Impending skills shortage - creating opportunities
Addressing the Inevitable Skills Shortage in Engineering: What Businesses Can Do
A study by the Engineering Construction Industry Training Board forecasts that by 2026, 91,000 engineers—nearly 20% of the UK's current engineering workforce—will have retired or be approaching retirement. Similarly, they estimate that 29,000 technicians, nearly 18% of the current technician workforce, will have retired.
The engineering sector in the UK is facing a growing challenge: a significant portion of the current workforce is set to retire within the next few years, leading to an inevitable skills shortage. A study by the Engineering Construction Industry Training Board (ECITB) predicts that by 2026, nearly 20% of the UK's engineering workforce—around 91,000 engineers—will either have retired or be nearing retirement. The same report estimates that 18% of technicians, approximately 29,000 workers, will also have left the industry.
This impending wave of retirements raises a crucial question: how can engineering businesses prepare for and mitigate the impact of this skills gap? Here's a closer look at the issue and what companies can do to safeguard their future.
The Scope of the Engineering Skills Shortage
The engineering sector is the backbone of many industries, from infrastructure and manufacturing to energy and technology. However, as experienced engineers retire, the industry faces not only the loss of practical expertise but also the loss of institutional knowledge—skills developed over decades that are difficult to replace quickly. The shortage is especially pronounced in areas like electrical, mechanical, civil, and software engineering, where demand for skilled professionals already exceeds supply.
The skills shortage is further compounded by rapid advancements in technology. As industries move toward automation, renewable energy, and AI-driven solutions, the demand for engineers with cutting-edge skills is increasing. Unfortunately, the current education pipeline is not producing enough new engineers to meet this growing demand, creating a gap that could hinder progress in key industries.
What Engineering Businesses Can Do to Prepare
While the skills shortage is inevitable, businesses can take proactive steps to minimize its impact. Here are key strategies to help companies navigate this challenge:
1. Invest in Upskilling and Reskilling Programs
One of the most effective ways to address the skills gap is to invest in the professional development of your existing workforce. Upskilling programs focus on advancing the current knowledge and expertise of engineers, enabling them to take on more complex tasks and adapt to new technologies. Reskilling initiatives, on the other hand, allow workers from different backgrounds or less specialized roles to transition into more critical engineering positions.
By offering targeted training, mentoring, and certification opportunities, businesses can ensure that their employees remain competitive and equipped with the skills needed for emerging technologies and processes. Upskilling also has the added benefit of increasing employee loyalty and retention, as workers feel more valued and see a clear path for career advancement.
2. Attract New Talent with Apprenticeships and Graduate Programs
To fill the gap left by retiring engineers, businesses need to focus on attracting new talent early. Apprenticeships and graduate programs offer a practical solution by creating a pipeline of young, motivated professionals entering the industry. Apprenticeship schemes allow businesses to train young workers in real-world settings, while graduate programs provide entry-level engineers with the experience needed to advance in their careers.
By partnering with universities, colleges, and technical institutions, businesses can help shape the next generation of engineers. Providing mentorship, on-the-job training, and opportunities for growth will not only attract top talent but also ensure that these new recruits are well-prepared to step into critical roles as seasoned professionals retire.
3. Leverage Technology and Automation
While the goal is to fill the talent gap with skilled human resources, technology can also play a crucial role in bridging the divide. Automation, AI, and digital tools can reduce the need for manual labor in certain engineering processes, freeing up human workers to focus on more complex and creative tasks. For example, advanced software can take over repetitive calculations and simulations, allowing engineers to concentrate on innovation, problem-solving, and decision-making.
Adopting digital solutions doesn’t eliminate the need for engineers but enhances productivity and efficiency, allowing a smaller workforce to achieve more. Moreover, training your team to use advanced tools and technologies positions your business to remain competitive in an increasingly tech-driven industry.
4. Focus on Employee Retention
Retaining your most experienced engineers should be a top priority as the industry faces this shortage. Losing skilled professionals, especially those with decades of experience, creates a knowledge gap that’s difficult to replace. Focusing on employee retention strategies such as offering competitive compensation, flexible working conditions, career development opportunities, and recognizing employee contributions can help keep your top talent engaged and loyal to the company.
Additionally, as senior engineers approach retirement, businesses should consider phased retirement options that allow these experienced professionals to transition into advisory or part-time roles. This enables companies to retain their expertise while providing mentorship to younger engineers, helping bridge the generational gap.
5. Develop a Succession Plan
Proactively planning for the future is essential to navigating the retirement wave in the engineering industry. Businesses should implement robust succession planning to ensure that the departure of senior engineers doesn’t create a leadership vacuum. Identify high-potential employees within your organization and prepare them for leadership roles through mentorship, management training, and exposure to strategic projects.
By developing a clear pathway for future leaders, companies can ensure that knowledge transfer happens seamlessly and that the organization remains resilient in the face of retirements.
6. Diversify Your Talent Pool
Historically, engineering has been a male-dominated field, but diversifying your workforce can open up untapped sources of talent. Encouraging more women and underrepresented groups to pursue careers in engineering is not only socially responsible but also crucial for filling the skills gap. Initiatives such as outreach programs in schools, diversity hiring campaigns, and partnerships with organizations promoting women in STEM can help expand your candidate pool and bring new perspectives to your engineering team.
Conclusion: Taking Action Now for a Sustainable Future
The upcoming skills shortage in engineering is a challenge that businesses cannot afford to ignore. However, by investing in training and development, attracting new talent, leveraging technology, and focusing on retention, companies can mitigate the impact of this talent gap. Engineering firms that take proactive steps now will be better positioned to thrive in the future, despite the loss of experienced professionals to retirement.
The time to act is now. Preparing your workforce for the future will ensure your business continues to innovate, grow, and succeed in the years to come.
