In This Edition...

BETTER NEWS FOR CANDIDATES

FOCUS ON... GETTING AHEAD

INTEGRATED HR DELIVER TRAINING TO LEAN TEAM

INTRODUCING... INTEGRATE

MERGER FORMS NEW TRADE BODY

FROM ONE JOHN TO ANOTHER

NEXT STOP, THE OSCARS

AND THE WINNER IS...

Wakefield
01924 241010
wakefield@jonlee.co.uk

Leicester
0116 299 4040
leicester@jonlee.co.uk

Stourbridge
01384 397555
consult@jonlee.co.uk

St Albans
01727 841101
jobs@jprecruit.com

Basildon
01268 889250
southfields@jonlee.co.uk

International
00 44 (0)800 6529801
int@jonlee.co.uk

www.jonlee.co.uk

Better news for candidates but competition is fierce

Last year was a very challenging one for most sectors of the economy with reduced demand, costs cut, workforces reduced, decision-making on projects suspended and finance hard to come by. As many New Recruit readers will attest: engineering, manufacturing and construction were hit as hard, if not harder than most sectors last year, with 2009 a tough one for employers, job seekers and recruitment agencies.

Because of the pain felt last year, 2010 is likely to feel more positive and thankfully there are real signs emerging from many sectors of the manufacturing and engineering economy that recruitment is picking up. There are few industries where the news is uniformly positive - no such luck - but there are certain signs of life in key areas that suggest better times are ahead for this year and beyond.

Automotive
Automotive is always seen as a bellwether industry and news of its plight has certainly featured heavily in the media here and in the US since the start of the recession. The good news is that initiatives such as the scrappage scheme and EU Government loans for low carbon research and development, combined with longer term incentives for customers to switch to cleaner cars, means that the industry is starting to recover. While it has some way to go to get back to previous production levels - with production roles still in short supply - research and development roles are looking healthy as automotive companies gear up to face the challenges of the future.

Aerospace
Unlike the automotive industry aerospace is often one of the last to feel the effects of recession and one of the last to emerge from it, due to longer lead times throughout the supply chain. It is also very much project specific with some programmes running flat out and others having stalled or being cancelled. We’d expect the industry to remain quiet for a few months longer before mirroring the upturn in the automotive industry although there is much more activity on the certain key aircraft programmes and with their relevant suppliers. The need for cleaner, quieter and lighter aircraft has accelerated the use of composites and experimental work on alternative fuels and more efficient engines with design and development programmes having to accelerate. It’s whether the UK can maintain its pre-eminence in certain areas of aerospace design and development, especially in engines, that is the burning issue.

Defence and Security
Defence has been very buoyant throughout the recession and particularly in areas that supply frontline combat equipment to the field, with a strong emphasis on improved armour protection and equipment. Cutbacks are expected in certain ‘back-room’ areas of defence and any major capital expenditure programmes which can be shelved or delayed are under close scrutiny. However, we can be sure that whichever party wins the next election, defence spending will not be affected by the cuts that loom over the whole public sector.

The security industry looks to have a very healthy future with considerable growth anticipated stimulated by the enormous security challenge of preparing for the 2012 London Olympics.

Construction
Another area that will be affected by public spending cuts is construction, which until now has benefited hugely from the capital expenditure brought forward as part of the economic stimulus package. Road and rail projects are providing a much needed boon, along with the Olympics, to the industry and are compensating for the stagnant domestic and commercial market. However, the need to greatly reduce Government spending may drive the industry back into recession and a recovering housing market looks unlikely in the short term. Another worrying sign is that the construction capital goods market has not recovered. This includes machinery such as diggers and other equipment. Any upturn in this sector really would provide concrete evidence that construction is on a sustained road to recovery and we’re monitoring it with interest.

A Nuclear future
Candidates should also look at industries that are likely to be the ‘next big thing’. The need to decarbonise and concerns for the continual availability of oil and coal have strengthened the case for a significant growth in nuclear power globally and the need for up to ten nuclear power stations in the UK within the next decade.

The Government has been somewhat slow in committing to a nuclear powered future but the go ahead for at least 6 new nuclear powered stations in the UK is now imminent following a painstaking process of drawing up build regulations, deciding on which type of reactor can be built and where.

The problem that the UK faces is that most of the engineers who were involved with our last generation of plants have now retired. Home-grown workers need to make sure they are able to benefit from this investment otherwise these jobs will go overseas.

Renewable energy in the form of wind farms in particular also offers plenty of good prospects during this decade and the prospects for alternative energy providers has been greatly enhanced by the Government funding of projects such as the Marine Energy Fund.

Candidates need to be vigilant
So the picture looks brighter for candidates than it did last year, but those on the lookout cannot afford to sit back and wait for the dream job to come though. Competition will be extremely tough and many of the new jobs being created are not in the same areas that were employing before the recession began. That’s why candidates must be willing to re-skill where needed. They must also stay up-to-date with developments in their industry so that they know where the jobs are and what skills and competencies are needed. Joining and getting involved in relevant trade bodies is a good way to do this (as Simon Roberts explains in the next article).

jonathan@jonlee.co.uk