75% of Manufacturing Executives View Labor as Their Top Challenge: How Building an AI-enabled Workforce Training Strategy Boosts Retention and Reduces Attrition
The Concerning Statistics in Manufacturing Labor Highlight a Need for Action
Deloitte’s 2024 Outlook on Manufacturing found that nearly 75% of manufacturing executives view attracting and retaining talent as their top challenge. More concerning statistics show that by 2030, the U.S. manufacturing industry could see 2.1 million positions remain unfilled, stifling growth and disrupting the supply chain. The same report highlights the importance of workforce training strategies as a tool to help combat labor challenges.
The numbers are stark, and the stress is real. How can a growing U.S. manufacturing industry quickly adapt to these labor challenges before they further disrupt operations and fall behind on demand due to a lack of skilled workers to operate advanced production lines? We must start by understanding the root causes of the problem.
The Root Causes of the Manufacturing Labor Challenges
The root causes of labor challenges in the manufacturing sector stem from demographic shifts, technological advancements, and changing workforce preferences from current and incoming workers. As the baby boomer generation retires, a significant portion of experienced workers are leaving the industry and taking their experience with them. The departures are quickly creating a gap that younger generations are hesitant to fill. The reluctance is partly due to outdated perceptions of manufacturing as physically demanding and low-tech, which fails to appeal to younger workers who are more interested in jobs that offer advanced technology and flexible working conditions.
The industry has struggled to shake these stereotypes, making it difficult to attract fresh talent willing to enter and stay in these roles. While rapid advancements in manufacturing technology have intensified the skills gap, digital transformations have injected technology advancements like automation, IoT (Internet of Things), and AI (Artificial Intelligence) into the industry that requires technically proficient workers who are capable of continuous learning and adaptation.
Training programs have not kept pace with these changes, leading to a mismatch between the skills workers possess and the competencies needed. As manufacturing processes become more complex, the lack of adequately trained workers exacerbates the industry’s labor challenges, making it harder for companies to fill critical roles and maintain productivity.
The perfect storm has created major challenges in workforce training that must be addressed to combat labor shortages, digitize tribal knowledge, and attract, train, and retain a new generation of laborers who are excited to work in manufacturing.
How Manufacturers Can Replenish Labor Pools
Traditional training methods are no longer sufficient. The era of thick manuals, PDFs, and occasional classroom or factory floor sessions is giving way to hands-on, real-time training that aligns with how younger employees have acquired knowledge. Modern smart factories need tech-savvy operators who can utilize technology to quickly grasp and implement knowledge in advanced settings.
How can manufacturers rebuild their workforce and equip the next generation with the necessary skills?
The answer lies in modernizing training approaches, particularly through emerging connected worker technologies like digital work instructions with practical AI incorporated across the solution. AI-enabled digital work instruction software solutions are crucial for knowledge capture and attracting a new generation of digitally inclined workers that you can efficiently train and close skill gaps.
Digital work instructions are a connected talent solution that can bring AI-driven data insights, instructions, feedback loops, and interactive training to frontline workers via digital and mobile technology systems. A digital approach goes beyond traditional methods, helping to ensure that training is easily accessible when and where it’s needed.
Digital Work Instructions Connect Workers through Standardized Frontline Training Procedures
Digitizing tribal knowledge into a connected worker solution often hinges on capturing the expertise of seasoned employees whose invaluable knowledge and experience are frequently locked away in their minds or personal documents. Unlocking this expertise has become one of the largest challenges as more workers retire. Without immediate action, you are at potential risk of being lost through Attrition and never passed down effectively. AI can be a great tool that speeds up the process by using data extraction functions to quickly extract work instructions from manuals and other forms of documentation into your new software solution.
Implementing digital work instructions also plays a crucial role in tracking and retaining new employees. By providing a clear digital frontline training roadmap for new hires, you accelerate their learning curve, boosting confidence and productivity. The right solution utilizes AI to help track employee progress and identify areas where additional support or training might be needed while continuously optimizing processes.
A data-driven approach ensures that new employees feel valued and supported, which increases their engagement and likelihood of staying with the company. Utilizing feedback loops, new employees contribute to process improvements and begin to feel a sense of ownership and involvement that fosters a stronger connection to the organization. At the same time, the digital solution can allow experienced workers to focus on higher-value tasks, boosting their productivity.
Combat Your Labor Challenges with CDS Mentor for AI-Enabled Digital Work Instructions
CDS Mentor for AI-enabled digital work instructions delivers a connected worker experience that is a complete game-changer for workforce training strategies. By capturing and codifying the expertise and processes, you’re not just preserving knowledge but transforming it into a valuable training asset that can help you attract, train, and upskill employees at scale.
