There was a surge in demand for field service roles at the end of 2024. And, other areas like design, quality, and maintenance engineering, are also more active as the need for skilled professionals persists as a universal challenge across the sector.
One of the significant trends observed during 2024 was the difficulty in finding sufficiently qualified professionals to fill available positions. This year will remain the same, regardless of the engineering specialty, there will be a struggle, without using a recruiter, to source enough suitable professionals for each role.
This shortage has been exacerbated by factors such as Brexit, which led to the return of many skilled professionals to their home countries, particularly in machining. This area, which once thrived with a strong talent pool, has seen a significant decline due to a combination of repatriation and the establishment of competitive manufacturing facilities abroad.
The impact of national economic trends
Economic trends, including inflation and the cost-of-living crisis, are also influencing the job market. The challenge lies in the uniformity of salaries nationwide for comparable skill sets. This parity makes it difficult to incentivise relocations, as professionals see little reason to move from regions with a lower cost of living to higher-cost areas like London or the South East without a substantial salary uplift.
However, small and medium-sized enterprises (SMEs) often cannot afford to increase salaries across the board to accommodate these discrepancies. Instead, they are exploring creative recruitment strategies, such as hiring less-experienced talent and investing in their training to fill gaps.
The changes announced in the government Budget at the end of last year, particularly the increase in the national minimum wage, are expected to impact businesses more significantly at the lower end of the workforce when they come into play in April 2025.
For instance, production operative roles may see a strain on hiring budgets, leading companies to weigh the cost of additional hires against potential overtime for existing staff. For higher-skilled roles like maintenance engineers, the impact is likely to be less pronounced since these positions are essential and non-negotiable for operational continuity.
Recruitment challenges and evolving strategies
The recruitment process itself has shifted dramatically in recent years. Companies now recognise that jobseekers often have multiple offers and can afford to be selective. To remain competitive, businesses are focusing on creating a positive candidate experience during recruitment.
A poor reputation in the hiring process can deter potential talent in a closely knit sector like manufacturing, where word-of-mouth and professional networks are influential.
In terms of talent availability, the reluctance of candidates to relocate remains one of the most significant challenges. Despite national salaries levelling out, discrepancies in living costs between regions make it difficult to attract applicants from areas like Leeds to higher-cost regions such as Essex or London.
Furthermore, large employers like Amazon have driven up local salaries in some areas, making it harder for smaller businesses to compete. However, there are some positive developments. International workers, particularly those relocating due to family ties with NHS or care sector employees, are contributing to the talent pool. These professionals are often highly skilled but require an initial opportunity to gain UK experience.
Once established, they tend to be loyal and progress rapidly in their careers, filling critical gaps in the workforce.
Work-life balance and benefits: meeting candidate expectations
Professionals’ and jobseekers’ expectations around work-life balance and benefits have shifted over the last few years, post-Covid. Manufacturing companies, which traditionally adhered to rigid schedules, have begun introducing more flexible working arrangements to attract and retain employees.
Examples include innovative shift patterns that maximise downtime, allowing employees to pursue side projects, manage childcare, or simply enjoy more personal time. For instance, some businesses have implemented systems where employees work only 16-to-18 days per month while maintaining competitive salaries, a proposition that has proven highly attractive.
In terms of benefits, flexible working, opportunities for career development, and creative compensation packages are aligning more closely with what employees are seeking. These efforts are essential in an environment where companies must sell themselves as much as professionals must sell their skills.
Diversity and inclusion in engineering and manufacturing
The engineering and manufacturing sector is making strides in diversity and inclusion. Employers are increasingly focused on offering equitable hiring practices and creating a welcoming environment for all professionals. The emphasis is on skill sets, with companies actively accommodating applicants’ needs during the recruitment process to ensure the best possible experience.
This approach not only broadens the talent pool but also helps to build a positive employer reputation in a highly interconnected industry. Despite progress, there is still work to be done to increase the representation of women in engineering roles. Female engineers bring a unique perspective and dynamic to the workplace, and their presence is highly valued by businesses.
However, there is a need for greater outreach in schools and educational institutions to encourage young women to consider engineering as a viable and exciting career path.
The road ahead for engineering and manufacturing
Looking ahead, the engineering and manufacturing sectors are poised for growth. Advances in process manufacturing and the emergence of new industries promise to create fresh opportunities.
However, addressing the long-term skills gap remains a critical priority. Investing in grassroots development, such as apprenticeships, will be key to ensuring a steady pipeline of talent. Companies that focus on nurturing the next generation of engineers are likely to see the greatest success in navigating the challenges of the coming years.
Salary and benefits insight from a recruiter
Salaries in the engineering and manufacturing sectors are trending upward, though the rate of increase varies. While higher wages are becoming the norm for essential and skilled roles, SMEs often struggle to match the competitive salaries offered by larger companies or those in urban areas.
This has led to an increased emphasis on non-monetary benefits, such as flexible working arrangements, additional time off, and opportunities for professional growth.
Businesses that succeed in attracting talent are those that go beyond salary. Offering tailored benefits, fostering a positive recruitment experience, and demonstrating a genuine commitment to employee wellbeing are critical strategies.
With professionals prioritising work-life balance, innovative shift patterns and opportunities for side pursuits or personal development have become particularly attractive.
The engineering and manufacturing job market remains vibrant but challenging. Companies must be proactive in their approach to recruitment and retention, focusing on flexibility, inclusivity, and long-term talent development to thrive in an increasingly competitive landscape.
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