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issue; while there are around 50,000 roles unfilled *, many more positions are occupied by workers without the full skills required to drive productivity. At the same time, demand for advanced capabilities is accelerating rapidly – particularly in sectors such as defense and nuclear.
Layer onto this an ageing workforce, with around a third of employees aged 50 or above *, and the scale of the challenge becomes clear. This is not just a shortage of people; it is a lack of future readiness. Without sustained investment in training and reskilling, the UK risks falling behind in the global race for advanced manufacturing competitiveness.
The risk equation holding SMEs back
For SMEs, this challenge is even more pronounced. Smaller manufacturers are operating with tighter margins, leaner teams and less capacity to absorb risk. Taking on apprentices, while critical for longterm growth, can feel like an unnecessary investment when immediate productivity is the priority. In a high-cost, high-pressure environment, every employee must contribute from day one.
If we want SMEs – the backbone of UK manufacturing – to fully engage in skills development, policy must reflect this reality. That means reducing the perceived risk of training, sharing responsibility between government, employers and providers, and ensuring that learners can add value earlier in their journey. Without this, uptake will remain constrained, regardless of intent.
Turning training into a strategic lever
Encouragingly, the transition to increased flexibility through Growth and Skills Levy signals a shift toward a system that better reflects employer needs.‘ Apprenticeship Units’ were made available in April, which offer short, flexible training courses that upskill staff in critical areas. Skills for manufacturing and engineering led the first wave of seven units which includes: Mechanical Fitting and Assembly; Electrical Fitting and Assembly; Welding; Artificial Intelligence( AI) Leadership( developing AI strategy)
* Skills England: Sector skills needs assessments( June 2025)
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