92% of manufacturing SMEs anticipating skills gaps, new report finds
Almost nine out of ten manufacturing SMEs in England anticipate some kind of skills gap within their company, with a third at entry level (33%).
This year's Skills Horizon Barometer, launched by the Skills for Life campaign, also found that nearly four in ten (38%) SMEs in the industry have noticed a skills gap in specialist areas.
The number of SME employers citing staff retention as a concern has decreased since last year - this year, three out of ten (30%) said it was a concern, down from three out of ten (33% in 2024).
The use of AI in specialist skills is firmly on the radar for the year ahead across England, as nearly a quarter (23%) plan to train or hire staff with AI knowledge. Researchers found that one in five (19%) companies regularly use AI in their day-to-day operations, with another 20% using it occasionally. Additionally, one in five (19%) say experience in AI is an asset on a CV.
As SMEs look for candidates, they are also looking beyond the skillset for human characteristics or transferrable skills that fit their organisation.
Manufacturing employers will be intrigued by these five top skills for 2025:
A good work ethic (40%)
Ability to work under pressure (30%)
A team player (28%) / A quick learner (28%) / Adaptability (28%)
A good personality fit for the business (22%)
Strong digital skills (19%)
Employers seek candidates who are early in their careers, but also have some experience (49%), when it comes to hiring manufacturing SMEs. A fifth (19%) of businesses still prefer to hire people from traditional academic backgrounds, such as university, but just over a fifth (22%) would hire directly from schools or colleges, providing relevant training for young people to enhance their skills, while 25% would prefer to hire people with different experience.
As a result of the latest Skills Horizon Barometer, SMEs are better able to understand all of the technical education and employment opportunities available to them, such as apprenticeships, T Levels, Skills Bootcamps, HTQs, as well as numeracy and digital skills training.