How Manufacturers Can Win The Talent War

For many manufacturing industry executives, the ongoing labor shortage is nothing short of a crisis: Nearly one in five U.S. manufacturing plants could not meet their full manufacturing capacity at the end of last year due to an insufficient supply of labor.

The problem is unlikely to disappear anytime soon. Within the next decade, 1.9 million manufacturing jobs could go unfilled thanks to a lack of applicants and critical skills gaps.

But for business leaders who take the time to invest in creative solutions to attract, retain and upskill their workforces, today’s landscape can be a major opportunity to secure top-tier talent and gain a competitive edge.

Here are three talent strategies executives should keep top-of-mind.

Train from Within

Manufacturing leaders seeking skilled workers would do well to look internally before searching farther afield. There might be opportunities to upskill current employees to suit the company’s needs—all while boosting retention and preserving critical institutional knowledge in the process.

Existing employees have the advantage of already understanding company priorities, industry trends, and product specifics. Moreover, leadership can trust that they fit with the company’s culture, work well with colleagues, and have a strong track record.

Some of the most in-demand certifications and skillsets—things like lean manufacturing, six sigma quality management, and large-scale project management—can likely be taught to high-performing employees if given the right educational and institutional support. This could take the form of internal training programs, certification courses provided through a vendor, or financial support for going back to school part time.

While upskilling might not be able to address urgent workforce needs, it offers a valuable opportunity for leaders to create exactly the kind of employees their business needs—making it a cornerstone of every successful long-term talent strategy.

Consider Contract Talent

Sometimes, the problem is too acute to wait the weeks, months or even years it can take to train up existing employees. Nor is there time to conduct thorough searches for skilled candidates in a highly competitive market. Contracting can offer a solution.

For manufacturers in need of specialized skills and in-demand services, working with a staffing firm can provide access to highly experienced talent that can fill critical short-term gaps. It can also serve as a “trial run” before converting a contractor into a full-time employee, thereby skipping recruitment headaches entirely.

This is especially true given that getting a job and doing the job often require very different skillsets for engineers and other technical talent. Manufacturers going through the hiring process may miss out on ideal candidates who struggle to explain their technical backgrounds in interview settings, rather than proving their worth on the job.

For example, I once worked with a leading automotive original equipment manufacturer in need of an employee with a highly specialized engineering skillset. I was able to connect them with a talented engineer who had always wanted to work with the company, but after applying to jobs there multiple times, he had never even made it to the interview stage. Given the chance to demonstrate his knowledge and experience, however, he performed so well that he transitioned into a permanent role and now heads an entire team.

Invest in the Best

When looking to recruit or retain the best workers, it’s essential to make investments that allow the company to stand out in today’s uber-competitive talent market.

Start by investing in people. Those with sought-after skills in automation, manufacturing engineering, or AI, for example, expect benefits like remote work and flexibility. Mentorship programs also go a long way toward keeping valued employees and helping them progress in their careers, whether that means learning a new skill or taking on additional responsibilities.

Investing in new technologies—particularly advanced tools that support automation and efficiency—can also help attract workers with coveted skillsets and improve production. The best technical employees want to work with the best and most exciting tools, so be sure to communicate these investments when recruiting and training employees.

A Comprehensive Approach to Talent

Winning the talent war requires more than just filling open roles—it demands a strategic, long-term approach. By upskilling existing employees, leveraging strategic partners for staffing and outsourcing, and investing in both people and technology, manufacturers can build the workforce they need to succeed.