A third of UK manufacturers expect some low skilled jobs to be
lost over the next five years as a result of Artificial
Intelligence (AI) and digital technologies. But over half of
companies (54%) say they will up-skill these lower skilled
workers to take the jobs that this innovation creates.
More than two thirds of manufacturers plan to spend some of their
training budget over the next 12 months on technical engineering
skills. Some of this will go on providing apprenticeships, which
almost eight in ten employers currently offer, but the rest will
be aimed at those existing employees who need to continuously
up-skill for manufacturers to take best advantage of 4IR and the
income boost it can bring.
However, a quarter of companies surveyed by Make UK have told us
that they will look for external support to help lower skilled
employees whose jobs are going to be displaced seek employment
elsewhere.
Verity Davidge, Head of Education and Skills Policy explained
that this is where the Government’s new National Retraining
Scheme will come into play, but there needs to be some adjustment
to the current trial specifications to make it properly effective
for those workers who need that help.
She said: “Currently the scheme is being aimed at those employees
whose jobs are at risk of being displaced as a result of AI and
digitisation within their companies. But it fails to look at the
fact that most companies want to retain their workers by
up-skilling them to fill new jobs digital technologies will
create or place these employees in other parts of the
business. This is the missing link in funding support and
provision which the Government’s Scheme could help to fix.
“The cost of retraining and up-skilling a manufacturer can be
high, and the National Retraining Scheme, when it is properly
rolled out across the country, needs to be more widely available
including those employers who wish to up-skill their current
workers as well as for those employees who do find themselves in
a position where they are looking for alternative employment.”
Key findings from Make UK research includes:
- Almost a third (31%) of manufacturers expect some job losses
in lower level roles due to technological change in the next 5
years
- This reduces to 22% for mid-skilled roles and 12% for
higher-skilled roles suggesting that where manufacturers are
investing in 4IR it tends to be lower level roles where it will
be tasks and processes, as opposed to jobs that will change.
- Manufacturers want to retain employees whose jobs are at risk
– 58% plan to re-skill them to work in other parts of the
business and 54% plan to up-skill them to work in new job roles
that investment in digital technologies and techniques will
create .
- There is a potential role for the Government’s National
Retraining Scheme as a quarter (24%) of companies will be looking
for external support.
- Manufacturers are thinking about their training spend in
light of these changes. Even looking to the year again
manufacturers are planning to spend their training budgets on
technical engineering skills (68%) and productivity skills (57%).
However only one in five (21%) of manufacturers are looking to
spend any of their training spend on digital skills.
Chart 4: Manufacturers training budget spending plans are
aligning to wider business plans % companies stating
what their company plans to spend their training budget on in the
next 12 months (attached)
Source: Make UK, Education and Skills Survey (2019)
Chart 3: Manufacturers plan to up-skill and re-skill employees
whose jobs are at risk % companies stating their plans
to support employees those jobs are at risk (attached)
Source: Make UK, Education and Skills Survey (2019)
