August 11, 2025 Rethink the Line: Solving Manufacturing’s Talent Crisis

With retirements rising and skills shrinking, it’s time to replace outdated hiring with smarter, people-first workforce strategies.

By Heidi Barnett, President of Talent Acquisition Solutions, isolved

For many manufacturers, the talent crisis is no longer a looming threat—it’s a present and persistent operational challenge. In 2024 alone, the manufacturing sector experienced significant job losses, driven by the retirement of seasoned workers and the growing mismatch between job requirements and available skills. As we navigate 2025, it’s time for manufacturing leaders to stop treating talent acquisition as a checkbox task and start seeing it as a competitive advantage.

The future of manufacturing depends on our ability to attract, retain, and empower the next generation of skilled workers—and that requires fundamentally rethinking how we hire.

The Retirement Cliff and the Technical Skills Gap

The manufacturing sector has always valued expertise passed down through experience. But today, that pipeline is shrinking. Baby boomers—the backbone of America’s industrial workforce—are retiring at scale, taking with them decades of technical knowledge. What’s replacing them? Often, an applicant pool lacking the specialized training or experience needed to keep production lines running and quality standards high.

As I’ve seen across multiple industries, especially manufacturing, organizations are facing massive skill shortages. In fact, 62% of HR leaders say they’re navigating an active talent crisis. This skills gap isn’t just a hiring problem—it’s a bottom-line issue. I’ve worked with manufacturers who’ve told me their biggest constraint isn’t materials or machines – it’s people. When vacancies go unfilled or underfilled, operations slow, quality declines, and the capacity for innovation suffers.

Why Traditional Hiring No Longer Works

Conventional hiring practices—relying on resumes, job titles, and degree-based qualifications—aren’t cutting it anymore. These outdated filters overlook promising candidates and reinforce bias, while failing to account for the evolving skills manufacturers truly need: adaptability, cross-training potential, and tech proficiency.

Manufacturing leaders must move toward skills-based hiring. This approach evaluates candidates based on what they can do—not just where they’ve worked or what degree they hold. At isolved, we’ve seen firsthand how hiring for potential over pedigree unlocks talent pipelines that would otherwise be ignored. For example, by focusing on outcomes and assessment data instead of résumés, we discovered a high-performing candidate segment: moms returning to the workforce. Despite résumé gaps, their assessment scores aligned closely with our top performers.

AI: The Catalyst for Smarter, Faster Hiring

Modern hiring demands modern tools—and artificial intelligence (AI) is fast becoming the game changer for manufacturers looking to scale hiring intelligently.

AI-powered platforms now help manufacturers:

• Source faster by combing vast talent databases for high-skill matches.
• Screen smarter by evaluating skills, not just job history.
• Reduce bias by anonymizing early-stage assessments.
• Predict retention using behavioral and performance analytics.

But let’s be clear: AI doesn’t need to replace the recruiter – it can amplify them. Let AI handle the repetitive admin work, so recruiters can focus on what matters: seeing potential, creating connections, and building great teams.

Hiring for Agility in a Digital World

Manufacturing isn’t exempt from digital transformation. As robotics, IoT, and automation take root on the production floor, the talent required to run and maintain these technologies is changing. Yet our job descriptions haven’t caught up.

Too often, job ads list “nice to have” degrees and generic requirements that deter great candidates from applying. Research shows that qualified candidates, especially women and underrepresented groups, may not apply unless they meet nearly every listed qualification. To compete, manufacturers must reframe job descriptions as marketing tools—highlighting outcomes, growth opportunities, and the culture of the company rather than rigid credential checklists.  I tell our clients that if your job ad sounds like a compliance or legal document, don’t be surprised when it doesn’t inspire anyone to apply. We need to connect and get them excited to learn more.

Upskilling as a Retention Strategy

Hiring for potential also means investing in learning and development. When manufacturers commit to ongoing training and upskilling, especially in technical and digital competencies—they not only bridge current skills gaps but foster loyalty. Nearly 47% of employees say they’re less likely to seek a new job if their employer offers relevant upskilling opportunities.

This isn’t just a retention strategy, it’s a resilience strategy.

Call to Action for Industry Leaders

If you’re leading a manufacturing business today, consider these imperatives:

• Audit your hiring process. Are your tools helping you uncover hidden talent—or filtering them out?
• Drop the résumé-first mindset. Use assessments and structured interviews to see the full person.
• Partner across departments. HR, IT, and operations leaders must work together to embed talent acquisition into the organization’s strategic fabric.
• Prioritize people development. Offer clear learning paths to close skills gaps and retain top performers.

Time to Rethink the Line

Manufacturing is at a crossroads. Clinging to legacy hiring approaches will only deepen the skills crisis. But by embracing skills-based hiring, leveraging AI responsibly, and investing in people, manufacturers can build stronger, more adaptive workforces ready to meet the challenges—and opportunities—of tomorrow.

It’s not just about filling positions. It’s about redefining what makes a great hire.

About the Author
Heidi Barnett is the President of Talent Acquisition Solutions at isolved, where she leads the strategy behind cutting-edge recruitment technologies. A former CEO of ApplicantPro, Heidi is known for her belief that “Hiring is just marketing” and for helping organizations boost applicant flow by over 200%. She’s a champion for women in leadership, a multi-year Top Workplace honoree, and a passionate advocate for building inclusive, high-performing teams. When she’s not transforming how companies hire, Heidi is a proud wife, mom of four, and mountain adventurer.

Read more from the author:
Hiring smarter: How AI reshapes the talent acquisition landscape – Utah Business | Utah Business, 6/3/2025

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