Threat to Jaguar Land Rover supply firms from skills gap

A survey by the Greater Birmingham Chambers of Commerce found 89 per cent of manufacturing businesses reporting problems hiring skilled workers.

It is the highest-ever level recorded by the chambers since it began its economic survey 18 years ago. Chief executive Paul Faulkner said it was holding the region back and has called for the Government to take action.

He said: "It is an exceptionally worrying trend that nearly nine in ten manufacturers in the West Midlands are facing major problems with recruitment.

"The West Midlands is traditionally a very resilient region but, if firms cannot attract the right calibre of candidates to help grow their businesses, then it makes it far more difficult for companies to plan ahead with a reasonable degree of certainty.

"The Government should be aware that continuing skill shortages can only increase the headaches for manufacturers, many of whom may well be still recovering from the impact of the recession."

The growth of JLR, which is doubling the size of its new engine plant at the i54 north of Wolverhampton, is helping drive demand for young engineers and technicians at firms supplying JLR.

The Royal Academy of Engineering claims the UK needs more than one million new engineers and technicians to solve the skills gap.

However, recruitment difficulties for manufacturers are at a record high with 89 per cent of firms facing hiring problems, especially for skilled workers.

The research, supported by recruitment agency Katie Bard, also found worries over business rates while competition has added to the squeeze on firms amid evidence that completed sales and future orders have declined over the last three months.

Greater Birmingham Chambers of Commerce policy adviser Stephanie Wall said: "Concerns among manufacturers included low oil prices and the exchange rate.

"Another concern was the uncertainty around the interest rate. After a constant interest rate for almost seven years, there is wariness from businesses over the market reaction when the rate does finally rise."