Putting Talent at the Centre An Evolving Imperative for Manufacturing 2025

Attrition, especially among those in the first 90 days of employment, remains stubbornly high, reaching three digits in many sectors. This instability has left many executives grappling with how to operate in the new normal. Unpacking the five drivers of talent instability These challenges have five root causes: talent shortages, widening skill gaps, evolving worker needs, overburdened supervisors, and insufficient rewards, recognition and incentives. Talent shortages The long-term viability of any company depends on sufficient access to skilled and capable talent. Inevitably, the balance between supply and demand for manufacturing talent varies geographically; however, demand greatly outpaces supply in much of the world. The US Bureau of Labor Statistics reported 622,000 unfilled manufacturing job openings nationwide, while the overall labour force participation rate fell from 67% in the 1990s to below 63% in 2023.4 Furthermore, skills gaps can make it feel like there aren’t enough people – even if the data show a surplus in the local market. If the available workers lack requisite capabilities, or if employees jump from company to company looking for a higher wage, companies still face talent shortage and/or instability. Widening skill gaps The integration of digital technologies in the industry is rapidly changing the skills required for frontline workers. Companies are struggling to find workers with the requisite skills as they switch from manual assembly to automated and digitized lines. This sentiment was shared by executives participating in the Frontline of the Future Initiative, including one human resources (HR) leader who said, “the biggest challenge is the digital requirements of our frontline workers. We need to make sure that more and more workers are knowledge-based workers, not just skilled workers.” This is echoed in the World Economic Forum’s Future of Jobs Report 2025, which predicted that 39% of workers’ existing skill sets will be transformed by 2030.5 Artificial intelligence (AI) and big data are among the most pressing priorities for workforce upskilling in 2024, especially in industries like advanced manufacturing, automotive, aerospace, consumer packaged goods (CPG) and electronics. By 2030, skill gaps in the labour market are expected to be the primary barrier to business transformation, cited by 63% of surveyed employers in the Future of Jobs Report 2025.6 Cognitive and behavioural skills, creativity and agility are also gaining importance to ensure employees can navigate rapid technological and organizational shifts. Companies focusing on these areas are better positioned to adapt to the evolving industrial landscape and maximize generative AI’s (genAI) potential for value creation . Focus areas of upskilling and reskilling by share of companies FIGURE 2 Top/bottom margin area 8mm73 6871 7169 566676 72 5284 7388 83100 86 Technology skillsAI and big data Creative thinking Resilience, flexibility and agility Advanced manufacturing Automotive and aerospace Electronics Production of consumer goodsTechnological literacy Cognitive skills Source: World Economic Forum. (2025). Future of Jobs Report 2025. (Based on upskilling reskilling focus 2025-2030).of workers’ existing skill sets are predicted to be transformed by 2030.39% Putting Talent at the Centre: An Evolving Imperative for Manufacturing 7