In today’s manufacturing environment, the rapid pace of technological advancement is often viewed as the dominant factor shaping the industry’s future. However, according to a recent report by ABI Research, it’s not just technology that manufacturers need to focus on—people-related challenges make up 50% of the top ten workforce issues in the industry. This striking finding from ABI’s 2024 Manufacturers’ Technology Adoption & Attitudes Survey, which polled 461 manufacturing decision-makers across the U.S., Malaysia, and Germany, highlights the crucial role of talent in the success of manufacturing operations.
Recruiting, retaining, and upskilling workers remain significant hurdles. While technological innovations like AI and cloud computing continue to reshape production processes, manufacturers are struggling to find enough skilled workers to meet operational demands. According to Michael Larner, Distinguished Analyst at ABI Research, “Some of the biggest issues for manufacturers involve people, not technology. Skilled individuals are required to operate and maintain equipment while optimizing production lines, but the workforce is currently lacking.”
This trend underscores the need for a dual focus on both technological advancement and workforce development. The survey’s broader findings also reveal several other key challenges and opportunities facing the industry:
- Collaborative Cloud Technology: 76% of manufacturers believe that cloud solutions improve real-time collaboration and streamline supply chain coordination, but U.S. firms are less optimistic about cloud computing’s scalability benefits compared to their German and Malaysian counterparts.
- Private Cellular Networks: 74% agree that private cellular networks offer the security and reliability needed to optimize operations, showing how digital infrastructure is becoming a critical component of modern manufacturing.
- Generative AI: 78% of respondents see generative AI as a valuable tool to quickly identify the root cause of production issues, while 79% agree that the industrial metaverse can support new product development and training.
- Sustainability and Drones: With a growing interest in sustainability, 23% of U.S. manufacturers are prioritizing sustainability goals. Additionally, 17% are exploring the potential of commercial drones in their operations within the next year.
As the manufacturing industry continues to evolve, it’s clear that workforce-related challenges, such as talent shortages and the need for continuous upskilling, must be addressed alongside technological innovations. Manufacturers who invest in both their people and their tech strategies will be best positioned to succeed in this dynamic environment.
Key Takeaway: Manufacturers cannot rely solely on technology to solve their challenges. They must also focus on developing a workforce equipped to navigate the complexities of modern manufacturing, making people as important as the technology they manage.