By: Tony Leahy, Skills Manager, Industry Wales & Dr Jenifer Baxter CEO at Industry Wales, and Deputy Chair, National Infrastructure Commission for Wales
Welsh industrial heritage demonstrates a long history of excellence in engineering and manufacturing industries, such as, energy, high value manufacturing and farming that continue to remain vital our national economy. Manufacturing employs over 150,000 people alone and contributes significantly to both domestic and international markets. With rapid advancements in technology and shifting global demands, the skills needed to succeed in these industries are evolving. Understanding the unique requirements for both engineering and manufacturing in Wales is crucial for creating a future-ready workforce.
Engineering and innovation go together, and problem-solving in sectors like aerospace, automotive and renewable energy are driving the innovation agenda in Wales. With Welsh engineering generating over £4 billion annually (EngineeringUK), it is a key player in the nation’s economic performance. Engineers in Wales are involved in designing advanced technologies and finding creative solutions to pressing challenges such as climate change and sustainability.
To deliver a future-ready workforce for innovation, engineering and manufacturing we need to create a system of skills development and qualification that enables individuals to evolve and new entrants into the workforce to be ready for the changing environment that we are experiencing in Wales.
Engineers require a strong foundation in technical skills, particularly in using CAD (Computer-Aided Design) and CAM (Computer-Aided Manufacturing) tools. This expertise is vital for the design and simulation of innovative products.
A significant 74% of engineering firms in Wales report difficulties in recruiting individuals with the necessary technical skills, underlining the need for targeted training and education (British Chambers of Commerce).
Engineers must tackle complex problems daily, requiring a blend of creativity and critical thinking. These skills are ingrained through structured qualifications, such as the National Vocational Standards and Higher Apprenticeship Frameworks.
With an increasing focus on sustainability, engineers are solving real-world issues related to efficiency and green energy technologies.
As projects become larger and more intricate, the ability to manage them effectively is becoming increasingly difficult. Timely delivery of projects relies on the expertise of project managers. Engineers must oversee project planning, resource allocation, and team coordination to ensure timely and on-budget completion.
Research suggests that 45% of employers in the engineering sector are prioritising project management as a critical skill for new hires, especially as multidisciplinary teams become more common (EngineeringUK).
Engineers need to articulate technical concepts clearly, whether addressing colleagues, clients, or stakeholders. This ensures that projects run smoothly and that everyone is aligned on objectives.
Delivering innovative and creative ideas relies on more than STEM only skills. Skills from the humanities and arts allow engineers to be more creative in problem solving, to tell stories around innovation and imagine a world beyond what we know today. Widening access to the humanities within engineering qualifications will deliver better engineers and allow for alternative routes from the humanities into engineering.
Manufacturing remains a major growth sector for the Welsh economy, accounting for 17% of the nation’s GDP (Welsh Government). Welsh manufacturers produce goods ranging from high-tech electronics to food products and are key contributors to exports. The sector is evolving, and with increased adoption of automation and digital technologies reshaping the skills required by the workforce.
Operating advanced machinery and managing production processes are core skills in manufacturing. The shift toward digitalisation means many workers are now expected to be proficient in automation and data-enabled decision-making.
A recent report found that 81% of manufacturers in Wales are prioritising digital skills, particularly as smart manufacturing continues to grow (FSB Wales).
Maintaining high-quality standards is crucial, especially in sectors like aerospace and automotive, where precision is paramount. Workers need expertise in quality management systems such as ISO 9001, which ensures that products meet strict industry regulations.
Over 50% of manufacturers in Wales identified quality assurance skills as essential for maintaining competitiveness (Welsh Government Statistics).
Lean principles aim to improve efficiency by eliminating waste and streamlining processes. Techniques such as Six Sigma are widely adopted across the sector to enhance productivity and reduce costs.
65% of Welsh manufacturers have implemented lean manufacturing practices, recognising the financial and operational benefits (Wales Centre for Advanced Engineering and Manufacturing).
Manufacturing often involves working in teams, requiring strong interpersonal and collaboration skills to ensure smooth operations. Effective communication between departments is crucial to maintaining productivity.
While both sectors share skills like technical proficiency and teamwork, their focus differs:
Engineering focuses on design and innovation, with an emphasis on problem-solving and creating new systems or products.
Manufacturing prioritises production efficiency and quality control, ensuring that goods are produced quickly and to a high standard.
Training programmes must account for these differences. Companies will need a blend of broad, cross-disciplinary skills alongside specialised training to meet the specific needs of each sector.
Both sectors are undergoing transformations driven by technological advancements:
Engineers are increasingly required to have skills in data analytics, machine learning, and robotics as automation plays a larger role in industrial processes.
Manufacturing professionals need to operate sophisticated automated systems and use data-driven metrics to optimise production. 69% of manufacturers in Wales plan to increase automation investment within the next five years (Medr).
The future of Welsh engineering and manufacturing depends on the ability to develop a workforce with the right mix of skills. Collaboration between educational institutions, industry leaders, and government bodies is essential to ensure that training programmes reflect the needs of the market.
Educational Institutions (FE and HE) should design courses that align with industry needs, ensuring students are equipped with up-to-date technical and digital skills. The Wales Centre for Advanced Engineering and Manufacturing predicts a 20% growth in demand for engineering and manufacturing apprenticeships over the next decade.
Government Bodies such as Medr need to assess and adapt and update apprenticeship frameworks to ensure they remain relevant in a rapidly changing market.
Employers should take a proactive role in shaping training content, ensuring the workforce is prepared for both current and future challenges.
SMEs are crucial to delivering our future-ready workforce, they must be included in the conversation and supported to ensure they are not left behind in areas such as digital literacy, automation, innovation as well as leadership and financial management.
To ensure that Wales remains competitive in both engineering and manufacturing, it is essential to bridge the skills gap. These industries play a vital role in our economy, and by fostering collaboration between educational institutions, government, and businesses, we can create a workforce that is prepared to meet the challenges of tomorrow.
Now is the time to act—by aligning training with industry needs, we can ensure that Wales continues to thrive in these critical sectors. Wales has an opportunity to lead in skills innovation – let’s take it!