April 18, 2024 Manufacturing Has a $225.8 Billion Dollar Problem

Manufacturers can amplify productivity, secure success, and recoup billions by meeting workers where they’re at.

The United States (US) manufacturing industry is facing a $225.8B absenteeism problem. The impact of individual absent workers is compounding to pose significant consequences – amassing hundreds of thousands of lost hours, slashing productivity, and fueling a continual need for overtime (accompanied by its partner in crime – burnout). In fact, no-show workers drive $50B in downtime costs for manufacturing companies per year, as managers pause to readjust production plans and backfill roles. The domino effect of absenteeism is powerful, sweeping away billions in potential revenue that could be supporting technology development, worker benefits, and the growth of US manufacturing as a whole.

Tracking the Time Lost

From the moment team members are absent from the work site, productivity suffers. Whether it’s the site management team scrambling to locate and replace staff, to on ground crews picking up the slack and hours of their peers – everyone suffers. But arguably none more than the companies’ bottom line. For business and operations teams, quotas are not dependent on worker attendance, it’s the time required to meet them. Nearly 50% of overtime is used to compensate for poor attendance, with many teams consistently running overtime six to seven days per week, including shifts up to 10 hours or more. The absenteeism of skilled and specialized workers within the factory lines is even more disastrous as it hinders production entirely – meaning automotive factories cannot complete cars or food and beverage companies cannot complete customer orders.

No-Shows – Productivity’s Biggest Hurdle?

Between paid time wasted modifying plans and running overtime shifts to meet production goals, the estimated loss of productivity due to unplanned absence is 40% – putting teams at nearly half capacity. But the golden ticket question – why aren’t workers just calling out? Absences will always occur in any industry. Workers deserve time away even if it’s unexpected. Yet, industry jobs’ process and protocol for calling out is inconvenient, so many workers simply don’t know how to do so properly – nor do they want to go through the rigorous and timely hoops.

Clipboards Aren’t Cutting It?

For desk workers, calling out is often as simple as a quick IM message and a request via an HR management platform housed on their company phone or computer. Desk workers have long been supported by resources that streamline management and boost success. Alternatively, hourly workers – or deskless teams – have been left in the dark by their companies to communicate appropriately.

Industry management systems are long overdue for an upgrade. More than half of large employers (1,000+ employees) use a manual process to manage employees and absenteeism. Most manufacturers still rely on clipboard communication for training matrices and overtime sign-ups. Clocking in is done primarily through punch clocks – which fail to provide automated overviews of attendance, and even if they did, “buddy punching” would skew results. Tardy and absent notices are all handled via phone, deterring workers from calling and contributing to managers wasting up to 4 hours a day listening to voicemails. The system does not promote communication or facilitate optimized results – creating overly complicated terrain for management to navigate while inconveniencing workers in a way that prohibits communication or positive work culture.

Herein lies the industry’s greatest obstacle to addressing the absentee crisis – connecting a workforce whose employees have varied access to technology, and who are largely averse to work-related applications.

Tailor made for the trade(s)

Technology that is tailor made for trade, is not only crucial for companies to operate at peak performance, but it’s also deserved by the workers bolstering their fields. Industry leaders must meet deskless workers where they’re at. This premise was the catalyst for TeamSense – an app-free platform that connects hourly workers and employers through text; the service is empowering employees to easily call out, ensuring data transparency across staff, management, and HR, and allowing managers to track attendance, seasonal staffing needs, and more while cutting the time typically required to do so.

The reliance on outdated HR practices and consistent lack of trade-appropriate technology is fueling a vicious cycle of absenteeism, lost time, limited productivity, and substantial revenue loss. Improving employee management technology is not just about digitizing manual processes; it’s about reimagining them entirely to better serve folks at every step of the supply chain. Companies like Pella Corporation and HelloFresh aren’t just recouping lost time and money — managers are gaining deeper insights into their employees and workforce needs, while improving productivity, fostering a stronger sense of community and accountability, and reducing absenteeism. Investing in the development of technology, crafted with deskless workers in mind, is key to securing companies’ individual potential as well as continuing the growth of US industry at large.

About the Author:
Sheila Stafford is the CEO and Co-Founder of TeamSense – an app-free platform connecting hourly workers with their companies. Sheila has worked directly in “each line of the P&L,” and  has led success with industry powerhouses including General Motors, Whirlpool Corporation – where she managed product development for the multi-billion dollar North American Refrigeration business – and Fluke Corporation, where she was at the helm of one of the brand’s most successful product launches. Sheila’s deep understanding of the factory floor, her ability to deliver solutions that solve customer pain points, and her desire to lead a company led her to leap into the start-up world, founding TeamSense in 2020 with a mission to connect, enable, and engage hourly workers.

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