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The UK's Engineering and Manufacturing sector is poised for a significant year in 2025, fuelled by the government announcement of a £4.5 billion investment in eight key manufacturing sectors key to economic growth, energy, and levelling up, such as automotive, clean energy, and life sciences.
This substantial funding, available from 2025 for five years, provides long-term certainty and a boost to the industry. While recent economic fluctuations have created some uncertainty, this government investment signals a promising future for the sector.
If you're planning to hire to support expansion or growth within engineering and manufacturing, download our Michael Page Salary Guide for expert insights and salary benchmarks.
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Read on to discover the further trends and market outlook shaping the engineering and manufacturing sectors and how this affects employers looking to hire in the coming year and beyond.
While nearly a third (28%) of engineering and manufacturing professionals are looking for new jobs due to dissatisfaction with their current salary, it's not just about the money.
Work-life balance and location have become increasingly important factors in job satisfaction, as people seek roles that allow them to maintain a healthy work-life balance, often prioritising proximity to family, friends, or preferred lifestyle.
Our data shows that of the engineering and manufacturing professionals surveyed, their top reasons for seeking new opportunities include:
To attract and retain top talent, employers must create a comprehensive compensation and benefits package that addresses both financial and non-financial factors. By offering competitive salaries, flexible work arrangements, and opportunities for professional development, employers can create a more attractive workplace and reduce employee turnover.
To better understand the influencing factors behind career moves and how organisations can prepare to reassure cautious candidates and secure talent, download Michael Page's eBook "Understanding Career Moves."
The competition for top talent is fierce. Delaying offers can result in missing out on key individuals who may accept competing offers. Therefore, those clients who are decisive, move quickly, and extend offers promptly are more likely to secure the best candidates.
Employers are increasingly recognising the importance of a candidate's potential for growth. While it's essential to find the right fit, both in terms of technical skills and cultural alignment, aiming for perfection can often lead to missed opportunities.
The ideal candidate might come in different forms or be different to what you initially expected, possessing strengths in areas you didn't realise your team needed or could benefit from.
Rather than rigidly adhering to a predefined checklist of qualifications, consider the potential of candidates who demonstrate strong core competencies, a positive attitude, and strong potential for growth.
These individuals may have one or two minor gaps in their experience, but their enthusiasm, adaptability, and willingness to learn can be just as valuable as experience.
By investing in talent development and providing opportunities for growth, employers can cultivate a loyal and high-performing workforce. Don't hesitate to make offers to strong candidates, even if they don't tick every box.
Other ways to broaden your talent pool include exploring candidates who possess transferable skills outside of the scope you normally get. Procurement and Supply Chain professionals, for example, may possess valuable skills that can be applied to engineering and manufacturing roles.
This broader approach to talent acquisition allows businesses to tap into a wider pool of potential candidates and find individuals who may not have a traditional engineering or manufacturing background but have the right skills and mindset.
Employers can also broaden their talent pools by investing in early talent initiatives, upskilling their workforce, and creating supportive environments for young talent. By focusing on diversity, mentorship, and skill development, businesses can ensure a sustainable pipeline of skilled workers and address the engineering and manufacturing skills shortage.
To learn more about strategies for attracting and retaining top talent, read our article on addressing the engineering and manufacturing skills shortage.
Download our Michael Page Salary Guide for in-depth insights and tailored salary data on hundreds of roles in your industry.
By understanding these trends and adapting your recruitment strategies, you can attract and retain top talent and drive your business forward in 2025.
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