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Skills Strategy Implementation

Skills Strategy Implementation. Neville Simpson CEO Master Electricians ECANZ 30 November 2012 CONSTRUCTION SKILLS SUMMIT. Skills Strategy Implementation. Objective

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Skills Strategy Implementation

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  1. Skills Strategy Implementation Neville Simpson CEO Master Electricians ECANZ 30 November 2012 CONSTRUCTION SKILLS SUMMIT

  2. Skills Strategy Implementation Objective • Overarching objective is to ensure the sector has the skills and expertise to develop the economic and social infrastructure that New Zealand needs. • Better promotion of the Industry • Better Education of participants • Better training to career pathways • Better remuneration • Better Industry Association alignment

  3. Skills Strategy Implementation Review • The barriers to starting a business in the sector are low • Lack of business acumen leads to price wars and gives consumers unreasonable price expectations. • This race to the bottom, with government assistance, can lower the quality of work and product. • Compliance comes with costs but also benefits, lowest price mentality of contractor and customer needs to be countered • SME factor - “herding cats”

  4. Skills Strategy Implementation • Business sees labour as just that and not an investment. • Government does not help as it drives the margins down through its own departments and their procurement policies. • Important things like company culture, training, career pathways are not being created. • Government need to step up and consider some % of their projects only available to companies that employ apprentices.

  5. Skills Strategy Implementation • Do not waste money and time trying to attract traditional non sector workers, attract them by providing the right incentives, good wages and salaries! • ITO’s are charged by government to target the under represented in the sector, is this a waste of money that could be better spent upskilling those already in the Industry? • By improving the Industry, its qualifications and productivity, it is arguable that they will come to the Industry because it is the sector experiencing productivity growth. 

  6. Skills Strategy Implementation The current review of qualifications is an important step for two reasons. • Removes the myriad of similar qualifications. • Discourages those who do not succeed. Trainee and employer penalised • Industry Advisory groups are critical, involvement from all stakeholders in them is crucial

  7. Skills Strategy Implementation Action: Industry need to train its participants • Train your staff: They may or may not be your next competitor at least they will be better skilled and a positive for the Industry. • Learning by mistakes are costly not only for you but the Industry • Specifics…………………

  8. Skills Strategy Implementation • Train how to run a business • Train about hourly rates and margins • Train about benefits of HSE • Train about contracts • Train about up selling

  9. Skills Strategy Implementation Summary • Skills and Productivity are linked. • The Construction Industry needs to act and begin to educate • Sector trade associations need to align their thinking to the above • Improving business acumen will improve sector returns. • However until pay and charge out rates in NZ are realistic this problem will not be solved

  10. Skills Strategy Implementation Master Trades Group • Electricians, Plumbers and Builders getting together to develop a basic business courses for their members using external providers. • Incentives are needed and improvements in results are paramount • Networking, cross pollination of skills and ideas • Strong advertising creating a brand that customers trust • Providing guarantees for trades and customers • Aligned HSE

  11. Skills Strategy Implementation Electrical Industry • As apprenticeships were removed from the radar and many traditional training organizations were privatized, schools and parents pushed “labour” towards tertiary qualifications. • ECANZ had the foresight to recognise this as a problem 20 years ago and created its own training company etco* • etco* has provided a steady stream of skilled young people for the electrical industry for over 20 years.

  12. Skills Strategy Implementation ECANZ specifically has targeted its members with Roadshows on • Know how much per hour it costs to run your business. • Exit strategy, the day you start business is the day you should be planning to sell it. • Construction Contracts Act, Review of SCC • Exit Strategy for me now, happy to accept questions • Thanks

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