Here’s a sobering stat from The Manufacturing Institute: Domestic manufacturers will need to fill 3.8 million jobs by 2033, 1.9 million of which could go unfilled without efforts to recruit people. Another workforce challenge is the skills gap. Upskilling and reskilling can help. These strategies focus on developing the skills of your existing workforce rather than hiring new recruits.
Why the gap?
The skills gap in the manufacturing industry is driven by a combination of rapid technological change and long-standing workforce challenges. Automation, advanced robotics and data-driven production systems have transformed modern manufacturing. But many workers haven’t received training to keep pace with these advancements.
At the same time, an aging workforce is retiring faster than younger workers are entering the field. Outdated perceptions of manufacturing as low-skill or unstable work continue to deter new talent.
Defining the terms
Before examining the benefits of upskilling and reskilling, let’s define the two terms. Upskilling means advancing employees’ current skills through additional education and training. This helps your existing workers adapt to new technologies, tools or processes, enabling them to perform better in their present roles. For example, you might train a machine operator to use a new 3D printer or automated production line.
Reskilling involves teaching your workers entirely new skill sets, enabling them to transition to new roles or career paths. An example might be training a warehouse worker, whose job is being phased out due to new technologies, to be a robotics technician.
Upsides and downsides
Upskilling and reskilling offer several advantages over hiring new talent, including:
Bridging the skills gap. Given the current labor shortage, upskilling and reskilling may be the most effective ways to ensure that your workforce has the necessary skills.
Saving money. Recruiting and onboarding external hires can be expensive and time consuming. Often, it’s more cost efficient to develop the skills of existing workers.
Enhancing productivity and creativity. Skilled workers are usually more productive and more likely to innovate and identify process improvements.
Gaining a competitive advantage in hiring. Opportunities for training and career advancement can be powerful recruitment and retention tools, helping to distinguish your company from the competition.
Bear in mind that these strategies aren’t without challenges. They include:
Upfront costs. Quality training programs can be expensive, particularly for cutting-edge technologies that require specialized skills.
Disruptions. Training workers can disrupt your regular operations and cause productivity to temporarily decline. Of course, hiring new workers can also be disruptive.
Lack of engagement. Whether from resistance to change, fear of failure or complacency, a lack of worker engagement can derail your upskilling and reskilling efforts.
Employee turnover. There’s a risk that retrained employees will take advantage of their newly marketable skills to look for opportunities elsewhere.
You can overcome many of these challenges by identifying the right candidates for upskilling and reskilling. You’ll also need to promote a strong learning culture throughout your company and offer flexible training options (including online training). Consider creating incentives (monetary and otherwise) to help retain upskilled/reskilled workers.
To minimize disruptions, some manufacturers adopt a hybrid approach. They use skilled contract workers to meet their immediate needs while developing existing workers for their new roles.
Implementing a program
If you take the proper steps, your upskilling and reskilling efforts can help bridge the skills gap. To that end, you may want to employ an outside provider to tailor your training program to your company’s specific needs. Still undecided? We can help you determine whether the benefits of upskilling and reskilling outweigh the costs.
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