The Future of Industrial Manufacturing: Embracing an Aging Workforce for Success

A new global study from Bain & Company reveals a momentous shift in the job market, with a whopping 150 million jobs projected to shift to workers over the age of 55 by 2030. In the Group of Seven countries, experienced professionals will comprise more than a quarter of the workforce by 2031. This transformation is not limited to developed nations; even China's elderly population is set to double by 2050. As the workforce ages, businesses in the industrial manufacturing sector must adapt and capitalize on the opportunities presented by this demographic shift.

Despite the United States being a global leader in advanced technologies, the country has experienced a decline in production and employment in various advanced manufacturing industries. The trade balance in advanced technology products has shifted from surplus to deficit since 2001.

Manufacturing is a significant sector in the U.S. economy, contributing 11 percent of the GDP. However, employment in manufacturing started to decline in the late 1990s, with nearly six million workers losing their jobs from 2000 to 2010. Although some jobs have been regained, manufacturing employment recently surpassed its 2020 peak for the first time since 1978.

The COVID-19 pandemic exposed vulnerabilities in manufacturing supply chains, leading to shortages of critical products like medical supplies, minerals, and semiconductors. To strengthen these supply chains, small and medium-sized manufacturers will require support from the U.S. government and larger customers and suppliers.

According to the National Strategy for Advanced Manufacturing, the U.S. government seeks to invest in advanced manufacturing to regain leadership in the field and secure the nation's industrial base, which is essential for military capabilities and safeguarding democracy. The discussed strategy is an update to the 2018 Strategy for American Leadership in Advanced Manufacturing, mandated by the America COMPETES Reauthorization Act of 2010, with public input and federal agency participation.

Understanding the Shift

The shift towards an aging workforce is a global phenomenon influenced by various factors, including declining fertility rates and extended education. Interestingly, Japan, Europe, and the U.S. are already witnessing significant numbers of workers aged 55 and above, making up almost 40%, 25%, and 30% of their respective workforces. Businesses need to be proactive in preparing for this change as the trend of earlier retirement is reversing, and an increasing number of retirees are returning to the labor force.

Meeting the Needs of Older Workers

To thrive in the evolving industrial manufacturing landscape, companies should recognize the distinct priorities of older workers. Studies show that while younger professionals are primarily motivated by competitive compensation, older employees seek "interesting work" that offers autonomy and flexibility. Many are also eager to master their skills and contribute to positive social impacts. Understanding these shifting priorities is essential for businesses aiming to attract and retain talented older professionals.

Embracing Targeted Interventions

While several countries are increasing retirement ages, companies cannot rely solely on government policies. Instead, they must implement targeted interventions to address the unique needs of older workers. Investing in recruiting, retaining, reskilling, and respecting the strengths of this demographic is crucial for long-term success. Surprisingly, a 2020 global employer survey found that only about 4% of firms had committed to programs supporting a multigenerational workforce. Businesses must take proactive steps to tap into the potential of older workers.

Designing Workplace Experiences

To retain older workers, businesses should design workplace experiences that align with their motivations. Training programs must be tailored to cater to the pursuit of interesting work and encourage participation across all age groups. For instance, providing tech-skills training to the 55 to 64 age group can help them remain relevant in the evolving industrial landscape. Additionally, mentoring opportunities can be fostered to leverage the unique benefits that older workers bring to the workplace, enriching the overall organizational culture.

Automation Can Be a Response to an Aging Workforce

The manufacturing sector's productivity has been rising substantially in recent years. Collaborative robot use is one technique to boost productivity. 

With single day installation and programming similar to that of a smartphone, a cobot is versatile and it's easy to give it new duties to perform. A cobot may accomplish the same thing for a 40-hour workweek while also carrying out a different task each day. You may, for instance, search every day for areas of the production process where the robot might be useful. 

Cobots are much more accurate than humans are. Take the Universal Robots arms that can execute precision tasks with continuity. A cobot will also always do duties with the same power and will never stray from its course of action. For instance, while tightening screws, the same pressure and tension will always be used, ensuring consistency in quality. 

A cobot is made to work alongside people, not to take the place of people. Cobots, often known as people-focused robots, can make and improve the job that humans do. Robots can carry out dirty, dangerous, dull, tedious, or repetitive activities, freeing up workers' attention for more important ones. Consider quality assurance and upkeep, but also how working with a cobot to assemble a product is a possibility. For instance, the cobot might screw a product so that the worker can finish it off later in the process.

The industrial manufacturing sector is on the cusp of a significant transformation with the workforce increasingly composed of experienced professionals over the age of 55. Companies that proactively embrace this demographic shift by understanding and meeting the needs of older workers will gain a competitive advantage. Investing in automation, designing appealing workplace experiences, and respecting the strengths of older workers will create a thriving and dynamic work environment. As businesses adapt to the changing landscape, they can harness the full potential of an aging workforce to secure a prosperous future in the industrial manufacturing sector.

Book a demo of collaborative robots today and discover how this automation tool can enhance your manufacturing processes and provide an alternative solution to an ageing skilled labor force.

Sources: https://www.whitehouse.gov/wp-content/uploads/2022... https://www.cnbc.com/2023/07/19/aging-workforce-ol...