Today, I am sharing strategies my manufacturing clients use to address current hiring challenges. Our topics include Near/Re-shoring supply chains, Automation AI Investment, and Workforce Development. In my LinkedIn poll this month, I asked which solutions have the most significant impact and ended up with our first-ever tie between Near/Re-Shoring and Automation AI Investment (37% each). Workforce Development came in at 21% in the poll. Additionally, as an executive recruiter, I am noticing the need to address potential talent shortages and find candidates with a firm grasp of digital technologies.
Supply Chain Shifts: Regional is the New Global
For years, manufacturers have relied on complex global supply chains. However, recent disruptions and geopolitical instability are driving a shift towards regionalization. As Logistics Viewpoints states in their article, Decentralizing Supply Chains: How Regional Models Drive Resilience and Flexibility, “Companies are rethinking their supplier networks to ensure that regional hubs are capable of supporting local demand.” This means looking closer to home for suppliers and building more resilient, localized networks. This article highlights how Cisco is responding to current supply chain challenges and encourages manufacturers to evaluate their supply chain. Are there opportunities to regionalize and reduce your reliance on far-flung suppliers? Building stronger relationships with local vendors can improve your agility and reduce risk.
AI and Automation: Worth the Investment?
Artificial intelligence (AI) and automation are revolutionizing manufacturing, offering immense potential for increased efficiency and precision. As Supply Chain Brain notes in, Can AI Usher in the Age of Fully Automated Precision Manufacturing? AI can “cut costs and carbon footprint… while drastically reducing the number of human workers required on the assembly line.” This presents a bright future for manufacturing. However, this also presents challenges. Manufacturers need to invest in new technologies and retrain their workforce to utilize these tools effectively. Supply Chain Brain recommends that we embrace AI and automation strategically. Identify areas where these technologies can improve operations, but also invest in upskilling your employees to work alongside these new systems.
The Talent Gap and Skills-Based Hiring
Finding and retaining skilled workers remains a top concern for manufacturers. As highlighted in NIST’s article The Manufacturers’ Guide to Finding and Retaining Talent, manufacturers will need to fill 4.6 million jobs by 2028. A holistic, systems-thinking approach to workforce development is crucial to ensure your company has clear development pathways. Along with offering competitive compensation and benefits, providing clear career pathways can be a key talent attraction and retention strategy.
Additionally, many manufacturers are turning to skills-based hiring. This approach focuses on the specific skills and abilities a candidate possesses rather than solely relying on degrees or job titles. LinkedIn recently shared its Skills on the Rise in 2025, which includes AI Literacy and Process Optimization—two skills that manufacturers are looking for in future employees. One key recommendation is to consider skills-based assessments to identify candidates with the right abilities, even if they don’t have the “perfect” resume.
Looking Ahead
The manufacturing industry faces significant challenges, but also incredible opportunities. Manufacturers can thrive by embracing agility, investing in their workforce, and adapting to new technologies. What challenges are you facing in your manufacturing operations? I’d love to hear your thoughts and experiences. Let’s connect and navigate these challenges together. CB and Associates, Inc. can be a valuable partner in helping you respond to the current labor market.
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