March 18, 2025 Upskilling for a Competitive Workforce in 2025

Manufacturers must upskill workers now to stay competitive in 2025 and thrive in the digital age.

By Bill Rokos, CTO at Parsec Automation

The manufacturing industry is at a crossroads. As the global economy continues to evolve, so does the demand for advanced technologies such as artificial intelligence (AI), automation, and the Industrial Internet of Things (IIoT). Manufacturers are looking to embrace these innovations to streamline operations, enhance productivity, and stay ahead in a highly competitive global market. However, amid this technological revolution, a significant challenge remains: the workforce.

For many manufacturers, staffing is an uphill battle. More than half (52%) of manufacturers cite technology specialists as the most challenging role to fill, and 44% cite engineers as such. Manufacturing jobs that once required basic training now demand proficiency in digital tools, automation systems, and data analysis. For example, maintenance technicians who previously relied on manual inspections must now interpret data from IoT sensors and predictive analytics platforms to optimize asset performance. Similarly, quality control specialists must leverage AI-powered vision systems to ensure product consistency.

With emerging technologies poised to reshape the industry, the urgency to invest in workforce development has never been greater. If manufacturers can’t align talent with production requirements, they may inadvertently derail their own progress toward digital transformation.

Taking the long view

To be sure, addressing the skills gap is a pressing need—one that manufacturers should prioritize as soon as possible—but it’s about more than simply meeting production needs or making the day’s quota. It’s about taking a long-term view of a facility.

To effectively upskill employees, manufacturers must first lay the groundwork for success. Upskilling is not as simple as enrolling employees in a course—it requires a comprehensive, data-driven strategy that paves the way toward a more efficient facility. Manufacturers will need to think holistically about the future of their business if they hope to embed advanced technology in their operations and guide teams to use it. This means aligning technology with overall business goals, ensuring that every aspect of the operation, from workflows to systems, is optimized for the digital age. Technology isn’t just part of the big picture; it’s the lens through which you view it.

Nearly half (44%) of manufacturers have yet to implement a data-driven strategy into their operations, which illustrates the industry’s opportunity to take on this shift in mindset. Centering their strategy around data will help manufacturers ensure that their workforce is not only equipped with the skills needed to use advanced tools but also empowered to make informed decisions that can enhance productivity and innovation. As manufacturing environments become more complex, employees will be required to understand and leverage data in increasingly sophisticated ways.

By leading with strategy, companies can bridge the gap between technological potential and real-world application, ensuring that their efforts will lead to meaningful business outcomes. Then, they can start to think tactically.

Actionable steps for manufacturers

Upskilling will look different for every organization, but there is a benchmark to aim for. Leaders should ensure any upskilling initiative aligns with business objectives and directly contributes to operational goals, enhancing both workforce capabilities and overall business performance.

Broadly, though, leaders might consider taking the following actions:

• Identify critical skills that are necessary for adopting new technologies. This requires a deep understanding of not only current workforce capabilities and production requirements but those that will be essential for the future.
• Provide ongoing training. Upskilling should not be a one-time event but rather a continual process. Companies that offer regular training sessions, certifications, and hands-on experience ensure their employees remain current with evolving technologies.
• Collaborate with educational institutions. By building partnerships with colleges, universities, and trade schools, manufacturers can help establish a strong pipeline of skilled talent. These collaborations help align curricula with industry demands, ensuring that graduates are ready to contribute from day one.
• Foster a culture of learning within the organization. Encouraging a growth mindset across all levels of the company helps employees embrace change rather than resist it. Providing incentives for continuous learning and linking skill development to career advancement opportunities can further motivate employees to engage in upskilling efforts. When upskilling is ingrained into the culture of an organization, it becomes a driving force behind innovation and adaptability.

The Path Forward: Building a Competitive Workforce

Upskilling is no longer an optional strategy; it is essential for surviving and thriving in an increasingly tech-driven environment. The manufacturers that take decisive action now will be the ones best positioned to navigate ongoing disruptions and sustain long-term growth.

With a skilled workforce at the reins, manufacturers can navigate the complexities of Industry 4.0, drive innovation, and remain competitive in an evolving market. As the industry moves closer to realizing the full potential of digital transformation, those who prioritize workforce development will reap the benefits. The future of manufacturing isn’t just about technology—it’s about the people who make it work.

About the Author:
Since 1999, Bill has spearheaded the development of Parsec’s manufacturing operations management (MOM) platform, TrakSYS. As Parsec’s longtime CTO, he has worked with many of Parsec’s customers worldwide. From implementing and architecting TrakSYS deployments to designing the latest features, Bill has been instrumental in Parsec’s (and TrakSYS)’s impact and success.

Read more from the author:

3 Operations Areas Where Tech Can Help Manufacturers Survive Peak Seasons | Forbes, January 24, 2025

Why Upskilling is the Best Gift Leaders Can Give Their Teams | The Business Journals, December 26, 2024

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