Today’s manufacturing organisations are struggling to attract and retain experienced operational managers and shopfloor workers with the necessary digital skillsets.
Without action, this knowledge and skills gap will continue to widen and stunt future industry growth and innovation. In fact, almost half (42%) of manufacturers surveyed in a recent Investment Monitor report found that a lack of digital skills is the biggest barrier to adopting digital technology. Here, Kevin Bull, Product Strategy Director at Columbus UK, explores three key steps manufacturers can take to address the digital skills divide with help from effective change management strategies and advanced technologies.
The digital skills gap is estimated to cost the UK economy £63 billion per year, with the manufacturing sector experiencing its fair share of losses. Research shows that 75% of manufacturers identify skills shortages as their biggest barrier to growth. This is not a surprise. The digital skills shortage affects the entire career lifecycle of an employee in manufacturing – from the inability to recruit digitally-proficient talent to upskilling the existing workforce and retiring employees taking their experience and lessons learned with them.
This is why manufacturers need to take action and foster a culture of continuous improvement that impacts the entire workforce.
Step 1: Recruitment – attract and discover the best talent in the market
According to a recent report, 97.5% of manufacturers find hiring and retaining skilled labour a significant challenge to their business, particularly due to competition from other sectors. So how can manufacturers find the right talent?
It all starts with how a company presents itself to prospective candidates, including the younger generation entering the workforce.
Seek out the next generation of skilled workers
Gen Z workers stand out for their tech savviness and many manufacturers are looking to find new ways of engaging with this generation. Partnerships with local schools and universities offer students the chance to spend time in facilities and learn about different roles within a manufacturing business, from the shop floor to R&D and sales.
For others, apprenticeship schemes are the number one strategy to recruit skilled labour – and the results speak for themselves. Research reveals that 86% of employers found apprenticeships helped them develop skills relevant to their organisation.
Digital-first mindsets drop the three D’s
Ongoing efforts to reframe the manufacturing industry’s image from being associated with dull, dirty, or dangerous work is seen as crucial to address the digital skills gap. But there is a long road ahead. In fact, a recent survey found that the older industrial legacy of manufacturing makes it less attractive to jobseekers and young people are less aware of digital careers in manufacturing.
A company’s ability to demonstrate a commitment to digital technologies in the workplace is crucial as 27% of Gen Z want to work for a company that is at the forefront of the latest technologies and products. This is why manufacturers that show a willingness to embrace digital technologies in the workplace are more likely to attract tech-savvy candidates with the desired skillsets.
Step 2: An upskilled workforce is a manufacturing powerhouse
Closing the digital skills gap is not all about new recruits. Employers are now realising they need to invest in reskilling existing workers. To date, 75% of manufacturers are already upskilling their workforce with reskilling programmes to meet the demands of automation and smart technologies. Engineering professionals for instance, are prime candidates to further develop skills in data analytics, data science, and AI/ML techniques due to their quantitative skillsets and problem-solving mindsets.
But how can manufacturers further incentivise employees to learn new digital skills and ensure retraining efforts are a success? Enter the holistic side of digital transformation which puts employees at the centre.
The introduction of digital change means a new process, technique, or system that employees must learn, which often causes disruption, confusion, and even fear amongst the workforce. By putting value first and addressing the “what’s in it for me?” question, manufacturers can increase the chance of buy-ins and transformation success. But it’s important to remember that value comes in several forms. One group of stakeholders might see value as monetary in nature, while another might see value as improving specific business processes. If companies want people to be proactive in making change, then they need them to take ownership of it. Not because they have to, but because they want to.
An all-hands approach supports a culture of continuous improvement
Kaizen is one such example of a structured, team-driven initiative that focuses on improving a specific area of production and analysing where skills might need to be updated. It involves gathering diverse perspectives—from engineers, operators, and even sales—to analyse a problem and brainstorm the best possible next steps.
By putting together the right set of stakeholders, businesses can hunt value together, prioritise and align on what success will look like, and understand the capabilities required to get there and at what pace. This allows businesses to craft transformation initiatives that will get the entire business pulling on the change, rather than it being pushed upon workers with little engagement. If employees feel valued, they are also more likely to participate in discussions and share lessons learned. This approach supports a culture of continuous improvement and can be a way for more experienced workers to share their knowledge with new starters.
Step 3: A resurgence in the lean movement
For decades, lean manufacturing methodologies have been delivering impressive efficiency increases, helping to boost productivity and generate cost savings. Yet lean manufacturing is still relevant today to help companies address the digital skills shortage.
A common issue on the factory floor is that workers are not making the most of their time or skills. This is where a lean manufacturing approach, which focuses on waste reduction and continuous improvement, can be amplified by advanced Industry 4.0 technologies to optimise manufacturing processes without raising headcount.
Do more with less and let technology take the strain
Co-bots are revolutionising productivity in manufacturing. This technology can work alongside human operators to take on repetitive tasks while allowing workers to engage in more complex activities. The introduction of co-bots in the factory not only boosts productivity but also maintains the agility of manufacturing processes.
The seamless integration of operational technologies (OT) and information technologies (IT) is another supportive technology that can share the digital strain. For example, factories are now employing touch-screen terminals that streamline data entry and eliminate inefficient manual recording processes. This integration not only saves times but also reduces the likelihood of errors, allowing workers to focus on more value-added tasks.
Understand where the bottlenecks lie
Technology supports lean manufacturing efforts because it accelerates problem-solving efforts by pinpointing inefficiencies. Take for instance data visualisation, which provides workers with clear and concise overviews of production progress. This transparency allows companies to ensure everyone is on the same page and fosters a culture of accountability that enables quicker decision-making and can lead to improved operational efficiency.
The option to outsource digital experts is also available for manufacturing companies that struggle to support digital transformation projects with their existing resources. For instance, external specialists can provide expertise and advice without companies needing to sacrifice time training internally or using a trial-and-error approach.
Tackle the digital skill gap head on
Manufacturers can be proactive and address the ongoing digital skills gap through a combination of advanced technology and change management strategies that consider the holistic needs of the entire workforce. This two-pronged approach equips workers at every level with the necessary skillsets to succeed with digital transformation projects and places manufacturers in a stronger position to unlock new growth opportunities for years to come.
About the Author
Kevin Bull is Product Strategy Director at Columbus UK.
