Nelson Mandela Bay’s manufacturing sector is facing a technical skills shortage that is constraining the region’s ability to grow, attract investment and create jobs, even as thousands of people remain in desperate need of employment.
That is the key indicator emerging from the 2026 Nelson Mandela Bay Manufacturing Skills Audit report, which reveals a widening disconnect between the skills available in the metro and those required by its manufacturing economy.
The findings point to a paradox at the heart of the region’s labour market: while unemployment remains high, manufacturers are repeatedly unable to find people with the specialised technical and practical skills required to operate, maintain and modernise increasingly sophisticated production environments.
Driven by the Nelson Mandela Bay Business Chamber (Chamber) in partnership with Harambee Youth Employment Accelerator (Harambee), the first-of-its-kind Skills Audit surveyed and assessed 55 manufacturing enterprises representing 12 662 employees across the Bay. The report provides the most comprehensive industry-led picture to date of the skills required to sustain and grow Nelson Mandela Bay’s manufacturing competitiveness.
The audit establishes a 2026 NMB Manufacturing Skills Barometer as the sector’s baseline against which future progress will be measured. It’s Hard-to-Fill Index baseline scored 30.4, classified as critical pressure. Employers rated failed recruitment searches at 9 out of 10, while both difficulty in filling positions and vacancy duration scored 7.5 out of 10.
“These findings should concern all of us because they expose a fundamental disconnect in our economy,” says Denise van Huyssteen, Chief Executive Officer of the Chamber.
“We have a large pool of people, including graduates, who are actively searching for employment opportunities, while businesses are struggling to find the specialised skills they need. We cannot continue treating these as two separate problems. They are fundamentally connected and closing that gap must become an economic priority. Moreover, we have an unacceptably high unemployment rate of 33.1% in the metro, yet there are vacancies which take many months to be filled or simply remain unfilled.”
The shortages are concentrated in occupations critical to the efficient operation and modernisation of manufacturing plants. These include toolmakers, millwrights and multi-skilled artisans, injection and press setters, CNC programmers, instrumentation technicians, quality specialists, CMM programmers, frontline supervisors and IT/OT integration specialists.
The challenge is not simply the number of people available in the labour market, but the depth of competence required for the increasingly technical manufacturing environments.
But the report makes clear that the challenge extends beyond filling today’s vacancies.
Manufacturing is undergoing rapid technological advancement, with companies increasingly adopting automation, robotics, connected systems and data-driven production. Yet 80.4% of companies surveyed report that their existing workforce lacks the foundational digital skills required to transition into new technology-enabled roles.
“This is not simply about whether a company can find a person to fill a vacancy,” says Van Huyssteen. “It is about whether our workforce is equipped to support the manufacturing technologies that will define the next phase of industrial growth.”
The critical future skills identified include PLC and automation diagnostics, electro-mechanical multi-skilling, MES/OEE configuration, advanced metrology and CMM programming, predictive maintenance, digital QA and LIMS/eBMR administration, digital process technicians and IT/OT integration specialists, as well as NEV and future mobility technical skills.
The report also highlights a significant challenge in the youth pipeline into manufacturing. While large numbers of young people enter development programmes, far fewer emerge with the competence and workplace experience required for sustainable technical employment.
Deficits in numeracy, English, digital literacy, practical workplace exposure and work-readiness are compounded by transport and shift-work challenges. These challenges affect youth retention, which is reported to be 17.8%. In practice, this indicates that young people enter and exit the workplace, and that simply creating more entry-level opportunities will not, on its own, solve the problem.
For the Chamber, the findings point to the need for a fundamental shift from fragmented training interventions towards an industry-led approach.
The Chamber is establishing an Industry-Led Skills Pathway Agenda aimed at creating a much stronger connection between business, education and the labour market.
Branson Bosman, Skills Development Board Lead & Executive: Workforce Development & Strategic Management at Aspen SA Operations, says the findings demonstrate the need to rethink how the manufacturing skills pipeline is developed.
“The issue is not simply that industry needs more technically qualified people. We need to look much more closely at whether the skills being developed are aligned with the actual technologies, production systems and workplace requirements of modern manufacturing,” says Bosman.
“Manufacturing is changing rapidly. Automation, robotics, digital systems and advanced production technologies are becoming increasingly embedded in the workplace. If we do not build these capabilities into the skills pipeline now, we will continue to train people for yesterday’s jobs while businesses are looking for the skills of tomorrow.”
He says stronger collaboration between industry, education and training institutions will be critical to closing the gap.
“We need to move from a supply-driven approach, where training is provided because programmes exist, to a demand-driven model where industry has a meaningful role in defining what skills are required, how those skills are developed and how young people transition into the workplace.”
Proposed interventions include an Industry-Higher Education Strategic Skills Advancement Panel, a Sector Skills Advisory Panel, a centralised skills database to match technical talent with vacancies, and a structured “Knowledge Bridge” to transfer the expertise of retiring artisans and engineers to the next generation.The agenda also proposes an “Adopt a TVET” lecturer immersion programme, a Digital Process Technician pathway for unemployed youth and accredited technical training in automation, networking and digital technologies.
Longer-term interventions include shared Industry 4.0 technical hubs and dedicated training in New Energy Vehicles, battery technologies, hydrogen and other green skills.
Bosman says the proposed interventions should be viewed as part of a longer-term strategy to ensure Nelson Mandela Bay remains competitive as manufacturing evolves.
“We have an opportunity to build a skills ecosystem that is directly connected to the future of manufacturing in the Bay. That means exposing learners and lecturers to real industrial environments, strengthening technical training, creating pathways into emerging technologies and ensuring that experienced professionals can transfer their knowledge to the next generation.”
Tracking progress through the Barometer, at the heart of the strategy is the proposed Regional Manufacturing Skills Observatory (Observatory), which will build on the 2026 Barometer to provide ongoing intelligence on changing skills demand, digital readiness and emerging occupations.
“The value of the Barometer is that it gives us a baseline,” says Bosman. “But a baseline only becomes useful if we continue measuring against it. The skills requirements of manufacturing will continue to evolve, so we need an intelligence system that can track those changes and allow industry, education and policymakers to respond before skills shortages become a constraint on growth.”
The Chamber sees the Observatory as more than a data repository. It is intended to help align training with industry demand, inform funding decisions, support investment attraction and demonstrate that the Bay is actively building the skills base required by modern manufacturing.
“The most important thing about this Barometer is that it gives us a starting point,” says Van Huyssteen. “We now have evidence of where the gaps are, where the pressures are emerging and what industry believes it will need in the future. The next step is to use that intelligence to drive coordinated action.”
“Our message is simple. We cannot wait for the skills crisis to solve itself,” further adds Van Huyssteen. “If we want to attract investment, retain existing manufacturers and create meaningful employment for young people, we need to build the workforce that the economy needs, not only the workforce that our current systems happen to produce.”
The Barometer presents Nelson Mandela Bay with a choice: continue responding to skills shortages as they emerge or use the evidence to deliberately build a future-ready industrial workforce.
For the Business Chamber, the opportunity is clear.
“Our manufacturing sector has the industrial foundation, our young people need opportunities, and our education and training institutions have an important role to play,” she says. “What we need now is greater alignment. If we can connect those pieces, the skills challenge can become one of our greatest opportunities for economic growth and investment.”
Nandipha Isaacs, Head: Opportunity Development and Incubation at Harambee said one of the most significant findings from this report “is that it gives us a much clearer view of where manufacturing demand exists today and where it is heading in the future.” “This is exactly the kind of demand intelligence needed to move beyond training for training's sake and towards demand-led skilling that is intentionally designed around the skills and capabilities employers need,” she said.
“Too often, skills development and labour market demand operate in parallel rather than in partnership. The result is that young people invest time and effort in training programmes but still struggle to access meaningful employment, while businesses continue to face critical skills shortages. This report helps bridge that gap by providing the evidence needed to better align skilling investments with real industry demand and ensure that training delivers value for all,” Isaacs added.
Manufacturing remains one of Nelson Mandela Bay’s most important engines of economic growth and job creation. Ensuring that young people can participate meaningfully in this growth is not only a workforce imperative; it is an investment in the Bay's future competitiveness and prosperity.
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Issued by:
Sibongile Dimbaza
Communications Officer