The sector is currently comprised of 817,000 employees in around 19,150 organisations in Great Britain. 68% of employers in the sector have between 1-10 employees, whilst only 2% have more than 200 employees. Employment in the sector is expected to decline slowly over the next 10 years as with all industries based in primary and manufacturing industries. Cogent is one of 14 sectors predicted to decline over the next 10 years. However this hides trends of growth within industries and sub-industries in the sector.  For example: in the chemicals industry demand for pharmaceutical preparations is increasing; the oil and gas industry is currently in a period of expansion with increased activity driven by the high oil price and; recycling and medical equipment manufacture are growth areas of the polymer industry.

The Cogent workforce is dominated by full-time employment (86%, compared to 74% across the UK) and this share is projected to decline by 3% over the next 10 years. Part-time employment is predicted to increase over the next 10 years by 1.5%, whilst self-employment is to decrease by 1.4%. Trends suggest that working patterns may shift from full-time contracts to more part-time, job sharing.

Source: Cogent Sector Skill Needs Assessment 2006 and Working Futures 2006

For more data on employment levels and employment status of the sector workforce see:

Source: Cogent Sector Skill Needs Assessment 2006. Data compiled from Annual Business Inquiry (1) and industry information sources (2).

For further information and trends for each of the sector’s industries see:

As the Cogent industries have either static or decreasing workforce volumes, recruitment is predominantly a result of replacement demand, i.e. turnover and retirements. The exception is the oil and gas industry where employment has increased due to high levels of industry activity stimulated by the oil price.

All of the Cogent industries have older workforce profiles highlighting the need for recruitment.  The polymer and chemical industries have the highest proportions of workforce in the 55 plus age group.  However, all of the Cogent industries, with the exception of polymers, the proportion of workforce in the 16-24 age groups is lower than the national average. 

The retiring workforce is also more pronounced in Skilled Trades and Process, Plant and Machine Operative occupations with higher proportions than average in the 55 plus age group.  The workforce is concentrated in these occupations so a concerted effort will be required to cope with replacement demand.  There is also a relatively low volume of the workforce in the 16-24 age group for Skilled Trades, Associate Professional and Technical workforce.

Turnover within the industries in the Cogent sector is in line with that found across the broader manufacturing sector. 

Skill shortage vacancies are as much an issue for employers in the Cogent sector as for all employers. Approximately one in four vacancies are hard-to-fill as a result of skill shortages - however the problem is more acute in the oil and gas industry. Skill shortage vacancies are most prevalent among:

• associate professional and technical workers (38% of skill shortage vacancies) - for example process and maintenance technicians
• process plant and machine operatives (18%)
• sales and customer service staff (15%)
• Among applicants, skills shortages are mainly for technical and practical skills.  Other skills lacking were problem solving, management, communication, and team working skills.

As there is a great demand for Technicians and Process & Machine Operator workforce by the sector (and other manufacturing/process industries) there is rising concern – particularly over the future supply of this type of workforce through the contractor supply chain.  There has been a decline in people interested in craft and technician type work.  Young people are choosing to go to university instead of embarking upon an apprenticeship.  This is particularly an issue raised by Cogent sector employers in North East of England.

Across the sector, employers also question the skills of graduate engineers and scientists.  There is a perception that many new graduates lack the softer/core skills required in the workplace, such as team working, communication and report writing skills. 

Source: Cogent Sector Skill Needs Assessment 2006

This sector is in competition with other science, engineering and technology based industries for skilled and qualified workers. The number of potential workers is decreasing so attracting these workers has to be a priority.

While the Cogent sector industries make a significant investment in tratining this is largely health and safety focussed.  More investment is needed in up-skilling and maintaining the current workforce skill levels to ensure that it can meet the changing needs of the sector.

To resolve the current skills shortage some employers are recruiting from the wider European Union and Eastern block countries. However, this does not address issues relating to the education and training system in the UK supplying the sector with potential recruits.

Source: Cogent Sector Skill Needs Assessment 2006

Several external factors impact on the sector and its primary aim to ensure sustainability of the chemical, nuclear, oil and gas, petroleum and polymer industries.

For continued productivity, competency and innovation in the sector it is dependent on:

• a range of science, technology and engineering skills
• investment in ensuring the right people with the right skills are in place

The UK has a relatively stable political and economic climate, but there are strict regulatory and employment frameworks which increase operating costs. The current fiscal regime is causing concern and uncertainty in future investment by the oil and gas industry. Energy related policies and defence policies all impact on the sector. The propulsion and weapons programmes are set to continue for the next few years. Over the last few years changes in health and safety regulations, together with changes in environmental policies, have resulted in additional process and monitoring requirements affecting the operating costs and, therefore, the competitiveness of the sector.

The sector will continue to face greater competition from both home and overseas companies. Companies in the sector, and particularly those in niche markets, will need to produce higher value added quality processes, products and services.

Source: Cogent Sector Skill Needs Assessment 2006

Further future changes and drivers in the sector are focused on: economic changes such as globalisation; social drivers such as skills supply and reputation; and, finally, technical drivers based on technological solutions and the environment. The specific impact of some of the changes on the sector’s industries follow:

Source: Cogent Sector Skill Needs Assessment 2006, figure 4.2a. Data from the SfBN Evaluation 2004 Employer Survey.