Sector Overview
The mechanical sector covers companies that manufacture a wide
range of machinery and equipment that is used in many industries
which include:
- machinery for the production and use of mechanical power – for
example steam or gas turbines, marine engines and their
components
- pumps, taps, valves, compressors and components such as
bearings and gears
- weapons such as tanks and other fighting vehicles and
ammunition
- machine tools and machinery used in the manufacture of domestic
and industrial products
The mechanical equipment sector, more than any other sector that
Semta represents, depends on the success of other industries.
Segments of the mechanical equipment sector are integral
parts of supply chains as subcontractors for the aerospace,
automotive and shipbuilding sectors.
Key facts
- 274,300 are employed in the mechanical equipment
sector.
- The sector needs over 67,000 people to
replace those retiring or leaving their jobs between 2005 and
2014.
- The mechanical equipment sector is
characterised by small firms: 73% of sites employ between 1 and 10
people.
- Skilled craftspeople who have completed a
trade apprenticeship make up 30% of the workforce.
- 12% of the workforce have no
qualification.
- 32% of the workforce do not have a
qualification at S/NVQ Level 2 or above.
- 24% 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.
- 23% of sites have skills gaps.
- 20% of sites have hard-to-fill
vacancies.
- An annual growth rate in employment of –1% 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 mechanical companies are
already implementing ‘lean’ and ‘5S’ principles but their use is
not as widespread as in other sectors that they supply.
As customers at the top of the supply chain
demand better quality, lower costs and on-time delivery, mechanical
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. The biggest skills gap is in CNC
machining. 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.