Why Food & FMCG SMEs Are Turning Back to External Engineering Support
There was a time when many smaller Food & FMCG manufacturers relied heavily on external engineering support.
Subcontractors, local engineering firms, OEM service engineers and specialist contractors were regularly used to maintain equipment, respond to breakdowns, carry out improvements and support planned shutdowns.
Over time, many manufacturers started to bring more of this engineering capability in-house.
It made sense.
Having permanent engineers on site gave businesses more control, faster response times, better knowledge of their equipment, and a stronger grip on planned maintenance, downtime, compliance and continuous improvement.
But in recent years, the market has shifted again.
Engineering skill shortages, rising salaries and the difficulty of recruiting experienced Maintenance Engineers have made it much harder for smaller and growing Food & FMCG manufacturers to build and retain the in-house engineering teams they need.
As a result, some SMEs are now finding themselves moving back towards external engineering support.
Not always because it is their preferred option, but because attracting and affording permanent engineering talent has become increasingly difficult.
Key Takeaways
- Many manufacturers previously moved engineering support in-house to improve control, response times and site knowledge
- Skills shortages are making it harder for SMEs to recruit permanent Maintenance Engineers
- Rising salaries are putting experienced engineering talent out of reach for some smaller manufacturers
- External contractors and engineering firms can provide flexibility, but dependency can become costly
- Losing in-house engineering knowledge can increase operational risk
- SMEs may need a blended model combining permanent engineers with trusted external support
From External Support to In-House Engineering
For many Food & FMCG manufacturers, the move towards in-house engineering was a natural progression. As production volumes increased, machinery became more complex and customer demands grew, businesses needed more reliable engineering support on site. Relying entirely on external contractors was not always practical.
If a production line stopped, waiting for an external engineer could be expensive. If the same fault kept happening, the business needed someone who understood the equipment properly. If planned maintenance was being missed, someone needed to take ownership.
Bringing engineering support in-house helped solve many of these problems.
A permanent Maintenance Engineer could learn the site, understand the machinery, build relationships with production teams, spot recurring issues and take more responsibility for keeping equipment running.
For many SMEs, this was a positive step.
It moved engineering away from being purely reactive and helped businesses become more planned, more controlled and more self-sufficient.
Why the Market Has Shifted Again
The challenge is that the engineering labour market has changed.
Experienced Maintenance Engineers are in high demand, particularly those with Food, FMCG, packaging, process, automation or multi-skilled experience.
Smaller manufacturers are often competing with larger food groups, pharmaceutical manufacturers, utilities, logistics businesses, automation-led sites and high-volume production environments.
These larger employers can often offer stronger salaries, better shift allowances, enhanced overtime, larger engineering teams, clearer progression and more structured benefits.
For an SME, this creates a difficult situation.
They may still need the same level of engineering skill, but they may not have the same budget or infrastructure to compete.
A smaller Food & FMCG manufacturer may want to hire a strong permanent engineer, but find that the salary needed to attract the right person is higher than expected.
In some cases, the gap between what the business can afford and what the market demands becomes too wide.
The Cost Pressure on Smaller Manufacturers
Hiring a permanent Maintenance Engineer is a significant investment. The salary is only one part of the cost. Employers also need to consider pension contributions, National Insurance, holiday cover, overtime, call-out arrangements, training, PPE, tools, recruitment costs and retention risk.
For a larger manufacturer, these costs may sit within a wider engineering structure.
For a smaller or growing SME, one engineering hire can make a much bigger impact on the wage bill.
This is one reason why some businesses start to look again at subcontractors and external engineering firms.
On paper, external support can feel more manageable.
Rather than committing to a full-time salary, the business pays for engineering help when it is needed.
That can work well in certain situations, particularly where the requirement is specialist, occasional or project-based.
But when external support becomes a substitute for day-to-day engineering ownership, the risks start to increase.
The Appeal of External Engineering Support
There are clear benefits to using subcontractors, OEM engineers and external engineering firms.
They can provide specialist knowledge, additional capacity and technical support that may not be required every day.
For smaller Food & FMCG manufacturers, external support can be valuable for:
- Specialist machinery repairs
- OEM equipment support
- Electrical and controls issues
- Fabrication and pipework
- Process plant maintenance
- Packaging machinery problems
- Installations and commissioning
- Compliance-related work
- Planned shutdowns
- Automation upgrades
- Project support
In the right circumstances, this can be a sensible approach.
Not every SME needs a large in-house engineering team. Some businesses simply need reliable access to trusted external support at the right times.
The issue is not the use of contractors.
The issue is becoming too dependent on them.
When External Support Becomes a Risk
External engineering support can quickly move from being helpful to essential.
That is when problems can arise.
If a business cannot keep its equipment running without regular contractor call-outs, it may be exposed operationally and commercially.
Response times may be outside its control. Emergency work can become expensive. Repeated visits can add up quickly. Internal knowledge may not develop. Root causes may not be properly addressed.
The equipment belongs to the manufacturer. The downtime affects the manufacturer. The production pressure sits with the manufacturer.
But the engineering knowledge may sit outside the business.
Over time, this can make the site more reactive.
Breakdowns are fixed, but not always prevented. Planned maintenance gets completed, but not always improved. Problems are resolved, but the learning does not always stay in-house.
For growing SMEs, that can become a serious limitation.
The Value of In-House Engineering Knowledge
A good in-house Maintenance Engineer brings more than technical ability.
They understand the site.
They know which machine causes the most problems, which operator reports issues early, which line needs extra attention, which bearings are starting to fail, which equipment has been modified, and which supplier is best to call when something goes wrong.
That knowledge builds over time.
It is difficult to replace with external support alone.
Contractors and external engineers may be highly skilled, but they are not always present every day. They may fix the immediate fault, but they may not always have the same understanding of production pressure, site history, recurring issues or long-term improvement opportunities.
That is why losing in-house engineering capability can have a bigger impact than many businesses realise.
Why SMEs Need a Balanced Approach
For many smaller Food & FMCG manufacturers, the answer may not be fully in-house or fully outsourced.
The answer may be a blended model.
This could mean having one strong permanent Maintenance Engineer supported by trusted contractors.
It could mean hiring a hands-on Engineering Manager who manages external suppliers and takes ownership of site engineering.
It could mean keeping mechanical support in-house while using external specialists for electrical, controls or OEM work.
It could mean using contractors for shutdowns, projects and specialist repairs, while keeping day-to-day fault finding and planned maintenance under internal control.
The right model depends on the size of the site, the complexity of the equipment, production hours, budget, growth plans and the level of risk the business is prepared to accept.
But the key point is this:
External support should be part of the engineering strategy, not a default reaction to recruitment difficulties.
Making Permanent Engineering Roles More Attractive
SMEs may not always be able to compete with the highest salaries in the market.
But they can still attract good engineers if the role is positioned properly.
Many engineers are attracted to smaller businesses because they can offer variety, autonomy and the chance to make a visible impact.
In an SME environment, an engineer may be involved in breakdowns, planned maintenance, improvement projects, installations, supplier management, process equipment, packaging machinery and continuous improvement.
That variety can be a real selling point.
However, the role needs to be clearly defined.
Employers should be clear about:
- The machinery and equipment on site
- The balance between mechanical and electrical work
- The working hours and call-out expectations
- The level of autonomy in the role
- The support available from contractors or OEMs
- The investment being made in machinery
- The opportunity to improve systems
- The long-term plan for engineering
- The culture of the business
Good engineers want to understand what they are joining.
If the role is presented properly, smaller manufacturers can still compete, even when they cannot match the very highest salaries.
So, What Does It All Mean?
When you step back, the shift back towards external engineering support is not simply about preference.
It is a response to market pressure.
Many manufacturers originally brought engineering in-house because it gave them better control, faster response times and stronger site knowledge.
But skills shortages, salary inflation and recruitment difficulties are making that model harder for some SMEs to maintain.
External contractors and engineering firms can provide valuable support, but too much dependency can create cost, knowledge and response-time risks.
For smaller and growing Food & FMCG manufacturers, the most effective approach is often a balanced one.
Keep essential engineering knowledge in-house where possible. Use external specialists where they add value. Be realistic about salary. Be clear about the role. And do not wait until the business is already under pressure before reviewing the engineering structure.
Next Steps
If you are a smaller or growing Food & FMCG manufacturer, now may be the right time to review how your engineering support is structured.
Ask yourself:
- Are we relying too heavily on external contractors?
- Do we have enough engineering knowledge in-house?
- Are breakdowns becoming more frequent?
- Are contractor costs increasing?
- Is planned maintenance being properly owned?
- Could one permanent engineer reduce our external spend?
- Is our salary package realistic for the market?
- Are we positioning the role properly to attract the right person?
At SimWest Engineering Recruitment, we help Food, FMCG and manufacturing businesses understand the engineering recruitment market, benchmark salary expectations, define realistic Maintenance Engineer roles, and attract the right permanent engineering talent.
If you are reviewing whether to hire permanently, continue using external contractors, or build a more balanced engineering support model, we would be happy to have a straightforward conversation.
Speak with a Specialist Engineering Recruiter
FAQs
Why are Food & FMCG SMEs using more external engineering support?
Because engineering skill shortages, rising salaries and difficulty recruiting experienced Maintenance Engineers have made it harder for smaller manufacturers to build and retain in-house engineering teams.
Is external engineering support better than hiring a permanent Maintenance Engineer?
Not always. External support can be useful for specialist repairs, shutdowns and OEM work, but relying on contractors for day-to-day engineering ownership can increase cost, downtime and operational risk.
How can SMEs attract Maintenance Engineers?
SMEs should be realistic on salary, clearly define the role, highlight variety and autonomy, explain the machinery and working hours, and show engineers how they can make a visible impact.
About the Author
Stephen Simpson is Director and Engineering Recruiter at SimWest Engineering Recruitment, a specialist recruitment business supporting UK manufacturers with engineering, maintenance, design, automation and technical recruitment. With over 17 years’ experience in engineering and manufacturing recruitment, Stephen works closely with businesses across the Food & Beverage, FMCG, Special Purpose Machinery and wider industrial sectors.
Through the SimWest blog, Stephen leverages his extensive network and market data to share industry insights, hiring advice, and career guidance to help engineering professionals and manufacturing businesses make better recruitment decisions.
