Manufacturers fight for shrinking pool of digital skills

British manufacturing companies are facing “critical” labour shortages as they are forced to compete with leading banks and innovation companies to secure employees with the digital and technical skills needed to drive automation, new research has found.

In a new report published by Make UK alongside accounting specialist Sage, it is revealed that 58% of companies have plans to recruit engineering technicians while 61% want to recruit production and process engineers between now and 2030.

The findings mark a shift towards a stronger focus on the use of data compared to previous industry analysis. This comes after accelerated moves towards digitalisation of production processes in recent months.

More than a quarter of companies now say they need to recruit data analysts and 11% plan to employ data scientists, seen as necessary to make the desired automation changes to drive businesses forward.

However the ‘2030 Skills: Closing the Gap’ report highlights that many of these technical engineering and data skills are in demand across the economy, with competition set to intensify in the coming years. 

Half of manufacturers surveyed say they cannot source the talent their business needs locally and some 62% reported they will not find it easy to ensure their businesses have the skills they need to power ahead to 2030. 

To help address the issue, Make UK calls on the government to create an Employer Training Fund to upskill existing workers and introduce apprentice incentives to train all age groups in the most sought-after skills.

The proposed training fund should be funded by a portion of unspent Apprenticeship Levy monies, says Make UK’s CEO Stephen Phipson, while support should also be provided “to bring through the next generation of talent through routes such as T Levels for manufacturers to train up straight from school”.

Sage managing director Paul Struthers commented: “UK manufacturers are going through a period of transformation adapting their traditional operations and adopting new technologies to be more digitally enabled, remain competitive and reduce costs.

“This evolution has created a need for more specialist, digital skills, required to maximise the benefits of technology. With labour shortages on the rise, urgent reform of the Apprenticeship Levy is required so that manufacturers can access and nurture the talent they need to remain successful and continue to grow.”