A new report by KNOLSKAPE reveals a growing urgency among manufacturing leaders to address widening skill gaps in the sector. As factories shift to digital and AI-driven operations, nearly all surveyed companies (94%) now prioritise skillsets over academic qualifications when evaluating job candidates.
Titled The Next-Gen Workforce: Manufacturing Insights 2025, the study covers responses from 26 manufacturing firms across APAC, the Americas, Europe, and the Middle East, representing a workforce of over 47,000 employees.
2.4 million manufacturing roles may remain unfilled
The report estimates that by 2028, 2.4 million positions in manufacturing may go unfilled globally. The consequences of this talent shortfall could cost the world economy up to $1 trillion by 2030. Technical competencies in automation, CNC operations, and data analytics are among the most in-demand, alongside softer capabilities such as collaboration and adaptability.
Middle managers have emerged as a key focus area for upskilling, as organisations view them as the vital link between leadership goals and execution on the shop floor.
AI readiness and ethics now core to talent strategy
With 85% of employees expecting AI to impact their roles within the next two to three years, manufacturing leaders are increasingly prioritising ethical frameworks. Nearly 71% of respondents stressed the need for explainable AI systems to build trust among employees and stakeholders.
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KNOLSKAPE’s findings suggest that ethical, transparent AI integration must go hand in hand with skills-first hiring to ensure sustainable transformation in the sector.
Budget, ROI, and integration remain major hurdles
Despite the urgency, companies face multiple challenges in implementing learning and development initiatives. Budget limitations (71%), lack of measurable ROI (64%), and complex integration with existing workflows (57%) are slowing progress.
The report recommends that manufacturers shift toward microlearning models and embed skilling into day-to-day operations. Long-term competitiveness, it says, will depend on whether organisations can develop a workforce that is not only AI-ready but also values-driven and agile enough to adapt with speed.
