Solving the Manufacturing Labor Shortage
Modern technology key to overcoming
the growing labor crisis
When manufacturing expert Doug Bulla meets with clients, there’s one issue that comes up time and again: the rapidly growing labor shortage. As a 30-year industry veteran and SVP of Solution Development for MCA Connect, Doug has watched the shortage evolve from a future problem to an immediate crisis.
We have a significant people constraint issue. I've walked into countless accounts where they told me everybody was going to retire in the next five to seven years. This constraint has been an issue for years, but the pandemic really accelerated it.
An escalating crisis
According to the 2020 government census, nearly one-fourth of the manufacturing workforce is 55 or older. While there are nearly half a million job openings now, a recent report predicts a shortage of 2.1 million American manufacturing workers by 2030. And this gap could negatively affect the U.S. economy by more than a trillion dollars.
We have a perception problem, people think it’s a stationary, low-progression and low-knowledge industry. And that’s not the case.
Executive Director
Carolyn Lee
Doug Bulla
SVP Solution Development
There’s also the problem of aging technology and outdated processes. The “green screen” technology many manufacturers still rely on is inefficient and unappealing, as is the lack of digital processes.
So why aren’t there enough workers to replace those retiring? Young workers just aren’t excited by the industry. The report found that 36% of manufacturing jobs remained unfilled due to lack of interest in manufacturing. This disinterest is often due to misconceptions about career opportunities.
of the manufacturing workforce is 55 or older.
Nearly
one quarter
According to Forbes, 95% of manufacturers still use paper-based vs. digital processes, while 27% use paper for over half of all activities.
95
%
Paper-based processes
5
%
Digital processes
So, what happens next? With so many workers set to retire in the next few years, and not nearly enough workers to replace them, how can manufacturers stay in business?
Modern technology
is the only solution
Manufacturers are never going to fill the ever-growing labor gap. Instead, it’s time to try something new. “Brain drain/losing tribal knowledge is a big issue for manufacturers, but they’re never going to find enough people”, Doug said. “Modern technology is the only way to solve it.”
According to Doug, manufacturers must be proactive. With technology like artificial intelligence and machine learning, manufacturers can automate decision making while uncovering a wealth of new data.
“Investments in robotics and process automation open a great opportunity from a data perspective. This is because it’s very easy to get robots to report what they do, when they do it, as well as what’s good and what’s bad. There’s a real shift in the data manufacturers can get to make faster, better decisions.”
Industry experts widely agree that data is the future of manufacturing. According to the World Economic Forum, effective use of data in manufacturing can make businesses more sustainable and more profitable.
98% of manufacturing executives surveyed by Forbes reported immediate productivity gains after connecting their systems to the cloud and leveraging new data.
98
%
reported immediate gains
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Leading the way with
The manufacturing experts at MCA Connect have witnessed the benefits of data firsthand. Partners with Magpul Industries since 2014, we've helped the manufacturer create a strong foundation for strategic insight. As a result, Magpul reduced on-hand inventory by 36% and gained full visibility into the supply chain, open orders, and inventory levels. In fact, Microsoft recently highlighted the success story on their partner blog.
Our partnership with a major automotive assembly plant is another example. After completing a Data Value Assessment for the plant, our team discovered the procurement department spent 58% of their reported time on inefficient processes. Our team recommended an approval engine to quickly create approval processes and notifications, with estimated time savings of 600-800 hours per week.
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36
%
reduction of
on-hand inventory
Read Microsoft's
Case Study
Read Microsoft's
Case Study
600-800
hours saved per week
Together with Microsoft, we put the people, processes, and technology in place to create a modern work environment. As a Microsoft Supply Chain Platform launch partner, we help manufacturers unite their data and create end-to-end visibility across supply chains.
The labor shortage is a crisis manufacturers can no longer ignore, and modern technology is the only way to solve it.
Manufacturers have to modernize anyway, so why not do it with
the technology industry leaders, Microsoft and MCA Connect?
Doug Bulla
To read success stories and learn more about MCA Connect.
Source links for reference
https://www.census.gov/library/stories/2020/11/manufacturing-faces-labor-shortage-as-workforce-ages.html
https://www2.deloitte.com/us/en/insights/industry/manufacturing/manufacturing-industry-diversity.html
https://www.cnn.com/2021/05/04/economy/manufacturing-jobs-economy/index.html
https://www.forbes.com/sites/forbestechcouncil/2022/10/31/manufacturers-are-making-progress-toward-industry-40-but-we-still-have-work-to-do/?sh=51d17c157bdc
https://www.weforum.org/agenda/2022/09/manufacturing-data-advanced-analytics/
Doug Bulla
Read the
Success Story
CLICK HERE