TPT November 2019

G LOBA L MARKE T P L AC E

G LOBA L MARKE T P L AC E

He added: “This focus is reflected when you look at manufacturers’ staffing plans, with nearly 70 per cent reporting that they will be deploying strategies to support the development of their existing workforces… UK manufacturers are seeking stability in the face of this challenging business climate.” A mixed response to growth expectations Looking at business performance, both realised and expected, the Manufacturing Barometer found that, while the percentage of firms reporting that turnover and profits had “much increased” was largely unchanged from previous years, the number of manufacturers finding turnover had “greatly decreased” had increased from 17 per cent to 31 per cent. Only 51 per cent expect to see future sales “much increased”, compared to last year’s 64 per cent. Large falls in sales are anticipated by 22 per cent, with a worrying 15 per cent defining their company’s immediate aspiration as simply “survival”. Dean Barnes, regional director of Economic Growth Solutions , a partner in the Barometer survey, observed: “There is no doubt the swing in performance continues to move downward. However, we can see that UK manufacturing business leaders, overall, are far from accepting doom and gloom, and are deploying strategies to get their growth aspirations firmly back on track.” The Barometer research found evidence that manufacturers are tackling the recruitment challenge by investing in their existing workforces. Asked about their main staffing strategies for the next twelve months, 25 per cent responded they would be focusing on training: “staff retention incentives” (15 per cent), “leadership management and training” (11 per cent) and “coaching and mentoring” (ten per cent) will also form part of the staff initiative. Only 12 per cent said their main focus for the coming year would be “recruiting new permanent staff”. Rising to the recruitment challenge Simon Howes concurred: “Manufacturers are taking proactive steps by investing in their existing people. They know that [these] people are central to their business model if they want their growth strategies to succeed.” Manufacturers will continue to examine and refine their processes, to make themselves leaner, and are developing new products to boost sales and remain competitive, but, added Mr Howes: “When we include the introduction of new processes and people in review of these Barometer findings, we clearly see the importance that manufacturers [in the UK] must place on up-skilling and retaining their current staff.” US firms try flexible recruitment Inevitably, challenges faced by manufacturing in one part of the world are reflected elsewhere. In Indiana, USA, auto

Recr ui tment , staf f and ski l l shor tages Skill shor tages in the manufacturing sector may result in improved training and conditions The issue of employment or, rather, the lack of unemployment, has been exercising industry watchers. Slowing population growth andmigration, together with new industries, are creating a situation where manufacturers are finding themselves short of suitable workers, and it seems that new technology is not necessarily filling the skills gap. Employers worldwide have no option but to make themselves more attractive to their local workforce and, once they have them, to do all they can to keep that workforce motivated. Training may be the key. An increasing number of UK manufacturing firms are seeing turnover and profits fall as they struggle to recruit the number of people their processes demand. As a result, the latest SME Manufacturing Barometer indicates, the sector is learning to nurture. Owners, managers and senior decision makers from 1,000 manufacturing companies responded to a survey by the UK’s SWMAS ( South West Manufacturing Advisory Service ) compiled quarterly to test the experience of UK SME manufacturers. When asked how recruiting skilled and motivated people in 2019 compares with 2018, 54 per cent reported it was more difficult: perceived factors for the difficulties included lack of necessary skills, candidates’ negative attitudes (16 per cent), and 13 per cent of candidates having “unrealistic” salary expectations. Pragmatic approach Only four per cent have found it easier to recruit in 2019. Commenting on the findings, Simon Howes, MD of SWMAS, said: “This is a real problem. We are seeing some worrying signs that the lack of suitably skilled and motivated people could become the biggest shared issue for the sector in the near future. “But manufacturers never stand still, and what we are seeing is manufacturing bosses taking a pragmatic approach and focusing internally… looking at what they already have by way of people, processes and products, and seeing how all three could be improved.”

64

www.read-tpt.com

NOVEMBER 2019