Post on 02-May-2018
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED PAGE 1
Tony Walker
Deputy Managing Director
Toyota Manufacturing UK
Business Environment and Skills Group Tony Walker, Toyota
SMMT Open Forum, 04 November 2014
Business Environment & Skills Working Group
To ensure that the UK automotive industry has the best business environment to operate in
• ‘A supportive business environment in the UK is critical to sustaining the competitiveness of the sector and as the first choice for investment.’ Automotive Sector Strategy (July 2013) • Automotive Council created additional BE&S Working Group
• Technology Group – Encouraging R&D investment & collaboration on sticky technologies in UK
• Supply Chain Group - Strengthening the supply chain in the UK • Business Environment & Skills Group - Securing a business environment
that enables a competitive automotive industry in the UK
Automotive Sector Strategy (July 2013)- Business Environment & Skills Group
Business Environment & Skills Working Group
To ensure that the UK automotive industry has the best business environment to operate in
Skills
Chair: Jo Lopes,
JLR
International Competitiveness
Chair: Tony Walker,
Toyota
UK Business Environment
Chair:
James Stephens, Nissan
Europe
Chair: Andrew McCall,
Ford
Business Environment & Skills Group
Chair: Nigel Stein,
GKN
Business Environment & Skills
Working Group
Business Environment & Skills Achievements
• Successful Industrial Partnership EOP bid to address skills needs
• LEP leadership forum established to engage with Local Enterprise Partnerships
• Strong two-way dialogue between the automotive industry and government
New working group, but activity is already progressing at some speed
Skills Workstream
To ensure the UK automotive industry can support and develop the skills needed for sustainable success
Established with Automotive Sector Strategy - July 2013
Vision
• Ensure UK workforce has skills to support growing, increasingly technology focused, automotive sector • Industry in partnership with the Government will address urgent skills needs and develop a comprehensive talent pipeline for the sector
Priorities
- Consensus Automotive Skills Road map - Industrial Partnership (Employer Ownership) bid - Other Industrial Strategy skills action
Recruit more than 7,600 additional apprentices and 1,700 additional graduates over the next five years (till 2018)
Since March 2014:
Trailblazers delivering/
developing standards
Consensus skills roadmap
Create an Automotive Council scholarship scheme
Get top executives from the industry to personally engage with schools and their students
Explore options to widen availability of the modular Masters Degree Advanced Skills Accreditation Scheme
Other Work Group Priority Actions
Provide a “job family” view of
career opportunities in the
Automotive industry
DRAFT - MARCH 15
Provide roadmaps for career
progression & leadership in
Automotive industry based on
job families and descriptions
DRAFT - SEPTEMBER 15
Create new job descriptions and
codes created to support new
growth technologies
DRAFTS - FEBRUARY 16
Industrial Strategy Skills Actions Key pieces of work & milestones
Implement consensus automotive skills roadmap
Ongoing
Deliver the Automotive Industrial Partnership Employer Ownership of Skills (EOP) bid Automotive Skills Fund - £1m to support IP Infrastructure element Participation programmes - Traineeships, problem solving training, Maintenance Leadership, Meister Pruefung programme development and conversion up-skilling training
Automotive Industrial Partnership (IP) bid approved
Start delivery & communication -Progress IP contracting, establish the work stream teams and finalise bid content. -Finalise set up of Automotive Skills Fund £1m to support IP infrastructure element -Start IP participation programmes
Continue to participate in the next phase of See Inside Manufacturing
See Inside Manufacturing –October 2014 - Approx. 15 automotive companies engaged in initiative
Other skills deliverables AC scholarship programme, school & university engagement, Masters Advanced Skills Accreditation Scheme, careers advice
Ongoing
Progress to date S
kill
s
UK Business Environment Workstream
Driving strategic engagement with Local Enterprise Partnerships & supporting early market for ULEV’s
Established in Q4 2013
Vision
‘The Automotive Council will improve strategic interaction with the key automotive LEPs, devolved partners and other local decision makers, bringing them together with members of the full Council
twice a year to determine strategic priorities for local and regional implementation of the national strategy.’
Priorities
- LEP Leadership Forum - Ultra Low Emission Vehicles - Air quality - Intelligent Mobility
Local Enterprise Partnership (LEP) Leadership Forum - LLF
• Established January 2014
• 16 key LEPs with automotive footprint & vision
• Meets twice a year, plus specific meetings
• Strategic sector link to LEPs
– Implementation of sector strategy at local level
• Providing local input into national strategy
• Shaping local offer and funding priorities
• Overview document - One page summaries of key LEPs
LEP Leadership Forum
Next steps
LEP Leadership Forum (LLF) Nov 2014 – Meeting on skills/IP Jan 2015 – Next full LLF meeting
- Publish LEP one pager document - Develop 2015 work plan - Seek input from Devolved Administrations
Ultra low emission vehicles (ULEVs)
Continue to support the early market for ULEVs
- Finalise ULEV paper in discussion with OLEV and BE&S group
Air Quality
Develop Automotive Council position on
air quality
- Establish Air Quality subgroup
- Develop Air Quality paper
Intelligent Mobility
Review regulatory environment
- Establish Intelligent Mobility subgroup
- Develop Intelligent Mobility paper
- Ensure links with Technology Group
Europe Workstream
Assess state of EU relationship & identify improvement opportunities on engagement, regulation & trade to support the UK auto sector.
Established in December 2013
Vision
‘Maintaining proactive engagement with the European Union’
‘Continued access to the Single Market ‘Influential voice in the development of regulations’
‘Supporting key free trade agreements to boost exports’
Priorities
- Develop status report on UK-EU Auto Industry relationship - Improve UK engagement with EU institutions & processes - Develop EU regulatory reform proposals - Support key free trade agreements
Better engagement in Brussels
EU is a key part of UK business environment
• Automotive Sector Strategy (July 2013)
Strong industry narrative on Europe
• SMMT KPMG Europe report (April 2014)
Need for better industry / government collaboration
• To maximise UK opportunities & influence in EU
• Narrative – Engagement – Priorities
• Industrial policy, EU regulatory reform, Trade
Next steps
Status report on UK-EU Auto Industry relationship
- Develop common narrative on areas of agreement between industry and Government: Industrial policy, EU regulatory reform and trade policy
UK/EU institutional engagement - Workshop on post-2020 CO2 discussions as test case for early Government & industry engagement
Develop reform proposals for UK/EU Institutional engagement
- Discussion paper on EU engagement & influencing along common narrative
EU regulatory reform proposals
- Develop regulatory reform proposals
- Feed into BIS EU Growth team & Better Regulation Executive
UK International Competitiveness Workstream Produce a weighted numerical scorecard with accompanying narrative and case studies to illustrate specific areas of importance to UK automotive
Established end March 2014
Vision
“partnership between Government and the Industry”
“…become the most competitive place in Europe for manufacturing, R&D, inward investment and re-shoring”
“track and monitor our performance, showcase the UK’s strengths, and provide quick and relevant information in advance”
Objective
1) Objective set of KPIs to guide industry and government on positive factors we must maintain, and negative factors we need to improve
2) Develop a set of “killer facts” to demonstrate the UK’s competitive advantages to key decision makers
UK International Competitiveness Workstream Produce a weighted numerical scorecard with accompanying narrative and case studies to illustrate specific areas of importance to UK automotive
Progress to date • Workstream members (OEMs; suppliers; BIS; SMMT) meeting regularly to confirm
content of matrix • Competitor countries & main KPIs identified and agreed – source for majority of KPIs
identified
Manufacturing
competitiveness
R&D
competitiveness
Business
environment
Industry
environment
Extent that UK is a competitive
location for producing vehicles
engines & parts
Extent that UK is a competitive
location for doing / localising
R&D
General attractiveness of the UK
as a place to do business in
automotive
Health of the UK automotive
sector – result of sector strategy
• All EU countries with >500,000 vehicle annual production
• All countries producing > UK • BRIC & MINT countries • Selection of new EU entrants • S Africa; Australia
EU15 Germany
Spain
France
Italy
EU- NEW Czech Republich
Slovakia
Poland
Romania
Bulgaria
Other Europe Russia
Turkey
Asia-Oceania China
India
Japan
South Korea
Thailand
Indonesia
Australia
Americas US
Brazil
Mexico
Canada
Africa Nigeria
South Africa
Countries KPI categories
Basis: Competitors and KPIs which used by business for investment decisions
Developing concrete recommendations to government
Development of clear and convincing evidence-based narrative
UK International Competitiveness Workstream Produce a weighted numerical scorecard with accompanying narrative and case studies to illustrate specific areas of importance to UK automotive
Next Steps
Confirming the KPIs are the right ones to track Cross-checking to a wide range of
companies’ sourcing policies
Weighting the KPIs according to importance for investment decisions
(Capacity increase / R&D / new plant etc)
Using real case studies to confirm real world importance
Business Environment & Skills Working Group
Thank you