Where will the European timber industry get its skilled workers in the future?

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On November 30, 2018, the European Timber Industry Association CEI Bois organized a seminar in Lisbon on the future of the wood industry in Europe. The 70 participants came from European associations and companies in the wood industry. The organizers were CEI Bois, as the European umbrella organization for the wood industry, the European Association of Engineered Wood Manufacturers EPF and the European Workers' Federation of the Wood Industry EFBWW. CEI WoodThe host was the Portuguese association AIMMP. The topic of the seminar was the future challenges of the wood industry. It was the second seminar of its kind. The first one, held at the end of 2017, dealt with the protection of workers at work.

One result is the agreement of the European social partners on formaldehyde at the workplace, which was closed the day before this year's seminar, as Rolf Gehring, representative of the EFBWW explained at the beginning of the seminar.

CEI WoodNow it was about knowledge transfer and the question: "Where does the industry get its skilled workers from in the future?". In order to recruit skilled workers, a positive image of the industry is needed, and consequently a targeted, up-to-date communication, emphasized Kris Wijnendaele from the EPF. "Nobody wants to work with problems in an industry."

CEI WoodThe key messages of Tom Austen, director of the recruiting agency Miller McKenzie on the status quo of the European wood industry are initially sobering: the average age of employees in the wood industry is higher than in other industries, the industry has a young talent problem and a problem in digitalization, the European wood sector lags other industries miles behind. Europe's woodworking and furniture industry has around 2-2.5 million workers, of which around 500,000 work for member companies of the CEI Bois. 54% of all companies surveyed in a global study said that their shortage of workforce has a medium to strong impact on their ability to meet customer needs. A large proportion of employees fear that their jobs will change significantly in the future or will disappear About half believe that their current capabilities are no longer needed in three years. In this fast-changing world of work, the wood industry has a problem: the workforce is getting older, and not enough young talent is coming to grips with it. Too few see a career option in the wood industry, Austen says. By 2019, 53% of the UK timber industry's workforce will be over 40 years old. At the same time, 63% of the world's population will be of generation Z (born in 2000) or millennials (born in 1980).  

Austen then went to the question: What do these young people want? He consulted a Deloitte survey of 12,000 young people. These young generations are very tech-savvy, the younger the more. Who was born in 2000, knows very little without mobile phones. In addition, young people want to have a position that "makes the difference," as Austen puts it, which is perceived as meaningful within the company. Both generations are future-oriented, both in terms of the common good as well as their own career. Corresponding decisions await them from their superiors. These, in turn, have to develop the loyalty of their employees increasingly hard. The exchange rates are high. Flexible working hours and training opportunities increase the willingness to stay in a company. In particular, the company must be up to date with the latest technologies. 91% of Generation Z say it will influence their decision for or against an employer. 44% of all industrial companies have a digital technology development plan over the next three years. In the wood industry this percentage is of only 18%.

CEI Wood

Furthermore, the seminar dealt with solutions to make the European wood industry interesting for young professionals. Danny Scheerlinck, policy officer in the Directorate General for Employment, Social Affairs and Inclusion of the European Commission presented solutions in the area of the social dialogue unit of the European Commission. This unit supports social dialogue at EU level within and across sectors of industry. The unit also provides funding for social dialogue projects and to the European Foundation for the Improvement of Living and Working Conditions (Eurofound).  One focus of the EU social partners’ discussions is on attracting well-educated workers for the respective branches of industry, which includes the promotion of technical subjects in education (STEM = science, technology, engineering, mathematics). Other focal points are working conditions and the image of the industry. These include, on the one hand, aspects of occupational safety, such as the agreement of the woodworking sector on the topic of formaldehyde in the workplace, on the other hand the communication of a positive image of industries. Scheerlinck showed examples from the leather and footwear industry, which are transferable to the wood industry. Attractive products from the industry must be given priority, according to Scheerlinck, and he referred to developments in the bioeconomy. Especially with young people, the parents are an important communication channel, as they have a great influence on the career choices of their children. Especially the wood industry can score with the topic of sustainability.  Finally, he pointed at some initiatives of the European Commission which are focussed on skills and which rely on social partners’ involvement: The European Alliance for Apprenticeships (which includes a mobility component), and the Blueprint for Sectoral Skills Cooperation.

CEI WoodHenrik Smedmark of the Swedish Association of Timber and Furniture Industry TMF asked in his lecture: "How can the timber industry recover the initiative for gaining the interest of millenials?" Before answering, he first pointed out why the recruitment of skilled workers is so difficult: especially in Eastern Europe, many people can not live on a salary in the wood industry. Work and social life can not be combined. The mega-topic of digitization lacks a definition in the wood sector and as a result employees can not foresee the consequences of digitization for their job. Will they be replaced? Or further education? The same applies to the circular economy. They also lack a precise definition in the wood industry. Which qualifications are necessary? Are the existing employees qualified enough? Given this situation, Smedmark asks: "Which parents guide their children to an industry in which they earn little and possibly even be replaced?" The population in Europe is not getting bigger, so where should the timber industry recruit qualified staff? Smedmark referred to IKEA in Poland. The company was one of the best employers there and could serve as an initial nucleus for greater development in the industry. Smedmark recalls what Tom Austen previously said: Young people want a good salary to live from and career opportunities. In addition, they want to be able to combine work and social life, which means flexible working hours. And they want to be able to work until retirement, without having to worry about their job. "This is what the timber industry offers?", Smedmark finally asked. In Austria, in a recent case, it was not possible for a company to find eight qualified employees.

CEI WoodBrigitte Döth's speech, representing the German IG Metall, was more or less comprising the same ideas. She noted that, according to Eurostat, sales in the European wood and furniture industry increased between 2011 and 2016. The number of companies and employees, however, has fallen. According to the United Nations, the population in Europe will decline from 2020 and grow older on average. The average age of employees across the European industry is 43-45 years. In the wood industry it is 48-49 years, says Döth. In addition to this structural imbalance, digitization is becoming more important, leading to a polarization of the work. More highly qualified people will be needed in the future, and more low-skilled in the low-wage sector, with a hole in the middle. These are employees who are currently well qualified for their job, but no longer in the forefront of digitization. The biggest obstacle to digitization in Germany is broadband expansion. Many wood companies are in the countryside, where fast Internet is still lacking. Data exchange for the companies and training opportunities for the employees are thus difficult to impossible. The big plus of the wood industry is that it is one of the few who use natural resources. When it comes to digitization, however, there is a great lack of planning, says Döth, pointing to a satirical graphic from the weekly newspaper ZEIT, according to which the lack of broadband expansion is practically the only thing that prevents job cuts due to digitization. Therefore, Döth calls for a further education offensive in the matter of digitization from the schoolchild to the over-50s. "A 50-year-old is still working for at least 15 years. To not qualify him is a waste of money!," said Döth.

CEI WoodGeoff Rhodes of Geoff Rhodes Associates, a consulting firm for the wood industry and timber trade, notes a massive timber construction boom in the UK and raises the question of how the wood industry can benefit. His answer: Increased involvement in training for wood professionals. For example, there are hardly any wooden contents in architecture at universities. As of 2019, a degree program in wooden architecture and design is now being offered as a pilot project sponsored by the industry. More offers are under construction. In addition, young people need to be motivated to join the wood industry with its many opportunities. For this, the consent of the parents is necessary. And finally you have to get back more wood craftsmen. This has been neglected in the past 30 years. 

CEI WoodHelena Bilius from the Croatian Wood Cluster presented new communication approaches of the timber industry in Croatia. In the media, the wood industry is usually presented as very conservative with low-paid jobs. The interest of young people in the industry is correspondingly low. If you are looking for work, your interest switches to other countries. In response, the Wood Cluster Croatia has responded with a communication strategy for young people. This includes its own wood magazine, the "Wood & Furniture Magazine", which is distributed in the former Yugoslav states. The focus is on young entrepreneurs and their success stories. Social media also play a major role in the communication strategy. Existing state education systems are too general, says Bilius. You have to train more wood professionals, and above all not only in terms of technology, but much more in the direction of communication. International contacts and EU projects must be used as much as possible, Bilius concludes.

CEI WoodFatima Torres, Marketing Director of the Portuguese Association of the Timber and Furniture Industry (AIMMP), presented the communication concept of the association. Several communication specialists work for the association. A lot of emphasis is placed on the importance of social media. Association President Vítor Poças is also regularly featured in the public media, promoting the wood industry. The communication is supported by an industry magazine, fair reports and award ceremonies. An image video titled "The future of the wood industry" aims to target young people.

CEI WoodFor dual learning, the Belgian Woodworking Center uses the Woodual program, as reported by Jeroen Doem. Woodual is a transfer between education and the world of work. As a result, learning content can be optimized, as the trainees experience in practice which skills are needed, for example, in the furniture industry. These include, as a result of Woodual craftsmanship, industrial processes, IT skills and soft skills such as communication or problem solving. Part of the program is also directed towards companies abroad. This will increase problem solving and international mobility, says Doem.

CEI WoodTony Berggren of the Swedish Association of the Timber and Furniture Industry TMF finally presented the vocational training system in Sweden. So far, the system was state-organized, companies and social partners had virtually no influence. With the initiative "Teknikcollege" the industry wants to gain influence on the content and quality of the vocational education. The basis is the experience of the most successful schools. 3,000 companies and 150 schools are involved, with permanent improvements, said Berggren. It consists of industry-wide basic qualifications and special models for individual industries such as the timber industry. In communication with young people, you have to use completely different methods, said Berggren. You need to use social media, where the preferences of users are constantly changing. Also, print media as well as classical internet are practically ineffective with the young people.

Podium 2nd CEI Bois Seminar

Podium at the CEI Bois 2nd Seminar, from left: Anders Ek, Philip de Jaeger, Justin Daerden, Keith Fryer (Mod.), Danny Scheerlinck, Tom Austen, Alastair Kerr (Photo: Marc Kubatta-Grosse)

Anders Ek, Philip de Jaeger, Justin Daerden, Danny Schellinck, Tom Austen, Alastair Kerr and Keith Fryer from the TTF participated in the concluding panel discussion as moderators. The Round identified a dual challenge for the European wood industry, which requires the recruitment of young people while continuing to train older employees to meet future skill needs. Digitization is a problem in parts of Europe due to the lack of broadband expansion. This seems to affect mainly states like Germany. For example, the Belgian representatives see no problem in their country. Smaller communities often do not have the money to build broadband, but the meeting noted that much of the funding for broadband deployment is not available. A major problem could be the incompatibility of the preferences of young people with the realities of the timber industry. Anders Ek says: "Many young people live in the city and stay there. However, the wood industry is mostly located in rural areas. "The wood-based materials industry is particularly looking for engineers, chemists or mechanical engineers. For this purpose, workers from a larger radius are mobilized. They can not be recruited from the local population around the plants. Company-owned academies were mentioned here as a possible means. Also important is the transfer of knowledge between older and younger employees. Thus, Millenials and Generation Z have only about half the vocabulary of older people, but excellent knowledge of mathematics and foreign languages. The strengths of the generations should be combined. It is crucial that companies develop a future plan, but not only for digitization. Only then would it be possible to attract qualified employees for future fields of activity. And the wood industry needs to remember its strengths. This includes the use of a sustainable, renewable raw material in a highly technical environment. This message needs to be disseminated through all available channels in Europe-wide cooperation, said AIMMP President Vítor Poças in his closing remarks. Or as Anders Ek puts it: "Tell the people the good news!" gain qualified employees for future fields of activity. And the wood industry needs to remember its strengths. This includes the use of a sustainable, renewable raw material in a highly technical environment. 

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