

driving simplicity in the skills system

Engineers key skill set is to solve problems…

or Crises…We now need to get on with it..

Thank you