The current labor shortage in manufacturing shows no signs of going away for the foreseeable future. An oft-cited stat from the report by Deloitte and the Manufacturing Institute is jarring: If the status quo continues, by the year 2033, 1.9 million manufacturing jobs will remain unfilled. 

There are multiple factors contributing to manufacturing’s labor shortage issue. Among the top reasons is a retiring workforce that isn’t adequately being replaced.

As the next generation moves into the workforce, many point to automation as a deterrent for entering the industry, fearing job obsolescence. Automation, however, is a double-edge sword, capable of accelerating production and reducing the need for humans on the shop floor, yet also creating new opportunities, especially since many manufacturers have a long way to go on their digital transformation. 

As they seek to close the labor gap and use automation to increase productivity, manufacturers are leaning into technology.

Manufacturers are raising the stakes when it comes to recruitment efforts. According to a recent survey of more than 500 manufacturers, 57% are offering higher wages to attract skilled talent. This is appealing to a wide swath of job seekers, especially as tech layoffs continue, yet will only pay off if it reduces attrition and doesn’t contribute to manufacturing’s brain drain.

Second, the rise of digital transformation in manufacturing has resulted in a glut of digital tools being used alongside paper-based processes. For teams and individuals, digital tools are a great way to streamline and automate what were once time-consuming and redundant tasks. Yet they also create information silos that mask big-picture views of what’s happening throughout the company. 

When you have information silos and still rely on paper processes, it takes longer than expected for employees to create weekly or quarterly reports. It’s also impossible to quickly generate a snapshot of what’s happening on the shop floor, or gain a greater understanding of how a snag in the supply chain will cause a ripple effect on customers, staff and distributors. A recent productivity survey found that employees are spending 11 or more hours each week reconciling data to get that big-picture view. Imagine the frustration of employees having to regularly track down information and rekey data to create reports.

Finally, as a result of the proliferation of all those digital tools, manufacturers are eager to consolidate their IT systems. A recent survey of more than 1,000 IT professionals, with over half in manufacturing, found that 75% use more than 10 software applications on a regular basis. This makes sense when you consider all the tools used to run a manufacturing business. With 80% of IT pros admitting they struggle to effectively manage their software applications; it isn’t surprising to learn that nine in 10 say software consolidation is a priority over the coming months.

This doesn’t mean they’re ditching their investments in software with the goal of having less on their plate. Instead, they’re taking a hard look at what employees need to run the business, and which tools are duplicative. From there, many manufacturers are streamlining their IT investments by moving toward a work-management platform. This enables them to maintain legacy systems, keep their most cost-effective digital tools, and continue a digital transformation journey that eventually eliminates paper-based processes.

How do these three influences create opportunities to fill the labor shortage? Increased wages aside, the strategic use of technology to streamline information sources and digital tools enables manufacturers to close labor gaps by evaluating which systems and processes undermine productivity. When critical information is centralized and easily accessed through a work-management platform, employees are no longer spending valuable time recreating reports. That’s a plus for both productivity and employee retention. 

This strategy also helps with generational knowledge transfer by eliminating guesswork about processes and best practices. While manufacturers have been focused on succession planning for some time, 41% report that the knowledge transfer between experienced workers and new hires remains inadequate. 

Having consistent sources of digital information on newer platforms makes training easier, especially since 71% of manufacturers report hiring less skilled workers while increasing on-the-job training. This also appeals to generations who want to work with the latest technologies, and acquire skills that make them attractive to a variety of employers, as opposed to mastering legacy technology.

For manufacturing to fill those two million jobs over the next decade, decision makers will need to evaluate how effectively they use people, processes and technology. This requires streamlining the IT stack and automating rote activities. By eliminating employee boredom and dead-end careers, and replacing them with opportunities for workers to contribute in more meaningful ways manufacturers will be able to shore up talent for years to come.

Josh Cranfill is general manager, manufacturing with Quickbase.