Over half of all manufacturing jobs are currently filled by employees age 45 and older, with a quarter of that workforce over the age of 55. By 2030, the last Baby Boomers will reach retirement. As a result, it’s expected that the industry will come up short with 3.8 million unfilled manufacturing jobs between 2024 and 2033.
The National Association of Manufacturers breaks it down this way: 2.8 million of the 3.8 million open jobs will come from retirement and 760,000 from industry growth.
Additionally, an estimated 230,000 jobs will be created from legislative and regulatory actions such as the Inflation Reduction Act (IRA), Bipartisan Infrastructure Law (BIL) and CHIPS and Science Act (CHIPS Act).
According to a study by The Manufacturing Institute, the vast majority of companies are “very or somewhat concerned” about the impending aging workforce exodus.
A Huge Opportunity for Manufacturers
Generation Z, also known as “Zoomers” are individuals born anywhere from the mid-to-late 1990s to early 2010s. By 2025, this demographic could comprise of more than one-quarter of the global workforce. Yet the challenge remains, how do you present manufacturing as an attractive career choice for this expansive group?
The Society of Human Resource Management (SHRM) found that about 55% of Gen Z “feel pressure to gain professional experience in high school and 61% want to know their career path before going to college.”
Therefore it is manufacturers duty to engage this generation through early apprenticeships and vocational training.
Another tactic could include older generation employees speaking to the benefits of a career in manufacturing, acting as employee magnets locally, perhaps at job fairs.
Equally important, manufacturers must appeal to the Gen Z “bucket list." This starts with understanding who they are and what they’re looking for.
- Technology. Gen Z is tech savvy. They’re digital natives who grew up with the internet and smart technology in every aspect of life. With more manufacturers adopting the “smart factory” with smart manufacturing techniques, Gen Zers will be tempted to come and stay on board.
- Mentorship and education. Gen Z wants a career, not a job, where they can advance and grow. To recruit and retain talent, manufacturers must clearly communicate opportunities to learn and develop new skills. Over 90% of Gen Z on the Student Advisory Committee of Enactus, an international organization dedicated to inspiring students, reported that the top three factors when choosing an employer are career advancement opportunities, a manager they can learn from and professional development and training opportunities.
- Meaningful work. McKinsey found that Gen Z workers are taking jobs less for compensation and more because of the chance to do meaningful work. In fact, 42% of Gen Z would rather work for a company that gives them a sense of purpose than one that pays more. Connecting their work to something bigger than themselves is especially important for Gen Z.
- Flexibility. Gen Z is 77% more likely to consider a job posting that mentions “flexibility.” They’re socially conscious with a focus on mental health and work/life balance, and flexibility signals that they feel seen and cared for. Some manufacturers are even opting for the hybrid model for factory floor positions, with technology allowing for inspection and calibration of machinery to be done offsite.
- Socially conscious leadership. Socially conscience programs and a sustainable working environment speak loudly to Gen Z. They’re looking to join a team that aligns with their personal values.
What You Can Expect From Gen Z
As manufacturing pivots to digitization, embracing a smart factory approach, exploring the industrial metaverse and investigating generative artificial intelligence, Gen Z’s unique digital skills position them to learn the new, connected technology quickly and efficiently.
It’s important to keep in mind that Gen Z must be engaged in order to be successful. As they are early-career workers, they may lack technical or people skills when they onboard. They may also be uncomfortable asking coworkers for advice in person as they’re used to self-help videos to solve problems.
For this reason, they must receive the skills development they need, ensuring they build interpersonal relationships with experienced workers and supervisors. Otherwise, they can become disengaged, which can result in higher rates of absenteeism and lower productivity.
How prevalent is disengagement? McKinsey found that about three in five Gen Z workers in manufacturing are disengaged. It’s a costly proposition as it’s estimated that the level of disengagement costs U.S. manufacturers about $20 billion to $40 billion per year.
Worse yet, the turnover rate for Gen Z in manufacturing jobs is significantly higher than previous generations with a 51% turnover rate at the six-month mark. One of the primary reasons is a lack of enablement and support.
The younger generation seeks opportunities for growth, innovation and self-expression.
Changing Mindset to Grab Gen Z’s Attention
While manufacturing has come a long way in the minds of the workforce, manufacturing comes with a stigma as a loud environment with dirty and unsafe working conditions.
To attract positive attention, the industry must put that stigma to rest, especially since today, manufacturing jobs offer improved working conditions, career growth, competitive pay and in some cases, employee ownership.
This isn’t your father’s manufacturing job any longer. This sector is quickly becoming a go-to for many in Gen Z as it checks many boxes, from upward mobility to flexibility and sustainability.
So how does the industry get the word out about its refreshed image? Manufacturers need to make sure their brand is well-represented across digital channels, as Gen Z logs onto social media and websites such as Glassdoor where current and former employees anonymously review companies.
According to Glassdoor, 70% of Gen Z will look at the company’s online reviews as well as their social media presence before applying for a job. Additionally, 69% are likely to apply for a job if the employer actively manages its online presence by replying to reviews, updating their profiles and sharing updates on the work culture and environment.
While there is a vast talent gap to be filled, Gen Z represents a huge opportunity for manufacturing. By addressing and delivering on Gen Z priorities and preferences, the manufacturing sector can continue to grow with a workforce that grows along with it for the long term.
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Jen Fietz is the owner and CEO of Imaginasium, where she leads the company in developing strategic marketing plans for manufacturers in the Upper Midwest.
Jen FietzImaginasium
