UK’s Manufacturing Talent Crisis

In his latest blog, James Hall, EMBS’s Managing Director says the UK’s manufacturing sector is heading for a talent crisis. 

The UK’s manufacturing sector is heading for a talent freefall, and alarmingly, it seems no one is reaching for the parachute. This isn’t just a challenge, it’s an existential threat to an industry vital for the nation’s economy.

Average Engineer 54

The numbers don’t lie. The average engineer in the UK is 54 years old. A massive wave of retirements is looming on the horizon, and the industry is simply not prepared. There’s a severe lack of bench strength, no effective succession planning and critically, no sustainable pipeline of new talent entering the field.

Yet, despite this looming crisis, many companies are still clinging to fantasy hiring briefs, endlessly chasing “unicorns” – mythical candidates with impossible skill sets. They continue to underinvest in training and treat apprenticeships as mere box-ticking exercises, rather than vital pathways for cultivating future expertise. Worryingly, less than half (46%) of businesses are even planning to increase investment in their training budget this year, a clear sign that external pressures are impacting crucial skills spending.

Not Just A Skills Gap

Let’s be absolutely clear, this isn’t merely a “skills gap.” It’s a profound failure of leadership, strategy and foresight. In just five years, the industry won’t just be short on qualified candidates, it will be out of them.

Adding to the complexity, a new report, the In-Comm Training Barometer, reveals deep industry confusion and a lack of confidence in external solutions. Less than one fifth (18%) of engineering and manufacturing businesses are confident that the government can solve the skills shortage. A staggering 78% of firms believe there isn’t enough support for their training initiatives, and over three-fifths (61%) don’t even understand the purpose of Skills England. This confusion contributes to a fragmented skills landscape, making it harder for companies to balance workforce development with opportunities in areas like electrification and reshoring.

Major Hurdles

The survey also highlighted that while apprenticeship recruitment intentions have seen an uptick (69% of firms looking to recruit apprentices), with priorities focused on developing future talent, fulfilling skills gaps and upskilling, significant barriers remain. In-house infrastructure and access to the right Apprenticeship standards are still major hurdles.

You cannot simply hire your way out of this dilemma when the talent pool is rapidly drying up. If manufacturing businesses aren’t actively growing their own talent, they are effectively gambling with their very future. While some positive signs emerge, such as 81% of firms looking to improve technology to boost productivity and a relatively low struggle with staff retention, the overarching issue of talent pipeline remains critical. The influence of AI in skills development is also still minimal, with only 18% of firms currently using it.

It’s time for a radical shift. The manufacturing sector must wake up, take responsibility and urgently build the robust talent engine this industry so desperately needs to survive and thrive. The future of UK manufacturing depends on it.