Enginuity Report Flags £5.2B Annual Cost of UK Engineering Skills Gap

Event summary

  • Enginuity's report estimates UK engineering sector loses £5.2B annually due to skills gaps
  • 30% reduction in NEET numbers possible if skills shortages are addressed within 3 years
  • 50% of SMEs in engineering report skills-related issues in the past year
  • Skills shortages cost SMEs approximately £110,000 annually in lost GVA
  • Report highlights ageing workforce and thin talent pipeline as primary challenges

The big picture

The engineering sector faces a 'perfect storm' of skills challenges that threaten productivity and economic growth. With an ageing workforce and thin talent pipeline, the sector risks deepening shortages that could cost £5.2B annually. Addressing these gaps could significantly reduce NEET numbers and benefit pressure, making this a critical issue for both industry and government.

What we're watching

Policy Response
Whether UK government will act on Enginuity's recommendations to address skills gaps
Sector Attractiveness
How engineering and manufacturing can improve perception among young talent
SME Viability
The pace at which SMEs can implement practical training solutions