Taking charge: Manufacturers support growth with active workforce strategies

Workforce issues remain a leading concern for manufacturers: A skills gap and an applicant gap

Alongside this potential growth, the 2024 Deloitte and The Manufacturing Institute Talent Study identified another trend: There is not just a skills gap, but notably a gap in applicants for open positions in manufacturing. Three important themes, in particular, stood out in the study:

1. Industry growth is driving the need for more workers of every type—from entry-level associates to skilled production workers to engineers.
2. Skill requirements are evolving and are spread between technical manufacturing skills, digital skills, and soft skills.
3. There is a shortage of potential candidates applying for positions—whether skilled or unskilled—and manufacturers need to retain the valuable talent they have.

Attracting and retaining talent is the primary business challenge indicated by over 65% of respondents in the National Association of Manufacturers’ (NAM) outlook survey for the first quarter of 2024.⁸ Workforce challenges have also been the top concern for manufacturers surveyed by NAM since the fourth quarter of 2017, with the exception of the pandemic.⁹ This timing coincides with the first instance when total job openings in the United States exceeded the number of unemployed Americans.¹⁰ This phenomenon is partly due to longer-term economic factors, such as the declining population growth rate and the decreasing labor force participation rate, which has trended lower on demographic factors, including increased retirements.¹¹ In addition, even though December 2023 quit-rate data suggests some improvement as they approach pre-pandemic levels, employee turnover rates remain elevated,¹² posing a challenge for manufacturers. This could be partly attributable to the increased caretaking responsibilities many Americans of working age are facing since the pandemic,¹³ and also to the higher numbers of millennials and Generation Z workers joining the workforce,¹⁴ who bring a different set of expectations.¹⁵

Even with some recent cooling, the labor market remains tight, and the resulting applicant gap may continue. This could impact the ability of manufacturers to fully capitalize on this recent growth in public and private investment. The net need for new employees in manufacturing could be around 3.8 million between 2024 and 2033. And, around half of these open jobs (1.9 million) could remain unfilled if manufacturers are not able to address the skills gap and the applicant gap¹⁶ (figure 2).

Evolving skill requirements complicate the search for talent

This potential growth in the manufacturing sector appears to be creating demand for more employees across the board, even amid a historically tight labor market.¹⁷ Moreover, the growth in construction jobs fostered by policy incentives may intensify competition for welders, electricians, and other trades, which could exacerbate the imbalance in labor supply and demand in manufacturing. Further complicating the picture is the evolving landscape of skill requirements and the rearchitecting of roles that is likely to be required as manufacturers continue their journey toward the smart factory and Industry 4.0.   

Evolving skill sets in manufacturing

The World Economic Forum’s 2023 Future of Jobs report highlights that 40% of the current skill requirements in advanced manufacturing will evolve over the next five years.¹⁸ Manufacturers are prioritizing the development of these top three skills over the next five years: leadership skills, digital skills, and soft skills.¹⁹

To better understand the growing breadth of evolving skills that manufacturers are seeking, we analyzed the past five years of job posting data.²⁰ The research found a 75% increase in demand for simulation and simulation software skills, sought mostly for technology-enabled production or testing roles (figure 3). Customer service and client support skills showed significant upticks in demand as well, and this trend is likely to continue as manufacturers increase digital interactions with customers and expand their aftermarket services. The growing focus on employee relations skills has likely resulted from manufacturers’ efforts to develop a worker-friendly environment and a dedication to hiring from more diverse talent pools.²¹ Manufacturing-specific skills, including those related to advanced processes like 3D printing, as well as cloud-based enterprise resource planning (ERP) solutions, have also experienced gains. The growth in demand for soft skills like critical thinking, problem-solving, and creativity tend to underpin many of the other skills that have shown the greatest gains, like customer service, simulation, and manufacturing processes.

More manufacturing workers are likely to be needed for higher-skill roles

According to occupation data from the US Bureau of Labor Statistics (BLS), some of the fastest growing manufacturing occupations projected until 2032²⁴ tend to be well-aligned with the skills in highest demand over the last five years. As operations and products become more complex and manufacturers look to integrate the information collected from their smart connected devices, equipment, and systems, highly skilled roles could grow the fastest between 2022 and 2032.²⁵

Industrial machinery maintenance technicians comprised over 270,000 employees in manufacturing in 2022 and these roles could grow as much as 16% by 2032.²⁶ Mechanical and industrial engineers combined to make nearly 370,000 employees in the sector and these occupations are each likely to expand by almost 11% over the same period.²⁷ Together, software and web developers, computer and information systems managers, and computer and information analysts constituted close to 243,000 manufacturing employees in 2022, and combined, they  could increase by nearly 13% by 2032.²⁸ Although statisticians and data scientists currently make up a small portion of manufacturing employment (7,500), these roles may grow by close to 30% by 2032.²⁹

Traditional production roles are likely to also continue to be important. According to BLS data, production-related occupations currently employ the largest number of people in the sector, and BLS also projects this to be the case in 2032.³⁰ However, the fastest growing production roles are likely to be those that require higher-level skill sets, such as semiconductor-processing technicians, machinists, first-line supervisors, welders, and electronics and electromechanical assemblers.³¹ Gains are also likely for material-moving occupations such as laborers and material movers and industrial truck and tractor operators.³²

Educational trends suggest a gap

Graduation data from the National Center for Education Statistics suggests that traditional training methods may not be able to keep up. While the number of bachelor’s degrees awarded in all fields of study from 2011 to 2022 has increased, the number of associate degrees—which tend to prepare graduates for high-skill trades—has remained stagnant (figure 4). The number of certificates awarded, which can offer foundational training for skilled trades, has experienced a moderate increase over the same period, and a significant jump from 2021 to 2022, even surpassing the number of associate degrees awarded.   

For degree programs most relevant to manufacturing, there has been a substantial increase in graduates from programs such as computer and information sciences and engineering (figure 5) that typically require a bachelor’s degree. There has also been growth in mechanic and repair technologies degrees, as well as precision production, fueled in large part, it appears, by substantial post-pandemic upticks from 2021 to 2022. However, growth has been slow in the remaining programs that prepare graduates for higher skilled roles like engineering technologists and skilled transportation and material moving positions. Our analysis also found that the average growth in certificates awarded was more than four times the growth in associate degrees for manufacturing-related programs over 2011 to 2022.

While this trend could help to grow a talent pool with the foundational knowledge companies can continue to build upon once workers are hired, it also suggests there may be a need to produce more highly skilled graduates with associate degrees. In general, if the number of people entering and graduating from degree programs that prepare them for high-skill manufacturing trades does not accelerate, the talent gap could widen.

Some manufacturers are taking an active role—and the lead—in addressing talent challenges

The key question becomes: Given the talent challenges, how can manufacturers build the workforce needed to seize the growth opportunity at hand? Our study found that there is a shift underway in the sector and, in general, companies are currently taking a more active approach to addressing both the skills gap and the applicant gap. Manufacturers seem to be focusing on investing in partnerships—and the worker pipeline and the work environment—to help create the workforce they need with the requisite skill sets and improve employee retention. Our study found that the following three approaches, when used in combination, are helping some manufacturers in overcoming the talent challenges they face:  

1. Understanding changing workforce expectations
2. Applying a “customer focus” to workforce challenges to create a leading worker experience
3. Taking an ecosystem approach to attract and upskill talent

Changing workforce expectations affect hiring and retention

As more baby boomers and Generation X workers move closer to or into retirement, the workforce may be made up more of millennials and Generation Z workers, who can have a different set of expectations when it comes to work culture and the working environment itself. In one recent survey, those respondents were found to be more prone to job switching, which can impact attraction and retention.³³ Generally, surveyed executives from our study reported that higher levels of flexibility, including remote-work options, seem to be among the most impactful strategies to attract and retain employees (figure 6), which can also be challenging with fixed work schedules and traditional in-person production team settings often seen in manufacturing.³⁴

Providing the flexibility that workers want

Nearly half (47%) of respondents in our study indicated that flexible work arrangements (for example, flexible shifts, shift swapping, split shifts) is the strategy that their company has found to be most impactful for retaining employees (figure 6). Flexible work was second only to competitive employee benefit programs. 

Some companies have piloted or implemented child care programs and have observed significant benefits. An executive from a distribution and logistics service provider told us that a pilot child care program run by an external organization was established adjacent to a warehouse and it was utilized by close to 80% of employees, who paid for the care. The executive reported a fourfold improvement in the turnover of this facility.⁴⁰

An executive from an electric products manufacturer shared that the company developed a two-day per week part-time position that offers tuition assistance and pay without benefits that initially targeted university students.⁴¹ The executive added that once the program was off the ground, “to our surprise, there were a lot of stay-at-home parents that wanted that—they came out of the woodwork to have a two-day workweek.” They now have close to 400 employees in the successful program with good attendance and retention rates.

Some manufacturers are partnering with innovative temp agencies to provide the workforce and skills they need while providing workers the flexibility that they are looking for. Leveraging digital tools and apps, some temp agencies can provide part-time workers, including the semi-retired, college students, and caregivers, the opportunity to sign up for work slots and overtime, while providing the flexibility to cancel or swap shifts, with vacated spots being backfilled with another worker, with the help of AI tools.⁴²

Taking a bigger role in skills development to attract and retain employees

The applicant gap seems to be prompting more employers to focus on training as a means to attract and retain employees. According to Deloitte’s Workforce Experience research, employees who feel they can acquire necessary skills that are important for the future are 2.7 times less likely to leave their organization in the next 12 months.⁴³ Changing skill requirements have prompted some companies to employ a “skills-based” approach that focuses on employees’ abilities and competencies rather than their job titles or formal qualifications, better aligning workers with work that fits their skills and capabilities (figure 7).

Manufacturers seem to recognize the value of upskilling and are using a variety of strategies to train employees, irrespective of role or function, to create an agile workforce. Internal training academies or programs were highlighted as instrumental in helping employees adapt to new technologies and processes.

Many companies are also leveraging e-learning platforms to facilitate flexible and self-paced learning opportunities and are sponsoring industry workshops, conferences, and seminars to help ensure employees are apprised of industry trends and leading practices. Some employers are conducting regular skills assessments of employees to track progress and refine training programs to meet evolving needs.

Mentoring, knowledge transfer, and rotational programs for new hires are gaining traction among manufacturers and are intended to enrich employees’ experiences while helping to ensure well-rounded skill development. Such programs can encourage employees to gain experience across departments, which helps enable a versatile workforce.

Providing additional support that employees seek

There is growing recognition that many job seekers need support services to help them meet the requirements of a full-time job, and these can range from help with the daily commute to finding affordable housing close to their job.⁴⁵ Reliable transportation to complete a daily commute can be a challenge for some employees, especially in rural areas with limited or no public transit.⁴⁶ An executive from an electric products manufacturing company mentioned that “[reliable] transportation was the number one reason people were leaving our roles.”⁴⁷ The company partnered with a transportation service provider to offer subsidized rides to employees to and from work.⁴⁸ An automotive manufacturer in a rural area is collaborating with other companies and city and county government to investigate the local obstacles to transportation and devise pilot programs to improve transportation in the area.⁴⁹

Finding affordable housing is also a challenge for some employees, especially given that the median home price in the United States increased by 37% between January 2019 and November 2023 and the average rental price in US cities rose by 26% over the same period.⁵⁰ Our interviews emphasized some manufacturers are working with a state or local government to investigate and develop affordable workforce housing options and opportunities.⁵¹

Applying customer focus to create a leading workforce experience

Creating and improving products and processes is the core of what manufacturers do. They use a variety of strategies and frameworks to accomplish these objectives, such as “define, measure, analyze, improve, and control” (DMAIC)⁵² and Design Thinking.⁵³ This focus on what the customer needs could be applied to creating innovative workforce solutions, especially when the optimal worker experience is a guiding principle. One executive emphasized that empowering talent organizations to be innovative is important, as “challenging them to be entrepreneurs and find new disruptive ways of doing things can bring great ideas.”

Another executive said, “We want our customers to be first. We want our employees to be first. We want to meet them where they are, which means we adjust how we do things.” According to a study on the American workplace, employees in the manufacturing industry seem to be less engaged when compared to other industries.⁵⁴ Actively disengaged employees are almost twice as likely to seek new jobs than engaged employees.⁵⁵

Creating a sense of purpose

According to The Deloitte Global 2022 Gen Z and Millennial survey, nearly 40% of millennials and Gen Zs have turned down a job because it didn’t match their values. On the other hand, respondents who are happy with their company’s impact on society and the environment are more likely to stay with the company for over five years.⁵⁶ Executive interviews indicated that providing a sense of purpose, emphasizing the importance of culture, and establishing clear leadership can provide motivation and help drive performance. 

In particular, multiple executives highlighted that centering at least part of their mission statement on green products and projects and their benefit to the planet has helped them to attract and retain talent. An executive from a household electronics manufacturer expressed it this way: “This population cares about the planet and they want companies who are responsible in the way they manage their company. Sustainability is a very key part of what we do in our business—it’s important to our associates and it’s important to our customers.”⁵⁸

Promoting a work environment focused on health, safety, and comfort

Several executives that we interviewed indicated that creating a comfortable working environment was important not only for attracting new talent but could also make the difference between keeping or losing employees to a competitor. As one executive summed it up, “We have to provide ways for people to feel safe and comfortable when they come to work. It's really important that employees feel like their companies care about them—that they see them—and that they believe that their employees’ health and well-being are important.” And the needed improvements can be as intuitive as better lighting in the parking lot or improving the cafeteria.

One executive indicated that before acquiring and completely renovating a 50-year-old manufacturing facility, their company surveyed employees to determine what was most important to them in a working environment. Improved lighting, including natural light, and air quality were at the top of workers’ lists, and the renovated smart factory design was based on the feedback received.⁵⁹

Technology can help engage and empower workers—and make their jobs better, safer, and easier

Technology plays an important role in shaping the future of workforce development. It can act as a magnet in both attracting and retaining skilled individuals. As gleaned from our interviews, high-tech manufacturing environments seem to appeal to the workforce. Manufacturers that have built smart factories to enhance performance are also noting higher retention in these high-tech facilities.⁶⁰

Deloitte Global’s Millennials and Gen Z Study highlights that more than one-third of surveyed millennials and Gen Zs believe that AI and other technologies can augment jobs or various job functions over the next decade.⁶¹ In another recent study, over half of the surveyed workforce believe it is important for manufacturers to focus on the consistent availability of technology to attract more people, whereas only 31% of manufacturing executives agreed to prioritize technology to attract employees.⁶²

Enhanced employee engagement can be achieved by integrating technology into manufacturing processes. Digital tools including AI, generative AI, and automation can be used to augment mental and physical human capabilities to optimize production, make jobs easier, and provide autonomy by giving operators new channels to report production issues, which can enable efficient triage and rapid problem resolution. The integration of technology has also helped to revolutionize upskilling in the industry. Most companies we interviewed are exploring the potential of augmented or virtual reality (AR or VR) for comprehensive training, potentially allowing workers to acquire new skills using these tools. An executive mentioned that VR has reduced training time for welders at the company by 50% to 60%. The flexibility in technology-facilitated trainings can enable individuals to upskill at their convenience, helping to foster a more dynamic and efficient learning environment.

Taking an ecosystem approach to attract and upskill talent 

In its general form, a business ecosystem involves organizations coming together, or partnering, to solve shared problems and meet shared objectives.⁶⁴ Collaboration, co-innovation, and co-evolution are at the heart of what drives an ecosystem.⁶⁵ (An example of a smart factory ecosystem is described in the sidebar titled “The smart manufacturing ecosystem.”)

A talent ecosystem is anchored by regional organizations that can contribute to helping companies attract, upskill, and even retain the workers that they need. It includes traditional organizations that develop talent, such as K-12 institutions, technical colleges, and universities, as well as a wide range of partners beyond education. Similar to the production ecosystem approach to accelerate smart manufacturing practices, a talent ecosystem can help improve innovation in talent strategies by enabling better collaboration among partners who share the common goal of developing and implementing workforce solutions. Figure 9 highlights some of the potential participants and capabilities manufacturers can forge by implementing a talent ecosystem.

The talent ecosystem in action

Many companies have had to move beyond traditional talent approaches and innovate to improve their talent strategies. As one executive says, “We’ve had to break a lot of paradigms and change our mindset to adapt.” But manufacturers are no strangers to breaking paradigms: The industry is the leading sector in the United States for innovation, accounting for 53% of all private-sector research and development.⁶⁶ Increasingly, manufacturers seem to be leveraging this innovation foundation to implement an ecosystem approach and improve worker experience. (An example of a talent ecosystem in action is described in the sidebar titled “Cultivating the future smart factory workforce with an ecosystem approach.”)

Our study corroborates that most manufacturers are establishing ecosystems to help expand their talent pool and develop the requisite skills. Ninety-four percent of surveyed manufacturers indicated that they are forming at least one partnership to improve job attraction and retention.⁶⁷ On average, our study respondents are partnering with four or more organizations to form an ecosystem (figure 10). So, what partnerships are some manufacturers forging and how are they leveraging these to help overcome talent hurdles?

Partnerships to build awareness of manufacturing careers and opportunities 

Manufacturers across the nation open their doors on National Manufacturing Day to provide plant tours to the local community, including students, parents, teachers, and guidance counselors from K-12 schools.⁶⁹ A past Deloitte study has indicated tours of advanced manufacturing facilities for students can be an effective strategy for increasing interest in manufacturing jobs.⁷⁰ Several manufacturing executives indicated that company representatives regularly visit local K-12 schools to talk about the company, careers offered, and the high-tech environment in manufacturing facilities to inspire students to consider manufacturing careers.⁷¹ Several companies have also donated manufacturing equipment to schools to spark interest and support skills development.⁷²

In partnership with an engineering and construction firm and a welding equipment manufacturer, the American Welding Society offers nationwide grants to high school programs that do not currently have welding programs.⁷³ The grant provides a kit with a welding machine and other equipment to give students the opportunity to experience welding—many for the first time—and possibly inspire them to consider a career in the field. In another example, a flooring manufacturer implemented a work-based learning program in partnership with local high schools, which provides flexible and paid work experiences in several departments, as well as opportunities to advance into an apprenticeship program.⁷⁴ The company reported that, in 2023, it achieved 100% retention of graduating seniors and hired over 50 students from the program.⁷⁵

Partnerships to build, leverage, and support training programs

Some manufacturers are finding innovative ways to form partnerships to work with local technical colleges—as well as organizations throughout the talent ecosystem—to build the workforce that they need. Employer-led consortia to create programs that suit shared workforce development needs seem to have become more commonplace. Some consortia are even led by local workforce, government, or economic development agencies to build a workforce with the requisite skills to support a specific manufacturing sector in a region.⁷⁶

Many states have implemented manufacturing career pathways from the National Career Clusters® Framework⁷⁷ to create programs that meet state needs, and an updated framework design is expected in fall 2024.⁷⁸ Strong workforce training programs can be important for attracting new businesses and keeping existing companies within a state.⁷⁹ In Georgia’s QuickStart program, the Technical College System of Georgia partners with manufacturers to establish new facilities or expand in the state to develop and deliver customized training programs to create a skilled workforce ready to begin production.⁸⁰ Since its inception, QuickStart has trained over 1 million workers and companies often cite it as an important factor for choosing to set up new facilities or expand in Georgia.⁸¹ The Virginia Talent Accelerator Program, a partnership between the Virginia Economic Development Partnership and the Virginia Community College System, offers recruitment and training services to greenfield or expanding facilities in the state of Virginia.⁸² The Greater Wichita Partnership worked with Deloitte to develop an action plan to help the region build a workforce for the future. The plan emphasizes the need for collaboration among industry, education, and community stakeholders to drive inclusion, expand the talent pool, invest in skill development, and support innovation. Together, they can provide access to upskilling opportunities focused on high priority skills such as communication, computer literacy, and project management.⁸³

Some manufacturers are partnering with community organizations. For example, a large automotive manufacturer partnered with Goodwill to administer credentialled training programs in local communities focused on developing digital skills, including IT support, and even training auto technicians.⁸⁴ Other companies have partnered with Goodwill to take advantage of the trained talent pool that they offer through the Talent Source program,⁸⁵ or the manufacturing services that they offer, including producing and packaging automotive components, and even manufacturing uniforms for the US military.⁸⁶

Apprenticeships and programs for work study also appear to be on the rise. The number of apprentices in advanced manufacturing occupations increased to 59,500 in fiscal 2023, which is nearly triple the total in fiscal year 2021.⁸⁷ Nearly half (47%) of survey respondents in the 2022 Deloitte and The Manufacturing Institute Perceptions study indicated that apprenticeships, work studies, or internships at manufacturing companies would be the most effective way to increase interest in manufacturing as a career choice.⁸⁸ The Manufacturing Institute’s FAME program is one example that has helped to bolster the pipeline for maintenance technicians (see sidebar titled “FAME: Developing regional pools of maintenance technicians”). The Inflation Reduction Act offers tax credits to companies who hire employees from registered apprenticeship programs, which may increase the demand for apprenticeship programs and help expand training opportunities.⁸⁹

Partnerships that look beyond the traditional talent pipeline

Manufacturers have focused efforts on increasing the size of their talent pool and created a more diverse and inclusive workforce by partnering with a variety of organizations to engage groups that may have unique barriers to entering or re-entering the workforce.

Individuals that were formerly incarcerated who seek a “second chance”

Several manufacturers have established a sense of purpose, given back to their local community, and even improved retention rates by providing work opportunities to applicants that were formerly incarcerated, who are reentering the workforce. A packaging manufacturer reported that almost 70% of its nearly 200-person workforce comprised second-chance individuals—and the company’s attrition rate is 25 percentage points lower than the sector average.⁹⁴ In a recent study, 82% of managers reported that second-chance individuals may add even more value to their companies than those not part of the program.⁹⁵ Through the Workforce Opportunity Tax Credit, companies can also receive up to US$2,400 per employee.⁹⁶ However, people that were formerly incarcerated may face unique challenges related to transportation, housing, and job flexibility. Partnerships with local organizations can be essential for providing this support in cases where manufacturers don’t have the expertise or resources in house (see sidebar titled “Resources supporting job-seekers that were formerly incarcerated”).

Refugees and immigrants

Some companies have partnered with local organizations and resettlement groups to access a diverse talent pool of refugees and immigrant populations. A furniture manufacturer began hiring refugees nearly four decades ago and today they make up nearly half of the company’s workforce.¹⁰⁰ Not only does it help to fill a need for workers, but it can also provide a sense of purpose as the company and workforce help community members. An executive from a large manufacturing company stated that new partnerships were needed to implement a similar program, but the benefits have been well worth it.¹⁰¹ While a majority of companies that have implemented refugee hiring programs report higher retention rates and lower turnover, there are unique challenges to overcome, including language and cultural barriers.¹⁰²

Veterans

According to the study, nearly one-third of surveyed manufacturers are partnering with organizations that support veterans. Their military experience often instills technical, leadership, and communication skills that are important for success in a manufacturing environment.¹⁰⁴ But transitioning into a civilian workplace is not without its challenges.¹⁰⁵ It can be difficult for veterans to communicate how the skills, traits, and work habits developed in the military align with those listed on job requisitions. Partner organizations that support veterans, and programs like The Manufacturing Institute’s Heroes MAKE America,¹⁰⁶ can help manufacturers make these connections, provide veterans with access to manufacturing-specific training and certification, and help companies establish a pool of veteran candidates.¹⁰⁷

Workplace accommodations

Some people have unique abilities that can make them a good fit for certain manufacturing roles—including skilled production jobs like computer numerical control machine operators—that are generally difficult for manufacturers to fill.¹⁰⁸ There may be individuals with remarkable intellectual and visual abilities, as well as a high propensity to learn, who may also be neurodiverse and require additional accommodations in the workplace.¹⁰⁹ An automotive aftermarket parts supplier and a large heavy equipment manufacturer have formed innovative partnerships with organizations in their communities, which specialize in working with and training people with disabilities for the workforce.¹¹⁰ These partnerships have led to the partner organization providing contract manufacturing services, as well as direct hiring of employees by the manufacturer. Moreover, individuals with physical limitations may be able to pursue additional employment opportunities with the advancement of digital technologies and robotics, as their qualifications and certifications could still enable them to engage in remote control monitoring of robotics, for example. The potential pool of talent is significant. Over 33 million working-age Americans were identified as having a disability in 2023—only 7.5 million are currently employed, and only 9.1% are employed in manufacturing.¹¹¹

A dedicated focus on the talent development team

It can take dedicated effort, and perhaps additional resources, including staff members with additional experience and skill sets, for talent organizations to take an ecosystem approach and focus on the many aspects of worker experience. An individual or group within the company should be responsible for getting out into the community and building relationships with the full spectrum of organizations within the ecosystem. Professionals with an economic development, business development, or sales background may be particularly well-suited for this role. On the other hand, experience performing research and analysis may be most helpful for benchmarking and comparing existing innovative talent programs. Partnering closely with plant managers, front-line supervisors, and other production leaders to offer training and support when implementing new and innovative talent programs may be necessary. Finally, new positions may be needed to support the needs of applicant groups.

Final thoughts: The road ahead 

Manufacturers are taking an active role and applying an innovative mindset to address talent challenges that face the industry. The approaches will likely continue to be needed as manufacturers compete for workers in the current labor market. To help address the skills gap and the applicant gap, companies should consider leveraging an ecosystem approach to attract more workers to the industry and provide them with the skills they need. However, the manufacturing industry is poised for growth in the next decade and the challenge is not just finding and upskilling the people needed to take on the approximately 3.8 million projected possible new jobs, but also retaining them. Workers’ experiences can not only shape their professional journey but can also foster an inclusive and collaborative workplace that can help increase employee retention.