We’re Losing the Talent War

The manufacturing and aerospace industries are grappling with a talent crisis. Despite all the promises of robots and artificial intelligence (see my last newsletter, “The Factory of the Future is Dead”), workers are retiring and resigning at a rate much faster than the ability to effectively replace them. 

A worrying 82% of manufacturing companies report experiencing a labor shortage, and aerospace and defense (A&D) are among the hardest hit.

This lack of resources is directly impacting supply chain struggles and production rates. The backlog has reached 13,000 aircraft and is projected to hit 30,000 within 20 years (with each aircraft valued at ~$100M).

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What we’re fighting for

Manufacturers are fighting multiple fronts in this war for talent:

Attracting Gen Z and Gen Alphas: The oldest Gen Zers are 26 years old (time flies, doesn’t it?); Gen Alphas are entering high school, a few short years away from working age. And they want to work in media/entertainment, tech, or design – fields that are not often associated with manufacturing. 

Keeping existing employees: The median company tenure for manufacturing workers is 4.9 years, dropping from 5.9 years in 2014, according to the U.S. Bureau of Labor Statistics. Workers are becoming less committed to their jobs and even the industry.

Retaining tribal knowledge: Retirements are leading to a huge expertise gap. Manufacturers must prioritize capturing and preserving “tribal knowledge” – the undocumented and informal yet valuable skills, practices, and understandings that are accumulated through on-the-job experience.

The A&D industry, in particular, is behind its tech and auto peers on many key value perceptions:

That’s all to say: Manufacturing and especially A&D companies must not only reach new talent pools more effectively, but be able to provide what they want in a career.

What do people want in a job?

What they’re looking for shouldn’t be too much of a surprise to anyone. We hear a lot about: 

 

Work-Life Balance & Mental Health: Over half of Gen Zers report excessive anxiety about managing daily stress, preferring workplaces that allow them to balance personal and professional lives.

Purpose & Social Impact: People want companies that align with their personal values and allow them to make a positive difference. Nearly 40% of Gen Z workers said they declined job opportunities with employers whose ethics didn’t align with their own​.

Growth & Skill Development: Workers of all ages are prioritizing roles that offer clear pathways for professional growth. Training and mentorship programs are valuable incentives.

Community: People want to bring all the above together in a way that feels authentic – an organic space for recognition, certification, and empowerment.

These values are not limited to the younger generation; many experienced engineers and managers are eager to engage and leverage their expertise.

Leveling the playing field with tech

Horace Mann, a champion of education reform in the 19th century, argued that education is “the great equalizer of the conditions of men.” 

I believe technology, now more than ever, can have a similar effect.

 

By making technology accessible and beneficial to a much broader pool of people, companies can better retain the employees they currently have and also increase the talent pipeline. 

Imagine someone with limited or even no software experience now able to quickly build solutions or apps that optimize their work, based on their experience or simply because they have an idea on how to make things better. Now, nearly anyone can be a catalyst for improvement and is empowered to make a difference – values that we know are critically important for EVERYONE, not just Gen Z and Gen Alpha.

The impact can be profound: It improves visibility, humanizes the company, and aligns with our current digital habits.

At the same time, it reduces dependency on external resources and shows employees that the company prioritizes their development, which is critical for retention.

Of course, a lot of other things need to happen to truly win the talent war, like more competitive salaries and benefits, re-defining the value of industrial work and perception of manufacturing, and so on. But accessibility to technology is the bare minimum if manufacturers are to have a fighting chance.

The manufacturing and aerospace industries are facing a critical talent crisis, impacting supply chains and production rates. In this issue of Connecting the Dots, our CEO, Florent François, explores the challenges of attracting, retaining, and empowering talent, and how accessible technology can play a pivotal role in leveling the playing field.

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