Brexit’s uncertainty is making waves in the North West’s tech industry. This turbulence is creating significant ripple effects among local tech and digital companies.
In this article, we delve into the findings of Manchester Digital’s latest digital skills audit, highlighting key concerns for businesses in the region.
Impact on Staffing and Skills
Almost half of the tech and digital firms in the North West are feeling the pressure from Brexit uncertainty. The apprehension about potential changes to overseas workers’ rights is causing significant unease, with 56 per cent of businesses expressing concerns about losing vital staff members and filling those gaps.
A striking 49 per cent of organisations are struggling to recruit developers with the necessary training due to the pervasive skills gap. This gap is a major concern, as it directly impacts the ability of businesses to grow and adapt to new challenges.
AI and machine learning are becoming essential areas of expertise for 12 per cent of tech companies in the region. However, finding talent in these fields remains a steep challenge.
Client Delays and Order Reduction
Customers are notably delaying projects, contributing to a slowdown in orders for nearly half of North West tech firms. This hesitation can be directly traced back to Brexit-related uncertainties, which are causing instability across various sectors.
Moreover, 27 per cent of businesses have had to turn away work because they cannot secure the required talent. This scenario is creating a bottleneck that hampers organisational growth and client satisfaction.
Training and Education Gaps
Manchester Digital’s audit indicates a critical need for improved training and education within the tech sector.
There is a pressing requirement to enhance how tech education is delivered in schools to match industry standards. By creating modules that directly align with sector needs, the talent pipeline can be significantly strengthened.
Flexible course provisions are essential for enabling companies to upskill existing staff. This includes a robust focus on AI and data science skills.
Industry Insights from Manchester Digital
Katie Gallagher, managing director of Manchester Digital, succinctly summarises the audit’s findings: “The results of our annual skills audit once again highlight an industry which is flourishing in the North West but is being impacted by an inability to train and retain the best talent. The skills gap continues to be one of the biggest inhibitors to growth in the tech and digital industry.”
Gallagher further emphasises that despite Brexit’s significance, the tech sector must focus on proactive solutions to its talent issues. This includes overhauling tech education and improving apprenticeship schemes.
The decline in apprenticeship starts is particularly concerning. Gallagher describes this trend as “disappointing but unsurprising,” citing the poor implementation of the apprenticeship levy as a contributing factor.
Future Prospects and Recommendations
The audit suggests several forward-thinking measures for addressing the talent shortfall in the North West’s tech industry. A comprehensive revamp of tech education, which includes industry-standard modules and flexible course options, is imperative.
Fostering a stronger relationship between tech companies and educational institutions can streamline training processes and ensure a steady stream of qualified professionals.
By adopting these measures, the region can combat the adverse effects of Brexit uncertainty and continue to thrive.
Conclusion
Brexit-related uncertainties are undeniably affecting the North West’s tech sector. Yet, the industry’s resilience and proactive strategies promise potential solutions to these challenges.
Manchester Digital’s skills audit has cast a spotlight on the pressing issues facing the North West’s tech industry due to Brexit uncertainties. However, with a concerted effort to bridge the skills gap and enhance educational frameworks, the region can mitigate these challenges.
The importance of addressing these concerns cannot be overstated. A coordinated approach involving educators, industry leaders, and policymakers is essential to secure the future growth and stability of the North West tech sector.
