eBook

Manufacturing’s Labor Gap and the Future of Work

A new generation of smart connected worker tools are allowing companies to deliver effective skills management, training, collaboration, and on the job support for today’s more dynamic, more flexible workforce.

manufacturing labor gap and the future of work

There is an accelerating workforce crisis that is disrupting the entire manufacturing industry. The sector that was already stressed with a tight labor market, rapidly retiring baby-boomer generation, and the growing skills gap is now facing an increasingly unpredictable and diverse workforce.

The Labor Struggle is Real

Behind labor issues, employee absence, turnover, and quality issues are increasingly hitting manufacturers’ bottom lines. According to an April 2022 report by the Workforce Institute at UKG, nearly every manufacturer surveyed said that labor shortages impacted their ability to meet production demands, with most describing impacts as “severe”.

The reality is that this problem is not going away. According to a recent study by Deloitte, 77% of surveyed manufacturers say they will have ongoing difficulties in attracting and retaining workers beyond 2022.

The Great Resignation and the Labor Shortage in manufacturing has created a permanent shift, and manufacturers must begin to think about adapting their hiring, onboarding, and training processes to support a more flexible, future workforce in manufacturing.