Manufacturing businesses are losing millions on inefficient staff training, according to new research from compliance training provider Skillcast.

The findings, published in Skillcast’s Lost Hours Report, analysed national employment data across 11 sectors to assess how much training fails to improve job performance or close skill gaps.

The manufacturing sector accounts for 929,775 lost hours annually, equivalent to £18.3 million in unrealised investment.

With production pressures, tight margins and ongoing skills shortages, manufacturers often prioritise essential and compliance training over broader skills development. This can reduce opportunities to build advanced capabilities in areas such as automation, engineering, leadership and innovation.

Hotels and restaurants (2.8 million hours / £55 million) and wholesale and retail (2.6 million hours / £51.4 million) also fared poorly, while business services recordedthe highest overall lost hours at 3.3 million.

Separate data from the government shows that UK businesses invest more than £50 billion a year in training and development, yet the nation continues to lag behind the US, G7 and EU on productivity.

The Lost Hours Report suggests that how training is delivered may be as important as how much is spent on it.

The report also introduces a pattern: as time spent on mandatory training increases, the proportion of employees not considered fully proficient in their roles rises too – suggesting that volume alone is not closing skills gaps.

This analysis reveals that nationally, over 21 million training hours each year are not delivering the intended skills outcomes – equivalent to 2.82 million working days, or the annual capacity of more than 11,000 full-time employees. Across all industries, this represents nearly £415 million in annual training costs that are not delivering a clear return on investment.

While essential training such as compliance, health and safety, and financial crime prevention remain non-negotiable,  the report finds it is often delivered inefficiently. This limits organisations’ ability to invest in high-value skills such as leadership, technical expertise and innovation.

This is particularly acute in business services, where regulatory requirements are high and employees frequently repeat training they may already be proficient in.

Vivek Dodd, CEO of Skillcast, said:

“It’s not just the time and money spent on training itself but the missed opportunities to develop employees’ skills in a way that delivers value.

“Essential training doesn’t have to be time-consuming – in fact, it’s often better when it’s not because employees are more likely to engage in it. Targeted sessions, based on an individual’s skills requirements and role, ensure they’re meeting the standard while also giving them back time for building their professional and specialist skills.”

Dodd also explained how Skillcast is helping teams address skills gaps in their roles:

“We developed FastTrack, which introduces a pre-course assessment to mandatory training,  helping employers understand specific compliance training needs within their team. Those who pass undertake a shorter, focused version of the course, while those with knowledge gaps are directed to the full course. This ensures organisations stay compliant, reallocating this time to skill-specific training and avoiding employee fatigue.”

View the full research in Skillcast’s Lost Hours Report. 

Source: skillcast