Carried over from the prior year like a persistent hangover, the problem of the growing talent shortage looks likely to be a defining challenge for 2026. In this exclusive feature, MEPCA shares advice from three recruitment experts, Hays, Enginuity and Michael Page.
With over 47,000 unfilled vacancies, falling apprenticeship opportunities, the retirement of skilled operatives looming, and rapid technological progress demanding new skillsets, recruitment will be a key challenge for the industry this year. The talent shortfall is putting an increased pressure on businesses, and their employees, as they try to increase output without the people-power required for growth.
To better understand the nature of the recruitment challenges being faced, and to highlight strategies that will help companies put the right people in those vacant positions, we consulted with three manufacturing and engineering recruitment experts.
Providing insights from Michael Page, we have Ruth Hancock, Regional Director, Manufacturing; from Enginuity, we have Fiona McGarry, Sector Engagement Manager; and providing expertise form Hays, Brendan Ryan, Director, Engineering & Manufacturing.
Challenging roles to fill in 2026
Ruth Hancock had found that senior positions, such as “Supply Chain Manager, Maintenance Engineer, Engineering Manager, Design Engineer, and Operations Director,” were proving most difficult to fill.
“As organisations focus on strengthening supply chains, maintaining asset reliability, and driving operational transformation, professionals with these skill sets are in high demand,”
“The hardest roles to fill are those requiring practical, technical expertise, particularly welding, maintenance, and advanced fabrication.” While efforts are being made to encourage careers in industry, this was undermined by a reduced access to apprenticeships:
“Over the past decade, the sector has worked hard to raise the profile of engineering careers and the value of apprenticeships. Yet just as young people are switching on to these opportunities, apprenticeship intakes are shrinking or being paused,” Fiona continued, “Fewer apprenticeship vacancies have contributed to the highest NEET (Not in Employment, Education or Training) figures in a decade.”
As well as senior roles, Hays were seeing demand for skillsets needed for Industry 4.0. “Automation, maintenance, project delivery and multidisciplinary engineering roles are now the hardest to fill as employers modernise operations and prioritise efficiency,”
“The difficulty” Brendan continued, “stems from the depth of the talent shortage: 95% of organisations reported skills gaps last year, and the biggest hiring obstacles expected ahead include a shortage of suitable applicants (66%), competition from other employers (61%) and unrealistic salary expectations (57%).”
THE RETIREMENT OF SKILLED OPERATIVES
According to ECITB[1], 20% of the engineering workforce will be reaching retirement age in 2026. What can businesses do to mitigate the operational impact of retirement?
“Businesses need to act now to protect their skills for the future,” Fiona warned, “Investing in people, by taking on apprentices and helping existing staff develop new skills, is not a ‘nice to have’ but key to keeping operations running smoothly.
“One of the biggest risks is losing valuable, hard-earned knowledge when experienced staff leave. We have seen great success when organisations pair long-standing employees with apprentices, giving them time to share expertise and turn everyday know-how into training that lasts beyond retirement.”
“Organisations should prioritise structured knowledge transfer and succession planning. This includes mentoring, shadowing and documenting critical operational expertise. Strengthening internal development is essential; when it comes to training and upskilling, employees want funded learning (46%), clear development paths (35%) and in house training (32%), all of which help build future capability.
“Hiring strategies must also adapt – positively – 74% of employers across the sector told us they would be open to hiring individuals without all the required skills and upskilling them,” he concluded.
“Building strong apprenticeship and early-career pipelines, implementing structured knowledge transfer, and strengthening long-term workforce planning are all critical.
“Diversifying recruitment channels, exploring return-to-work pathways, and being open to internal moves or transferable skills can also help fill critical gaps. Finding the right recruitment partner is key to executing these strategies effectively.”
ATTRACTING AND RETIANING TALENT
As seen above, due to the demand for particular skills sets outstrips the pipeline of talent, competition is increasingly fierce. How can businesses stand out and attract the people they need?
Both Ruth and Brendan, a strong, well communicated (Employee Value Proposition) is a crucial factor to attracting talent.
“In a highly competitive market, employers must demonstrate they can provide good pay and benefits, showcase good progression opportunities as well as a good workplace culture.”
“Although 84% of employers reported that they increased salaries in 2025, over a third of professionals (37%) remain dissatisfied. Clear progression, strong benefits and culture matter: professionals across the industry are prioritising benefits (49%), work atmosphere (41%), job security (35%) and development (35%) when looking for a new role.”
“Candidates are taking a ‘wait-and-see’ approach, carefully weighing opportunities, while employers seek the right hire. Balancing sector experience with broader capabilities such as agility, systems knowledge, and cross-functional skills opens access to a wider talent pool.
“Wellbeing and work-life balance are now decisive factors, alongside clear career pathways and development opportunities.”
“Employers need to engage with young people early and consistently, creating multiple touchpoints throughout their education. Talent attraction is about showing up and making the sector feel real and reachable.
“That means building school relationships from primary through to post-16 education, supporting work experience and T Level placements, and giving students a clear insight into what engineering and manufacturing look like on a day-to-day basis.”
Conclusion
Solving this complex problem requires tackling it from several angles, from improving routes into industry through STEM subjects and apprenticeships, to retaining staff through upskilling/reskilling and clear EVPs. Added to this, contingencies for knowledge retention will be crucial as staff retire. None of these are easy fixes, but they are feasible, and what’s more they are necessary if UK manufacturing is to flourish.
MEPCA would like to thank the contributors for their invaluable insights. For more information and advice, visit the organisations’ websites.
