The manufacturing industry has undergone immense change as technology has given business owners more options to improve operations. But there’s a catch: the teams that have long been the backbone of manufacturing need new skills training to use these advanced digital tools.
In manufacturing, it’s called the digital-ready vs. legacy-skilled divide. It’s the gap between the workforce trained on old technology and those who are ready to go all-in on the new tools that could improve efficiency and safety. Companies need to get on board with new technology, and legacy-skilled workers need retraining.
The tension is real: 75% of manufacturing executives believe upskilling is essential to meeting industry demands. The problem is set to hit a crunch point in the near term, with 60% of manufacturing companies expecting a significant skills gap in the next five years.
There are strategies you can implement now to meet the challenge of the manufacturing workforce skills gap. Let’s talk about what you can do inside your company and how staffing solutions for manufacturing can help.
Impact of Digital Transformation on Workforce Requirements
The emergence of advanced digital manufacturing has had a big impact on productivity, with companies benefiting from the efficiencies of this new technology. Early indicators also suggested that, despite fears, new manufacturing did not result in fewer jobs. Instead, more jobs were being created.
However, Industry 4.0, also called the Fourth Industrial Revolution, is looking for a new kind of worker. Today’s manufacturing teams need technology skills that were once unheard of in the manufacturing sector. Legacy workers need to learn these skills, and new recruits need a fresh suite of skills. Post-pandemic, there are more jobs than skilled workers to fill them.
Some companies are shifting operations to chase resilience in a rapidly changing economy. GE Aerospace is supporting its supply chain with new U.S.-based manufacturing and an additional 5,000 new workers. Caterpillar is also moving its manufacturing locations to the U.S. and Southeast Asia, while integrating artificial intelligence (AI) and Internet of Things (IoT) technologies to improve efficiencies.
Consequences of the Skills Gap for Manufacturing Industries
The potential for economic losses if the skills gap remains unaddressed is huge: global manufacturing could see $2.5 trillion of lost revenue by 2030.
But the lost revenue is just the result of predictable operational challenges. As companies like GE Aerospace and Caterpillar relocate manufacturing to various regions worldwide, they also need a local workforce with the skills to keep those operations moving. Without digital-ready manufacturing workers, they can’t run optimally. The gamble of relocating to another geographic region might not pay off.
Manufacturers who fail to follow the trends toward upskilling in manufacturing will also have trouble attracting an Industry 4.0 workforce. Recruits with the talent to help companies meet the digital transformation in manufacturing won’t choose a company that still relies on legacy technology. Even if they start work at such a company, they likely won’t stay around without access to reskilling programs as technology continues to advance.
Strategies for Bridging the Workforce Gap
Fortunately for manufacturers, it’s not all doom and gloom. It’s just time to meet the moment with a manufacturing talent strategy built for a new era. Here’s what you can do today:
Implement upskilling and reskilling programs. Developing an Industry 4.0 workforce doesn’t mean replacing all of your people. Start with training the valuable talent you already have on board. Upskilling and reskilling programs can help legacy-skilled workers to become fluent in new processes so they can continue to contribute to the company’s success.
Leverage staffing partnerships to access digital-ready talent. New, specialized talent can be hard to discover on your own. By partnering with manufacturing staffing agencies that know industry needs, you can find the best people to move your company forward. Bridging the skills gap is faster and easier when you’re working with a reputable agency that has talented candidates who seek them out.
Adopt technology solutions to enhance workforce capabilities. Going full scale into Industry 4.0 manufacturing soon won’t be optional. You can start slowly with new technology that will advance your systems and keep you and your team members relevant in the long term.
Role of Staffing Partners in Addressing the Skills Gap
By collaborating with a specialized staffing agency, you have access to a roster of pre-vetted job candidates. People who want to work in Industry 4.0 manufacturing sign up with specialized agencies that have partnerships with these types of employers. That way, you get the best recruits, and they get the best businesses to work for.
Partner with a Specialized Staffing Solution to Modernize Your Workforce
As manufacturing continues to modernize at a rapid rate, companies have an urgent need to address the workforce skills gap. By partnering with a staffing solution that’s tailored to the needs of your business, you can find the right talent for your current and future growth. Snelling can help you start. Connect with a Snelling office near you to learn more about how we can support and advance your team.
