Feeder systems for artisanal training in SA are ‘failing’
Pass rate at further education and training colleges is low, writes Mark Allix
THE National Tooling Initiative (NTI) partnership between industry and the government provides a blueprint for national development. It answers questions about educational needs, skills development and job creation, and helps put SA on a high-technology economic trajectory.
Manufacturers in SA procure, on average, more than R6bn of tooling a year. A recent global tooling conference in Canada shows that up to 50% of a manufactured component’s cost competitiveness is governed by tooling. However, the domestic tool, die and mould making (TDM) sector has shrunk from supplying 80% of SA’s needs to less than 20% in the past 20 years.
South African manufacturing now faces stiff offshore competition. To this end, the Department of Trade and Industry has identified TDM as key to manufacturing competitiveness, sustainable jobs, and content localisation.
But NTI CEO Dirk van Dyk says more is needed.
The NTI started a pilot project for TDM in 2010 to help turn around the tooling industry. Programmes are benchmarked on international best-practice and peer comparisons. Four years later there are more than 400 students at 12 further education and training colleges (FETs) completing programmes related to apprenticeships. The National Skills Fund has allocated further funding through the Department of Trade and Industry for another 650 students.
Statistics from 2010 show the 1% skills levy paid by industry to sector education and training authorities (Setas) amounted to R8.4bn. Of this R3.8bn found its way into FETs.
However, of the 26,500 students who entered first year of national certificate vocational (NCV) studies in these colleges in 2007, only 1,200 passed the final exam three years later, according to the most recent World Bank report on African competitiveness. Of these, about 6,800 were enrolled in trade-related apprenticeship programmes. This means the feeder systems for artisanal training in SA are “failing”, says Mr Van Dyk.
The report says about 1-million school-leavers enter the domestic labour market each year, but many lack “foundation skills” needed for post-school education and training that leads to jobs. This includes tooling, machining, industrial programming, and other trades such as boiler making, fitting and turning, welding and plastic making.
“Industry says the standard provided by NCV doesn’t meet requirements,” Mr van Dyk says. He says proper ratios of qualified and experienced staff, relevant equipment and student numbers at FETs are lacking, along with poor selection and matching processes for industry’s capacity to take up such students.
Roger Pitot, executive director of the National Association of Automotive Components and Allied Manufacturers (Naacam), says the industry must more than double vehicle output to 1.2-million units by 2020, while significantly raising local content from an average 35%.
Naacam affiliates employ nearly 50,000 people.
Last year, the total turnover for the components industry was R57bn. The overall automotive sector employs more than 100,000 people in manufacturing and 200,000 in sales and service operations. However, only 500 TDM companies — each employing a small number of skilled tradesmen— supply all of South African manufacturing, with the average age of such employees being about 57 years.
Mr van Dyk says the Setas have slashed the grants they make to industry from the 1% training levy. Instead, the government has been flooding FETs with money, resulting in many more students, but lower-quality outputs.
“This is reality — it’s scary stuff. We are throwing huge amounts of money at skills development, but mediocrity in manufacturing still prevails.”
Mr van Dyk also says that the old system of artisanal development under apartheid would have failed, as manufacturing needs have changed and “young people” want training that reflects the era of high-tech information technology and electronics.
“(Global) industry has much higher level demands from multi-skilled workers on a project basis,” Mr van Dyk says. This means skills development leading to sustainable jobs is driven by changing market demands.