How Manufacturing Companies Can Solve Talent Shortages

Without a skilled workforce, manufacturers face:

• Reduced productivity and efficiency.
• Increased downtime and maintenance costs.
• Slower adoption of cutting-edge technologies.
• Diminished competitiveness in the global market.

But there are solutions.

Forward-thinking businesses, open to change, can still bridge the skills gap and build strong talent pipelines. 

In this article, we’ll explore the manufacturing talent shortage and novel approaches to solve it, including upskilling programs, smart partnerships, and rethinking recruitment strategies.

Understanding the Manufacturing Talent Shortage 

The talent shortage in manufacturing isn't just a fleeting challenge — it's a persistent, long-term issue. But just how bad is it? 

The Scale of the Problem

According to a 2023 survey by the National Association of Manufacturers (NAM), 75% of manufacturers cited the inability to attract and retain employees as their primary challenge.

This has severe consequences for both the industry and the economy at large. More than 59% of manufacturers said that not having enough employees will hamper their ability to make investments or expand.

If not addressed now, this problem will snowball into a much larger one in the future. 

More job openings are a welcome sign in any economy – indicating a potential route for many to end their unemployment. 

Here are some figures relating to manufacturing jobs in the US:

• Since the Inflation Reduction Act (IRA) passed in 2022, 263 new clean manufacturing projects have been announced, which are expected to create over 102,818 new jobs. 

• According to data from the US Bureau of Labor Statistics (BLS), there have consistently been more manufacturing job openings (578) than hires (345) from June 2023 to June 2024.

Overall, these numbers paint a clear picture: the manufacturing talent shortage is real, significant, and impacting business growth and innovation right now. 

With the right interventions, however, new job openings can become a blessing for workers, the industry, and the economy at large.

Root Causes of the Talent Shortage

So, why is this happening? 

A multitude of factors contribute to the current talent crisis in manufacturing. The most prominent among them are:

1. Skills Gap

A rapid spurt of technological advancement has created a mismatch between the skills needed and the skills available in the workforce. 

Modern manufacturing involves areas like robotics, smart factories, data analytics, and IoT — skills that many job seekers lack.

2. Aging Workforce

A significant portion of the skilled workforce is nearing retirement age, taking with them years of experience and knowledge. As of 2023, over 25% of manufacturing employees were aged 55 or above. 

3. Negative Perceptions

Despite offering competitive salaries and opportunities for advancement, manufacturing still battles outdated stereotypes. 

Many young people perceive manufacturing jobs as a thing of the past: boring, dangerous, or lacking in career growth potential. This misperception steers promising talent away from the industry.

4. Education System Misalignment

There's often a disconnect between the skills taught in traditional education systems and those needed in modern manufacturing. 

Many educational institutions and technical schools haven't kept up with industry changes. New tech-related skill requirements evolve quickly, leaving graduates with outdated skills by the time they graduate. 

5. Competition from Other Industries

Tech-savvy workers, who could thrive in modern manufacturing environments, are often lured away by other industries perceived as more cutting-edge or offering better work-life balance.

Solving this crisis will require a multifaceted approach — one that addresses all of these challenges simultaneously. 

At the same time, manufacturing needs solutions for both immediate hiring needs and long-term talent pipeline development.

Creating a Robust Talent Pipeline 

Waiting for qualified candidates to appear isn't a viable strategy. 

Instead, manufacturers need to take matters into their own hands and create robust talent pipelines. 

Let's explore how they can do this. 

Partnering with Educational Institutions

If educational systems aren’t keeping up, a natural solution is to forge stronger partnerships with them to equip students with the right skills. 

1. Curriculum Development: Provide input on the skills and knowledge required in modern manufacturing. Working closely with local colleges and technical schools will help them align with industry needs while boosting the value proposition of their programs. 
2. Guest Lectures and Workshops: Industry professionals can conduct workshops or give guest lectures in schools. Such initiatives expose students to real-world manufacturing challenges while correcting misconceptions about the field. The goal is to fan those first sparks of interest.
3. Internship Programs: Students are always looking for internships to improve their resumes. Before they get taken in by another industry, offer them internships in manufacturing with meaningful roles. Students want learning environments where they can pick up real skills and hands-on experience. Being able to identify potential future employees is a bonus!
4. Equipment Donations: While some schools are well-equipped, support those that need modern manufacturing equipment or software. This creates well-equipped students and increases awareness around your employer brand.

Developing Apprenticeship Programs

Apprenticeships cultivate talent while addressing immediate workforce needs. 

These programs combine on-the-job training with classroom instruction, allowing apprentices to earn while they learn.

The benefits of apprenticeship programs are significant:

• According to the US Department of Labor, 94% of apprentices who complete an apprenticeship program retain employment.
• According to the US government, companies reap a $1.47 return for every dollar spent on registered apprenticeships.

To create an effective apprenticeship program:

1. Identify Key Roles: Focus on positions that are critical to your operations and facing skill shortages.
2. Structured Learning: Develop a curriculum that combines hands-on training with classroom or online learning. Partnering with an education or skill development platform helps.
3. Mentorship: Pair apprentices with experienced employees who can guide their development.
4. Clear Progression: Outline a clear path for advancement upon completion of the program.

Engaging with Schools for Early Career Exposure

It's never too early to start building your talent pipeline. 

Engaging with K-12 schools can help change perceptions about manufacturing careers and inspire the next generation of workers.

If other industries can do it, then why not yours?

1. Career Fairs: Participate in school career fairs and give a taste of modern manufacturing careers.
2. Factory Tours: Invite students to tour your facilities and demonstrate the high-tech nature of modern manufacturing.
3. STEM Programs: Support or sponsor STEM programs in local schools with the aim of creating a stronger regional talent pool.
4. Maker Spaces: Collaborate with schools to create 'maker spaces' where students can engage in hands-on projects related to manufacturing.

Embracing Skills-Based Hiring

As we’ve discussed, building a talent pipeline is important. It's equally important, however, to rethink how we evaluate candidates. 

Skills-based hiring focuses on a candidate's abilities rather than formal credentials.

• A ZipRecruiter survey found that 72% of employers now practice skills-based hiring, prioritizing skills over certificates. 
• A 2023 LinkedIn report finds that a skills-first hiring approach could add up to 20x more eligible workers to employer talent pools.

Implementing skills-based hiring on your own might seem tricky — but a strategic approach will reap multiple benefits. 

Here’s how you can start:

1. Identify Core Competencies: Define the specific skills needed for each role. Don’t forget important soft skills on your list!
2. Develop Skill Assessments: Create tests or projects that give candidates a chance to demonstrate their abilities. Alternatively, use existing skill assessment frameworks.
3. Revise Job Descriptions: Emphasize the skills you’re looking for rather than degrees or years of experience.
4. Train Hiring Managers: Your hiring managers might not be used to a skills-first approach. Ensure they don’t undervalue skills and understand how to evaluate candidates based on them.

Investing in Workforce Development 

Businesses don’t have to rely solely on new workers – there’s plenty of opportunity to upskill and reskill the existing workforce too.

Let's explore how manufacturers can invest in their current workforce to build more adaptable and skilled teams.

AI & Automation Require Continuous Learning

According to an IBM study, executives estimate that 40% of their workforce will need to reskill as a result of implementing AI and automation. 

At such a time, manufacturing workers cannot be left behind — the right investment can turn your current employees into the workforce of the future. 

Creating Comprehensive In-House Training Programs

In-house training programs are especially effective because they are tailored to your company's specific needs and technologies. 

Here's how you can take action:

1. What Skills Do You Need? Start by identifying the skills your workforce currently has and those they'll need in the near future. This analysis will help you focus training efforts where they matter most.
2. Modular Learning Paths: Training modules should ideally allow employees to complete them at their own pace. Given that they’re already working a full-time job, workers might not have much leftover time. Modular training offers flexibility and scope for personalized learning.
3. Hands-On Training: Incorporate practical, hands-on training sessions. If you’re introducing new machinery, for instance, give employees enough time to practice with it in a low-stakes environment.
4. Cross-Training: Encourage employees to learn skills outside their primary roles. This will increase workforce flexibility and open up new career paths within your organization.

Adapting to Advancing Technology

We know that recent tech advancements have been quick – the future might be quicker yet. 

You need to keep an eye on emerging technologies in your sector. For example, AI is now driving robotics and predictive maintenance. 

A Deloitte study found that predictive maintenance can: 

• Reduce the time required to plan maintenance by 20–50%.
• Increase equipment uptime and availability by 10–20%.
• Reduce overall maintenance costs by 5–10%.

Preparing your team for such advancements will give you a competitive edge.

To do so, consider partnering with technology providers themselves. Ask vendors to provide comprehensive training for your employees.

You can also support employees who take the initiative and want to train in new technologies. This can upskill employees while leaving them more satisfied with you as an employer.

Implementing Mentorship Programs

Mentorship programs are a great, inexpensive avenue for knowledge transfer and skill development:

1. Aging Workforce: With a large portion of the manufacturing workforce headed towards retirement, mentorship programs can help them pass their knowledge and expertise onward.
2. Reverse Mentoring: Pair younger, tech-versed employees with experienced workers. Younger employees can trade knowledge of digital skills and new machinery with veterans who have deep industry knowledge.
3. Skill-Specific Mentoring: Match employees who excel in certain skills with those looking to develop in those areas.
4. Leadership Development: Use mentoring to groom high-potential employees for future leadership roles. Prevent such employees from leaving by providing a realistic career path.

Supporting Career Changers

Millions of employees consider changing their careers every year. With the right support, those thinking about or pursuing a career change can become the next members of your manufacturing team:

1. Transferable Skills: Identify how skills from other industries can be applied to manufacturing roles. An individual experienced at working with their hands, for instance, might transition easily to maintenance work.
2. Bridging Programs: Design training programs to quickly bring career changers up to speed on manufacturing-specific knowledge.
3. Internships for Career Changers: Offer adequately paid internships or apprenticeships specifically for older workers looking to transition into manufacturing careers.
4. Highlight Success Stories: Share the stories of employees who have successfully transitioned from other industries to inspire and attract other career changers.

The ROI of Upskilling and Reskilling

Investing in workforce development isn't just good for employees — it's good for business as well. 

Workplaces with strong learning cultures witness 57% more retention. In an industry struggling with retention, this is priceless.

Employees who see a clear path for growth and development are more likely to stay, learn, and prove long-term value.

Investment in human capital is more than worth it!

Making Manufacturing Careers Attractive 

Attracting and retaining top talent requires more than offering a competitive paycheck and benefits. 

You must create an environment where employees can thrive, grow, and find fulfillment. 

Here are a few areas employers must invest in to make careers in manufacturing more attractive. 

Emphasizing Career Growth Opportunities

Today's workforce craves career development. 

According to LinkedIn’s 2024 Workplace Learning report, Gen Z (those born after 1996) wants to grow — even more than other generations.

Here's how the manufacturing industry can showcase career growth potential:

1. Clear Career Pathways: Create and communicate clear paths for advancement within your organization.
2. Skill Development Programs: Offer training programs and explain how employees can acquire new skills and certifications.
3. Personal Learning Budgets: Create an environment where curiosity and growth are celebrated by providing employees with budgets they can use for courses or conferences of their choice.

Showcasing the Innovative Aspects of Modern Manufacturing

To combat the stereotypical image of manufacturing, you need to highlight the changes over the past years. 

Here’s all the good stuff you should be talking about:

• Advanced technology: Modern facilities utilize robotics, AI, 3D printing, and artificial intelligence in daily operations. A recent Deloitte study indicated that 86% of manufacturing executives believe that smart factory solutions will be the primary drivers of competitiveness in the next five years.
• Future-focused work: Manufacturing employees often work on projects that shape future industries, from electric vehicles to sustainable materials.
• Diverse career paths: The sector offers a wide range of roles beyond traditional production jobs, including in mechatronics, cybersecurity, UX design, and IoT specialization.
• Tech integration: Even traditional roles have been transformed or augmented by technology. Maintenance technicians use predictive analytics, while quality control specialists leverage AI and computer vision.
• Continuous innovation: The industry’s constant changes mean young workers will have the chance to work with the latest technologies and solve complex, real-world problems.
• Tangible impact: Manufacturing careers offer the satisfaction of seeing ideas transformed into physical products that can change lives.

Offering Competitive Compensation and Benefits

While not the only factor driving employee satisfaction, compensation still matters. 

According to a Deloitte analysis, employees' average hourly earnings rose by 4% between Q1 FY 2022 and Q1 FY 2023. Notably, the average number of employees quitting also went down by 19% over the same period.

There’s no shortcut to ensuring your job offers are competitive.

1. Regular Market Analysis: Conduct regular salary surveys to ensure your compensation packages remain competitive.
2. Performance-Based Incentives: Implement bonus structures tied to individual and company performance.
3. Unique Benefits: Consider offering benefits that set you apart, such as tuition reimbursement, personal learning budgets, or equity options.

Promoting Work-Life Balance

Work-life balance is becoming more important than ever – especially for the next generation of workers. 

Here's what you must address:

1. Flexible Schedules: Where possible, offer flexible working hours or compressed workweeks. In a recent survey, 46.8% of manufacturing executives claimed their company already offered flexible scheduling to production workers.
2. Wellness Programs: Implement comprehensive wellness initiatives that support physical and mental health.
3. Paid Time Off: Offer generous PTO policies and encourage employees to use their time off.

Implementing Employee Recognition Programs

Recognition can be a powerful yet overlooked motivator. 

This is what you must consider:

1. Peer Recognition: Create spaces for colleagues to recognize each other's contributions.
2. Achievement Milestones: Celebrate work anniversaries, skill certifications, and project completions.

Unmudl Builds Custom Talent Pipelines For Manufacturers 

At Unmudl, we understand manufacturers are grappling with severe talent shortages. That’s why we offer comprehensive solutions through our specialized Skills-to-Jobs® Marketplace platform. 

Unmudl Originals

Unmudl Originals is our custom course development program.

• Partner with Unmudl to create tailored, industry-specific courses that address your unique skill gaps.
• Collaborate with Unmudl's team of instructional designers and your own subject matter experts to develop role-specific skillware.
• We ensure training aligns with job performance outcomes and your company's needs.

Customized Training Solutions

We tailor our courses to align with every requirement you might have.

• Role-Specific Skillware: Develop training that addresses your specific needs, with expectations tied to job performance outcomes.
• Hands-On Labs: Complement online learning with practical, hands-on virtual labs for comprehensive skill development.
• Industry Certifications: Align training with relevant certifications like Smart Automation Certification Alliance (SACA) to validate skills.
• Academic Credit: Courses aligned with college credit hours that allow employees to work towards academic credentials.

Strategic Workforce Development

We don’t just design courses – we’re holistic workforce development partners. 

• Curriculum Design: Create credentialed curricula drawing from Unmudl's vast network of college partners.
• Flexible Deployment: Offer custom courses through place-based, hybrid, and online modalities.
• Integration with Existing Programs: Align training with industry certifications, academic pathways, and employer pipeline development initiatives.

Community College Network

Unmudl already partners with over a dozen colleges for more than 100 courses. 

You can tap into this network for: 

• Local Partnerships: Collaborate with colleges to support your local sites and talent needs.
• Exclusive Events: Join a network of employers and community colleges to discuss upskilling and sourcing qualified candidates.

Build Your Perfect Workforce with Unmudl!

Ready to transform your workforce strategy? 

Partner with Unmudl today and build the skilled team you need to thrive!