The real reason manufacturers are cutting back on apprenticeships

Nearly three-quarters of businesses surveyed said they felt there was a lack of government support to address skills shortages following last year's budget, whilst only a third believe the Industrial Strategy will support their workforce development plans.

These concerns are reflected in an uncertain landscape, with less than half boosting training budgets and, worryingly, just 45% planning to take on an apprentice over the next twelve months.

This is the first time in the history of our findings that this number has fallen below half, representing a massive 24% drop in recruitment intentions in 2025.

Staff retention has also been an issue for the 103 companies that responded. 58% of bosses have said they are struggling to keep employees, and this could be due to a difficult cocktail of circumstances, including an ageing workforce, wage inflation and changes to employment law.

Skills remain one of the pressing challenges for manufacturers, and it appears that the majority have lost faith in the government playing its part in helping them bridge the gap.

Changes to skills provision and the pace at which it is delivered are damaging engagement due to a lack of industry understanding and a belief that they will not meet the required skill levels.

It’s not difficult to see where the lack of confidence stems from. The removal of certain qualifications, defunding of some standards and reducing the level of competency involved in apprenticeships have left firms feeling the system is unwieldy and not fit for purpose.

There has also been no increase in funding for engineering apprenticeships since 2020, whilst costs have risen astronomically over the same period. It begs the question: how are providers like In-Comm Training going to maintain the same level of quality provision whilst being squeezed from all angles?

All of this is translating into less of an appetite to invest in apprentices. A 24% drop in the number of companies planning to take on a new apprentice is more than worrying and should send shockwaves through the corridors of Whitehall.

It feels that management teams are being battered at every possible turn with legislation, employment changes and then issues coming out of the conflict in Iran. There’s very little financial wriggle room to invest in the future.

There is little doubt that we face a complex and challenging skilling picture. However, if we are going to compete globally in the modern world, we will still need apprenticeships, upskilling courses, and, importantly, the right amount of funding – spent in the right places- to ensure we have access to skilled people to drive growth.

As an industry, we can’t afford a lost generation of young people. We need to make our voices heard and lobby for better skills provision and more funding to develop the talent of the future.

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Gareth Jones is Managing Director of In-Comm Training, a specialist provider of engineering and manufacturing apprenticeships and upskilling courses.

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