Demand is high and supply is tight. In 2025 there were 55,000 unfilled long-term vacancies in UK manufacturing, costing the economy £6bn in lost output every year, according to Make UK's Industrial Strategy Skills Commission Report 2025. Engineering employers feel it most: the Institution of Engineering and Technology (IET) found 76% of engineering employers struggle to recruit for key roles, with technical and specialist sustainability skills topping the list.
Skills gaps now shape growth plans. Barclays Corporate reports that manufacturers rank skills shortages (75%), recruitment (36%) and talent retention (32%) as their top barriers to growth. So as work returns to UK plants, the question is not only how many engineers you need, but which ones.
Automation is rewriting the job spec. Make UK's 2030 Skills report found six in ten (59%) manufacturers cite automation and half (50%) cite wider digitalisation as trends changing jobs and skills needs, while 74% expect demand for cognitive and meta-cognitive skills to increase by 2030. In plain terms, plants want engineers who can program, monitor and problem-solve across digital systems, not just maintain machinery.
There is room to grow too. Make UK's Making it Smarter report notes the UK ranks just 24th in global robotics density, and the government's Smart Machines Strategy 2035, citing the International Federation of Robotics, found the UK used only 101 robots per 10,000 workers in 2020. As investment closes that gap, demand for robotics and controls engineers follows.
The pipeline is a concern. a GOV.UK snapshot of entry-level hiring shows engineering entry-level hiring has fallen to -19% while senior hiring sits at -10%, a 9-percentage-point gap. That means fewer junior engineers coming through to learn these new skills on the job, so plants need a plan for both experienced hires and the next generation.
Start with your own people. the Make UK Executive Survey 2026 found 40% of manufacturers are looking to upskill their existing workforce for redeployment as a result of automation and digitalisation, a figure that rises for firms with more than 1,000 employees. Map the digital and robotics skills you will need, then decide what to build internally and what to bring in.
Look close to home for new talent. GOV.UK's review of professionals in IT and engineering notes the vast majority of new engineering hires come from the resident labour force, indicating low reliance on international recruitment. Pay helps you stay competitive: the Migration Advisory Committee found pay for engineering professionals on the Skilled Worker route is broadly in line with the UK average, so your local offer needs to stand on its own.
Then hire for adaptability. With cognitive and problem-solving skills in growing demand, test for how someone learns and works across systems, not just their machine-specific history. Protect your new hires by investing in retention early, since recruitment and retention both rank as top barriers to growth.
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