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ATL
Digi

Atlanta
Digital

 

ATL
Digi

Atlanta
Digital

 

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A new report, What’s Holding Manufacturers Back in 2024, revealed that manufacturers are struggling with workplace communication and a strong desire for digital transformation, which is needed to overcome the labor shortage and improve operations.

The L2L report, which explored pressing challenges facing the manufacturing industry, revealed that one of the most pressing issues is the global labor shortage. The industry is expected to reach a critical shortage of 3.8 million workers within the next decade. This is exacerbated by the difficulty in finding skilled workers and retaining the existing workforce. According to this study, the majority (75%) of respondents observed a noticeable lack of skilled workers in the market over the past year, while nearly half (46%) reported significant resignations within their organizations during the same period.

Industry 4.0
(Image: Adobe Stock / ipopba)

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High turnover is a critical issue, with 81% of manufacturers experiencing disruptions in plant operations due to this challenge. The skill shortage exacerbates the problem, impacting productivity and efficiency for 78% of respondents. Worker dissatisfaction is also on the rise, with 40% unhappy in their current jobs and 31% considering leaving, underscoring the urgent need for effective retention strategies.

Here are more details about these findings, and others mentioned in the report:

Manufacturing Workers Are Struggling To Communicate On All Levels, And It’s Hurting Team Morale

Poor communication from the shop floor to the corner office exacerbates the labor crisis, impacts overall productivity, and leads to employees feeling undervalued:

  • 55% of those currently facing communications issues say they feel undervalued, and 48% say they feel disconnected from their company’s goals
  • 69% say that corporate operations often do not consult those who have true visibility into shop floor issues before making decisions
  • 94% of respondents facing communication issues say these problems hindered their professional potential

Digital Transformation Is Mission Critical for Business Survival

Despite these challenges, the report underscores the positive impact of digital technologies on manufacturing operations. When businesses streamline their operations with digital tools, communication, growth, and productivity excel:

  • 66% of respondents prefer to communicate via digital tools in the workplace
  • 93% of users believe that digital communication tools improve transparency and accountability
  • 9 in 10 reported faster onboarding and a significant reduction in upskilling time thanks to digital collaboration platforms

Read the full report to learn more. 

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Facility Executive Magazine