Industry called on to address productivity challenges & shrinking labour supply

Industry called on to address productivity and workforce challenges
Credit: Shutterstock.com/ Vladimir Nenezic

A report has been published this week by the Food and Drink Sector Council (FDSC) outlining the industry’s ambition to address food chain productivity issues and the challenges it faces due to a shrinking labour supply.

Led by the Food and Drink Federation (FDF) in collaboration with Sheffield Hallam University, ‘Preparing for a Changing Workforce’ highlights the growing skills shortage across all levels and all parts of the food chain.

Management and leadership skills are, however, a common gap across the whole of the food and drink supply chain and act as a barrier to the adoption of new technologies. This, when coupled with an anticipated shortfall in labour, in part due to the end of freedom of movement with the EU, is expected to threaten future productivity growth across the supply chain.

The food and drink sector has a significant impact on the UK economy, contributing £121 billion to national Gross Value Added and employing over four million people (14% of the national workforce), spread across every region and nation of the UK.

Jobs in the food and drink sector are often perceived as low-skilled, but this report shows that businesses are seeking to fill roles across all skill levels from intermediate through to higher and advanced levels.

Food and drink businesses recognise the importance of Apprenticeships, but also emphasised that more support is required to improve engagement with the Apprenticeship Levy.  Almost one third of respondents, eligible to pay the Apprenticeship Levy, reported writing it off as a tax due to uncertainty over how best to use the funds.

The report is the first to bring together the entire sector from ‘farm to fork’ and present a cross-chain approach to addressing future workforce, skills and productivity concerns.

Based on the evidence collected, the FDSC has identified early recommendations to upskill employees and attract future talent through: greater use of Apprenticeships and offering T Level work placements across the sector; improving accessibility and quality of training provision for food and drink businesses of all sizes throughout the UK; and professionalising leadership and management skills within the sector to ensure that managers are prepared for a changing workplace.

It is hoped that this multi-faceted approach, which combines industry-led solutions with related government interventions will advance training and skills development and transform the industry’s image as an employer.

“Access to skills is a growing problem across the sector, and according to the FDSC’s Preparing for a Changing Workforce Report, the majority of companies expect the situation to become more difficult, as we will see a tighter labour market due to the ageing population coupled with lower net migration,” said Dame Fiona Kendrick, Food and Drink Sector Council Member and Chair of the Workforce and Skills Group.

“So, now is the time to act. I appeal to you to join us in this movement, and ensure the UK food and drink businesses lead the way in providing secure and well-paid jobs at all skills levels right across the UK.”