Win-win solutions are possible if we work together to mind the gap and remember that, "The only thing to fear, is fear itself." ~ Franklin D. Roosevelt
The manufacturing sector is grappling with a significant challenge: a shortage of skilled workers. As seasoned employees retire and fewer young workers choose to enter the industry, as discussed at ARMA summit 2024 by their inspirational Keynote speaker Tony Gunn Director of Global Operations @ MTDCNC and host of The Gunn Show Manufacturing podcast, the gap widens. By 2030, it is projected that 2.1 million manufacturing jobs in the U.S. will remain unfilled, which could result in economic losses of up to $1 trillion. Meanwhile, the rise of automation offers a solution to this labor crisis, but it’s often met with fear—concerns that machines will replace human jobs. However, automation doesn't have to be an adversary to workers. If implemented thoughtfully, it can actually create a better future for everyone: businesses, workers, and society at large.
In this blog, we’ll explore how automation, when combined with reskilling and supportive policies, can serve as a pathway to new opportunities for workers rather than a threat—and how businesses can help ease this transition to ensure everyone wins.
The Challenge: Manufacturing Skills Shortages
The current shortage in the manufacturing workforce stems from several factors:
An aging workforce—many skilled workers are nearing retirement, taking decades of expertise with them.
A skills gap—modern manufacturing often requires technical skills, such as managing smart factories or using data-driven decision-making tools, which many workers are not trained in.
A lack of interest among younger generations, who may see manufacturing as outdated or less appealing compared to other fields like technology.
As these challenges persist, automation offers a potential solution to bridge the labor gap. However, the fear of job loss has been a significant barrier to adopting automation solutions. How do we address this?
The Opportunity: Automation Augments Human Potential, It Doesn’t Replace It
The narrative that automation is about replacing jobs oversimplifies the situation. Automation, when used correctly, isn’t about removing human workers—it’s about freeing them from repetitive, manual tasks so they can focus on higher-value, more fulfilling roles. In fact, the rise of advanced technologies is already leading to the creation of entirely new job categories that didn't exist a decade ago.
According to the World Economic Forum, automation will displace 75 million jobs globally by 2025, but it is also expected to create 133 million new jobs in sectors like engineering, AI, and advanced manufacturing. The question is, how do we guide workers into these new roles? Here’s how everyone can win.
Human Solutions: Transitioning Workers into New Roles, Better Work/Life Balance
1. Reskilling and Upskilling Initiatives
One of the most important steps businesses can take is to invest in reskilling their workforce. Workers don’t need to be replaced—they need to be equipped with the skills to thrive in new roles. For example:
Automation management: Workers can be trained to oversee automated processes, ensuring machines run smoothly and troubleshooting issues that arise.
Data-driven roles: As automation generates more data, workers can be reskilled to interpret and analyze this data to drive business decisions.
Businesses like Siemens have pioneered programs that upskill workers to handle advanced manufacturing tools, turning former assembly line workers into robot technicians and data analysts. This not only addresses labor shortages but also creates higher paying, more secure jobs for employees.
2. Focus on Human Strengths
Automation excels in repetitive tasks, but humans bring creativity, adaptability, and emotional intelligence to the table—skills that machines can’t replicate. By automating routine processes, companies can empower employees to focus on problem-solving, customer relationships, and innovation—areas where human insight is invaluable.
For instance, General Motors has been at the forefront of integrating collaborative robots into their production lines. Rather than replacing workers, GM’s approach focuses on having robots perform repetitive or physically demanding tasks, while human workers are assigned to more skilled roles that require decision-making, problem-solving, and quality assurance oversight. This human-machine partnership enhances both productivity and safety, allowing workers to operate alongside machines in a way that maximizes efficiency without displacing jobs.
3. Fostering Collaborative Roles
Co-bots (collaborative robots) are a rising trend in manufacturing, designed to work alongside human workers, not replace them. These robots handle mundane, labor-intensive tasks while humans focus on managing processes or handling more complex tasks. Ford has deployed co-bots in its factories to assist workers in assembling cars, improving both productivity and safety. This human-robot partnership allows workers to maintain their jobs and enhances their efficiency.
Mitigating Fears: Communication, Transparency, and Support
Workers' fears about automation often stem from uncertainty—will they be trained, will they still have a job, and will they be valued? To mitigate these concerns, businesses need to lead with transparency and support.
1. Clear Communication
Businesses must openly communicate their automation strategy. Employees should understand that automation is not about cutting jobs, but about creating more sustainable business practices that will ultimately benefit everyone. It’s important to emphasize that the goal is to shift workers into new roles, not eliminate them.
2. Proactive Training Programs
Rather than waiting for fears to fester, businesses should proactively offer training programs for the jobs of tomorrow. When workers see clear paths for their development, anxiety turns into optimism. Initiatives like Siemens’ global apprentice program are great examples of how to prepare workers for future roles by offering hands-on training.
3. Government and Industry Support
Policymakers and industry bodies also have a role to play. Government-led initiatives like Germany’s dual education system, which combines classroom education with hands-on experience, provide a model for how public and private sectors can collaborate to reskill the workforce. Manufacturers can partner with local community colleges or trade schools to offer apprenticeships or internships focused on future-facing skills.
The Future: Everyone Wins with Automation
If approached thoughtfully, automation can truly be a win-win for businesses and workers. Companies gain efficiency, productivity, and innovation, while workers gain new opportunities for growth and higher-value roles. The key is not to resist automation, but to embrace it collaboratively, with a focus on reskilling, human potential, and partnership.
Manufacturing’s future is not about fewer workers—it’s about smarter, more efficient work that leverages both technology and human ingenuity. When done right, automation becomes a tool for empowering workers, enabling them to achieve more, earn more, and contribute to a future where everyone thrives.
The future of manufacturing is bright, not because automation will replace people, but because it will elevate us all. With the right investments in training and transparency, both businesses and workers can navigate this transformation to create a more sustainable and equitable industry for all.
Comments