Retaining skills in Yorkshire's food and drink sector is vital - Graham Driver

Yet, according to our latest Food & Drink Report 2025 – Buoyancy Baked In: The Rise of a Resilient Sector – that value is at risk as regional companies grapple with the enduring issue of skills.

Trade conditions can ebb and flow, inflation can rise and fall, but the one issue that is set to stay for Yorkshire food and drink companies is the need for good people. Already a problem before Brexit slowed the arrival of EU workers, recruitment is now a growing issue.

Our report shows that three-quarters of businesses in the sector, 75 per cent, are still experiencing difficulties in recruiting the people they need. What’s more, according to the Q1 2025 Make UK/BDO Manufacturing Outlook Report, 2.4 per cent of manufacturing jobs are vacant – well above the long-running average of 1.8 per cent.

It’s a real concern for the region’s food and drink sector and one that threatens to impact Yorkshire’s world-class food and drink heritage if solutions cannot be found.

So what can be done? There’s no doubt that companies are turning to technology for answers, with many food and drink businesses adopting digital tools to improve productivity and automate processes. In fact, the BDO report highlights that 88 per cent of businesses recognise the importance of digital transformation, with more than half, 56 per cent, planning to implement AI solutions.

But good quality people are essential too. The government’s recently published Industrial Strategy sets out the agenda for tackling some of the UK’s biggest challenges. This includes its plan to enhance skills and accelerate talent.

Make UK’s Industry Strategy Skills Commission Report also attempts to address the ‘stark’ problem of skills head on, laying out 11 recommendations to solve the issue. Five are focused on fixing the foundation of skills delivery, for example, expanding bursaries for specialist tutors and enhancing tax relief for training in growth sectors. The rest are devoted to boosting high-quality training for young people and enabling employer investment in skills.

With the increase in employer national insurance contributions, combined with an increase to the national minimum wage, all eyes are also on how best to manage the rising cost to employ in the sector.

It’s tempting for employers to shave spend from their annual pay review. But this will store up issues for the future and may need reversing at some point. The key will be careful headcount management and a sharper focus on performance management to offset the additional cost. And, if the pay review spend still looks unaffordable, focus pay investment on employees with the most critical skills and in the most critical roles.

The task of attracting and retaining talent in the food and drink sector is a big one, and the job of highlighting how rewarding roles can be in the industry is crucial, particularly amongst schools, colleges and universities. But, with some of the best food and drink brands hailing from Yorkshire, the region is well placed to attract the best talent – those individuals who want to be a part of the sector’s story moving forward.

Graham Driver is an audit director at BDO LLP in Yorkshire.