NEWS 10 HYDRAULICS & PNEUMATICS November/December 2025 www.hpmag.co.uk obstacle to progress. Sectors including insurance, finance, manufacturing, logistics and healthcare — where AI, data and automation are critical to future growth — are being heavily affected by the shortage of skilled professionals. The problem, the company argues, is being compounded by a lack of clear digital strategy and leadership at senior levels. Data, AI and Generative AI have advanced faster than traditional technology planning, while resistance to change, security concerns and outdated legacy systems have created further barriers to progress. S&A Academy, which provides bespoke training and apprenticeships in technology, data, science and business leadership, operates nationally across the UK. Its S&A Tech Academy achieved a 100% “achievement rate” for apprenticeship training last year and has launched a new suite of programmes aimed directly at addressing these skill shortages. Managing Director Jemma Perks commented: “We are facing a digital transformation crisis across the UK economy. The economic impact of skills shortages in the insurance, finance, manufacturing, logistics and healthcare sectors are happening now. We are currently seeing a real risk of operational disruption due to a lack of skills in these areas. This isn’t just a training issue; it’s a supply chain and productivity issue that affects British businesses and their consumers. “Demand for qualified and skilled professionals in tech, data and AI across insurance, finance, manufacturing, logistics and healthcare are outstripping the numbers of skilled professionals available. Across British companies there is a severe skills and talent shortage coupled with a resistance to change culture which is creating a perfect storm to throttle the British economy. “At the same time there is also strong demand for a newer generation of skilled professionals in data, tech and AI who can embrace change and transformation. This often means a ‘culture clash’ as established senior leaders in organisations are also reluctant to embrace change culture due to legacy systems, complex new technology and systems.” Digital transformation, Perks added, is as much about improving how businesses operate and make decisions as it is about adopting new technology. New Policy Centre launches to champion SME voices in UK manufacturing and engineering A new, independent Policy Centre, has been established to give the UK’s vast network of small and medium-sized enterprises (SMEs) in manufacturing and engineering a unified, influential voice in the corridors of power. More than 325,000 SMEs, in the engineering and manufacturing sectors, often supply chain businesses, are the backbone of the UK economy, driving innovation, job creation, and growth. Yet their experiences and insights have too often been overlooked in national policy discussions. The Policy Centre for Supply Chain and SME’s, Powered by Enginuity, the former Sector Skills Council,has been created to change that acting as a convener of industry leaders, sector bodies, policymakers, and government, ensuring that the realities facing British SMEs are not just heard, but drive meaningful change at the very highest level. The Centre’s mission is to engage SMEs directly, to unify and amplify their voices as an independent arbiter that brings together industry, industry bodies, policy organisations and government to collaborate on the skills and policy priorities that drive growth and support a thriving and resilient supply chain. Ahead of the budget, Ann Watson, CEO of Enginuity said: “SMEs are the lifeblood of the UK economy yet often fail to be heard by those making policy in key areas at the heart of government – and those honing policy need to listen. “Effective government policy depends on meaningful engagement with the people and organisations whose insights and experience are essential to its success. SMEs are huge in number but that can mean that they can be difficult to identify and engage and their individual voices lacks unification, amplification and clarity. “This is where Enginuity’s Policy Centre can really come in to its, own creating the epicentre between SMEs, Government and others, ensuring that positive and productive engagement and dialogue takes place.” The Policy Centre will work as a constructive ally and critical friend to the UK Government, supporting efforts to future-proof British manufacturing and engineering. By advocating for policies and skills development that reflect the real-world needs of SMEs, the Centre aims to help create a thriving, resilient industrial base that underpins the UK’s growth ambitions. Through advocacy, campaigns, and direct engagement, SMEs will have new opportunities to influence decisionmakers and see their input translated into tangible outcomes. The Centre will also provide clear guidance to help businesses navigate policy changes and contribute to evidence-led dialogue. This is a pivotal moment for UK manufacturing and engineering. With the launch of the Policy Centre, SMEs now have a powerful, united voice at the top table—ensuring their perspectives shape the future of British industry. Watson added: “By gathering robust data, conducting research, and fostering honest dialogue, the Policy Centre will provide evidence-based recommendations to shape policies that strengthen SMEs and reinforce the UK supply chain. We are here to do what’s right for SME’s and the supply chaingiving them a platform and the influence they deserve. “Our approach is collaborative and impact driven. We believe that by bringing together industry, sector networks, membership organisations, and large employers, we can align priorities, amplify influence, and tackle the sector’s most pressing challenges together.” Mike Reader, Labour MP for Northampton South, commented: “Congratulations to Enginuity for setting up the Policy Centre – it’s a big step forward, and I’m proud to be part of that journey with you. “I’m so pleased to see the Policy Centre is being launched to give SME’s a voice in how we develop the skills agenda and opportunities within our industry. Quite often SME’s don’t have that seat at the top table, the Policy Centre is going to provide that route to engage with government and make sure that the policies and outcomes delivered meet the broad SME needs.”
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