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The UK food manufacturing industry has always been resilient, fast-moving and adaptable – and it must be, as it plays such a critical role in keeping the nation fed. As the nation’s largest manufacturing sector, worth around £37bn GVA and c.£142bn in turnover, it’s also a crucial driver of national economic performance. But as we head into 2026, the sector faces a perfect storm of people challenges that are stretching leadership teams thin. From workforce shortages to the rapid rise of automation, the next 12 months are set to test how effectively businesses can adapt, attract, and retain the people they need.
85% are struggling
A recent Food and Drink Federation* report found that the UK manufacturing sector is undergoing rapid change, with nearly 85% of manufacturers struggling to recruit skilled workers, while AI and robotics are reshaping roles. That’s a staggering number and its impact is being felt on every production floor in the country.
As People Directors, these moments force us to stop, to reflect, and to ask: what needs to change in how we think about our people strategies? How can businesses evolve to meet change head-on and unlock new opportunities for growth?
Here are some of the key people issues being seen across the industry, and a few top-line thoughts on how to get ahead of them.
1. Persistent workforce shortages
Despite a slight easing in the labour market, the gap between supply and demand for skilled food production workers remains stubbornly high. Many businesses are still over-reliant on agency staff, driving costs up and consistency down.
What helps: A clear workforce plan that looks beyond short-term hiring. That means understanding your future skills needs, building local partnerships with colleges or training providers, and strengthening your employer brand so people see your business as a long-term career, not just a stopgap.
2. Skills gaps and stretched teams
Experienced operators, engineers, and supervisors are in short supply and it’s taking its toll on teams already under pressure. When experienced people leave, knowledge goes with them.
What helps: Focus on structured succession planning and internal development. Setting up mentoring programmes, on-the-job learning, and clear career pathways keeps people engaged and ensures critical know-how doesn’t walk out the door. It’s also important to focus on knowledge transfer and well documented processes so others can maintain standards and expertise beyond individual people’s input.
3. Supply chain disruption affects people
It’s easy to view supply chain issues purely through an operational lens, but the knock-on effects on people are significant. Constant changes to production schedules, late-night shifts, and firefighting can burn teams out. Combined with the increasing concern over job security and rising costs, this can be a potent and damaging combination.
What helps: Leadership visibility and communication. When change is constant, clarity and empathy are powerful. Regular briefings, well-being initiatives, and recognition programmes can help maintain morale during the tough spells, and making sure people are given an opportunity to share their concerns is important.
 4. AI, robotics and the future of roles
Automation is accelerating fast – but HR and people strategies often lag behind. New technology is changing the shape of work, yet many businesses haven’t fully considered what that means for job design, upskilling, or redeployment.
What helps: Bring HR into the conversation early. A People Director can help map future workforce needs, identify training priorities, and ensure the introduction of AI and robotics enhances, rather than alienates your existing teams.
5. Retention and culture under pressure
With constant change, it’s easy for culture to take a back seat. But in a competitive labour market, culture is often the deciding factor between staying and leaving.
What helps: Revisit your employee experience from onboarding to reward. Listen to your people, act on feedback, and make sure leaders at every level are modelling the desired values, and are equipped to communicate and inspire.
Food manufacturing is a people business as much as a production one. The challenges are real, but so are the opportunities for those who take a strategic approach to their people.
If your business is feeling the strain and you’d like to explore how a People Director could help you strengthen your people strategy, let’s talk.
*Food and Drink Federation: State of the Food and Drink Industry Report Q1 2025
