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Machine building

Manufacturing in crisis: the labor shortage and how machine builders can help solve it

Tackling the labor shortage in manufacturing

As the manufacturing sector grapples with the dual pressures of evolving technology and an aging population, businesses are finding it increasingly difficult to fill crucial roles, with far-reaching implications for competitiveness, innovation and resilience. While you as machine builder are directly affected, you also hold the key to helping your customers cope with the consequences. And by responding rapidly to market demands, you can gain a competitive advantage, secure market share and outpace the competition.
Learn how machine builders are responding

Workers will be lacking worldwide by 2030*
85M
Workers will be lacking worldwide by 2030*
manufacturing jobs are vacant worldwide due to skill gaps*
10M
manufacturing jobs are vacant worldwide due to skill gaps*
of employee time could be automated globally*
45
%
of employee time could be automated globally*

Main causes of the labor shortage

  • Industry 4.0 has created a demand for higher-level skills that many workers lack
  • Many baby boomers (those born between 1946 & 1964) are retiring in large numbers
  • Both the skills gap (workers lacking the right skills) and the applicant gap lead to unfilled vacancies
  • There is a shift to how people work and what they value in a job, with a preference for hybrid models that are difficult to implement in manufacturing

Impact on manufacturing

The lack of skilled workers has a direct impact on the capacity of manufacturers to keep production running and effectively manage their processes. Machine builders globally report :
The lack of workers drives up wages, increasing labor costs and forcing manufacturers to outsource production, which may compromise the quality of their products. 
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Without enough workers, manufacturers struggle to meet deadlines and deliver orders on time, which may damage their reputation and reduce customer satisfaction.
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Due to the shortage of workers, manufacturers have less time and resources to invest in research and development, potentially hampering innovation and creativity.
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Impact of the labor shortage on machine manufacturers

We’ve just published an in-depth report examining the impact of the labor shortage on the machine manufacturing industry, which was created on our behalf by S&P Global Market Intelligence. The results, based on a survey of 300 decision-makers and six interviews with industry leaders, are intriguing. The report highlights both the scale of the problem and how machine builders on both sides of the Atlantic are working to mitigate its effects, both for themselves and for their customers.
Download the report

What are the implications for machine builders?

The need for intuitive, easy-to-use machines

There is a growing need for machines that even non-skilled workers can operate. And changing preferences mean that to attract and retain new talent, machine operation needs to be more engaging. 

The need for smart, automated and high-performing machines 

Automation and intelligent machines are key to maximizing the efficiency of production processes and reducing the number of workers required for operation and maintenance. 

The need to increase speed to market & stay competitive

As a machine builder, you are also affected by the lack of skilled workers. But by increasing your speed to market, you can mitigate the effects for both you and your customers.

The need for intuitive, easy-to-use machines

The need for intuitive, easy-to-use machines

The need for smart, high-performing machines

The need for smart, high-performing machines

The need to increase speed to market

The need to increase speed to market

Advice: Invest in the upskilling and reskilling of employees to help them acquire the skills needed to design and build machines that match your customers’ needs. It’s also a good idea to foster partnerships with educational institutions, governmental bodies and industry groups to disseminate effective strategies and enable you to draw on a diverse talent pool.

*Source: Korn Ferry | Randstad | Harvard Business Review
Eaton is an intelligent power management company dedicated to improving the quality of life and protecting the environment for people everywhere. 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 accelerating the planet’s transition to renewable energy and helping to solve the world’s most urgent power management challenges.
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