Digital skills gap impacting midmarket

It is worrying, then, that research from European software provider Forterro has found that skills shortages and sluggish digital transformation are putting the UK’s industrial midmarket at risk of falling behind its European peers. The report, The Digital Future of the European Industrial Midmarket, found that almost half of UK manufacturers and wholesalers say the digital skills gap has directly impacted business growth or projects, with more than one-third admitting that they lack confidence in finding recruits with the right digital expertise.

What stands out starkly is the nature of the missing skills. AI literacy, cybersecurity and data analysis – three areas which are always going to be fundamental to any serious digital transformation effort – are where the organisations surveyed see the biggest gaps. In a market defined by automation, predictive intelligence and cloud-driven workflows, this mismatch between strategic priorities and workforce capability poses a significant competitive threat. While 57% of UK respondents say they have a digital roadmap and more than half claim to have a fit-for-purpose cloud and data strategy, the outcomes tell a different story: almost a third rated their digital performance as poor over the past three years, and another third said it was merely adequate. In other words, even the businesses planning to modernise do not seem to be executing at the pace or scale required.

According to Forterro, AI is however seen as a crucial part of the solution, with UK firms citing predictive maintenance, predictive logistics and document management as their most popular ERP add-ons. Looking ahead, UK firms expect AI-driven analytics and risk detection to deliver the greatest value, offering not just incremental improvements but step-change gains in how businesses plan, problem-solve and compete.

“AI isn’t about replacing people and taking jobs, it’s about empowering those people to do their jobs better and allowing them to shape their role in a way that brings greater rewards,” commented Thomas Knorr, vice president cloud transformation, Forterro. “When the right digital skills and technology are harnessed together, AI becomes a practical tool for improving operations, predicting issues, strengthening competitiveness and powering growth."

The report also reveals that one-third of respondents say that keeping pace with competitors and future-proofing the business are the main drivers for digital transformation. More than half believe resisting cloud adoption will damage market share, further evidence that the UK industrial midmarket understands the stakes but struggles to act decisively and even hire the people to help them.

The message for the industrial midmarket is clear: digitalisation is no longer optional and will have a major role in defining the next phase of competitiveness - but businesses need a workforce capable of delivering it.

The full report can be downloaded at:

www.forterro.com/en/resource/digital-future-research-report