The number of employees has increased in 16% of establishments, whilst 10% report a decline in numbers. Medium, and larger establishments reported greater losses. One fifth of establishments forecast increased staffing levels in the future.

Sector sales in the region have increased over the last year with only a small percentage of establishments reporting decreases. 60% of establishments forecast increases in sales.

21% of establishments arrange or fund training, compared to 18% in the UK, and 7% are linked to a formal qualification. Job specific training is most commonly provided and there is a reliance on in-house training.

11% of establishments in the region are owned or part-owned by a member of an ethnic minority group which is below the UK average of 20%. Localised concentrations of ethic businesses are in West Yorkshire.

The incidence of skills shortages, internal skills gaps and staff nearing retirement age are all above the UK average. A significant number so skills shortage vacancies are within the textiles manufacturing industry. Skills shortages are mainly in operative occupations, such as sewing machinists and textile machine operators.

Establishments, particularly larger organisations, report significant internal skills gaps (employees who are not fully proficient). These skills gaps are 3 times higher in manufacturing than wholesale or servicing. The most common skills gaps are machine operator, customer handling and sales skills.

Establishments in the sector anticipate difficulties in replacing staff as they retire in the next few years. Textile and apparel manufacturing are most likely to have problems replacing staff who retire. However, there will be also be demand for general managers and functional managers, specifically production managers, in the next few years.

Future challenges for the sector:

• reducing overall costs
• attracting new customers
• improving quality of service
• improving the value of the pound
• increasing overseas competition (reported by more than 50% of larger organisations)

Source: Regional report – Yorkshire and the Humber 2004