The skills challenge facing UK manufacturing businesses
The UK’s manufacturing industries are challenged by financial uncertainty, supply chain instability, and concerns about what the change in government could herald for them.
The government has shown its cards
The 2024 Budget has brought good news and bad to businesses in this industry sector. On the one hand, the government expressed a commitment to building resilience within this sector, investing heavily by way of additional funding to boost confidence and output across a range of key areas including construction and life sciences.
On the other hand, it has raised the minimum wage and increased employer national insurance contributions, meaning that businesses will have to pay more to keep the staff they have and may struggle to attract the staff they need.
The ongoing skills challenge
75% of manufacturing businesses state that skills shortages are their greatest barrier to growth, with recruitment and retention becoming ever-more challenging due to strong competition from other sectors and outdated perceptions about what manufacturing entails.
What can be done to resolve the skills challenge?
Manufacturing businesses such as Poeton, a specialist in thermal plasma spray technology, believe that the future lies in upskilling their existing workforces to meet the demands of tomorrow, equipping them with high-tech digital skills.
Further to this is the need to inspire the next generation to pursue a career in manufacturing by collaborating with local educational institutions to promote the opportunities available to those wishing to enter the sector.
Manufacturing businesses must recognise that other industry sectors offer attractive benefits packages, including the ability to work flexible hours or from remote locations. It is not possible to offer remote working to manufacturing personnel, but savvy businesses wishing to drive resilience into their operating models must consider whether flexible working could help attract and retain skilled talent who may otherwise be lured elsewhere.
In conclusion
UK manufacturing businesses are balanced on a precipice, torn between the need to recruit and retain talent but faced with ever-increasing costs to do so. They must find innovative solutions to develop a sustainable and resilient workforce.
