Reskilling, Upskilling and Educating: Solving the workforce challenge in manufacturing

Industry is technologically evolving at a rapid pace; the current workforce is aging, and supply chain instabilities are causing organizations to consider onshoring or nearshoring their operations—all of which are contributing to a gap between the current workforce’s skillset and the jobs companies are struggling to fill.  

The solution to this growing workforce challenge? Investing in the reskilling, upskilling and education of both the current and new generation of workers. By investing in these areas, manufacturers can close the skills gap, retain their workforce and above all, cultivate a more appealing work environment to attract new talent. 

What’s Changed? 

The growing talent gap in manufacturing can be traced to two primary factors: Supply chain disruptions and accelerated innovation. 

First, the global supply chain has become an object of mistrust following the COVID-19 pandemic, which revealed its fragility and the severe impact disruptions can have on both businesses and consumers alike. In response, manufacturers have started to re-evaluate their production strategies. Many have turned to offshoring to diversify their operations, while others have opted to bring operations closer to home, minimizing the risks associated with an unstable global supply chain. While these strategies can help organizations regain some stability, they expose a critical gap between the skillset and knowledge of their workforce. 

The second driver of the talent shortage is, in many ways, innovation itself. As manufacturers strive to keep productivity high and operational costs competitive with offshore alternatives, they are turning to advanced manufacturing capabilities. While these advancements are exciting, the rapid technological adoption has left companies with a workforce that hasn’t yet adapted to the new demands. Manufacturers are left seeking workers with advanced skills—skills that, in many cases, don’t exist in the current labor market. 

Automation and the Future of Manufacturing Jobs 

Given the long-term shortage of skilled workers, companies must find new ways to close the knowledge gap and continue to grow. Automation and artificial intelligence (AI) are playing an increasingly important role in manufacturing growth, enabling mundane and repetitive tasks to be automated, thereby making traditional shop floor roles more demanding. This shift has steered the focus toward roles that require intense data analysis and deep understanding of digital processes. Employees are now expected to engage with digital tools and technologies to monitor and enhance manufacturing processes. 

For example, AI-powered automation tools are being used to streamline quality checks and identify bottlenecks in production. In addition, hyperautomation, which seeks to automate every possible step of the manufacturing process, is becoming a growing trend amongst organizations. While this increases efficiency and can allow workers to focus on more critical tasks, it also raises the bar for the skills required to maintain these systems. Because of, and even with AI, understanding physical processes alone isn’t enough in the current manufacturing landscape. Companies must invest in the education of their workers, so they manage both physical and digital processes with proficiency.

The Importance of Reskilling and Upskilling

So, what steps can manufacturers take to address the skills gap? First, organizations can prioritize the reskilling and upskilling of their current workers. As discussed in the previous section, the introduction of new technologies means that employees should try to continually enhance their skills to keep their knowledge up to date. The half-life of many jobs skills is shrinking, and roles that once required a fixed skillset now demand continuous learning and adaptation. 

Reskilling is an essential step to ensuring that employees are equipped with the expertise needed to operate new machinery, utilize digital tools and manage automated systems. By leveraging digital learning platforms, companies can deliver training to workers in a flexible and accessible manner. This reskilling process is mutually beneficial: workers can learn valuable new skills, while organizations ensure their workforce is prepared for the future.

Workers have much to gain by learning how to operate new systems and technologies. Not only do reskilling and upskilling enhance their value to an organization, but also, they shape them into dynamic employees, creating new pathways to more advanced roles. By keeping up with industry trends, employees can make themselves indispensable assets to future employers. Of course, a certain level of self-motivation is necessary to excel and adapt to this evolving landscape, but organizations play an essential role in sparking this enthusiasm. By offering accessible training opportunities, companies can cultivate a culture of constant growth, where workers feel supported in their efforts to learn and progress. 

Moreover, immersive technologies such as augmented reality (AR) and virtual reality (VR) are becoming prevalent training tools in manufacturing. They offer realistic hands-on training experiences that mimic tasks workers would handle daily. This exciting method of upskilling provides employees with an interesting and interactive approach to absorbing new skills and information. 

Building the New Workforce

In addition to reskilling and upskilling the current workforce, manufacturers can also invest in the next generation of workers. This involves long-term commitment and active involvement in education, especially within STEM fields. By motivating more students to explore careers in manufacturing, companies can create a steady pipeline of potential talent who are inspired to pursue a future in the industry. 

Offering internships and educational programs provides students with a chance to gain practical experience with digital tools and advanced technologies. These programs not only provide valuable learning opportunities for passionate young minds but also help manufacturers identify and attract emerging talent. 

Collaboration and Credentialing 

As companies begin upskilling, reskilling and recruiting current and new talent, the need for up-to-date training is crucial. Manufacturers are beginning to collaborate with both technology providers and educational institutions with the goal of offering industry focused credentialing and certificate programs in technical areas like AI, smart manufacturing and software training as well as the critical skills for a digital mindset, from business acumen to project management. Quality-assured micro-credentials will provide a valuable path for employees to develop skills in or out of a traditional 2 or 4-year degree program.

By earning these credentials workers can stay competitive and manage evolving job requirements. Another benefit to these programs is that employers can confidently hire workers who have the skills to handle new technologies and processes. This symbiotic approach makes it easier for manufacturers to fill talent gaps more quickly while enabling workers to strengthen their career prospects. 

Continuing to Bridge the Gap

The workforce gap in manufacturing is unlike any other challenge the industry faces. It’s a deeply human issue that cannot be solved with a quick fix or piece of software. It requires time, communication and ongoing commitment to overcome. By focusing on reskilling, upskilling and education, companies can create the highly skilled and versatile workforce they need to succeed. 

As the manufacturing industry continues to undergo transformation, so must its workforce. By embracing digital technologies and equipping workers with the tools and knowledge they need to succeed, manufacturers can not only close the skills gap but also empower their workers to thrive in the industry. Reskilling, upskilling and educating employees ultimately results in a resilient workforce that is prepared to face and embrace change in manufacturing. 

Learn how Siemens is supplementing traditional engineering programs with a new ABET-recognized credential program.

About the Authors:    

Rahul Garg is the Vice President for Industrial Machinery at Siemens Digital Industries Software, responsible for defining and delivering key strategic initiatives and solutions, and global business development. He and his team are responsible for identifying key initiatives and developing solutions for the industry while working closely with industry-leading customers and providing thought leadership on new and emerging issues faced by the machinery industry. Rahul’s experience and insight are derived from a 25-year career delivering software-based solutions for product engineering and manufacturing innovation for the global manufacturing industry, spanning a career in R&D to program management, sales and P&L management and having focused exclusively on the industrial machinery and heavy equipment industry since 2007.    

Dora Smith directs the global education and startup strategies for Siemens Digital Industries Software. The strategic education initiative empowers learners to create a more innovative sustainable future through access to industrial strength software, industry-aligned learning resources, and an ecosystem of thousands of institutions worldwide. The strategic startup program empowers entrepreneurs to make an impact on the world through cutting-edge tools and resources to take their innovations from digitalization to realization. Dora also serves in academic-industry advisory roles with the American Society for Engineering Education (ASEE) and International Federation of Engineering Education Societies (IFEES).  

She is an accredited business communicator with more than 25 years of experience in the engineering and manufacturing industry. Previously, she held executive management positions at CAD Potential (now Tata Technologies), where she developed the company’s first academic and certification programs. Prior to that, she directed the Unigraphics Users Group (now Digital Enterprise Society) an independent, not-for-profit user advocacy organization supporting the engineering community. Dora earned her bachelor’s degree in journalism from University of Missouri-Columbia and a master’s in business administration from Washington University.  

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