Industry calls for action on skills

EURIS, an organisation with 12 UK trade association members, including the British Pump Manufacturers Association, represents industrial product suppliers with a combined turnover of over £148 billion. Recognising that skills shortages across the advanced manufacturing sector are a growing issue for its members, the organisation initiated a membership survey to gather data about skills gaps and vacancies. The survey received 171 responses, with 133 from SMEs and 38 from large companies, and highlighted key actions that need to be taken.

The research carried out by EURIS sought to ascertain how widespread skills shortages are and where the impact is most acute. It is clear from the results that a lack of suitable candidates with skill and experience is reducing the output and potential of UK technology industries. Too many vacancies remain open for too long, and the problem is getting worse.
The results showed that 40% of respondents have vacancies of 5-10% of their workforce, while 20% of respondents said these vacancies take, on average, five to six months to fill. Some 75% of respondents have witnessed an increase in vacancies in the last three years, with over 55% having vacancies for R&D staff, engineers and scientists. Over 60% of those completing the survey reported that vacancies are causing issues with day-to-day operations, and over 40% said that vacancies had reduced business capacity and turnover.

Over 80% believe skills shortages are due to a lack of local labour – not enough suitable candidates are available. Responders reported that a requirement for skilled engineers with degrees that take years of training and a lack of in-house training resources across many SMEs meant that many of the 3-5 million currently unemployed and underemployed people in the UK could not be trained to fill the vacancies. This was also reflected in almost 60% reporting lengthy training periods for new staff – between 6 and 24 months – due to the highly technical and industry-specific requirements.
Overall, these statistics give a worrying picture of the breadth and depth of skills shortages across the advanced manufacturing sector – shortages are significantly impacting the day-to-day operations of businesses across the UK.

Addressing the skills gap
As part of regular meetings with ministers from the Department for Business, Energy & Industrial Strategy (BEIS), EURIS wants to work with the government to address skills shortages in the advanced manufacturing sector and used the survey to try and understand how best to tackle the issue.
EURIS members believe that the government has a role to play in seeking solutions to the issues of skills shortages, and EURIS would like to work in partnership with the government to address skills shortages. This would benefit the whole UK economy and the organisation believes success can only be achieved by industry and government working hand-in-hand on this important issue. EURIS, therefore, believes It is clear from the survey that the following initiatives would help to resolve the current skills shortages that exist in the UK in the advanced manufacturing sector.

Short term recommendations
Apprenticeships – The government needs to work with industry to make apprenticeships easier to manage and to incentivise SMEs to set up apprenticeships and recruit trainees. The introduction of apprenticeships for mature workers would also allow for retraining. Higher education – There should be the creation of more work placement opportunities within Higher education degrees. While the government needs to work with industry and colleges to ensure the introduction of more T Level courses focused on engineering – including work placements – and to raise awareness of these courses to encourage take up.

Training resources – Additional training resources for small companies, including grants and incentives, need to be provided, and training providers should be encouraged to work with sectors with acute skills shortages to attract more recruits through apprenticeships and T Levels.
Overseas labour – The government should consider short-term skilled visas for Commonwealth countries and minimise obstacles for skilled workers from Europe to work in the UK.

Long term recommendations
Education and career choices – Training and education programmes should be created to raise awareness of apprenticeship options for school leavers. Closer links between industry and schools and colleges should be made to provide a route straight into industry for those who don’t wish to go to university. Engineering should be included in the school curriculum so, from an early age, it becomes a career young people are aware of and can aspire to. The government and industry need to work together to ensure careers advisers at schools and colleges are fully briefed on the opportunities of working in the manufacturing sector and the opportunities available through apprenticeships and T Levels. And the government should introduce more STEM initiatives to target women who are still hugely under represented in engineering.