Pay disparity likely to hinder companies' manufacturing staff search says RSM UK

Referencing the latest ONS employment statistics for his sector during the fourth quarter of the last year, he said: “The Q4 data demonstrates stability within the manufacturing sector, with total jobs flat lining at 2.66 million. Perhaps unsurprisingly, employment vacancies fell for the fourth month in a row residing at 78,000 compared to 89,000 in the summer. 

“Labour remains a major long-term concern for the sector, given the structural workforce issues in the UK and the ongoing war for talent. Attracting and retaining the best talent is critical for the sector and will ensure that manufacturers can lead the adoption of new technologies.”

Thornton pinpointed that manufacturing sector earnings increased by 2.9% year on year in Q4, well under half of the increase across the entire economy, which averaged 6.4%. A continuing disparity will inevitably lead to further problems, he predicted. 

“‘Whilst much of the latest data suggests that economic conditions may not be as bad as feared a few months ago, the sector does need to address employment in the longer term. We would welcome an industrial strategy for the country which includes employment as an integral element.”

Pay and people partner at RSM UK, Steve Sweetlove, said adoption of automation was among the necessary the solutions to improve productivity, noting the UK’s output per worker was lower than four of the G7 nations. 

Essentra Components’ State of Manufacturing 2023 Report claims nearly three quarters (70%) of engineers working in UK manufacturing consider that business has returned or even exceeded pre-pandemic production volumes.

But almost three quarters of respondents said new recruits frequently lack necessary skills and qualifications, while 62% expect supply chain issues to remain for up to five years.

To mitigate challenges, the report says, manufacturers are sourcing new suppliers (64%) to increasing prices (43%), exploring ways of reducing overheads (c30%). A quarter also use supply chain forecasting models.