2022 update
It has been a tough year in a number of ways for our industry, both in training and also manufacturing generally. It is fair to say that a number of well established businesses with lots of history and value have fell victim of the spiralling costs brought about from the World pressures upon us all.
We have survived this year making small scale cuts and diversifying our business like so many others, we have even managed to stand fast on our charges and hold the prices down from 2019 levels, this has meant some real challenges and like many other businesses has hit the company’s bottom line value, in the hope that things can only get better.
With 2023 upon us it is time to truly reflect on our achievements and drive our strategy forward into the New Year with ambition, focus, determination and above all, the focus on individuals and businesses growing through training.
Manufacturing is still suffering from supply chain issues and added complexities brought about from sitting outside the EU. This alongside the increase in raw material, energy and wages have brought many businesses to the brink. What some of us are feeling within the sector, is that this is masking a severe shortage of qualified engineering staff, and when we get back to a full capacity of work, wages will start to spiral when a number of talented people seek the best offer for them. Coupled with this, will be the inevitable swelling of the contract workforce now armed with an individual power over IR35 ruling.
The main challenge for all manufacturing businesses is to identify the talent within their ranks, develop them into skilled roles and hopefully with it comes an element of loyalty from these people. Training during a recession is always the aspect of a business that is not easily approved for finance, this is a short term vision and hopefully businesses will see instead, the long term benefits of training.
Invest in people, make the investment now, recoup the savings in excessive wages and recruitment costs longer term.
Here is hoping for a prosperous 2023 and hopefully we train ourselves out of recession.
Off payroll (IR35)
Since the Government made the decision to reverse the IR35, what does this really mean to contractors?
In a number of manufacturing businesses and especially Rail, we have seen employers pushing contractors towards umbrella organisations merely to protect themselves from adverse scrutiny from the HMRC.
The definition of employed status has become vague, it is merely about paying tax and NI contributions. Fully employed people do not pay for their own travel and subsistence, have to pay for their own tools and or indeed have to find their own work once the contract has ended.
This decision is about a common sense approach to tax affairs when contractors have to prove their conditions of employment whilst been able to claim for valid expenses. If you only work for one employer exclusively then you are indeed employed, if you are moving around from contract to contract then surely you are a contractor and hence deal with you own tax affairs and indeed pay tax, national insurance, in addition to maybe VAT and corporation tax. The UK Government have been chasing a few greedy individuals who have avoided large tax burdens however in the process have throttled the manufacturing industry, already struggling with a labour shortage, congratulations to common sense and please do not undertake a u turn on this change.
Christmas update
After a challenging year the manufacturing sector is beginning to show an air of confidence, contracts within the Rail Sector are increasing and with it the challenge of finding suitable qualified personnel. Automotive and Aerospace are making tentative steps towards the new normal and challenges of profitability and continuous improvement are at the fore of most business Senior Leaders.
In most business sectors facing austerity measures, training and development of staff is the first expense to be cut and the last to prioritised, we have all felt this lull and hopefully the confidence and training budgets are set to return as a matter of urgency in the New Year.
As a reaction and further development we are happy to announce we have extended our provision to include Level 4 Project Management and will be offering a revised Level 5 Diploma for Operations or Department Managers.
In addition we have our first starter on the Advanced Manufacturing Engineering (Development Competence) Qualification for Mechatronics Maintenance Technicians and we will be keen to monitor their progress over the forthcoming year.
If you are an individual wishing to develop yourself or a decision maker within your business, we wish you all the best for the festive period, more importantly a more prosperous 2022 for us all.
IR35 – Ruling
5th April is upon us, IR35 and its implications to all subcontractors specifically in the rail vehicle building area.
This is a call out to anyone seeking recognition for their competence in order to gain permanent employment or for another contract position.
Engineering skills accreditation are our business. Contact us directly for advice or qualification options.
Fees update
News update: As of 5th April 2021 the Directors have made the decision to buck the trend and avoid any increase in qualification fees for the forthcoming year. We fully understand that individuals are under more financial pressure than ever before and this should not impact on their career development.