The Top 5 Manufacturing Trends for 2023
The UK manufacturing industry is facing challenging times. Whether it’s the follow-on effects from the Ukraine war, ongoing supply chain issues, severe energy price hikes or a slowing economy, 2023 will likely continue to deliver some punches.
For manufacturing Hiring Managers, the most pressing issue is persistent staff shortages, so it comes as no surprise that more than two-thirds (67%) of UK manufacturers say their biggest priority this year is up-skilling or retaining existing staff.
In this climate, we outline a few of the biggest manufacturing trends in 2023, along with insights into how you can address the issues they present to not only attract new talent for your open manufacturing jobs, but retain the valued employees you have.
A Continued Emphasis on Work Culture and Conditions
A recent British Chambers of Commerce survey shows UK companies are facing record recruitment difficulties. Out of those surveyed, 85% of manufacturing businesses reported difficulties recruiting, only topped by the hospitality sector at 87%.
There are many reasons behind the talent shortage and unfortunately, it is one of the manufacturing recruitment trends that’s likely to persist for the foreseeable future. However, it needn’t be all doom and gloom as there are plenty of things you can do to address this issue.
From our experience as specialists in the UK manufacturing recruitment industry, here are some suggestions that will bring you two-fold rewards (retaining your current staff, plus attracting new ones):
1. Working Conditions
It is worth taking the time to consider what more you can do to create a safe, comfortable and enjoyable working environment for your manufacturing staff.
Reflect on what you provide in your workspaces. Are they ergonomically-friendly? Do they encourage staff interaction and collaboration? What about employee break areas – are they conducive to rest and rejuvenation (think about noise levels, natural light, comfortable seating, fresh air, cleanliness, and nourishing snacks and drinks)?
Another area is what you provide in relation to impact, reward and recognition. From regularly illustrating how employees’ efforts are making a difference in the company, showcasing great work, or simple ‘thank you’s’ after a hard day, you will be amazed at how these can increase employees’ happiness levels, engagement and productivity.
2. Work-life Balance
Another trend set to continue this year in the greater recruitment landscape is a deep focus on employee work-life balance. It is a tricky area for manufacturing Hiring Managers with a mix of production and non-production staff, many in roles that are not conducive to working from home.
This is reflected in the UK government’s latest Business Insights and Conditions Survey (BICS) with just over 13% of manufacturing companies operating on a hybrid basis, close to 5% working from home and the vast majority (76%) working from a designated workspace.
Thankfully, there are many options when it comes to helping your employees maintain their work-life equilibrium. The 2022 Make UK/PwC Senior Executive Survey of UK manufacturers offers up some great alternatives, particularly for production staff. They found Managers are offering employees:
- Close to 35% individual shifts/hours
- Just over 30% part-time work
- Just under 30% flexi-time and unpaid leave
- One quarter banked hours
- Just under 20% an agreement to no overtime
- 15% compressed hours
In addition, it’s a good move to ask for employee input when it comes to preferred shift times, as well as ensuring there is a fair roster of rotating shifts.
3. Pay and Progression
While highly-skilled jobs, such as Shift Engineers and Maintenance Managers, receive relatively good pay, there are still many manufacturing jobs that are considered low paying, particularly those that involve manual labour.
In an attempt to retain workers and attract new talent, increasing pay is another manufacturing trend for this year. According to the Make UK/PwC survey, 65% of manufacturing companies are increasing basic pay and 38% increasing remuneration packages (including overtime, shift pay and retention bonuses).
But it’s not all about pay. One of the best ways to show your employees how much you value them is to invest in their progression. Almost 58% of manufacturing companies in the same survey are doing that by investing in training, with another 50% in succession planning and career development plans, and one in five undertaking competency frameworks.
It is a savvy strategy to develop individualised professional development plans, soliciting employee input about the type of training and skills they wish to acquire. For those uncertain about their desired development areas, pairing them with a mentor to explore their career path can be beneficial.
Technology Investment
When it comes to manufacturing trends for 2023, it would be remiss to exclude the impact of technology.
Harnessing the power of data, smart technologies, interconnectivity and automation brings many manufacturing business benefits, particularly in reducing inefficiencies and minimising maintenance downtime.
Almost half of all manufacturing businesses surveyed by Make UK/PwC (44.7%) said they have concrete plans to invest in automation, AI, additive manufacturing or other forms of digital technologies in the coming year. Some of this includes investment in shoring up cybersecurity technology to combat this era of increasing cyber-attacks.
On-trend technology areas for manufacturing include the use of:
- IoT to collect and analyse data to optimise operations, improve efficiency and connect locations
- Next-generation predictive maintenance for machinery
- Digital twins (virtual replicas of physical equipment) to monitor and simulate performance, and reduce downtime
- Advanced Cloud systems to improve data visibility, cost efficiencies and people management
Environmental Focus
While almost 50% of UK manufacturers said they planned to invest in green technologies or energy efficiency measures during 2022, it seems many of these plans failed to come to fruition.
According to the most recent BICs figures (February 2023), almost 60% of businesses have not taken action on key climate initiatives, such as having a climate change strategy, a net zero emissions target, monitoring climate-related risks or publishing an annual sustainability report. Surprisingly, almost one in three had not taken any action at all to reduce their business’s carbon emissions.
With sustainability at the forefront of many consumer, employee and investors’ minds, a competitive manufacturing firm is one that both commits to, and takes action, on the environmental front.
Reflect on what further operational changes you could make in this important area. It might be building stronger relationships with local suppliers or switching to energy and resource efficient technologies. For instance, something as small as changing the factory floor and office light bulbs to LEDs, or installing smart meters and renewable electricity and heating. Or it could be greater such as electrifying your transportation fleet and installing charge points.
“New Collar” Employees
The term “new collar” was coined by IBM in 2016 to describe the growing demand for workers in industries, such as manufacturing, who possess the technical skills required but have achieved those through non-college pathways (i.e. vocational schools or apprenticeships).
Here in the UK, we have a similar concept of workers but refer to them as “skilled tradespeople” or “vocational workers.” In recent times, the government has been investing in initiatives to promote vocational education and training, recognising the true value of these skills in our economy.
This year, expect to see the recruitment trend of manufacturing companies placing a renewed focus on such workers, particularly those who offer a blend of technical, physical and soft skills. Maintenance Technicians are a prime example of those who combine multiple trade skills (electrical and mechanical), plus the key soft skills of autonomy, communication and organisation.
The Importance of Employer Brand
In the fast-paced and demanding manufacturing industry, it can be easy to overlook the importance of nurturing and showcasing your employer brand. But it is vital. Cultivating a reputation as an employer of choice helps you retain employees and attract top talent – two-musts in the current climate.
You can develop a strong employer brand by highlighting some of the key factors mentioned above, ones that make you stand out from your competitors. Things like your working conditions and culture, your focus on employee wellbeing and progression plans, your pay and benefits packages, as well as your commitment to sustainability.
Part of this involves embedding your employer branding throughout your marketing materials (website, social media profiles), as well as within your recruitment materials. In doing so, potential candidates get a clearer picture of what it might be like to work with you.
Talk to the Experts in Manufacturing Recruitment
Shaping your employer brand and effectively showcasing it requires time and expertise. This is an area where you can benefit from partnering with a specialist manufacturing recruiter, like us here at CV Consulting.
We understand what top manufacturing candidates want in a new role and can help you curate your offerings to match. We can also oversee the entire recruitment process for you, from interviews to the stage offer and beyond, saving you plenty of time and stress. Please get in touch with a member of our recruitment team to find out more.