UK Manufacturing Industry: Navigating Global Challenges and Investing in Skills Development Despite Pressures

The UK manufacturing industry is facing numerous challenges, including supply chain disruptions, conflicts in Europe and the Middle East, political uncertainty, and inflation. Despite these difficulties, 86 per cent of firms surveyed have maintained their spending intentions for training and development. This includes investing in new technology, with 75 per cent citing a need to develop future engineering skills as their reason.

However, despite these positive intentions, 72 per cent of respondents feel that there is inadequate national government support for training. Specifically, 44 per cent are seeking better funding for apprenticeships and 39 per cent are looking to boost upskilling initiatives. Gareth Jones, managing director of In-Comm Training, expressed his surprise and satisfaction that companies have prioritized addressing their skills gaps rather than cutting budgets despite these challenges. He emphasized the sector’s overwhelming commitment to supporting apprenticeships and addressing the skills shortage to ensure the continued success of UK manufacturing.

The report also highlights that reshoring initiatives have become increasingly difficult due to global pressures. In fact, only 18 per cent of manufacturers were able to achieve reshoring success in 2024 compared to 28 per cent in 2023. Nearly half of the respondents stated that they lack the necessary skills to facilitate reshoring initiatives. Jones emphasized the importance of understanding what reshoring entails and providing the support needed for UK companies to make it a reality.

Skills and productivity are crucial factors in determining whether businesses are prepared to compete for reshored work or find it easier to secure projects within domestic supply chains. The full report can be accessed for further insights on these trends and challenges faced by the manufacturing industry.

In summary, despite global pressures affecting the manufacturing industry over the past year, companies continue to maintain their spending intentions for training and development programs such as new technology investments and apprentice recruitment plans. However, there is still a need for better government support for these programs as well as an understanding of what reshoring entails in order for UK manufacturers to remain competitive in today’s global marketplace.