The World Economic Forum’s “Future of Jobs Report 2025”5 highlights the emerging demand for new skills and the decreasing demand for certain others. For the manufacturing sector, this translates into a pressing opportunity to bridge a widening skill gap. Almost 40% of the core skills for advanced manufacturing and supply chain workforce will change by 2030. This isn’t just about technical proficiency; it encompasses critical thinking, problem-solving, digital fluency and the ability to collaborate effectively with intelligent systems.Just as with retention, this challenge is multi- generational. New hires, particularly those from Gen Z, enter the workforce with a digital-native perspective but still require industry-specific knowledge and safety protocols as they lag in many of the foundational operations and technical skills. Simultaneously, seasoned employees often possess valuable institutional knowledge but need pathways to adapt their expertise to new ways of working that integrate with emerging technologies. The goal is to create a dynamic work environment that facilitates and encourages learning and growth across all levels of the organization – and by doing so, to transform perceived threats from automation into opportunities for human-machine collaboration.2.1 Bridging the skill gap: Preparing for intelligent production and productivity 2.2 Innovations for upskilling and reskilling Leading manufacturers are embracing innovative learning programmes and methodologies that accelerate skill acquisition and promote adaptability. These approaches are increasingly using Gen AI as a foundation to create immersive, efficient and engaging training. The key principles of robust skills development initiatives include personalized delivery, hands-on experiential methods, and a strong focus on business outcomes. Immersive onboarding and skill development In an evolution from traditional classroom sessions, innovative companies are deploying interactive onboarding programmes that allow new hires to learn critical skills in a risk-free, simulated environment, regardless of their experience or the language they speak. This includes practical training for skills like welding and forklift operation, along with essential safety protocols. These immersive experiences not only accelerate proficiency – with over a 50% increase in speed to start the job – but also significantly boost confidence and reduce the risk of on-the-job errors, ensuring new employees are set up for success from day one. Beyond the benefits associated with the employee experience, increasing the efficiency of onboarding can unlock massive cost savings – up to a 54% reduction in some cases observed at sites referenced in this paper. Many of the same solutions can also be applied to day-to-day trainings, with a robust portfolio of courses and documents readily available long after onboarding to develop and empower a more effective, multi-skilled workforce on an ongoing basis. Faced with rapid growth and the need to onboard 2,400 new hires during peak seasons, Midea’s Si Racha site introduced “Meike,” a virtual reality (VR) and Gen AI-powered system that enables at-scale upskilling of employees from different cultural backgrounds. This in-house platform simplifies training by converting documents into online courses – over 28,000 so far – with just one click, while supporting four languages and offering voice-to-text functionality to engage a diverse workforce. By combining AI teaching, VR training and automated certification, Midea has cut core skill qualification time by 63% (from eight days to three), increased multi-skilled labour in the supply chain by 6%, and reduced employee turnover by 40% (from 16.5% to 9.9%). This approach not only accelerates onboarding but also enhances job satisfaction, retention and workforce agility to meet evolving business needs.CASE STUDY 5 Midea Empowering Frontlines 10

Empowering Frontlines 2025