Skills gap forces firm to halt bids

Mar 31 2009 by Kelley Price, Evening Gazette

AN ENGINEERING boss has echoed MPs’ warnings of a skills shortage that could threaten expansion of the North-east’s ‘green collar’ economy.

IHC Engineering Business (EB) is nearing completion on a £1m piece of tidal power equipment for Voith Siemens Hydro at its base on Tyneside and a large-scale pipeline scheme underway with Wilton Marine on the Tees. But despite an expected increase in turnover from £22m to £30m this year, MD Tony Trapp said he was being forced to turn down work because of a shortage of skilled staff, despite actively recruiting.

“We are declining to bid on major contracts where we are market leaders due to a shortage of engineering resource,” he said. “It’s a major problem for us and it’s happening now.”

A report last week by the Universities, Innovation and Skills Committee warned that a serious skills shortage in engineering could have a major impact on Government plans to build a new generation of nuclear power plants and hamper its long-term aims for renewables. The report recommended a Government Chief Engineer be appointed to raise their status within Whitehall.

But Ensus, the company behind a £250m bioethanol plant on Teesside said it had not experienced any problems recruiting for its programme. MD Alwyn Hughes said: “Specific changes in Teesside’s chemical sector have helped us.” But he acknowledged: “Looking at the age profile of the sector, it’s clear we need to take action now for the future.”