The manufacturing and field service industries are at a pivotal crossroads. As technology advances and industry demands shift, manufacturers are facing a significant challenge: a growing talent gap. The workforce responsible for installing, repairing, and maintaining equipment that manufacturers make and sell is aging. Younger generations are seeking different career paths, and technological advancements are altering traditional job roles.
The consequences of failing to address these challenges are a blindspot for many manufacturing companies that depend on a robust and skilled field service team. A lack of skilled labor threatens efficiency, customer satisfaction and even things like contract negotiations. Manufacturing companies must adopt proactive strategies for field service workforce management, upskilling, and talent acquisition to ensure long-term sustainability and success.
The Workforce Management Challenge in Field Service & Manufacturing
One of the biggest challenges in field service and manufacturing is the growing talent gap. As experienced technicians retire, companies struggle to find skilled replacements to install, maintain, and repair equipment at customer locations. A report from WBR Insights highlights that 73% of field service organizations consider the skilled labor shortage their top challenge, with many companies forced to rethink how they recruit, train, and retain workers.
The impact of this shortage extends beyond hiring difficulties—it affects service quality, customer satisfaction, and operational efficiency. Without a steady pipeline of skilled technicians, companies risk longer service lead times, increased maintenance backlogs, and potential revenue loss. To bridge this gap, organizations must invest in workforce development strategies, including upskilling existing employees, leveraging technology to optimize field operations, and attracting younger talent to field service careers.
Changing Workforce Expectations
Another major shift is the changing expectations of younger workers. Millennials and Generation Z value flexibility, career development opportunities, and workplace technology integration. Field service jobs, especially ones in physically demanding industries like manufacturing, can be hard to fill with younger talent.
To address this issue, manufacturers must modernize workplace culture by offering career growth pathways, emphasizing the role of technology, and providing an environment that supports continuous learning and innovation. Companies that fail to evolve may find it increasingly difficult to attract and retain top talent.
Technology & Automation Shifts
Automation, AI, and robotics are transforming the manufacturing sector. While these advancements create new opportunities for efficiency and precision, they also introduce a new set of challenges: the need for employees with skills for new and emerging technologies.
Today, nearly 85% of manufacturing jobs require advanced technology skills, yet more than two million roles could go unfilled by 2030 due to a growing skills gap. This shortfall underscores the urgent need for upskilling initiatives that focus on data analytics, machine learning, and robotics programming. By investing in workforce training, manufacturers can ensure employees remain competitive in an increasingly tech-driven landscape.
The competition for skilled labor extends beyond the manufacturing industry. With increased demand for technical skills across various sectors, manufacturing companies must compete with industries such as technology and logistics to secure top talent.
If current workforce trends persist, there could be a shortfall of nearly 1.9 million workers in the manufacturing sector by 2033. This includes the workers in the actual manufacturing plants, but also the ones installing and servicing the equipment their companies produce at their customer’s site. This includes everything from automatic doors to food packaging equipment to commercial water pumps. To mitigate this risk, companies must rethink their hiring and retention strategies by offering attractive compensation packages, emphasizing career stability, and leveraging innovative workforce management solutions.
Equally important is optimizing the performance of the workforce they already have. Field service management (FSM) solutions can help organizations do more with fewer technicians by improving scheduling efficiency, ensuring technicians have the right parts and information before dispatch, and minimizing downtime. FSM tools can also enable less-experienced or younger technicians to perform at a higher level by providing step-by-step checklists, equipment histories, and guided workflows—all through mobile apps. By reducing inefficiencies and empowering techs in the field, manufacturers can close part of the talent gap through smarter workforce deployment.
The Importance of Upskilling & Reskilling for 2025
Upskilling vs. Reskilling: What’s the Difference?
To effectively address the talent gap, manufacturers must differentiate between upskilling and reskilling initiatives:
- Upskilling, refers to training existing workers to boost their current skill sets, allowing them to adapt to new technologies and industry requirements.
- Reskilling, focuses on equipping displaced or transitioning workers with new skills that prepare them for different roles within the industry.
Both approaches are essential to building a resilient workforce capable of meeting future industry demands.
Critical Skills for the Future Workforce
As manufacturing becomes more technology-driven, workers must develop new competencies, including:
- Digital literacy: Understanding and employing manufacturing software, AI-driven processes, and IoT (Internet of Things) applications.
- Data analytics: Leveraging data insights to optimize production, supply chain management, and predictive maintenance.
- Robotics & AI integration: Operating, maintaining, and programming automated systems.
- Soft skills: Leadership, problem-solving, and adaptability to navigate an evolving work environment.
Companies that have successfully implemented upskilling programs demonstrate the potential impact of proactive workforce management. For example, major manufacturers like Siemens and General Electric have launched AI-based training programs, ensuring that employees remain adaptable in a rapidly changing industry.
Investment in Training & Apprenticeship Programs
One of the most effective ways to bridge the talent gap is by investing in workforce development programs. Apprenticeships, trade schools, and partnerships with technical colleges can provide hands-on training to prepare workers for modern manufacturing roles.
Innovative learning solutions such as AI-driven training platforms, virtual reality (VR) simulations, and digital twin technology can enhance workforce development. These tools provide employees with immersive, hands-on learning experiences, enabling them to practice complex tasks in a risk-free environment before applying their skills on the factory floor.
Attracting Young Talent
To make manufacturing careers more appealing to younger generations, companies should be enhancing workplace branding – to highlight technological advancements and career growth opportunities, offer mentorship programs that connect new employees with experienced industry professionals, and provide flexible work arrangements where possible to align with evolving workforce expectations.
What Happens If These Challenges Aren’t Addressed?
As manufacturing and field service industries move into 2025, addressing the workforce gap is more critical than ever. By implementing workforce management strategies, investing in upskilling initiatives, and leveraging emerging technologies, manufacturers can build a more resilient, skilled, and adaptable workforce.
Industry leaders must take proactive steps to attract, train, and retain talent, ensuring a sustainable future for manufacturing and field service operations. The time to act is now—by investing in people today, we can secure the future of the industry for generations to come.