36 | Plant & Works Engineering www.pwemag.co.uk August/September 2025 Special Focus Skills & Training British manufacturing is grappling with significant labour and skills shortages that are so severe, they are now disrupting production lines and inflicting substantial financial damage on businesses. Across the board, there are an estimated 70,000 vacancies affecting positions ranging from operatives to engineers. On the one hand, these labour shortages are causing operational efficiency and productivity issues; on the other, they are stifling growth and undermining businesses’ confidence to invest and expand.? The financial losses can be staggering. In sectors like food and drink manufacturing (the UK’s largest manufacturing sector), labour shortages have led to an estimated £1.4 billion loss in output over a year. These financial losses don’t just have an impact on the manufacturers, but also on their supply chains and the wider economy. There are various reasons suggested for the recruitment crisis, ranging from an ageing sector workforce to a worrying lack of interest in either technical education programmes, or indeed taking up a trade, among the younger generation. One area that has been badly impacted is the service and maintenance sector, which has had a knock-on effect around the performance of critical equipment. Maintaining production lines and equipment efficiency A Performance in Focus Maintenance Engineering report published in 2024 by RS Integrated Supply in collaboration with the Institution of Mechanical Engineers (IMechE), highlights the main issues. They include attracting and retaining talent, which was cited as one of the major concerns – over and above any wider economic challenges, such as inflation and rising costs. Furthermore, half the maintenance professionals surveyed believe a shortfall in available skilled labour is contributing to an increase in unscheduled downtime. The report goes on to say that it was taking maintenance teams around 15 hours per week to manage these breakdowns, at a reported cost of around £5,471.95 per hour (around £80,000 per week). Equipment breakdowns can have far reaching consequences for manufacturers. As well as delaying order fulfilments, they can also have an impact on product quality, increase operational costs, reduce customer confidence, and diminish competitiveness. It’s unlikely the pressures will ease any time soon, because even as manufacturers start to embrace Industry 4.0 technologies such as automation, robotics, the Internet of Things (IoT), and AI, to modernise their production processes, there is a worrying shortfall in the number of workers who can manage these systems. These advanced technologies are often equipped with machine learning, monitoring, Closing the skills gap with external service expertise British manufacturing faces a critical skills shortage, with tens of thousands of vacancies disrupting production and driving up costs. Many companies are turning to external service partners to access specialist expertise, boost efficiency, and upskill in-house teams - a strategy helping businesses stay competitive while building a more resilient, future-ready workforce. PWE reports.
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