Skilled workers shortage in mechanical engineering worsens once again

The economic recovery is gaining significant momentum in mechanical and plant engineering. However, for companies the focus is once again shifting on to skilled worker shortages. According to a recent survey of around 570 personnel managers in member companies conducted by the VDMA (German Engineering Federation), the majority of respondents are currently seeing shortages in all groups of employees - with the exception of temporary workers.

This applies in particular to experts (academics and engineers, 78 percent) and skilled workers (employees with completed training, 82 percent). It is anticipated that the situation will worsen further over the next six to twelve months. Over 40 percent of respondents assume that fewer skilled workers and experts will be available in future. In the area of specialists (generally master craftsmen and women and technicians), 34 percent are expecting fewer workers to be available. By contrast, only around one in every ten respondents expects there to be more workers available in the group specified. 

"In order to solve the major tasks of our time – digitalisation and the development of climate friendly technologies – companies need a lot of well-trained people," underlined Hartmut Rauen, Deputy General Manager of the VDMA.

"Engineering will offer these meaningful and highly attractive jobs and continue its role on into the future of being the industrial sector with the highest levels of employment. However, many employees are retiring and need to be replaced. The shortage of personnel must not be allowed to slow progress," warns Rauen.

In this regard, three out of four respondents already anticipate increasing employee numbers in their own company by the end of the year. The focus in this case is on groups of employees which are already suffering from shortages. In the area of skilled workers, 60 percent are planning minimal to significant increases in staffing levels and for experts the figure is 54 percent. 

Significant expansion of the offer for young trainees

In order to ensure a new generation of skilled workers, the engineering companies also lived up to their responsibilities during the coronavirus pandemic and continued to rely on training and dual study. This is demonstrated by the previous two member surveys from May and December 2020. The personnel managers from the companies engaged in these areas are now planning to expand the supply of dual university places in engineering sciences and computer science as well as the supply of industrial and technical training positions.

In future, 30 percent of personnel managers want to offer more dual university places in the technical sector. Six months ago this figure was only 19 percent. 21 percent of respondents are planning for more technical and industrial training positions; in December 2020 this figure was only 9 percent.

In terms of placements for young trainees, a significant easing of the situation compared to December 2020 is also in evidence. During a pandemic, placements for pupils and for students can only be implemented with great difficulty due to the limitations on close contact.

However, the plan now is to once again offer more placement positions. While six months ago only one out of every twenty personnel managers assumed there would be an increase in placement positions, the figure now anticipating this is one in five.

More job offers for university graduates

The situation has continued to improve for university graduates. While the majority (65 percent) of companies questioned assume that the supply situation will remain stable, 16 percent are anticipating an increase in positions. Six months ago this figure was just 11 percent. Back then, 30 percent of respondents assumed that numbers of job offers would fall.

Desperate need for trainees

Companies are currently having difficulties making contact with potential applicants and generating interest for positions being offered. In total, 44 percent of respondents reported having difficulties with recruitment due to limitations on close contact. Among other things, this is severely impacting the number of applicants for training positions. 55 percent of respondents reported receiving fewer applications due to the coronavirus crisis.

"For applicants, the situation in the training market for mechanical and plant engineering continues to be very good," says Jörg Friedrich, head of training at the VDMA. "At the same time, it is becoming significantly more difficult for our members to recruit suitable new trainees." This is also shown by the latest figures from the Federal Employment Agency. For the month of May it reported that there were still more than 37,800 unfilled training positions in occupations relevant to engineering.

Summary of findings from the lightning poll

With the exception of temporary workers, the majority of respondents are currently experiencing shortages in all groups of employees – in particular among skilled workers and experts. In terms of experts (generally engineers), 78 percent of respondents are currently experiencing slight to serious shortages; for skilled workers this figure rises to 82 percent. 

Over the coming 6 to 12 months, the situation is expected to worsen. 43 percent of respondents assume that fewer skilled workers will be available. 40 percent are expecting fewer experts and 34 percent expect fewer specialists. However, only around one in every ten respondents expects there to be more workers available in the group mentioned.

A majority of companies are planning to increase staffing levels by the end of the year. Around three in every four respondents (77 percent) anticipate that employment in their own company will increase over the coming year. Of these companies, 64 percent believe there will be a moderate increase in staffing levels of up to 5 percent. 

In the area of new trainees, the supply of dual university places in engineering sciences and computer science and in industrial and technical training positions has significantly improved since December 2020. In future 30 percent of personnel managers want to offer more dual university places in their companies; six months ago this figure was only 19 percent. 21 percent of respondents are planning for more technical and industrial training positions; in December 2020 this figure was only 9 percent. 

During a pandemic, placements for pupils and for students can only be implemented with great difficulty due to the limitations on close contact. Nevertheless, a clear easing of the situation is evident here compared to December 2020. While six months ago only one out of every twenty personnel managers assumed there would be an increase in placement positions, one in five takes this view now.

Companies are currently having difficulties making contact with potential applicants and generating interest for positions being offered. In total, 44 percent reported having difficulties with recruitment due to limitations on close contact Among other things this is also impacting the number of applicants for training positions. 55 percent of respondents reported receiving fewer applications due to the coronavirus crisis.