21.01.2026

Why workforce pressures look different depending on where you operate

Workforce challenges are not evenly felt across manufacturing. The Q4 HR Bulletin shows clear variation in recruitment activity, success rates, and pay outcomes by region, sector, and business size. Some employers are still actively recruiting and filling roles. Others are pulling back, struggling to attract candidates, or facing persistent capability gaps despite advertising.

This uneven picture matters. A workforce strategy that works in one location or sector may be ineffective, or even risky, in another.

Local labour markets shape recruitment reality

Regional labour markets influence who is available, what skills exist, and how competitive pay needs to be. In some areas, manufacturers report relatively high recruitment activity but lower success rates, often due to skills mismatches. In others, fewer employers are recruiting at all, reflecting tighter margins or reduced confidence.

Sector differences add another layer. Certain parts of manufacturing continue to face acute technical skills shortages, while others are more affected by cost pressures or fluctuating demand.

Business size also plays a role. Smaller and mid-sized manufacturers often compete directly with larger employers for the same talent, without the same resources or brand recognition. This means workforce challenges are shaped as much by context as by national trends.

These differences also influence how pay decisions are perceived and how recruitment slowdown is managed on the ground.

One strategy does not fit every site

When workforce planning is treated as a single, organisation-wide issue, important local risks can be missed.

A pay approach that feels fair in one region may not align with local expectations elsewhere (see also, our Policy Outlook). Recruitment methods that work for one sector may fail in another. Even policy implementation can land differently depending on site size, union presence, and management capability.

Understanding these differences allows employers to make better decisions and avoid unintended consequences.

What employers should do next

  • Plan workforce strategy locally: Use regional and site-level data to understand where pressure points sit. Workforce planning should reflect local labour supply, skills pipelines, and operational needs.
     
  • Benchmark by sector and size: Compare pay, recruitment success, and retention against relevant peers, not national averages alone. This gives a more realistic view of competitiveness and risk.
     
  • Review people practices across sites: HR audits by location or business unit can highlight inconsistency, inefficiency, or compliance risk that may not be visible centrally.
     
  • Listen to local employee experience: Engagement levels, morale, and concerns often differ by site. Local insight helps target action where it will have the greatest impact.
     
  • Use local expertise: Regional advisors who understand local labour markets, policy pressures, and sector dynamics can offer more practical support than generic solutions.

These regional and sector variations are a core part of the wider Workforce Shift shaping manufacturing workforces.

How Make UK can help

We work with manufacturers across the UK and understand how workforce challenges vary by region and sector. Our support includes:

  • Workforce and HR strategy shaped around local and sector-specific pressures
     
  • HR audits to benchmark people practices by site or business unit
     
  • Employee engagement surveys to understand local experience and risk
     
  • Regional HR and employment law advice grounded in local labour markets
     
  • Policy insight that reflects how national change affects local operations
     
  • HR capability building through our HR Professional Training Development programme, helping HR teams and people managers deepen their expertise across recruitment, employee relations, policies, absence, equality, and employment law.

Workforce challenges are rarely uniform. Employers who recognise and plan for local differences are better placed to recruit, retain, and support their people effectively.

If you would like support tailoring your workforce strategy to your region or sector, or developing your HR capability locally, get in touch. Email [email protected] or call 0808 168 5874.