The manufacturing sector is grappling with a severe labor shortage, and with nearly two million jobs potentially remaining unfilled by 2030, many businesses are looking to adapt their practices to attract and retain employees effectively. In this article, we explore several strategies for overcoming the labor gap, focusing on remote work options, flexible schedules, and automation solutions that can help bridge the workforce gap. Each strategy is backed by data and insights to provide practical guidance for manufacturers facing similar challenges.
The current labor shortage in manufacturing is significant and costly. According to the National Association of Manufacturers, nearly 2.1 million manufacturing roles could go unfilled in the coming years due to a shortage of skilled workers. This issue is compounded by rapid technology advancements, which have added new skill requirements for many positions. The U.S. Bureau of Labor Statistics reports that job openings in manufacturing have reached record highs, highlighting the urgent need for creative recruitment and retention strategies.
1. Embracing Remote Work Models
While manufacturing has traditionally required on-site work, certain roles, particularly in engineering, design, sales, and quality assurance, have shifted to remote work. Allowing remote work options expands the candidate pool beyond local boundaries and helps retain employees looking for flexibility.
Example Manufacturer Practice: Protolabs, a small-scale manufacturing business with under $500 million in revenue, has implemented remote work options for roles in design and quality assurance. By doing so, they have expanded their hiring pool and improved employee retention by 30%.
Stat Insight: A PwC survey found that 83% of employers believe remote work has benefited their companies, and many plan to maintain remote work options permanently. Remote work also tends to improve employee satisfaction, which is essential in a tight labor market.
2. Implementing Flexible Scheduling
Flexible scheduling is particularly appealing to employees balancing other commitments and is an effective way for manufacturing firms to attract part-time, semi-retired, or gig workers. This approach can provide a steady workforce while also allowing for more personal flexibility.
Example Manufacturer Practice: Lacks Enterprises, a Michigan-based manufacturer with annual revenue under $500 million, offers flexible shift patterns that allow employees to choose among multiple shifts or compressed workweeks. This approach has led to a significant improvement in both recruitment and retention rates.
Stat Insight: According to the Society for Human Resource Management (SHRM), companies offering flexible work schedules see a 29% increase in employee retention. Flexibility is especially appealing to younger employees and those with caregiving responsibilities, making it a critical strategy for reducing turnover.
3. Leveraging Automation and AI Tools
Automation and artificial intelligence (AI) reduce dependence on human labor for repetitive or physically demanding tasks, allowing companies to allocate human resources to higher-value activities such as maintenance, monitoring, and system analysis.
Example Manufacturer Practice: Sundyne, a pump and compressor manufacturer with annual revenue under $500 million, has adopted robotics and AI in its assembly line to streamline production, leading to a 25% productivity boost and reduced reliance on labor-intensive roles.
Stat Insight: According to McKinsey, companies that implement advanced robotics and AI see a productivity increase of 20-30%, which can help offset labor shortages. The World Economic Forum also predicts that while AI and automation may replace certain jobs, they will create new roles that require advanced technical skills, offering higher wages and a more stable career path.
4. Enhancing Workforce Training and Development
Investing in training ensures that current employees can upskill or reskill to fill emerging roles. Programs that offer on-the-job training, along with partnerships with trade schools, allow manufacturers to grow their talent pipeline while enhancing employee loyalty.
Example Manufacturer Practice: Merrick Industries, a Florida-based manufacturer under $500 million in revenue, has partnered with local trade schools to provide apprenticeship programs. This approach helps the company build a steady pipeline of skilled workers while addressing gaps in its current workforce.
Stat Insight: National Skills Coalition data shows that 52% of manufacturing roles require skills training beyond high school, making training programs essential for workforce development.
5. Utilizing Recruitment Technologies and Platforms
Manufacturers are also increasingly adopting digital recruitment platforms and applicant tracking systems (ATS) to streamline hiring. These tools allow companies to fill vacancies faster by matching candidates based on skills and experience and help reduce bias in the hiring process.
Example Manufacturer Practice: Enerfab, a specialty contractor and fabricator with revenue under $500 million, utilizes an AI-driven ATS to identify skill gaps and track candidates more efficiently. This technology has reduced their average time-to-hire by 20% and improved their candidate match rates.
Stat Insight: According to a Gartner survey, 43% of companies report faster hiring processes with AI, while 35% have achieved greater workforce diversity through unbiased candidate assessments.
Conclusion: Preparing for a Resilient Future
With the manufacturing sector facing an ongoing labor shortage, these strategies offer viable solutions for creating a more adaptable and dynamic workforce. Embracing remote work, offering flexible scheduling, and implementing automation technology can collectively help manufacturers attract and retain talent. By proactively adapting to the changing labor landscape, manufacturing companies will be well-positioned to meet future challenges with resilience and agility.
This blog is published by Manufacturing.International as part of our series on Workforce Development. For more on creating a resilient workforce, explore these related articles: