Brexit affects 45% of North West tech businesses

The tech industry is being impacted by an inability to train and retain the best talent.

Manchester Digital’s annual digital skills audit has revealed that almost half of tech and digital businesses in the North West have felt the effects from uncertainty around Brexit.

Of these, 56% cited concerns around losing important staff members and how to fill gaps if overseas workers’ rights are changed.

Another 48% of businesses said that customers are delaying work or they have witnessed a slow-down in orders since the UK voted to leave the EU.

Furthermore, the results showed that 27% of businesses had to turn away work as they could not find the right talent.

Regarding the skills that are likely to grow in importance for their business, 49% of organisations said that the role of developer is once again the most in demand and also the most difficult role to fill. They said that they struggle to recruit developers with the adequate level of training.

Acquisition of talent in AI and machine learning, a new entry for 2018, was a key concern for 12% of the region’s digital and tech businesses.

The results of Manchester Digital’s audit of more than 250 digital and technology businesses were revealed at the sixth annual Digital Skills Festival.

Manchester Digital managing director Katie Gallagher said: “The results of our annual skills audit once again highlight an industry which is flourishing in the North West, but is being impacted by an inability to train and retain the best talent.

“The skills gap continues to be one of the biggest inhibitors to growth in the tech and digital industry. Uncertainty around Brexit – whilst clearly an important issue – is one over which we have very little control. The onus therefore falls on the industry to take a proactive approach to solving our own talent problem.

“These steps include radically improving how tech is taught in schools by creating industry standard modules that directly link to the needs of the sector. Creating flexible course provision so companies can upskill staff to meet demand for AI and data science skills etc.

“The decline in apprenticeship starts is disappointing but unsurprising given the poor implementation of the levy. Most companies are still recruiting graduates over and above apprentices and are investing in their own grad schemes rather than putting any investment or resource into recruiting apprentices. Hopefully the 60% national decline in apprenticeship start will make government revisit the process.”