The Skills Needs of Manufacturing in the North West 2019 - Skills Audit undertaken by the North West Regional Skills Forum in Collaboration with FIT
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The Skills Needs of
Manufacturing in the
North West 2019
Skills Audit undertaken by the
North West Regional Skills Forum
in Collaboration with FITSupported by Contents
A Joint Initiative p8
Manufacturing Internationally and Nationally p9
Manufacturing in the North West: A Profile p 11
Profile of the counties p 13
Donegal 13
Sligo 14
Letrim 15
Manufacturing Operations: The Context p 16
Advanced Manufacturing 16
The Challenge of Urban Scale 17
Traditional Manufacturing in the North West 19
Small Scale Manufacturing in Rural and Coastal Areas 19Contents
The Companies Interviewed: A Profile p 20 Cross-Sectoral and Transversal p 35
Skills Required
Manufacturing in the North West: Looking Forward 21
Business Acumen Training 37
4.0 Driving the Future of Industry 22
Recommendations p 29
Findings and Analysis p 24
The Demand for More Skills and/or Upskilling 25
Consulting with Manufacturing Employers: 29 The Education and Training p 42
Addressing Skill Needs
Providers in the Region
Issues in Addressing Skills Needs: An Investigation 30
MSLETB 43
Operators: An Ongoing Demand 30
Donegal Education & Training Board (ETB) 45
Transversal Skills: The Importance of Human Capabilities 31
IT Sligo 46
Strong Industry Endorsement for Dual-Education Initiatives 31
Letterkenny Institute of Technology (LYIT) 50
The Future of Work: Talent Retention in the North West 32
Food Technology Centre – St. Angela’s College, Sligo 52
Specific Skills Required by Discipline 33
General Trends in Relation to p 34
Manufacturing Skills DemandAnnex 1: The Disciplines p 54 Discipline 1: Electrical Skills 55 Discipline 2: Electronic Skills 56 Discipline 3: Mechanical Skills 57 Discipline 4: Workshop Skills 58 Discipline 5: Design skills 59 Discipline 6: Vacuum Systems 60 Discipline 7: Control Systems 61 Discipline 8: Networking/PC Maintenance 62 Discipline 9: Supply Chain Logistics 63 Discipline 10: Manufacturing Skills 64 Discipline 11: Programming Skills 65 Discipline 12: Big Data 66 Discipline 13: Project Management 67 Discipline 14: General Operative Skills 68 Discipline 15: Robotic Skills 69 Discipline 16: Quality Assurance Skills 70 Discipline 17: Professional Development 71 Discipline 18: Problem Solving Skills 72
A Joint Initiative This audit is a collaboration between Manufacturing The global manufacturing sector remains
the North West Regional Skills Forum Internationally
a critical force in both advanced and
and Nationally
(NWRSF) and FastTrack into Information developing economies. The sector is
Technology (FIT CLG). undergoing significant changes bringing
new opportunities and challenges to
business leaders and policymakers.
The North West Regional Skills Forum is The objective of this manufacturing audit Industry 4.0, the overarching name given The key enabler for the digital
one of nine Regional Skills Fora, which is to articulate and collate the talent to the next disruptive industrial revolution transformation of manufacturing is the
were established by Government as part requirement of manufacturing enterprises is driving much of the changes that are Industrial Internet of Things (IIoT) which
of its National Skills Strategy to provide in the North West region, inform local currently taking place in manufacturing. connects the traditional analogue based
an opportunity for employers and the education and training providers about the The Fourth Industrial Revolution (Industry automation infrastructure to the digital
education and training system to work skills needs of employers in the various 4.0) is quite different from the three world. This will change the manufacturing
together to meet the emerging skills needs manufacturing related sectors, influence Industrial Revolutions that preceded industry in a variety of ways. Some
within the region. The region’s Education curriculum development to better reflect it - steam and water power, electricity examples include:
and Training Boards (Donegal ETB and Mayo, the needs of local industry, and to offer and assembly lines, and computerisation
Sligo and Leitrim ETB) and Higher Education direction and insight to job seekers wishing - because it will even challenge our ideas —— Automated ordering of raw materials
Institutions (St. Angela’s College, IT Sligo to pursue careers in related sectors. about what it means to be human. All based not only on current demand levels,
and Letterkenny Institute of Technology) aspects of manufacturing organisations but predicted future demand.
along with employers and employer will be affected but it is particularly —— Improved product quality by linking
representative bodies and the Department evident in high-specification and highly customer feedback and real-time
of Employment Affairs and Social Protection regulated industries like pharmaceutical usage data to the product development
are represented on the North West Regional manufacturing and medical device process.
Skills Forum. A major objective of the manufacturing. This in turn will lead to —— Reducing factory downtime and product
North West Regional Skills Forum is to increased demands to upskill and reskill supply disruptions through predictive
determine the current and future needs of employees in new technologies machine maintenance, where machine
employers in relation to education, skills and processes. learning algorithms monitor machines to
and recruitment. This will further inform identify problems before a breakdown
local education and training providers when occurs and then plan maintenance at a
designing new programmes and reviewing time that will cause as little disruption to
existing programmes. supply as possible.
—— Allowing support engineers to be in the
FastTrack into Information Technology is a same room as a technician in another
not-for-profit, industry-led operation. Its factory in another country, helping
core mission is to promote an inclusive Smart them resolve an issue using virtual and
Economy by creating routes to marketable augmented reality.
technical skills for people at risk in Ireland’s —— Production processes that don’t require
labour market. It has pioneered its own a mass manufacturing approach to
methodology for working with employers to remain profitable but can, instead, run
understand their skills needs through the efficiently in small production runs –
granular analysis of the skills, knowledge theoretically, down to production runs
and competencies required. Working in of one.
collaboration with QQI, SOLAS, ETBI/
ETBS and other awarding bodies, it designs
programmes that enable people to acquire
the in-demand skills identified, assists local
education and training providers to deliver
them and supports those who complete the
programmes to secure quality employment.
FIT was recently appointed the Coordinator
Provider for the national roll-out of ICT
Apprenticeships in Network Engineering
and Software Development (Level 6) on the
8 National Framework of Qualifications (NFQ). 9Manufacturing in the In accordance with the brief, research
North West: A Profile was conducted on the profile of
manufacturing specifically in the
North West.
No country is immune from digitisation. The impact of digital technologies will have Quantitative information was obtained via Border Region manufacturing is more
As industries shift to more advanced, both positive and negative consequences for analysis of principally the most-recent concentrated in subsectors classified
automated processes, employers need the manufacturing sector. 3D printing, for CSO data on the border region as a whole as ‘low-technology’ (52% as against
additional people – especially those with IT example, allows manufacturers to prototype (North West and North East). However, 38% nationally) and less concentrated
skills – to drive transformation. items faster than before and with less more revealing information on the region in subsectors classified as ‘high tech’ or
investment. Investments by organisations was obtained through document analysis1 ‘medium-high tech’ (26% as against 46%
From an Irish into 3D printing means that many enterprises in such a way that empirical knowledge was nationally). In addition, the size structure
could soon start to print much of what produced and understanding developed. of enterprises in the region is more skewed
perspective, with over they need rather than ordering it from towards micro-enterprises (those with fewer
manufacturers. Many Irish manufacturing Collectively, the findings point to a rich than 10 people at work) and against large
4,000 manufacturing organisations already have a higher than diversity in manufacturing operations within enterprises (250+) than is typical nationally.
employers operating average level of automation and robotics the North West with a different range of
than are found in other sectors (Expert operations matching themselves to equally Many of the world’s largest multinational
throughout Ireland, Group on Future Needs Skills, 2018 Digital different types of location. Analysing any MedTech companies have facilities in the
Transformation Report). Further automation aspect of the North West’s economy has to North West. Some even have more than one.
directly employing over will no doubt have an impact on the sector, reckon with the fact that labour market data There are also indigenous Irish MedTech
200,000 employees but the impact will be lower than if the is primarily gathered for the Border Region manufacturers and innovators in the North
sector was at a less mature stage. In fact, as a whole without distinguishing between West, plus there is a large number of local
collectively. further investment could make the sector its North West and North East2 parameters. companies providing specialist support
more competitive in comparison to other Overall, the share of manufacturing in the services across Ireland to both multinational
EU countries. Border Region’s total employment is in corporations and indigenous organisations.
keeping with the national average (11.5% as
Manufacturing plays a critical role in the The combined effect of these will lead to against 11.3%) but its composition is markedly
economy as a driver of exports, as an many occupations being at risk. A recent different (Table 1).
employer, as a source of revenue and as report by the Expert Group on Future Skills
a key driver of growth. The manufacturing Needs (Digital Transformation: Assessing
sector also has significant spin-off effects the Impact of Digitalisation on Ireland’s Table 1: The Structure of Manufacturing in the Border Region and State–Selected Features, 20163
to other sectors including services, logistics, Workforce, 2018), estimates that 21% of
mining/quarrying, agriculture and sub supply. occupations are at high risk, with a further Border State
65% at medium risk. Occupations associated Share of Total Employment in Manufacturing 11.5% 11.3%
Manufacturing in Ireland has undergone with processing and operations are at risk,
significant change over the last 15-20 Manufacturing employment by technological intensity (Q4 2015)1
especially those associated with manual
years due to shifting global demands for % low-tech 52% 38%
work, such as packing and filling machine
goods and increasing competition from operatives. Much of the disruption, however, % medium-low 22% 16%
emerging countries which have competitive will result in changes to job roles and tasks % medium-high 13% 18%
advantages due to cheaper labour. To performed by individuals rather than % high-tech 13% 28%
counteract this transition, employers have job losses.
focused on high-tech areas such as ICT,
medical devices and pharmaceuticals. This Share of total employment in micro-enterprises (Profile of This section is informed by a
the counties recent publication by the Western
Development Commission – Industry in
the Western Region (2019).
Such data may lead one to expect that much Greater clarity in seeking to understand the Donegal Unlike other western counties, the MedTech
of the manufacturing in the North West manufacturing currently being undertaken in sector is relatively small accounting for
consists of low margin businesses, mostly the North West is provided from the CSO’s Over a quarter of industrial employment 7% of industrial employment. This figure
small but some large, where many at work Business Demography data set. This data in Donegal is in Agri-food. It is quite is expected to increase significantly as a
perform relatively routine tasks requiring covers what is termed the ‘private business dominant in the county’s current industrial result of Abbott in July 2018 announcing 500
modest skill sets. This Audit, as we will see, economy’ and, importantly, is available composition and Donegal has the region’s new jobs for Donegal. At 7% of industrial
finds evidence of some plants like this but, on a county basis4. It usefully illustrates highest share of industrial employment in employment, Donegal has the region’s
overall, points to a scale of sophistication important differences between the counties Agri-food employment. Within Agri-food, highest share working in Energy influenced
that the term ‘low-tech’ (and ‘traditional’) of the North West as well between the sub- seafood processing (507 people) is by far by Donegal’s considerable wind energy sector
does much more to conceal than reveal. region and the State as a whole (Figure 1). the largest element. Four other sectors and Lough Erne Hydro Station.
account for 9% or more of industrial
Figure 1: Largest private business economy employment. While Clothing, Footwear &
State Average Region Average Sligo Leitrim Donegal
sectors by employment: North West Textiles experienced massive declines in the
counties and the state, 2015 county over the past two decades, it still
accounts for 9% of industrial employment
Manufacturing 14.3% (516 people). The share working in
23.30% Clothing, Footwear & Textiles is far higher
35.40% than any other county in Ireland (national
17.50% average is 2%). The continuing strength
17.10% and international reputation of Donegal
tweed is a core element of the sector.
Wholesale 24.70%
& Retail 23%
18.70% Figure 2. Percentage of total industry Medical Mining & Quarrying 3%
Transport & Dental 7%
24.20% employment in each sub-sector in Equipment 3%
Electricity, Gas & AC 7%
26.30% Donegal, 2016
Machinery & Electrical
Water & Waste 5%
Equipment 6%
Accommodation 12.10%
& Food Service 19% Computer, Electronic
& Optical 5%
16.80%
18.20%
20.40%
Basic Fabricated
Metals & Other 9% Food, Drink
& Tobacco 26%
Construction 7.70%
10.60%
7.70% Chemicals, Pharma,
12.70% Rubber & Plastic 9%
11.40%
0% 5% 10% 15% 20% 25% 30% 35% Wood, Paper Clothing, Footwear
& Non Metallic 11% & Textiles 9%
4
The data come from Revenue’s records of who is in employment. The private business economy excludes
employment in agriculture, forestry and fishing , public administration, education, health and social work – Source: CSO, Census 2016: Summary Results
12 in the most recent Quarterly Labour Force Survey (Q2 2018) over one third (35%) of total employment Part 2, Table EZ011 13Leitrim At 8%, the Transport Equipment sector Sligo Between 2011 and 2016, total industry
accounts for a higher share of total industrial employment among residents of Sligo only
The largest industrial employer for residents employment in Leitrim than any other county Manufacturing of Chemicals, Pharma, grew marginally (0.3%), considerably lower
of Leitrim is MedTech with 19% engaged in in Ireland. This would include Mirror Controls Rubbers & Plastics is by far the largest than the national increase of 9.4% and the
this sector. The next largest is also in high- International, based in Manorhamilton, industrial employer in Sligo, accounting Western Region average of 13.7%. Four
tech manufacturing, Chemicals, Pharma which manufactures mirror parts for the for almost 1 in 3 industrial workers. Within industrial sub-sectors showed jobs growth
Rubber and Plastics, and these two sectors automotive business. Between 2011 and this, pharmaceutical products is the largest among residents of Sligo between 2011 and
jointly account for a third of all industrial 2016, total Industry employment among activity. The share of industrial employment 2016. Metals & Other (26.8%, +72 people)
employment in Leitrim. The more traditional residents of county Leitrim grew by 21.1%, accounted for by Chemicals, Pharma, and Transport Equipment (25.8%, +17 people)
Wood, Paper, Printing & Non-Metallic (13%) more than double the national increase Rubbers & Plastics in Sligo is second had the strongest growth, with 8.6% growth
is the next largest with the county having the and the highest growth among all western highest in the country (after Waterford) in the large MedTech sector (+63 people).
highest share working in this sub-sector in counties. The county experienced growth of and considerably greater than the national However there were declines in the numbers
the Western Region. This is followed by Agri- 80.4% (+127 people) in MedTech, with both average (18%). At 24%, Sligo has the third working in most industrial sub-sectors,
food (11%) which accounts for a relatively Computer & Electronic (51.6%, +16 people) highest share of industrial employment in Mining & Quarrying (22%, -9 people), Water &
large proportion of industrial employment and Metals & Other (42.1%, +45 people) also MedTech in the state, surpassed only by Waste (21.9%, -23 people) and Wood, Paper,
in the county. Leitrim has a high share of having strong percentage growth. Leitrim Galway City and County. After these two Printing & Non-Metallic (15.2%, -33 people)
industrial employment engaged in Metals & only experienced a decline in employment high-tech manufacturing sub-sectors, the had the largest percentage decreases.
Other (10%). in two sectors – Mining & Quarrying (24.7%, next largest are Agri-food and Metals &
-19 people) and Waste & Water (16.3%, -13 Other, both accounting for 10% of
people) – but saw growth of 20% in the industrial employment.
other non-manufacturing industrial sector of
Energy (+12 people).
Figure 3. Percentage of total industry Mining & Quarrying 4% Figure 4. Percentage of total industry Mining & Quarrying 1%
employment in each sub-sector in Medical Electricity, Gas & A/C 5%
employment in each sub-sector in Electricity, Gas & A/C 4%
Leitrim, 2016 & Dental 19% Sligo, 2016 Medical
Water & Waste 3%
Water & Waste 5% & Dental 24%
Food, Drink & Tobacco 10%
Food, Drink & Tobacco 11%
Clothing, Footwear
& Textiles 1%
Wood, Paper
Clothing, Footwear & Non Metallic 6%
Transport & Textiles 2% Transport
Equipment 8%
Equipment 3%
Machinery & Electrical
Equipment 4%
Machinery & Electrical Wood, Paper
Equipment 5% & Non Metallic 13% Computer, Electronic
& Optical 2%
Computer, Electronic
& Optical 3%
Basic Fabricated
Metals & Other 10% Chemicals, Pharma, Rubber
Basic Fabricated & Plastic 32%
Metals & Other 10% Chemicals, Pharma, Rubber
& Plastic 15%
Source: CSO, Census 2016: Summary Results Source: CSO, Census 2016: Summary Results
14 Part 2, Table EZ011 Part 2, Table EZ011 15Manufacturing The range of manufacturing operations
Operations: The being carried out in the North West
Context varies from advanced manufacturing
based in larger urban areas to more
stand-alone operations in rural
locations. In each case, large and small,
foreign and indigenous enterprises can
be found.
Such success in the region can be attributed The Challenge of Urban Scale In Letterkenny, Donegal County Council and
Advanced Manufacturing
to the presence of a concentration of Derry City and Strabane District Council
similar companies creating an eco-system Ensuring national economic development areas have joined forces to promote
At the heart of advanced manufacturing
of specialised hubs, supported by technical to 2040 is sustainable and more regionally Letterkenny-Derry as linked gateways to
is the ability to identify and adopt tech
sub-suppliers collectively acting as a magnet balanced,5 Project Ireland 2040 underlines the North West and to drive the economic
improvements; source top-class sub-
for highly-skilled staff and a stimulant for how ‘two key variables’ affect a region’s development of what is presented as, in
suppliers; access to international markets
R&D. Furthermore, the region boasts a economic development prospects. They effect, a cross border City-Region (Gateway
and attract top-talent - key elements for
strong sense of connectedness that nurtures are (i) the scale of concentration of to Growth, 2017)7. With Derry and its
which the North West is well equipped
thought-leadership. This escalates the economic activity it offers, and (ii) the urban population in excess of 100,000 as
to boast.
attractiveness of the region internationally, relative distance, or ease of accessibility, its core, the full regional population, when
particularly if the manufacturing plant is it has to larger centres of population and Letterkenny and its environs are included, is
integrated into a multinational’s global supply employment, i.e. to ‘centres of scale’. We of 350-400,000 people making it ‘the fourth
chain, which in turn can be a catalyst for the live, it notes, ‘in an era when the nature largest urban agglomeration on the island
recruitment of young indigenous talent. of urban places is a critical factor in of Ireland’. While pointing primarily to the
determining economic growth and regional presence and further potential of advanced
development’ (p 56). services activities, their strategy cites the
presence of 245 companies in Advanced
Advanced Manufacturing Case Study: This case study sets out the pragmatic use of advanced manufacturing
The formation and final shape of Project Manufacturing and Engineering in the region
Using Data Science and Machine methods to automate and improve a manual procedure in a Ireland 2040 was strongly influenced by with specialist expertise in Automation
Learning to determine excessive
manufacturing company. the realisation that all of the State’s six Technology, Agricultural Machinery, Quarry/
energy consumption in a batch
largest urban conurbations lie south of a line Mining Machinery, Materials Handling, Print &
manufacturing process.
drawn from Galway to Dublin, and that the Packaging, Mechanical Engineering, Electrical
Batch manufacturing processes are extremely energy intensive. IT Sligo and the
North West’s two largest urban areas each Engineering, and Precision Engineering
PEM Research Centre are using data science and machine learning to identify & Fabrication.
have a population of only around 20,000.
batch processes that consume significantly greater energy than other However, the region in reality is punching way
identical processes. above its weight as a result of its pattern of
specialisation. Ireland is amongst the highest
for its share of manufacturing value-added
To begin we analysed approximately 1000 manually recorded manufacturing
in the OECD6 owing largely to its share in
records that were documented over a one year period. These were digitised
the high-tech manufacturing landscape; a
and transformed into a useable format for analysis. The duration and time landscape for which the North West
of each processing step were calculated for every batch and product. is renowned.
Using statistical analytical methods, we were able to identify outliers that
represented the batch processes consuming significantly more energy
than necessary.
Having developed the necessary statistical tools our client is now able to
5
Project Ireland 2040 commits to ‘effective regional development’, i.e. ensuring greater
use our software package for the real-time prediction of a highly variable
autonomy and support to allow each region play a greater role in identifying and developing
manufacturing process. Incorporating sensor technology for the gathering its unique resources and assets. For this, a new institutional architecture is now in place - the
of manufacturing data, as opposed to manual recording, will allow for rapid three new large regions that replaced the previous eight, the enhanced responsibilities of local
identification of manufacturing issues. This will greatly increase productivity for authorities for economic development, the regional skills fora, regional alliances among higher
education institutions, etc.).
our client and ultimately reduce production costs. 6
Economic Outlook, OECD, 2018.
16 7
Gateway to Growth: North West Economic Development Initiative, 2017. 17In Sligo, inward investors have chosen to Sligo, Letterkenny and Carrick-on-Shannon Traditional Manufacturing in Small Scale Manufacturing in
automate rather than relocate previously are alive to the opportunities that being small
labour-intensive operations, to undertake in the national context can provide. These the North West Rural and Coastal Areas
successive expansions (one operation locations are well positioned to leverage
has been expanded eight times since its the high-cost, over-crowded status of the In addition to advanced manufacturing, Each county contains examples of micro and
establishment in 1994) and even to manage country’s cities to attract top-tier talent to manufacturing that is labour intensive and small rural enterprises that are engaged in
from Sligo labour intensive operations that the region. These opportunities may present relatively low skilled is present in the North manufacturing related to a specific feature
are now more economical to carry out themselves in several forms; choosing to West, and sometimes on a very large scale of their locality’s natural environment,
overseas. The CEO of a New York-based live in the area while retaining their principal where plants draw workers from wide tourism offering, culture or history.
software company LiveTiles in choosing it as source of employment in a major city (‘de- catchment areas and have a major local
a location in 2018 described Sligo as having commuting’ or remote working), finding a impact. These plants are relatively stand- Artisan food and drinks producers (e.g.,
‘an up-and-coming technology scene’8. local employer or working independently alone once good transport links are assured Drumshanbo’s Gunpowder Gin in Leitrim)
as consultants or through small company and can function effectively in smaller towns and marine-based products are good
In Leitrim the number of manufacturing start-ups. and rural areas. examples but a wide range of craft products,
companies choosing the county for their home furnishings and other products also
operations is growing with an increased Finally, the payroll generated by The challenges posed to manufacturing feature. In rural locations, their impact can
presence in export-orientated companies manufacturing operations can be major plants that rely heavily on the exercise be significant and in large numbers they
catering for the medical technology sector. sources of revenue for downstream local of routine tasks by large proportions of are a significant feature of the North West’s
This is reflected in the county’s economic services (retail, accommodation, child care, their workforce are well documented and economy. Access to high-speed broadband
strategy which predicts larger shares of activity pursuits, etc.). discussed in several key reports produced hugely widens the markets into which they
employment in manufacturing by 2021 on the future of manufacturing in Ireland’s can sell thus making concepts of remoteness
compared with the baseline of economy (as the country at large becomes or small ‘domestic’ product demand
2011 percentages. more of high cost operating environment for largely irrelevant.
such plants), particularly sectoral reports
In seeking to grow and attract more from the EGFSN on, e.g., Food & Beverages,
advanced manufacturing in the North West, Transport, Logistics & Communications, etc.
the increasingly blurred boundaries between These reports make clear, the challenges
advanced manufacturing and services facing manufacturing organisations to
should be noted. Advanced manufacturing embrace automation and anticipate the
frequently bundles the provision of services contribution to productivity of digitisation
to customers along with sales of its products. and artificial intelligence (AI) are especially
Furthermore, the operations of advanced acute for indigenous manufacturing and
manufacturing plants frequently entail make particular demands on employee
buying-in multiple specialist services from skills training in particular. Frequently,
service providers. small cadres of highly skilled but flexible
and multitasked workers supervise and
direct the work of much larger numbers
of workers doing more routine tasks. It is
widely acknowledged that even resilient and
mature manufacturing companies in the
region with strong traditions must move up
the value chain by embracing automation and
concentrating on higher level activities if the
sector is to remain important in the region.
18 8
AI firm LiveTiles to create 50 jobs at new Sligo centre, Irish Times, 2018. 19The Companies This study is based on interviews with
Interviewed: senior personnel in 26 manufacturing
A Profile
locations across the North West
The 26 companies interviewed represent the The 26 manufacturing locations included in Furthermore, the abundance of quality
Manufacturing in the North
wide diversity of the region’s manufacturing this study can be considered illustrative and manufacturing and industrial space, at
sector. The study includes routine, labour a good cross section of what constitutes West: Looking Forward prices that challenge any city in Western
intensive operations and those that are the region’s manufacturing sector. A total Europe, well positions the region as an
highly automated; operations that need of 3,137 people were at work across the 26 Following the introduction of the Local incredibly competitive cost location
high-skills and the exercise of considerable locations. Six had more than 200 at work, Government Act 2014, each Local Authority (Gateway to Growth, 2017)10 . This is
autonomy and those that require low-skills while 15 had 50 or less. The single largest has embraced its heightened responsibility emphasised in individual area plans that
and extreme diligence; micro scale plants location had 750 and the smallest 9. for economic development at both county state the safeguarding of land which has
(e.g., 10 workers or less) and very large and regional levels. The implementation of been identified for employment purposes,
ones (e.g., 750); products as different Ten of the locations are in or near one of both the County Development Plans (CPDs) in particular, sites for the purpose of high
as knitwear and artisan food, on the one the region’s two largest urban areas, Sligo or and Local Economic and Community Plans technology, research and manufacturing.
hand, and advanced pharmaceuticals and Letterkenny, eight are on or near Donegal’s (LECPs) will make a significant contribution Additionally, there is an awareness of
precision engineering, on the other; small long Atlantic coastline, two are in Leitrim’s to the support of existing enterprises and the need to continue facilitating the
and large indigenous companies, plants largest town (Carrick-on-Shannon) and the the attraction of newer ones. The three development of a number of clusters
of multinational corporations that are remainder (6) are in smaller rural towns with counties, as well as sharing common in order to achieve their goals. While
highly automated and those that are labour all three counties represented. features, have opportunities for economic the opportunities are plentiful, there is
intensive. The companies interviewed development that differ from one another. recognition for the challenges being faced
also illustrate the very different types Eight of the locations studied are engaged Featured in the LCEPs is an analysis of each by the region. Firstly, large dependence
of locations within the region to which in one type or another of medical county’s strengths and their commitment on public sector employment is no longer
manufacturers have matched themselves, manufacturing and, therefore, part of what to reinforcing them for the purpose of sustainable thus building on their strong
from the Donegal Gaeltacht to the Sligo is, by far, the North West’s most significant economic development. inward investment is a must. Secondly, while
regional gateway, and from the Inishowen manufacturing cluster; five are engaged in manufacturing continues to be one of the
Peninsula to the banks of the Shannon. engineering while the remaining locations are A key common dominator is the counties’ most common qualifications in the region,
spread across eight different manufacturing objective to enhance the potential for there is a lack of specialised skilled staff e.g.
sub-sectors. economic development in the Service, specialised toolmakers, process engineers,
Manufacturing and ICT Sectors through a advanced manufacturing maintenance
combination of building on the success of technicians and experienced software
existing enterprises and the growth of new programmers owing mainly to the strong
Table 2: Activities of companies interviewed ones. It is widely acknowledged that despite performance of the high-tech
a resilient and mature manufacturing sector manufacturing sector11 .
Medical Devices Engineering Additional Manufacturing Sectors with strong traditions, the North West must
adapt accordingly as a result of emerging
9 5 2 each: textiles/clothing; food; metal fabrication; packaging (=8)
growth and technological advancements,
sharing in IBEC’s vision for Ireland to become
1 each: exhaust systems; hydraulic cylinders; elastomer mouldings/seals;
a world leader in manufacturing technology,
construction hardware supplies (= 4)
operational excellence and cross sector
collaboration (IBEC, 2016)9.
9
Manufacturing a Renaissance, IBEC, 2016.
10
Gateway to Growth, North West Economic Development Initiative, 2017.
11
Growth observed in high-tech manufacturing at almost 7,000 persons employed nationwide
20 (National Skills Bulletin, 2017) 214.0 Driving the Future Perhaps the biggest facet of this industrial When we think about the future of work
revolution will be changing relationship in the manufacturing sector, the threat of
of Industry and dynamic between producers of goods automation is a constant. However, the
and services and their customers. IIoTs put use of robotics is for the enchantment
The Internet of Things (IoT) is defined by consumers in the driving seat, providing them of productivity and offers people the
the UN’s global agency for information with the means to readily articulate their opportunity to focus on creativity and
and communication as ‘a global requirements, expectations and preferences innovation. In preparing the future labour
infrastructure enabling advanced services to producers in real-time. No longer is it force for the digital transformation, the
by interconnecting things based on existing a case of ‘you can have any colour car, as combination of skills being acquired is
and evolving technologies’ – succinctly, long as its’s black’ (Ford Model T) - auto vital. Breaking the mould on the idea that
systems/equipment/plant machinery manufacturers today are able to offer an a ‘job is for life’ is central to developing
virtually communicating continuously via abundance of customizable options, even an adaptable and collaborative workforce
ubiquitous wireless technologies. on entry level vehicles. Before customizing for which lifelong learning is a must. Digital
a million products for a million consumers transformation is now a critical factor
Industry 4.0 or the Industrial Internet of was impractical and cost prohibitive - now, for all enterprises but in particular for
Things (IIoT) is often depicted as the ‘Fourth it is just as efficient to produce customized those involved in manufacturing sectors -
Industrial Revolution’, or the ‘factory of products as it is to produce batches. accordingly Industry 4.0 is the critical path
the future’– encapsulating how businesses to future success. To ignore this reality is to
- particularly those involved in advanced In addition to engaging consumers in wither on the evolutionary vine.
production and logistics - exploit IIoT manufacturing process “smart factories”
technologies to enhance the manufacturing, stimulate innovation, creativity and
transportation and marketing processes efficiencies through enabling connected
thereby minimising costs while increasing employees get ready access to the ‘live’ data
efficiencies and productivity. Research they need to refine business processes and
by Oxford Economics suggests that these set priorities. New collaborative platforms
emerging technologies now impact 62% of allow for the ready engagement of worldwide
the G20’s GDP, alluding to a seismic shift in talent in building solutions.
the industrial sector globally over the next 10
years with the wider adoption of IIoT’s. Rapid advancements ERP, CRM and
Customer Experience Mapping technologies
Manufacturers wishing to remain in the game enable employees observe the entire
need to embrace the digital transformation supply chain thereby informing decisions
trends driving Industry 4.0. Technologies such as preferred products lines, impactful
including advanced analytics, machine marketing strategies etc. Cloud analytics
learning, and cloud computing and human- devices such as sensors enable businesses to
machine interfaces are part of the mix- realise efficiencies in production processes
leading to a technological reformation of our and logistics. Other tech such as Augmented
factories and manufacturing processes. No Reality (AR) and Virtual Reality (VR) can also
longer do manufacturers have to be large to change the way products are designed by
take advantage of smart tools. engaging end-users in the design process.
22 23Findings and Analysis Manufacturing in the North West
has evolved from its heritage in
precision engineering to now embrace
advanced technologies that progress
medical devices, pharmaceuticals and
automotive components (Action Plan
for Jobs, 2017).
While the North West and North East are This skills audit revealed that there was However the definition of ‘expert’ in relation The Demand for More Skills
often combined for the purpose of analysis demand at all levels in all disciplines, the to the manufacturing sector merits further
i.e. Profile of the Border Region (SLMRU, majority of which is accounted for by a exploration; firstly an expert may possess and/or Upskilling
2014), they differ greatly with regards to combination of entry and competent roles. deep mastery in an area of specification
their manufacturing landscape. While the demand for experts was such as precision engineering; mechanical The skills required for the manufacturing
48% (Figure 5). engineering and a demonstrated aptitude sector in the North West have been clearly
for advanced analytics. Secondly, an expert articulated by participating employers and
can be defined as an individual who has are shown in descending level of demand
gained solid knowledge through honing in Figure 6. Participants were probed on
and deepening a skillset through practical the level of demand for entry, competent
Figure 5. Levels at which skills are being experience. In today’s manufacturing climate and expert roles in each of disciplines
exercised and required Entry 10% an expert who has gained extensive work for which the accumulation is illustrated
experience is well positioned to undertake overleaf. Demand for entry, competent and
roles such as production team lead, project expert levels is most evident in the supply
Expert
management or general management. Such chain logistics (10.3%) discipline with big
48%
responsibilities require a combination of data requiring the least (1.4%). The desire
both hard and soft skills in a real-world for upskilling is strongly supported by
environment with an aptitude for project government policy and targets for employee
management and problem solving. development are set out in its
recent publication12.
Demand at competent and entry level
is being driven by the need for those
in possession of technical and digital
competencies required for high-tech
automated manufacturing. Despite a talent
pool of operatives available for employment,
Competent
training in traditional operative skills is
42%
lacking the technical and digital elements
needed to refine such roles for today’s
climate. The opportunity to satisfy vacancies
at entry and competent level can be seized
via the extensive range of FET courses
including traineeships and apprenticeships.
FET as a form of vocational education has
a key economic function in up-skilling and
providing high-quality technical skills to the
labour market.
12
Supporting working lives and enterprise growth in ireland: 2018-2021 further
education and training policy framework for skills development of people in
24 employment. September 2018 25The range of skills in demand by the
manufacturing sector in the North West
is diverse and spans from transversal
competencies and traditional labour-
intensive manufacturing to advanced
manufacturing 4.0.
Figure 6. Estimate of additional skills Increasingly the skill of problem solving It is a two-year programme delivered
needed in the next 12 months is seen as a key requirement across all by DIT which comprises four days
aspects of the sector. This is demonstrated per week on-the-job, and one day
Big Data 1.4%
by ongoing cross-pollination of skills per week off-the-job in college.
required for the region’s rapidly evolving This could inform an apprenticeship
Vacuum Systems 1.5% manufacturing industry suggesting that an solution, however its structure and
over-reliance on one particular skill does content should align with the skill
Programming Skills 2.7% not exist and that it is, in fact, a portfolio needs of employers in the
of skills that are needed for a career in North West.
Network/PC 2.8% the sector. However, this greater need for
a diverse range of skills is an opportunity 2. A short training programme could be
for progression within enterprises, and a developed to meet the skill needs
Robotic Skills 2.8%
reminder to the significant number (52%) at expert level which would involve
needed at entry and competent level what existing experienced employees
Design Skills 2.9%
they can ambition by way of career who have a desire to upskill. The
paths (Figure 5). programme would encompass best
Project Management 4.4% practice in Supply Chain Logistics
A key requirement articulated in the skills and could be delivered as a short
Electronic Skills 5.8% audit was for skills in supply chain logistics in block (e.g. 4 days) or spaced out over
particular inventory planning and inventory eight half days.
Workshop Skills 6.2% management followed by make/buy decision
making, cost modelling and metrics/ 3. 1 Year top up (Level 8 or Level
measures/standards. 9 Programme) to build on what
Quality Assurance 6.4%
learners have already acquired.
Skills
In response to this demand which spans This proposed work-based learning
Mechanical Skills 6.4% entry through to expert level a number of programme could be delivered using
approaches could be considered: a blended approach combining block
Manufacturing Skills 6.4% classroom workshops, independent,
1. To meet the needs at entry level, online and workplace learning.
Control Systems 6.9% an Apprenticeship in Supply Chain
Logistics could be developed. In
addition to attracting new entrants
General Operative 7.6%
such an initiative could target
Skills
applicants already employed where
Problem Solving 7.9% their employers wished them to
Skills undertake some form of upskilling
Professional... 8.8% where enterprises needed to
grow their related workforce. An
Electrical Skills 9% apprenticeship called the Logistics
Associate apprenticeship at Level 6
(Higher Certificate) was initiated by
Supply Chain 10.3%
the Freight Transport Association
Logistics
Ireland in 2018.
20% 40% 60% 80% 100% 27The findings also reflected strong
demand for manufacturing skills
across a range of intermediate level
technical areas.
These include electrical, control systems, There is a lesser yet significant level of Consulting with
manufacturing, mechanical, workshop and demand for Design, Robotics and Vacuum
electronic skills. Transversal skill needs Systems skills which could be satisfied by Manufacturing Employers:
relevant to these areas were also prioritised providing courses in one or more of these
such as QA, problem solving and project areas subject to a minimum number of Addressing Skill Needs
management. Such cross-disciplinary skills employers committing to taking up places.
are increasingly being viewed as an essential As part of the Audit’s Methodology,
prerequisite for an increasing number respondents were asked about their
of manufacturing technician type roles. strategies for addressing existing and
Considering this feedback from employers, emerging skills needs. Access to appropriate
training solutions could possibly address two training was discussed along with barriers to
cohorts of employees as follows: sourcing the right talent in a rapidly evolving
sector. Issues in Addressing Skills Needs are
1. Employers see the potential for illustrated in Figure 7 for which an
skilled general operatives to progress analysis follows.
into higher skill roles, as competitive
pressures drive employers to become
leaders in advanced manufacturing Figure 7. Issues in Addressing
practices. A training programme Skills Needs Knowledge/Access to
could be offered which delivers an
training provision Time
introduction to ‘Cross-Disciplinary
17% 29%
Manufacturing Skills’ covering the
technical and transversal skills
listed above. This could also be
delivered to those outside the
workforce (unemployed, women Skills Needs
returners etc.) who have an aptitude Analysis
for and are seeking employment in 10%
manufacturing technician roles.
2. An advanced version of this
programme could be designed to
meet the need for upskilling of
existing manufacturing technician
Course
staff. Employers have cited the need
Availability Cost
for flexibility and increased ability
23% 21%
to problem solve across a gamut of
modern manufacturing technologies.
28 29Issues in Addressing Skills Operators: Transversal Skills: The Strong Industry Endorsement
Needs: An Investigation An Ongoing Demand Importance of Human for Dual-Education Initiatives
Barriers to developing skills within The demand for General Operative roles Capabilities For the purpose of this research, dual
organisations included the need to train was indicated by a number of respondents education initiatives refer to programmes of
staff off-site on a regular basis. Although as ongoing. Understanding the root of this As technology infiltrates the modern study designed and delivered by education
this is often the norm with regards to demand is important for addressing skills manufacturing workplace, it is important and training providers in collaboration
specialised training, finding the Time to do needs as General Operative vacancies can to bear in mind the importance of with industry. Companies were questioned
so was identified as the most significant often be the result of high turnover rates. human capabilities and the evolution on their receptiveness to dual-education
barrier by 29% of respondents13. A notable However, in the case of the North West such of competencies in tandem with the initiatives for which 85% expressed
finding was the number of responses (23%) demand is largely due to an increased in adoption of emerging technologies and support. The findings state that companies
citing Course Availability as a barrier. This manufacturing activity in the region. There new manufacturing processes. This has believe that apprenticeship/traineeship
is directly correlated to the Knowledge of/ is an ongoing demand for both Computer been reinforced by the findings which style programmes allow candidates to get
Access to Training Provision with 17% of Numerical Control (CNC) and production indicate a need for strong transversal skills involved in projects that better equip them
respondents highlighting the issue. Finally, operatives, particular in the high-tech for optimal career progression. Further for problem-solving in the future. Employers
analysing the skills needs of employees manufacturing/med-tech sector. While information gained through the interviews also spoke positively about work-based
was identified by 10% of respondents as a there are many job-seekers ready to take places problem solving and root cause learning programmes designed for existing
barrier in addressing skills shortages due to up these roles, they often lack the technical analysis at the forefront in troubleshooting employees. Such work-based programmes
the resources required to carry out such and digital competencies required for high electrical and mechanical issues, a skill that need to be designed in conjunction with
analysis, especially for smaller enterprises. technology automated manufacturing. is increasingly important in an era of digital employers and delivered at a time, place
Concerns for the lack of locally-run courses Employers expressed that while it can be transformation. and pace that suit the employer and
were voiced as organisations opt to send difficult to find people with this combination employee. Learning in the workplace needs
staff to the UK for training. Cost (21%) was from day one, it is something that can be Findings also indicate difficulty in sourcing to be recognised and acknowledged and
also flagged with the need to send staff honed and developed through experience. To courses related to the following: vision assessments should address opportunities
elsewhere as a primary contributor. This excel in this arena going forward, operators systems; ultrasonic, advanced manufacturing or challenges facing the sector and employer
further highlights a challenge in the provision require technical know-how coupled technologies, and radio frequency welding organisation. As emerging technologies
of specialised knowledge resulting in the with the right soft skills that foster as more activities become digitised. In the dramatically alter the skill sets that
need for tailored in-house training from professional development. Action Plan for Jobs 2017, the Government employers seek today, such dual-education
senior staff; training that may distract from outlined its intention to further develop initiatives are a good example as a way to
the operational priorities of a company. It cross border and international partnerships deliver these skills for the sector combining
was also pointed out that if such courses to support the development of emerging learning and application.
were more readily available it would aid technologies. This initiative could be
with the development and retention of supported through existing training providers
local talent and support business in the region, developing a continuum
development strategies. of manufacturing (Industry 4.0) training
provision across further education and
higher education. The presence of a strong
consortium of manufacturing employers
in the North West positions the region to
develop a cohesive local strategy to further
N= (58) Companies were given the option to select more than one barrier and
13 grow and up-scale industry with education
therefore the figure for N is larger than the number of companies interviewed. All and training provision at its core.
30 26 companies identified at least one barrier. 31The degree to which Dublin and other large
The Future of Work: Talent Specific Skills Required —— An accompanying table provides the
cities are pressing against infrastructural same information in the form of a
Retention in the North West constraints allows for the strengths of
by Discipline ranked list with the number one position
digitisation to dispel any concept of isolation occupied by the skill most in-demand.
A standout finding was the growing need for with regards to those regions and towns
The survey responses were also analysed
the digitalisation of manufacturing processes beyond the existing urban conurbations and Readers of this report are invited to
to determine the specific skills most in
in the region in which the real and virtual even small outflow by Dublin’s standards can explore the top-ranked skills/high demand
demand for each discipline. Details of the
worlds converge through Industrial Internet make a large impact on smaller regions15. As roles as set out in the radar diagrams and
findings are presented in radar charts in
of Things (IIoT), web 4.0 technologies, a result of the region’s robust ICT presence, accompanying tables in Annex 1. Each
Annex 1 providing the data in a form easy
services and real-time management of the North West is well-positioned for the discipline has been presented separately to
to assimilate and which gives readers
data for the purpose of root cause analysis. ‘future-proofing’ of its traditional sectors allow the reader to identify those which are
an overview of the intensity of demand
The need for productivity tools/inventory offering optimal employment opportunities of particular interest to them, or indeed all if
reported for each specific skill with a
management and logistics technologies were for the right talent. Investing in quality a more comprehensive understanding
discipline. In each radar diagram:
highlighted as escalating requirements to training is therefore pivotal in improving is required.
future-proof manufacturing sectors in the the performance of the regions existing
—— The outermost ring represents the
region with significant opportunities at both industries and services for For those who would prefer a summary
highest demand for a specific skill
entry and competent level. sustainable growth. overview of the skills needs in demand,
—— All rings represent significant demand,
including the inner ones the following General Findings should
CNC Training and ISO Programming are —— Different coloured symbols illustrate the prove useful.
also becoming increasingly attractive to demand for entry, competent and
companies seeking new hires but also expert levels
desirable in the upskilling of existing
staff. Overall, the need to advance skills
and knowledge in the area of advanced Figure 8: Level of Skill Required Expert Competent Entry
manufacturing is fundamental to progress by Discipline
and to future-proof the manufacturing
industry in Ireland (Ibec, 2018)14, for which
Vacuum Systems
Robotic Skills
Electronic Skills
Electrical Skills
Control Systems
Manufacturing Skills
Project Managment
Mechanical Skills
Professional Development
General Operative Skills
Problem Solving Skills
Workshop Skills
Supply Chain Logistics
Networking/PC Maintenence
Progamming Skills
Design Skills
Quality Assurance Skills
Big Data
technology is the catalyst for change.
While concerns for the retention of talent
was expressed by respondents, attracting
talent back to the region may be an
increasingly viable prospect.
100%
80%
60%
40%
20%
14
Safeguarding Ireland’s Manufacturing Future, Irish Medtech Association, Ibec 2018.
15
FIT ICT Skills Audit 2018:Widening the ICT Talent Pipeline for Sustained and
32 Inclusive Growth
33General Trends Cross-Sectoral and To exploit the opportunities
in Relation to Transversal Skills presented by emerging technologies,
Manufacturing Skills Required manufacturing organisations should
Demand
invest significantly in upskilling
their employees.
Education and Training providers must
#1 In the Electric Skills Category Industrial #10 Top Manufacturing Skills are Parts
ensure that employers and employees
Electrical Systems is the skill most in Inventory and Maintenance Planning Ability to work outside
have access to relevant and up-to-date
demand along with a requirement for closely followed by Predictive Maintenance of core area
programmes. The North West’s ability to
3 Phase systems and Electrical Test/ Scheduling.
continually grow and attract investment will
Measurement capabilities.
B R O A D
be dependent on readily available talent and
#2 Fundamental Electronic Knowledge is #11 For the Programming Skills discipline C+
highly skilled workers. The skills demanded
a standout requirement in the Electronic Programming, C++ & Delphi were highlighted
by the sector are evolving with lower skilled
Skills discipline. Analog/Digital & Digital/
Analog Conversion and AC Rectification
as important across all levels. SQL Database
and Java are also required.
positions at most risk from automation and
growing demand for science, engineering
D
follow closely, particularly at entry and Functional
competent level.
#3 Mechanical Skills: Hydraulics is top #12 Big Data requires the same top three
and digital skills. Upskilling for the existing
industrial workforce is vital to the long term E area,
discipline,
sustainability and growth within the region’s
of the list at all three levels. Transversal
skills such as Project Management and
skills at all levels; SQL; My SQL and C++.
Developing these skills is a good calling card
manufacturing sector and ultimately the
regional economy.
E or speciality
Professional Development are needed for entering the sector. T
from entry level onward.
#4 Strong demand for Welding skills in the #13 Project Management requires Experience
The demand for skills in manufacturing P
covers a broad range of occupations
Workshop discipline with Soldering and in People Management at all levels. However, and skill levels. While without a doubt
Machining (Drilling, Milling and Turning) knowledge of PM tools such as Six Sigma/Lean technical abilities are a must, surprisingly
required at entry and competent levels. and Agile/Scrum/Kanban would enhance many of the skills candidates are lacking
Figure 9: T Shaped Skills
Problem Solving required at all levels. entry roles. are not technical but rather what can be
#5 For those entering the Design Skills #14 Manual Handling is required at all described as the human skills (sometimes
discipline 3D Printing, Solidworks and stages of General Operatives with skills in referred to as soft skills). These skills
Programming/Development Support Skills Production Line Operation an added bonus at include communication, collaboration
top the list. entry level. and creativity, as well as uniquely human
#6 Inspecting Vacuum leaks was most #15 Robotic Skills require Robotic traits like empathy, relationship-building,
sought after in the Vacuum Systems Programming Skills at all levels. An entry cognitive ability, curiosity and the desire
discipline. Following closely were skills in level skillset would benefit from knowledge to learn. Human strengths are skills that
Vacuum Pumps and Problem Solving. of Robot Configurations. Demand for Robot will augment technology and reduce the
teaching was strongest at competent level. threat of replacement by automation. The
#7 Demand for PLC’s is evident at all #16 Knowledge of both National and respondents that contributed to this skills
levels in the Control Systems category International Quality Standards is key at all audit stressed the importance of recruiting
with most demand at entry. Combined levels in the Quality Assurance category. employees who have the right mixture of
with Programming Skills would enhance an soft and hard skills. The ultimate blend is
entry-level skillset. a combination of human skills + technical
#8 In the discipline of Networking/PC #17 Good presentation and written skills + digital skills. Employers have called
Maintenance there was a clear top three communication skills are central to good on local education and training providers
across all levels; IP Networking; Wireless Professional Development followed closely by to design programmes that address a
Networking and Network Security. Teamwork. combination of both the dedicated discipline
learning outcomes but at the same time
#9 For Supply Chain Logistics requires #18 Problem Solving Skills. Demand for
review broader transferable skills relevant to
skills in Inventory Planning and Inventory critical thinking and analytical skills was
working in manufacturing and indeed other
Management across all levels. Cost evident at all levels. Technical Report writing
sectors. This requires programmes to be
modelling is also a requirement. was also required.
designed in a “T” shape where both broad
transferable skills and discipline-specific
skills are addressed. See Figure 9 right.
34 35You can also read
