Manufacturing Leaders

10 Years of Leading the North East Automotive Alliance

• Mark Bracknall • Season 11 • Episode 2

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Celebrating the 100th episode of the Manufacturing Leaders Podcast with Paul Butler, CEO of the North East Automotive Alliance, who shares insights on the strength and future of the region’s automotive sector.

Key Highlights:

  • £10.3bn turnover, 27,000 direct jobs, and 12 vehicles produced per employee (UK avg: 3.9)
  • North East leads the UK in automation with 500+ robots per 10,000 workers
  • Nissan Sunderland builds 36% of all UK passenger vehicles
  • 25% of February’s vehicle sales were fully electric
  • Sector needs 20,000 new recruits in five years, with digital tech and skills at the forefront

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Please subscribe to the channel for more content! Theo James are a Manufacturing & Engineering Recruiter based in the North East, helping Manufacturing and Engineering firms grow across the UK. Please call us on 0191 5111 298

Speaker 1:

Hello and welcome to the 100th episode of the Manufacturing Leaders Podcast with me, mark Bracknell, my director of Theoday's Recruitment. I absolutely can't believe we are on episode 100. It's a privilege, it's an honor. I never for one second thought we'd be in a position where we'd record 100 episodes, 100 amazing leaders within manufacturing engineering. The one mission, the one goal to start this podcast was to just add value, was to add value and get the industry to collaborate and to share more. There are some absolutely amazing people within manufacturing and engineering. This is a fabulous sector I'm extremely proud to work in. So the only goal was to share the thoughts and experiences, journeys, those people who have have done so and I'm incredibly proud of of what we've achieved over a three-year period. So thank you very much for for anyone who has been a guest, has been a listener, has shared, has commented and just taking part and being part of this, this tremendous community with the manufacturing leaders. So thank you you very much. Off the back of that, we are about to announce and we are organizing a big event which we'd love people to attend, and more details of that will follow. But without further ado, this is the 100th episode and the guest today is Paul Butler, the CEO of the Northeast Automotive Alliance, someone who I couldn't wait to have on, unless you've lived under a rock and you don't live in the Northeast. The NEAA do a tremendous job of collaborating within the automotive industry the region's finest industry, shall I say, or by far the biggest industry in the Northeast. So I thought it was great timing to have Paul on, because we're going through a difficult period within the industry right now, mainly because of the electrification process, and that has caused some headaches in automotive and there's been a lot of doom and gloom, a lot of negative news out there. So I wanted to bringul on just to ask him some questions and ask him his thoughts about where things are, and I've left this episode, which I've just recorded, feeling so much better about the northeast automotive industry and just manufacturing in general, because actually, yes, there's some challenges ahead, but the opportunities paul talks about tangible, specific opportunities and achievements happening right now has left me feeling so much better, and he talks so extremely well, with facts and figures, about what's happening right now and what will be happening next two, three years. So I urge you to listen to this episode or watch this episode, whatever you prefer to do and I promise you will feel excited about what's to come for this region and what's to come for this industry. So, without further ado, please sit back, grab a coffee and watch, listen and please, please, please, just hit that like and subscribe button and, once again, thank you very much for being part of this community. Hope you enjoy the episode. And, once again, thank you very much for being part of this community. Hope you enjoy the episode.

Speaker 1:

Excellent, a massive warm welcome today to Paul Butler, the CEO of the North East Automobile Alliance. How are we doing, paul? You all right? Very well, thank you, yeah, and thank you very much for coming on, which is the 100th episode of the podcast, so it's a very special day today, so I appreciate you being the 100th episode. So, yeah, thank you very much for that.

Speaker 2:

No problem at all. Congratulations on 100 episodes. Thank you, mate.

Speaker 1:

Really appreciate it. And I've got to ask you the same question, the same question as everyone that comes on what does it mean to you to be a leader?

Speaker 2:

So I think from my perspective, we've got a fantastic team here at the Northeast Automotive automotive alliance.

Speaker 2:

When we set the nea up and we were looking at the skill sets we required to help deliver support to the sector, for me it was important to make sure we we brought in the right people with the right skill set. So our team has very different backgrounds and my role really is to try and provide a framework and an environment that enables them to deliver to their best of their abilities to the areas that members need the support area so work very closely with the team. My style of leadership is quite hands-off. We've made sure we brought in people who are able to think for themselves, who are able to make decisions. So I only get involved from a longer-term strategic perspective, but then if there's anything where we have any challenges, so for me it really is about just making sure we've got the right people, the right team with the right skill sets to deliver against the members' needs but then provide that environment to give them the free reign to really excel in the area they've been brought in for.

Speaker 1:

Nice and look, this is a. I can't wait to pick the journey of the NEA and talk about some key points. But because this ultimately, ultimately, you know, started out as a very much a management podcast, I always like to sort of pick up on a couple of things there. I'm really interested in the fact that you mentioned that hands-off approach as well, because that's almost the the goal for law leaders. You know, how can we be, how can I be hands-off? How can we be more strategic? Strategic, but it's, it's a goal that it's almost a goalpost that keeps moving a lot of time for a lot of leaders, because something happens along the way. Was that? You know you've been there for 10 years. Was that always the goal for you to come in and get to that stage, or was it something? I mean, has it taken you a long time to get there, I guess, and how?

Speaker 2:

it was the. It was the goal from day one. So, um, I remember sitting down with the board and when we were talking about the resource we needed for the NEAA the level of people we were initially talking at I would have spent my time managing them on a day to day basis and my argument back to the board at the time was we need people who are capable of delivering and capable of making the right decisions in their particular field. So I pushed to to make sure we we had a? Um a competitive package that we could attract the right people. So it was right from the outset.

Speaker 1:

I knew I needed people who could deliver in their area of expertise and only required support as and when needed yeah, yeah, you know, I think there's already a lesson there, people, because a lot of leaders come in and just think they have to do it with themselves, they have to leave from the front. But I think personally, the best leaders I've had on here echo what you just said there. The job is to almost make their role redundant to some extent and then just be good facilitators with a good team. It's just. It can be challenging to get there.

Speaker 2:

Yeah, I mean, I can give you an idea of of where this all came from. So when I first started out in my career, I was a management trainee and, um, I was working within a furniture department and we set out and when, when my boss was away, we broke all the sales records for the department and when they came back, they were well, how have you done that? And I said, quite easy, we've got two absolutely fantastic sales people. So I made sure they were on the shop floor all day, all the time getting the sales, and then everyone else was just working around doing the the back back office functions we needed to. So for me, it is about putting your best foot forward and making sure you've got the right skills in the right place to deliver against the needs. And for me, I only need to get involved, as I say, if there's, uh, either longer term strategic thinking or if there's any, any particular issues we need to address at that, at that point, yeah, good point.

Speaker 1:

Um the nea, unless, unless people have, if they're in the northeast, unless they've lived under a rock for many years, they'll know. You know a fair bit about the nea and what it does for the um the region, what it does for the automotive industry in particular. Um, why? What led you to starting 10 years ago? What was the? What was the goal there? How did it happen?

Speaker 2:

so at the time I was working with nepic, which another very successful cluster across the northeast, northeast process industry cluster, um, and I was leading a, a project that's um, linked to the delivery of the uk trade and investment program for the northeast region. So ourselves well, nepic at the time, rtc North and the Chamber of Commerce had come together to deliver that. Each of the three organizations had their own particular area of activity and NEPIC was around developing international trade through clusters, something Epic had done extremely well. And as part of that we said we'd work with industry to form a cluster if one wasn't in existence, knowing full well there was nothing in automotive at the time. So we brought in a guy called Tony Sargentson who worked for EEF at the time or previously worked for EEF. He knew all the manufacturing people across the region. So we got a collective together from automotive. We talked to them about the opportunity of a cluster and the benefits of clustering and at that point there was enough interest in that, particular from Nissan and Kevin Fitzpatrick who was the VP for manufacturing at the Sunderland site. And once we'd got that interest I then started working with a group just to make sure they set the cluster up against European best practice.

Speaker 2:

At the time I was a benchmarking expert for cluster on cluster management excellence, on a benchmarking expert for Europe on cluster management excellence. So I started working with them just to make sure they set it up against European best practice, giving the best chance of of success. And at that point I was approached and asked whether I'd be interested in the job. So I applied. I think there was two or three people interviewed and thankfully I was successful. But the opportunity to move in and set something right from the outset was just too good to miss and it's been a whirlwind ever since. I mean 10 years. We're now 10 years in and just think about the, the work we've covered off in in that period. It's phenomenal. But I do know there's still loads for us to be able to achieve in the near future as well and you mentioned that whirlwind.

Speaker 1:

I think we look at the dates. So my business, theo James, is probably five months um behind in terms of when started. So and I'm proud of what we've achieved. Just you know, just as I'm sure you are. That being said, I think if someone has said in this next 10 years, you're going to deal with Brexit, covid, semiconductors war, I'd probably have gone no, you're all right, I'll leave it a bit. I mean, is that almost? How has it been navigating all those external pressure things that are completely outside your control?

Speaker 2:

It's tough, but actually that's where a cluster comes to its form. So in periods like COVID, as an example, when there was a downturn in manufacturing, companies needed more support, so actually our workload went through the roof at the same time. So I think that's really where we add value when companies do see we've got particular challenges. So, as you say, we've gone through the European referendum, brexit, we've gone through semiconductor, we've gone through COVID and now we're going through that transition to electrification, so we've constantly had challenges for the sector to address. However, I think as a collective, the northeast automotive sector is very resilient. There's a real determination to make sure we succeed as well, and we come together as the collective. Through the NEA. We share information, ideas, knowledge, et cetera to help people navigate these difficult times.

Speaker 1:

Yeah, and I completely agree with that. I think it's perfect timing where, because I think when business is just great and everyone's doing well, it's just you head down, you're in the day-to-day. It's probably only when things aren't going your way and there's things happening, you put your head above and you've got to work, probably more strategically, I guess. So I completely agree. And look, this is still my concern with the northeast. Well, just manufacturing in general, I still don't think it collaborates and shares as much as it should do. You know, I think that you know the automotive industry, I think actually does extremely well because it's it's created that community and I think nea have been a massive impact to that. There's pockets of that happening outside of the automotive, but not the same, it's different, I think.

Speaker 2:

Yeah, I'd agree. I mean, we've seen NEPIC. Nepic's been a very, very successful cluster, took a lot of learning out of my time my 10 years at NEPIC into the NEAA and we do have some very good clusters. However, I do think there's another opportunity to do more collaboration across the region and I think NECA does provide us that opportunity, and I'm really hopeful and excited by the formation of the North East Combined Authority. I do believe that it's a once-in-a, once in a lifetime opportunity for the region to come together and really drive the the region forward. We've been working very closely with them, um, particularly around innovation and business, the economy, uh, industry requirements, skills, etc. So, um, I'm, as I say, I'm really hopeful that we we actually come together as a region a lot more, share information, knowledge, ideas, et cetera, and really drive the sector forward.

Speaker 1:

And that's really good to hear because it's interesting, because a lot of people have had in there, have almost called for that. They've said I wish it was this, I wish it was that, but that tells me that they still don't know about it. They still don't. So I guess what they're doing, doing what you're doing there is great and what we're doing today, hopefully, is great raising awareness. What can businesses do and what can people do? Because there's one thing saying it and there's another thing going. Well, you actually need to do your bit. You know, as a small business, you know, whatever size you are, what can they do to help? You think?

Speaker 2:

I think you hit the nail on the head a few minutes ago when you talked about putting your head above the parapet.

Speaker 2:

A lot of businesses are very focused on the day-to-day challenges of running a business and actually if they took a step back and looked what's happening around the region, they would see there's an awful lot of support that they can tap into and network. We always say those members that engage with the NEA and become proactively engaged in the NEA, get the most out of it. You put something in, you get a lot more out of it. So have a look at what supports available and there are some fantastic organisations out there across the North East. Get engaged, make sure you're fully aware of what support is available, make sure you're aware of the key challenges you're trying to overcome and tap into that support, because there's an awful lot of learning you can pick up from different organizations across the network. I mean the biggest thing for the NEA undoubtedly is just simply getting the network together. The amount of knowledge, information, ideas and business that is shared across the network is phenomenal. I just wish we could track it all, to be fair.

Speaker 1:

Yeah, 100%, and I completely agree. I really do, and we're going to talk about more solutions like this than the Doom today. But at the same time, it'd be a missive as not to discuss the current challenges, and I've been interested in your opinion on this. My opinion is and I guess where I'm sat is above, right in the middle of manufacturing engineering so we're seeing growth on one side and we're seeing a lot of pain on one side, and I'm probably seeing more companies struggle than I have done for a long time. It feels to me like this is one of the most challenging out of all the situations we've had. This is probably, for me, one of the most challenging I've seen where businesses really need to pivot and be agile because of your budget constraints, years of pressures, of skills gaps almost coming to head, you know and and just things being more difficult. Also, how. What are your thoughts on that in terms of where we are now as the, as a manufacturing industry as a whole, would you you say, in this country?

Speaker 2:

I don't think we're any different to other countries. To be fair. I sit on a European automotive cluster network and 30-odd clusters from pretty much every single country in Europe and everyone has the same challenges we do. I do think. If you look at the economic outlook for the UK, it actually looks more stable than any other country, so perhaps we've got an opportunity here going forward. But yes, it is challenging.

Speaker 2:

The global economic situation, with everything that's happening with the US, et cetera and tariffs, is challenging. We've got, as a sector, we're moving towards electrification and that journey hasn't been as smooth as perhaps we would have anticipated. So we've got some challenges as a sector. But, as I say, we are very resilient and I do think people will pivot, pivot and will be agile to be able to get us through this. But yeah, it's not easy at the moment. There's so many different challenges that we've got to address, but I do think we're starting to see the light at the end of the tunnel. I do think there's opportunities for growth and when we come out of that, we've just got to make sure we've got the right skills in place.

Speaker 1:

We've got the people that can support us to deliver that growth as well yeah, wonderful, and I actually think, although it's going to be painful, I just see it as a period of change personally, where you know you talk about ai but probably more talk about automation. I think that's probably the the biggest change the workforce and and do I see manufacturing companies slightly reducing and being a bit leaner? Yeah, probably, but do I see that means that there'll be more upskilling, training, progression and just different opportunities. That's my personal view and, and the optimist in me says that, although there's not enough young people coming through, I do think the type of skills which we're about to see will actually lend itself more to the type of generation coming through, because they're more likely to want to get involved with stem subjects. If it means that there is more attractive opportunities and more attractive types of roles, because and you'll, you'll see it day in, day out the types of of development now in automotive and the futuristic cars and all the technology, it's amazing really, isn't it?

Speaker 2:

Yeah, the pace of change in automotive is phenomenal at the moment, given the move to electrification, the global megatrend of net zero, but also the manufacturing processes. I mean, if you look at the northeast automotive sector, we are one of the most productive regions in Europe, definitely so. Currently, nissan account for about 36% of all passenger vehicle production in the UK. If you then look at, there's different matrix that people use to measure this, but if you look at the average vehicle per direct employee across the UK in 2022, we produced 3.9 vehicles per direct employee. Europe was 4.2, so a little better. Here in the Northeast we're at 12. It shows you the level of productivity we have in the region, but I think part of that is also how highly automated the sector is as well. So, again looking at metrics used by International Federation of Robotics, they look at the number of robots per 10,000 employees as well. The UK ranks 24th globally at 101 robots per 10,000 employees. In Europe, the average is about 114. Germany is the leader with 371.

Speaker 2:

I did a calculation for the Northeast and I only looked at OEMs and Tier 1s, and we were well over 500 robots per 10 000 employees. So we are highly automated, but I do think that also gives us an opportunity to go on forward as well. So we've done 30 odd years that. Now we've lean manufacturing, and so the the processes are as optimized as you're going to get. We're also highly automated. Now that is perfect for us to then look at applying digital technologies on top of that as well. So for me, I think our next step change is through industrial digitalisation and really deploying those technologies digital technologies into the manufacturing process, and that will take us to the next level, and we are seeing some companies now adopting that, the likes of Nissan and Vantech. I would suggest a right at the forefront of digital adoption, some fantastic use cases that we've been sharing recently as well.

Speaker 1:

Yeah, and that's amazing to hear because we said it before we're on air, all you hear is a doom and gloom. You know, I said the press love to talk about negative stuff because it sells more, but it's. It's not the, it's not the true picture, because there's so much good stuff going on. I don't know about you. It really aggravates me when I see the local newspaper which ends up being on social media, which most people then comment and comment about this and shut in and that and they're just it. Just for me it's just pure scaremongering then and it doesn't help anybody, it just doesn't.

Speaker 2:

Yeah, I mean Nissan was one of the most successful foreign direct investments into the UK ever. When you see the level of impact, not just in terms of the jobs and the value it's added as a sector, but I know from my time at netpick in the chemical and pharmaceutical industry there's a lot of people who've come out of nissan with that lean, lean manufacturing methodology and are applying automotive principles into different sectors, which really does take organizations to another level of productivity. So nissan's been a fantastic success story for uh for the northeast. But I think once they came in we'd also then uh kamatsu followed not long after as well. So we've seen fantastic investment um particular from japanese companies coming into the northeast and we have very, very strong relationships with japan and it's great to see that Sharon Hodgson MP is now the trade envoy for Japan as well Sunderland-based MP trade envoy for Japan. So we're looking to build more stronger relationships with Japan as well.

Speaker 1:

Yeah, and it is. It's amazing to see and I say this is important why we talk about this sort of stuff, because and one of the Northeastern Overland events I went to, you were talking and they had all the concept cars and it was just do you know what I mean? Like it's almost a film. They look like it's, you know, in terms of the future. So there, good to see, and you know the iam village and the amount of companies coming to the area. I, I think this region probably takes it for granted how not lucky we are, because people there's people work hard up here. We've got a heritage of of, you know, miners, shipbuilders now on this side, of people who work extremely hard. But it is for a region which is relatively small in comparison the rest of the uk. It's unbelievably good how good this region is, isn't it?

Speaker 2:

it is. It is yeah, I mean the the automotive sector um 2023 turnover 10.3 billion, employing about 27 000 people directly. And yes, we're going through a period of change, but part of that change is the move to electrification. You've got the as battery facility, which is pretty much built now. Once that starts production, once we launch the new leaf and we get Nissan back to a three-model plant, then we'll start to see volumes increasing slightly in the shorter term, but then, longer term, it looks really, really positive. So we'll be the only region with a true gigafactory operational. We were the first region in europe to have a a battery facility with the original nissan battery facility and we've got the full capability around power electronics, machines and drives as well, which no other uk region has full complement of that. So we're perfectly positioned to benefit from that transition.

Speaker 2:

Um, he really, for me, is getting the public on board with electrification, with electric vehicles. I always use my wife as a prime example. He was a bit reluctant to get an electric vehicle. I got one in october. Absolutely loves it. The driving experience is fantastic. We don't have any issue over charging. We thought we would do. We were going over to the lake when we first picked it up, staying in a place called Farsorik, and if you don't know where that is, it's between Hawkshead and the ferry across to Windermere and it's just a small village on a country lane, but there was an industrial unit there with chargers so we're able to charge up every night so we can get charging in the lakes. I think we can get charging in the lakes.

Speaker 1:

I'm four years into my electric car, I'm about to change it and I'm changing to another electric car because, like you say, I'd love to see it start, but it must be a miniscule amount of people who've gone electric and then gone back to an ICE car. It just doesn't happen, does it? Like you say, it's probably more the driving experience. If I drive my wise diesel now, I just feel sluggish To challenge that. I've got to drive right and I think there'll be people listening going. It's all good for you. You've got a drive right and I think there'll be people listening going. So good for you. You've got a drive. You can charge it home and I do, and it's absolute dream. It's like three p mile overnight saves loads of money. It's great. How, um, how far off do you think we are being able to offer this electric world to people who live in flats and you know, know, don't have drives? Because that's the big challenge, isn't it? To get people to move.

Speaker 2:

Yeah, yeah, and there are moves afoot. We know there's charging infrastructure being installed into lampposts et cetera as well, which are charging stations for people to use. There's obviously a strong network of public charges available. Not quite at the rates that we pay when you're charging overnight Six to eight pence a kilowatt. When you're using public you can be charging 35 pence per kilowatt, so it's not as cheap.

Speaker 2:

But there are moves afoot to try and get public charging in in place in situ, as I say, society in lampposts etc as well, but also looking at how we try and drive that the cost of those down as well. Um, but the government have put money behind it. They're rolling out charging infrastructure. I think the last last time I I heard we had well over 70 000 charging points, public um charging points across the uh. Uk it's 600 000, I think somebody uh said in terms of private charging points and drives and so on. So huge amounts of infrastructure has gone out. Um, but it will get better. Definitely there will be more investment in that and hopefully the prices of those public charge units will come down as well.

Speaker 1:

So it will be even more competitive yeah, without a doubt, the grid has improved massively the public network again. Four years ago it wasn't great I was. I've got one of the first ones which has got a pathetic range 140, and that was a anxiety kicks in straight. I've got one of the first ones which has got a pathetic range 140, and that was an anxiety kicks in straight away. Now they go 300 miles, so it's great. But even now, if we go anywhere, I don't worry because you're always near a charger, so that I completely agree with you. So as soon as they fix that problem where people without a drive can park, I think that'll be it. People will go and they won't come back. So I think that shift will happen suddenly, won't it? And then, you know, automotive industry is like it'll just go boof and then everything will be back. Have you started to see the turn, though? Do you think in terms of the, the sector?

Speaker 2:

yeah, I mean, if you look at the um, the sales figures for february, um, 25 of all vehicles purchased in february were battery electric vehicles, so 100 percent and um. We're seeing petrol constantly continually decline in in terms of volume um. So electrified product is by far and away the biggest um section now for new vehicle sales and it'll continue. We just need to accelerate it in line with what the government sets out through the ZEV mandates. So the sector is very much behind that transition. We've got a target to be full zero emission vehicles by 2035, 80 percent of all vehicles to be sold by 2030, but that's when hybrid technologies will internal combustion engines will cease. So that transition is happening. We just need to try and accelerate it a little bit more to support the sector. As I say, the OEMs are there. There's a vast array of electrified products available on the market. We're seeing some great product coming in from China, with likes of BYD as well. So there's lots of opportunities out there, lots of choice for consumers and some really, really good products.

Speaker 1:

Apologies for interrupting this episode with a very quick announcement about my business. Theo James are a specialist talent provider specifically to the manufacturing and engineering sector. I'm incredibly proud of what we've achieved since our inception in 2015. We specialize in roles from semi-skilled trades right the way up to our TJ exec search arm of the business. Both from the contract and permit side, we offer both bespoke one-off campaigns for hard-to-fill roles or a full partnership service where we become an extension of your business. For any information, please get in touch with me or the team. I hope you enjoy the rest of the episode. Thank you, you mentioned China there. China's a nation people go quickly to with manufacturing and go oh well, china in this, china in that. But then the other side is that there can be a collaboration piece. What are your thoughts on that? Does it have to be a China versus UK? Can it be a collaboration? Can they help each other? What's your opinion on that?

Speaker 2:

It's difficult at the moment. If you look across Europe, europe has put tariffs onto Chinese imports. The UK hasn't. So we are a market where we'll see a lot of Chinese product come in. I think we'll get to a position where you will see Chinese manufacturers set up manufacturing operations in Europe, where you will see Chinese manufacturers set up manufacturing operations in Europe, similar to the likes of Nissan with Japan, etc. So set up manufacturing operations in Europe and I don't think then they will quite have the cost advantage and they'll certainly have to adhere to some of the more rigorous regulations that we have. So it will become more of a level playing field From our perspective.

Speaker 2:

When you look at the product made here in the UK, we've got some fantastic manufacturers here making great products. It's a very competitive market. I mean to give you an idea of where the sector is. So pre-COVID we had a market of about 2.5 million vehicles in the UK. Today it's about 2 million vehicles. Pre-covid there was about 45 manufacturers, I believe, who were serving that market. Today, at the end of this year, we'll have well over 70 manufacturers buying for a smaller market. So it is very competitive. The product's got to be right. Technology within the vehicles is fantastic, so it can only be good for the consumer.

Speaker 1:

Yeah, 100%. And I think you get right back to what you said near the start about how good we are in this country, that skill set piece, and how good automotive is. And you're absolutely right. You know we are. My business is a recruitment firm. If we see someone who has a background in automotive, we just pretty much know they're going to be a good candidate because the ground they have and the the lead manufacturing learn. Everything is just is just. You know, the companies that I've seen implement automotive practices and standards have accelerated and I think there's a reason for that. It has to be and, like you say, a lot of it comes directly from Nissan. So you know this country is excellent at the process side and that's how we compete. Like you say, it'd be interesting, actually, if they have to do more and they have to go through those rigorous checks, because that's exactly what you say.

Speaker 2:

That will be much more level playing field be interesting um, yeah, that that's all we asked for, um from from the uk government to give our manufacturing sector that level playing field, because I know we, we can compete and we will compete very successfully if we have a level playing field yeah, 100.

Speaker 1:

I like to put your brains on that skills, the workforce and skills development and, I guess, probably the new generation of people coming through. That's something I'm very passionate about. I sit on the board of a couple of schools and colleges to try and help that, because I see that as a problem. There's still not enough people coming through and enough people want to come through, which I think is the biggest issue. What are your thoughts on that? And I know the NEA have done some amazing stuff. Nissan have announced recently all the stuff they're doing in the schools. What are your thoughts that, what's been done and what else can be done, and what else can other businesses do to help this, would you say?

Speaker 2:

So the NEA has been the appointed employee representative body to develop the North East Local Skills Improvement Plan for Department for Education. So we're one of 39 ERBs appointed by DfE across the UK to develop these skills the local skills improvement plans. So we've been working very closely with industry skills improvement plans. So we've been working very closely with industry. We worked across a number of sectors advanced manufacturing, construction, digital, health and healthcare, science and transport and logistics and we've identified six key priorities and about 52 deliverables that we need to address to make sure we've got the skills that we require as industry, as businesses, moving forward. So, um, a number of those are systemic. So we're working very closely with northeast combine authority with their emerging uh inclusion, skills and education plan. Um, we're working very closely with um national automotive industry around skills as well, just trying to make sure that we can address these systemic changes to make sure we've got providers, manufacturers or providers, businesses and local government working together to create an ecosystem that delivers the skills we require.

Speaker 2:

I do believe there's an awful lot of work we need to do. We've got to raise the aspirations of people, we've got to talk about the positive benefits of career in automotive as an example, and we've been doing some of that work with different programmes. So on the back of the Local Skills Improvement Plan we've tapped into uk shared prosperity funding um. We've been working with smes to try and get more smes to take on apprentices and the feedback we've had has been fantastic. We've got 17 apprentices into 10 smes and the feedback from the, the apprentices and the smes has been really really positive and we'll start promoting that to really try and encourage more SMEs to take up apprentices. And then the other project we've had has been working with. It's an inclusivity pilot for advanced manufacturing supported by South Tyneside Council's UKSPF, and that really is to look at how we can encourage unemployed back into work and support unemployed back into work. So, working with some fantastic organisations like the Foundation of Light or South Tyneside Works are working with these individuals who might have a number of barriers to employment. They're working with them to to break down those barriers.

Speaker 2:

And then we're promoting the um, the sector as a, as a destination, as a promoting entry-level um vacancies, as a collective and then working with providers around skills boot camps to give them the necessary skills that they can then transition into the automotive industry. But we need that collective approach. We need to be working with the right organizations, promoting the opportunities that are available and then supporting people into those positions, because for me, people will be and it's not just a skills issue, it's a people issue people will be the biggest barrier to growth for the uk and it's it's not again, this is not exclusive to the uk, this is happening across europe as well. Um, we've got to, we've got to promote the sector more, because actually coming and working in automotive or manufacturing there's a fantastic career, the opportunities are phenomenal.

Speaker 2:

I mean we're it's a global sector the opportunity to travel, and we've had people who've been in hr functions, as an example, have postings in in japan for over a year. They've come back speaking fluent japanese, continuing the study, so it really is a great, great opportunity to work in a very rewarding sector. And the one thing I would say with automotive just coming back to automotive it's the pace is phenomenal. You never have a dull moment. I cannot believe we're 10 years in where we are currently, but there's so much opportunity moving forward as well.

Speaker 1:

Yeah, amazing and so well communicated, because it is, and I love this industry and it pains me to see young people who just don't know anything about it. You know, there was a television programme last night and my little lad was he's about to be six and he was just like, oh he's a robot and I just thought he needs to be in you know that age. They need to be in factories. I know Nissan do it great, but other businesses need to do it. It doesn't always have to be the big, huge businesses in the area. It can be SMEs, because it's fascinating. People have no idea what's on their doorstep, do they?

Speaker 2:

No, they don't, and that school engagement the career information, advice and guidance is a key part of what we need to change, to transition the skills system. We've got to get more organisations involved in schools. We have seen even at the awards this weekend last week sorry, we saw people who've been inspired by careers, by school engagement programmes, who are now working in industry. So it's great to see it does actually make an impact when you're doing this type of activity. So yeah, we do need to scale more of that.

Speaker 1:

After all these years of doing it, what drives you now, would you say? For?

Speaker 2:

me, it's all about making a positive impact on the region. All about making a positive impact on the region. I think all of my team have exactly the same drives. It is about making a difference to the region, making a difference to people's lives, moving forward. It's why we work so hard to do this. But it's seeing the awards last week and the success that we've got was absolutely fantastic and it really does give you that that motivation to continue what we're doing, because we know we're making a difference.

Speaker 1:

Yeah, no, you absolutely are. What's the next sort of 12 to 18 months looking like, then? Paul, what's on the horizon for AA?

Speaker 2:

I would suggest that the some of the biggest areas will be focused on will continue to be skills, maybe continue to to make sure we've got a pipeline of people coming through, to make sure we've got the, the availability of people as and when the sector needs it. So to give you an idea, the, the magnitude of the opportunity. We've done a study over the next five years to cover both growth and attrition within the sector. We will need in the region of 20,000 people, so about 16,000 operators, about 1,500 skilled, about 1,000 technical. So there's masses of opportunities coming up in the sector. But it is at a time when we know there's more competition coming into it, with offshore wind taking off, with other sectors looking to grow as well. So this is why I say people. I think for me is the single biggest barrier to growth for the UK.

Speaker 1:

And we've talked a lot about the opportunities there, which is, which I'm which is great. We'll talk about the challenges. For for someone, listening, you know, let's say, owns a business or works for a business, which is, you know, going through a bit of a a difficult time right now and feels a bit down, what advice would you have for businesses that are going through this period now, would you say?

Speaker 2:

Prepare for future growth and opportunity. And I think for me, when you're going through difficult times, it really is about just making sure you've got the right strategy in place, you know where the opportunities are coming forward and you set the business up ready to benefit from the growth opportunities in the near future. And coming back to the point I mentioned earlier, there are some fantastic organisations out there that can support a business to get ready for that growth opportunity.

Speaker 1:

Amazing and, look, I just want to thank you so much, so much as paul, because you know it was absolutely honor, even you for the 100th episode and, um, what I'm really pleased about this is, like we said mid-episode, there's a lot of difficult times right now. There's almost a lot of negative energy out there because of the the press on the press put out, but there's so much good stuff happening and my hope for this podcast before was you're going to come in here and talk about all the good stuff and it's exactly what you have and it's tangible. You know you can see the passion that you exude, but actually all the stuff that's happening in the next you know now essentially, is really exciting because it has been a difficult time. There have been difficult times the last 10 years but, as we've said, companies that have pivoted and been agile, but this is the time to use a network like the NAA because they can.

Speaker 1:

The only way to get through times like this is to collaborate and share and I think what I like about this is the reason I started this podcast is because we wanted to add value to the industry, but we wanted people to. I saw all the good stuff happening and all the conversations were happening, but there was no real that going on. There's no sharing, there's no collaborating, that and and this is what the podcast was all about, and this is what the naa all about. So I think that in itself is something nice there, but I just want to thank you for hopefully, without doubt, making people, including me, feel just a lot better about what's happening right now, because there's some good stuff on the rise, isn't there?

Speaker 2:

There is definitely Aaron, and I just want to thank you for giving me the opportunity to come on the podcast. It's been great.

Speaker 1:

Yeah, no thanks, paul, you're welcome. Thank you very much, mate. All right Cheers. Thank you. Thank you so much for listening or watching this episode of the Manufacturing Leaders Podcast. Please just like or subscribe. It really helps grow the show and obviously improve the industry.

Speaker 1:

If you want any more information about Theo James, as I mentioned midway through the episode, please get in touch with me or the team. I would love to talk about how it can help you directly or your business. We are more than just a recruiter and I know people say that, but it's something I'm incredibly passionate about. We are in business for much more than just a bums on seats approach. We want to help people grow, we want to help them through their lives and, ultimately, I want to work with businesses and people who share the same values as we do, and that's something I'm incredibly passionate about. So please, if that is you and you are passionate about that dream role or passionate about your people, please get in touch with me or the team. I would absolutely love to talk a bit more detail. Thank you very much. Speak soon.