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Manufacturing is a key sector in a country’s economy. The industry is synonymous with job creation and is essential to the production of goods and services, which in turn drives global trade. With technology, the rate of production has increased exponentially, particularly in developing nations like India and China.
In the United Kingdom, manufacturing accounts for up to 23.1% of the country’s GDP and employs approximately 7.3 million people. This is a significant sector, and the loss of critical skills in the industry is a major cause for concern.
Without the necessary skilled and experienced people to drive manufacturing forward, the UK faces a dire problem. Trade, employment, and economic growth are all majorly driven by production, and with a pending crisis looming, Great Britain and its surrounding areas will need to amp up efforts to attract, develop, and deploy skilled labor in the manufacturing sector.
Time to combat the UK skills shortage
The United Kingdom is currently experiencing a skills gap in the manufacturing industry. According to a study conducted by the Engineering Construction Industry Training Board, close to 20% of the country’s engineering workforce will retire in 2026.
This will inevitably slow down production and deeply impact the country’s competitiveness on a global scale. Having excellent manufacturing teams is critical to innovation and production. Experts have looked at some of the solutions that can be implemented.
Developing your talent pipeline
1. Early talent and diverse pipelines:
Focusing on graduates is simply not enough for countries in a similar position to the UK. While foreign hires can provide a temporary solution, countries that are serious about managing the skills gap will have to intensify efforts at developing talent from a younger age.
Taiwan provides a compelling case for developing talent in a hyper-specialized industry. 90% of the world’s semiconductors come from Taiwan. They have built a pipeline that starts as early as high school with STEM-focused institutions that lay a foundation for engineering, robotics, coding, and electronics.
What they’ve illustrated is that a genuine commitment to developing a manufacturing pipeline starts from as early as possible. In the US, a similar program has been introduced to drive students toward careers in engineering and production in order to combat their aging workforce. Practical postsecondary education pathways enabled more than 30,000 students in Ohio to gain manufacturing-related qualifications.
2. Upskilling and retaining your talent
Developing a talent pipeline is a long-term solution to mitigating the looming skills shortage crisis. To bridge the gap in the medium term, an upskill and talent retention program is required.
The UK will have to prepare for the mass exodus of Baby Boomers in the workforce, who have arrived at retirement age.
Gen X talent, presumably in the middle to senior management, will need to be absorbed into the roles left vacant, and upskilling programs are crucial to this knowledge transfer and transition process.
Future-proofing talent is a critical immediate response to the looming crisis. Manufacturing and engineering are sectors that respond quickly to changes in technology, and agility in this industry is essential to remaining competitive.
China stands out as a case study of how tech-driven manufacturing processes can catapult a country’s growth and drive economic advancement. As we hurtle towards Industry 4.0 companies need to invest in training and development to ensure the UK remains competitive and responsive to market needs.
Hiring the relevant digital talent is not quite as simple as it sounds, either. The manufacturing sector is in direct competition with financial services and tech companies, both of which pay substantially more and have a level of “prestige” attached to the job. Engineers prefer to work for global tech companies like Facebook, Apple, Amazon, Netflix, or Google (collectively referred to as FAANG companies).
Further adding to the conundrum is the fact that attracting international hires is becoming increasingly difficult. A combination of Brexit and government policies places the UK in a precarious position, where they are struggling to attract top talent.
The combination of these issues further solidifies the idea that the UK will need to redouble their efforts to upskill and reskill their existing workforce.
3. Nurturing young talent
The UK government spends approximately £353 million (about $436 million) on apprenticeships. They cover approximately 95-100% of the costs, incentivizing employers to train and develop young talent.
While this is a commendable effort, the government has yet to extract value from these schemes. The demand for apprenticeships is high, yet research shows that approximately 47% of people enrolled in apprenticeship programs are dropping out each year.
With the cost of living steadily increasing in the UK, the stipends offered during these programs barely cover transport costs. In other instances, employers are not offering the training, mentorship, and hands-on learning the programs claim to provide.
The Industry’s Response
In response to the difficult circumstances and looming skills shortage crisis, the industry has started making changes to attract, develop, and retain talent. Offering higher wages and financial incentives is a popular strategy, enticing new hires and retaining existing ones.
Another useful tool is enhancing workplace development and training, placing emphasis on career growth and employment opportunities. Many manufacturing companies are leveraging technology as much as possible to enable hybrid working structures.
According to Jamie Cater, Senior Policy Manager at Make UK, the focus should be on supporting the current workforce by prioritizing retraining and upskilling. “It’s essential to equip employees with the skills needed to tackle major challenges. This includes greater investment in leadership and management development. Strong leaders are critical for navigating teams through complex changes, such as adopting flexible working models or transitioning to four-day work weeks. Alongside technical expertise, social and emotional competencies are increasingly vital for effective management.”
Manufacturers remain dedicated to building a robust workforce, investing in both current employees and the next generation of talent. Apprenticeships continue to play a significant role in this effort, despite ongoing challenges associated with the Apprenticeship Levy.
Conclusion
Addressing the UK’s manufacturing skills gap requires a multi-faceted approach that prioritizes both immediate and long-term solutions. The sector must embrace strategies that combine early talent development, upskilling, and effective retention practices.
By investing in structured apprenticeship programs, fostering diverse talent pipelines, and promoting the industry as a hub for innovation and high-tech opportunities, manufacturers can reshape perceptions and attract the next generation of skilled workers.
Equally important is the need for leadership and management training to navigate the complexities of a modern manufacturing landscape marked by rapid digitalization and changing workforce dynamics. Employers must actively invest in the growth of their current workforce, leveraging mentorship, continuous learning, and flexible work arrangements to retain experienced talent and bridge knowledge gaps.
The stakes are high: Failing to address the skill shortage could jeopardize not just individual businesses but the competitiveness and economic health of the UK on a global scale. However, with a strong commitment to innovation, collaboration, and strategic workforce planning, the manufacturing sector can overcome these challenges and continue to thrive as a cornerstone of the economy.