The manufacturing sector is at a crossroads. A very innovative industry with undertaking significant technical advancement but struggling with growth limiting skills shortages. This is a problem that needs to be addressed as the potential of the manufacturing industry is being constrained as a result of these talent shortages.
What is the Skills Gap?
The manufacturing skills gap is like a puzzle. There are multiple missing pieces and these all need to fit into place if this issue is going to be resolved. A main contributor to the problem is the retirement of experienced and skilled individuals. Furthermore, current educational programs do not align with current industry needs particularly in robotics and data analytics following the significant recent advances in these areas.
Effects of the Skills Shortage
The shortage of skilled workers affects production and competitiveness as companies struggle to produce and innovate. These are key to developing new technologies and products. Economically, companies with skill shortages may delay expansion which could impact other local businesses and regional economies. This may cause a domino effect and is why it is imperative that the manufacturing sector bridges the skills gap to contribute towards sustained economic growth in the sector.
What can manufacturers do to bridge the Skills Shortage?
Bridging this shortage is more than just filling job vacancies with skilled workers - it’s helping to creating a future where manufacturing drives economic growth. Below are just some of ways manufacturers could help attract and train skilled workers into the industry.
Talent Attraction
Attracting talent is key to increasing the size of your workforce. When it comes to recruitment marketing, manufacturers should focus on promoting the positives of working in manufacturing. Manufacturers could use success stories and partnerships with educational institutions to improve the image of the industry and attract new talent.
Training and Upskilling
Upskilling the existing workforce through on-the-job training, mentoring and continuous learning is a great way to increase the amount of skilled workers in your workforce. A great way to do this is too implement technology in training such as online training and virtual reality can make learning more engaging and relevant to generation Z employees.
Retain Skilled Workers
Consider reviewing your work culture. Do your employees feel valued? Do they have clear career progression? From this, you may discover small changes that you can make that will make a huge difference to your work culture which may result in improved retention rate of skilled workers.
How can we help?
Hawsons has a dedicated team of specialist manufacturing and engineering accountants in Sheffield, Doncaster and Northampton.
Our specialist team offers a wide range of services which are tailored to meet your individual needs. Our understanding of the issues faced by the manufacturing and engineering businesses means that we can proactively seek out ways for you to maximise your profitability and minimise your tax liabilities.
Craig Burton
Partner, Sheffield
Free initial meeting
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