Three Ways Manufacturers Are Tackling Labor Constraints with Technology

Labor constraints are a constant pain point for manufacturing leaders. More than a quarter of U.S. manufacturing employees are approaching retirement age, and generational expectations about the nature of work continue to evolve. Add to that the growing skilled labor gap; in our recent survey, one in four manufacturers pointed to skilled labor shortages as one of their organization’s top three challenges.

The outlook for skilled labor is experiencing a significant shift, but how are manufacturers finding ways to work smarter amid these challenges?

1) Align Technology with Business Goals

While adopting advanced technologies is a significant priority, manufacturers need to examine where these tools can best support their operations and personnel. According to Gartner, only 48% of enterprise-wide digital initiatives meet or exceed their business outcome targets. That’s why it’s critical to align technology with business goals — and start with high-quality data.

Manufacturing and production are the top areas for AI adoption, according to NAM. Other smart applications range from core business systems and advanced analytics to workforce planning solutions and cybersecurity.

Any of these use cases should have a clear outcome, such as:

• Identify errors and inefficiencies
• Forecast market trends
• Analyze tariff-related challenges
• Optimize production lines
• Manage preventive and proactive maintenance
• Enhance assembly visibility
• Streamline inventory management
• Improve quality control

2) Optimize Employee Productivity with Modern Tools

As AI makes inroads into your organization, take concrete steps to support two of your most precious resources — your employees and your data. Legacy systems can stymie digital transformation efforts because they may not be capable of completely or accurately capturing data. Inefficient or cumbersome technology can frustrate employees and hinder their productivity.

Manufacturing leaders need to phase out legacy systems that have outlived their usefulness. End-of-life technologies can be riddled with security issues and no longer receive updates. More importantly, they often can’t integrate with newer applications. Replacing these tools with modern technology is a win-win for AI initiatives and employees, reducing the time spent on manual tasks and allowing for more time for higher-value tasks.

3) Upskilling Your Workforce

As advanced technologies evolve, almost 40% of workers face an unavoidable reality — their existing skill sets will be transformed or become outdated between 2025 and 2030, according to the World Economic Forum. Companies must take an active role in upskilling or reskilling their employees in the latest technological tools, creating mutually ensured success.

According to our survey report, a staggering 99% of surveyed manufacturers say their companies are upskilling or reskilling employees in the latest technologies. Ongoing training can take many forms, such as online modules, virtual and augmented reality, and tuition credit at an area institution. Cross-training for frontline workers also qualifies them for different production roles. Don’t overlook the role of mentorships either, which ensures institutional knowledge is shared rather than siloed.

How Eide Bailly Can Help

The right technology investments aren’t just a way to avoid labor constraints. Transitioning from legacy systems to modern technology can give manufacturers a competitive advantage, minimize costs by addressing inefficiencies earlier, and position an organization for long-term success.

Ready to move away from legacy systems toward modern solutions? Eide Bailly can help you achieve a seamless transition and get more out of your technology investments.