Angela Reich, Director, Education and Engineering Development 21 February 2013

1. Engineering UK Education & Skills PanelThales UK: Employer perspectives on Education developments and their needs Angela Reich, Director, Education and Engineering Development 21 February 2013

2. Contents • Thales UK: who are we ? • What do we need ? • Implications for Education

3. Thales UK: Who are we ? World leaders in mission-critical information systems

4. Thales UK Thales UK Thales in the UK • Circa 8,000 employees • 13 key locations • Circa 4,000 engineers & technicians • 90% qualified to degree level or above • Invested more than £3bn in UK over last 10 years • Annual sales: £1.5bn • a substantial proportion of UK sales are exports • MoD ranks Thales UK as its highest performing key supplier • Over 120 years history in Thales UK

5. Thales UK Key UK sites • Basingstoke • Belfast • Bristol • Cambridge • Cheadle Heath (Manchester) • Crawley • Doncaster • Glasgow • Leicester • London • Reading • Templecombe • Weybridge

6. Thales UK How technology from Thales is used in the UK Aerospace • Flight simulators • Air navigation • Avionics • Air traffic management • Collision avoidance • Passenger terminal security • Airport crisis management • In-flight entertainment • Satellite comms • Cabin connectivity

7. Thales UK How technology from Thales is used in the UK Defence • Surveillance • Force protection • Complex weapons systems • Air command • Mission management • Air navigation • Information management • Military avionics • Radar • Unmanned air systems • Electronic warfare • Optronic systems • Naval communications

8. Thales UK How technology from Thales is used in the UK Security • Transport safety • Cyber security • Counter terrorism systems • Monitoring & control systems • Chemical, biological, radiological and nuclear (CBRN) • Power stations • Network security • Infrastructure protection • Revenue management systems • Secure transactions • Telecommunications

9. Thales UK How technology from Thales is used in the UK Transport • Urban and mainline signalling • Train control, axle counters, interlockings, train protection and warning systems • Services, supervision and control • Integrated communications • Security and information management • Transport information and telecommunications systems • Technological solutions for roads

10. Thales UK Thales UK Supporting graduates & apprentices • 130 graduates in 2011/12 • Two year Graduate Development Programme • 50 apprentices in rail business and aerospace Advanced Modern Apprenticeship, inc Level 2+3 NVQ Educational links • Participate in National and Regional Big Bang • UK sites support National Science & Engineering Week activities with local schools each year • Sponsorship of Scottish Technology Prize (Laser Applications)

11. Summary • We operate in multiple technology areas • Key disciplines: Systems, Electronic & Software engineering • We are geographically distributed • We perform specialised manufacture • E.g. periscopes, simulators, radar • Outsource non-core e.g. pcbs, power supplies, chassis

12. Thales UK: what do we need ?

13. Needs • Skills replacement for maturing population • High-calibre engineers • Graduate trainees • Experienced hire • Strategic target intake of 90 engineering graduates per year • Difficulty recruiting the number and calibre of engineering graduate engineers required, particularly in software • Internships used to ensure student pipeline: better conversion rate than sponsorship • Small numbers of apprentices focussed on shortages & skills replacement

14. Engineering Priority Skill Needs • Systems Engineering Managers • Systems engineers • Degrees in computer science & electronic engineering • Software engineers • Degrees in computer science & software engineering • Emerging technologies e.g. cyber-security • Safety & Airworthiness • SCADA (Supervisory Control And Data Acquisition) • Nuclear control resilience : Coral • Synthetic Engineering/Simulation • Rail test and commissioning • Potential to use apprenticeships here

15. Thales UK: implications for education

16. Spheres of Influence ENVIRONMENT Government Policy Population Demographics Economic context INFLUENCE Image Attractiveness of Thales UK Security issues Public perception of Engineering Numbers studying STEM at school Quality of STEM teaching in school CONTROL Job, Salary, Career progression, Development Satisfaction, Work interest Graduate programme, Student internships Ensure strategic graduate numbers Engineering careers advice Internship programme STEM Pipeline Uni School Other Cos Leave Job Other Cos Retirement Maximise impact of Thales effort Opportunity to Increase STEM Outreach & School quality Low influence from STEM Outreach because of numbers reached. Influence weaker in earlier years STEM Outreach Thales UK STEM Pipeline: Analysis

17. Universities • We focus on universities considered high standard • E.g. Russell Group • Need more good students taking key degree subjects • E.g. electronic engineering • Need to keep standards high • We are concerned that “employability skills” may be at the expense of technical skills - our graduate development programme develops soft skills • It is difficult, at this stage, to predict the long term effect of the £9k tuition fees • There has been a drop in applications to university • There are currently too many universities, too many students, and too many courses which should not be degree level • If the impact of the rise in fees ensures that students are going to be more rigorous in their choice of degree and institution, this is a good thing • … Still worth pushing for need for top academic achievers … • Thales UK Head of Engineering

18. School Qualifications 1/2 • A rigorous education system • Equip children for the world of work by high standards of literacy and numeracy • Re Michael Gove educational reforms - it is difficult to comment further until we are clear on what the reforms will look like going forward. • Focus on high standard in the core subjects such as English and Maths • … as a graduate recruiter I am sometimes horrified by the poor quality of applications we receive – particularly in English spelling and grammar. • Thales UK Head of Graduate Resourcing & Development

19. School Qualifications 2/2 • Neutral regarding modular approach vs final exams • Forgetting vs cramming • Need consistency between schools and universities • Neutral re engineering diploma • No noticeable impact so far • DO NEED Software engineering/programming experience in schools • Where are the good quality teachers coming from ?

20. Careers Advice • Schools: KEY AREA FOR IMPROVEMENT •  Careers advice in schools is either extremely poor or nonexistent • No perceptible improvement in last 30 years • The push of pupils to University ignores accurate or appropriate guidance • Not all sciences are equal • In the minefield of HE/FE the lack of good careers advice in schools needs to be addressed • This cannot be the responsibility of industry alone • Need coverage of all pupils, not just in industrial centres • Professional institutions/bodies should work together to ensure common, consistent message • Careers advice in Universities is adequate

21. Key Points • We need delivery from University – do the job • Raise UCAS tariffs, challenge schools etc. as needed to create the graduates needed • We should not need to understand the school system • Stability & Consistency • Simplicity