Discover key manufacturing industry statistics on turnover, skills gaps, safety, and how an employee communications app can transform your operations.
The manufacturing sector is the backbone of the global economy, representing roughly 11% of the U.S. GDP. Yet, despite its critical role, the industry is facing a series of interconnected challenges, from high turnover to the skills gap, and from safety concerns to a growing need for digital transformation.
It’s not all smooth sailing on the manufacturing floor, and we’re here to spill the tea on the good, the bad, and the "Are you kidding me?" moments in the industry.
The state of manufacturing - key challenges & stats
Turnover: the $40,000 problem
You hire someone, you train them, they start getting good at the job, and then… poof. They're gone. You know the drill. And it’s costing manufacturers a pretty penny - somewhere between $20,000 and $40,000 every time they have to replace a skilled worker.
For the record, 62% of manufacturing companies say turnover is getting worse. So, yeah, it’s not just you. What is even worse is that 32% of turnover happens 90+ days after hiring, meaning companies are losing workers just as they’ve started to get up to speed. With the cost of turnover so high, it’s no surprise that manufacturers are eager to find ways to retain talent and reduce churn.
The skills gap: a growing crisis
There’s a massive skills gap in manufacturing. And unless someone invents robots that can magically train themselves (hey, AI, get on that), we’re looking at 2.1 million unfilled jobs by 2030. That’s not a typo. 2.1 million. No wonder 75% of managers say they’re losing sleep over it.
And don’t get us started on the aging workforce.
With a third of employees clocking in over 55, manufacturers are scrambling to find young talent who, let’s face it, aren’t exactly lining up to wear hard hats.
Safety: a top concern
86% of companies say safety is a top priority and with good reason. If people don’t feel safe at work, they’re not sticking around (shocking, I know). With 110 non-fatal injuries per 10,000 workers, the manufacturing industry ranks as one of the most dangerous sectors to work in. According to the National Safety Council, manufacturing is the sixth-highest-ranking industry for workplace injuries.
It’s clear that improving safety isn’t just about compliance - it’s about engagement, productivity, and ultimately, retention.
Productivity & production delays
For many manufacturers, productivity is a constant struggle. In fact, 45% of manufacturers report experiencing production delays at least once a week. These delays can stem from a variety of causes, but one common factor is the skills gap and turnover, which create inefficiencies and slow down output.
The culture divide: frontline workers vs. the rest
One of the most striking findings in recent reports is that 80% of manufacturers believe they have two distinct workplace cultures-one for frontline workers and another for everyone else. This divide is troubling, especially when you consider that only 48% of manufacturing leaders feel their frontline employees are engaged in their roles.
Addressing this divide is critical to improving employee productivity, morale and retention. According to 86% of manufacturing leaders, instilling purpose is the most impactful way to create more meaning for frontline workers. Recognition (78%) and personal growth opportunities (68%) also play a crucial role.
Communication & technology gaps
You’d think mobile technology would be everywhere.
And yet, 68% of manufacturers admit they’re still not giving frontline workers the digital tools they need. Instead, they’re clinging to the past with paper processes, spreadsheets, and emails (remember those?). This leads to missed updates, inefficiencies, and increased miscommunication. The cost of miscommunication is significant, not only in productivity but also in overall employee morale.
Here’s the deal: better communication tools can make everything run smoother. Whether it’s updating shifts, sending safety alerts, or just making sure nobody’s forgotten how to operate the forklift, mobile tech is the future. Or at least, it should be.
Training & development: a key to retention
Alright, this one’s important. Employee training and development isn’t just a “nice-to-have” anymore - it’s the secret to staying competitive. Companies that invest in site-specific training see a 215% boost in following procedures (because apparently, people are more likely to do their jobs right if they know what they’re doing).
And if you’re worried about motivation? Cross-training can improve employee motivation by 42%, and solid professional development programs can improve retention by a whopping 116%. Yeah, you read that right. Investing in your people actually makes them want to stay. Who would’ve thought?
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So, what can you do about it?
Now that we’ve laid out all the grim realities (sorry), let’s talk about solutions. The future of manufacturing doesn’t have to be all doom and gloom. There are plenty of ways to tackle these challenges head-on and come out on top:
- Get with the times: Mobile technology for frontline workers isn’t optional anymore. It’s the key to better communication and smoother operations.
- Mind the gap: The skills gap isn’t going to close itself. Focus on upskilling your current employees and attracting new talent before it’s too late.
- Put safety first: No one wants to work in a death trap. Make safety a priority, and you’ll see happier, more engaged employees.
- Unite the cultures: If your company feels divided, it probably is. Break down the barriers between your office staff and your frontline workers and build one cohesive culture.
- Invest in training: Upskilling, cross-training, you name it. If you want to keep your employees around, give them a reason to stay.
To wrap things up, let’s talk about how Speakap, an employee experience platform, can help tackle these challenges and transform your manufacturing operations. Spoiler alert: It’s pretty awesome.
Speakap: solving the key challenges in manufacturing
Van Geloven, the largest snack manufacturer in the Benelux (hello, bitterballen!) faced a huge disconnect between their factory workers and head office. Information was falling through the cracks, safety updates weren’t sticking, and the workforce felt like two separate teams.
By using Speakap’s employee communication platform, Van Geloven made sure the right people got the right messages at the right time. No more outdated memos taped to the factory wall or crucial safety updates getting lost in inboxes. Instead, everyone - from the factory floor to the head office - was connected in real-time, with opportunities for feedback, engagement, and collaboration.
And the results speak for themselves: a 91% adoption rate and 5x daily logins. That’s some serious engagement. Van Geloven’s team leader put it perfectly: “If you know how to use Facebook, you can use Speakap.”
How Speakap can help you too
If you’re tired of dealing with turnover, communication gaps, and culture divides, Speakap has got your back. Here’s how it can make a difference:
- Employee communication: Keep everyone in the loop, whether they’re on the frontline or at HQ. Real-time updates, feedback channels, and targeted messaging mean no more missed memos.
- Social intranet: Create a space where employees can share best practices, celebrate wins, and collaborate across locations.
- Employee engagement: Want to boost engagement? Speakap lets employees connect in a way that feels natural, helping them stay aligned with company goals.
- Task management: Track and manage tasks effortlessly, ensuring that everyone knows what needs to get done and when.
- Workforce analytics: Get insights into how your employees engage with the platform, so you can continuously improve communication and engagement.
No more relying on outdated processes like emails or spreadsheets. With Speakap, you’ll have a modern, intuitive platform that not only connects your workforce but also boosts productivity, morale, and retention.
Ready to transform your employee experience? Let’s make it happen with Speakap - the platform that brings your team together, one message at a time.
Sources:
- UKG Manufacturing Report
- National Safety Council
- Deloitte Manufacturing Outlook
- National Association of Manufacturers
- HR Dive on Training
- PwC Talent Strategy Report