Manufacturing and Value Chains

Convening with purpose: The roadmap to a sustainable workforce in advanced manufacturing

Leadership is key to cultivating a sustainable workforce.

Leadership is key to cultivating a sustainable workforce. Image: Getty Images/iStockphoto

Stephanie Wright
Chief Operating Officer, US Center for Advanced Manufacturing
Kerry Ebersole
SVP and Head of Talent & Strategy, State of Michigan
  • Advancing manufacturing must train its workforce to adapt to the rapidly evolving demands of the sector.
  • Purposeful leadership and dynamizing collaboration are needed to nurture a sustainable workforce.
  • The US Center for Advanced Manufacturing has engaged over 300 leaders across 15 leading industries to understand how to implement this transformation.

In advanced manufacturing, building a sustainable workforce requires cultivating a resilient, adaptable labour force that can keep pace with rapid technological advancements. As the industry evolves, teams need ongoing training to bridge critical skill gaps and meet future demands, including unknown requirements. By investing in training, companies ensure their workforce remains agile and capable, which is crucial for sustaining a competitive edge and supporting long-term growth.

In a recent survey by the World Economic Forum, 60% of surveyed respondents believe that their workforce needs training to bridge their current skills gap; only 23% stated that the majority of their workforce is equipped with the skills they will need to operate successfully by 2030. Eighty-five per cent of business leaders recognize the growing importance of integrating sustainable workforce models into their strategies, such as a robust talent pipeline, rotational programmes, next-generation leadership development and transformation training. These strategies are expected to be even more critical over the next five years, requiring long-term investment and board-level commitment to development.

Top sustainable workforce priorities for executives.
Top sustainable workforce priorities for executives. Image: World Economic Forum/Kearney

Collaboration between industry, academia and government is essential to driving these initiatives forward. By aligning efforts at local, national and global levels, we can create a workforce equipped to thrive in the future of advanced manufacturing. From upskilling to developing innovative training models, the focus is on building a talent pipeline that supports long-term sustainability across the sector.

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But what is most apparent is that leadership transformation drives sustainable workforce solutions. The US Center for Advanced Manufacturing has engaged over 300 leaders across 15 leading industries to understand why leaders must commit time, energy and financial investment to address the issue. We must spark engagement and passion from bottom to top within our organisations, especially on the shop floor.

Leadership and convening

The call to action is to invest in workforce strategies that focus on workers' capacity to handle increasing demands and the complexities of digital transformation. This means moving beyond worker efficiency to enhancing operators' ability to be and feel effective. Organizations that have integrated the first step of upskilling and reskilling their workforce are next faced with the question of ensuring career transitions are effective and efficient.

Convening with industry peers is a means of defining the problem, and creating frameworks to tackle these challenges in parallel. As a driving force in representing workforce needs in the ecosystem, the US Center for Advanced Manufacturing has been called to convene cross-sector industry leaders to uncover innovative solutions that can move the industry forward.

At our recent event in Detroit, Michigan’s innovation hub, the global venture platform Newlab and several multinationals took centre-stage. Organizations like FANUC Robotics, GM Ventures, Bedrock Construction, and Carhartt Apparel highlighted the value of bringing together leaders from the mobility, construction, and textile industries on the same stage. Despite being vastly different industries, the common thread uniting them was a shared commitment to fostering innovation and cultivating a robust workforce talent pipeline.

Karissma Yve, CEO and Founder of jewellery manufacturer Gildform, championed this need for progress. “If we are not having a challenge, we are not innovating,” she said. It’s important to acknowledge that industry, academia and government have taken various approaches to workforce development, some of which have not yielded the innovative outcomes manufacturing needs. Now is an opportune moment to leverage these experiences as a springboard for meaningful change. As US Center partner Debra Kalikow, Senior Director of Product Manufacturing & Innovation at Ralph Lauren, recently stated: “If there is no failure, there is no new path.” Connecting innovation, manufacturing and training simultaneously is the key to accelerating advanced manufacturing.

Partnering for innovation

Collaboration and partnership are critical throughout the entire ecosystem. The US Center’s collaboration with states such as Michigan and global players like Newlab exemplifies a common vision: to build an ecosystem dedicated to shaping the future of manufacturing that will re-establish Detroit as a global leader in innovation. Detroit’s second-placed ranking on the list of Best Venture Capital Ecosystem Worldwide, just behind Dubai, demonstrates this potential.

Bridging the gaps in partnership with academia and industry, Michigan leads the nation in programmes such as The Michigander Scholars, an important public-private partnership with some of the state’s major advanced manufacturing employers and universities. CNN recently highlighted the programme as among a trend of many states and cities that are seizing the opportunity to raise economic development by attracting the workforce through innovative incentives.

Looking ahead, there is a need to work collaboratively on the challenges we face in upskilling and reskilling our advanced manufacturing workforce by cross-convening and building momentum for public-private partnerships that can drive solutions:

The Center’s workforce community view the following strategies as most critical:

Develop a sustainable workforce strategy with long-term investment:

  • Project readiness that includes labour-readiness.
  • Establishing common metrics to show workforce readiness, which allows for a deeper review of culture readiness; the evaluation of an organization’s ability to accept and adapt to change.
  • Translating data into accountability and performance of leaders.

Engage more deeply with partners from different ecosystems:

  • Alternative higher education and industry collaboration.
  • Redefining educational models, hiring practices and workforce development, focusing on skills in a way that requires cultural transformation from the top down.
  • Creating a baseline of skills beneficial across sectors: agility and flexibility are key components of the curriculum as they enable effective adaptation in a dynamic environment.
  • Holistic approach to standardization of certifications, hiring processes, restructuring practices and access to funding.

Ignite a sense of urgency to accelerate solutions:

  • Define the availability challenge. There is a surplus of individuals with a willingness to work.
  • Commit to invest in people.
  • Design collaborations and convening to intensify progress.

Our community is also conscious that these efforts require the support of other sectors. For example, in Michigan, the policy change efforts are spearheaded by the Michigan Economic Development Corporation’s new Talent Solutions division, which is leading the largest state talent attraction and retention initiative in the US. This is designed to develop and deliver talent specific to a new, tech-forward economy in areas where the state has the most opportunity to grow advanced manufacturing, such as EVs, mobility and semiconductors. Michigan has designed its Talent Action Team to bring together higher education institutions, elementary and high-school leaders, workforce development providers and select employers in strategic partnerships.

It is time for an “all hands on deck” approach, because building a sustainable workforce is a critical issue that does not just affect a single organization, industry or region. This is a global challenge that is urgent and important – but to which solutions exist. As discussed in this year’s State of US Manufacturing report, innovation and solutions come from building the capacity to adapt and improve through adversity. By integrating our individual knowledge and expertise together, we are better equipped to navigate and solve industry problems.

The community that the US Center is building highlights the inherent strength of the US, which is able to embrace failure as an advantage and cultural strength. Failure to prioritize workforce development has led us to this initiative to focus on smart technology and leadership skills, such as motivation, empowerment and coaching, that can contribute to developing the strategies we require. Partnership is crucial: We can do this by convening with intention and committing to actions collectively.

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