Roots for Growth objective:

• Improve learning throughout the Cluster

Competitiveness of the forest industries is substantially influenced by productivity.  Annual growth rates of labour productivity (GDP per hour) have fallen in the UK from 3.0% in 1990-95 to 1.1% in 2000-2002.  GDP per hour worked is only 83% that of the USA in 2002 but it has improved somewhat over the past two decades from around 75% in the mid-1980s.  The productivity of the wood and paper industries is low by international comparison - it lies in the bottom five of the EU15 countries.

Likewise innovation is substantially influenced by workforce skills and motivation.  The UK forest industry is not known for its innovation.

Part of the problem lies in a low skills equilibrium in the UK.  Weak skills demand from employers feeds weak skills acquisition amongst the workforce.  Businesses experience difficulties in recruiting and retaining their workforce and the workforce lacks motivation to upgrade skills or to seek a career in the industry.  (This is not a problem restricted to the UK - it is recognised by EU also: see the article 'Attracting youth to a mature industry').

What needs to be done to change this situation to one in which high skill demand feeds high skills acquisition which in turn improves productivity?

According to the Sector Skills Development Agency (SDDA), there are five key elements to a skills development strategy:

• Engage Employers
• Define / Articulate Skill Needs
• Improve Responsiveness of Provision
• Raise Employer Commitment
• Policy Influence

What is being done towards a forest industries workforce development strategy?

Engage employers
Lantra, the Sector Skills Council (SSC) for the land-based industries has established a Trees and Timber Group which focuses on supporting the growing sector and some parts of the primary processing sector.  The UK Wood Chain Group / Treeline UK is engaging industry further down the supply chain from processing through to traders and merchants, converters, manufacturers and retailers.  Discussions are currently taking place with the SSDA as to the best means of recognising this group within the structure of SSCs.

Some employers may be waiting until the SSC situation is clarified before becoming more engaged in skills development and some are concerned about the appropriateness of the existing SSC arrangements in meeting industry’s needs.

Define/articulate skill needs
Quite a lot of work has been done in this area and there appears to be a broad consensus on the main headline issues, as well as some of the priorities for action, for example on supply side issues such as new qualifications.

• An early piece of work undertaken by the Cluster was a survey of training provision across the industry which is summarised in Training skills review summary (Nov 2002).
• This work has been amplified by Lantra Trees and Timber Group to scope the training and skill needs of the industry.  This is published as the industry specific Action Plan for Trees and Timber.
• The UK Wood Chain Group / Treeline UK has surveyed employers and published Meeting our needs.
• The UK Wood Chain Group submitted a proposal to create a framework of qualification for the UK's wood industry by 2007 (see Summary, 6 January 2005).  This follows on from work undertaken in recent years by Treeline UK in Wales (see Summary of Development, December 2004).

Improve responsiveness of provision
A great deal of new provision has been created and is on offer to those seeking to gain or upgrade skills.  It is hard to avoid the conclusion that supply side issues are not the main problem.  In addition to the huge variety of generic courses which are available and relevant to the needs of the industry, there has been a lot of activity to augment this with additional customised training specifically for the forest industries:

• Scottish Enterprise has contracted with the Forestry Contracting Association to provide a range of business skills to small-scale entrepreneurs.  This programme, jointly funded by the European Social Fund, has been up-skilling around 200+ people annually.
• Scottish Enterprise has given support to Barony College for Forestry Skill Training.  Again supported by the European Social Fund these courses have helped to up-skill around 200+ annually to the level of National Proficiency Tests Council (NPTC) award. 
• Scottish Enterprise has provided support to the UK Timber Frame Association for the development and implementation of on-site training skills.  New financial support has recently been agreed for off-site skills through the Construction Skills Action Plan.  Both programmes have EC support.
• The Centre for Timber Engineering (CTE) at Napier University offers: a BSc in Civil and Timber Engineering; and MSc courses in Timber Engineering, and Timber Industry Management.
• CTE is also developing a £650,000 programme of flexible training in timber engineering via online modular education, with a versatile library of online teaching materials.
• The Institute of Wood Science has further developed the Foundation Course and is now offering three IWSc Certificate Courses (technology, resource and end uses) which are now available for distance learning.
• Training and skills course offerings have been augmented by the Knowledge Transfer Partnership programme (KTP) run by CTE, which is supported by industry and government funding.  Already there are five KTPs underway with individual research associates working in partnership with industry businesses to examine issues of specific relevance to their own business operations. 
• Lantra is working in collaboration with the Forestry Commission to investigate recruitment and the issue of an ageing contractor base within the forest industry.
• In consultation with members of the forest industries, Lantra has been developing a new Trees and Timber Level 2 Apprenticeship.  This will provide a structured programme of learning but with flexibility so that it can be tailored to the individuals’ and employers’ requirements. Trees and Timber Modern Apprenticeship framework document (Scotland).
• Scottish Enterprise commissioned the development and running of two specially tailored training events in south Scotland and Grampian in business development skills, as a pilot scheme. 

Raise employers' commitment
Skills and business strategy:  It is fair to say that employer commitment is patchy.  Some companies (often the leading businesses) have a huge commitment to training and skills and this is often evidenced by the attainment of Investors in People (IIP).  Others rely on the market to provide the skills they need – and are often disappointed. 

Investment in skills is not always aligned well to business needs and a strategic approach to work force development is needed.  This alignment of skill and business needs will help productivity and the utilisation of skills. 

Skills utilisation: There are a number of relevant business support programmes that can help here (such as IIP and Modern Apprenticeships), but the key is to stimulate the demand and commitment at managerial level.  Business efficiency tools such as 'lean management', Six sigma, Kaisen and quality circles can facilitate the utilisation of skills.

Policy commitment
Engage government: The forest industries are now engaging government more effectively with the advent of ConFor and the Cross Party Group of MSPs on Sustainable Forestry and Forest Products.  

Many forest industry training issues exist not only for private industry but also for the Forestry Commission and the government.  Thus there are opportunities for close collaboration between industry and the government (for example, in action regarding the shortage of certain contractor skills as mentioned above).   In engaging government it will become increasingly important for the industry to be seen to be engaging with the Sector Skills Councils.

Engage agencies: There is a willingness amongst government and its agencies to support industry-led initiatives.  A meeting in November 2004, 'Towards a more cohesive approach to training and skill provision in the forest industries', was well attended by the main agencies.  There is a frustration amongst many within these agencies that industry presents no unified face and is hard to deal with as a collection of individual enterprises.

What else needs to be done?

It can be seen from the above points that a good deal is already happening toward delivering the elements of the strategy.  However, it is unlikely that this will be sufficient to create the step change that is needed to tackle the issues of low productivity, competitiveness and innovation.

What now seems to be required is a more concentrated effort to create a culture of life-long learning within the forest industries.  This can only come from within the industries themselves.

The focus for this effort needs to be on: 

(a) Workforce development: within companies, to stimulate a real demand for skills and career development amongst the entire workforce at all levels.  This needs to be led by management – and the ultimate driver is profitability. A best practice club could do much to provide the leadership needed to create a change of culture.  The link between training and productivity needs to be demonstrable.   Business improvement techniques, such as 'lean management', Kaisen, and quality circles, are excellent ways of setting the agenda.  Scottish Enterprise would be keen to work with companies wishing to push forward on business efficiency (see SE lean management presentation) by:

• helping to set the strategic context
• facilitating business efficiency programmes
• benchmarking performance
• identifying skills gaps
• embedding change management processes 

The way forward

It is easy for actions in the skill and training arena to be fragmented and to lack impact as a result.  Far better would it be to draw together a coordinated programme of activity in which clarity of focus could produce tangible and demonstrable results.

The Cluster Leadership Group has established a Forum on Workforce Development. 

For further information, please contact: Jean Finlayson, Cluster Co-ordinator, ConFor; T: 0131 524 8087; E: scotcluster (at) confor.org.uk.

CONFERENCE 2006

Workforce Development:  the key to improved productivity