Only one in 10 UK adults have the higher technical skills that modern industry desperately needs. Last spring, the government’s industrial strategy laid out a plan to boost eight key growth sectors, including advanced manufacturing.
It rightly recognised that expanding employers’ access to investment in skills training is crucial – yet evidence shows the UK still faces a critical “missing middle” of level 4 and 5 technical skills.
The demand for higher-skilled roles will continue to grow over the next decade and beyond, making it essential that the skills system supports rapid, scalable investment in higher technical skills to maintain competitiveness and unlock growth.
Make UK’s research has found that manufacturers are increasing investment in upskilling and retraining existing staff, with a growing focus on higher-level training.
Around 28 per cent report prioritising skills development at levels 4 and 5, and nearly half anticipated doing so within three to five years. While economic pressures may have tempered overall training spend, the underlying demand for higher technical skills remains strong.
This is reflected in Skills England’s analysis of occupations in demand and sector skills needs for advanced manufacturing, as part of its work on the industrial strategy.
While the overall size of the advanced manufacturing workforce may not change dramatically, its composition will – shaped by an ageing workforce, the push for net zero and increasing digitalisation, all of which heighten the need for higher technical skills and the right upskilling options for workers at all levels.
The report Responding to Higher Technical Skills Needs, published by the Gatsby Foundation and Learning and Work Institute in November, set out the crux of the issue for employers.
There is a higher proportion of skills-shortage vacancies in manufacturing than most other sectors, and the skills system must evolve to enable investment at levels 4 and 5.
Many manufacturers hire young people on level 2 or 3 engineering and manufacturing apprenticeships, or use T Levels to build a pipeline of new entrants into critical roles. They are also hiring more graduates for professional engineering roles, reflecting growing demand in occupations such as electrical and process engineering.
But the sector’s skills challenge cannot be met through youth routes alone: there is rising demand for level 4 and 5 technical skills yet employers frequently report that provision is hard to navigate and not flexible enough – especially for SMEs and their employees.
Current policy change presents an ideal opportunity to address this. The government’s commitment to implementing the lifelong learning entitlement (LLE) from next year, alongside greater flexibility for the growth and skills levy to fund shorter-form training, could support progression into higher technical roles.
However, the Gatsby and L&W report highlights that the LLE may have limited impact on upskilling adults in work unless it is accompanied by sufficient, relevant career guidance.
Make UK’s Industrial Strategy Skills Commission, noted in the Gatsby/L&W report, recommended that a skills covenant is drawn up between government, industry and the education sector to resolve the challenges faced by employers, providers and workers.
Beyond high-level funding and resource questions, there are key areas where a difference could be made.
Initiatives such as sector skills passports – hinted at in the industrial strategy and post-16 education and skills white paper – and existing programmes like local skills improvement plans (LSIPs) could boost employer involvement in the design of new level 4-5 provision ahead of the LLE rollout and levy flexibility.
At a critical time for skills policy, improving employers’ access to higher technical skills should be a priority. Industry stands ready to collaborate with the education sector and government to ensure that employers can invest in the skills they need.