Sector Overview
The electrical sector covers companies that manufacture a wide
range of products which include:
- electric motors, generators and transformers
- electricity distribution and control apparatus, insulated wire
and cable
- office machinery: photocopiers, cash registers and computer
equipment
- television and radio receivers, sound or video recording
equipment
Businesses that manufacture electronic components for such goods
will find further information under the Electronics Employer Centre.
Key facts
- 119,800 people are employed in the electrical
equipment sector.
- The sector needs over 37,000 people to
replace those retiring or leaving their jobs between 2005 and
2014.
- The electrical equipment sector is
characterised by small firms: 71% of sites employ between 1
and 10 people.
- Managers account for 26% of all employment in
the sector (42,400 employed).
- Skilled craftspeople who have completed a
trade apprenticeship make up 19% of the workforce.
- 9% of the workforce have no
qualification.
- 30% of the workforce do not have a
qualification at S/NVQ Level 2 or above.
- 29% of people working in the sector hold a
qualification at S/NVQ Level 4 or above. This is below the
average for all sectors in the UK.
- 18% of sites have skills gaps.
- 14% of sites have hard-to-fill
vacancies.
- An annual growth rate in employment of - 0.7%
is predicted for the sector.
Future outlook
The need to engage in lean manufacturing
techniques to improve productivity and competitiveness is a key
challenge to the sector. Many electrical companies are
already implementing ‘lean’ and ‘5S’ principles but their use is
not as widespread as in the aerospace, automotive and other sectors
that they supply.
As customers at the top of the supply chain
demand better quality, lower costs and on-time delivery, electrical
equipment manufacturers will be forced to adopt process
improvements.
In response to change, companies are looking
to increase productivity by:
- Focusing on added value
- Batch rather than mass production
- Separating the design and marketing of
products from production
- Automating production
These will all give rise to skills changes in
the next two or three years.
High volume, low value work will keep moving
overseas and demand for higher-level skills will increase.
People and skills
Although overall employment is declining,
there is still a need for the sector to recruit – particularly
managers, skilled craftspeople and operatives.
A lack of technical and practical engineering
skills is the major cause of skill-related problems.
Strategic management, entrepreneurship and
technical skills such as advanced design skills are crucial to
improving productivity.
There is also a need for the current workforce
to have skills that make them more flexible and
adaptable.
By 2014 skilled craftspeople and operatives
are expected to make up a lower proportion of the
workforce. High-value work will bring opportunities for more
managers, professionals and technicians. Support occupations within
the sector such as administration, sales and customer service will
also grow.
There is a growing trend to recruit from
overseas to fill hard-to-fill vacancies. As the economies of
migrant workers’ countries grow, many are likely to return
home. This, along with tighter restrictions on workers,
particularly from outside the EU, will hinder sector companies
seeking highly-skilled employees.