Empower your people. Boost your factory productivity. Enhance your adaptability.

Structural Trends Reshaping Manufacturing: Labor Shortages, Aging Workforce, Escalating Labor Costs

As a manufacturer, you are likely facing structural issues that are reshaping the industry. These issues are part of a long-term trend you cannot afford to ignore. 

It is important to distinguish between what we call VUCA (Volatility, Uncertainty, Complexity, and Ambiguity) events and permanent trends. 

While VUCA events are highly visible for business leaders, they come and go. Examples of VUCA include trade wars, fluctuating oil prices, political instability, technical advancements, etc. 

Structural trends are the real obstacles to long-term growth and warrant your full attention. Since they are here to stay, these long-term shifts require immediate, strategic action.

Unlike VUCA events, long-term trends such as labor shortages, an aging workforce, and escalating labor costs cannot be waited out.

The combination of these trends is pushing many manufacturers into an increasingly tight corner. Plus, most manufacturers are also dealing with rising employee turnover rates and the changing expectations of younger generations when it comes to traditional manufacturing roles. 

Relying on an abundant labor supply is no longer an option for your factory. If you don’t act now, you may struggle to maintain even your current production levels, let alone achieve growth. 

So how can your business survive and even thrive in a new industrial era? This is where automation comes in.

How Automation Helps with Labor Shortage

Millions are retiring across major industrial countries, which means the already limited labor pool is getting even smaller. According to a survey by the National Association of Manufacturers (NAM), 65% of manufacturing managers identified labor shortage as their biggest business challenge. That same report found that if left unaddressed, the labor gap could exceed 1.9 million unfilled manufacturing jobs by 2033. 

Automation is essential for filling the labor gaps left by retiring workers and for ensuring production growth. It is risky to be fully reliant on human labor. 

In addition to an aging workforce, many manufacturers are also dealing with high turnover rates threatening their business continuity. Without effective strategies to address these rising turnover rates, you risk falling into a vicious cycle of constant recruitment and training, limiting your ability to focus on strategic initiatives. The competition for skilled workers is intense, so a more attractive work environment is a MUST.

Automation offers a solution by reducing your reliance on a constantly changing human workforce. Automated systems can take over repetitive and physically demanding tasks, allowing staff to focus on higher-value activities and ensuring that productivity remains stable.

By automating undesirable and physically demanding tasks, you can create more appealing roles for your workers. Widen your people’s skillset with easy-to-use automation and let them focus on more complex and rewarding responsibilities.

How Automation Helps with Health and Safety

Musculoskeletal disorders (MSDs) are among the most common workplace injuries worldwide. These injuries impact the well-being of employees. The safety of your workforce is crucial, and ensuring ergonomic practices is a business imperative.

MSDs also have a major financial impact for businesses – namely lost productivity, increased absenteeism, and higher insurance premiums. Did you know that in 2022 alone, the total cost of workplace injuries in the US was a whopping $167 billion?! 

The good news? Automating tasks like palletizing can drastically reduce these risks. By making the switch, you’re not only protecting your team; you’re also freeing up time and resources to focus on growth and innovation.

With automation, you can have a healthier workforce, and a more efficient, profitable operation.

How Automation Helps with Rising Labor Costs

As a manufacturer in today’s economic climate, you can take steps to reduce the impact of rising labor costs on your operations.

Automation technologies streamline operations, reduce reliance on manual labor, and improve productivity. Solutions like collaborative robots (cobots) can provide quick returns on investment.

How Lean Robotics Helps You Automate

You know that labor shortages, an aging workforce, and escalating labor costs are here to stay. You also know that automation can help you counteract the impact of those long-term trends on your business. But when and where to begin?

It is important to start building expertise in automation ASAP. Over time, your people’s skill level will increase while robot technology will become easier to use. As you increase the skill level of your factory employees, you will have more people ready to deploy robots quickly. This can give you a competitive edge.

You may be thinking that automation is too complicated for your business because robotic system integration is either too expensive, too complex, or both.

We use a methodology called Lean Robotics, which focuses on People, Productivity, and Adaptability to simplify the deployment of robots in factories.  

Our adaptable designs enable quick responses to changing production needs, reducing downtime and keeping manufacturers competitive in dynamic markets.