Labor shortages are hitting manufacturers hard, and they’re coming in fast from many directions. What’s not so obvious is the extent to which the labor shortages are affecting manufacturers, the products they produce, the workers they employ, and the customers they serve.

According to a study by the Manufacturing Institute and Deloitte, the labor shortfall is so severe that up to 1.9 million manufacturing jobs could remain unfilled by 2033, posing a substantial threat to safe, quality manufacturing and industry growth.

Despite the rising figures, the labor shortage isn’t a new issue for manufacturers. In fact, when the Covid pandemic struck in 2020, the manufacturing sector was already facing a crisis resulting from a lack of skilled labor. The pandemic compounded that and dealt a severe blow to the sector, which lost 650,000 jobs in 2020.  

Though U.S. manufacturers aren’t facing the same labor challenges that they faced during the pandemic, it’s expected that 2025 will usher in its own set of obstacles. There are the endemic factors of demographic shifts, compounded by an aging labor force without enough young people training to take on these roles. According to a report from the Employee Benefit Research Institute, the number of workers in the U.S. labor force who are “prime working age” has significantly declined since the 1990s, and older workers now make up a greater share of the talent pool. Further, the average tenure for manufacturing workers was 20 years in 2019 and only three years in 2023, according to a report from LNS Research.

Without fast action, the labor shortage will cause other repercussions.

Decreased product quality and consistency: Fewer skilled workers or more overworked employees can negatively affect product quality and defect rates, leading to an increase in the cost of poor quality, including scrap, rework, warranties, and returns.

Production delays: Labor shortages can affect production timelines, leading to delays and the degradation of brand reputation.

Employee burnout: Overworked or undertrained workers are a natural outcome of labor shortages, perpetuating a dangerous cycle of quality, safety, reputation, and profitability impacts. 

Empowering frontline workers

Frontline workers already play an essential role in manufacturing operations, and they’re poised to play an even greater role in maintaining and improving quality standards while ensuring that production levels are met. As the worker shortage continues, and the employee experience becomes an ever more important corporate tenet, manufacturers will increasingly recognize the unique role that empowering, equipping, and training frontline workers plays in improving enterprisewide quality. In fact, the ETQ Pulse of Quality in Manufacturing survey found in 2024 that 49% of respondents rated their training for frontline workers as “good,” while only 22% reported having “best-in-class” training programs. Despite these numbers, there’s still room for improvement as the industry works to meet projected demand.

Advanced technologies will be another way to draw in a new generation of frontline workers accustomed to using technology and demanding its availability in the workplace. Manufacturers will also need to embrace more innovative strategies for improving recruitment, retention, and employee satisfaction with their existing workers as they broaden the lens on hiring and look to bring in more people.  

Consider the following essential strategies to empower and connect workers with advanced technology solutions and enhanced training strategies:
• Leverage advanced technologies such as artificial intelligence (AI) and other digital tools to increase productivity, streamline operations, detect potential issues in production processes, make real-time decisions, and maintain product quality.
• Provide employees with the devices and tools to access and share critical quality data that help them become an essential part of the decision-making and problem-solving processes.
• Empower workers with training, skills development, and access to educational resources and opportunities to close the skills and knowledge gaps, improve retention rates, and attract new talent.
• Implement mentor programs through which nontechnical skilled employees are trained on digital tools and technologies, and rising workers are trained by these workers on sound manufacturing processes and protocols.

Manufacturers are increasingly adapting to the new realities and embracing the changes that are required to maintain the levels of quality, production output, and customer and employee satisfaction required to succeed. They’re taking an active role in applying an innovative mindset to address talent challenges that face the industry. It’s not a matter of if but how quickly and strategically manufacturers can embrace these remedies to retain and attract more workers and ensure success now and into the future.