Manufacturers report skills shortage

Half of firms are experiencing or expecting a shortfall of experienced Stem staff within three years, finds report

Manufacturing and construction firms are finding it increasingly difficult to find skilled workers and expect the situation to get worse, according to this year’s CBI/Pearson Education and Skills survey.

The survey of 310 companies, which employ more than one million people, revealed that demand for highly skilled workers is particularly strong in sectors critical to the rebalancing of the economy: engineering, science and hi-tech (74%), construction (73%) and manufacturing (69%).

Firms report widespread difficulties in recruiting staff with the necessary science, technology, engineering and maths (Stem) skills, with half (52%) of firms experiencing or expecting within three years a shortfall of experienced staff. As a result Stem study carries a real premium with 40% of employers preferring graduates to have Stem skills.

With an apprenticeship levy for larger employers set to be introduced following the Budget, the CBI is concerned that while it may fund more apprenticeships to meet the government’s target of 3 million, it will not deliver the high-quality, business-relevant training needed, and do little to help small or medium sized businesses.

Katja Hall, CBI deputy director-general, said: “The government has set out its stall to create a high-skilled economy, but firms are facing a skills emergency now, threatening to starve economic growth. Worryingly, it’s those high-growth, high-value sectors with the most potential which are the ones under most pressure. That includes construction, manufacturing, science, engineering and technology.

“The new levy announced in the budget may guarantee funding for more apprenticeships, but it’s unlikely to equate to higher quality or deliver the skills that industry needs. Levies on training already exist in the construction sector where two-thirds of employers are already reporting skills shortages.

“Employers have a critical role in upskilling the workforce, but part of the deal must be for real business control of apprenticeships to meet their needs on the ground.

“The best way to plug the skills gaps and provide quality training is to speed up existing apprenticeships reforms already under way and encourage smaller firms to get involved,” Hall added.