specialists in

Why More Businesses Are Turning to Contractors Amid Rising Employment Costs and IR35 Changes​​The way businesses think about their workforce is changing. Rising employment costs and new legislation such as the Employment Rights Bill and IR35 reform are driving leaders to explore flexible workforce models.Contractors, once seen as a stop gap, are now central to long-term strategy. They provide agility, cost efficiency, and access to specialist skills.​A shifting employment pictureAccording to the Office for National Statistics, the UK had around 30 million payrolled employees in July 2025, a fall of 178,000 compared with the same month in 2024.Despite this, the unemployment rate remained steady at 4.7%. This highlights that demand for skills is still strong, but organisations are choosing different ways to access them.Contract and project-based workers are bridging the gap. They allow businesses to stay productive without expanding permanent headcount.At the same time, cost pressures are increasing. Government forecasts show that business rates in England are expected to rise to £28.8 billion in 2025–26, up from £27.5 billion in 2024–25.For engineering and manufacturing firms already facing higher energy and labour costs, flexibility is not just about efficiency. It is now a competitive edge.​Why contractors are in demandContractors are helping organisations adapt by offering immediate and measurable advantages:Agility: Teams can be scaled quickly in response to project deadlines or market changes.Specialist expertise: Niche skills can be brought in at the point of need, particularly in engineering and technical sectors.Cost control: Businesses pay for expertise only when required, protecting margins while maintaining output.​Plugging the permanent skills gapMany organisations are also struggling to recruit permanent engineers. The engineering skills gap remains one of the biggest challenges facing the UK economy, with demand for qualified professionals continuing to outstrip supply.Contractors are playing a vital role in bridging this gap. By stepping into critical roles at short notice, they keep production, maintenance, and projects moving forward.This flexible solution ensures organisations can remain competitive while developing longer-term strategies to attract and retain permanent talent.​IR35: renewed confidenceFor several years, IR35 made businesses hesitant about engaging contractors. However, the updated rules introduced in April 2024 have provided more clarity, fairer processes, and better protection against disproportionate penalties.When compliance is managed properly, the financial risk of misclassification is relatively modest, typically around 8 to 10% of contractor fees.With this clarity, more firms are now recognising contractors as a low risk, high value way to strengthen their workforce.​Contract recruitment as a growth driverContractors are no longer just filling short-term gaps. They are enabling businesses to take on new projects, adopt new technologies, and scale rapidly when opportunities arise.In engineering and manufacturing, this approach has become critical. Project pipelines are unpredictable, supply chains are shifting, and the demand for technical skills continues to outpace supply.A blended workforce of permanent and contract talent gives businesses the resilience to adapt and grow.​One decisive advantageTo fully realise these benefits, businesses need more than just access to contractors. They need the right talent, deployed quickly, with compliance guaranteed.This is where ATA Recruitment provides a decisive advantage. At ATA Recruitment, we recognise that the skills gap in engineering and manufacturing is one of the greatest challenges facing the industry today. That is why we are dedicated to driving long-term, sustainable change.Our mission is to bridge the skills gap in engineering and manufacturing through world-class recruitment and attraction methodologies. We are committed to driving the growth of the sectors we serve, the businesses within them, and the careers of individuals.​Ready to unlock the benefits of contract recruitment?Build a more agile workforce, access specialist skills when you need them, and stay fully compliant with IR35.Talk to ATA Recruitment today to strengthen your contractor strategy.

​2025 Half Year Maintenance Market Report ​With nearly 60 years’ experience delivering specialist recruitment solutions to the manufacturing and engineering sectors, ATA Recruitment is recognised as a trusted market leader. Our focus has always been on providing high value services backed by industry insight. As part of this, we regularly share up to date market intelligence to support our clients in making informed hiring decisions.​Now in its third consecutive year, our Half Year Maintenance Market Report continues to be an essential resource for employers navigating today’s fast moving market. First introduced to provide more agile reporting alongside our long running Annual Maintenance Report, now in its ninth year, this edition offers an up to date view of current trends and salary benchmarks.​The 2025 Half Year Report is based on data collected from a broad range of UK businesses, from SMEs to large blue chip companies, operating across sectors such as Food Manufacturing, Automated Distribution, FMCG, Construction Materials and General Manufacturing.​We hope this report provides a useful benchmark for your maintenance recruitment plans. If you would like to discuss the insights in more detail or explore how they relate to your business, please get in touch with our specialist team.​Download the Half Year Maintenance Salary Report 2025​​Get in touch with us here​​

​IR35 Made Simple: What Engineering Employers Need to Know in 2025​Engineering Talent Shortages Are Pushing Employers Toward ContractorsIf you’re finding it difficult to recruit permanent Engineers, you’re not alone. Across the UK, engineering and manufacturing businesses are facing critical skills shortages, from Design and Automation Specialists to Electrical, Mechanical, and Project Engineers.As a result, many companies are turning to contract and interim solutionsto fill urgent gaps, meet project deadlines, and maintain productivity.But for employers new to contract recruitment, or returning after a few years away there’s one major question:​How does IR35 affect us if we engage contractors?​IR35: What You Need to Know (Without the Jargon)The IR35 off-payroll rules changed in April 2021 for the private sector. That means for the last 4 years, medium and large businesses like yours have had to determine the tax status of any contractor working through a limited company (also called a personal service company or PSC).Here are the key points:​You Are ResponsibleIf your business meets two or more of the following:£10.2M+ annual turnover£5.1M+ on your balance sheetMore than 50 employees...then you must assess IR35 status for each contractor engagement.You Must Issue an SDSA Status Determination Statement is a legal requirement. It outlines whether the contractor is “inside” or “outside” IR35, and why.Take “Reasonable Care”HMRC expects you to make fair, well-informed decisions. Blanket assessments or rushed calls put you at risk of tax liability and penalties.​IR35 Shouldn’t Stop You From Hiring Great ContractorsIR35 is manageable, with the right partner.At ATA Recruitment we specialise in contract and interim recruitment for engineering and manufacturing businesses. If you're new to IR35 or unsure how to engage contractors correctly, we’re here to make the process smooth, compliant, and low-risk.​How We Help You Stay Compliant and ConfidentWe don’t just place contractors, we guide you through the full IR35 journey, including:IR35 education and guidance tailored to your businessAssistance in producing compliant SDS documentationAccess to vetted, IR35-aware contractorsUse of umbrella company options, where appropriateAdvice on contract structure and working practicesAnd it doesn’t stop once the contractor starts.​Ongoing Contractor Aftercare = Long-Term ComplianceOur aftercare service ensures you stay compliant throughout the engagement, not just at the start. We’ll:Regularly check in with both you and the contractorFlag any changes that might affect IR35 statusSupport renewal processes and extensionsHelp you remain audit-ready for HMRC inspections​Solve Your Engineering Resourcing Challenge - Without IR35 HeadachesIf you need skilled Engineers but can’t hire them permanently, contractors could be your best route forward.Let us manage the recruitment and the compliance, so you can focus on results, not red tape.​Ready to explore contract solutions?Book your free IR35 & Contractor Strategy Call today Speak with our specialist team on 0116 216 7000 or complete the form below to get started.

​How to Make Management Aspirational Again in Engineering and Manufacturing​More than half of UK employees in middle management roles and below do not see management as an aspirational career path, according to recent research.For engineering and manufacturing companies, this presents both a challenge and an opportunity. As demand for strong leadership increases, now is the time to reshape how management is viewed and make it a genuinely appealing next step for your people.The good news is this: employees are not rejecting leadership entirely. Many are open to it if the right support, guidance and development are in place.​Why Some Employees Are Hesitant About the Management Career PathThere are several common reasons professionals hold back from becoming managers:Limited exposure to strong leadership examplesA lack of structured management development supportConcerns about stress or losing work life balanceUncertainty about future growth beyond their first promotionThese concerns are valid, especially in technically focused environments. But they can be addressed. Employers who take a proactive approach can build confidence in leadership and encourage more aspiring managers to step forward.​Five Ways Employers Can Inspire Aspiring ManagersHere are five actions employers can take to make the management career path attractive, achievable and rewarding.1. Give Employees Early Exposure to LeadershipIntroduce opportunities to lead projects, mentor colleagues or coordinate teams even before someone becomes a formal manager. These real world experiences help employees build confidence and understand what leadership involves.2. Invest in Targeted Management Development SupportDo not wait until someone is promoted to start training them. Offer practical training that includes communication skills, people management, decision making and problem solving. This is especially important in engineering leadership roles, where technical skills alone are not enough.3. Highlight the Positive Impact of Great ManagersEngineering and manufacturing teams often focus on outputs and performance. Help employees see that effective managers create better work environments, support career growth and directly contribute to long term success. Show the human side of leadership.4. Offer Flexible Career PathwaysCreate separate pathways for technical experts and leadership roles so that becoming a manager feels like a meaningful choice rather than a forced promotion. When employees pursue management out of interest and ambition, everyone benefits.5. Provide Ongoing Support for New ManagersOnce someone becomes a manager, continue supporting them. Regular coaching, leadership peer groups and ongoing development are essential. The first twelve to eighteen months are critical for building confidence and long term effectiveness.​Let Us Help You Build Your Leadership PipelineAt ATA Search, we specialise in executive search and leadership strategy for engineering and manufacturing. If you're looking to develop future managers or strengthen your current leadership team, we’re here to help.Through our Team Evaluation Assessments, powered by Thomas International, you'll gain complete clarity on your team's emotional intelligence, behavioural traits and leadership potential. Whether you're hiring or planning ahead, you'll know exactly what your team needs to grow.Build confident leaders. Shape a stronger future.​​

​Why the Human Factor Still Matters in Leadership Recruitment​AI in Recruitment Is Helpful but Not EnoughRecruitment technology has come a long way. In 2025, we can say that artificial intelligence is commonly utilised within the hiring process. Recruiters often use purpose-built tools that include AI systems to assist with tasks like scanning CVs and identifying key patterns. But when it comes to hiring leaders, especially in engineering and manufacturing, technology cannot do everything. AI can help narrow down a list of candidates, but it cannot judge important qualities like resilience, communication skills, or whether someone will fit well with your company’s way of working.​Good Leadership Is About More Than SkillsHiring someone for a senior role is not just about ticking boxes. Leaders in technical industries must guide teams, solve problems, manage change, and think ahead. These are not things that can be measured by a computer.The World Economic Forum’s Future of Jobs Report 2025 says leadership, emotional intelligence, and problem solving are among the most valuable skills for employers. These are not things AI can fully understand. They require human judgement and experience.​Why Personality and Company Fit Still MatterSomeone may look great on their CV but might not work well with your team. Success in leadership often depends on how well someone fits your company culture, how they speak and lead others, and how they handle challenges. These are hard to spot with AI alone.In engineering and manufacturing, the wrong leadership hire can lead to missed deadlines, lower team morale, and costly mistakes. A skilled recruiter can spot small signs during conversations and interviews that a computer might miss.​Blending Data with Human JudgementTools like personality tests and skill assessments are helpful. They give clear information about how a person thinks, communicates, and works under pressure. But to understand the full picture, you still need a human expert who can explain what the results mean for your business.Experienced recruiters know what to look for in a leader. They can tell if someone not only has the skills, but also the right attitude and approach to succeed in your company. The best hiring decisions come from using data and human insight together.​How ATA Search Helps You Hire Exceptional LeadersATA Search works with engineering and manufacturing businesses to find top leaders who can succeed in demanding technical roles. We use our industry knowledge and tools from Thomas International to understand a person’s behaviour, thinking style, personality, and emotional strengths.If you are looking to hire a Head of Engineering, Plant Director, or Technical Sales Leader, we go beyond the CV. We help you make clear, confident hiring decisions based on more than just experience. Our goal is to help you find leaders who will succeed not just today but in the long term.​Ready to find your next great leader?Contact ATA Search today. Let us help you hire with clarity, accuracy, and confidence.Reach out to us today by filling out the form below.​​

ATA Recruitment at the CTP Employment Fair: Supporting Forces Leavers and Closing the UK Skills Gap​We recently attended the CTP Employment Fair in Lincoln, further strengthening our commitment to supporting ex forces professionals and helping UK manufacturers address the growing engineering skills gap.As demand for technical talent continues to rise across the manufacturing sector, finding skilled, reliable and adaptable individuals has become a top priority for employers. One of the most overlooked talent pools is the Ex-Forces community, highly trained professionals with transferable skills that are directly applicable to engineering and industrial environments. ​Why ATA Recruitment Attended the CTP Employment FairDirector Chris Addison and Recruitment Specialist Lewis Gardner represented ATA Recruitment at the event. It was an important opportunity to engage directly with service leavers and learn more about their aspirations as they transition into civilian careers.Chris Addison shared:"Our mission at ATA Recruitment is to help bridge the growing skills gap in UK manufacturing. As part of this plan, we are encouraging our customers to recruit from outside of their current marketplace. Taking on forces leavers is a fantastic option. As the number of our customers willing to do so continues to grow, we made the decision to attend the CTP event in Lincoln. We met so many great forces Engineers with strong qualifications and excellent transferable skills, many of which we will be passing on to the relevant customers."​​​​​​​​​​​​​​​​​Recognising the Value of Ex Forces TalentThe event provided a chance to meet a range of former service personnel, individuals who possess not only technical expertise but also qualities such as resilience, discipline and leadership. These attributes are highly sought after across sectors including General Engineering, Automotive, Aerospace, Food and FMCG, Warehouse Automation and Special Purpose Machinery.Lewis Gardner commented:"Meeting so many talented individuals who have served in the Armed Forces was a privilege. The technical skills and mindset they bring can add real value to businesses across the UK."​A Long Term Vision for Forces RecruitmentMilitary service develops a skillset that is perfectly aligned with the needs of UK industry, from problem solving and process discipline to hands on engineering capability. At ATA Recruitment, we aim to act as the bridge between forces leavers and employers who can benefit from their experience.We provide personalised support to help service leavers identify roles that match their skills and career goals, while also educating clients on the benefits of hiring from this talent pool. The result is a more diverse, skilled and future ready workforce for the sectors that keep the UK economy moving.​Let’s Build the Future TogetherIf you are an employer seeking to address long term skills shortages, or a forces leaver preparing for your next career step, ATA Recruitment is here to support you. We are passionate about creating opportunities that benefit both individuals and businesses, and we believe connecting ex forces professionals with industry is a vital part of that vision. Get in touch today by filling out the form below to discover how we can help you strengthen your team or successfully transition into a new career.​