Skills challenges prove a threat to tech sector

A shortage of skills in key areas threatens the future growth and wellbeing of Manchester and the North West’s tech sector, leading industry figures have warned.

And the continuing success of Manchester in attracting major players and businesses to the region is adding to the pressure. The influx of big names into the city region is set to continue to drive up salaries.

James Doggart, chief executive of fast-growing Manchester-based Cloud Technology Solutions. He says: “There’s a gravity about Manchester that is pulling in talent from the whole of the North West. The pull is getting bigger.”

Stuart Kirby, Andy Lord, Alex Belford of Code Nation

Andy Lord, founder of Manchester-headquartered coding school Code Nation, adds: “There is a myth that it’s easier to find people in Manchester than anywhere else.

“A lot of big corporates are coming here, part of that is there’s a belief it’s easier to attract talent here.”

Lord goes on: “Is Manchester a brilliant place for tech? Yes, because lots of businesses come here and say so. It model it has now sustainable? I would say not.”

He revealed that he recently chaired a meeting of tech recruiters in the city and found that 340 developers were needed across just 12 businesses.

He adds: “If you magnify that for amount of businesses in Manchester you can see why people get to the point where having a ball pit in the office isn’t going to be enough and cash becomes the attractor.

“One of the conversations was about what happens if everyone is offering flexible working and it stops being a USP, what do you next?

“The conversation then moved onto salary, and if everyone is offering flexibility, let’s just do it with cash.”

He adds: “We train people who have no skills and after 12 weeks we give them to employees. We see bidding wars for people who have got 12 weeks’ experience.”

Roger Longden, founder of OKR consultancy There Be Giants, which is based in Bury, says the talent challenge is having an impact.

He adds: “I know of a couple of small software development agencies that have shut up shop because of the talent challenge and the way rates are going up.

“They ran out of cash even though they had the projects and the opportunities.”

Mike Blackburn is managing director of digital marketing agency I-COM, which has its offices in central Manchester. He says the challenge facing his business is recruiting people in technical roles such as coding. He added: “True coders, they are the hard ones to find.”

Conor Parsons is CFO of Planixs. The high-growth Manchester-based fintech company secured an initial £3.5m minority equity investment from BGF earlier this year.

He also talks of the competition for talent remaining fierce. “There is no shortage of opportunities; it’s just that when it comes to filling those roles you won’t necessarily be the only recruiter on it.

“The talent shortage is there. I moved up from London for this role where it is much more intense. The business I was with was recruiting software talent for six months and then they’d go. It is a costly way to do business.”