Tag Archives: Skilled Workforce

 

Labor shortages, supply chain disruption, and technological change have been cause for concern for executives in the manufacturing industry the last few years. As 2024 draws to a close, business leaders are looking ahead to the coming year. What will manufacturing be facing in 2025?

Here are five trends and challenges we’re expecting for the manufacturing industry in 2025 and advice on how to handle each issue.

1. Digital transformation

It’s not that AI and technology are coming for people’s jobs. It’s about this technology being able to streamline how the job gets done, adding speed, quality, and efficiency to the process. The 2024 Manufacturing and Distribution Pulse Survey Report by Citrin Cooperman found 43% of leaders in manufacturing are currently implementing advanced tech programs and policies in their organizations.

It’s involving AI and Machine Learning to optimize processes and outcomes, the Internet of Things (IoT) which will use smart technology to have machines communicate their own glitches and needs for maintenance, and robotics and automation for tasks like assembly.

The end goal is to increase predictive maintenance, optimize processes, ramp up quality control and provide real-time data for better decision making.

What manufacturing should do:

At USC, we help clients use AI, Machine Learning, and Predictive Analytics to optimize their workflows, processes and demand forecasting. Companies should be using these techniques now, if they’re not already. It’s also crucial to upskill existing employees to be able to work with the new technologies. That’s a win-win for manufacturing companies and their workforce. Higher skilled employees are happier, more effective, and more loyal to the company.

2. Talent

Workforce development, skills gaps and employee retention will be the top issues in regard to talent in 2025. It has been estimated that 1.9 million manufacturing jobs could go unfilled over the next decade if talent challenges aren’t solved. The old guard, long term, experienced employees that executives rely on to get the job done are retiring without a strong pipeline of younger workers to take their place. In addition, the labor force itself is concerned with flexibility, hours, pay, child care and more.

But there’s also the issue of skills. A new study by Deloitte and the Manufacturing Institute found that the need for roles requiring higher-level skills, including technical, digital and soft skills are growing at a rapid rate.

What manufacturing should do:

Working with local trade schools, community colleges and even high schools to offer internships and apprenticeships is a great way to build the talent pipeline.

Also, offering current employees training in digital skills, as well as soft skills like leadership and management training, will provide the company with higher-skilled workforce. This will create a sense of loyalty and pride in the employee knowing the company is investing in them with an eye toward the future.

3. Sustainability

The focus on sustainability is everywhere. Manufacturers are feeling increased pressure to become greener, and as a result are implementing environmental, social and governance strategies.

There is governmental pressure because of tighter environmental standards, but there is also pressure coming from consumers who increasingly want and seek out goods that are manufactured with “clean” methods.

What manufacturing should do:

Continuing to investigate efficient technologies like solar and wind, and making investments in machinery and other assets that are more energy efficient, will be crucial in the coming year and beyond. It will help lower operating costs while satisfying the demand from consumers.

4. Supply chain

Supply chain disruption that plagued just about every business on the planet during the pandemic has eased to a great extent, but challenges are still out there. Lead times for materials is still high, and the cost of transportation and logistics is weighing on companies’ bottom lines.

Shipping delays and uncertainties are a big part of the problem, with headlines nearly every day of yet another cargo ship being attacked at sea.

Then there’s the issue of labor shortages all along the supply chain, both in foreign countries and the U.S., with labor strikes slowing down delivery and labor shortages of truck drivers adding to the snarl.

What manufacturing should do:

It’s extremely challenging for companies to combat labor shortages and shipping delays in their supply chains, but smart demand forecasting and considerations like reshoring supply sources can help. In addition, establishing a strong Sales, Inventory, and Operations Planning (SIOP) program will optimize your supply chain.

5. Tariffs

With a new administration may come new global trade policies, and it’s not just the U.S. that held elections in 2024. Many countries around the globe are restructuring leadership. Ongoing U.S.-China trade tensions will certainly intensify as a result of the tariffs the new administration is proposing, driving up the cost of materials for manufacturers.

What manufacturing should do:

Many manufacturers are ordering supplies and materials now, before the new administration takes over. Stocking up now, in case of major price hikes later.

This issue goes hand in hand with supply chain disruption and is one more reason to consider reshoring and nearshoring of supplies and materials.

The Outlook

Despite ongoing challenges, 2025 looks bright for manufacturers to grow their businesses. Adapting operations to be sustainable and incorporating advanced technology with an upskilled workforce to manage it, business leaders will enjoy major improvements to productivity, their supply chain, and customer satisfaction.

At USC Consulting Group, we’re here to help manufacturing companies become more productive and profitable with standardized operating procedures, enhanced management operating systems, SIOP improvements, and other strategies to find opportunities for greater efficiencies, increased throughput and bottom line results. Contact us today to have your operations humming in 2025.

Looking for ways to improve your bottom line

Back to top ↑

 

The manufacturing industry has seen rapid growth in recent years. Employment reached 13 million as of January, and the number of manufacturing establishments in the US saw an 11% boost between 2019 and 2023, reaching 393,000. Based on a recent report from Deloitte and the Manufacturing Institute, manufacturers may be in need of 3.8 million new workers by 2033 at this pace.

Unfortunately, an estimated 1.9 million of these roles could go unfilled considering the current labor shortage.

Today, researchers have found a 75% jump in demand for simulation and simulation software skills to enable technology-enabled production or testing roles in the manufacturing industry. The report states that these technical roles are likely to grow the fastest between 2022 and 2032 as manufacturing companies aim to leverage the adoption of newer connected devices, equipment, and systems. By upskilling employees, manufacturing companies can better motivate and retain employees to expect more consistent and productive operations.

Fortunately, innovations in digital technologies can help make upskilling more accessible to companies and employees alike. Below, we’ll take a closer look at some of the different resources you can use to promote upskilling among manufacturing employees:

Digital training tools

Adopting digital training innovations is one of the best ways to help employees train and upskill. Today, some manufacturing companies use virtual reality (VR) or augmented reality (AR) to facilitate virtual training for employees. This is a great way to train new and existing employees while saving on resources and without needing specialized locations to accommodate training.

For example, a University of Cincinnati doctoral student Shaleish Padalkar developed virtual and augmented reality technologies to create a three-dimensional virtual world where employees can be trained for semiconductor or microchip manufacturing. The VR simulator was designed from scratch using Siemens NX 3D modeling software and the Unreal Engine, a popular software for video games like Fortnite. UC has used a combination of both simulation and in-person instruction in an 8,000-square-foot “clean room” to train students in the basics of microchip manufacturing as part of a partnership with 15 colleges and universities called the Ohio Southwest Alliance on Semiconductors and Integrated Scalable Manufacturing.

Manufacturing audiobooks

Aside from proactive employee training, companies can also provide access to resources like audiobooks. Audiobooks have become a popular means of consuming reading materials. Audiobooks allow passive and on-the-go learning for employee training, making them a great resource to combine with other learning or training materials. Audiobooks are also great for multitasking, letting employees access training materials even when they aren’t in the workplace.

Thanks to the growing popularity of audiobooks, they have become increasingly accessible. Leading digital platform Everand has technology and engineering audiobooks that feature hundreds of titles from expert and qualified professionals in the industry. This includes Rob Reich’s “System Error: Where Big Tech Went Wrong and How We Can Reboot” and other books on different subjects like the future of innovation in fields like construction. These listens can be an insightful and holistic approach to manufacturing, providing a broader and often in-depth view into shifts in the manufacturing industry. If you’ve found that certain audiobooks resonate with employees, it can help to provide access to the book or eBook versions of these for more detailed reading and learning when dealing with new concepts.

Mentorship and apprenticeship programs

Another crucial resource for promoting upskilling in manufacturing is to initiate mentorship and apprenticeship programs. In our “6 Tactics to Attracting Gen Z to the Manufacturing Workforce” post, we highlighted the importance of outlining a career path of growth, development, mentorship, and training to help attract younger and newer talent in the industry. This outline lets employees see how they can grow and develop within the company.

Establishing mentorships and apprenticeships throughout the workplace allows employees to get much-needed guidance and insights from experts and professionals in the company. This lets employees develop practical skills through hands-on training, allowing them to hone their technical abilities and learn how and where to apply them for a successful career in manufacturing. Mentors are also a great resource for support and encouragement, and a good mentor-mentee relationship can create a more open learning environment where employees can thrive as they continue to improve their skills while fostering a solid work ethic.

Personalized training programs

When considering upskilling opportunities and initiatives for employees, it’s important not to settle for one-size-fits-all solutions. This is where artificial intelligence comes in. AI-based training programs offer a more cost-effective, scalable, and customizable approach to upskilling. According to a report from the eLearning Industry, companies embracing AI-powered learning reduced overall training costs by up to 35% while simultaneously improving learning outcomes, something they were able to achieve because the emerging technology’s ability to personalize lessons helped enhance employee engagement by up to 60%.

Today, AI-powered training programs are often used alongside connected worker technologies to help transform workplaces in supply chains and manufacturing organizations. These tools are used to analyze large amounts of employee and operational data to create personalized learning experiences from hiring and onboarding to continuous training as well as worker engagement and retention. It’s important to realize that each employee is different and will adapt to situations and new concepts differently. So, instead of relying on one-size-fits-all training programs, relying on AI to tailor instructions based on different individual needs, learning styles, and job roles can help provide employees with the training, upskilling, and motivation to succeed they need to excel in the field.

Ultimately, it’s important that companies adopt the latest technologies and combine them with existing systems to meet the shifting needs of manufacturing employees. Whether using virtual reality and artificial intelligence or through the help of mentorships and audiobooks, there is an abundance of resources available for companies and employees to instill a culture of constant growth and development. As explained in our introduction, the manufacturing industry will continue to grow in future years.

As more companies aim to minimize the skills and labor gap, employers and employees alike need to invest in continuous upskilling. Constantly upskilling in manufacturing ensures that employees are well-equipped to learn and use new technologies set to disrupt the industry.

*This article is written by Rose James. Rose is a freelance writer with a decade of experience writing about new developments in business and finance, as well as on new technologies like AI and automation.

Back to top ↑

 

Manufacturing can be a competitive industry. You not only need to produce innovative products that capture the market. It’s also essential to run efficient operations to keep your margins healthy. One of the elements that helps you achieve both of these is a high-quality workforce.

When your employees have the resources and skills to maintain high performance levels, you have a powerful tool to meet your company’s goals. Indeed, with continual development and nurturing, the group of professionals you cultivate can contribute to your successful growth. It’s well worth looking closer at some strategies that help you hone your workers into cohesive and productive teams.

Prioritize Communication

Any manufacturing enterprise features a range of professionals. One of the elements that helps this disparate workforce to function as a unit is solid communication. If there are hurdles to interactions, your workers are likely to be less efficient and less able to overcome challenges. Therefore, focusing on designing and implementing communication protocols is a key to better-performing teams.

The most straightforward protocols you can adopt are those that make communication easy and convenient for all staff members. This begins with establishing channels that offer multiple methods on a single platform. For instance, tools like Slack and Microsoft Teams enable staff members to direct message (DM) each other, have audio calls, and hold video conferencing all on an app they can store on their phones or computers. As a result, they can keep in regular contact with all colleagues present on the platform.

Another good step is creating an accessible organizational chart. This outlines the personnel in each department, their place in the hierarchy, the skills they have, and the best ways to connect with them. Having images of each also supports recognition when moving throughout the production floor and break spaces. Placing these org charts in each department and storing them on cloud platforms empowers workers to know who to contact whenever they need help or have questions.

You must also make it easy for workers to communicate their opinions to company leaders. Employee feedback can enhance performance by highlighting areas for practical improvement. When workers see their insights are appreciated and actioned, there can also be greater engagement and trust, which feeds into positive outcomes. Manufacturing managers need to actively reach out to staff of all levels to gain feedback, both in conversations and using surveys. Your company can also make open feedback channels available on the intranet or aforementioned communication apps.

Optimize Operations

It’s difficult to cultivate high-performing manufacturing teams if there are elements of their working processes that present hurdles. Investing in methods to optimize different aspects of your operations is essential. These enable you to develop an environment that empowers your workforce to function at its peak.

Technology plays an important role here in various ways. Some of the tools that enhance optimization include:

Data analytics

Having a thorough understanding of how efficiently each element of your business is running is central to making informed operational adjustments. There are cloud data analytics platforms on the market that track the metrics of all aspects of your manufacturing operations, from staff behavior to the waste your production processes generate. You can further optimize this by placing devices in the Internet of Things (IoT) throughout your facility, so that embedded sensors can collect accurate data to share with your analytics tools.

Automation

The manufacturing industry has long embraced automation. However, it’s important not to simply limit it to dangerous or precision production processes. You can also consider automating certain administrative and management tasks. Many repetitive parts of jobs, like data entry, invoicing, and inventory management can be performed by artificial intelligence (AI) driven software. This optimizes your human staff’s available time, enabling them to concentrate on more complex parts of the business.

Remember, too, that investing in your staff’s development is also a vital optimization practice. Training levels up your workers’ skill sets, allowing them to operate more efficiently and innovatively. Your investment also makes workers feel valued, which may boost their connections with your business, which can drive their productivity.

Encourage Collaboration

While each employee is an individual professional, developing cohesive teams is key to high performance in manufacturing. When you establish protocols and tools that encourage positive collaborations, there’s the chance to generate results from the collective that you wouldn’t get from individuals alone.

For instance, during the ideation phase of projects, using mood boards can offer opportunities for teams to work together on a shared creative document. These materials involve the team contributing images, colors, and even text to evoke the emotions around the project and spark concepts that lead to the final product. When you make digital mood boards stored on a cloud platform, you can empower different members of the team to provide contributions, no matter what department they work in or even if they’re operating remotely. It helps everyone to feel a meaningful part of the business and maintains team cohesion.

Wherever possible, arrange for members of each team to engage in collaborations with diverse populations of professionals. Cross-departmental projects and even fun team-building activities give your staff chances to work with people outside of their usual circle. This exposure to different perspectives and experiences with people of different abilities, seniority, and cultures can be a vital source of development that boosts future collaborations and innovations.

Conclusion

Building high-performing manufacturing teams influences your success. Your efforts should include a range of measures, from protocols that bolster communication to adopting tools that optimize working practices, among others. Don’t forget to seek your workers’ feedback on this matter, too. They are likely to have keen insights into what hurdles to performance are in their jobs and how to overcome them.

*This article is written by Ainsley Lawrence. View more of Ainsley’s articles here.

Back to top ↑

 

Got Gen Z on the payroll? If you’re like many companies in the manufacturing sector, the answer is likely “no.” That is a talent pipeline your business is missing out on. A couple of recent studies highlight the scope of it.

Here’s a snapshot:

Despite these rather bleak statistics, there’s good news out there, too. It’s possible to turn those numbers around with some savvy strategies for hiring and retention.

Gen Z: The Toolbelt Generation?

The first step in attracting the younger generation to your workforce is knowing what makes them tick. Who are these kids?

Born between 1997 and 2012, Gen Z is digitally native, meaning they have never known life without a cell phone or the internet. They are extremely socially aware and environmentally conscious.

Gen Z grew up during the pandemic. These are the students who couldn’t go to their high school proms because of Covid-19 and discovered the realm of virtual learning.

Gen Z values work-life balance more than money, and are interested in career growth. They have heard about the crushing burden of student debt all of their lives, and the good news for manufacturing, Gen Z is trending toward trade schools rather than getting an expensive four-year education.

In fact, the Wall Street Journal just ran an article titled “How Gen Z is Becoming the Toolbelt Generation.” And it’s getting a lot of buzz.

The article highlights a growing trend of young people opting for trade schools over four-year college degrees. The reasons are as pragmatic as Gen Z itself:

6 tactics to attract Gen Z

So, what are some strategies to attract this younger generation?

Emphasize work-life balance. Gen Z is all about their work-life balance. That means flexible hours, competitive compensation, great benefits, and a healthy amount of vacation time.

Highlight problem solving. Gen Z loves to problem solve and put their minds to work.

Showcase high tech. Manufacturing organizations are leaning into tech jobs, with robotics, and data analytics. Showcasing these aspects of the industry will appeal to young digital natives.

Outline a career path of growth, development, mentorship and training. The last thing Gen Z wants is a job with no future. These young people need to see how they can grow and develop within your company, that there is a path forward and training to help them get there.

Partner with trade schools… Trade schools are your pipeline for new employees, so sponsoring a job fair, speaking to classes, and otherwise developing a presence at your local trade school will put your company top of mind when these young people graduate.

…or pay for them to get the training they need. An alternative or even complimentary strategy is recruiting students right out of high school or online with the promise you’ll pay for their degree. If families are wary of student debt, this can be a powerful motivator.

Attracting and retaining Gen Z can feel like a moving target. But by focusing on what’s important to this generation, you can zero in on an enormous pool of talent that will take your company into the future.

Organization Design: Guiding Principles for Optimal Company Structure eBook

Back to top ↑

 

As a manager in a business-to-business manufacturing environment, your goal is to ensure the accuracy and proficiency of your systems and employees. Other organizations depend on your work, and if you fall behind, the chain reaction could be catastrophic. As a manager, you need to find the top talent that you can mold and train for long-term success, and it starts from the day you put out a job description. Here are some important guidelines to follow for finding the best employees, ensuring maximum productivity, and retaining top talent for years to come.

Finding The Best Employees

The first step to a seamless production environment is finding the right people for the job. In addition to searching for those who have experience in what you do today, it’s wise to consider how tech and systems are evolving and to hire for the skills of the future.

One key skill is data analysis. This function is essential for checking on your processes to verify they’re running efficiently and that you’re making the most of your talent. You’ll also want to search for candidates who are familiar with automation. Machines are becoming more advanced, and many can perform repetitive tasks without human involvement. Good automation could bring your factory to the next level.

While reviewing applications, search for candidates who have experience in data analysis and automation. Pay special attention to people who have worked in the B2B manufacturing space. Since information on an application is not always obvious, ask good questions during the interview so you know you’re making the right choice when you hire.

Another way to find top talent is through your job listings. Create a strong job description that tells potential candidates exactly what you’re looking for and the requirements they’ll need to succeed. If you’re having trouble finding candidates, use social media and consider paid advertising. Your best option is to ask current employees you trust to refer others so you know you’re getting the best and brightest.

Staying Productive With Training And Analytics

Once you find the best employees, you need to have a system in place that ensures they can work as efficiently as possible.

Proper Training

One of the tactics that can create a smooth operation and mitigate potential supply chain issues is to put your staff through proper training. Teach employees the ins and outs of the work they’ll be completing and allow them to provide feedback that could prove valuable. As time goes on, offer annual training to reinforce current processes and teach new strategies.

How To Use Analytics

When you get things up and running, put your accountants and data analytics professionals to work so they can verify that you’re making the most of your staff and equipment. They can also ensure that you’re using your money wisely and that you can set aside enough for future staffing and development.

When reviewing your equipment and production costs, decide whether you’ll look at actual or standard costing. Many manufacturers use standard costing, which is when you plug in predetermined costs of materials, labor, and overhead using historical data. This method is useful when costs are generally predictable.

However, if you’re adding new processes and employees, you may want to go with actual costing, where you track costs as they occur. This latter method may take longer but you’ll have more precision with your numbers to make the best decisions.

You can review these numbers on a quarterly basis to determine if there have been any major shifts by viewing them with a comprehensive dashboard. Use it to track the figures by employee, machine, waste time, and more.

While you’re running analytics and measuring productivity, you may find that you can embrace automation and replace many processes that are currently done by hand. Many data entry tasks, like inventory management and order processing, can be done through automation. If employees are spending a lot of time on menial, repetitive tasks, let the machines go to work so your staff can focus on bigger things.

Retaining Top Talent

Talent management isn’t only about finding the best people. It’s also about keeping them happy and content so you can retain their services for as long as possible. A big part of a good retention strategy is providing a career path and opportunities for development. If an employee knows that there could be a promising future at your business, they’re more likely to stay and do their best work.

Recognition and monetary perks will also keep the team excited, so implement an employee incentive program to help retain talent. Incentives can include monetary bonuses, gift cards, time off, or other benefits. When you create a program and present it to the team, ensure that you set clear criteria so employees understand what they need to do to get an incentive. When the program is active, check periodically to verify that your systems are actually tracking team progress. Your team is likely to work harder and share their successes when they know there are perks at stake.

Finally, your talent is more likely to stick around when they know they’re cared for and listened to every day. Management should reach out to their teams regularly to check in and provide guidance. You should also be willing to accept feedback via surveys and anonymous messaging and take action to correct any concerns.

Conclusion

Since B2B manufacturing is an essential part of many thriving industries, it’s vital that you have the best people on the job. Take the time to train your people, monitor your processes, and set your operation up for success.

*This article is written by Ainsley Lawrence. View more of Ainsley’s articles here.

Need more horsepower for your change management project

Back to top ↑

 

If you suspect your employees are burned out, you’re probably onto something. The 2023-2024 Aflac WorkForces Report revealed almost 60% of U.S. workers across all industries are experiencing some level of burnout. That’s a significant jump from 2021 when the number was 52%. And, it’s coming close to the quicksand trap of burnout we saw during the height of the pandemic in 2020… which, as we all know, led to the Great Resignation. Many industries still haven’t recovered from that unprecedented mass exodus of workers.

Here are a few more fast facts about workplace fatigue from the Aflac report:

Admittedly, those numbers seem pretty grim. It’s especially concerning when it comes to employee engagement and retention, which are problems bedeviling many industries right now, including manufacturing, mining, food and beverage and others.

The result of employee burnout and workplace fatigue looks like a laundry list of a manager’s worst day: lagging production, employees just phoning it in, growing malaise and discontent among workers. It can lead to errors, too – potentially serious ones. It all adds up to bad news for your bottom line.

That’s why it’s important for managers and higher ups to take a look at their company — the people on the shop floor, the workers in the mines, the longtime employees on the assembly line, even the white collars in the office, wherever your employees get the job done — through the lens of employee burnout.

What causes employee burnout and what can you do about it?

Causes of employee burnout

When tackling a challenge, it’s always best to look for the root cause. For employee burnout, we’re talking about:

But, it’s not just those types of pressures that contribute to burnout. There’s also:

What executives can do about workplace burnout

There are many fixes for this challenging situation and some of them can be implemented fairly easily. Here are some ways we’ve found to help our clients deal with workplace burnout and reenergize their employees.

Investigate automation… This doesn’t mean investing millions in AI to transform your shop into a bot-dominated sci-fi thriller. It means taking a look at the kinds of repetitive tasks that might be better done by a machine. Automation reduces the need for manual labor, but it also reduces human error and increases consistency and efficiency. Payment and accounting, order processing, and inventory management are some areas to consider automating.

…and train employees for higher-skilled jobs. Yes, some tasks can be done faster and more efficiently by the bots. But the people who previously held those jobs are still valuable to your company. Upskilling those employees has more benefits than letting them go. Training is a magic bullet to increasing job satisfaction and employee retention. It gives people a clear view into a path forward, a sense that you value their contributions and are committed to their growth. Training also has another magic power – it increases overall, on-the-job efficiency.

Give workers more autonomy and voice. At USC Consulting Group, we are famous for encouraging top-level executives to get more familiar with the people who are on the front lines. We can all but guarantee that spending a few hours with the seasoned employees doing those jobs will give you a new perspective. They know how the job can and should get done, and are a wealth of information about ways to improve it. Listening to their ideas and better yet, implementing them, pays off in countless ways. Not only do you get a more efficient and productive line, your employees feel respected, listened to and valued. Now that’s a win-win.

Strive for operational excellence. Operational excellence is your organization running on all cylinders, eliminating bottlenecks, reducing waste and ramping up productivity. You have the right people in the right jobs and are using data and key metrics to “manage by the numbers.” How does this combat employee burnout? Just think about how great it feels at work when everything goes right. When you and your employees are clicking. When you don’t just meet but exceed expectations. That great feeling is called job satisfaction and it’s a powerful antidote for burnout.

Need help handling employee burnout? At USC Consulting Group, we’re here to help companies become more efficient, effective and profitable through process improvements — including implementing strategies to increase employee satisfaction and retention. Give us a call today to find out more.

Contact USC Consulting Group

Back to top ↑

 

It’s a problem plaguing companies across most, if not all, industries: the loss of institutional knowledge when a seasoned vet retires. The person you’ve had on the job for decades gets their gold watch, has a retirement party and walks out of your door for the last time… and takes everything they’ve learned on the job with them. That knowledge is gold to companies, and the loss of it can be devastating. According to the Association of Equipment Manufacturers, the lack of knowledge transfer when an experienced worker retires can cost individual companies $47 million per year “due to time wasted, missed opportunities, frustration and delayed projects.”

Manufacturing is especially hard hit by this, because its workforce is aging and younger people aren’t coming in to fill in those ranks. IndustryWeek reports that 54% of U.S. manufacturers are finding it difficult to attract skilled workers to get the job done. That’s up from 38% before the pandemic. But, it’s not just a manufacturing issue. By 2030, one in five Americans will be 65 or older. That’s a lot of great employees looking at retirement.

All of that said, the loss of institutional knowledge isn’t just an age issue. It’s also a generational turnover rate issue. Compared to Boomers, younger workers are on the job for a nanosecond before moving on. The average millennial tenure on the job is 2.9 years. For Gen Z, it’s even less: 2.3 years. The “Great Resignation” following the pandemic didn’t help matters, when people who could leave the workforce, did. They still are. In February 2023, 4 million people left their jobs. The one-two punch of older workers retiring and high turnover rate among younger workers has created a knowledge gap crisis.

The solution? Companies need to have rock-solid foundational training that covers key processes in their operations, written on stone tablets if necessary. It requires a shift in a company’s learning curve, and many simply don’t know where to start. That’s where USC comes in.

How USC helps companies shift the learning curve

Those are the stats and facts about the loss of institutional knowledge. We’ve seen it play out on the shop floor in many of the companies we partner with. Companies that didn’t have simple, well-documented processes lost capability, capacity and quality as their experienced workforce left. It resulted in companies playing catch-up in terms of time, money and employee turnover.

This doesn’t just affect the shop floor. Junior and mid-level managers lost mentors and leaders who might have been there to show them the ropes. We’ve seen frustrated, disengaged, underdeveloped employees leave companies as quickly as they’re hired.

It has resulted in USC developing a closed loop Training Management process that documents and maintains standardized operator work instructions, quickly ramps and levels employee knowledge, encourages employee engagement, and promotes leadership development.

The objectives? Here’s what we’re looking to accomplish:

Deliverables include all of the above, along with a detailed timeline for standard operating procedures development and training.

Our approach is designed to accelerate and deliver sustainable change while engaging your people and bringing focus, clarity and transparency to organizational effectiveness.

It includes a Rapid Assessment Analytics Phase and an Implementation Phase. Here’s how it works:

Learn and Collaborate

With leadership, we explore key issues and opportunities in order to articulate the vision of the project.

Engage

In this stage, we find the gaps and align with leadership on goals.

Solution Design

With key players, we develop a roadmap and a detailed execution plan. We determine the changes we need to implement and do triage to knock out quick wins to move the project along.

Execute and Sustain

This is where the rubber meets the road. We mobilize stakeholders and implement the solution. It requires ongoing training and coaching, weekly reviews, and a study of ROI and benefits.

As with every project we undertake, our training management approach does NOT include us swooping in and making pronouncements of how things should be. Instead, we engage with your people to create a blueprint that’s unique to your company.

Training Management Project Approach

We aim to drive significant value on two fronts, the “just do it” phase to drive immediate value, and the “change the game” phase to drive sustainable outcomes and long-term value. It includes

Yes, a lot of this can sound like “consultant-speak.” What it boils down to, in plain English, is keeping your operations humming along on all cylinders even if every experienced employee on your line suddenly walks out of the door. It’s about identifying your core processes and procedures — what needs to happen to keep the place running. Documenting those procedures, and then creating and providing solid training to employees and higher ups. Sometimes that can involve getting to the heart of what IS NOT in any training manual, those invaluable nuggets of institutional knowledge your people have developed over years on the job.

To learn more about how you can shift your learning curve to retain your employees, give us a call today.

Need more horsepower for your change management project

Back to top ↑

 

Knowledge is power, right? The problem? Most working professionals learn the majority of what they will ever know about their chosen profession between the ages of 18-22. They’re kids still, at that age, not even legally allowed to rent a car.

Sure, they’ll learn more on the job. Arguably, they’ll learn everything that really matters at work. But those pedagogical skills. The theory and tech that goes into professional life — that’s typically learned in the more formal classroom setting.

Without upskilling, your staff can wind up in professional limbo. Fortunately, there are many ways to continue developing professionally, even after school is out.

In this article, we take a look at how upskilling your employees can help create a stronger organization.

What is Upskilling?

As the name suggests, upskilling is simply the process of teaching your staff new skills. They learn more about how things work around your organization and perhaps gain the capacity to fulfill other responsibilities somewhere along the line. Kind of like a professional cross-fit program.

Instead of an inordinate amount of leg days, you have team members learning about new technologies or embracing business concepts that might otherwise be outside their job description.

Usually, upskilling is framed as being optional — professional development opportunities that, while not compulsory, may improve the employee’s overall standing within the organization somewhere down the line.

Not everyone will be interested in upskilling, but those who are will learn valuable skills.

Identifying the Go-getters

One of the most obvious benefits of upskilling your employees is that it helps to identify the go-getters. With this, you find out quickly who is interested in growing professionally, and who is more or less coasting on the job. When it comes time to decide who winds up taking on leadership roles, your upskilled staff will often be a great first place to look.

Filling Gaps

Upskilled professionals may also be better equipped to fill gaps within your organization. This is a problem that business leaders all over the world are still dealing with. They have jobs to fill, but they can’t quite find the people willing or qualified to take them on.

You definitely don’t want to rely on your best employees to pick up all the slack, but you can use them here and there to handle additional responsibilities when the moment requires it. Just make sure you reward them accordingly. Short-staffed businesses often experience very high levels of turnover because the work becomes more stressful for the people who remain.

You certainly don’t want to drive away you’re A-team, so call in the favors sparingly and make sure that your incentives are on point.

Avoid Efficiency Lags

As staff members age they inevitably fall out of touch with the most modern business practices. How could they not? Things change constantly, both in terms of what is considered best practices, and based on things like what technology is being used now.

If you’re twenty years out of college, you might not have your finger on the pulse of the latest industry trends. Upskilling is a great way to stay refreshed on what is going on in your chosen profession.

A Downside to Upskilling?

There are downsides and risks associated with upskilling your employees. Perhaps the most straightforward of these is that it takes time, and, by extension, money to teach people new things. Depending on your current resources, that might not be in the cards.

There’s also just the risk of alienating your staff. People work hard. They don’t really like being asked to work harder. You can edge around that particular issue by making professional development optional, but even then you run a bit of a risk. Yeah, you don’t have to do it but…you have to do it, right?
Read the room. There are times to upskill, and times to leave things be. As a decision-maker, it’s your responsibility to take an analytic view of the situation and go from there.

It’s also important to keep in mind that upskilling, or any other form of professional development is not a one-time thing. Technology will continue to change. Strategies will change along with it, and it will be time to refresh your staff’s knowledge all over again.

Learning and progress are important elements of growth, but remember that slow and steady can win the race here. You want to encourage your staff and help them grow. Not bombard them with new responsibilities.

*This article is written by Andrew Deen. Andrew has been a consultant for startups in almost every industry from retail to medical devices and everything in between. He implements lean methodology and is currently writing a book about scaling up business. You can follow him on Twitter @AndrewDeen14.

Back to top ↑

 

What’s keeping manufacturing CEOs up at night? From supply chain disruptions to a disengaged workforce and growing skills gap, there are challenges aplenty plaguing leadership teams. Here are the top five manufacturing issues along with solutions from USC Consulting Group that will help them sleep a little easier.

The Top 5 Manufacturing Issues Keeping Executives Up at Night Infographic

Problem: Retiring workforce

My best shift supervisor is retiring next month! He knows everything there is to know about the line. How can I possibly replace him?

“The median age of manufacturing workers is 48 and continues to grow older.”

Solution: Capture that knowledge!

Before your seasoned vets retire, create mentorship programs, have roundtable discussions and update manuals with their hard-earned know-how.

Problem: Skills gap + Jobs gap

I have positions to fill but I’m not finding any qualified candidates! How am I supposed to get the job done?

“Manufacturers will have 2 million jobs to fill by 2030. But there’s a skills gap out there. A sea of open jobs and few skilled people to fill them is a one-two punch.”

Solution: Build training into your budget

Skill them up yourself! Invest in training for new hires and partner with a local trade school or community college to target new grads.

Problem: Disengaged employees

Are my employees happy? It’s like they’re just going through the motions. Are they going to quit?

“Only 36% of U.S. employees are engaged at work and 74% are actively looking for a new job at any given time.”

Solution: Walk the shop floor

Talk to the team, ask how things are going and how you can help. If they’re short-handed, roll up your sleeves! Also, promote from within and invest in career development! It’s a proven way to build morale and engagement.

Problem: Supply chain disruptions

My line was down AGAIN because our overseas supply was stuck at a port. Again! We have high customer demand but can’t meet it because we can’t get the supplies we need!

“A 400% increase in shipping costs from China and a 45% increase in ocean freight wait times is expected to continue for 6 to 12 months, if not longer.”

Solution: Reshoring      

It has long been suggested as idealistic and beneficial for the country, yet unrealistic. That is, until now. It’s time. Reshoring is a way for U.S. manufacturers to invest in the country and claim valuable subsidies, while also shielding themselves from any potential global supply chain issues.

Problem: Inventory management

All of my departments have a different view on inventory management! Some want excess inventory. Others want it just in time. Do we have enough? Too much?

Solution: Sales, Inventory & Operations Planning (SIOP)

SIOP expands on S&OP by adding a crucial component: Inventory. It helps you wrangle your inventory management and achieve the optimal supply balance.

Want to learn more? Read What’s Keeping You Up at Night? The Main Concerns of Top Executives.

These aren’t the only challenges keeping CEOs up at night. At USC Consulting Group, we have more than 50 years of experience helping manufacturers find opportunities for greater efficiency and productivity. Call us today to talk about how we can help you get a good night’s sleep.

Looking for ways to improve your bottom line

Back to top ↑

 

Slowly but surely, consumers are returning to the marketplace in full force after a number of tumultuous years. According to Industry Week, consumer spending is up 20% from this time last year. While that number is great for a manufacturer’s balance sheet, there are still challenges in the industry that are keeping CEOs up at night. Here is a look at a number of concerns of top executives — and ways you can tackle them head-on to get a good night’s sleep.

Problem: Retiring workforce

Ah, retirement. The day valued, longtime employees get their gold watches and leave the plant for the last time. It’s great for the employee, not so much for their CEO. That’s because as retirees head out to enjoy their golden years, they’re taking all of the institutional knowledge they’ve learned over many years on the job with them. The median worker age as of 2018 was 44.1 years old — over two years older than workers in other industries. And that was in 2018, the most recent stat. Those folks are 48 now. But you don’t need stats to tell you that. A walk around your shop floor (or a talk with HR) will give you the lowdown on how many of your employees are nearing retirement.

Solution: Capture that knowledge

It pays to be proactive in most situations and this is one of them. Capture that institutional knowledge before your seasoned vets walk out the door. Create mentorships between older and younger workers. Film a roundtable discussion featuring your best older workers talking about the ins and outs they’ve learned over the years. Ask your seasoned vets to be part of updating your manuals. At USC Consulting Group, when we go into a manufacturing business to improve efficiencies, we understand that the people on your front lines are your greatest resource and our greatest ally in that effort.

Problem: Skills gap

The other side of the institutional knowledge coin is the lack of skilled workers to replace them. You’ve heard about the skills gap, certainly, and this is it. There is a dearth of qualified people out there. Or enough people. Manufacturers in the U.S. are expected to see 2 million unfilled jobs by 2030. It paints a grim picture for companies that aren’t planning or prepared for the future of their workforce.

Solution: Training

If you’re not finding skilled people, one solution is to create robust training programs that will get them the skills they need. It’s an investment, yes. But a worthy one.

Another tactic: Partner with a local trade school or community college to target upcoming grads.

Problem: Employee engagement (or lack thereof)

Are your employees happy? Do they feel valued and appreciated? If you don’t know, now’s the time to find out. To add to the problem of an aging workforce retiring and taking their skills with them, the new generation of warehouse and manufacturing workers are less and less inclined to begin and continue careers in the industry. The Great Resignation is a countrywide juggernaut that has prompted many of the younger workers to resign from and reject positions where they don’t feel adequately fulfilled or see a future career. The manufacturing industry is not immune.

The younger generation of workers needs validation and appreciation to stick around. Only 36% of U.S. employees are engaged at work and 74% are actively looking for a new job at any given time with their current employer.

Solution: Start walking the floor

Walking the floor is an oft-overlooked yet crucial way for managers and executives to engage with their team, foster relationships and directly affect employee retention in a positive way.

Getting out onto the shop floor shows employees that their employer cares about them and their career. For the employer, this strategy fosters retention while also affording an opportunity to discover any standout employees or ways to improve day-to-day operations. This directly combats an aging workforce by keeping new employees around long enough to become skilled themselves.

Another tactic: Invest in career pathing for your employees. It starts with promoting from within and giving people a roadmap for how to get there. It’s a powerful tool. In fact, 94% of employees said they would stay at a job that invested in their career development, according to a survey on LinkedIn.

Problem: Worldwide supply chain disruptions

While the COVID-19 pandemic has slowed down, the manufacturing problems it caused are still very prevalent in the industry today. Bottlenecks in every level of the supply chain and overcrowded shipping ports have become the norm over the past few years — with little signs of slowing.

According to Industry Week, a 400% increase in shipping costs from China and a 45% increase in ocean freight wait times — both increases relative to last year — is a trend that could continue for 6 to 12 months, if not longer.

Solution: Reshoring

Reshoring has long been suggested as idealistic and beneficial for the country, yet unrealistic. That is, until now.

The dramatic increase in outsourcing costs and interminable shipping wait times has resulted in many Fortune-500 companies — General Motors, Toyota and Samsung, to name a few — making considerable investments in the improvement, expansion and new developments of their manufacturing plants in the U.S.

Reshoring is a way for U.S. manufacturers to invest in the country and claim valuable subsidies, while also shielding themselves from any potential global supply chain issues.

Problem: Inventory management

Dialing in proper order quantities, reorder triggers and keeping an accurate and adequate lead time have long been hot buttons for manufacturers. The aforementioned bottlenecks and disruptions have not helped.

The issue compounds when all departments have a different viewpoint on the situation: operations, sales, finance and business executives can all have contrasting requirements and best practices when it comes to an inventory management philosophy. Any divergence in departmental expectations mixed with a lack of communication can spell disaster for any manufacturer.

Solution: SIOP

SIOP expands on S&OP — the business management process that involves sales forecast reports and planning for demand and supply — by adding a crucial component: Inventory.

SIOP is a powerful tool that helps your company get departments in sync, ensures that everyone is on the same page and realistic about the process, helps you manage and roll with changes, and measures performance.

“A key to SIOP is to emphasize inventory as a strategic tool to help offset variation in either demand or production issues,” explains David Shouldice, Senior Vice President and Managing Director at USC Consulting Group. “One lever of control in the SIOP process is to make inventory harder working as a strategic tool.”

SIOP helps you wrangle your inventory management, achieve the optimal balance between not enough and too much, and settle back into Lean manufacturing principles that can eliminate waste and help ramp up your efficiency.

These aren’t the only challenges keeping CEOs up at night. At USC Consulting Group, we have more than 50 years of experience helping manufacturers find opportunities for greater efficiency and productivity. Call us today to talk about how we can help you get a good night’s sleep.

Contact USC Consulting Group

Back to top ↑