As part of our “From Factory to Front Line” series, Steve Carter from Pioneer Selection sat down with Andrea Wilson, Hone-All Precision to discuss the critical issues impacting the manufacturing sector. Andrea is a passionate advocate for SMEs in manufacturing and has dedicated her career to raising awareness about the need for government support, industry representation, and a renewed focus on skills development.
The Reality for UK Manufacturing SMEs
The UK is home to some of the most innovative manufacturing businesses, yet many struggle due to a lack of investment and government incentives. The vast majority of engineering and manufacturing firms are SMEs, yet policies and support structures are often designed for large multinational corporations. This misalignment means that smaller businesses, which form the backbone of the UK economy, are being overlooked.
Many of us in manufacturing thought that Labour “would encourage business and encourage entrepreneurship. That their commitment to growth is for all of us to grow our businesses.
The majority of us are unfortunately still labour intensive. Growing our business means recruiting more people. Recruiting more people is impossible when you keep hiking up NICs and not having anything in the background to offset. Is there anything coming down the pipe that you know of that's going to make that a bit more acceptable as a scenario, or is it just the thin edge of the wedge?”
One of Andrea’s key messages is the urgent need for a dedicated industry champion in government who understands the challenges businesses face and can drive cohesive policy changes. Without strong representation at the political level, manufacturing risks being sidelined in favour of other sectors.
It’s the “large OEMs who have a much more direct route to government and into the policy setting agenda. I believe it's one of the reasons that the majority of support systems in our industry in particular, are really just so inappropriate and not applicable to manufacturing SMEs”.
It’s because the agenda and policies are “set by people who are not running 5, 50 strong businesses. They're set by people who are employing multiples of thousands in multiple sites and countries”.
Skills Shortages and Apprenticeships
For many leaders in the manufacturing sector, there is a chronic shortage of skilled staff and this ongoing skills crisis is set to worsen with the evolution of roles in the future. Despite government funding for apprenticeships, the apprenticeship levy has not been as effective as hoped, and many training programs are not aligned with industry needs. Colleges lack the equipment and resources to provide hands-on training, leaving businesses to fill the gap on their own.
We’re “not attracting enough talent into engineering and manufacturing right now. The problem is that the perceptions and the ideas of what engineering and manufacturing looks like now are so outdated and we're not doing enough to change that either as an industry, as a country and certainly not from our government either”.
During the discussion, Andrea suggested a Training and Development Tax Credit that would allow SMEs to invest in in-house training and upskilling their workforce, ensuring that critical skills are not lost as experienced engineers retire.
The Role of SMEs in the UK Economy
SMEs are responsible for a significant share of the UK’s economic output, but they often do not have a voice in policy discussions. Large corporations have direct access to decision-makers, while smaller firms struggle to be heard. This results in a mismatch between what the majority of firms need versus what larger corporations want. Without targeted support, the UK risks losing its manufacturing capabilities to overseas competitors.
The Future of UK Manufacturing
To secure the future of UK manufacturing, the government must take proactive steps to:
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Appoint a dedicated government representative who understands the industry and raises the concerns and interests at a government level.
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Reform the apprenticeship levy and introduce training incentives for SMEs.
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Develop long-term policies that support homegrown innovation and prevent skills drain.
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Promote UK-made products through incentives and procurement policies.
Manufacturing is the foundation of the UK’s economy, and it’s time for the industry to receive the recognition and support it deserves. At Pioneer Selection, we will continue to advocate for meaningful change and help connect skilled professionals with the businesses that need them most.
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