UK manufacturing trends: From talent shortages to transformation

There’s no doubt that UK manufacturing has been through huge turbulence over the last couple of years. Both the Covid-19 pandemic and the implementation of Brexit strained supply chains and shrunk the talent pool available to employers.

Nonetheless, the industry is thriving in the post-Covid landscape and has grown fast in 2022. Even amid recent talks of a slowdown due to rising material costs and geopolitical factors, hiring activity remains robust.

To help you stay up to date with what’s happening in the sector, we will be going through the hiring trends within UK manufacturing and what they mean for your business.

A booming talent market in manufacturing

Many commentators and professionals expected the industry to struggle in the wake of the pandemic and Brexit. Instead, the manufacturing sector has seen a significant upswing, especially when it comes to hiring. Companies are looking to grow and expand in 2022 and are growing their headcount to make it happen. Joe Walton, Director at Michael Page Manufacturing, said:

We’ve seen a massive increase in hiring activity over the last few months, and especially in the opening months of 2022. Virtually all areas are busy, but we are seeing particularly strong growth in automotive, building materials and aerospace, job types like quality, health and safety, environment, and maintenance.

Why is the recruitment market so busy?

One of the most important factors in the explosion of hiring activity in UK manufacturing is the race to take advantage of the post-Covid economic recovery. Although continued supply chain disruption and geopolitical turbulence present challenges, business leaders see major growth opportunities on the horizon as the global economy continues its recovery.

Businesses are building for a big year, with many wanting to take advantage of a buoyant market to revamp their strategies and rebuild their workforces - especially their leadership teams. This is proving challenging, however, in a market which is both historically busy and historically candidate short. A scarcity of top talent is impacting sectors across the board, putting the onus on employers to compete for talent, and forcing them to take a more flexible approach to hiring. Ruth Hancock, Senior Operating Director at Michael Page Manufacturing said:

Companies want to take advantage of this market to grow and thrive this year. To avoid being hindered by the talent shortage, employers are hiring much more flexibly, being more adventurous in who they are hiring and what backgrounds they hire from. We are seeing far more movement between sectors and even candidates entering manufacturing from unrelated industries.

Remuneration is rising fast 

With companies eager to hire but top talent proving tough to find, the salaries and benefits packages on offer are improving significantly. Where manufacturing sectors have in the past lagged slightly behind other sectors in terms of remuneration, recent boosts have gone a long way in correcting this. At Michael Page, we have found that remuneration is a main driver for candidates right now. In fact, our recent survey of UK engineering and manufacturing professionals showed that over 1/3 of those who were looking for a new job said that they didn’t feel they were being paid enough in their current roles.

Companies across the board are raising salaries in a bid to attract high-calibre candidates – if you are a hiring manager in manufacturing, it’s never been more important to understand exactly what top talent expect to be paid. To make sure you’re keeping up with market rates, check out our engineering and manufacturing salary guide and our procurement and supply chain salary guide for exclusive industry insights. 

Challenges and opportunities in manufacturing recruitment

The 2022 manufacturing space is a dynamic and exciting place to work and hire. Many challenges are on the horizon, but also opportunities to build upon the growth the sector is seeing.

Talent shortages

Many businesses are struggling to action their 2022 expansion plans, with the combination of the pandemic and Brexit thinning the talent pool and creating new barriers to hiring. Even before this latest talent shortage, however, the sector struggled to be perceived as a desirable destination for young talent. Rising salaries are helping with this, but employers must find ways to change these perceptions further.

Sustainability and transformation

One way to accomplish this is through a renewed focus on sustainability and innovation. Green energy, green technology, and green supply chains will be a huge part of the sector’s future. Meanwhile, ‘Industry 4.0’ is set to see novel technologies like the ‘internet of things’, cyber-physical systems, and cloud and cognitive computing transform the manufacturing sector. Both these trends could help to attract younger candidates and graduates to the sector which it desperately needs. On this point, Joe commented:

The manufacturing sector is a critical part of the drive toward a net zero, more technologically advanced economy. Sustainability and transformation experts are currently in huge demand among its employers, and the sector will in turn become more attractive to these professionals, provided employers promote their opportunities in the right way.

New approaches to recruitment

Innovation in manufacturing must also extend to hiring. With the number of vacancies outstripping candidate availability, now is the time to develop more flexible, agile, and effective talent acquisition strategies. By hiring for potential, developing their upskilling capabilities, and becoming more open to talent from non-traditional backgrounds, companies will be able to navigate this challenging recruitment market and attract the talent they need to thrive this year and beyond.

Our team specialises in placing high-calibre professionals into exciting roles across manufacturing and procurement and supply chain. Our consultants are experts in their local markets with extensive networks of candidates, and the latest recruitment technology at their fingertips.

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