Addressing the Low Carbon Skills Challenge (16.03.11)

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Addressing the Low Carbon Skills Challenge
(16.03.11)

• Phil Ford Skills Strategy Manager

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The prospects for construction in Scotland

• According to latest ONS data construction output
  in Scotland in the first half of 2010 was 11 up
  on the previous half year and 8 above the same
  period of 2009 in current prices
• The strongest sectors in the first half of 2010
  were infrastructure, public non-residential and
  industrial construction, the last albeit from a
  very low base
• New orders were also stronger in the first half
  of the year than they have been for a while up
  by 23 compared with the previous half year and
  10 compared with the first half of 2009
• Other evidence on the strength of construction in
  Scotland is more mixed. The Experian monthly
  survey of activity shows an index of under 50 for
  March to July, indicating falling activity,
  although it did go over 50 for August and
  September. The FMBs activity balance for
  Scotland has remained negative throughout 2010 so
  far

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Output in Scotland
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Long term trends in Scottish construction
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Employment forecasts for Scotland
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Annual recruitment requirement for Scotland
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Regional/devolved nation comparisons output and
employment
Average annual output growth rate, , 2011-2015
Total employment growth rate, , 2011-2015
UK average
UK average
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• No one should underestimate the sheer scale of
  the opportunity the transition to a low carbon
  economy will offer the construction industry. The
  requirement for low carbon construction is
  probably the biggest change management programme
  that the industry has faced since Victorian
  times."
• Government's chief construction adviser Paul
  Morrell March 2010

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Low Carbon Timeline - Scotland
Outcome
Policies/Drivers
Deadlines
Renewables Action Plan
31 energy generated from a renewable source
2011
12.5 CO2 reduction targets for UK
Kyoto Protocol Interim Targets
2012
50 waste recycled and composted. 14 waste used
for energy and 36 waste to landfill
2013
Zero Waste Plan
Fuel poverty to be eradicated as far as
possible Phased zero net carbon emissions - space
heating, hot water, lighting and ventilation by
2016-17
Fuel Poverty Zero Carbon
2016
42 reduction in CO2 emissions 80 renewable
generation 11 heat generated from renewable
sources 60 waste recycled and composted 25
waste used for energy and 15 waste to landfill
Climate Change Act Renewables AP Renewable Heat
AP Zero Waste Plan
2020
70 waste recycled and composted 25 waste used
for energy and 5 to landfill
2025
Zero Waste Plan
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Other Drivers for Change

• Policy/Regulation
• Energy Efficiency Action Plan
• Scottish Building Regulations
• Low Carbon Economic Strategy
• Sustainable Procurement Action Plan
• Green Deal
• Electricity/gas prices increasing North Sea
  Grid
• Feed in Tariffs/Renewable Heat Incentive
• Technology - Pace of change with new products and
  processes
• Social/community considerations in new
  developments

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Impact on Skills

• 5 Broad Areas of Focus
• Microgeneration solar, PV, wind, biomass, heat
  pumps
• Macro generation hydro, wave, tidal, wind
• Energy Efficiency retrofit/building fabric
• Innovative Methods of Construction offsite
  manufacture, new technologies/materials, lean
  construction etc)
• Waste
• Areas of skills impact
• Qualifications (Modern Apprenticeships, SVQs etc)
  and multi-skilling
• Accreditation Schemes and recognition of
  competence
• Flexible delivery models

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Key Questions

• What is the current and future demand for low
  carbon skills, training and qualifications?
• What is the current and future required capacity
  within the supply side to deliver these low
  carbon skills?
• What actions need to be taken in the short,
  medium and long term to balance the demand and
  supply equation?

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Measures and Installers who does what?
Measure Trade
Cavity Wall Insulation Insulation Installers
Loft Insulation Insulation Installers
Solid Wall Insulation (internal or external) Insulation Installers
Fuel switching and heating controls Electrical trades and installation
Glazing Glaziers
Boiler Upgrade Plumbing, Heating and Air conditioning trades
Solar Water Heating Plumbing, Heating and Air conditioning trades
Biomass Boilers Plumbing, Heating and Air conditioning trades
Air Source Heat Pump Plumbing, Heating and Air conditioning trades
Ground Source Heat Pump Plumbing, Heating and Air conditioning trades
Micro wind and micro hydro Electrical trades and installation
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Potential Number of Homes benefiting from various
measures
Measure Realistic Potential (no. of homes - '000)
Cavity Wall Insulation 625
Loft Insulation 1,550
Solid Wall Insulation (internal or external) 460
Short-term Upgrade 2,235
Glazing 500
Boiler Upgrade 1,588
Solar Water Heating 1,870
Biomass Boilers 200
Air Source Heat Pump 290
Ground Source Heat Pump 30
Reduced Energy Behaviour 2,585
Source Consultation on the energy efficiency
action plan for Scotland, October 2009
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Total number of FTE equivalent jobs estimated to
be linked to energy efficiency and micro
generation measures in Scotland, 2010-2020
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Potential Training Demand for Solid Wall
Insulation 2010 2020
Source ConstructionSkills
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Impact on Qualifications
UK Contractors Group
Large regional Bldg contractors
Civil Engineering Contractors
Industry Activity
Big SMEs and RM
Specialist Contractors
Fusion
Offsite Activity
Modern Methods 2000-2008
Built Heritage Pre 1919
Traditional Construction 1920 - 2000
Qualifications
New credit system to meet changing needs
ConstructionSkills and Partner SSCs
Apprentices
Existing qualifications expanded to address
carbon agenda
Refurb / Insulator quals
Training and quals

Manufacturers
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Qualifications

• Construction Industry

Housing
Commercial Blg
Public Blg
Civil Eng
Energy
New build
R M
Offices, Hotels, Supermarkets
Education, NHS, Defence, MOJ
Road, Rail, Water etc
Wind, wave, Nuclear, Groundsource etc
Pre 1919
New
Refurb
New
Refurb
Social
Speculative
1920
Craft, management and professional occupations
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Training/qualification framework in home building
sector for a volume housebuilder

• Construction Industry

Productivity
Climate Change
Waste
Energy
Housing

• WRAP
• Recycling
• Waste Minimisation
• Waste management Plan
• People waste

• Mitigation
• Adaptation

• Usage and minimisation of
• Carbon
• Water
• Energy

• Offsite activity and type
• Lean Manufacturing
• Robotics

New build
Existing Stock
Social
Speculative

• Building Regulations
• Flooding
• Renewable energies
• Air tightness
• Cold Bridging

• Building Regs Part J
• Retrofit renewables
• Insulation
• Condensation

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Registration/Accreditation

• Certification of Construction Electrical
  Installations Drainage, Plumbing and Heating
  work.
• Microgeneration Certification Scheme (MCS)
  operates to support the installation of a range
  of microgeneration technology, which is now
  linked to the Feed-In Tariff. To be eligible for
  the FIT an installation must be carried out by an
  MCS accredited installer.
• Energy Assessors have to by certified by an
  approved organisation, which is an institute who
  have signed an agreement with Scottish Ministers.
  
• Competence cards there are a number of card
  schemes that operate across the construction
  industry such as CSCS/SCORE etc

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Meeting the Challenge

• Consistent methodology to determine demand and
  supply
• Qualifications and MA reform (new and existing)
• Promotion of Career pathways across the Built
  Environment
• Clarity over routes to competence and
  accreditation schemes
• Training the Trainers
• Flexibility of funding and training delivery

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Questions?