Tariffs and trade wars aren’t the only things keeping manufacturers up at night. An unrelenting labor shortage continues to impact the ability of manufacturers to keep up with rising demand and growing competition. As aging workers reach retirement age, the new generation is simply not there to fill in the gaps. Could it be that manufacturing needs to shed its perceived image and show the world what it’s really made of?
While today’s new generation may see manufacturing as their grandfather’s profession, what they don’t realize is that today’s modern factories are becoming a breeding ground for some of the most advanced technologies, global collaboration and the backbone of the world economy. Manufacturing needs to shed its false image of a sector stuck in the past, reinforced with a belt and suspenders and a lunch pail for the noon-time meal. It needs to ditch the Clark Kent past and don the cape of a technology-driven smart-factory powerhouse.
Because the fact of the matter is, the labor shortage can only be expected to get worse as companies bring manufacturing work onshore. In fact, 70% of manufacturers who responded to the ETQ Pulse of Quality in Manufacturing survey said that their organizations are impacted by a labor shortage, with 88% revealing that the labor shortage has had an impact on the quality of their products or services.
In line with our findings, last year The Manufacturing Institute and Deloitte surveyed more than 200 manufacturing companies and found that more than 65% of the firms said recruiting and retaining workers was their primary business challenge. And, data from the Bureau of Labor Statistics found that there are nearly half a million open manufacturing jobs right now.
Reasons for the labor shortage include an aging workforce, declining birth rates and what McKinsey is calling an “era of youth scarcity.”
Baby Boomers, many of whom have proudly held manufacturing positions for decades, are now reaching retirement age. As they exit the labor force, they leave behind a skills gap that younger generations are not filling fast enough. Back in the day, many of those baby boomers took jobs at the local industrial plant straight out of high school or college, and through hard work and multiple shifts, made their way up the ranks, refining and mastering all that it takes to get a quality product out the door swiftly and efficiently. These professionals hold a lifetime of manufacturing and logistics knowledge vital to the continued development and flow of goods.
While there is still time for them to transfer this knowledge to a new generation, the problem is that the new generation is hard to come by. Whether lured by what they view as sexier professions or more lucrative positions, today’s younger workforce is opting out.
Best-in-class manufacturers recognize the vital role that quality management systems, AI, robots, data analytics, workflow automation and connected devices play in the data-driven, technologically advanced generation and they’re continuing to invest in these solutions to make their operations even smarter.
But they also realize that it’s not only about the new technology-driven super powers. Humanity also plays a role in the new generation of manufacturing. Empowering the plant workforce means giving actual human workers access to the data to make better decisions, and connecting them to other parts of the enterprise for more collective intelligence. It also means giving them access to continuous training and certifications that allow them to remain safe on the job, learn new skills and take proud ownership of the future of their profession. Automation may help address the labor shortage to a certain degree but without man/machine collaboration (think ‘cobots’) innovation could be lost.
Bringing about renewed interest in manufacturing roles also requires collaboration between governments, manufacturers and educational institutions, designing programs that offer technical training, apprenticeships and certifications aligned with industry needs. For example, initiatives, such as the Manufacturing Extension Partnerships (MEPs) provide comprehensive, hands-on consulting and training solutions tailored to a manufacturer’s unique challenges.
In addition, employers can attract more seasoned workers to fill the gaps by offering flexible work arrangements that leverage their valuable experience. Often, by focusing on skills rather than credentials manufacturers can shape career pathways, helping workers gain new or cross-functional skills and enabling internal mobility.
By investing in people, modernizing perceptions and embracing technology-driven innovation, the manufacturing sector can secure a skilled workforce ready to meet the challenges of the new era in smart manufacturing. Manufacturing has always been a superhero in disguise, building autonomous vehicles, advanced aircraft, consumer goods, medical devices and electronics – and using the power of man and machine to safely deliver them to the world. But the key is keeping up with the change that will drive a new generation willing to don the cape.
