How to Handle Labor Shortage in the Manufacturing Industry

Labor shortage in the manufacturing sector is increasing with experts predicting that it will only get worse in the future.

This leaves businesses both in the manufacturing sector and other industries with the burden of figuring out how they can overcome labor shortage challenges as still remain competitive.

Studies project an approximately 2.4 million worker shortage between 2015 and 2025. Even then, companies can be proactive by adopting the following possible solutions.

Organize Company Tours to Help People Understand the Company Procedures

One of the major factors contributing to the labor shortage in the manufacturing sector could be that there are incomparable perceptions from job seekers about the manufacturing industry’s value and their passion to take up jobs in the industry.

According to a survey carried out by Deloitte in 2017, eight out of 10 people interviewed in the US opined that the manufacturing sector was necessary for sustaining the living standards of residents, with a third expressing their willingness to encourage their children to join the manufacturing industry.

Some businesses today are organizing company tours for local residents and learners in a bid to change their views. After having a first-hand encounter with the manufacturing facilities, both residents and students are likely to change their perception and express their interest in the sector.

Factory tours allow people to interact face to face with experts and professionals who are experienced enough to offer valuable perspectives. Manufacturers can leverage on such tours to get the attendee’s contact information, of course with their permission at the end of such events.

This could help them reduce the hustles of conventional hiring procedures where employers don’t know where to begin their search for the ideal candidates.

Leverage on the Experience and Skills of the Older Workforce

Many people in their 70s in the US are either retired or contemplating retiring. In Japan, however, many employers encourage older people to continue working or hire already retired people. This approach is sensible in the fact that companies can still benefit from the skills and experience of the older generation even if they choose to work on a part-time basis.

The Mercedes Benz exhibition in Germany features the importance of hiring the older generation and the positive impact that such employees can have to companies. Mercedes Benz, for instance, has a tool developing program which assists people in their 50s and those with no formal experience to learn and get jobs in the factory.

Entrepreneurs don’t have to adopt such decisive measures yet. However, it’s important to understand that the older generation of workers is more experienced compared to their younger counterparts.

What’s more, some people in their retirement age still want to continue working and they feel more competitive to continue working in manufacturing plants especially if the facility is able to support their requirements.

Manufacturers can benefit from having the older generation of employees in various ways such as employing people who already possess leadership skills as a result of working in various companies. Companies can also carve a unique reputation for collaborating with a diverse workforce.

Using this strategy can help manufacturing companies reduce pressure by enabling them to fill labor gaps in unique ways that wouldn’t have been possible without considering the contribution of the older workers.

Once companies retain older workers, they create an opportunity for people with appropriate skills and experience who can work without requiring more training, which helps companies cut down on training costs.

Invest in Collaborative Robots

As the labor shortage in the manufacturing sector bites, companies will need to deploy collaborative robots in their operations. Cobots can enhance human output to promote overall efficiency.

Studies indicate that after adopting a collaborative robot, a plastic molding and injection company saw an increase in their return on investment approximately three and a half months later. The cobots also helped them manage labor shortage challenges.

Finally

Cobot manufacturing companies are advancing their machines.  Today, businesses can benefit from the effectiveness of the small industrial robot by incorporating it in their operations.