UK Manufacturing & Engineering SMEs report high levels of job vacancies

Many manufacturers are now considering a 4-day working week

The UK’s Manufacturing & Engineering SMEs are continuing to report high levels of vacancies as the unemployment rate in the UK remains close to its lowest level since the 1970s, and while demand for talent is starting to slow (the number of job vacancies fell slightly for the first time since August 2020), many firms are considering moving to a four-day week. 

l 62% (UK average: 59%) of Manufacturing & Engineering firms currently have vacancies 

l 50% (UK average: 51%) have struggled to fill vacancies over the last 12 months   

l 37% (UK average: 38%) think there’s a skills shortage in the industry 

The latest independent research* from Close Brothers Asset Finance and Leasing reveals that 62% of Manufacturing & Engineering respondents to the survey indicated they had vacancies available. 

For many Manufacturing & Engineering businesses (51%), filling a vacancy has been a struggle over the past 12 months. The length of time it takes to fill a vacancy varies, but for 50% of firms, it ranges between two to three months, while for 33%, it typically takes up to 30 days. Around 14% of businesses find it upwards of four months to find a suitable candidate for a role. 

Yet, despite business owners saying recruitment has been a struggle, it doesn’t appear to be more difficult than it was previously, with 44% of the view it’s ‘the same as it’s always been’; 32% feel it’s ‘easier than before’ while 20% find it ‘more difficult’. 

Skills crisis?

With much having been said and written about the skills crisis, our research shows nearly two in five respondents are of the view their sector faces a skills crisis, while 46% say there is not; 17% are unsure.  

Four-day week

Interestingly, over half (60%) of firms polled have either already implemented a shorter working week (17%) or are considering it (43%); 35% are not considering it and the rest are ‘unsure’. Unsurprisingly, London tops the list of regions most likely to implement a four-day week, followed by East Anglia. 

Our view

“Small businesses are facing a multitude of pressures, but one thing we do know and understand is how resilient they are,” said Steve Gee, CEO of Close Brothers Asset Finance’s Industrial Equipment Division. “There are many options available to employees and employers are having to be creative to ensure they can attract the talent they need to guarantee success.” 

*All figures, unless otherwise stated, are from a Censuswide survey conducted in July 2022. The survey canvassed the opinion of 911 SME owners across the UK and Ireland and across several industries on a range of issues affecting their businesses. 

www.closeasset.co.uk