Posted 20th January 2013 | 9 Comments
Skills shortage threat to £25bn rail investment plans
PLANS to invest over £25 billion in more than 200 major rail projects during the next seven years are at risk because the rail industry will face growing difficulty recruiting suitably qualified and experienced staff.
Projects most at risk include electrification schemes and the introduction of large fleets of new trains, including those for Thameslink, Crossrail, the Intercity Express Programme and London Overground.
A particular concern is the age profile of people working in traction and rolling stock, which shows this sector of railway engineering now has 'a particularly ageing workforce' .
These are among the conclusions of a report by the National Skills Academy for Railway Engineering for the Office of Rail Regulation.
The report says over 100 companies were asked to provide individual data about rail engineering staff. A total of 51 companies responded 'providing a rich data sample in excess of 44,000 people'.
NSARE explains: 'From this data it was possible to extrapolate an existing railway engineering workforce of some 100,000 people, 84,500 of whom are involved in railway engineering specific activities. Nearly 70 per cent work in Track, almost half are semiskilled and 4.4 per cent are female.'
The report adds: 'Overall, the age profiles of the infrastructure workforce follow a roughly normal distribution with the exception of the T&RS profile which has a particularly aging workforce – with some 20 per cent of people over the age of 55.'
Uncertainty about longer-term plans for the rail industry, including HS2, led the NSARE to focus on skills requirements up to the end of Control Period 5 which will cover the years 2014-19, for which the Industry Strategic Business Plan was recently published.
According to NSARE, up to 2019, 'the railway engineering industry will be spending some £25bn on over 200 projects including infrastructure enhancements and renewals as well as rolling stock new build and refurbishment.
'While Network Rail accounts for the single biggest component of infrastructure spend during CP5, it is worth noting that Transport for London, Crossrail and light rail schemes contribute significant percentages, particularly in signal and telecommunications and rolling stock procurement activity,' it says.
NSARE reaches conclusions for each of the different engineering functions.
There is no ‘gap’ in the overall numbers in the track engineering workforce. But this overall picture 'masks an important issue, however – the need to replace a number of higher level qualified and experienced people that will retire over the coming years'.
For Signalling and Telecommunications, NSARE forecasts a need for between 1,600 and 2,000 new people in the next five years — with over 30 per cent of these people being at technician level or above.
As for Electrification and Plant, 'the significant increase in E&P activity anticipated in the next few years will underpin the need for around 1,000 new people, which is the equivalent of almost 30 per cent of the existing workforce. Of these, some 750 will be required as a direct result of major electrification programmes'.
But Traction and Rolling Stock is where the largest absolute ‘gap’ in terms of numbers is expected, due to three factors, says NSARE.
- the age profile of this part of the workforce with significant numbers
of people over 55.
- the start of several concurrent rolling stock orders — IEP, Thameslink, Crossrail and Transport for London.
- the start of the retrofit of the European Train Control System to freight and passenger trains in anticipation of the introduction of the European Rail Traffic Management System from 2016 onwards.
NSARE’s overall conclusion is 'In view of the increased recruitment forecast, employers are likely to face growing difficulty sourcing suitably qualified and experienced staff in the years to come.'
Reader Comments:
Views expressed in submitted comments are that of the author, and not necessarily shared by Railnews.
Paul Costello, Melbourne
As a member of LinkedIn I raised this question of skilled railway resources nearly 5 years ago. I even took time out to write a LETTER to my local MP asking her what plans have the government got in place for the development future skilled resources. This issue has also been raised at a very high level through the Institute of Mechanical Engineers with the both the government and leaders in Industry as it was seen there would be a shortage of skilled resources through design, manufacturing and education as technical coarses were being cut back for more popular non technical subjects. Like minded people need to push this issue until this is taken more seriously. Written by a railway electrification engineer who like many other skilled and experienced Brits moved to Australia!
roger bunpter, bolton
Since Network Rail took maintenance back in house they have shunned the experienced staff (p way, s&t, ohle) and steadily pushed them out of the door and replaced them with well educated (in some cases) but totally lacking in any experience or in most cases common sense.
God help the railways
John Gilbert, Cradley, Herefordshire
Just a wee addendum to my sarcastic rant above. In order that delay may NOT happen to this large electrification programme, may we take it for granted that extra engineers will be brought in from Europe, an action which would prevent any threatened delay? May we ???????? It would be logical - to an outsider.
S Kelly, Glasgow
At last it seems that someone somewhere is beginning to sit up and take note of the chronic skills shortage. I feel it maybe too late however as some of the electrification projects are bound to suffer from the skills shortage. The supply chain is stretched at the moment, and these schemes have not even ramped to full capacity as yet
Chris Wells, Nottingham
I wonder; why would "the age profile of this part of the workforce with significant numbers of people over 55" necessarily be an issue? Economics currently dictate that the said profile will go on to work well into their 60's and possibly beyond in some cases, so do not write them off just yet! I propose that one of the biggest problems is moreover the 'knowledge gap' and that something radical must be done to speedily transfer knowledge pertinent to the rail industry from the heads of the experienced into the heads of the relatively inexperienced if we are to see the UK railway prosper again.
John Gilbert, Cradley, Herefordshire
Well of course there you are. If you insist on authorising nothing for ages, then switching suddenly to a large programme is going to present lots of problems, not least because people thinking of going into such work will say to themselves, "But what will happen afterwards, will these idiotic blow-hot, blow-cold politicians and civil servants then stop all continuation orders just as quickly, leaving us without a job? Can we depend on them? On past performance, NO!" Poor old Britain!
Melvyn Windebank, Canvey Island, Essex
Surely the example set by the new Tunnel academy could be built on with a new rail academy ?
Tony Pearce, Reading
Unfortunately this is because successive Governments have 'invested' in sending large numbers of students to University to study 'Media Studies' and other un-employable degrees. Society wants people who can build and mend things such as Electricians, Plumbers, Builders, Computer Programmers, Car/Train/Aircraft Mechanics. It would have been so more worthwhile to invest in Apprenticeships and other Techinal courses. But having a 'degree' sounds so important we have neglected the people who really earn money for our country.
Des, Stafford
Meanwhile, we have over 20% youth unemployment and a government that is pushing hard for those at the other end of the scale (i.e OAPs) to work until they drop. Seems crackers to me. Surely this where apprenticeships must come to the fore funded at the expense of benefits paid to those able bodied youth who choose not to work.
Many youngsters have no 'work ethic' having spent too long on theory in educational institutions with 'relaxed hours' and attendance. This makes for problems when moving to the disciplines and employment hours in the 'real world'. Starting work earlier with 'on the job training' and either day release for college (or evening classes) is an old approach that I feel would benefit many and help address this crisis.
Further and higher education is vitally important, but so too, is the need to address the practical skills shortages we have, otherwise I see growing youth unemployment and skills gaps addressed by further immigration.