Companies often no longer view location decisions solely as real estate choices, but as strategies for optimizing talent and efficiency and minimizing risk. Employing digital tools to enhance talent acquisition: Many manufacturers face challenges in acquiring the right talent to meet current and future demand. ![]() Potential approaches to hiring amid a tight labor market include: While manufacturers have made progress in adapting their workforce policies to improve talent attraction and retention, additional strategies can be considered in 2024 to continue to build on this momentum. 9Įnhancing workforce strategies for a better future Notably, there has also been a 19% reduction in the average number of voluntary separations over the same period. Rewarding the workforce: Per Deloitte analysis, between Q1 FY2022 and Q1 FY2023, there has been a 4% rise in the average hourly earnings of employees.Other forms of flexibility offered to production workers include remote work, compressed workweeks, and the opportunity to swap or split shifts. Keeping flexibility at the forefront: In a recent survey conducted by NAM, 46.8% of surveyed manufacturing executives pointed out that their company offers flexible scheduling to production workers. ![]() 7 Manufacturers have been proactive about adjusting their workforce policies to improve employee attraction and retention. In a recent survey conducted by the National Association of Manufacturers (NAM), almost three-quarters of surveyed manufacturing executives feel that attracting and retaining a quality workforce is their primary business challenge. Labor market tightness has continued into 2023 (figure 2), and the same trend is expected for 2024. Considering the immense scope of this technology, we have presented generative AI use cases for each trend.ġ. It could lead to reduced costs across manufacturing organizations and could serve as another tool for navigating a challenging labor market. Generative AI is expected to hold immense potential in areas such as product design, aftermarket services, and supply chain management. 6 According to another recent survey, manufacturers anticipate that the industrial metaverse could lead to a 12% gain in labor productivity, which might help address the ongoing labor shortages. Companies seem to be embracing a smart factory approach, exploring the industrial metaverse, and investigating the possibilities of generative AI, one of the latest additions to the arsenal, as tools they can use to add value to their operations.Ī recent Deloitte study indicated that a striking 86% of surveyed manufacturing executives believe that smart factory solutions will be the primary drivers of competitiveness in the next five years. With a persistent search for efficiency and focus on building resilience across the organization, many manufacturers look to continue to pursue their digital transformation objectives-even as some may be considering pausing investments because of the challenging business environment. Technology is poised to play a significant role in supporting manufacturers in taking on the challenges they may face in 2024. Product electrification and decarbonization.Aftermarket services as a potential differentiator. ![]()
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