As far back as 2018, the manufacturing industry recognized a growing chasm between the technological innovations transforming the sector and workers’ competencies. In its report, audit firm Deloitte projected that the skills gap would lead to a workforce shortage resulting in 2 million unfilled positions. A later 2021 Deloitte study found that these projections remain largely unchanged.

Manufacturing firms are investing considerable resources into identifying the root of the digital skills gap and bringing more qualified workers into the industry.

The Skills Gap Problem

There are several, concurrent factors contributing to the skills gap.

Due to outdated misconceptions of the industry, manufacturing jobs are often regarded as dangerous or physically exhaustive work. Generations of college graduates were encouraged to pursue work in white-collar environments. Thus, the number of young people entering manufacturing at the entry-level has plummeted.

At the same time, Baby Boomers, who made up a sizable percentage of the manufacturing workforce, are reaching retirement age. This mass exodus from the field paired with a lack of younger workers has caused shortages.

Additionally, manufacturing itself is becoming a more sophisticated profession. Industry experts have dubbed the widespread adoption of manufacturing automation solutions as the fourth industrial revolution, or Industry 4.0.

Many of the new jobs in the sector require knowledge and expertise in advanced technologies, such as the Internet of Things and programming languages. Unfortunately, there aren’t enough candidates with these technical skills to fill these roles.

Possible Solutions for Workforce Shortages

There are several ways manufacturing firms can tackle the digital skills gap.

• Upskill Current Workforce

As the sector adopts new technologies, current workers need up-to-date education to use this software and equipment. Companies can start in-house training programs, or outsource training to qualified third parties.

In some organizations, workers with advanced technical skills can train and mentor their colleagues. Companies can also implement tuition reimbursement programs to encourage workers to enroll in higher education.

Companies that offer upskilling and professional development opportunities can also counter the myth that manufacturing is a dead-end career. The sector can better attract individuals interested in careers in IT or technology.

• Breakdown Silos

Traditionally, manufacturing companies are divided into insulated departments. The lack of collaboration between different divisions makes it more difficult for potential candidates to identify viable career paths.

However, new technologies are breaking barriers between department silos by collecting and analyzing data across segments. As a result, the industry is increasing cross-collaborations between teams.

To best leverage the movement towards automation and big data, companies will have to invest in educating their workers and ensuring they have the necessary technical skills.

• Build Pipelines

At the other end of the spectrum, the manufacturing industry needs to attract younger workers. Forging a talent pipeline is one way to improve the recruitment process.  As students often abandon STEM-focused career pathways in high school, companies must start the pipeline early.

Manufacturers can partner with high schools to offer mentorship and internship opportunities to interested students. Companies can also participate in recruitment fairs at local colleges to encourage freshman and sophomores to pursue careers in manufacturing.

Economics analysts have also noted that the lack of gender diversity in  manufacturing is also driving worker shortages. Women are much less likely to be employed in the sector than men.

Companies can attract and retain more diverse talent by setting and working towards Diversity, Inclusion, and Equity goals. Policies such as subsidized child care and flexible schedules also help retain workers with caregiving responsibilities.

• Challenge Industry Misconceptions

Many of the pervading myths about the manufacturing industry stem from outdated perceptions of the work environment or career progression. Many parents and educators viewed manufacturing as unskilled and unfulfilling work and discouraged young people from entering the sector.

Manufacturing is also unfairly classified as a low-paying sector. In reality, average wages in the industry have steadily increased between 2006 and 2021. 

Companies should publicly address these misconceptions through publicity campaigns. For example, the US recognized the first Friday in October as National Manufacturing Day.

During this holiday, industry organizations launch outreach and education campaigns to inform students, their families, and schools of the opportunities within manufacturing.

Organizations also emphasize the link between manufacturing and in-demand STEM sectors such as bioengineering, robotics, and data analytics.

Conclusion

The National Association of Manufacturers estimates that the sector’s workforce shortage will remain at over 2 million by 2030. Companies must put policies and programs in place today to encourage young workers to join the field. Secondary schools and universities must also challenge public perception of the sector and promote manufacturing as a lucrative and challenging career choice.