Addressing the STEM skills gap

Senior leaders are at an inflection point. Smart industrial operations are no longer a future ambition – they are redefining how the global maintenance, repair and operations (MRO) industry functions today. Across manufacturing, utilities and critical infrastructure, connected assets, AI-driven insights and real-time monitoring are transforming how maintenance is planned, executed and optimised.

 

But the workforce is not keeping pace. While companies continue to invest heavily in digital infrastructure, many lack the skills needed to translate data into action. The World Economic Forum’s Future of Jobs report estimates that nearly 39% of core job skills will change by 2030, with AI, data and technological literacy among the fastest-growing capabilities.

 

At the same time, organisations operating across complex MRO environments are facing a more immediate and intensifying challenge. Teams are navigating a highly volatile, uncertain, complex and ambiguous (VUCA) operating environment, where geopolitical tensions, supply chain disruption and persistent cost pressures are no longer episodic but constant. As highlighted in recent industry analysis, MRO now sits at the intersection of cost, risk and operational continuity, with professionals under growing pressure to reduce spend while simultaneously improving efficiency, resilience and uptime.

 

Disruption across critical trade routes, energy markets and supplier networks is forcing organisations to rethink how they source, stock and maintain essential equipment, often in real time. While longer-term shifts such as AI adoption, workforce transformation and sustainability commitments remain critical, it is this day-to-day operational volatility that is placing the greatest strain on industrial operations today.

 

 

The evolving role of the engineer

These forces are converging, reshaping what effective engineering looks like in practice. Modern organisations require a new generation of engineers who combine strong technical foundations with digital fluency and human skills. They need to be able to not only interpret data and optimise performance accordingly, but also be poised to respond to constant change.

 

Modern MRO work is no longer centred on mechanical fault-finding but on optimising performance across interconnected, data-driven systems. Research from GEP highlights how IoT-enabled assets, predictive analytics and integrated platforms are transforming maintenance, giving organisations real-time visibility across operations. Engineers must now interpret continuous data, manage networked assets and apply systems thinking across increasingly complex environments.

 

At the same time, the role is shifting from reactive to predictive. Analysis from McKinsey & Company shows predictive maintenance can reduce costs by 20 to 25% and cut unplanned downtime by up to 50%. Engineers are therefore defined less by fixing problems and more by preventing them, using data to optimise performance, improve efficiency and extend asset lifecycles.

 

Success now depends as much on human skills as technical expertise. Engineers must translate data into action, collaborate across disciplines and communicate clearly. Adaptability is critical, with the Institution of Chemical Engineers highlighting persistent gaps in problem-solving and the ability to respond to rapid change. The confidence to challenge established processes is as important as engineering knowledge itself.

 

Sustainability adds further complexity, as well as opportunity. Beyond efficiency, engineers are enabling the growth of low-carbon industries, from electrification to circular systems, while supporting new green revenue streams. This means balancing performance, cost and resilience with environmental impact, and building not just better operations, but entirely new systems. The question is no longer whether this shift is happening, but whether we have the talent, today and tomorrow, to deliver it.

 

 

Closing the skills gap

Across Europe, shortages in engineering and technical talent are emerging as a major barrier to the green transition. In the UK, the Royal Academy of Engineering’s Engineers 2030 report shows that engineering roles are projected to grow faster than most other sectors, with rapidly rising demand in clean energy, digital technologies and AI- enabled industrial roles – but a skills system that is not yet keeping pace. This growing mismatch is already constraining innovation and investment across energy, manufacturing and critical infrastructure, and will intensify without targeted action on STEM (science, technology, engineering and mathematics) skills and workforce development.

 

Technologies such as sensors, digital twins, and predictive maintenance can unlock efficiency – but only when engineers can interpret data, apply systems thinking, and drive operational change. Without this combination of expertise and fluency in digital tools, sustainability ambitions risk stalling before delivering measurable impact. And the challenge doesn’t start in industry – it begins much earlier.

 

 

The real STEM skills crisis 

The challenge begins earlier in the talent pipeline. The STEM skills gap is not just a question of volume, but of access and preparedness. Globally, women still hold less than a third of STEM jobs – recent data shows women account for only around 28% of the global STEM workforce, and just 22% of AI professionals – limiting both the scale and diversity of the talent pool. Broadening the funnel is essential.

 

But increasing participation alone is not enough. Students also need opportunities to apply their skills in practice. Reduced lab time, combined with a shift towards more digital-first learning and leisure, means many young people have fewer chances to build, experiment and problem-solve in real-world contexts.

 

Programmes supported by RS, including product donations and hands-on engineering challenges, are helping to close this gap. By giving students the chance to design, build and test solutions, they also develop critical soft skills such as teamwork, communication and adaptability.

 

Ultimately, it is this combination of technical capability and human skills that will define the next generation of engineers – and determine which organisations are equipped to operate in increasingly complex, connected industrial environments.

 

 

Workforce development must be a strategic priority

The STEM skills gap is already constraining business readiness. Surveys from the Institution of Engineering and Technology show that around 76% of engineering employers struggle to recruit for key roles, particularly in sustainability-related areas. As demand for digital, automation and green skills accelerates, this pressure will only intensify.

 

Strengthening the STEM pipeline is only part of the solution. Without clear pathways into industry, talent risks being lost before it reaches the workforce. Too many early-career candidates face barriers to roles requiring 0–3 years’ experience, creating a disconnect between education and employment.

 

Workforce development, therefore, must be treated as a strategic priority. Businesses need to invest in upskilling existing teams while expanding entry-level opportunities and providing hands-on experience with real industrial systems.

 

Those that act now will be better positioned to close capability gaps, retain emerging talent, and unlock greater value from their digital and sustainability investments. This means supporting engineers and organisations with the tools, training and partnerships needed to build real-world capability.

 

 

People drive the future of smart industry

Technology alone does not determine the success of smart industrial operations – people do. Organisations that recognise this tipping point and invest in the skills required to operate, optimise, and sustain modern industrial environments will thrive.

 

The future of work is already here. Achieving its full potential – in operational performance, sustainability, and resilience – depends on how effectively organisations empower engineers and operational teams. Those who cultivate the right skills, embed continuous learning, and foster collaboration will not only optimise technology but also deliver sustainable, future-ready industrial systems. 

 

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Jen Scarlett is Head of Social Impact at RS Group

 

Main image courtesy of iStockPhoto.com and metamorworks