In 2025, contract workers in engineering and manufacturing are facing financial challenges. With the UK economy under pressure, rising inflation, and new IR35 rules, navigating these times can be tough. But for skilled contractors, the opportunities are huge! Here’s how you can stay ahead of the curve.
Key Challenges You’re Facing
Inflation & Living Costs: Inflation at 3%, rising energy costs, and VAT hikes are squeezing contractors. Plus, the Bank of England’s interest rate decisions could push costs higher.
Wage Growth: While wages grew 5.9% in late 2024, the cost of living remains a concern for many contractors.
IR35 Changes: New rules coming in April 2025 could affect your tax status, so compliance is key to avoiding penalties.
Rising Pay Expectations in Engineering & Manufacturing
Good news! The demand for skilled contractors is sky-high. Reports show 63% of manufacturers expect pay increases in 2025. With salaries in manufacturing already 9% higher than the national average, contractors can expect more competitive pay and job opportunities.
Why Contracting is a Smart Career Move
Opportunities:
Higher Pay: Engineering contractors can earn up to 50% more than their staff counterparts in the same organisation.
Flexibility: As a contractor, you have the freedom to choose which clients you work with, often being able to support several organisations, allowing you to distribute your time accordingly, giving you more control over both your career and personal life.
Risks:
Insecurity: Contractors may face gaps between roles as competition increases.
Training Costs: Unlike permanent roles, contractors are responsible for their own professional development.
Ready to Take the Leap?
If you’re experienced in the engineering or manufacturing sector, contracting could be your next big move. Employment Solutions is here to help you secure the right role, negotiate the best pay, and ensure you comply with tax regulations like IR35.
Ready to take action? Get in touch now!
Email us at info@emp-sol.com, call +44 (0)161 839 5353