Labour Shortages-The greatest threat to manufacturing success

Labour Shortages: The greatest threat to manufacturing success?

The UK manufacturing industry is facing an ongoing issue, Labour shortages. According to recent studies, 7 out of 10 UK businesses believe that a restricted access to labour will continue to impact their competitiveness over the next five years. It is not just a short-term issue; it’s a long-term structural threat. Currently 46% of companies have been unable to meet output demands due to staff issues!

Brexit and the Pandemic

One of the early concerns about the UK’s exit from the EU was the restriction of free movement. Many industry sectors, not just manufacturing, warned that they relied heavily on migrant workers and that the scope of dependency in manufacturing settings for migrant workers was as high as 1 in 5 as reported by the Office of National Statistics.

The COVID pandemic did nothing to ease this problem, and many workers returned to their home countries. Due to a combination of changes in free movement and COVID restrictions, those workers were not replaced. Also, during the pandemic, those who were not in key worker roles often found work in other industries. With a 20% dependency on overseas workers, the production line was starting to look a little thin.

Recruitment and retention issue

The numbers speak for themselves when it comes to the recruitment crisis. Unemployment in the UK is currently at a 50 year low at 4.6%. For perspective, the average rate over the preceding 5-decade period was 6.7% with high of 11.9% in 1984.

With so few potential workers, the recruitment market has become highly competitive. Production line-based manufacturing industries such as pharmaceutical or food and beverage find themselves vying for staff with employers in healthcare. In many cases it is simply not viable to increase salaries to compete with other employers. However, there is an additional pressure on salary offers in the light of the cost-of-living crisis, where they rise above the realistic value they bring to the business.

Retention is also an issue. Current workers are being enticed with offers of increased salaries, benefits and job security, partly because of the ultra-competitive response to the employment crisis. Staff churn in production environments is therefore now a subject of increased scrutiny for many employers.

Automate to alleviate the problem

This is why many businesses are turning to automation, not just as cost-saving measure but as a means to keep production running.  By introducing automated coding and labelling systems, manufacturers can ease the pressure on stretched production lines and reliance on hard-to-fill roles.

At i-mark we work closely with businesses across the UK Manufacturing sector to provide coding and marking systems that support both increasing operational efficiency and reducing labour bills. For example, our automated all-electric label applicators  reduce the need for manual label placement, cutting labour costs and improve consistency. Whilst our range of Thermal Transfer Overprinters (TTO) and Thermal Inkjet systems (TIJ) offer seamless, high-speed print integration with minimal operator input. By automating these repetitive processes, manufacturers can minimise their production downtime, improve print quality, redeploy skilled staff to more value-added roles and create a resilient, future-ready production line.

Labour shortages aren’t going away, but businesses that invest in scalable automation are better placed to adapt and grow. With the right equipment UK Manufacturers can reduce their recruitment pressures and stay competitive.

Looking to reduce the impact of labour shortages on your production line?

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