FEATURE Workforce management
RETAINING AND RESKILLING MANUFACTURING WORKFORCES
Mark Williams, Managing Director EMEA at WorkJam, says manufacturers can’t cut their way to resilience, instead they must maximise the capability, flexibility and engagement of the workforce they already have
T
he manufacturing sector is under mounting pressure from geopolitical instability, rising costs, weak demand and a growing range of operational
challenges, testing the resilience of even the strongest organisations. Recent figures from the Confederation of British Industry (CBI) show UK factory order books in July remain at their joint-lowest level since September 2020, while manufacturers also faced the fastest rise in unit cost pressures since late 2022.
The wider industry picture points in the same
direction. Make UK’s latest Manufacturing Outlook Q2 2026 found business confidence at its lowest level since the end of 2022, as firms delay investment and reduce headcount. Against this backdrop, workforce agility is becoming increasingly important as manufacturers navigate disruption while maintaining production. The ability to deploy skills effectively, adapt to changing requirements and support frontline teams is becoming a critical advantage, particularly when expanding headcount is no longer a realistic option. In practice, responding to these changes depends on whether manufacturers can deploy the right people and skills where they are needed. This requires an understanding of the capabilities available across the workforce. Recent WorkJam research helps illustrate the scale of this challenge. It found that manufacturers are under growing pressure to reduce costs, but that the challenge is not simply one of headcount; it’s about how well businesses can make use of the unique skill sets at their disposal.
It will come as little surprise to learn that
more than half (52%) of manufacturers said they have reduced or slowed hiring over the past six
34 September 2026 | Automation
months, with issues from cost and regulatory pressures to production capacity constraints all contributing to the trend. For instance, nearly 40% have already changed how they manage their workforce in response to the Employment Rights Bill and wider labour regulation. More specifically, employment legislation is encouraging manufacturers to review long-established approaches to workforce management, ensuring day-to-day processes remain compliant while supporting operational flexibility. As a result, compliance is becoming more closely linked with day-to- day workforce management rather than being treated as a separate HR exercise. These pressures make workforce agility
more important because manufacturers have less room to rely on additional recruitment when operating requirements change. Instead, they need to make better use of existing skills and give managers the flexibility to adjust workforce deployment as circumstances dictate. When margins are under sustained pressure, maximising the productivity and versatility of existing employees becomes one of the few levers organisations can control. At the same time, the sector remains intrinsically dependent on skilled frontline employees. Many roles require specialised capabilities and experience that can be extremely difficult to replace, as evidenced by the chronic, long-term skills shortage. Last year, Make UK estimated that there are
currently 55,000 long-term vacancies across UK manufacturing, costing the economy £6billion in lost output each year. Its more recent research found that half of manufacturers regard skills shortages as their biggest barrier to growth, reinforcing the importance of
retaining and developing the people already in the business.
Manufacturing productivity depends heavily on accumulated workforce knowledge and experience. Any deficiency in these commodities has a knock-on effect on operational resilience, organisations can ill afford to lose experienced people or the knowledge they possess. Workforce capability therefore becomes a strategic asset rather than simply a labour cost.
Businesses that invest in smarter workforce management are also finding opportunities to improve productivity and reduce operational costs simultaneously. Modern workforce management tools can help manufacturers optimise scheduling, improve frontline communications and ensure employees have access to the information and training they need in real time, strengthening both efficiency and employee engagement.
These capabilities also give manufacturers
greater freedom to adapt when production requirements change. Better visibility of workforce skills allows managers to identify where relevant expertise is available, while more responsive scheduling makes it easier to redeploy that capability across shifts or sites. Training can then be directed towards emerging requirements, enabling manufacturers to address some skills gaps from within.
This also helps explain why, as our recent
research shows, beyond the need to cut costs, manufacturers view employee engagement (16%) and employee retention (15%) as their next-biggest workforce challenges. If cost- saving decisions weaken either of these areas, organisations risk losing the knowledge
automationmagazine.co.uk
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