Reports of a short-term recovery in the British manufacturing sector are heartening but will its long-term health be endangered by the introduction of higher tuition fees?
As it is, some firms are already struggling to find skilled workers so surely putting higher education out of the reach of so many young people will shrink that talent base further?
This week, Parliament voted through Government plans to raise the cap on tuition fees at English universities, allowing them to charge students more from 2012. The Government has said there will be deep cuts to the teaching grants for universities, which may mean institutions will aim to charge more to make up for the lost income. This could in effect place higher education out of the reach of many talented young people from less-affluent backgrounds.
In a recent report, ‘Manufacturing Outlook’, the Engineering Employers Federation said a survey of more than 500 manufacturing firms revealed that British manufacturers are recruiting new employees and making some new investments in response to the stronger than expected recovery in production.
It found the balance of companies recruiting improved again significantly to a record balance of +23%, the strongest in the survey’s history.
However, that good news was tempered somewhat by the EEF’s Chief Economist Lee Hopley who said, “The strong bounce back has also brought challenges with some manufacturers’ struggling to get the skills they need and facing rising costs.”
Cuts in higher education funding may make it even more difficult for those firms to recruit the high performing talent they need in the future. While other major manufacturing nations like Germany, France, Canada, and the US have invested in higher education in response to the downturn, we seem to be going the opposite way. Is this wise?
Talent represents a critical driver of operating results, and the associated employment costs represent one of the largest components of operating expense for many companies. Effective talent acquisition and management is a fundamental prerequisite to achieving these goals.
In developed markets, science and engineering graduation rates are not keeping pace with baby boomer retirements, workforce expectations of employment are changing dramatically, jobs require more complex skill sets, and the competition for talent from other industries is increasing.
Lauder Beaumont Associates works with manufacturing organisations to help them secure business critical talent. Call us now to discuss how we can help you.
