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South West RDA invests £1.7m to retain the region's talent

03 July 2009

The South West RDA has approved a £1.7m investment to ensure highly skilled experts from a number of industries are not lost due to the recession. The investment will match talent to opportunity for the aerospace, advanced engineering and creative/digital industries. The Talent Retention programme will start in August.

The project is a specialist sector based redeployment service. It will increase the chances of highly skilled and talented people, who may be at risk of redundancy, finding alternative work or training. At the same time it will help to retain their skills and reduce the possibility of the region losing these key individuals.

This is filling a gap in the market, providing a tailored service, for specific industries that are of great economic importance to the South West. Approximately £76m is lost to the South West economy every year due to hard-to-fill vacancies. The National Business Trend Survey May 2009 from EEF, The Manufacturers Organisation, shows 55% of manufacturers were concerned about their ability to attract and retain skilled employees in preparation for the upturn.

The project seeks to pool talent in order to redeploy and retain skills and jobs across key economic sectors. It is a model for skills, talent and intellectual property retention within the South West. This will be achieved by engaging with employers, employees and other stakeholders. Support will be directed at the pre-redundancy stages of redeployment, compared to traditional redundancy support which can only be provided once redundancy is imminent, or has taken place.

Initially the project will run as two pilots, covering:

1. Advanced Engineering (aerospace and defence, automotive, machine tools, medical, marine and, original equipment manufacture) - delivered through the Engineering Employers Federation;

2. Creative and Digital Media (independent production, design and digital agencies and freelancers) - delivered through Bristol Media.

There will be three principal elements of activity:

 The identification of opportunities for talented individuals within the two sectors e.g. Jobs, business start up, teaching for those with appropriate Science, Technology, Engineering and Maths (STEM) related experience, skills and qualifications and, research;

 Redeployment and signposting services for individuals at risk of redundancy and,

 A web based system designed to provide a sector focused "rapid match" service between organisations with skills shortages and those with talent surpluses.

Both pilots seek to reduce the impact of the downturn and associated job losses and, strengthen the business offer of the region. They will also help businesses to respond to new opportunities during and after the recession. Whilst aimed at responding to the immediate crisis, it will also have a use as the recovery takes hold.

The Talent Retention Programme is scheduled to run until June 2012 and will support those at risk of redundancy within the targeted sectors who have critical sector specific skills and are operating at Level 3 or above (Advanced Apprenticeship, A Level or NVQ Level 3).

If the region fails to act swiftly, key areas of work or knowledge within the two specified sectors could be lost from the region and the sector, in many cases for good, hampering longer term economic recovery.

Industry figures show that 70% of individuals leaving the aerospace industry through redundancy following the events of 9/11 not only left their employer, but left the sector.

Suzanne Bond, the South West RDA's Executive Director, People and Skills, said: "This is a win-win-win situation for: the advanced engineering and creative/digital industries; for the South West; and for highly skilled people across the region. The scheme will minimise the risk of experts being lost from the industries and from the region.

"It will also help talented people who are at risk of redundancy, matching them to the opportunities that are available. This is exactly what the economy needs to deal with the recession and to take full advantage of the recovery once it comes."

"I am confident that we now have a robust and effective mechanism at our disposal which will be of great value in our preparation for economic recovery in the South West".

Terry Slater, Director and Chief Executive of EEF, The Manufacturers Organisation said: "Such a service is vital to the future success of manufacturing in the South West. By retaining the hard won skills that currently exist, its chances of being able to confidently respond to the economic upturn when it comes are greatly enhanced.

"To do nothing and allow those skills to leave the industry will create a workforce gap, the filling of which could take many years, the resulting blow being one from which many manufacturers in the south west may never recover"

Paul Appleby, Chairman of Bristol Media said: "Bristol Media CIC is delighted to be the key industry partner for the Creative Industries element of the South West RDA's Talent Retention Programme. Not only does it provide top-level backing for one of the key strategic aims of Bristol Media, it also recognizes the importance of the creative industries in the business mix of both Bristol and the whole South West.

"It's an exciting challenge, and comes as Bristol Media is aiming to increase its offer to the creative industry community, and formalize its position through a membership scheme. Projects like this provide us with the sustainability we need to grow, and thus provide the connections and ideas that stimulate the community."

Contact: Billy McKenna, 01392 229 567

Notes to editors:

1 The South West RDA leads the development of a sustainable economy, investing to unlock the region's business potential. It is helping companies respond to the economic crisis and charts a course for recovery. The RDA is developing or expanding initiatives which include: establishing a Business Loan Fund; coordinating the response to large companies in difficulty; preparing for economic recovery. More information can be found at www.southwestrda.org.uk.

2. Advanced Engineering: SEMTA (Sector Skills Council for Science, Engineering and Manufacturing Technologies) states that :

- The region is home to a significant proportion of the National Advanced Engineering talent 8% of employment and 9% of engineering establishments are situated in the SW; a workforce of 130,000 people (Semta)

- 42% of the workforce is aged 45 to 64 compared with 40% in all sectors in the south west and 38% nationally.(Semta)

- Only 8% are aged between 16 and 24 compared with 14% for all SW sectors.(Semta)

- Pre-recession employment projections between 2005 and 2014 see a loss of 12,000 jobs and an average growth rate of -1% (Semta)

- Replacement demand between 2005 and 2014 equates to 34,000 employees (3,800 per year) (Semta)

- Estimated recruitment requirements between 2005 and 2014 are 8,000 Level 3, 7,000 level 4 and 2,000 Level 5 or above (Semta)

- Advanced engineering (including Aerospace) accounts for nearly 12% of total GVA in the South West (£2.127bn in 2006) - Aerospace accounted for £712m (Regional Accounts)

- The average GVA per engineering employee is £50,000 (2005 figures) compared with £33,000 for all sectors. (Semta)

- Hard to fill vacancies cost the SW economy £76m in lost GVA and 68% of engineering establishments have hard to fill vacancies. (Semta)

3. Creative and digital media (taken from 2006 Regional Accounts and 'SW Creative Choices' Impact and footprint of the Creative and Cultural sector, from the Creative and Cultural Sector Skills Council website)

- 62,000 people are employed in the Creative, cultural and digital media sector, 35% of these are within design and visual arts. (Regional Accounts)

- 46 % of the workforce is under the age of 40 (SW Creative Choices)

- 14% between 25 and 29 (SW Creative Choices)

- 8% are aged between 16 and 24.(SW Creative Choices)

- 72% of the workforce are qualified at Level 3 or above (46% are above Level 4) (SW Creative Choices)

- Creative Industries sector accounts for £2.374bn of regional GVA (2006 Regional Accounts) accounting for 5.8% of UK GVA for the sector

- An average GVA per employee of £34,740 (May 2006 RDA Economic Review)

- Hard to fill vacancies cost the SW economy £76m in lost GVA and 68% of engineering establishments have hard to fill vacancies.

- 28% growth is expected across the region between 2007 and 2017(Warwick IER / Cambridge Econometrics, Projections of Employment Change, 2008)