A new report released today highlights the extent of the skills shortage threatening the growth and competitiveness of the UK’s manufacturing sector.
Produced by The Manufacturer in collaboration with Barclays Corporate Banking, the Now hiring: understanding and tackling the skills shortage in UK manufacturing report presents a detailed analysis of the barriers manufacturers face and the innovative strategies being deployed to address these challenges.
Key findings reveal that:
- 97% of manufacturers say that hiring and retaining skilled labour presents a challenge to the growth of their business
- 91% of manufacturers are taking on more responsibility to train their workforces due to the scarcity of skilled labour
- 80% of manufacturers say that digital skills are harder to acquire because of competition from other sectors
- 75% of manufacturers identify skills shortages as their biggest barrier to growth, followed by recruitment challenges (36%) and talent retention (32%)
The report underscores the complexity of attracting and retaining talent in a sector increasingly competing with higher-paying industries like finance and technology for digital skills. Compounding the issue is the perception of manufacturing as an outdated or unappealing career choice, a narrative that industry leaders say needs urgent reframing.
“This is not just about filling vacancies,” said James Devonshire, News Editor for The Manufacturer and report author. “It’s about creating a sustainable workforce equipped to handle the demands of smart manufacturing, automation and other technological advancements.”
Industry responses: a multifaceted approach
Manufacturers are adopting a range of strategies, including:
- Reskilling programs: 75% are upskilling their workforce to meet the demands of automation and smart technologies
- Flexible working policies: Embraced by 44% of companies to improve employee retention
- Educational partnerships: Collaborations with schools and universities aim to attract younger talent and inspire future careers in manufacturing
Call to action
The report calls for greater collaboration between government, industry and educational institutions to address systemic challenges. It recommends targeted workforce initiatives and a reimagined approach to industry branding to secure manufacturing’s role as a cornerstone of the UK economy.
Digitalisation and workforce development go hand-in-hand. Manufacturers must invest in people and technology simultaneously to remain competitive in a rapidly evolving landscape.
Lee Collinson, Head of Manufacturing, Transport, and Logistics at Barclays Corporate Banking, emphasised the importance of long-term planning: “These insights reinforce the urgency for a multifaceted approach to skills development, with industry, government and educational institutions working together to meet the evolving demands of the sector.”
For more insights, download the full Now hiring: understanding and tackling the skills shortage in UK manufacturing report now.
About the report
Now Hiring: understanding and tackling the skills shortage in UK manufacturing is based on a survey of UK manufacturing professionals conducted between June and July 2024, supplemented by qualitative insights from industry leaders. It explores the root causes of the skills shortage, its impact on growth and the innovative solutions shaping the future of the sector.
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