New report highlights what machine builders can do to mitigate the skilled labor shortage in the manufacturing sector

June 18, 2025

• Designing and building easy-to-use high-performance machines to replace aging technologies and labor-intensive work processes will move the industry forward
• Research indicates that one-third of machine building companies have up to 25% of their vacancies unfilled and new technologies could help bridge that skills gap
   

CLEVELAND – Intelligent power management company Eaton today announced a new report by S&P Global Market Intelligence 451 Research, commissioned by Eaton, that examines the extent of the skills gap and its implications for the machine building industry, as well as suggesting some mitigation measures.

Machine builders in North America and Europe face unprecedented challenges as demand for increasingly complex industrial machinery rises, while the pool of skilled workers with expertise in machine-building continues to shrink. The report - called ‘The impact of the labor shortage on machine builders’ - is based on survey data obtained from 300 machine building experts in the USA, Canada, Germany, Italy and The Netherlands.

Key findings:

• 79% said the skills shortage was having a significant, or very significant, impact on their organization’s operations
• The majority (60%) of machine builders have between 1%-10% of positions unfilled, with a third reporting an even higher percentage (11-25%) of currently vacant positions
• 40% indicated that the skills gap had reduced productivity by 11-25%

The effects of these challenges are felt widely, as evidenced by the range of machinery the respondents make. Their products range across the manufacturing of electrical equipment; heating, ventilation and air conditioning (HVAC) systems; material handling systems; food and beverage processing systems; agricultural equipment; and pumps and compressors.

Machine builders recognize the challenges within their customer base which is also affected by the manufacturing skills shortages. High-quality, high-performance machines will reduce their customers’ machine management and maintenance requirements, lowering the impact of skills shortages and bringing down their operational cost. New business models, such as offering products as a service, may hold some of the answers for machine builders and their customers long-term, while expanding the budget for training and upskilling may also be part of the solution, concludes the report.

Simone Gardosi, machine building segment leader, EMEA, Electrical Sector, Eaton, said: “This report is a wake-up call, showing how the labor shortage is one of the biggest challenges facing the machine building industry in both North America and Europe. It is a global problem that requires the global solutions we are able to provide for our machine building customers.” 

Molly Jenks, vice president of segments for North American sales, Eaton, said: “Machine builders are directly affected by skills shortages, but they also hold the key to helping their customers overcome the adverse effects of the labor crunch. We can help them to design and build easy-to-use and high-performing machines for their customers, as well as increase their speed in delivering new machines to market.”

David Immerman, Consulting Analyst at S&P Global Market Intelligence 451 Research, wrote in his conclusion to the report: “The machine builders that can overcome these ongoing skills-gap-based challenges will be better positioned competitively in the long term.”

Read the full report here: Download our market research report | Research Report | Eaton

Eaton is an intelligent power management company dedicated to protecting the environment and improving the quality of life for people everywhere. We make products for the data center, utility, industrial, commercial, machine building, residential, aerospace and mobility markets. We are guided by our commitment to do business right, to operate sustainably and to help our customers manage power ─ today and well into the future. By capitalizing on the global growth trends of electrification and digitalization, we’re helping to solve the world’s most urgent power management challenges and building a more sustainable society for people today and generations to come.  

Founded in 1911, Eaton has continuously evolved to meet the changing and expanding needs of our stakeholders. With revenues of nearly $25 billion in 2024, the company serves customers in more than 160 countries. For more information, visit www.eaton.com. Follow us on LinkedIn.

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Angela Swann
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angelaswann@eaton.com
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Regina Parundik
Cobblestone Communications
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Regina@cobblecreative.com