Scottish Manufacturing: Optimism Grows — But So Will Competition for Talent

Why recruitment needs to be on your strategic agenda now

Scotland’s manufacturers are feeling optimistic. Despite ongoing challenges, 75% of Scottish manufacturing leaders expect growth of between 3–10% over the next year, according to a recent report by accountancy firm MHA.

This strong sentiment is echoed by the Make UK / BDO Q2 2025 Manufacturing Outlook, which reports an output balance of +9% for the past three months and +11% forecast for the quarter ahead, a welcome rebound for a sector that has weathered volatile global trade conditions, inflation, and labour shortages.

But with growth on the horizon, the question for employers is clear: how prepared are you to compete for the skills and people you’ll need to deliver it?

Manufacturers Are Ready to Grow

According to the MHA survey, which included 71 Scottish manufacturing leaders:

• 75% expect to grow their businesses above inflation over the next 12 months

• The majority plan to maintain or increase staff numbers

• Top concerns include cybersecurity (41%), tax changes (37%), regulatory pressure, energy costs, and ongoing skills shortages

Meanwhile, Make UK's UK-wide data shows:

• Manufacturers expect continued growth in output (+11%)

• Confidence in the UK economy and sector has climbed

• Export order books are recovering, with a +22% balance expected next quarter

• Hiring intentions are strong, with a +21% balance of employers planning to increase headcount

What Employers Should Be Doing Now

This resurgence in confidence signals opportunity but also intensifying competition. Here are five steps to help you prepare and stay competitive:

1. Map your future workforce needs
Forecast where growth, retirements or project demands will impact your team over the next 6–12 months. Start planning early.

2. Understand your candidate appeal
In a candidate-driven market, people have options. Make sure your pay, benefits, progression and culture stand up against competitors.

3. Streamline your recruitment process
A positive candidate experience and quick, confident hiring decisions, can be the difference between a successful hire and a lost opportunity.

4. Embrace flexibility
Many businesses are combining permanent hires with short-term contracts, temps, or project-based recruitment to manage peaks and gaps.

5. Engage a recruitment partner who understands your industry
A proactive recruiter can help you pipeline talent, assess market availability, and connect with skilled candidates before your roles go live.

The Value of Planning Ahead with the Right Partner

Whether you’re scaling up, modernising, or simply planning ahead for future projects, it pays to bring your recruiter into those conversations early. By doing so, they can:

• Begin sourcing and engaging with talent aligned to your forecast needs

• Share insight on candidate behaviour, market rates and hiring conditions

• Help you build resilience into your recruitment strategy ahead of demand