The pandemic affected every major industry, in different ways and to varying degrees, and the manufacturing sector was not spared. But the upshot as of 2025 is that most experts are projecting significant growth in the space for as much as a decade into the future.
According to a study by Deloitte and The Manufacturing Institute, as many as 3.8 million net new employees may be needed in the manufacturing industry between 2024-2033 to meet growing demand and industry expansion. As companies attempt to accommodate clients in this new environment, de-risk supply chains, and take advantage of new incentives and policy changes, manufacturing leaders will be under immense pressure to improve hiring outcomes and retention tactics, despite a shortage of experienced, skilled workers.
As the manufacturing industry grapples with the challenges of attracting and retaining talent, organizations can turn to a proven strategy: Implementing skills-based hiring and talent management strategies can alleviate some of the industry’s entrenched talent problems by enabling better hiring decisions and improving overall retention and upskilling.
Talent acquisition is important, but so is internal training
The talent challenge isn’t just coming – it has already arrived. Sixty percent of organizations that belong to the National Association of Manufacturers cited attracting and retaining talent as their top challenge just last quarter. Companies that delay in building a comprehensive acquisition and retention strategy now will face an exponentially steeper climb to secure the best talent in the years ahead. Talent fuels innovation and growth, while at the same time attracting more talent. Top organizations will hoard top talent, and the best and brightest among the next wave of prospects will naturally seek out opportunities with those companies.
But as savvy manufacturing leaders understand, business success isn’t tied solely to winning a talent arms race. Often, it’s about identifying the right talent at the right time and building a training and development infrastructure that builds a better workforce – more effective, more nimble – over time.
In a recent study from Deloitte on the state of manufacturing, organizations were encouraged to focus on a long-term talent strategy in order to ensure they address the ongoing applicant and skills gap. Skills-based hiring and talent management is just that – a proven long-term strategy that can increase employee retention and upskilling opportunities in the manufacturing sector.
Why skills-based training builds a better workforce
Under a skills-based hiring and talent management strategy, assessment for long-term growth potential begins from the moment a prospect applies. Science-based and objective assessments administered during the hiring process can provide accurate insights into a candidate's aptitude for success, including in a manufacturing-specific environment, regardless of whether they’ve had technical experience or spent time on a shop floor. This widens the talent pool from which manufacturers can recruit and it contributes to higher productivity and stronger talent retention rates.
The Wiesen Test of Mechanical Aptitude (WTMA), a cognitive aptitude test that measures the ability to learn how to operate, maintain, install and repair equipment and machinery, is just one example of an assessment that can be administered by employees to help identify the strongest candidates for targeted training and developmental opportunities. Other assessments can also be used to measure softer skills critical in the workplace, such as risk assessments that measure a candidate’s attitude toward safety and ability to adhere to rules in production environments. These are invaluable assessments regardless of whether a candidate has 10 years of technical, shop-floor experience or has just graduated high school. As virtually every manufacturer knows, safety is paramount in an environment full of heavy machinery and quick decision-making, and selecting a candidate who is likely to add to a safe environment should be weighed heavily in the recruitment process.
These assessments help to highlight candidates who will take to training the fastest and most efficiently post-hire, a process that can cost employers thousands of dollars depending on the complexity and level of the role. At a time when budgets are tight and recruiting is more arduous, pre-hire assessments can provide manufacturers with more assurance that the candidate they select will be worth the investment long-term.
Upskilling and re-skilling: An employee incentive
Beyond hiring, the benefits of skills-based training for an employer are fairly self-evident: Identifying opportunities for employee development and creating paths for growth and internal upward mobility can improve employee retention, pool institutional knowledge and make for a more dynamic and efficient workforce. But there is another advantage to skills-based training: Employees want it, too.
According to one survey of employees working across U.S. industries, 71% of workers wanted to update their skills more frequently and 80% wanted companies to invest more in upskilling and re-skilling. It stands to reason that an employer that commits to both would be more attractive to top prospects. A candidate who sees that a prospective employer has a plan in place to assess their skills, track their progress and help them grow into more advanced roles figures to be more interested in that organization and more focused and motivated upon hiring.
Skills-based assessments used both during the hiring process and in tandem with talent management provide companies with a proven strategy for benchmarking employee skills and identifying areas for growth and development – an approach that not only helps an employer build a stronger workforce but also appeal to the best talent.
