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Charlotte Stonestreet
Managing Editor |
Strong engineering industry drives UK productivity
01 February 2016
Britain’s strong engineering industry is driving productivity, with benefits across the economy, according to new research published in Engineering UK 2016 The State of Engineering. Engineering is 68% more productive than the retail and wholesale sector, with apprentices making a significant contribution.
The report, produced by EngineeringUK to analyse the engineering industry’s capacity and capability for growth, shows that this resilient sector also has a positive impact on other areas of the economy. For every new job in engineering, two more are created outside of the sector and every £1 GVA generated in engineering generates £1.45 elsewhere. However, the gap between supply and demand for people with engineering skills is still large enough to trigger widespread concern for the long term future.
Over 27% of total UK GDP is generated by engineering, amounting to £445.6bn and turnover for engineering has grown by 3.4% to £1.21tn. Employment in engineering has grown to over 5.5 million and the industry now supports 14.5 million jobs overall.
Paul Jackson, Chief Executive of EngineeringUK, says: ‘Engineering is a growth industry that has the potential to continue to drive productivity in the UK. This is a great opportunity, tempered only by concern about the need to train many more engineering if we are not to be left behind by countries like South Korea and Germany’.
Nick Boles MP, Minister of State for Skills, says: "These shortages are compounded by insufficient numbers of young people, especially girls, choosing a career in engineering. I am convinced we will only overcome these challenges if all those with an interest in UK engineering commit to greater collaboration and partnership."
Chairman of Crossrail, Terry Morgan CBE says: ‘In the past ten years, engineering-related apprentices have generated £12bn for the UK economy. Having started my career as an apprentice and seen first-hand what apprenticeships can deliver, I’m delighted that their very significant contribution has been recognised. If we are to double the number of apprentices in engineering, more needs to be done to highlight the opportunities apprenticeships can offer young people.’
Through the Tomorrow’s Engineers programme the engineering community is working to inspire the next generation of engineers by helping young people from all backgrounds understand the variety, excitement and opportunities presented by a career in engineering.
On behalf of the engineering community EngineeringUK calls for collaborative action across government, engineering businesses, the education sector and the wider engineering community to realise these recommendations:
- A doubling of the number of young people studying GCSE physics as part of triple sciences
- A two-fold increase in the number of Advanced Apprenticeship achievements
- Either a doubling of the number of engineering graduates or a 50% increase in the number of engineering and technology and other related STEM as well as non-STEM graduates who are known to enter engineering companies
- Provision of careers inspiration for all 11-14 year olds
- Support for teachers and careers advisors delivering careers information.
The Engineering UK 2016 The State of Engineering (#EngUK16) report is available at www.engineeringuk.com/Research/Engineering-UK-Report-2016
Why do we need more engineers?
Between 2010 and 2020, engineering companies are projected to have 2.74 million job openings, of which, 1.86 million will be workers who are likely to need engineering skills.
As the numbers of 20 to 64-year-olds - the most economically-active sector of our population - gradually decline, we will need to expand our horizons in order to ensure that we have the pool of future engineering talent we need. To meet the demand for engineering skills and to remain a global economic competitor the UK is going to need more young people to take up engineering over the next five to ten years.
Through the annual Big Bang Fair, the Big Bang Near Me Fairs that happen around the country throughout the year and the Tomorrow’s Engineers programme, EngineeringUK is inspiring the next generation of young people - from all backgrounds - to become engineers or scientists. The Big Bang and Tomorrow’s Engineers are exciting, inclusive, enlightening and fun. They’re underpinned by accurate and engaging careers information and resources for young people, teachers and parents.
Key Points
EngineeringUK is a not for profit organisation, which works in partnership with the engineering community to promote the vital role of engineers and engineering to society.
The organisation's research demonstrates that public understanding and perception of engineering and engineers are rising. It is also clear that the engineering sector has a crucial role to play in delivering growth for the UK, in building capacity to compete in a rapidly growing global market and in shaping ability to cope with mounting pressure on the world’s resources.
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