Lancaster University Management School - 54 Degrees Issue 14

World leaders assembled in Glasgow in the autumn for the Conference of the Parties 26 (COP26), aiming to forge a global consensus and plan of action to combat climate change. The UK Government has set out its own target: to drive a significant reduction in overall emissions and offset those that remain to achieve a net effect of zero emissions by 2050. Lancashire is a place of strategic significance for net zero 2050. It is host to a range of infrastructure that supports clean energy, including offshore wind and nuclear energy. But organisations will need well-skilled labour if they are to maximise the opportunities presented by the county’s cluster of clean growth industries. SIGNIFICANT SKILLS GAPS Net zero 2050 will have seismic implications for the labour market. A large majority of jobs, to a greater or lesser extent, will evolve as employers align their activity with net-zero ambitions, while new green jobs will be created as employers move away from carbon-intensive activities, putting some workers at risk. Work Foundation research conducted in partnershipwith the Lancashire Enterprise Partnership explored the skills needs of Lancashire businesses at the forefront of net- zero activity. Our research included an online survey of low-carbon businesses in Lancashire, further in-depth interviews with survey respondents, and roundtable discussions with key sector stakeholders. The key findings included: • 47%of businesses surveyed find it difficult to recruit staff with the skills they need • Almost a third find it hard to recruit for specialist skills • Skilled trades roles are difficult to source Businesses reported difficulty in recruiting for a range of specialist skills including: advanced engineering, digital technology and the digitalisation of manufacturing. It is perhaps unsurprising that companies engaged in the delivery of advanced technologies require specialist skills. This points to a need for recruitment activity to branch out to potential candidates across a broad range of sectors host to workers with such specialist skills – especially those expected to decline through the transition to net zero. However, more generalist skilled trade roles are also challenging recruitment propositions for Lancashire businesses. Construction and manufacturing are pivotal for the transition. The construction industry will need to rapidly ramp up activity to retrofit and insulate housing, but Lancashire construction firms reported concerns they may struggle to recruit the required staff needed. A company involved in retrofitting social housing reported that attracting young people into the industry is a real challenge. They have established an apprenticeship scheme for skilled trades such as plumbing, roofing and plastering, but are concerned they won’t be able to fill the 40 positions available. There is a need to demonstrate the career pathways available within low-carbon businesses to attract young people weighing up their initial steps into the world of work. SKILLS GAPS CONSTRAIN GROWTH PLANS Our survey found that skills shortages are causing wider challenges for lowcarbon businesses, including: an increased workload for other staff; delays in developing new products or services; and increased operating costs. There is a real risk that skills gaps will limit activity that can secure a net-zero future for Lancashire. We found that low-carbon businesses are investing time and resource in internal training programmes to meet demand for skills This may suggest the training available locally isn’t meeting their needs. Of the 81%of businesses who are delivering their own training, the most common reason for doing so was to obtain skills not available through external provision. To some extent this is expected; some low-carbon businesses have highly niche and technical skills requirements. For example, a specialist onshore wind company that participated in the research reported that the sector is quite fragmented, which can cause additional challenges in recruiting for highly specialist skills. Wind energy production involves various subsectors, from small-scale onshore wind to large-scale and commercial offshore wind, which require different skill sets. Furthermore, each model of wind turbine is different, so the business requires highly-specialised in-house training according to the range of models used. This is time-consuming and expensive, as staff typically work off-site. This degree of specialism points to a necessity for the skills needs of low-carbon businesses to be amplified within local skills systems, among stakeholders, to ensure they are incorporated within provision. Government is reforming the skills system to give employers a more central role in the provision of technical education, as recentWork Foundation research explored. It is vital for lowcarbon businesses to play a prominent role within emergent consultative processes within this reform agenda. Sector bodies, who enjoy close links with employers, will have an important role to play within this agenda. 36 |

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