Manufacturing remains one of the UK’s most innovative and strategically vital industries, but behind its strength lies a growing talent challenge. From aerospace and automotive to food and drink, defence and pharmaceuticals, this sector powers 65% of UK R&D spend (Recruitics) and supports 2.6 million jobs (Make UK, 2024). Yet employers are finding it increasingly difficult to attract and retain the people needed to sustain productivity and growth.
The story of UK manufacturing over the past four decades is one of transformation. Since the late 1970s, the sector’s workforce has more than halved, with three million fewer people employed in 2018 than in 1981 (House of Commons Briefing, 2020).
While job numbers have declined, productivity has surged. Output has remained largely stable, even as automation, outsourcing and global competition have reshaped the industry. Today, manufacturing accounts for around 7% of UK jobs (ONS, 2024), yet contributes 10% of GDP and 42% of exports, worth around £217bn (Make UK, 2024).
Manufacturing productivity is now 12% higher than the UK average, with salaries averaging £38,769, around 10% higher than the national average. For all its challenges, this remains one of the UK’s most efficient and better-paid sectors.
Despite strong performance, the workforce is under strain. Skills shortages now account for nearly a third of all vacancies in manufacturing, compared to just 6% nationally (House of Commons Briefing, 2020).
According to Make UK, around 80% of manufacturers report recruitment challenges, and one in ten vacancies takes over a year to fill. The combination of an ageing workforce, post-Brexit labour shortages and global competition for technical talent is putting pressure on every level of hiring.
“In the last 12 to 18 months, we’ve seen the conversation move from having enough people with the right skills to just having enough people.”
Jamie Cater, Senior Policy Manager, Make UK
Smaller firms, in particular, are feeling the pinch, with rising wage pressures making it harder to compete for skilled staff.
The sector continues to grapple with outdated stereotypes of low-skilled, repetitive work. In reality, UK manufacturing is a hub of digital transformation, from robotics and AI to green production methods.
Yet research shows the perception gap remains wide. In a Canon UK study, 44% of manufacturers said attracting and retaining talent was their biggest challenge, while 65% reported difficulty finding candidates with the right technical skills.
Meanwhile, Food Manufacture reports that 34% of firms see hiring new talent as one of their biggest challenges, with 25% of their workforce expected to leave within five years, and over half saying they will struggle to replace that knowledge.
The appetite for learning is evident, with 80% of employees wanting to develop new skills and over a quarter citing upskilling as a core career goal. However, many employers fail to provide structured learning or clear career paths.
Forecasts from the University of Cambridge Centre for Business Research suggest that even if output grows, employment in manufacturing may not rise proportionally. Automation and labour-saving productivity gains will continue to reshape the workforce.
That said, green technology, robotics, and digital manufacturing are creating new roles — and the number of government-supported trainees is slowly increasing, with over 5,000 placements reported in mid-2024 (NOMIS data, 2024).
The challenge for HR and Talent Acquisition leaders is to make these opportunities visible and attractive — and to build internal systems that develop and retain future-ready skills.
UK manufacturing is a global success story — innovative, resilient, and central to the UK’s R&D strength. But its future depends on people.
For HR and TA professionals, this means going beyond vacancy-filling to redefine how the sector is seen and experienced. Those who invest in brand, skills, and workforce development today will be the ones who drive the next chapter of UK manufacturing’s success.
We are the research-led talent experts, helping you find the best talent and make better-informed strategic decisions whilst saving thousands on costly placement fees.
Founded in 2017 by a team with decades of research experience, we're proud to operate worldwide, serving clients in numerous sectors and geographies. We work on a project basis and never charge placement fees, making us a cost-efficient alternative to traditional recruitment options.
© Talent Insight Group 2025
