New data from our second annual The Current State of the Global Manufacturing Workforce in 2025 and Beyond report details the critical trends that leaders mustn’t ignore.
The rate of change experienced by the manufacturing sector today is like no other time in history. While the first and second industrial revolutions are well documented for their transformative impacts, Industry 4.0 is much more complex due to the speed of change, technological adoption and the rise of globalisation. As the business environment transforms, leaders must confidently guide their teams through unfamiliar territory with speed and agility.
Our research reveals that leaders need to confront the widening talent gap, mitigate change fatigue, navigate complex compliance requirements and manage global supply chain disruptions. Arguably, most importantly, they must also foster team engagement while introducing advanced and sometimes disruptive technologies to remain competitive.
Report data reveals leaders are falling behind
According to our survey data, only 20% of respondents indicated that they have implemented innovative and automated workforce strategies to resolve the growing skills shortage and streamline processes, despite the potential for significant impacts on their businesses.
Our data demonstrates that leaders have no other option but to consider how best to introduce automation, AI and advanced technologies, with innovative workforce management solutions that prioritise their employees to address some of the manufacturing sector’s more pressing issues.
Here, we explore the report’s top findings and trends that leaders must consider adding to their agenda in the year ahead:
Top five workforce trends facing the manufacturing industry in 2025
- Next-gen workforce: Gen Z and Millennials redefining the workplace
The global manufacturing industry faces a severe lack of talent, becoming more critical in recent years as Baby Boomers continue to exit the workforce. We’ve seen this trend continue to rise from last year’s report. Currently, Gen Z represents only 12% of shift and/or deskless workers, highlighting that the younger generation does not seem to be as attracted to manufacturing careers as we need them to be, and younger workers are not replacing retiring workers fast enough. To shrink the widening skills gap, leaders must make the industry more attractive through its innovative use of technology. Younger workers, including Gen Z, have higher technological expectations, requiring inclusive workforce tools.
- Combating change fatigue: putting people first in an era of Industry 4.0
Industry 4.0 demands that manufacturing leaders remain agile to stay competitive. With effective change management becoming increasingly important, adopting a more strategic, people-centric approach will help leaders enable their workforce. Development or training initiatives and growth opportunities will help attract and retain talent while at the same time working towards reducing change fatigue to optimise business success. We’ve found that most leaders recognise their people as a key investment area, with many prioritising training and development over the next three years.
- Employee engagement starts with authentic communication
Authenticity is valued by employees, and they want to feel as though they can trust their managers. To attract younger generations and desirable candidates, leaders must prioritise authentic and effective communication. Why? Poor communication is often a key reason for employees becoming disengaged and leaving an organisation, requiring leaders to acknowledge this by improving communication and minimising poor employee experience. To tackle this key obstacle, 32% of those surveyed plan to invest in communication and collaboration tools in the 12 months ahead to support successful messaging.
- Employees want more control over their time management and scheduling
Manufacturing leaders require a modern workforce management strategy with tools to support their own success and that of their employees. This is especially critical in the industrial sector, where on-the-ground workers often feel cut off from other managers and workers. New solutions can be leveraged to transform workforce scheduling and time management, improving effectiveness and meeting employee expectations. Deskless workers benefit from more control over their own time management, and to make this possible, 76% of our respondents said they plan to invest in a scheduling solution within the next three years.
- Compliance remains a top manufacturing concern
The complexity of compliance is increasingly a cause for employer concern, as it becomes harder to adhere to relevant laws, regulations and standards to maintain legal standing, which protects an organisation’s reputation and continuity. The absence of the right tools exposes businesses to compliance risks, disjointed workforce practices, and costly inefficiencies—barriers that directly threaten growth. The Current State of the Global Manufacturing Workforce in 2025 and Beyond found that 88% of manufacturing decision makers have identified the benefits of global standardisation that aligns with local compliance, highlighting its significance.
The value of modern workforce management solutions
Against this backdrop of ever-evolving trends, there is an upside: workforce technology offers a streamlined way forward, making the lives of both leaders and front-line and deskless workers easier. Now, employees have more control with scheduling flexibility and autonomous time management, while leaders can experience a tangible reduction in labour costs. Additionally, workforce software solutions can support various areas like robust workforce scheduling, effectively managing pay rules, adhering to labour regulations, and ultimately, improving business operations.
This operational shift, however, does require planning and the introduction of modern workforce management solutions that deliver integrated employee communication capabilities while also supporting compliance and, overall, optimising workforces.
Workforce 4.0: bullet-proofing workforce management
Based on our data, manufacturing leaders must prioritise their employees as they accelerate digital transformation and acknowledge the latest industry trends. But critical investments are urgently needed in workforce management solutions to equip all employees and leaders for success.
It’s also clear that many manufacturers are struggling to advance their Industry 4.0 agenda and manage their workforce effectively with their current tools. Those who don’t master both are at risk of being left behind.
Learn more about these trends and what makes for a thriving workforce in our recent report.
Gordon Gilkison, Sales Director, WorkForce Software, an ADP
Gordon leads the EMEA sales team at WorkForce Software, an ADP company. He has over 25 years of experience in sales, pre-sales, customer relationship management and deploying workforce management solutions worldwide.
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