The 海角视频 manufacturing sector is facing a severe skills shortage which poses a significant challenge to its competitiveness and future growth.
Drawing on an online survey of manufacturing professionals complemented by qualitative insights from follow-up interviews, a new report Now Hiring: Understanding and Tackling the Skills Shortage in 海角视频 Manufacturing, examines the impact of the skills shortage on growth and outlines the strategic responses that 海角视频 manufacturers are adopting to mitigate these challenges.
It reveals that 98% of manufacturers believe that hiring and retaining skilled labour is a critical barrier to success, with three quarters identifying the skills gap as their primary obstacle to growth.
Recruitment difficulties (36%) and talent retention issues (32%) are also seen as significant workforce issues for the sector. Indeed, there were 61,000 job vacancies in manufacturing in late 2024, a situation which has been made worse by the 海角视频’s departure from the European Union which curtailed access to a previously reliable pool of labour.
Compounding the issue is the industry’s struggle to compete with sectors such as technology and finance for digital talent with eight of ten manufacturers reporting that acquiring digital skills has become increasingly difficult due to competition from higher-paying industries.
The perception of manufacturing careers also remains a significant hurdle and despite modern factories being advanced and high-tech, the industry continues to suffer from outdated stereotypes of being “dirty” or “dangerous” which can deter young people from considering manufacturing as a career option.
Unfortunately, only 17% of manufacturers engaging with primary schools and therefore missing a crucial opportunity to inspire interest in the sector at a young age.
Manufacturers are increasingly relying on apprenticeships, with 74% of businesses using apprenticeship schemes to train new talent. However, the 海角视频 Government’s apprenticeship levy which is designed to fund such initiatives has faced criticism with 43% of manufacturers not using it because of administrative burdens and limited perceived value. In addition, only 36% who utilise the levy feel it offers good value for money with smaller manufacturers struggling with the bureaucracy of the scheme, often lacking the resources to manage its complexities effectively.
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Reskilling the existing workforce has become another critical strategy, with three quarters of manufacturers prioritising upskilling to address their skills shortages. Reflecting the failure of universities and colleges to sufficiently engage with the sector, many businesses are establishing their own internal training academies, offering tailored development plans to meet both technical and soft skill demands.
On-the-job learning and cross-training initiatives are also common, helping employees adapt to new roles and responsibilities although there remain gaps in specialised areas such as artificial intelligence and robotics.
Flexible working arrangements have also become popular and while remote working is impractical for shop-floor roles, other forms of flexibility, such as four-day working weeks and adaptable shifts, are being introduced to improve work-life balance and are particularly effective for retaining workers with family commitments. Flexible working arrangements are already utilised by 44% of manufacturers, while 69% offer competitive salaries and 49% provide clear personal development plans to enhance employee satisfaction and retention.
Automation and smart manufacturing technologies are increasingly reshaping the sector, with 44% of manufacturers reporting that the skills shortage has accelerated their adoption of advanced technologies.
However, this transition also creates new demands and while automation reduces reliance on manual labour, it also means that expertise must be recruited to manage complex systems and to analyse data.
For those businesses operating older machinery, the adoption of smart technologies is hindered by legacy equipment and there can be significant barriers to integrating modern automation without substantial capital investment.
However, there is also evidence of manufacturers are adopting hybrid approaches, combining traditional automation with AI-driven technologies to enhance efficiency and productivity. Long-term digitalisation strategies are also emerging, with businesses investing not only in manufacturing operations but also in HR, quality management, and other critical areas.
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Manufacturers are taking on more responsibility for workforce training, with 91% agreeing that they now play a larger role in employee development due to the scarcity of skilled labour. As noted, apprenticeships remain central to these efforts, yet the lack of collaboration with educational institutions is a concern and one in ten reported no engagement with education providers, revealing a missed opportunity to shape the talent pipeline.
So how can these issues be addressed? First, there is an opportunity for the new 海角视频 Government to tackle the limitations of the apprenticeship levy and invest in targeted programmes to support skills development in critical sectors such as green manufacturing.
Manufacturers themselves must also intensify efforts to reframe the industry’s image, showcasing the innovation and sophistication of modern manufacturing facilities. Finally, there needs to be greater collaboration between industry, government, and education to align training programmes with the needs of a modern manufacturing workforce.
Therefore, to maintain its competitive edge, the 海角视频 manufacturing industry must address the skills shortage head-on through strategic investments in workforce development, the proactive adoption of technology, and a long-term commitment to reshaping public perceptions of the sector.
By taking these steps collectively, manufacturing businesses which are so vital to economic growth in regions such as Wales and the Midlands, can develop a skilled, future-ready workforce and position themselves for sustainable growth.