Written by Andy Clarke, Principal SCM Consultant & Manufacturing Expert, Columbus
If you talk to business leaders within the manufacturing sector about key issues that are preventing their companies from achieving operational excellence in 2025, a recurring theme emerges that is invariably top of all their agendas.
You might expect this headline issue to be concerned with achieving cost competitiveness or using business systems and technology more effectively. But surprisingly it is the shortage of a labour pool with the right skills set that is limiting many manufacturing companies’ ability to succeed.
Inability to recruit staff with the necessary skill set is impacting all levels, from factory machine setters and operators, through supervisory roles, up to senior management and director level positions in operations and supply chain disciplines.
This across-the-board skills shortage begs the question: Has manufacturing knowledge skipped a generation?
Five Actions to Bridge the Gap
So how can we support the return to manufacturing and counteract the lack of operational skillsets?
1. De-skill and Simplify Factory Operations
We need to de-skill the activities surrounding supply chain and factory planning and execution. Modern business systems should be more intuitive, with user interfaces that appeal to a new generation of manufacturing managers and staff. This is especially critical as manufacturers invest in digital transformation and smart factory technologies.
2. Transform Business Systems into Creative Workspaces
Business systems must move away from purely transactional recording data repositories to creative workspaces, where talented individuals from disparate working backgrounds are inspired to solve operational problems. Enable collaborative environments where cross-functional teams can solve operational problems creatively. This aligns with the shift towards data-driven decision-making and integrated analytics.
3. Embed AI to Fill Lost Knowledge
Embedding AI into business systems can help bridge the experience gap. For example, predictive maintenance tools can reduce downtime, and intelligent scheduling can optimise resource use. Asking simple questions like “Which production orders should I prioritise?” can help plug gaps and harness any lost knowledge.
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4. Automate Performance Metrics and Root Cause Analysis
Get business systems to generate their own sets of aligned performance metrics based on criteria defined during their design. The system will then measure its performance against each metric and advise on root cause corrective actions, again via AI tools. This reduces reliance on legacy expertise and supports continuous improvement.
5. Use Augmented Reality (AR) to Support Training
Providing AR tools like HoloLens can de-skill machine setting and guide staff through operational workflows. This is especially valuable for onboarding new employees and supporting field service teams.
Building a Future-Ready Workforce
To truly address the skills crisis, manufacturers must also rethink recruitment and training:
- Apprenticeships and training programs are vital pathways to rebuild entry-level talent
- Cross-sector hiring can bring fresh perspectives and transferable skills
- AI and digital literacy must be core components of workforce development
Operational excellence is no longer just about cost-cutting, it’s about aligning technology with business goals, supporting cultural change, and delivering measurable value.
Manufacturing as a Career of Choice
Manufacturing must become a compelling, rewarding career path once again. By combining intuitive systems, AI-driven insights, and immersive training tools, manufacturers can overcome the generational skills gap and build resilient, high-performing operations.
In summary, we need to widen the appeal of manufacturing as an enticing, challenging, and rewarding opportunity for the younger generation to pursue.
If you're interested in finding out more about the work we do at Columbus to support manufacturing businesses, take a look at our manufacturing solutions and services page.
