The leading engineering training provider in the Yorkshire and Humber region
5 Major Challenges Facing the Engineering & Manufacturing Sector
Our Engineering & Manufacturing sector is sacred, with 18% of the UK's working population in an engineering based role, companies in the industry are a primary source of our countries GDP. Despite this, the industry has it's challenges. Below are some of the current issues we've noticed and a few of our potential solutions.
1 - The skills shortage
More than half of UK businesses are currently experiencing skills shortages. It has been calculated that the direct cost of the UK skills shortage is £6.3 billion annually. A cost-effective solution to this issue is to train your current workforce with new skills, as this not only fills a skills gap, but it removes the need to recruit new members of staff or a third party.
2 – Energy costs
Due to an attempt to rapidly transition to renewable energy from fossil fuels, and the ongoing conflict, energy costs are increasing rapidly. This is challenging many companies across all industries to rethink how energy is used, and restructure finances.
3 – Recruitment challenges
The average cost to recruit a new employee in the UK is £3,000, and hiring can take anywhere from a few days to four months. This can lead to a temporary loss of productivity, costing your company in the process. Primarily, this will be a challenge for recruiters, who will have to adopt new technologies to create a demand for STEM careers with the younger generation.
4 – Supply Difficulties
Recently supply chain issues have been a daily challenge for some manufacturing companies. In fact, new data shows that 16% of businesses reported global supply chain disruption. There’s some evidence to suggest that the EU exit and the coronavirus pandemic have affected supply chains, but it’s unclear whether these changes are permanent.
5 – Staff retention
Due to an aging workforce, and engineers working in an applicant lead industry, companies are finding it difficult to retain staff. One cost effective solution that we've found works well is to progress your staffs education, as it demonstrates a commitment to an individuals professional development.