How to Address the Growing Talent Gap in Global Manufacturing

By 2030, manufacturers are projected to require just under four million job openings to fill the talent pipeline, half of which could go unfilled if they cannot motivate more people to pursue manufacturing careers. This includes filling “middle-skill” workers who require technical training to perform specific skills, such as maintenance technicians, welders, and CNC machinists. 

At many companies, a talent gap results from poor strategies for acquiring talent because recruitment is a low-priority Human Resources initiative. Companies need to elevate recruiting to an essential value-added element of the business. 

Current hiring strategies in the supply chain sector by both large and small organizations are lacking in several areas, which affect how prospective employees perceive their brand. The organization often needs to update how it hires and retains talent. 

3 Ways to Address Talent Shortages in Global Manufacturing 

Providing the company’s workforce with opportunities to upskill and reskill is an important strategy for addressing a talent shortage. This requires companies to invest in comprehensive training programs that equip their employees with the latest skills and technologies relevant to their evolving needs. 

Pursuing higher education is another way to address the current engineering talent shortage. For example, shifting away from requiring candidates to have a degree from a four-year academic and towards certificates that focus on specific technologies. Certificate awards had over four times the growth rate compared to manufacturing-related programs between 2011 and 2022.

Ultimately, colleges and universities must make engineering and manufacturing degrees more accessible to ensure incoming professionals and the teaching staff are trained in the necessary skills. 

Here are three ways manufacturers can address today’s talent shortage: 

1) Focus on Technical Roles 

Identify the most technical roles in the organization and lower the barrier to entry. For instance, instead of requiring an EE degree, focus on performance in the primary academic courses essential for the job. 

In some cases, organizations create hyper-detailed job postings requiring almost impossible prerequisites. As a result, potential candidates move on without any expectation of qualifying. Their skills are often transferable to the supply chain function, encouraging applicants to explore opportunities beyond their core skills.

Provide current technology employees and new recruits with cross-training to expand their capabilities and prepare them for transition into new and higher positions. 

Companies must think beyond the core technology training necessary to do the job. They need to establish relationships with community educational institutions, which are important sources for training and recruiting workers.

Mentorships are also valuable. In one study, three-quarters of the contributors thought mentors were important in manufacturing, but less than 40% had them.

2) Review and Update Internal Strategies

As the saying goes, change comes from within. A shift in any company’s hiring process should begin by examining its methods for cultivating talent. Just as important is the effort companies make to retain their top performers. 

A recent DHL study found that only 1-in-4 supply chain professionals feel their organization places as much importance on their department as other aspects of the business. The result is employees do not take pride in their roles. They fear budget cuts and the lack of digital adoption. 

A culture that attracts talent requires management to examine how the company’s supply chain is treated. Increasing compensation, allowing more flexibility, and providing more benefits all elevate the value that management places on the supply chain.

Another tactic is creating an internal leadership development program for new and existing hires. This addition provides an opportunity for professional growth and is a powerful motivator across the entire department, demonstrating that management takes staff education and advancement seriously.

3) Evolve the Workplace 

According to a study by Deloitte and The Manufacturing Institute, the US manufacturing skills gap could result in over two million unfilled jobs by 2030. The cost of those missing jobs could total $1 trillion in 2030 alone. 

Another Deloitte survey indicated that 80% of manufacturing executives believe smart factory solutions will be the primary driver of competitiveness in the next five years. 

Evolving the workplace begins by embracing new technologies and solutions that help accelerate digital transformation and maturity. Attracting talent requires offering access to the latest technology, intelligence, and insights so new employees can perform their tasks efficiently. 

Over to You 

Talent shortages in global electronics cannot be ignored. They require a multi-faceted approach that incorporates both internal and external strategies. A large part of attracting and retaining talent comes from the technology that organizations provide to their teams. 

When teams are empowered to perform at the highest level, they take pride in their work and find fulfillment in their career. Supplyframe’s DSI intelligence enables teams to make faster, smarter decisions across the product lifecycle. 

As a Siemens company, our intelligence has also been integrated into platforms like Teamcenter and Xpedition. To learn more, visit Supplyframe.com today!