As the aging workforce retires, manufacturers must leverage technology to capture undocumented knowledge and train the next generation.
Manufacturing takes brains. Of course, it also takes machinery, but to build something correctly and for a reasonable cost, most manufacturers require (at least for now) human beings. However, attracting, hiring, and retaining new skilled labor has always posed a persistent challenge for the industry. Now even more concerning is the tidal wave of retirements, a phenomenon that’s been called the “Silver Tsunami.” The term conjures images of a sudden, violent disaster, but the Silver Tsunami is a slow-moving, long-term adversity in which more than 10,000 Baby Boomers (the generation born between 1946 and 1964) exit the workforce every day. By 2030, the entire generation will be age 65 or older, according to the latest U.S. Census, and their extensive knowledge, wisdom, and experience is at risk of being lost unless manufacturers act immediately.
“Steps need to be taken to secure expertise and collect and manage critical information for production,” advises Kristin McLane, President of CIMx Software. McLane has consulted with manufacturers for decades addressing how they protect their two most valuable assets – their information and their workers. On the current skilled labor crisis in manufacturing, McLane suggests: “You need to streamline the onboarding process for new employees to minimize disruption when skilled labor is lost.
You also need to better support your current workforce to reduce the need for new hiring. Overall, you need to recognize and address the need to attract and retain skilled Labor.”
So what can manufacturers do right now to facilitate this transfer of knowledge and skills from the current workforce to the next generation?
1: Pinpoint knowledge gaps
In manufacturing, data is priceless, yet critical data is often stored only in the mind and memory of one employee or saved on a single computer desktop or database. The best way for an organization to prevent information loss is to comprehensively document all production processes and identify: What information is necessary to complete the work? Where is it needed? Who has that information? Are there information silos where a single employee or system could bottleneck production? By implementing a system for storing, managing, and accessing data, manufacturers can strengthen production and protect priceless data.
2: Modernize technology
If a manufacturer is still using paper on the shop floor, it’s time to finally modernize. Gen Z, the generation born between the late 1990s and early 2010s, has grown up in the digital age. Expecting them to rely on paper is like asking them to work with a typewriter. They’ve been immersed in technology since they were young, using mobile devices to communicate, access information, and navigate their daily lives. This constant exposure has shaped their expectations and behaviors, leading to a reliance on digital tools and yes, shorter attention spans.
While this may seem like a disadvantage, it actually presents unique opportunities for businesses. Gen Z is highly adaptable and skilled at using technology to solve problems and streamline processes. This makes them natural innovators, quickly picking up new skills and finding efficient ways to accomplish tasks. In a paper-based environment, however, they may struggle to be self-sufficient and could require extra support and supervision.
Not only do outdated manufacturing processes deter younger talent, but they can also interfere with training and knowledge transfer due to their complexity or inefficiency. If the current workforce is already struggling using substandard work instructions while younger workers are asking for technology and actively seeking it out when choosing a job, it’s only logical that manufacturers who continue to refuse to upgrade their operations will be wiped out by the Silver Tsunami.
3: Support current employees
Are employees provided with the resources they need to complete their work efficiently? While there are many ways to demonstrate appreciation for your current workforce, one often-overlooked approach is to proactively address their pain points. By staying ahead of potential roadblocks and obstacles, manufacturers can increase efficiency without additional payroll expenses.
Companies often wait for employees to bring them problems, or they delay problem-solving, anticipating there will be a more suitable time in the future to deal with it. However, this approach burdens employees with unresolved issues, causing frustration and the perception that management just doesn’t care. Fostering a culture of proactive problem-solving can boost production capacity and increase employee engagement. Identifying and resolving issues that significantly impact employee satisfaction will not only create a positive work environment but will help retain the existing skilled workforce and attract fresh, new employees.
The time is now
The skilled labor shortage has shown manufacturers that embracing technology is no longer a choice, but a necessity. Within the manufacturing sector, solutions like MES tools are widely adopted to manage workflows. CIMx Software’s Quantum empowers manufacturers with a state-of-the-art suite of tools essential for advanced inventory management, quality assurance, and production scheduling. It not only streamlines operations but also supports employees—junior and senior—all while modernizing your manufacturing processes.
“It sounds simple, but when you have so much scheduling information and real-time production data, you can make your schedule work better. You can make it work for you,” says Kristin McLane. “Technology lets skilled labor see everything they need to get the work done from anywhere, saving time and energy. Accurate scheduling ensures your team is focused on the highest priorities and most critical work. This also makes it easier to onboard and train new employees, letting them focus on the work you hired them for rather than learning everything at once.”
She notes that for manufacturers facing staffing challenges, Quantum’s integrated MES offers a powerful solution: “It’s been proven that with the right technology, a workforce can double their output, eliminating some of the need for additional staff. Often, it only takes a few small steps to unlock that hidden productivity. For example, with a more accessible digital system managing production, you can always be sure your employees are working from the latest, most accurate information. Rather than searching for measurements in a paper build book, they have the latest files and instructions when and where they need it.”
While it’s clear that technology like Quantum presents a crucial lifeline, implementation is not happening fast enough to counter the rapid loss of institutional knowledge in most manufacturing operations.
From adversity to advantage
Multiple forces are colliding to create today’s shortage of skilled workers in manufacturing. Whether it’s the lingering effects of the pandemic, the recent wave of employees leaving their jobs (often referred to as the Great Resignation), or the current Silver Tsunami, the manufacturing industry is facing a perfect storm of critical factors. There’s still time for strategic manufacturers to implement the right software and proactively take steps to mitigate further labor challenges. With better documentation, improved knowledge transfer tools, and upgraded technology, manufacturers can use this as an opportunity to modernize their technology and maybe even do the unthinkable: turn this labor shortage crisis into a competitive advantage.
Related Categories