Northern Ireland Assembly - Committee Motions

Schrader Electronics Ltd submission
to the Northern Ireland Assembly
Committee for Education
18 April 2008

Schrader Electronics Ltd designs and manufactures a world leading range of Tyre Pressure Monitoring Systems that we distribute globally to the leading automotive manufacturers. Our success to date has been built on the strength of our people in our high tech R&D Centre, state-of-the-art manufacturing facilities in Antrim and Carrickfergus as well as our sales and marketing teams in world-wide locations. The design and development of our products is an ongoing process which enables us to continue to meet changing customer requirements and to maintain our competitive advantage through a range of new technologies.
Schrader Electronics has undergone significant growth over the past eight years. We envisage that this growth will continue over the next five years as we plan to double our business. Workforce numbers have increase from 33 in 1997 to over 1000 employees worldwide today (Appendix 2).
During the last four years we have noticed a steady decline in the number of applicants for Engineering and technical posts. In the year 2000 there were a large number of engineers and technically trained staff available on the job market and from the local universities. Today over fifty percent of recruitment campaigns for engineers and technical staff have had to be re-advertised because suitable candidates cannot be found (Appendix 1, Paragraph 1.2 and Appendices 4 and 5).
To address the skills gap at the technician level we have introduced an apprenticeship programme. This ensures that we have a pool of suitably qualified and skilled candidates to meet our technical requirements. We view this as a partial remedy to the problem and we believe more needs to be done to attract more young people to technician roles. (Appendix 1, Paragraphs 1.3 – 1.6)
Schrader Electronics is concerned about the advice and information being given to students about career choices. We believe that parents, students and teachers need to be made aware of the rewarding careers that are available to students studying science, maths and technology subjects. We have actively pursued a range of opportunities to present this message to this audience. (Appendix 1, Paragraphs 2.2 – 2.7)
A key issue for Schrader is the ongoing ability to continue to recruit skilled graduates. Appendix 3 outlines the source and location of graduates currently employed within Schrader. We currently employ 241 graduates across a range of disciplines. We have worked closely with the local Universities to address the concerns we have about the steadily decreasing numbers of students pursuing engineering courses relevant to Schrader Electronics; in particular those studying electronic engineering.
We have developed a strategy to target both University faculty staff and students to ensure that Universities are producing candidates with the appropriate skills and to make students more aware of the vast range of opportunities that exist within our business.(Appendix 1, Paragraphs 2.8 – 2.14 and Appendix 6)
In recent years we have noticed a decline in the number of applicants for hourly paid production posts. This is particularly the case in our Carrickfergus facility. We have had to rely on the recent influx of non nationals to fulfil these roles. We have concerns about the short term nature of this arrangement. (Appendix 1, Paragraph 3 – 3.2)

Appendix 1. 1. Recruitment Issues

1.1. Schrader Electronics has undergone significant growth over the past eight years. We envisage that this growth will continue over the next five years and we plan to double our business. The rate of growth has presented us with a range of challenges.

1.2. Engineering and technician posts are critically important to our business. We have noticed a steady decline in the number of applicants for posts in these areas. Along with our operators and support staff they provide Schrader with the knowledge base and practical ability to continue to deliver innovative and market leading products. What has become apparent over the last four years is the increased difficulty in recruiting staff that already have the required skills to fulfil business critical roles. We have had to widen our search for potential employees across the EU. Schrader Electronics plans to continue with our rapid rate of expansion over the next 5 years and the current difficulty in recruiting appropriately skilled employees is a cause for concern.

1.3. We have been extremely proactive in looking at ways in which we can help to improve our situation. In addition to the community outreach measures listed below we have taken a number of practical steps to address skills gaps. One of the most successful to date has been the efforts to address the skills gap that exists at technician levels across the organisation. In 2004 we initiated an apprenticeship training programme. This programme has been critical in ensuring that we have a regular flow of multi skilled technicians available to meet our expansion needs. To support this effort we are also currently participating in the NI Maintenance Strategy Group which works in conjunction with two of the regional colleges to up skill technicians in both mechanical and electrical disciplines.

1.4. We have also actively participated in recent efforts to bring careers teachers and industry together through the Engineering Training Council in an effort to communicate the positions available to those who do not wish to move into full time third level education.

1.5. In 2007 we held a number of meetings at our Antrim site with lecturers from the two local Universities and a number of the regional Colleges to discuss ways in which we could work together to ensure that appropriately skilled students would be available in the long term. These meetings resulted in a greater understanding about the needs and concerns of all those involved and these networks now play a key role in our graduate development programme and our apprenticeship training scheme.

2. Community Outreach Measures

2.1 In order to address the Company’s concerns regarding the wider availability of engineering and technical skills among those completing their education, the Company has adopted a two tier approach to community outreach.

2.2. The first tier revolves around making students, teachers and parents more aware of the exciting opportunities that currently exist in the engineering and technology fields. It is our opinion that this message is not making its way though to our future potential employees. This will have a direct impact on the likelihood of students pursuing courses that will provide them the skill sets we are looking for and thus ultimately making it more difficult for a knowledge based organisation like our own to continue to compete at our current levels.

2.3. Schrader has welcomed students from secondary level education into our facility for factory tours and Company presentations. We have recently had students visit our Antrim site from Antrim Grammar, Parkhall High School, Banbridge Academy, Magherafelt High School and St Benedict’s. Where possible we have also provided students with information on Schrader initiatives that are relevant to them in their current studies such as our work towards environmental standards. We believe that this allows them to practically apply their learning to real life examples and that it will make the learning more relevant to them increasing their interest in areas important to us.

2.4. Schrader Electronics is also concerned about the impact that the current decrease in the number of students at a secondary level studying maths and science will have on our future ability to recruit appropriate skilled staff. We believe that these subjects are essential in providing students with the necessary knowledge to pursue careers in engineering and technology and that they are critical to Schrader Electronics’ future. As part of our commitment to improving this trend we agreed to support Ballycastle High School’s bid for specialist status in science. We believe that by supporting such efforts we can bring wider attention to a skills gap that has wide reaching implications for a number of knowledge based companies in Northern Ireland.

2.5. As part of our awareness raising efforts we have attended events that are likely to increase the profile of engineering and technology as viable career options. We recently presented at the launch of Connected which is a new initiative by Queen’s University, University of Ulster and the six new Further Education Colleges, to help businesses improve their performance by providing access to a broad portfolio of knowledge and technology support services. During our presentation we illustrated the practical benefits that we have realised through or ongoing work with local education at all levels and how it has had a direct impact on assisting us in our continued drive for innovation.

2.6. In addition we met with students from a range secondary schools through the Business Education Partnership careers event at Ballee Community High School. This provided us with the opportunity to talk to students and teachers directly about career choices before they have formalised their routes of study.

2.7. Through our work on the Sentinus programme we have mentored students from Antrim Grammar school on a practical engineering project. In additon we plan to roll out manufacturing technology projects with other local schools. Through this work we aim to illustrate the practical application of engineering in a manner which presents an exciting challenge to students in secondary education.

2.8. The second tier of outreach measures is aimed at students currently undertaking post secondary education and at the departments at the third level education providers themselves. Within University of Ulster we have been very proactive in presenting students with information on the career opportunities that exist with Schrader Electronics. Employees from Schrader Electronics regularly attend the Industrial Advisory Board of the University of Ulster which allows us to offer opinions on the future direction of courses run by the University in addition to agreeing an overall unified approach in strategy regarding attracting students to such courses.

2.9. With both Queens University and the University of Ulster we have offer a number of academic prizes to students who are currently undertaking courses in engineering. Prize winner are invited in for one to one tours of our facilities where they have an opportunity to see first hand how they can apply their knowledge to our business.

2.10. We have developed a structured graduate development programme which aims to offer 10-15 new engineering graduates the opportunity to participate in a programme to develop their skills for long term leadership roles. In addition, our talent management programme allows new graduates and current employees to avail of specific development opportunities that directly assist them in developing structured career.

2.11. Each year we offer students from the two local universities the opportunity to attend factory tours. Over the past four years we have had upwards of four hundred students visit our sites locally. In addition we regularly attend presentations at the local Universities to raise awareness of opportunities that exist at Schrader Electronics as well as offering students advice on guidance on a range of issues from interview techniques to CV preparation.

2.12. In order to effectively create an engineering talent pool, we offer a range of year out placement opportunities for students undertaking engineering and technology courses. This stream is something that has provided us with a number of employees who have subsequently been recruited full time through out graduate development programme on completion of their studies. To date over twenty-five of our engineers and support staff have joined the Company through this route. We plan to continue to expand this offering to formally include summer and holiday placements.

2.13. In 2008 we agreed to sponsor the University of Ulster’s Formula Student racing team. We believe that this is an excellent opportunity to illustrate the practical application of engineering in an exciting way. We believe that through such events we can help change some of the outdated notions that exist regarding what is involved in engineering.

2.14. Recent evidence suggests that final year students in this area have dropped by over 60% over the past six years. This has led to increasing competition for an ever smaller pool of suitable applicants.

3. Production Employees

3.1. Among our hourly paid population of 480, migrant workers now make up 29% of the workforce. Schrader Electronics makes a significant investment in both time and money in all of our hourly paid employees We offer NVQ’s to our hourly paid population and we aim to have people internally promoted through Machine Operator and Team Leader grades where possible. The majority of our migrant work force has been transient in nature and we are continually losing skilled workers who we are having some difficulty in replacing.

3.2. We have been active in pursuing the Bridge to Employment Scheme as a way of increasing the pool of candidates that are available to us for production operator roles. To date the three exercises which we have undertaken have been somewhat successful but it is clear that this will not be enough to address the skills shortages we are currently facing in this area.