OPEN POSITIONS ARE INCREASING. QUALIFIED WORKERS ARE NOT.

Finding skilled workers is no longer just difficult. Across manufacturing and supply chain industries, it is becoming a strategic risk that affects productivity, operational continuity, innovation capacity and long-term competitiveness.

The labor shortage in manufacturing can be defined as a structural imbalance between the number of open positions and the availability of qualified workers, driven by demographic trends, economic pressures and growing skills mismatches. What was once perceived as a cyclical issue has now become a long-term transformation that companies can no longer afford to address reactively.

A global and structural talent gap

According to the Global Talent Crunch report by Korn Ferry, the global shortage of skilled workers could reach 85 million people by 2030. This gap is not limited to specific regions or individual industries it is global and structural.

Some of the most significant figures highlight the scale of the challenge:

• United States: 11 million open positions
• Europe: 1.2 million vacancies
• Australia: 400,000 open roles
• Singapore: 163 job offers for every 100 available candidates

Manufacturing and supply chain activities are among the sectors most exposed to this shortage, as they rely on a combination of technical expertise, operational know-how and adaptability skills that are increasingly difficult to source and retain.

Why manufacturing and packaging in struggles to attract talent

Several interconnected factors contribute to the declining attractiveness of industrial roles:

• Manufacturing careers are often perceived as less appealing than digital or IT-driven professions
• Many roles involve physically demanding tasks and shift-based work patterns
• Sustainability concerns influence how sectors such as packaging are perceived by younger generations
• An aging workforce is not being fully replaced by new entrants
• A widening gap exists between the skills required by modern production systems and those available on the labor market

Together, these elements make recruitment more complex and retention more fragile, especially in highly operational environments.

Why Automation is only a part of the answer

Automation is frequently presented as the primary response to labor shortages — and it is certainly part of the answer. Over the last decade, automation has become significantly more affordable and accessible.

According to Eurostat data, the hourly cost of automation has dropped from around €50 to €10, while labor costs have increased due to rising living expenses and broader economic pressures. This shift has accelerated investment in automated technologies across manufacturing.

However, automation does not work everywhere. Its greatest impact is in repetitive, physically demanding and wear-intensive tasks, where it can reduce strain, improve ergonomics and increase consistency.

At the same time, technology alone cannot solve a people-related problem. Automated systems still require qualified professionals to:

• Design and integrate solutions
• Operate and supervise production processes
• Maintain, optimize and continuously adapt systems

While automation reduces dependency on manual labor, it often increases demand for higher-level technical skills, shifting rather than eliminating the talent gap. Technology can ease the workload, but it cannot replace people.

What workers are really looking for today

Attracting and retaining talent now requires a broader perspective than compensation alone. While fair and competitive pay remains essential, workforce expectations have evolved.

Today, workers increasingly value:

• A positive and meaningful work environment
• Flexibility and work–life balance
• Continuous learning and professional growth and cross-training.
• User-friendly digital tools that simplify daily operations

Talent retention starts inside the organization through culture, leadership, skills development and long-term career paths.

From recruiting to a long-term talent strategy

In the short term, recruiting remains unavoidable. In the medium and long term, however, companies need to move beyond reactive hiring and adopt a structured talent acquisition strategy.

Key elements of an effective approach include:

• Clear role definitions and realistic expectations
• Strong, authentic employer branding
• Partnerships with schools, universities and training centers
• Internship programs designed as long-term investments
• Structured onboarding processes because first impressions matter and cannot be repeated

Organizations rarely get a second chance to integrate new employees successfully.

Implications for manufacturers

The labor shortage has direct strategic implications:

• Workforce planning must become long-term rather than reactive
• Technology investments must go hand in hand with skills development
• Employer attractiveness becomes a critical competitive variable

Companies that fail to address these dimensions together risk slowing growth and losing resilience.

People as a competitive advantage

The manufacturing labor shortage is not a temporary disruption, but a long-term transformation. Organizations that succeed will be those able to balance technology adoption, working conditions and human capital development.

In the end, the real competitive advantage will not be automation alone — it will be people, supported by the right tools, skills and strategies.