What are some of the main reasons behind the skills shortage and who is bearing the brunt of the problem?
There are several causes that come to mind. The pandemic in particular was a significant factor with an estimated 500,000 people leaving the general workforce which has led to far reaching shortages across multiple sectors.
Alongside this there’s a geopolitical issue, in that we’re beginning to really feel the effects of Brexit. We’re losing seasonal labourers as well as skilled workers because individuals are less inclined to try and enter the country, and the initiatives to funnel more people into these professions have come far too late to make a difference for the problem at the present.
Speaking in a general sense, everyone is currently talking about the skills problem. But I would say the areas that have been particularly affected are newly emerging sectors, like hydrogen energy for example, which could struggle to attract the skills of degree educated international workers.
Will manufacturers be affected and if so, on what kind of timescale?
Currently any manufacturers looking to expand are beholden to a labour market which is already spread thin by the skills deficit and shortage. Due to this, they can’t expand production and capacity. A viable solution requires labour, and right now that means having to pay higher salaries than they were doing before the inflation spike.
The issue with this is it will just further exacerbate the pressures on cost bases. So consequently, this will continue to add to the ongoing wage inflation – which is unfortunately not a position employers really want to be in right now.
Certainly, it is my belief that there is no short-term fix coming. I think in order for any change to be made, we need to be looking at developing a culture within all our organisations that focus on the retention of talent while attracting others. This will take time.
What can be done now and, in the future, to help mitigate the issues manufacturers face?
I think organisations need to try and understand the needs and wants of their employees and look at providing the solutions that they’ll find attractive, and in most cases it's not just about salaries.
Embedding training and development is going to be really important and is something I think most UK companies must be focusing on more. This means having skills and talent strategies for smarter recruitment, including school leavers, by providing the opportunity for on-the-job learning.
More and more this needs to be underpinned by a clear sense of purpose, by working towards a clear social benefit. Most of today's newly skilled workers are looking to work for organisations that have a purpose, no matter what the business model of that company is.
Are young people avoiding getting into manufacturing? And what can the government and wider business community be doing to help?
In general, attracting a new generation into the sector will be key. By being more inclusive and having Science, Technology, Engineering, and Mathematics (STEM) outreach initiatives across communities is a massive part of that.
As an example, at our Oxfordshire Advanced Skills training centre in Culham we have worked incredibly hard to spearhead this kind of work. This encourages young people to consider and go onto our engineering apprenticeships, which are delivered in partnership with Amazon, Williams F1 Triumph Motorcycles, Weetabix and SMEs to name a few. Where our partners provide on-site skills development, we then support through knowledge and skills learning at the Advanced Manufacturing Training Centre.
In terms of how the government can help, I think they need to look at tax reforms. We have the apprenticeship levy, but they can support the wider training and development system to help train the workforce in the short and longer term? Increasing the level of funding for each apprentice going into the marketplace would again encourage retention while also inspiring more young people and those looking for a career change to go down the apprenticeship route.