The manufacturing sector is on the brink of a significant labor shortage. If current trends persist, nearly 2 million roles are expected to go unfilled by 2028. Amid this talent crunch, manufacturers face a trifecta of workforce challenges: attracting skilled talent, retaining experienced workers, and addressing widening skills gaps.
Today’s manufacturing jobs are more demanding than they used to be, requiring a unique blend of specialized skills and cross-functional knowledge across areas like electrical engineering, supply chain and budgeting. Moreover, these roles now demand seamless collaboration across departments. With an aging workforce, transferring valuable knowledge to new employees is becoming increasingly critical to sustaining business operations and equipping the next generation for success.
Upskilling offers a path forward. By equipping employees with the skills needed to thrive in modern manufacturing roles, companies can address worsening workforce shortages while fostering innovation and growth.
Understanding the problem
Talent issues account for half of the industry’s workforce challenges. While automation and digitization technologies are boosting efficiency, they’re also raising the demand for specialized skills to operate and maintain these systems. Meanwhile, younger generations show limited interest in manufacturing careers and 51% of manufacturing jobs are now held by employees aged 45 or older.
This aging workforce poses two key challenges: the immediate need for knowledge transfer to younger employees and a growing reliance on experienced workers who are nearing retirement. Without proactive measures, manufacturers risk losing institutional expertise critical to operations.
Additionally, manufacturing’s image as physically demanding and rooted in outdated or hazardous practices still lingers. While reshaping these perceptions is a long-term goal, manufacturers need strategic, actionable strategies to address current workforce gaps.
Upskilling as the solution
Upskilling offers a strategic approach to address the workforce challenges threatening the manufacturing industry’s future.
Consider: tailored education programs that align with business objectives can give manufacturers an effective way to close skill gaps. These programs go beyond traditional training by incorporating real-world relevance and measurable outcomes. For example, an automotive company transitioning to electric vehicles could offer supplemental education programs in battery technology, electrical engineering and sustainable supply chain management. These initiatives would empower employees with the specialized knowledge needed to support advanced manufacturing techniques and to address the logistical challenges of sourcing and distributing new materials. By offering learning experiences that are directly tied to specific roles and industry needs, manufacturers can ensure that their employees gain the skills required to thrive in increasingly complex environments.
Modern upskilling programs can empower employees at all stages of their careers. Entry-level workers can gain foundational technical skills, while experienced employees can transition into leadership or specialized roles. Taking this approach fosters a culture of innovation and growth, both driving retention and unlocking the potential of all workers.
Finally, prioritizing upskilling positions manufacturers as employers of choice. Today’s workforce values professional development opportunities, and organizations that offer clear pathways for career advancement are more likely to attract and retain top talent. A recent InStride study found that employees likely to stay due to employer-funded education rose from 16% to 23% in five years — a competitive edge that cannot be overlooked.
Best practices for upskilling success
Traditional upskilling in manufacturing has often relied on mentoring, where less experienced workers shadow seasoned employees. While valuable, this approach can be inconsistent, difficult to track and measure, and less effective in addressing today’s specialized roles.
To truly prepare workers for the demands of modern manufacturing, upskilling initiatives should embrace tailored approaches that address specific workforce needs and provide measurable outcomes. This training should be flexible and accessible, removing financial barriers by providing upfront tuition and accommodating employees’ schedules by being available online. This level of flexibility and access ensures employees of all backgrounds can develop new skills without disrupting their work responsibilities.
Contextualized learning is another critical component. Training programs designed for specific roles or contexts allow employees to apply their knowledge in the real world immediately. For instance, maintenance workers trained in problem-solving and communication, alongside daily equipment training, can improve both operational efficiency and customer service. Alongside this, cohort-based learning fosters collaboration and enhances knowledge retention by bringing employees together in structured learning environments. These shared experiences build camaraderie and strengthen team dynamics, promoting a culture of innovation and continuous improvement.
By integrating these best practices, manufacturers can develop upskilling programs that both close skills gaps and create a more engaged, loyal and future-ready workforce. These strategies provide a foundation for long-term growth and competitiveness in an increasingly complex industry.
The way forward
The path to resolving the labor challenges in manufacturing lies in a commitment to workforce development. Given the impending talent crunch, manufacturers must adopt strategies that prioritize upskilling to meet the demands of modern roles.
While the costs of designing and deploying a company-wide or targeted upskilling initiative can be significant, they pale in comparison to the far greater costs of employee turnover, production delays and the inability to innovate and respond to new market opportunities. In other words, upskilling is more than an operational fix — it’s a strategic necessity.
By embracing upskilling, empowering employees at all levels and building a culture of continuous learning, manufacturers can address today’s workforce challenges while positioning themselves to capitalize on future advancements. Acting now will help fill critical skill gaps and secure their place as leaders in the next era of manufacturing.
Opinions expressed by SmartBrief contributors are their own.
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