From steelmaking and oil refineries, to automotive, aerospace, electronics, and much more – manufacturing is the backbone of the Welsh economy.

In fact, ONS figures show that 11% of jobs in Wales are in the manufacturing industry. That’s significantly higher than the national average of 7.6%. Furthermore, 16% of the gross value added (GDA) to the Welsh economy last year was in the manufacturing sector, demonstrating the substantial contributions of this sector to the wider budget.

Manufacturing goes from strength-to-strength

According to our latest Employment Outlook Survey, manufacturing is currently the most confident sector in the UK in terms of hiring intentions. And it’s the first time since 1997 that it has ranked so positively in our survey. This result may reflect how attractive the sector is to foreign investment at the moment: following the shock election result, currency is cheap and sterling’s weakness is manufacturing’s strength.

However, the picture isn’t quite so rosy in the Welsh jobs market specifically. Once again, Welsh employers – across all sectors – are cautious about hiring. So much so, that hiring intentions stand at their lowest level since 2014, and far below the national average.

For some, it seems that holding a snap election just over a week before Brexit negotiations begin made them even more cautious in their hiring plans. However, low confidence in hiring isn’t new to the region. Wales’ hiring confidence has been below the national average every quarter for the past year.

The future’s bright…

Given the strength of UK manufacturing and the extensive footprint that already exists in Wales, could greater emphasis on growing this industry be the key to improving hiring confidence across Wales as a whole? I think so. After all, the last few months have seen countless good news stories coming out from the Welsh manufacturing market. It’s a great platform for us to build from.

For example, earlier this year, Sony announced that they would produce their ‘next generation’ 4K cameras in Pencoed, South Wales. It’s the first time that these cameras will have ever been produced outside of Japan. To me, this demonstrates the confidence they have in the factory’s highly skilled team and facilities. And I can testify to that myself, having toured the factory recently.

Another positive story coming out of Welsh manufacturing is the Welsh Government’s announcement that it would invest £12 million into the development of a compound semiconductor factory in South Wales. This is the innovation behind future technologies like robots, 5G and driverless cars. It’s set to create an additional 2,000 highly skilled manufacturing jobs in the next five years.

Finally, Airbus recently sung the praises of the Welsh manufacturing market too. Steve Thomas, Government Affairs Executive at Airbus UK, was quoted as saying: We’ve got future bookings extending over ten years. There’s a great level of optimism associated with that order book and the future prospects we have… my advice to other companies looking at operating in Wales is, ‘come and join us’.

Wales going for growth

To be honest, my list of ‘good news’ from Welsh manufacturing could go on and on. But the key point to take away is this: the sector continues to go from strength-to-strength, but there’s plenty more that can be done to grow the sector even further.

Accountancy and business advisory firm BDO LLP highlighted one example. When writing in the EEF’s latest Manufacturing Outlook report, they stressed the need for further education and investment in the UK’s manufacturing sector over the coming years. As the move towards digitisation and automation gathers pace, they say this will ensure we can keep pace with our global competitors and meet the increasing demands of consumers.

This certainly mirrors what I’m seeing in Wales specifically. With additional investment to encourage new manufacturers into the region, and improved education to encourage more workers too, I’m certain that this sector can drive growth and positivity across the entire Welsh economy.

Will manufacturing be able to pull Wales out of its labour market slump? Let me know what you think, by contacting me on [email protected].

To find out more about our expertise in manufacturing recruitment and workforce planning, visit manpower.co.uk/manufacturing or email us at [email protected]

If you look up ‘logistics’ in the dictionary, the official definition is: the commercial activity of transporting goods to customers. It makes it sound very straightforward. Move something from A to B, and hey presto – everyone’s happy.

Of course, those of us who are engaged in the industry know it’s far more complex than that. Furthermore, the industry is developing and evolving more and more every day, with countless social, economic and political trends driving it forwards. Let’s take a look at five of the trends that are shaping and influencing the logistics industry of today – and tomorrow.

1. Industry entry barriers

One of the greatest barriers to driver recruitment is the financial cost of acquiring a licence, according to research from the FTA. If you’ve never worked a lorry driver, you could expect to spend around £5,000 on training costs, before you even spend one minute on the road professionally. That’s a huge amount of money to ask anyone to spend upfront; and it’s potentially even more unreachable for individuals who have been unemployed for some time. It’s clear that more needs to be done to increase the availability of funding support and secure the support of the insurance industry, so more people have the means to enter the industry.

2. Brexit

Last summer’s Brexit vote has left many companies concerned at the potential impact it may have on future labour availability. According to the ONS, 15% workers in the transport and communications industry are non-UK nationals. Of this, 8% of workers are from the EU. When the status quo unexpectedly alters, it’s time to move onto Plan B, and understand how this could affect hiring plans. In short, logistics companies will need to adapt, so they can keep their businesses running smoothly with one hand, while preparing for a different and uncertain future with the other.

3. Gender imbalance

Latest ONS statistics found that there are currently 1,558,000 individuals employed in the transport and storage industry. Of this, 1,243,000 were male – that’s just shy of 80% of the industry. What can employers do to bridge this divide and support more females into their organisation? Better facilities at truck stops and warehouses? More flexibility over shifts? This is something employers need to consider, as a matter of priority. After all, as skills shortages continue to worsen, gender parity isn’t just the right thing to do – it makes clear business sense.

4. Ageing workforce

In a previous blog, I wrote about the ageing logistics workforce, and how this is driving talent shortages throughout the industry. According to the FTA, the picture has improved – but only very marginally. With the average age of drivers dropping from 48 years old to 47.9 years old, there’s still a lot that needs to be done to attract more young people into the industry. At the same time, this ageing workforce also presents another challenge for employers: when drivers reach retirement age, how can the industry retain their skills? Offering flexible working opportunities and seasonal contracts can help to attract these workers back into the industry, so organisations can retain their skills and alleviate skills shortages.

5. Technology

For better or worse, advancements in technology are impacting all industries in one way or another. Where logistics is concerned, technology has the potential to completely overhaul the entire sector. We’ve all heard the developments of Google and Uber, where driverless cars are concerned. However, new technologies can be expensive and require people with specialist skills, so employers are still hesitant to say hello automation, goodbye workers. Only time will tell how much of an impact this will have on the workforce as a whole.

These are five of the more prominent factors that are shaping the logistics industry of 2017, but there are countless more. In the years to come, some of these trends may stop being quite so influential; whilst others are bound to emerge at pace.

Consequently, business success relies on staying one step ahead of these trends. Employers need to keep one eye on the horizon and anticipate what changes are coming their way, so they can adapt their approach to recruitment accordingly.

Manpower can help you with that. We know the world of work never stands still, so we invest in market-leading research which helps companies get the most out of their workforce. In fact, our insights are so valuable that the Bank of England, EU Commission and UK Government use them as a key economic indicator, too.

If you’d like to discuss how these trends are impacting your business today and in the future, please don’t hesitate to contact me directly on [email protected].

To find out more about our expertise in warehouse and logistics recruitment and workforce planning, visit manpower.co.uk/warehouse-and-logistics or email us at [email protected]