28% of engineering establishments reported internal skills gaps between the skills of current employees and those needed to meet business objectives. It is estimated that 11% of employees in the sector are not fully proficient at their current job. 

Skills shortage vacancies include:

• 78% technical and practical engineering skills 
• 31% communication skills 
• 29% problem solving skills

Recently recruited staff and/or staff with a lack of experience are the main contributory factors to internal skills gaps. Studies of international competitiveness and skills levels demonstrate that the British engineering industry may suffer from a ‘latent’ or ‘concealed’ skills shortage, over and above any skill gaps currently perceived by employers.

Technical and practical skills are required at higher levels, particularly for those working in Skilled trade occupations and machine operatives. Skilled metal and electrical trades employees need problem solving and team-working skills at higher levels. Only a low level of IT skills are required, with a majority working in Skilled metal and electrical trades reporting that these skills are not needed.

There is a mismatch between a strengthening demand for graduates and the declining number of mathematics, engineering and physical science graduates leaving university. This has resulted in a significant number of engineering employers experiencing recruitment difficulties and skill shortages.

Skills gaps are evidenced in relation to the higher skilled engineering roles. 62% of small and medium sized enterprises (SMEs) were concerned that there is an inability to attract young people into science, engineering and technology related careers.

Sources: ETB 2004 and Spilsbury Research/SEMTA 2004

For further information on skills gaps and future skills needs for the engineering industries see: automotive, electronics and aerospace.

Keywords
Skills shortage -  this is where a company has been unable to recruit employees with the skills it requires
Skills gap - this is a gap between the skills of a company’s workforce and the skills needed for the company to meet its business objectives

Across all engineering industries the most prevalent hard-to-fill vacancies are craftsmen/women technicians, and operators/assemblers.  Hard-to-fill vacancies (48%) and skills shortage vacancies (24%) are more likely to exist in small companies employing less than 25 employees.  Hard-to-fill vacancies are the result of a low number of applicants with the required skills, qualifications and work experience. There are some differences between industries including:

Electronics companies in England (29%) and Scotland (16%) have hard-to-fill vacancies, with large sites having the most difficulty recruiting.  Electronics companies in Northern Ireland (7%) have the least difficulty with hard-to-fill vacancies.  No companies in Wales report these types of vacancies.  Generally the main hard-to-fill vacancies for electronics are for technicians and machine operator roles.

Automotive companies in England (26%) and Scotland (21%) have difficulty with hard-to-fill vacancies.  Automotive companies in Wales (5%) and Northern Ireland (6%) have the least difficulty.  Overall in the industry, vacancies are greatest in operator and craft level occupational categories.  Hard-to-fill skills include welding skills and the ability to use CNC machinery.

Aerospace companies in England (33%) and Scotland (33%) had the most difficulty with hard to fill vacancies, in Wales (17%) and Northern Ireland (15%) had the least.  Vacancies were greatest for professional engineers, skilled trades (craft) and machine operatives.

Sources: SEMTA 2006 and Spilsbury Research/SEMTA 2004

Source: Spilsbury Research/SEMTA 2004, table 4.2. Based on National Employers Skills Survey 2003 using all establishments.