The manufacturing industry is facing a labor shortage—which is expected to have a significant impact on productivity and output for more than 39% of organizations throughout the next five years, according to research by Visual Components. This has been a big concern for many manufacturers for many years. In fact, The Manufacturing Institute suggests 78% of companies have even heightened concerns about this trend, with 75% struggling to fill roles. This is just not fodder for my column every week.
What can be done? A lot. First and foremost, this should be a concern for every manufacturing executive in every company. This is a great time for companies to be working together to offer greater incentives and benefits creating more attractive opportunities to workers. Also, this can mean investing in technology to help heighten the productivity by reskilling and upskilling of the existing workforce.
Ironically, to date, employee upskilling is not even on the priority list for as many as one-in-ten (9%) manufacturers, with only 28% placing it at the very top, according to research by Visual Components. Also, only 63% are only somewhat equipped or not very equipped to reskill and retrain existing employees to address the skills gap.
Tech to the Rescue
Can technology help here with the shortage? The simple answer is yes, but things aren’t always so simple, are they? Visual Components suggests 64% are only somewhat ready or not very ready to adopt and implement new technologies that can improve factory floor efficiencies. Implementing new technologies isn’t an easy feat, but it does offer big benefits.
The reality is technology can help boost efficiency and attract a new generation of workers to an industry that is often considered a laggard. But again, technology is only a tool, not the sole answer to a much bigger problem.
To help, The MESA (Manufacturing Enterprise Solutions Assn. Intl.) is working with Tech-Clarity Inc., on the next iteration of its long-standing Analytics that Matter research program, which will review progress in performance metrics and analytics and explore the value manufacturers and producers can gain from using AI (artificial intelligence).
In addition, the two companies will work together to conduct a survey to understand the goals, challenges, and successes, which will open later this year, and those findings will be available in the first half of 2025. Making Analytics and AI Matter is the continuation of an 18-year MESA initiative focused on uncovering the value of analytics through an online survey of manufacturers and producers worldwide across process, batch, and discrete industries.
Technology can certainly help in several ways. It can help fill in the gaps where the workforce lacks. And it can also help attract a new generation of workers.
What other opportunities do you see? How can we leverage technology in new ways to help alleviate the impact of the worker shortage?
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