Lack of skills is holding back the UK's big reshoring drive - report

More than half of manufacturers in the UK feel they don't have the right skills to take advantage of the growing 'reshoring' trend according to the In-Comm training barometer.

53 per cent of companies said they would need to invest in boosting the skills of the workforce if they are to bring work home, with just over a quarter saying they have successfully brought contracts back over the last twelve months.

A similar number (23 per cent) have kickstarted reshoring strategies, with the majority holding back due to restraints with their current and future workforce.

The findings, which covered more than 100 manufacturers, hammered home the current labour shortage hitting industry and indicated changing perceptions towards 'growing your own' staff.

On a positive note, 82 per cent of management teams have indicated they are planning to take on an apprentice in the next 12 months, citing developing future talent as the most popular reason followed closely by 'filling a skills gap'.

Just 12 per cent said the latter was their reason for investing in vocational learning in 2022, compared to 46 per cent this time around, highlighting what could be a real shift in how firms are taking a longer-term approach to overcoming 'people' shortages.

It appears industry has woken up to the fact that it needs to develop its own talent pools as outbidding rivals for staff is only going to be a short-term fix.

Gareth Jones, managing director of In-Comm Training, said: “It's a very complicated training and skills landscape out there at the moment.

“Engineering and manufacturing seem very buoyant and we're constantly hearing stories of growth and new opportunities, especially around future mobility and a resurgent aerospace sector. Our Barometer echoes this in part, but also paints a picture of a sector that is massively hamstrung by a lack of skills.

“An already huge gap has been accentuated due to Brexit and effects of the pandemic, not to mention the fact that businesses are fishing in a jobs market that is favouring the candidate more than the employer for the first time in years.”

Although more than three quarters are worried about retirement causing an even bigger drain on skills, this is not directly reflected in the number of firms planning to upskill their existing workforce to fill some of the gaps that are appearing.

Only 55 per cent of companies plan to boost the skills of their existing staff, a figure expected to be much higher considering the lack of ready-made options and the benefits of flexible upskilling courses that give the ability to boost the skills of the workforce whilst minimising disruption to production.

Gareth concluded: “I believe this trend can be directly attributed to how more and more manufacturers are engaged in data capture and digital transformation projects, meaning there is an immediate need for skills to support these efforts.

“The potential for electrification is huge, but maybe we are yet to see it permeate down all tiers of the supply chain? These figures tend to reinforce that notion.”

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