For many manufacturing businesses, recruiting and retaining skilled international talent has become increasingly challenging.
In this Q&A, Robert Brothers, Head of Myerson's Manufacturing Sector, speaks with immigration specialist Mohammed Hafejee, Partner at Latitude Law, to explore how recent changes to the UK’s immigration rules are affecting manufacturers, the emerging trends employers should be aware of, and the practical steps businesses can take to remain compliant, competitive and prepared for the future.
Drawing on extensive experience advising clients in this sector, Latitude Law shares its insights into sponsorship, recruitment strategy, compliance obligations and the evolving immigration landscape.
What experience do you have supporting manufacturers with immigration matters, and what types of issues do you commonly deal with in the sector?
At Latitude Law, we have extensive experience supporting businesses within the manufacturing sector with a wide range of immigration matters.
These include advising on sponsor licences, visa applications for skilled workers, and global mobility visa options, such as expansion worker visas for new businesses or intra-company transfer routes.
We also frequently provide strategic advice for manufacturing companies wishing to bring overseas workers to the UK to undertake permitted work as business visitors on short-term contracts.
In addition to assisting employers with worker-related matters, our legal services include providing advice and training to HR departments on sponsorship compliance obligations, conducting mock audits, and assisting with right-to-work and record-keeping processes.
What are the key challenges manufacturers currently face when recruiting talent from overseas?
In accordance with the UK Government’s White Paper proposals to reduce net migration, the 2025 changes to the Immigration Rules have made it more difficult for the manufacturing and construction sectors to fulfil labour shortages with skilled talent from overseas.
The Skilled Worker route now typically requires roles at degree level (RQF Level 6 or above) — a substantial shift from earlier thresholds that included lower-skill jobs. As a result, over 100 occupations were removed in July 2025 from eligible skilled worker roles. This means that only a limited number of senior roles in the manufacturing sector now qualify for sponsorship, leading to project delays, increased costs and significant recruitment challenges. A number of lower-skilled roles remain the scope of sponsorship via shortage occupation lists; these include a range of skilled trades, from welders and pipe fitters to electricians and steel erectors.
Other challenges that employers have faced is the increased ‘general’ salary threshold for skilled workers to £41,700 per annum. However, in certain circumstances, the general salary threshold can be discounted to £33,400 for migrant workers, e.g., if they are under the age of 26; if the migrant is switching from a student / graduate visa holders to the Skilled Worker route; or if the role is listed within the Immigration Salary List (ISL, formerly knowns as the shortage occupation list).
Other obstacles which could prevent overseas workers within the manufacturing sector coming to work in the UK are; not being able to bring dependants for certain roles which are on the Temporary Shortage List or the Immigration Salary List; and the proposed increase of the settlement period from 5 years to 10 years which is likely to prevent many potential overseas skilled workers to come and work in the UK.
How is the UK immigration landscape changing, and how do you anticipate those changes impacting manufacturing recruitment over the next few years?
The main impacts are:
Increased costs
The increase in salary thresholds for skilled worker sponsorship in the manufacturing and construction sectors will likely lead to higher employer costs and potentially affect the availability of skilled labour in these industries.
Difficulty in Recruitment
Higher salary thresholds make it more challenging to recruit skilled workers from overseas, potentially worsening existing labour shortages in the manufacturing/construction sectors.
Potential for Pay Rises
Businesses may need to increase wages for existing skilled workers to meet the new thresholds, particularly in sectors such as manufacturing, where wages may be lower.
Focus on Higher-Skilled Roles
The shift to RQF Level 6 requirements means that employers will likely need to focus on recruiting for roles that require a degree-level qualification, potentially overlooking skilled workers with lower qualifications.
The reforms aim to fundamentally shift away from reliance on lower-skilled migrant labour towards a high-skill, high-wage model. While this may align with long-term objectives of upskilling and reducing net migration, the short‑term impact for employers in the manufacturing sector is likely to be severe, ranging from staffing crises to operational disruptions and cost pressures.
What emerging immigration trends are you seeing in UK manufacturing, and what’s driving them e.g., skills shortages?
Over the past few years, we have seen an emerging trend in the manufacturing sector: shortages of skilled labour. As immigration becomes more tightly controlled, the UK government is placing greater emphasis on training domestic workers.
Employers will therefore need to invest in skills development, apprenticeships and retention, as well as re-engineer roles to make them more attractive to the settled workforce (for example, through better pay, flexible hours and clearer career progression).
What practical steps should manufacturing businesses take now if they are considering hiring internationally or expanding their skilled workforce?
It is advisable for businesses to plan which skilled roles may need to be filled by international workers, particularly given the reduced number of eligible roles and changes to skill and salary thresholds.
Businesses should also consider the cost implications and incorporate projected immigration costs into their financial planning.
What best practices would you recommend to help manufacturers stay compliant and avoid common immigration pitfalls?
As the Home Office is stepping up enforcement action against illegal working and breaches of sponsor licence compliance, it is crucially important that businesses within the manufacturing sector stay on top of the following:
- Conducting correct right-to-work checks
- Maintain record-keeping and reporting duties in relation to overseas workers
- To be audit-ready should UKVI conduct a compliance visit
Compliance breaches could be severe, particularly for businesses that hold a sponsor licence. If a business is found liable for breaching its compliance duties, this could lead to suspension, or worse, revocation of the licence. Revocation of a sponsor licence will also lead to the curtailment of sponsored worker visas.
Conclusion
The changing immigration landscape presents both challenges and opportunities for UK manufacturers. Rising salary thresholds, stricter role eligibility, and increasing compliance demands mean employers would benefit from early planning and taking specialist legal advice.
At the same time, there is scope for manufacturers to future‑proof their workforce by developing long‑term skills strategies, investing in training, and implementing robust sponsorship and compliance processes.
To find out more about how the latest government rules changes may impact your business and how to stay compliant, contact Latitude Law for a free consultation.
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Guest Author
Mohammed Hafejee
Partner
Mohammed Hafejee is a Partner at Latitude Law, specialising in business immigration.
He advises businesses and HR departments across the UK on sponsor licence applications, compliance with Home Office requirements and workforce immigration strategy.
Mohammed also supports high-net-worth individuals and entrepreneurs with UK visa applications and business immigration matters.
He has particular expertise in helping international sportspersons and individuals demonstrating exceptional talent or promise secure Global Talent visas.
He is recognised in the Legal 500.
Latitude Law