Putting Talent at the Centre An Evolving Imperative for Manufacturing 2025

Foreword Technology isn’t at the heart of production. People are. Putting people at the center is not a new idea, but technology has undeniably transformed industry and continues to do so, which means this imperative is evolving – and so must our playbook for meeting it. Currently, a gap exists between business ambitions and the frontline talent needed to achieve those aims. By 2030, 54% of the workforce in the advanced manufacturing sector will require training to meet evolving skill demands. As former leaders in production, we’ve heard “people first” countless times. Yet, we know how challenging it is to turn that slogan into reality – especially in manufacturing and supply chains. Why is the frontline talent challenge so acute? At a basic level, workers often struggle to earn a living wage, especially in developing economies. According to McKinsey & Company, 40% of frontline workers in manufacturing face financial insecurity, driving high turnover. Even in higher- wage contexts, competitive pay alone isn’t enough. Employees seek meaning, growth and a workplace that values their contributions. Without this, burnout and disillusionment take hold. As a result, talent retention has become one of the biggest challenges for industrial organizations. A McKinsey study shows that companies with effective people strategies are 2.2 times more likely to outperform their peers. Yet many still treat talent as a cost rather than an investment. It’s time to shift to a perspective that views frontline workers as key drivers of stability, productivity and growth. Organizations that embrace this mindset – offering not just fair wages but opportunities for development and connection – will lead the future of production. Imagine a workforce where employees proudly say, “I belong. I contribute. I have a future here.” These are the companies that will thrive, balancing business success with the well-being of the people at their core. This is the focus of the Frontline of the Future Initiative, a World Economic Forum initiative in collaboration with McKinsey & Company. This initiative explores how investing in talent innovation creates a win-win: boosting business outcomes while strengthening people’s relationship with their work. It offers a new playbook to meet the changing imperative to keep people at the centre of production. Have we solved the talent challenge? Not yet. But we know this: the organizations that truly invest in their people today will own the industrial future. Join us as we explore what it means to build a better path forward – for business, for workers and for the world.Kiva Allgood Head, Centre for Advanced Manufacturing and Supply Chains, World Economic ForumFernando Perez Senior Partner and Leader, the Frontline Workforce of the Future Service Line, McKinsey & Company  Putting Talent at the Centre: An Evolving Imperative for Manufacturing February 2025 Putting Talent at the Centre: An Evolving Imperative for Manufacturing 3