How do we build and secure the manufacturing workforce of the future?

Global manufacturing is at a critical inflexion point. The rapid pace of digital transformation — driven by automation, artificial intelligence (AI) and evolving supply chain dynamics — requires that organizations adapt swiftly to remain competitive. Yet, digital transformation shouldn’t be thought of as merely adopting cutting-edge technology. Instead, it must be understood as value transformation: a deliberate and continuous process of identifying how technology can drive business impact. The ultimate objective should always be to create meaningful outcomes, whether by improving efficiency, elevating customer satisfaction or unlocking growth.

This mindset is especially important given the stark reality that roughly 70% of large-scale transformations within organizations fail, according to McKinsey research. To succeed, manufacturers must prioritize a new approach — one that places building and securing a capable workforce at the centre of their strategy.

Frontline operations teams are at the heart of this transformation. Organizations that adopt and deploy technologies that empower frontline workers to make faster and more informed decisions will unlock value for manufacturers. As we begin 2025, manufacturers face a pivotal choice: invest in technologies and strategies that equip their workers to excel in a world increasingly shaped by AI and digital tools or risk being left behind. Yet, adoption cannot be top-down or monolithic. Instead, transformation should emerge organically, guided by real-world needs and worker priorities, with a focus on creating value at every step. It’s continuous and reflects the evolving world and needs of the operation.

Remaining competitive demands more than adopting the latest technology — it requires evolving into a composable enterprise with composable operations. This ensures the organization is always ready to adapt to new challenges ahead. An open, interoperable ecosystem can empower small and medium enterprises to integrate seamlessly into global supply chains. This 'operations-first ecosystem' ensures operations are at the core of manufacturing and no longer relegated to the back office. Instead, they must take centre stage, playing a pivotal role in production and distribution.

To build trust among workers and achieve lasting change, how technology is adopted is as critical as what technology is adopted.

In 2022, Trond Arne Undheim and I co-authored Augmented Lean as a call to action for prioritizing human-centric approaches. The goal was to present a vision that empowers workers by integrating technology intentionally — augmenting their roles, rather than overshadowing them. The emphasis on bottom-up innovation, adaptability and continuous improvement was inspired by the workforce and the operational challenges we saw emerging.

Through humanizing organization principles, outlined in Augmented Lean, organizations can adopt practices like conscientious learning, emergence, augmentation, decentralization, empowerment, respect, innovation and governance. These organizational efforts go far beyond metrics because they are grounded in workforce motivation.

In the era of AI, Augmented Lean has evolved into a critical blueprint for navigating disruptions in global manufacturing. No longer just about eliminating waste or speeding up processes, it now actively enhances human decision-making, enabling workers to problem-solve faster and smarter with frontline AI copilots at their side. Data and analytics allow frontline workers to make informed decisions in real-time, creating dynamic processes that adapt to evolving conditions. This requires businesses to shift from viewing AI as a tool to seeing it as a strategic asset in lean and continuous improvement practices, fundamentally transforming how work gets done. AI is only as useful as the value it provides to the operations and the people it serves.

As MIT Professor and 2024 Nobel Prize winner, Daron Acemoglu, recently wrote in the New York Times, "Evidence suggests that new technologies increase productivity much more consistently when they work with workers, enabling them to perform their jobs better and take on new, more sophisticated tasks."

For new technologies to thrive in manufacturing, it requires a shift in mindset to view frontline workers as knowledge workers — individuals whose expertise is amplified by purpose-built tools and contextual information, AI-driven or otherwise.

A skilled and motivated workforce is essential to recognizing this vision of a strong operations ecosystem. Today, however, attracting and retaining talent is among manufacturers’ top challenges, with over 65% reporting it as a primary concern (NAM Survey). It is estimated that the United States will have over 2 million unfilled manufacturing jobs by 2030 (NAM). This shortage underscores the urgent need for investment in upskilling and workforce development.

Both the challenges and opportunities manufacturing faces today are not entirely new; they echo lessons learned from past disruptions. For instance, during the COVID-19 pandemic, manufacturing proved resilient by adopting innovative solutions, from vaccine production to more agile supply chains. These successes were built on collaboration — between companies, governments and workers.

Future workforce programmes must embrace flexibility and resilience, breaking down silos that leave shop floors disconnected and reliant on outdated paper processes. To drive productive technology adoption, companies need tools that make work intuitive and effective, coupled with a cultural shift empowering teams to own transformation and skills development.

Programs, like Tulip University, which has already trained over 12,000 participants, highlight how education and technology can produce a 'hacking mentality' that encourages problem-solving and adaptability. Templates, no-code tools and train-the-trainer models enable workers to develop skills quickly, tailor solutions to their unique challenges and take ownership of processes. These initiatives aren’t just about filling jobs — they’re about offering a collaborative, tech-enabled environment that moves the entire industry forward.

Partnerships with post-secondary educational institutions and industry organizations are equally vital. By collaborating on long-term workforce development programmes, companies can share insights, best practices and solutions that transform manufacturing workers into knowledge workers. This ecosystem approach positions manufacturing, not as a collection of siloed entities, but as a greenhouse for shared growth.

To secure the manufacturing workforce of the future, we must prioritize intuitiveness and empowerment. Transformation should enhance, not disrupt. To foster agility, training should be continuous, integrated into the workday and focused on real-world applications. Manufacturing’s potential has never been greater, but to build a resilient, innovative workforce capable of thriving in a world shaped by rapid change, workers must feel they are active participants in shaping their company and industry’s future.