To be the best in your field as a business, you must attract the best talent.

Despite rapid innovations in automation technology in recent years, highly skilled and knowledgeable engineers remain the lifeblood of all successful engineering companies. However, the UK faces a significant ‘skills shortage’ in forthcoming years that threatens to undermine its position as a global leader in manufacturing, with the roots of the problem emerging as far back as primary education.

Launched by MAKE UK, 7^th July 2022 is National Manufacturing Day, a chance for schools, colleges, and communities across the country to enjoy a ‘keyhole look’ into some of the nation’s most well-known companies.

Many UK sectors face labour shortages as the impact of Brexit and the global pandemic continue to bite but, in manufacturing, the skills gap is particularly acute. A shortage of specialist skills threatens to disrupt manufacturing output and supply chains in an already uncertain trading landscape.

For two centuries, the UK has been a global leader in manufacturing: the birthplace, not only of the Industrial Revolution, but also of some of the most well-known and iconic brands the world has seen.

The UK has been a manufacturing powerhouse for nearly 200 years: the birthplace of the Industrial Revolution and a key player in defining some of the world’s most recognisable technologies. Most people, when prompted, could name several world-famous large UK manufacturers who have built their reputation on quality and service: Rolls Royce, BAE Systems, Jaguar Land Rover, and Bristan, to name a few.

The UK’s manufacturing industry is deeply rooted in the nation’s history, yet recent times have witnessed the emergence of a skills crisis that is threatening the future of the industry. Between 2008 and 2018, nearly 500,000 manufacturing jobs were lost(1), while estimates suggest that 1.8 million new engineers are needed by 2025 in order to meet the country’s future needs(2).

As the manufacturing sector rebounds from the pandemic, how can businesses adapt to overcome the lingering challenges of 2020-1 and embrace the opportunities that await?

With the country now emerging from the pandemic, manufacturing businesses are anticipating a healthier, more productive future. However, other factors, such as fallout from Brexit – have yet to fully subside, with a shortage in the supply of labour threatening to place a ceiling on recovery and growth.

So, what’s the current picture facing manufacturing SMEs in the UK?

More than any other industrial sector, manufacturing depends on efficient supply chains. Previously, raw materials were transformed into finished products on a single site; however, globalisation has increased the availability of components, helping to suppress costs and increasing the selection of bespoke goods for customers.

Shortly after Christmas 2021, the CBI warned that many UK businesses are facing up to two years of labour shortages, with the manufacturing sector particularly hard hit. It’s a situation that’s not restricted to the UK – similar problems exist in the United States and Germany, for instance – but for a country that is globally recognised as a leader in the field, with strong export sales, a skilled labour shortage in manufacturing has major implications for supply chains and the economy.