The world of industrial and manufacturing work has been profoundly affected by forces such as globalization, automation, and shifting economic priorities.
A significant challenge facing this sector is the phenomenon known as the “Great Stagnation”—a term used to describe a period of economic stagnation marked by stagnant wages, slow productivity growth, and limited social mobility for workers.
In the context of industrial and manufacturing companies, these challenges are further complicated by a growing disconnect between employer expectations and worker perceptions, particularly around career advancement opportunities and job security.
This disconnect contributes to workers feeling increasingly replaceable, even amid hiring pushes.
Here’s why many workers feel they are expendable despite industry hiring initiatives and how this perception highlights a critical opportunity for worker upskilling.
The Great Stagnation: A Brief Overview in Manufacturing
The term “Great Stagnation” initially referred to the slow growth of the broader economy, especially since the mid-20th century, characterized by diminishing productivity gains and declining innovation rates.
For industrial and manufacturing sectors, this stagnation has translated into several key challenges:
- Stagnant Wages: Despite consistent production demand, wage growth has not kept up with inflation or worker productivity in industrial and manufacturing settings. The feeling of being underpaid relative to the effort expended is a significant source of discontent among workers.
- Job Security Concerns: As technological advances drive automation, many workers fear that their jobs could be replaced by machines. The rapid development of robotics and artificial intelligence—often seen as cheaper and more efficient alternatives to human labor—has created an environment where workers see their roles as inherently precarious.
- Perceived Lack of Advancement Opportunities: Workers in manufacturing often feel that there are limited pathways to career growth. In contrast to corporate sectors, where hierarchical promotions or lateral moves are standard, manufacturing positions are frequently perceived as static. This perception feeds into a broader sentiment of stagnation within the sector, where the only way to advance is to leave the company or even the industry entirely.
Hiring Pushes Amid a Shortage of Skilled Labor
Despite these perceptions, industrial and manufacturing companies are currently making considerable efforts to hire more employees. This push is motivated by various factors, such as increasing product demand, reshoring manufacturing capabilities, and a need for operational resilience. However, companies face a significant shortage of skilled labor. Many workers are either reluctant to join the industry due to fears of job instability or lack the requisite skills to meet modern manufacturing needs.
The hiring crunch has created a paradox: even as companies are eager to hire, many workers feel expendable. This perception of replaceability can be attributed to the following:
- Emphasis on Entry-Level Hiring: Many hiring pushes focus on quickly filling entry-level positions, particularly roles that require basic manual labor. These positions are often associated with low wages, minimal benefits, and poor career growth prospects. Workers filling these roles usually feel they are interchangeable, which undermines morale and diminishes any sense of job security.
- Automation and Technology: With technological advancements, many manufacturers have adopted automated systems that can perform tasks more consistently and efficiently than human workers. While automation is crucial for maintaining competitiveness, it has inadvertently signaled to workers that they are seen as replaceable components rather than long-term investments. The reliance on automation, without balancing it with worker development, fuels the sense of expendability.
- Cultural Disconnect Between Management and Labor: In many manufacturing environments, there is often a clear divide between management and labor. The perspectives of those at the top and the realities faced by those on the shop floor are not aligned. Employers might see hiring efforts as indicative of an opportunity-rich environment, but workers may perceive it as just more positions without any career progression—”jobs” instead of “careers.” This disconnect underscores ineffective communication and shared understanding between employers and workers.
The Opportunity for Worker Upskilling
While these challenges are significant, they also highlight an opportunity for transformation within the manufacturing industry: worker upskilling. Bridging the gap between employer perceptions and worker realities can start with investing in skills development that aligns with both technological advancement and worker empowerment.
Upskilling has the potential to resolve some of the industry’s most significant issues:
- Addressing Skill Gaps and Labor Shortages: The rapid pace of technological change in manufacturing means there is a growing need for a workforce skilled in areas such as robotics, maintenance, data analysis, and equipment programming. Upskilling workers can help bridge this gap, allowing companies to hire from within rather than searching endlessly for external talent with niche skills.
- Enhancing Job Security and Worker Engagement: When workers receive training that enables them to operate complex machinery, troubleshoot issues, and contribute to operational efficiency, they perceive their roles as more critical and less replaceable. This added sense of security can significantly boost worker morale and productivity, while also fostering a deeper sense of loyalty to the company.
- Providing a Clear Advancement Pathway: One of the fundamental aspects of worker dissatisfaction is the perceived lack of career advancement opportunities. Employers that provide upskilling programs—such as apprenticeships, technical certifications, or courses focused on supervisory skills—give workers a visible path toward career growth. Such initiatives shift the perception of manufacturing jobs from static positions to dynamic careers.
- Creating Mutual Value: Upskilling presents a mutually beneficial outcome: workers gain access to higher-paying, more secure roles, while companies benefit from improved efficiency and reduced turnover. Investing in training demonstrates that companies value their workforce, which can help build a culture of trust and respect—key factors in reducing the perception of expendability.
Challenges to Implementing Upskilling Programs
Although the potential benefits of worker upskilling are clear, there are several challenges that manufacturing companies must overcome:
- Cost and Time Constraints: Upskilling programs can be expensive, and companies must often balance the cost of training with tight production budgets. Additionally, pulling workers away from their regular duties for training may temporarily impact productivity.
- Worker Buy-In: Some workers may be hesitant to participate in training programs if they believe it will not lead to tangible career growth or if they are skeptical about their long-term prospects with the company. Clear communication about the potential benefits and career pathways that upskilling offers is essential for overcoming this barrier.
- Adapting Training to Diverse Needs: The manufacturing workforce is often diverse, with workers of different ages, educational backgrounds, and comfort levels with technology. Designing upskilling programs that are accessible and effective for all workers can be a significant challenge.
Turning the Tide on Worker Replaceability
The sense of being replaceable is a profound challenge in the manufacturing industry, one exacerbated by the broader Great Stagnation and a disconnect between employer ambitions and worker perceptions. While hiring pushes suggest growing opportunities, the prevailing sentiment among many workers is one of stagnation and insecurity. Addressing this requires more than just filling positions—it requires changing the nature of those positions through targeted upskilling initiatives.
By investing in the continuous development of their workforce, manufacturing companies can empower workers to see themselves as valuable and irreplaceable contributors. This, in turn, can help build a more resilient industry that not only meets the demands of modern production but also provides dignified and rewarding careers for its workers. Upskilling is a powerful tool to bridge the divide between the perceived replaceability of workers and the genuine opportunity for growth, allowing companies to turn the tide on stagnation and forge a more innovative and inclusive future for the manufacturing sector.
Want help with the Great Stagnation at your company? Contact us today!
