Tackling the skills challenge in advanced manufacturing

Why advanced manufacturing skills matter now more than ever

Advanced manufacturing is evolving at an extraordinary speed, and along with it, the skills employers need to grow, innovate and stay competitive. At our recent webinar on advanced manufacturing, which included panellists from Make UK and Cyient, we explored the state of the UK manufacturing workforce, the challenges ahead and the opportunities to reshape skills for long‑term success.

If you're short on time, we've summarised the key insights from the discussion below. You can also access the full recording and slides.

Watch the webinar recordingDownload the webinar slides

The UK skills landscape: a widening gap that demands action

Video timestamp: 05:34

City & Guilds Skills Specialist Joe Bell opened the event with a clear message: the skills gap is no longer a future concern, it's already here. Employers are feeling the strain of a mismatch between education pathways and labour market needs, with research from City & Guilds showing that 57% of L&D professionals report that employees lack the skills needed to execute business strategies.

With advanced manufacturing designated as one of the key growth-driving sectors in the government’s Industrial Strategy, what does this mean for skills? We’re likely to see more of a curriculum focus on the IS-8 and government investment tied to these sectors, including new specialist technical colleges.

Six critical skills challenges shaping the sector

Video timestamp: 08:37

Looking at the advanced manufacturing sector, Joe identified six major skills challenges for employers.

1. Scale of the skills gap
   75% of manufacturers cite skills shortages as the biggest barrier to growth, impacting innovation and productivity.
2. Recruitment and retention
   There are over 61,000 manufacturing vacancies in the UK, driven in part by negative perceptions of the sector.
3. An ageing workforce
   With 20% of employees due to retire in 2026, manufacturers risk losing decades of experience.
4. Emerging skills needs 
   From digital and automation to green skills and sustainable manufacturing, there is a lot for education to keep pace with.
5. Leadership and change management
   We need to develop strategic future leaders who can navigate uncertainty and transformation.
6. Workforce diversity
   With the sector being predominantly male (74%), White (88%) and over 50 (36%), it’s important to increase the diversity of the workforce to drive innovation and fresh thinking.

Employer perspectives on advanced manufacturing skills challenges

The webinar featured two expert voices offering real‑world perspectives:

• Jamie Cater, Senior Policy Manager at Make UK, who are the representative body for manufacturing and engineering employers in the UK.
• Nigel Thomas, Senior Sales Director at Cyient, who provide engineering services to major global manufacturers.

What Make UK is seeing nationwide

Video timestamp: 13:25

Jamie talked through insights gained from survey data collected by Make UK. He highlighted that post‑16 providers are increasingly withdrawing manufacturing and engineering provision due to high delivery costs, teacher shortages and insufficient funding, all of which directly impact apprenticeships at Levels 2 and 3.

He also emphasised:

• Low awareness among school leavers of manufacturing and engineering career pathways
• Barriers preventing employers from investing in upskilling
• The critical need for collaboration between employers, government and providers

Opportunities: what’s working well across the sector

Video timestamp: 21:00

Despite the scale of the challenge, Jamie shared examples of successful initiatives:

• Employer–provider collaboration, including co‑invested delivery models
• Skills Bootcamps performing strongly in high‑demand areas like welding and fabrication
• Seconding skilled staff into local FE colleges to support training delivery
• School and academy partnerships creating pre‑16 technical pathways

What Cyient is seeing in aerospace and defence

Video timestamp: 26:10

Nigel opened by setting the context: aerospace and defence is a sector delivering around £100bn in annual turnover, employing nearly half a million people directly, with salaries running 16% above average. Despite this, the sector is facing a deepening skills crisis. He highlighted:

• A critical deficit of engineers with the advanced digital skills now required, including AI, data analytics and quantum computing capabilities
• An ageing workforce profile: the average age of an aerospace engineer has barely shifted in 25 years, moving from 56 to 57
• Significant knowledge loss as experienced engineers retire
• A demand surge with no adequate supply response
• Many SMEs (80% of the aerospace and defence workforce) are caught between competing OEM technology demands, leaving them unable to commit to a digital strategy and largely stuck in an analogue model

Opportunities: cross-sector mobility and skills infrastructure

Video timestamp: 37:59

Nigel highlighted several emerging approaches he sees as genuinely promising:

• Cross-sector skills transfer between industries such as aerospace and rail, where core engineering competencies overlap and talent pipelines can be shared
• A ‘skills factory’ model, currently in development, to take engineers from adjacent sectors and upskill them for aerospace roles
• Government infrastructure initiatives, including Destination Defence, Destination Nuclear and five new Defence Technical Colleges
• A proposed Defence Skills Passport to enable workers to move more fluidly through the industry across their careers

Looking ahead: a growing challenge that demands more collective action

Throughout the session, there was a shared sense of urgency: advanced manufacturing is a sector of national importance, with demand rising and a workforce that isn’t keeping pace. From entry-level pipelines to digital upskilling, the message from both panellists was that no single employer, provider or government initiative can solve this alone. So, collaboration across the sector is essential, with all stakeholders working together to find and develop the required strategies and solutions.

Watch the webinar recording

How City & Guilds supports employers in advanced manufacturing

As the global skills partner of choice, City & Guilds provides end-to-end support across:

Assured – Training Validation and Quality Assurance
Demonstrate your commitment to L&D excellence and recognise employees’ achievements with branded digital credentials for your internally developed programmes.

Training Consultancy
Expert consultancy services to help you design, create, improve and measure the ROI of internally developed training.

Leadership Development
Empower your leaders and managers through consultancy, coaching, in-house training, qualifications and apprenticeships.

Skills Consultancy
Bespoke, high-quality workforce development and skills solutions. Whatever skills needs you have, talk to us about how we can support you.

Qualifications and Courses
Industry-leading qualifications and courses to help you upskill and reskill your workforce, with flexible in-house or provider-led delivery and expert support.

Apprenticeships
End-to-end apprenticeship support for employers, from programmes and EPA to consultancy services, including Levy optimisation and in-house delivery.

Funded Training and Support
Guidance on apprenticeship funding and other government funding schemes. Helping you navigate options and access funded skills training.