Generating high value is the cornerstone of successful UK manufacturing for the 21st century. In order to achieve high value, manufacturers need many things: to invest in new technology; to innovate in terms of both products and processes; effective business support; and most importantly, a highly skilled workforce.

Skills, particularly Stem (science, technology, engineering and mathematics) skills, are essential to manufacturing. Skill levels affect productivity, the success of innovation, and they allow employees to be flexible in a job market that demands adaptability.

The extent of the skills crisis in the UK is unclear, with different reports interpreting statistics in different ways. However, what is clear is a growing mismatch between the demand and supply sides of the equation.

The demand for science graduates and Stem skills is increasing, while trends point to fewer students taking science subjects.

The message from industry is that there is an urgent need for more high-quality science graduates, with both specialist and generic employability skills. Many employers are dissatisfied with the skill levels of potential recruits, including basic literacy and numeracy standards. Some multinational manufacturers in the UK make a policy of recruiting overseas as a result.

The journey towards high value manufacturing will place even greater emphasis on skill levels. A modern and successful manufacturing sector is based on adopting best practice, exploiting the latest technology, and undertaking the research and development necessary for product innovation – all of which require highly skilled personnel. In a survey by the Engineering Employers’ Federation, only around five per cent of respondents expected skills needs to remain unchanged in the next three years.

On the supply side, the number of people with degrees in science, engineering and technology subjects has increased since 1997, but this is largely due to growth in computer sciences, biology and subjects allied to medicine. The number of students in engineering and technology and physical sciences is in decline.

Science graduates are only part of the picture. Apprenticeships play a key role in providing industry with a steady supply of young people with the right skills mix.

However, some industries struggle to find apprentices of a sufficiently high calibre with appropriate skills and completion rates are relatively low in the UK compared to other European countries. This is disappointing for the host company, and a waste of resources.
We are seeing discouraging trends at A-level too. Fewer students are taking science subjects at A-level, particularly physics and chemistry, while biology has suffered less. A survey conducted by Siemens suggests that this drop is in part due to the perceived difficulty of science subjects. In choosing A-level courses, the level of difficulty in achieving top grades is an important factor for 65 per cent of students, and 70 per cent believe that it is harder to achieve an A-grade in science-related subjects. At a time where competition for university places is at an all-time high, we cannot blame students for taking the safe option.

The best way of rectifying these problems is by providing students with better advice and guidance. There is evidence that careers advice does not paint an accurate picture of the range of options for students. The vast majority of students are advised to remain in full-time education and study A-levels; and a 2004 survey found that 83 per cent of students were given little or no information on apprenticeships.

Where careers advice is lacking, students turn to the media for ideas and guidance. Perceptions of manufacturing careers are unduly tarnished, especially in light of recent high-profile factory closures and job losses. But there are many success stories as well, and students need careers advice that accurately reflects the attractive opportunities within industry and dispels negative stereotypes.

A number of worthy initiatives aim to raise the profile of science subjects and careers to young people. ‘Shape the future’, run by the Royal Academy of Engineering, is targeted at young people, and campaigns to raise awareness of engineering and technology as a career option. It is vital that through these schemes, we connect with young people and emphasise the relevance of engineering to modern life.

There remains real concern over the quality of the teaching of science and mathematics at GCSE and A-level. Anecdotal evidence suggests that the knowledge of undergraduates with Stem A-levels is insufficient to meet the requirements of first-year engineering degrees. A good supply of quality teachers is crucial to attract more students onto Stem courses, and to ensure that those students are well prepared for the next level.

However, the vacancy rate for science and maths teachers is consistently higher than the average, and the proportion of physical science teachers with relevant qualifications is extraordinarily low. Efforts to recruit and train new teachers have delivered some improvement, but there is still a long way to go.

While there may be debate on the severity of the problem now, the trends at A-level certainly point to a potential Stem-skills crisis in the future. This will come at a time when the UK will be competing with countries like China and India on high skill levels, not on low price, following huge investment in their science infrastructure and research base. If we wait until then to act, it will be too late.