The Bulgarian Chamber of Commerce and Industry carried out a survey under the project FactCheck: Adapting quality of VET offer to the need of industry – manufacturing sector. It was held by the consortium partners in the period February – April 2023.
The survey was carried out following the methodology developed by the project consortium. 30 representatives of the target groups in Bulgaria took part in it. The team of the Bulgarian Chamber of Commerce and Industry conducted the survey online and made the analyses report on the basis of the answers provided regarding the updating information about skills demand as “occupation task screening”.
Work-based learning and apprenticeships are the core of VET. Systematic cooperation between VET schools and companies was one of the identified principles to ensure high performing apprenticeships and work-based learning.
The Covid-19 crisis has accelerated the transition to Industry 4.0 even much faster than expected, so VET must not only follow digitalization in the industry, but also drive new developments.
The project partners from Germany, Spain, Poland, Greece and Bulgaria, representing the VET centers and the Association of Companies from the metal and electricity sector have agreed that many dimensions of the VET-industry cooperation need to be improved in order not only to respond to the demand of the sectors, but also to generate change, in particular the change related to the transition to Industry 4.0.
The FactCheck project seeks to adapt vocational education and training to the needs of the labour market and improve collaboration between VET teachers and company trainers/mentors in the use of digital tools in teaching.
Short analyses of the survey results
The level of digitalization is an important measure for the capacity of Bulgarian Economy to go for digitalization and Industry 4.0. The Digital Economy and Society Index /DESI/, measures the development in five areas according to quantity data: connectivity, human capital, Internet services usage, implementation of digital technologies and digital public service. Bulgaria ranks 26th of the 27 EU Member States in the European Commission Digital Economy and Society Index (DESI) in 2022. / https://digital-strategy.ec.europa.eu/bg/policies/desi-bulgaria/ Bulgaria’s DESI score grew at an annual average of 9% over the past five years. Given the positioning of Bulgaria, this growth rate is not sufficient for the country to catch up with the other EU Member States. On digital skills, despite recent increased efforts, the country remains significantly below the EU average, having a score of 32.6 versus the EU average of 45.7. The proportion of individuals with at least basic skills and above basic digital skills is well lower than the EU average, the latter significantly so (8% versus the EU average of 26%). Considering the EU’s ambitious target of 80% of adults having at least basic digital skills by 2030, the country needs to step up efforts, as more than two thirds of its population lack such skills. Bulgaria also underperforms on the proportion of ICT specialists in the workforce (3.5% versus 4.5% EU average). However, the proportion of female ICT specialists is high.
Metal sector
Metal processing enterprises in Bulgaria have successfully passed through the 2020 marked by the pandemic. This can be seen in the results of the most dynamic companies representing the sector. Their turnover in 2020 increased by an average of 63% which is comparable to the result of the previous year. The three fastest-growing companies recorded triple-digit increase. All in the top 20 are in profit, with their score rising nearly fivefold.
The technological transformation of the 21st century is leading to a new industrial revolution that will change the way economies and societies` function. Digitalized manufacturing and the rise of production automation will lead to a wide range of changes in production processes, outcomes and business models. “Industry 4.0”.
According to some authors, “If we do not prepare in advance, we will face various risks. We risk giving great power to machines. We risk changing changing the course of humanity without fully understanding the consequence. We risk creating a huge in equality between the “techno-super -rich” and the rest of the broad underclass.” (Dalmia & Sharma, 2017).
The most characteristic problem is related to drastic changes in the labour market. Overall, robotization and digitalization are significantly transforming both workflow processes and the work environment, shifting the focus away from the human factor and forcing the new forms of employment. According to some studies, up to 47% of jobs in developed countries are predicted to be lost in the next 25 years.” /Plutschinski, 2017/
Skills shortage
Today’s society faces skills shortages in many essential areas, and metal sector is one of them. The reasons are not easy to pinpoint. One issue is that many experienced workers are close to retirement age, and there are not enough younger people to replace them. Relatedly, it takes a while for knowledge transfer to happen.
Another concern is that younger people may not immediately consider working in metal sector. That’s especially true if they perceive them as dirty or dangerous or if family members or peers push them toward other options.
There is a worker shortage that is going to grow with the years due to demographic reasons in Bulgaria. The unemployment rate in the country is 4,3 % /2022/, the employment reached 70,4% /2022/ but still employers report shortage of skilled workers especially in some economic fields including manufacturing industry.
Ongoing education is already a priority in solving this issue. Dealing with the metal fabrication skills shortage requires more that providing the foundational know-how to get started in the industry. Many other new skills are needed.
In terms of recruitment challenges, companies indicated the professional skills needed to work at a consistently high quality. These skills include:
- Machine and tool operation (62.5%)
- Interdisciplinary teamwork (50%)
- Competence in the use of information and communication technologies (43,75%)
- Calculation and computing: numeracy skills (24,7%)
- Manual dexterity and manual work (18,75%)
- Management and coordination skills (18,75%)
Companies are facing many challenges while looking for employees. The inappropriate professional qualification is among the most common. Excessive salary expectations and low individual capacity are following.
The following occupational profiles were identified as the most in-demand in metal sector:
- Industrial mechanic – 46.88%
- Mechatronic engineer – 43,75%
- Machine and systems operator – 31.25%
- Specialist in metal technology – 12,5%
- Tool mechanic – 12.5%
The companies surveyed highlighted the skills most in demand in the next 5 years in the metalworking industry:
- Robotics, robot handling and automatization – 50%
- Computer-aided manufacturing (CAM) – 34.38%
- Operation on CNC machine tools – 28.13%
- 3D printing: programming, printing, postprocessing – 21.88%
- Mechanical and electrical installation, including high voltage approaches 18.75%
- Engineering detail drawing skills - 18.76%
- CAD programming – 12.88%
- Operation of machines and tool for precision measurements: dimensional and shape metrological measurement – 11.76%
Survey respondents` profile
80,6% of the companies that participated in the survey are working in the manufacturing.
61,3% of the respondents represent companies that have provided some kind of vocational education training or coaching in professional skills.
The alignment of business of the participating companies in the survey is explained below.
61% of them have European outreach. 16% explore business worldwide and 13% have national coverage.
When asked about the average age of their employees the respondents provide the following information:
- 42% have average age 45-49 years;
- 25.8 % have average age 50-54 years
- 10% are 55-59 years
- 10% are 60-64 years
Summary
The metal and electrotechnical sectors require highly qualified and skilled personnel to meet current and future challenges. To solve these challenges, it is necessary to take measures to address the problems of lack of professional qualifications, low individual skills and lack of standardised vocational training in a specific professional profile. It is also important to establish fair wages and provide incentives to retain skilled staff.
To address the difficulties, training and capacity building programmes in technical and leadership skills are essential. Companies can improve communication with workers and foster a positive work environment that motivates employees to do their best.
To ensure consistently high quality at work and secure a promising future for the sector, good time management and the ability to work in interdisciplinary teams are required. It is essential to further develop skills in these areas as well as in technical, leadership and problem-solving skills.
The most required skills in the metal and electrotechnical industry for the next 5 years are: industrial mechanic, electronics technician for devices and systems, mechatronic engineer, machine and systems operator, electronics technician for industrial engineering and industrial electrician for industrial engineering.
The full text of the FactCheck survey on metal sector can be seen here.