A report from the Skills Horizon Barometer reveals that 92% of small and medium-sized manufacturers in England anticipate a skills shortfall by 2025, significantly affecting entry-level positions. While concerns about staff retention have decreased marginally, the re-prioritization of skills, especially in AI and soft skills, highlights a critical shift in hiring approaches. Many firms are willing to hire individuals from non-traditional backgrounds, emphasizing the need for developing early-career talent to bridge the skills gap that threatens operational efficiency.
A growing skills gap is set to challenge small and medium-sized manufacturers across England in 2025, with nine in ten SMEs reporting shortages in key areas.
Despite the persistent challenges, concerns about staff retention have eased slightly, with only 30% of SMEs seeing it as a worry this year, down from 33% in 2024.
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