A new report reveals alarming skills shortages across England’s manufacturing sector, with 92% of small and medium-sized enterprises (SMEs) expecting workforce gaps in 2025. The third annual Skills Horizon Barometer, published by the Skills for Life campaign, highlights that 33% of these shortages are at entry-level positions, while 38% of firms report deficits in specialized roles. Despite these challenges, concerns over staff retention have slightly eased, dropping from 33% in 2024 to 30% this year.
AI Skills in High Demand as Firms Adapt
Artificial intelligence is reshaping recruitment priorities, with 23% of SMEs planning AI training programs or hiring specialists in the field. The study found that 19% of businesses already use AI daily, while another 20% deploy it occasionally. Additionally, nearly one in five employers (19%) now consider AI proficiency a valuable asset on job applications, signaling a shift toward tech-driven hiring criteria.
Soft Skills Remain Critical for Hiring Decisions
Beyond technical expertise, manufacturers prioritize human qualities when recruiting. The top five sought-after traits for 2025 include:
- Strong work ethic (40%)
- Pressure resilience (30%)
- Teamwork, quick learning, and adaptability (28% each)
- Cultural fit (22%)
- Digital competency (19%)
The data also shows a growing openness to non-traditional career paths, with 22% of firms willing to hire school or college graduates and 25% considering candidates from unrelated fields.
Apprenticeships Emerge as Key Solution
Stephen Wilde, Managing Director of Southbourne Rubber, emphasized apprenticeships as a strategic fix: “We hire three to four apprentices annually—they bring fresh energy, and we tailor their training to our needs.” The report promotes government-backed upskilling initiatives like T Levels, Skills Bootcamps, and Higher Technical Qualifications (HTQs) to address sector-wide gaps.
Government Pledges Support for Workforce Development
Jacqui Smith, Minister for Skills, affirmed commitments to bridging shortages: “Through apprenticeships and Skills England, we’re equipping workers for AI, green tech, and construction roles—driving both opportunity and economic growth.” The findings underscore an urgent need for industry-education collaboration to future-proof Britain’s manufacturing workforce.
Related Topics: