Manufacturers remain concerned about access to skills after Brexit, says new report

The manufacturers’ organisation, EEF, has warned that despite an ease in the number of EU workers leaving industry, there is still concern from manufacturers about a recruitment crunch post-Brexit.

According to a new report launched today (Monday 21 May) from the EEF and global law firm Squire Patton Boggs, nearly half of UK manufacturers remain concerned about their potential access to skills after Brexit.

In ‘Navigating Brexit: The Migration Minefield’ it was found that 17% of companies had seen a drop in applications from European citizens. A further 13% of manufacturers had reported an increase in the number of EU workers leaving their businesses.

With many of those EU employees leaving the UK to return to Europe permanently and manufacturers struggling to recruit suitably skilled workers, the report calls upon the government to act rapidly so that companies and their employees will have a clearer picture of the working situation in a post-Brexit UK.

“Skills shortages are endemic in manufacturing and engineering and companies are becoming increasingly concerned about their ability to access the skills they need post-Brexit,” said Tim Thomas, director of Skills and Employment Policy at EEF. “While the slump in job applications from the EU has slowed, there is still much to be done to make sure UK businesses are still able to attract the very best talent from Europe over the coming months as we proceed towards our exit from the EU as well as retaining that talent after Britain leaves the EU.”

Some companies were revealed to already be taking steps to try to stem the growing skills issue by holding on to older employees with specialist skills. It was found that 16% of those included in the report have either implemented or are in the process of implementing such policies.

Sending workers to Europe, even for simple trips — such as attending a trade fair or exhibition — will become more complicated after Britain officially leaves the EU. With a large proportion (71%) of manufacturers regularly sending employees to other EU states, this could cause wide ranging difficulties.

“Many companies do not realise that sending a member of staff to the EU to attend a conference or trade show involves the same posting mechanism as sending someone to the EU for a month or more,” explained Thomas. “The government must deliver a good trade deal which lets businesses travel into the EU for short term posting as a matter of urgency. This is particularly important in terms of servicing and repair work which are tied into most contracts as well as having the ability to attend trade fairs and market new products and services to sell into EU markets.”

“The UK government should indicate now that a light-touch post-Brexit immigration policy for EU citizens will be introduced and without mirroring the cost and complexity associated with the Points Based System for non-EU workers,” added Annabel Mace, partner and head of Immigration at Squire Patton Boggs. “With less than two years to go before the end of the proposed transition period and the possibility that a new immigration system may take at least another year to be decided on, let alone implemented, it is difficult for manufacturers who rely on EU workers of all skill levels to make meaningful contingency plans.”