Now in its third year, the Skills Horizon Barometer, launched by the Skills for Life campaign and featuring commentary from manufacturers Southbourne Rubber, found that just over nine in 10 (92 per cent) of businesses in manufacturing are anticipating some a skills gap, with a third at entry level (33 per cent) specifically.
It was also found that nearly four in 10 (38 per cent) SMEs in the industry have noticed a skills gap in specialist areas. However, concerns about retaining staff have decreased since last year – 30 per cent of SME employers cited it as a worry this year, compared to 33 per cent in 2024.
More widely across England, when it comes to specialist skills, opportunities with AI are firmly on the radar for the year ahead, as nearly a quarter (23 per cent) of firms are poised to train their staff in AI related skills or recruit those with knowledge in the field. The research found that one in five (19 per cent) are regularly using AI in day-to-day operations, with a further 20 per cent using it occasionally. One in five (19 per cent) of respondents also said that experience in AI is an asset on a CV for potential new recruits.
While AI knowledge is high on the recruitment agenda for SMEs, they are also looking beyond the skillset to find human characteristics or transferable skills that are the right fit for their organisation, too. The top five to pique the interest of employers in the manufacturing industry for 2025 are:
- A good work ethic (40 per cent)
- Ability to work under pressure (30 per cent)
- A team player (28 per cent) / A quick learner (28 per cent) / Adaptability (28 per cent)
- A good personality fit for the business (22 per cent)
- Strong digital skills (19 per cent)
Exploring the type of candidates manufacturing SMEs are looking for reveals employers looking to offer opportunities to those early on in their career, but crucially candidates who have some experience (49 per cent). While one fifth (19 per cent) of businesses still look to hire those from traditional academic routes, such as university, just over a fifth (22 per cent) of firms said they would hire straight from school or college, supporting young people with relevant training to build up their skills, and 25 per cent would look to hire candidates with experience from a different field.
The highlighted findings from the latest Skills Horizon Barometer look to help SMEs understand all the technical education training and employment schemes available to them, including Apprenticeships, T Levels, Skills Bootcamps, HTQs, as well as numeracy and digital skills courses.
“Like other SMEs, we want to onboard more entry level staff members in 2025 and will be looking to apprentices to do so. As we do most years, we’ll hire three to four apprentices to help us with our continued growth," said Stephen Wilde, MD of Southbourne Rubber in Hampshire.
“A real benefit of working with apprentices is you can upskill them to meet demand so it means we can focus on the talent themselves and who might fit well within the business, then shape them through training. We also see new fresh thinking and enthusiasm coming into the workforce via our apprentices – and they genuinely want to be there. We create an environment where they can both work hard and have fun doing so, and the business reaps the benefits.
“I’d encourage other businesses who are facing skills gaps to look into the opportunities available to them via technical education. There are many options for recruiting and upskilling and we have found it to be a really valuable asset.”
Jacqui Smith, the Minister for Skills, Apprenticeships and Higher Education, added: “Meeting the skills needs of the next decade is central to delivering the Government's Plan for Change.
“Employers are key partners in our mission, helping address skills needs across sectors like AI, green tech, and construction. Using Skills Bootcamps, apprenticeships, HTQs, and T Levels, we’re supporting businesses and individuals to upskill, and establishing Skills England to find and fill skills gaps and support sustained economic growth.
“The Skills Horizon report highlights the progress we’re making together – giving people the skills they need to seize opportunity and drive growth.”
The 2025 Skills Horizon Barometer can be accessed and read in full here.
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