Understanding the skills gap in manufacturing
The manufacturing industry is facing a skills gap that limits growth and makes it harder to adapt to change. A skills gap is a mismatch between workers’ skills and those required by their employers. For example, if a manufacturing company wants to integrate AI into its existing processes, it needs workers with AI-related skills.
Younger workers may not be entering the manufacturing sector, and existing workers don’t necessarily have the skills needed to embrace technological innovation and understand shifting global dynamics. This can make it difficult for manufacturers to meet changing market demands.
Being adaptable can help your company recognize industry and technology shifts, making it easier to address the skills gap.
Causes of the skills gap
Many factors contribute to the manufacturing skills gap, but rapid technological change is one of the biggest. Many industry leaders are using these technologies to increase productivity, boost efficiency and minimize waste:
- Automation: Uses software, robotic systems and other technology to perform repetitive tasks. For example, a manufacturer might use robotic arms to move parts through the assembly process.
- Artificial Intelligence (AI): Uses computer systems to perform tasks that typically require human intelligence. For instance, a manufacturer can use AI to predict when a machine is about to break down, making it easier to anticipate repairs.
Internet of Things (IoT): Uses sensors, software and devices to collect data. This makes it easier for manufacturing companies to monitor quality, manage inventory, optimize production schedules and perform other tasks.
Impact on manufacturing companies
A lot of manufacturers are turning to smart operations and data-driven decisions to improve efficiency. The skills gap can make implementing AI, data analytics and IoT components difficult.
Key areas of skill deficiency
Manufacturing workers often report some degree of skills mismatch within the industry. Some employees lack familiarity with new technologies, while others have limited proficiency in advanced manufacturing processes, for example.
Soft skills can also be a concern, especially as they relate to communication, problem-solving and adaptability. As a result, some employers cite a lack of desired skills as one of the biggest obstacles to filling open positions.
Technical skills
For some employers, it’s difficult to find employees with skills in machine maintenance, computer numerical control (CNC) setup and stainless tungsten inert gas (TIG) welding. New hires may also have limited experience with advanced manufacturing systems, which they can use to implement smart operations. Continuous learning programs can help address some of these skill deficiencies.
Soft skills
Employers typically require a combination of technical skills and soft skills for each manufacturing role. Some candidates lack critical-thinking skills and adaptability, resulting in a skills gap.
Addressing workforce development challenges
Business leaders may cite skill gaps and talent shortages as major obstacles. Manufacturing companies are also often deal with drops in labor force participation. Low rates of labor force participation indicate that fewer working-age people are employed or seeking work.
Aging workforce and knowledge transfer
When experienced workers retire, companies lose valuable knowledge, which can widen the skills gap. Employers can often prevent this by creating standard operating procedures (SOPs), or instructions for each task.
For example, if an experienced worker develops an effective method for preventing errors but doesn’t write it down, it’s difficult to transfer their knowledge to a new employee. You might want to update your company’s training and mentoring programs accordingly.
Resource constraints
Leaders decide how to manage limited budgets. In some cases, it makes sense to purchase new equipment or invest in advanced software, leaving fewer resources available for training initiatives.
Even with enough budget, traditional training often lacks interactivity, isn’t tailored to each employee’s needs and doesn’t prepare workers for real-world challenges. Addressing these issues might help your company save money, as it’s typically less expensive to train an existing employee than it is to hire a new one.
It can also be helpful to provide video training, online courses and webinars. These flexible training options account for different learning preferences and schedules.
Resistance to change
Employees may resist change when they don’t feel confident about adapting. Consider using the principles of change management to help resistant employees understand why learning new skills is so important.
You might also want to commit to continuous learning throughout your organization. Continuous learning is the process of consistently developing new knowledge and skills.
Effective upskilling strategies for manufacturing workers
Upskilling focuses on helping workers learn new skills, so it might be useful for addressing the skills gap in manufacturing. Some organizations use upskilling to prepare employees to work with advanced technology. For example, you might want to help workers learn how to use IoT devices.
Itcan be helpful to customize your upskilling program based on your organization’s unique needs. Consider creating a new rewards system, partnering with educational institutions or focusing on continuous improvement. You may need to invest in data infrastructure and cybersecurity before developing other program components.
Conducting skills gap analysis
Skills gap analysis can help identify the differences between current employees’ competencies and the skills your company needs for future roles. You might want to use surveys or job assessments to identify each worker’s existing skills. Once you perform a skills gap analysis, you can decide how to upskill your manufacturing team.
Personalized training programs
Creating personalized training programs can help you account for differences in skill level, learning style and career goals. As manufacturing parts and processes become more complex, you may also want to implement interdisciplinary training, which incorporates knowledge and skills from different fields. Addressing multiple perspectives might help your employees improve their soft skills.
Once you implement a new training initiative, consider providing ongoing support to participants. The right level of support can make a training program more engaging. It’s also helpful to use surveys and other data-collection tools to measure your return on investment. Tracking key performance indicators (KPIs) can help you monitor the effectiveness of upskilling in manufacturing.
Blended learning approaches
Some companies use blended learning to help participants stay engaged in training. Blended learning involves using multiple training methods, such as classroom learning, online courses and hands-on experiences. You might also want to offer workshops or experiential training. When you use blended learning, employees have the opportunity to pursue personalized learning paths.
Leveraging digital tools
Many modern training programs also incorporate digital tools to make them more interactive. For example, you might want to use augmented reality (AR) or virtual reality (VR) to help participants develop new skills. These technologies promote practical learning in an immersive environment, making it easier for trainers to replicate a company’s true working conditions.
Using digital tools can also make training more accessible for learners. For instance, AR and VR can make it easier for an employee with a learning disability to participate in manufacturing training. Instead of reading dense manuals, the employee can use AR or VR tools to gain practical experience.
On-the-job training and mentorship
On-the-job training and mentorship groups can also help employees develop practical skills. Common on-the-job training methods include job rotations and project-based assignments. In a job rotation, employees switch between different tasks or jobs. This helps them learn new skills and understand other employees’ perspectives.
A project-based assignment is a practical exercise designed to help team members improve their problem-solving skills. Employees work to solve a real-world problem instead of a theoretical one, which can help them better understand the principles of modern manufacturing. Project-based assignments also encourage collaboration and help employees develop critical thinking skills.
Mentorship groups allow employees to learn from one or more mentors. A mentor is typically an experienced team member who offers guidance and support to employees who are still developing their skills. Mentors share their knowledge and offer constructive feedback, which can help participants develop in-demand manufacturing skills.
Collaborating with educational institutions and industry leaders
Forming partnerships with educational institutions and industry leaders can help you prepare your workforce to meet changing market demands. For example, you might want to explore partnerships with trade schools or source candidates from established apprenticeship programs.
Another option is to work with a specialized training provider. These companies have advanced manufacturing training programs ready to go, so they can help your company save time. Investing in your existing employees may also help make your company more appealing to job seekers.
If you still need assistance, consider partnering with Manufacturing Network USA. This network of research institutes has programs designed to improve existing training.
Apprenticeship programs
Apprenticeship programs provide structured training, so they can help overcome skills gaps. For example, if you need Quality Assurance Specialists to help your team meet customer expectations, you might want to hire graduates of a QA apprenticeship. This type of program typically combines formal education with real-world experience, giving participants the opportunity to learn practical skills.
Certification and continuous learning
As manufacturing technologies evolve, you might want to ask employees to obtain relevant certifications. Each certification validates specialized manufacturing skills, which helps ensure team members are prepared for new challenges. For example, if your company relies on 3-D printing, you might want to ask employees to get certified in additive manufacturing.
Consider covering the certification fees and giving employees time off to study for their exams. This shows that you value their contributions and are willing to invest in their development.
Creating a culture of continuous improvement
In a culture of continuous improvement, team members are always learning new things. Although technical skills are important, you might want to emphasize soft skills. These are the skills and personality traits that can help an employee in any role. For example, all employees need to communicate and collaborate with each other.
Implementing a recognition program can also help reinforce the concept of continuous learning. This type of program may improve employee morale, boost participation in your upskilling efforts and enhance employee commitment.
Management support and leadership
Effective leaders contribute to a culture of continuous learning, making leadership and management support helpful for upskilling programs. The right amount of support can help employees stay motivated and committed to the organization’s mission.
Management support also fosters a sense of collaboration and encourages team members to meet high standards. When leaders communicate openly and offer timely feedback, teams have the opportunity to adjust and improve their processes quickly.
Recognition and rewards
Recognition and rewards programs also serve as motivational tools. When you recognize a team member’s achievements, they are more likely to remain committed to your upskilling efforts. Consider offering multiple types of rewards, such as certificates of completion, skills certifications or employee-of-the-month recognition.
Peer-to-peer recognition can also be helpful, as acknowledging each other’s contributions may enhance collaboration. Implementing multiple forms of recognition can enhance employee engagement and motivate employees to pursue additional learning opportunities.
Measuring the success of upskilling initiatives
Once you implement an upskilling program, it can be helpful to evaluate its effectiveness. This can help you refine your training initiatives and ensure you’re investing resources wisely. Consider establishing clear metrics that align with your company’s objectives. These metrics typically connect training outcomes to overall business performance.
Setting clear objectives
You might want to set SMART goals for your upskilling initiatives. SMART is an acronym for specific, measurable, achievable, relevant and time-bound. For example, “learn new skills” is a rather vague goal. “Within the next three months, Ellen Lu will demonstrate CNC proficiency by producing five defect-free parts” is much stronger.
This goal meets all five criteria of the SMART framework:
- Specific: Ensure the goal applies to CNC machine operation
- Measurable: Measure whether Ellen Lu produced five defect-free parts
- Achievable: Expect someone to produce five defect-free parts in a three-month period
- Relevant: Aim to improve manufacturing competency
- Time-bound: Set a deadline of three months
Tracking progress and outcomes
Tracking key metrics can help you see how well your upskilling efforts are working. Consider monitoring retention rates, error rates and other KPIs to determine if you need to adjust your training program. It can also be helpful to administer skills assessments to determine if team members need additional support. Using a data-driven approach to monitoring can help you make informed decisions about upskilling.
The manufacturing skills gap is a concern, but it’s not out of your control. Upskilling, mentoring, blended learning and other techniques can help your employees develop new knowledge and skills. If you need extra support, consider partnering with local trade schools or industry leaders.
