The Numbers Don't Lie
UK manufacturing has a problem that's getting worse, not better. According to Make UK's research, there are approximately 55,000 unfilled positions in manufacturing across the country, costing the sector an estimated £6 billion annually in lost productivity.
That's not a rounding error. It's a crisis affecting every tier of manufacturing, from large industrial operations down to the SME suppliers and subcontractors that form the backbone of UK industry.
Why the Skills Gap Keeps Growing
An Ageing Workforce
Walk through most manufacturing facilities and you'll notice something: the average age of the workforce is climbing. Experienced machinists, engineers, and technicians are retiring, and there aren't enough younger workers coming through to replace them.
The reasons are familiar:
- Manufacturing's image problem with younger generations
- Competition from other sectors for technical talent
- Fewer apprenticeship programmes than needed
- Geography (manufacturing jobs often in areas younger workers are leaving)
Technical Complexity
Modern manufacturing isn't the factory floor of the 1980s. Today's roles often require:
- Digital skills alongside traditional craft knowledge
- Understanding of automation and control systems
- Data interpretation and quality analysis
- Programming of CNC machines and robots
Finding candidates with this combination is genuinely difficult.
Post-Brexit Labour Market
The end of free movement from the EU hit manufacturing hard. Many SME manufacturers relied on EU nationals for skilled and semi-skilled positions. Those workers are harder to recruit and retain now, and domestic alternatives haven't materialised.
According to Make UK, 85% of manufacturing SMEs report difficulty filling at least some skilled positions. This isn't a problem isolated to large manufacturers—it affects businesses of every size.
Where Automation Actually Helps
Automation isn't a magic solution that eliminates the need for people. But it can help manufacturers maintain output with fewer workers, and often improve quality at the same time.
The Right Tasks for Automation
Not everything should be automated. Focus on:
Repetitive, High-Volume Tasks:
- Packing and palletising
- Assembly of standardised components
- Material handling between processes
- Inspection and quality checking
Dangerous or Unpleasant Work:
- Heavy lifting
- Exposure to hazardous materials
- Extreme temperatures
- Noisy environments
Precision Requirements:
- Welding to tight tolerances
- Consistent finishing
- Measurement and sorting
- Documentation and traceability
What Automation Can't Replace
Human workers remain essential for:
- Problem-solving when things go wrong
- Handling variation and one-off jobs
- Customer communication and relationships
- Quality decisions requiring judgment
- Continuous improvement and innovation
The goal isn't replacing people—it's letting the people you have focus on work that actually needs human skills.
Practical Automation for Manufacturing SMEs
You don't need a complete factory redesign to benefit from automation. Here are starting points that work for smaller operations:
Collaborative Robots (Cobots)
Unlike traditional industrial robots that need safety cages and dedicated space, cobots work alongside humans:
Typical Applications:
- Machine tending (loading/unloading CNC machines)
- Simple assembly tasks
- Pick and place operations
- Quality inspection assistance
Cost Range: £15,000-50,000 for a basic setup
ROI Timeline: Often 12-24 months, faster if replacing an unfillable position
Automated Quality Inspection
Human visual inspection is inconsistent and tiring. Camera-based systems can:
- Check 100% of parts (not just samples)
- Maintain consistent standards across shifts
- Document findings automatically
- Identify trends before they become problems
Cost Range: £5,000-30,000 depending on complexity
Process Monitoring and Control
Sensors and automation can:
- Track machine performance in real-time
- Alert operators to developing problems
- Adjust parameters automatically
- Log data for quality traceability
Cost Range: Varies widely based on existing equipment
Don't automate a broken process. If your current approach has quality issues or inefficiencies, automation will just do the wrong thing faster. Fix the process first, then automate it.
Funding Your Automation Investment
Money is often the barrier for SME manufacturers. Here's where to look for help:
Made Smarter Adoption Programme
The Made Smarter programme offers:
- Funded digital roadmap development
- Grants covering up to 50% of technology costs
- Access to specialist advice
- Connections to technology providers
Available in several English regions (check current eligibility).
Capital Allowances
The Annual Investment Allowance lets businesses deduct qualifying capital expenditure from taxable profits:
- Robots and automation equipment qualify
- Immediate tax benefit in year of purchase
- Consult your accountant for specifics
Finance Options
Many automation suppliers offer:
- Lease arrangements
- Hire purchase
- Performance-based payment structures
- Rental options for trialling equipment
These can make automation accessible without large upfront investment.
Making Automation Work for Your Team
Getting the technology right is only half the battle. Your existing staff need to be part of the solution:
Involve Operators Early
The people doing the work today know where the problems are:
- Ask what tasks they'd like help with
- Involve them in solution selection
- Train them to work with new equipment
- Listen to their feedback and adjust
Reframe Automation as Assistance
Staff who feel threatened will resist change:
- Position automation as a tool, not a replacement
- Highlight how it handles the worst parts of jobs
- Show career development opportunities
- Celebrate successful human-machine collaboration
Train for New Skills
Automation changes job content:
- Robot supervision and programming
- Data monitoring and interpretation
- Maintenance and troubleshooting
- Quality analysis and improvement
Invest in developing these skills in your existing workforce.
Your best automation champions are often experienced operators who understand both the old way and the potential of new technology. Find these people and give them ownership of automation projects.
A Realistic Automation Roadmap
Year 1: Foundation
Q1-Q2:
- Identify your biggest skills gap pain points
- Assess which tasks could be automated
- Apply for Made Smarter or similar support
- Visit other SMEs using automation successfully
Q3-Q4:
- Implement one automation project
- Train relevant staff
- Measure results honestly
- Document lessons learned
Year 2: Expansion
Based on Year 1 results:
- Scale successful automation
- Add complementary capabilities
- Develop internal expertise further
- Consider more ambitious projects
Ongoing:
- Regular automation opportunity assessment
- Continuous skills development
- Stay current with technology advances
- Share experiences with other SMEs
The Bottom Line
The 55,000-position skills gap isn't going away soon. Waiting for the labour market to fix itself is a losing strategy. Immigration policy changes, demographic shifts, and sector image improvements might help eventually, but your business needs solutions now.
Automation won't fill every gap, but it can help you:
- Maintain production with the team you have
- Make jobs more attractive to new recruits
- Improve quality and consistency
- Compete despite labour constraints
The manufacturers who'll thrive are those who combine skilled people with smart automation—not those who wait for perfect conditions that may never arrive.
Ready to explore automation for your manufacturing business? We help SME manufacturers identify practical automation opportunities and implement solutions that work.
Book a consultation to discuss your specific skills challenges and automation potential.
