The UK's engineering preparatory system was astoundingly good- sad to hear it fell by the wayside. Same is true of my uni, which has a mandatory co-op program (very good, essential in my view to the education of a decent engineer), but also once had a lot of faculty with significant industrial experience. No more- they're all academic pinheads now, which is the only way they can be qualified under the publish or perish research funding regime that determines whether or not they're good candidates for faculty positions. Some are very earnest and try very hard, but most are teaching engineering training stuff like sizing and selection etc. from a textbook or someone else's notes.
But you've hit the nail on the head- the b*tching about shortages and "lack of skills" is as a result of the firms' finding themselves short of people with 10 years of applicable relevant experience that those same firms didn't hire ten years ago as fresh grads. Someone with ten years of related experience isn't considered qualified, nor is somebody with 30 years of experience, much less a fresh grad...No way to fix that, folks, aside from hiring young people as interns/co-ops, training them, picking the best ones and hiring them, and then training them on the job. But that's not desirable for some firms because a) it takes effort, b) you need to pay them well so they stick around for long enough to give you a return on your training investment, and c) you need to find people in your senior staff who are both willing and able to train them. We figured it out, and I sincerely hope that some of our competitors don't so we can blow them out of the market.