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Key Takeaways

• Almost 50% of the manufacturing workforce will be retiring this decade, and 80% of employers aren’t prepared to attract millennials and Gen Z.
• ETO manufacturers rely on a team with highly developed, specialized training. This makes it likely that employers will need to invest additional time and money into training staff.
• The new generation of workers expects their employers to be up to date with current trends and provide the right tools and technology.

Maintaining a competent, industrious and invested workforce will be a growing challenge amongst ETO manufacturers in the coming years.

Many of these organizations are currently staffed by employees who are aging and planning on leaving their jobs. As the current workforce begins retiring, new workers will be needed to replace those currently on the job.

This is no small number either. According to the recent Thomasnet Industry Market Barometer of trends affecting the manufacturing sector, more than 80 percent of this sector’s workforce consists of baby boomers aged 45 to 65, with 49 percent of these individuals older than 55. The vast majority of these workers will be retiring within the next 10 years. Yet 65% of manufacturers have no plans to replace these highly skilled and experienced employees.

Tapping into the next generation

As noted in the source, millennials will compose approximately 75% of the workforce by 2025. Engineer To Order manufacturers cannot afford to miss out on the opportunity to attract these workers now. That way, over the next 10 years, these individuals will have the necessary experience to truly help the company succeed.

Unfortunately, many manufacturers have not picked up this shifting trend. An astounding 62% of manufacturers said millennials only make up a tiny portion of their team. Additionally, 81 percent have no plans in place to attract this growing portion of the workforce demographic.

Further, not only are fewer millennials entering the manufacturing sector, many executives don’t even want this generation entering their ranks. According to the survey, 43% of manufacturing companies reported that they did not think millennials had the work ethic or discipline to succeed in this industry.

Whether this proves to be true or not, the labor pool is undergoing a dramatic transformation. Unless manufacturers attract this sizeable portion of the workforce, they will soon find themselves understaffed and outmanned. Fortunately, there are several ways that manufacturers can go about attracting the workers of the future, including the following:

Implement apprenticeship programs

Manufacturing companies, especially those that build Engineer To Order products, have extremely complex processes. They rely heavily on research, development, and specialized training. While millennials are graduating college at higher rates than their predecessors, many lack the training for these skilled positions.

Without providing a route from school to the company, many manufacturers miss out on attracting this crucial generation of workers. By implementing an inclusive apprenticeship program, manufacturers can get the first shot at the best and the brightest this generation offers. This can help ensure they retain their competitive edge for the next decade and beyond. ETO manufacturers need to invest into millennials and Gen Z’s to compete in today’s marketplace. 

Create an innovative culture

While previous generations were content to clock in, work, and then clock out, today’s workforce prefers a creative approach. As noted in SMC Business Councils, this generation thrives in a supportive, encouraging environment.  They appreciate regular feedback to stay on track and will ultimately prosper from their unique perspectives. Instead of insisting on maintaining an inflexible work environment, manufacturers must let young workers explore their outside-the-box solutions. By creating a company culture that allows for a more creative and innovative work environment, manufacturers can ultimately reap benefits. According to Fortune magazine, companies that hired more millennials and included more workplace innovation ultimately reported a higher profit.

Utilize the best tools

Millennials joining the workforce expect their companies to be up to date with current trends, and this increasingly means incorporating the technological tools available. As a generation of individuals who are experienced with using digital tools to optimize their daily lives – from online banking to ordering food on the Internet to using a smartphone for traveling – those companies that continue to use manual or tedious systems such as spreadsheets for their processes will find that millennials are not interested in performing work in this manner.

As noted in Manufacturing.net, millennials view technological integration in the workplace as a must. This is the first generation that has truly mastered the use of digital and technological tools and they expect similar tools in the workplace.

Total ETO is just what they’re looking for

Total ETO is known for flexibility. A configurable ERP system for Engineer To Order manufacturers provides this technological solution for millennials. Using this intuitive ERP system, ETO companies can integrate the platform with their CAD and accounting systems. Just imagine the spreadsheets and tedious data you’re eliminating. The software syncs up purchases, tracks receipts of goods and payable invoices, and automates everything from sales to shipping.

Not only does Total ETO streamline and automate the workflow for Custom Machine builders, it’s extremely affordable for small enterprises. Its unique configurable options easily match the way your company naturally does business, alleviating the need for workers to learn a complex new system while  reducing the downtime typically associated with implementing ERP or MRP systems

By utilizing this system, ETO manufacturers can attract top talent to their company. With this intuitive software, companies can retain their competitive edge, remain industry leaders, or even bump themselves ahead of their peers.

Learn more about the Total ETO solution or request a demo today.

Written by RJ Ajuja