Skills demand for engineering & operations roles intensifies in manufacturing

Overview By The Skills Coalition 2025

The manufacturing sector is facing a significant skills demand for engineering and operations roles. This shortage is driven by a combination of an aging workforce, technological advancements, and evolving legislative demands Key Trends Driving Demand:

Advanced Technologies:

There's a growing need for skills in advanced automation, robotics, and the Industrial Internet of Things (IIoT). Engineers proficient in these areas are crucial as manufacturing processes become increasingly digitized and automated

Sustainability and Materials Engineering:

With stronger legislative focus on sustainability, there is high demand for engineers who can innovate with eco-friendly materials and processes. This includes skills in lifecycle analysis and recycling processes,

Project Management and Lean Manufacturing:

Skills in managing projects efficiently, particularly under lean manufacturing principles, are more important than ever. This includes driving projects that enhance quality while reducing costs and waste.

Challenges and Solutions:

·         Workforce Aging and Skills Transfer:

·         A significant portion of the skilled workforce is nearing retirement, which risks a loss of accumulated knowledge and experience. There's a pressing need to transfer this knowledge to newer entrants in the field.

·         Gap in Technical Training: The rapid pace of technological change has outstripped the current training and development programs, leading to a gap in necessary technical skills among new workers【92†source】.

 Strategies to Bridge the Skills Gap:

·         Upskilling and Reskilling: Companies are focusing on training their existing workforce to handle new technologies and advanced manufacturing processes. This includes both digital skills and soft skills like critical thinking and problem-solving.

·         Public-Private Partnerships and Apprenticeships: To sustainably address the skills shortage, manufacturers are engaging in partnerships with educational institutions and government programs. This helps in shaping curricula that are more aligned with industry needs and in setting up robust apprenticeship programs.

·         Leveraging Retiring Workforce:Some strategies include using the expertise of retiring employees to mentor new hires, thereby ensuring that critical knowledge and skills are passed down effectively.

The manufacturing industry must continue to adapt by developing strategic workforce planning and engaging in continuous education and training to keep pace with technological advancements and legislative changes. This will not only help close the current skills gap but will also prepare the sector for future challenges and opportunities.

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