2020 was a challenging year for Australia’s manufacturing industry. It was forced to contend with supply chain disruptions, increased safety regulations and responding with agility to the quickly changing demands of the population. Throughout this time, the industry demonstrated its resilience, pivoting where necessary and adapting to the climate.

Though restrictions have eased significantly around the country and the rollout of the vaccine has begun, there are still lingering challenges that manufacturing employers will need to face in the coming years. But though 2020 was indeed tumultuous, it has also created shifts within the industry that may present organisations with new opportunities.

Here are four challenges and opportunities for manufacturing employers to consider moving forward.

Skilled labour gap and attracting talent

New technology is increasingly changing and updating the way in which manufacturers work. This is good news for the industry, which will be able to create more streamlined, automated processes, and utilise vastly more data.

With this kind of innovation however, the job make-up in the industry is shifting. Employers now require workers with specific skillsets that will align with these advancements and allow organisations to make the most of this new technology. The ability to simply hire an unskilled workforce and train them quickly is slowly shrinking as innovation has become more prevalent.

Employers will now need to actively seek out those skilled workers who have the right training and knowledge to allow for organisational growth. This will involve determining minimum qualifications, broadening your search and even utilising professional, industry-specific recruitment consultants who have a large network of skilled candidates who can be properly screened.

Retaining manufacturing talent

Though attracting skilled talent should be a focus for manufacturing employers, retaining that talent should be just as much of a priority. In a competitive job market, where employees consistently make lateral moves to improve their salary and benefits, retaining quality workers can be challenging. However, retaining employees can be a big business advantage.

Long-tenured employees lead to greater productivity and less time and money spent hiring and training new employees. Employers can make their business a desired place to work by creating a positive culture where employees feel valued, investing in training and determining which employee benefits appeal most to your workforce.

Changing perceptions of the industry post Covid-19

Innovative technology is not the only thing changing within manufacturing, with 2020 also beginning to reshape the country’s perceptions of the industry.

Manufacturing was often wrongly perceived as tedious manual labour , insecure in its future and suited to those with low qualifications. These misconceptions have impacted the industry’s ability to grow and attract skilled and specialist talent into manufacturing. Yet the generalisations discredit the reality of the industry today and fail to consider the incoming technological advancements to Australia’s manufacturing industry.

However, this perception began to change as the country watched the manufacturing industry respond to the pandemic. Banding together, manufacturers were able to produce and deliver vital products such as PPE and medical equipment to the community when it was most in need. This is helping to redefine the industry as resilient, agile, and crucially important to Australia’s wellbeing and prosperity, while increasing the positive connection to the ‘Australia Made’ brand. In fact, research found that nine in 10 Australians believe that more products should be manufactured locally following Covid-19.

Increased reshoring

According to the recent Australian Manufacturing Outlook survey , 55 percent of Australian manufacturers intend to re-shore their manufacturing operations to Australia by 2023, following market volatility caused by the pandemic and international relations with neighbouring countries. With confidence in the Australian economy growing, nearly one quarter of survey respondents have already moved their manufacturing operations back to Australia.

The survey noted that this trend is being driven by “the need to future-proof critical supply chains in the face of market change and disruption, to minimise risk and protect jobs in key industries.”

With this onshore growth however, manufacturing employers will need to be prepared to compete within the digital economy, with 82 percent of survey respondents still in the planning process or yet to implement eCommerce channels to sell to domestic or international buyers; only nine percent also have market-aware, dynamic pricing strategies.

As well as this, employers will need to be prepared to increase their workforce. 90 percent of Australian manufacturers are confident their company has access to a skilled Australian workforce capable of producing, marketing and selling its products, however it will be attracting and retaining these employees which will be critical for long-term growth.

If you are looking for skilled manufacturing talent, partner with an organisation that understands the specific needs of your industry and contact us today.