80 per cent of UK engineering SMEs have ‘concerning’ skills gaps in project management – APM survey

  Posted by: electime      26th June 2024

Eight in ten small-to-medium enterprises (SMEs) in the UK engineering sector have been identified with “concerning” skills shortages in project management, putting at risk the delivery of future projects, a survey by the Association for Project Management (APM), the chartered membership organisation for the project profession, has found.

APM polled over 500 project professionals working for UK SMEs and found 80 per cent in the engineering sector said their employer needs to improve project skills across the workforce.

Apprenticeships were ranked as the most popular solution to the skills gap (selected by 49 per cent of respondents) followed by ‘on the job training’ (47 per cent) and ‘training and upskilling existing employees’ (44 per cent). Respondents could choose multiple options.

The skills gap featured prominently when respondents were asked about the biggest challenges facing future project growth. The top two answers were: ‘A lack of understanding among employers or team leaders of future skills needs for project professionals’ and ‘Technology infrastructure inadequate to meet end user needs’ (both selected by 37 per cent of respondents). This was followed by ‘Accessing enough people with the right project related skills’ (35 per cent) and ‘Economic and political uncertainty’ (32 per cent).

A large majority (96 per cent) said their employer has enough time and resources to dedicate to training and development for project professionals. In addition, 91 per cent said their SME places value on training and developing or upskilling project professionals.

Meanwhile, transition management (20 per cent) emerged as the most important skill for project delivery for engineering SMEs, followed by benefits management and data literacy skills (both 19%) and personal time management and team management (both 17 per cent). The least popular skills were leadership and budgeting (both 6 per cent) and emotional intelligence (7 per cent).

Professor Adam Boddison OBE, Chief Executive of APM, said: “Our survey sheds vital light on the critical need for SMEs in UK engineering to prioritise investment in project management. While it is somewhat encouraging that most employers appear to understand the unique value of project professionals, it is concerning that 80 per cent of respondents believe their SME needs to improve project skills at such a critical time with net zero, technology and global events disrupting business activity.

“Project professionals are at the forefront of delivering growth and change in engineering but they need skills investment in order to provide real-time solutions for difficult challenges.

“As SMEs and the wider engineering sector navigate an increasingly dynamic landscape, the need to manage projects effectively becomes ever more paramount for sustained growth and success. By taking action now to invest in project skills, employers can better streamline their operations and help ensure projects are delivered to budget, timescales and quality.”

The skills gap is defined as the disparity between skills employers need or find desirable and the skills current or future employees possess to meet job role demands. The term dates to the 1990s but long-standing concerns over the skills gap remain in the engineering sector, exacerbated by globalisation, technology and the need for more specialised skills.

The survey follows APM’s recent Golden Thread Report 2024, conducted by PwC Research, which found project management in the UK contributes £186.8 billion of annual gross value added (GVA) to the UK economy across all sectors – a growth of over £30bn in five years.

The profession now employs an estimated 2.32 million full-time equivalent workers (FTEs), the report also found. It means 8.5 per cent of the UK’s total FTEs are employed in project-related roles and the profession delivers over 9 per cent of total UK GVA – a key measure of productivity.

Professor Adam Boddison added: “As the chartered body for the profession, APM is committed to helping SMEs within the UK engineering sector to overcome any barriers they may face to bridge the skills gap with support and resources designed to empower their workforce with the necessary project skills.”

APM is committed to developing and promoting the value of project management to deliver improved project outcomes for the benefit of society. It supports SME project professionals within engineering with memberships, qualifications, chartered status, events, research and its online community hub. To learn more, visit www.apm.org.uk.