Section Contents
People often talk of a skills crisis, although we believe we’re not there yet.
Cogent Industries
Polymers
The Polymer industry comprises four discrete processing areas: Plastics processing, Rubber processing, Polymer Composites processing and Signmaking. Over 7,500 companies operate within the sector employing some 286,000 employees. This figure rises to approximately 400,000 employees when secondary operations are taken into consideration. The industry is extremely dynamic, being subject to many changes and opportunities arising from technological change, development of new materials and processing technology; not least, the development of new products and changes in response to consumer requirements.
These industries require innovators, technologists, designers and highly-skilled processing technicians to remain at the forefront of developments and changes in the world demand for more versatile, lightweight, low-cost and energy-saving products and applications.
Trends
Total turnover in the Polymers Industry 1995-2006
Approximate gross value added at basic prices in the Polymer Industry 1995-2006
Total average employment in the Polymer Industry 1995-2006
Total turnover in the Polymers industry has remained stable since 1998. Gross Value Added in the industry has also remained stable. Total employment in the Polymers industry has decreased since 1998.
Research and development
| Total Expenditure | UK Government | Overseas | Own funds | Other UK Businesses |
|---|---|---|---|---|
| £90m | £1m | £31m | £58m | £1m |
Source: R&D in UK Businesses 2006, ONS, January 2008
R&D in the Polymers industry is predominantly funded by the industry itself, 64% 1,000 employees are employed in R&D activity in the Polymer industry There has been an overall increase in R&D in the Polymer industry since 1998.
The skills gap in the polymer market
Source: Labour Force Survey (Q1-Q4 2007)
For direct employment in the Polymer industry:
- There is an under supply of people qualified to S/NVQ level 2 and 3 compared to the proportion of jobs at those levels
- There is a 28% deficit of people qualified at S/NVQ levels 2 and 3
The Industry 2020
The polymer industry companies that prosper in the future will be lean and efficient in both manufacturing and administration, innovative with both design and materials and will ally themselves to winning markets, customers and products. Also in the UK market, locally produced products will be small quantity and higher quality with high volume to price ratio.
Priorities
As with other Cogent industries, there remain skills gaps at higher level, and the polymer industry also requires people with good knowledge of competitive business techniques. Other particular priorities include:
Green Issues – Plastic bag taxes are proposed, recycling has some way to go to happen in a constructive and coherent manner, and in the meantime, waste continues to be dumped into landfill. These issues suggest opportunities in new areas of business, with associated needs for new high-level skills.
The cost of crude oil has a direct effect on the cost of all polymers and as such will cause an increase in plastic product prices affecting all other streams, from vegetable and fruit packaging to medical supplies and white goods.
Pressures from eastern economies, particularly China and India, which are often seen as an obstacle for the industry, but this may be overstated as they also have the same cost pressures as the UK and much the same skills shortages. The main difference, however, is that these countries are investing more in automation and new technologies than is the UK, with major implications for skills investment.