Skills shortages hobbling UK exporters

UK exporters are being hit by a shortage of labour skills, a new report out today from the British Chambers of Commerce (BCC) warns.

The problem is particularly acute among manufacturers, where two-thirds of firms struggled to recruit staff in the first quarter of 2018, says the latest Quarterly International Trade Outlook from the BCC.

Both the manufacturing and services industries are being “severely hampered” by the prevalence of skills shortages, the report, produced with courier company DHL, says.

The survey of more than 3,300 UK exporters notes that of those recruiting “66 per cent of manufacturers and 57 per cent of services exporters are struggling to find the right staff”.

For manufacturers the greatest difficulty was in finding skilled manual and technical labour (66 per cent), and in the services sector it was professional and managerial level positions (53 per cent).

Dr Adam Marshall, director general of the BCC, said: “At a time of significant uncertainty and change, it’s pleasing to be able to report that many UK exporters are doing well.

“Yet many tell us that their future prospects are being constrained because it’s becoming harder and harder to recruit the people they need to grow. Businesses with global ambitions are facing critical skills gaps at just about every level.”

The BCC chief added that while the fall in the value of the pound has provided a boost for some exporters, “it’s been a drag for others, who report rising costs for inputs and components”. 0 Dr Adam Marshall – ‘constrained’