Future Ready Workforce: Navigating Digital Transformation Together

TOM KELLY EXECUTIVE DIRECTOR & CEO AUTOMATION ALLEY

Between post-pandemic standards and the rapid advancement of technology, we’ve witnessed a seismic shift in the manufacturing workforce. Flexible work schedules are normalized, artificial intelligence is being deployed en masse across industries, and stuffy conference table meetings are largely replaced with digital talking heads in front of green-screened backgrounds.

Aside from the most visual changes, work is more technologically complex as well. The skills gap widens with each new advancement in technology, requiring further specialization and a need for new training. Keeping up with these advancements is easier said than done.

The industry needs collaboration between stakeholders in academia, business, and government to usher in new training programs to upskill and re-skill workers in the field of new manufacturing technology. And the time to collectively reinvest in the workforce is now.

The manufacturing workforce is poised to grow, with new positions requiring a competent set of technical skills to succeed. According to the Bureau of Labor Statistics, the manufacturing workforce surpassed its pre-pandemic levels in 2023. Furthermore, there are approximately 250,000 more job openings in manufacturing than jobs being filled in September 2023.

MOHAMAD S. QATU, Ph.D. DEAN, GAMEABOVE COLLEGE OF ENGINEERING AND TECHNOLOGY EASTERN MICHIGAN UNIVERSITY

To bridge the skill gap, the industry must decide what are the most critical skills and competencies to be prioritized in a workforce development strategy. However, this can only happen with stakeholder collaboration. How can companies, academia and the government work together to alleviate the financial and time burden for workers to learn these required new skills?

Lastly, the manufacturing workforce must prioritize job retention. Building a culture that can foster creativity, embrace innovation and take risks is a route to a more innovative business that can compete in the age of digital transformation. A Glassdoor survey found 77% of job seekers consider a company’s culture before applying for a job. What inward and outward facing strategies should the industry focus on to build and retain workers?

Automation Alley stands ready to bring stakeholders from all aspects of the manufacturing industry together to curate this important discussion. We extend our gratitude to each company and individual involved in creating this playbook. We look forward to serving you as the Digital Transformation Insight Center in all things workforce and beyond.

A SPECIAL THANKS TO THOSE WHO CONTRIBUTED TO THIS REPORT

NOT PICTURED:

KENNETH

TOM KRENT PLANNING COMMISSIONER CITY OF TROY

NAHEED HUQ MANAGER OF ECONOMIC AND COMMUNITY VITALITY SEMCOG

COURTNEY STEELE DIRECTOR OF MARKETING & COMMUNICATIONS DEEPHOW

ARND HERWIG VICE PRESIDENT, ENGINEERING BROSE

DAVID HAYDON SALES ENGINEER BLUE FIRE MANUFACTURING

RON KOVEL SMART MANUFACTURING SOLUTIONS GMT STRATEGIC PARTNERS LTD

MARK JOHNSTON GENERAL MANAGER SWIFTWALL

MISTY SHULTERS DEPUTY DIRECTOR MICHIGAN WORKS! SOUTHEAST

INGRID TIGHE PRESIDENT MICHIGAN MANUFACTURING TECHNOLOGY CENTER

BILL RAYL EXECUTIVE DIRECTOR OF WORKFORCE SOLUTIONS MICHIGAN MANUFACTURERS ASSOCIATION

PAUL AIELLO EXECUTIVE DIRECTOR FANUC

JENNIFER ST. JOHN BUSINESS DEVELOPMENT MANAGER - TRAINING BIZLINK

MARILYN KAPP INTERIM EXECUTIVE DIRECTOR OF WORKFORCE DEVELOPMENT WASHTENAW COMMUNITY COLLEGE

MOHAMAD S. QATU, Ph.D. DEAN, GAMEABOVE COLLEGE OF ENGINEERING AND TECHNOLOGY EASTERN MICHIGAN UNIVERSITY

JACK VAN TIEM PRESIDENT CONTRACT PROFESSIONALS, INC

DAN STEWART RELATIONSHIP MANAGER AUTOMATION ALLEY

TOM KELLY EXECUTIVE DIRECTOR & CEO AUTOMATION ALLEY

ALISON TRUMBLE DIRECTOR OF PROGRAMMING US CENTER FOR ADVANCED MANUFACTURING

D. JOHNSON PRESIDENT KDWJ ENTERPRISE

EXPERT INSIGHTS:

By Jack Van Tiem, President

Embrace the human element as your secret weapon in the Industry 4.0 Readiness Race

James Carville's infamous slogan, "It’s the economy, stupid," served as a stark reminder to prioritize core issues. Similarly, amidst the Industry 4.0 frenzy, companies often forget the most critical factor: do they have the horses to run the race? “It’s the people, stupid!”

Even when companies recognize the importance of their workforce, the hefty price tag of upskilling, reskilling, and recruiting talent are still major hurdles. The rush to implement advanced technologies without first assessing their budget and the long-term financial implications can be devastating to a company.

Leaders get stuck here, neglecting the crucial first step: balancing the cost-benefit equation of investing in their human capital. Additionally, leaders often lack a clear understanding of which employees possess the skills necessary to execute each key area of the Industry 4.0 Readiness playbook, leading to misdirected investments and wasted resources.

While the disconnects between capability, vision and execution, mixed with financial constraints, are the roadblocks hindering success, capability is inarguably the most difficult to solve.

Remember, automation is just the engine, but it's the human element that steers the car...for now.

FUTURE-READY WORKFORCE:

Navigating Digital Transformation Together

Industrial revolutions are defined by change. The first industrial revolution saw the mechanization of production processes and a dramatic shift in how products were created. Fast-forward to today, and we are now in the midst of another major transformation – the Fourth Industrial Revolution, or Industry 4.0.

Industry 4.0 is ushering in a new era of technology and automation-driven productivity, with advancements such as artificial intelligence (AI), additive manufacturing, advanced robotics, virtual reality, and the Internet of Things (IoT) transforming the way businesses operate around the world. As these technologies are adopted, they will fundamentally change the way we work and how employees interact with employers.

Automation Alley has had the privilege of consulting with some of the manufacturing sector's leading stakeholders to discuss the implications of Industry 4.0 and what it means for businesses in the sector today and in years to come. We regularly hear from employers who are concerned about how these new technologies will affect their workforce, leading us to ask: What does being 'future-ready' look like?

Upskilling and Reskilling

The First Industrial Revolution changed the world in a big way. The machines it introduced effectively transformed the way we work and live, taking us from the age of manual labor to one of automated efficiency. But with that technological advancement came the need for human advancement as well — our ancestors had to get on board with the change by acquiring new skills or risk being left behind, from the waterwheel in the 1st century BC to the adoption of computers in the late 20th century.

“In today's rapidly evolving world, digital fluency and adaptability are nonnegotiables,” said CPI President Jack Van Tiem. “Fear of change can be a crippling barrier to both, hindering personal and organizational growth. Let's ignite a passion for transformation by empowering individuals to conquer their fear and unlock their full potential in the face of change.”

Everyday businesses and workers are facing a new level of technological sophistication with the onset of Industry 4.0, calling for the development of a host of skills and professional specialties that didn't exist a matter of decades ago. Think of the prevalence of web developer roles today in comparison to 30 years ago. In 2023, we saw the rise of AI positions skyrocket. On Indeed, AI positions have increased by nearly 4,000% in the last year, while jobs for generative AI have increased by 306%.

It’s no longer enough to know how to build and maintain machines. Today, companies have to be able to troubleshoot them, monitor their performance in real time, program them from scratch, and sell their capabilities to a digital global audience.

Among the most in-demand tech and IT skills today include cloud computing, blockchain technology, and cybersecurity. Programming languages such as Python, C++, R, and Java have tremendous functional utility in AI and software-defined networking (SDN) as well.

In addition to these technical skills, new soft skills have become essential, too: Problem-solving, collaboration and communication, critical thinking, and creativity. In the World Economic Forum’s Future of Jobs Report 2023, the soft skill of “creative thinking” topped all other skills in increasing importance for surveyed organizations.

Skill-Based Talent Management May Be the Solution

Skill-based talent management is an approach to staffing in which candidates are hired based on their potential to grow and learn. It differs from the traditional system many people are used to, where job applicants' chances of landing a position rely on preexisting credentials and experience.

The thought is that by identifying individuals with the right base competencies early on, companies can position themselves to grow their workforce's long-term resilience. Prospective employees are new and ready to learn with the ability to adapt as the industry around them changes.

A report from McKinsey found “hiring for skills is five times more predictive of job performance than hiring for education and more than two times more predictive than hiring for work experience.”

However, leadership is imperative when adopting this approach.

“In today's rapidly evolving world, digital fluency and adaptability are nonnegotiables”

-Jack Van Tiem President, CPI

"As leaders, we can be the trusted guides who help people bridge the gap between fear and fulfillment. We can inspire them to embrace new skills and see the limitless possibilities that change offers,” Van Tiem said.

"As leaders, we can be the trusted guides who help people bridge the gap between fear and fulfillment. We can inspire them to embrace new skills and see the limitless possibilities that change offers."

“Witnessing someone conquer their fear and blossom with newfound skills is a powerful testament to the transformative power of embracing change. Let's create a culture where growth is celebrated, and potential is always waiting to be discovered."

Using this strategy when hiring ensures employees are experienced at adapting to changes in workflow; something that will be critical with the onset of Industry 4.0 technologies on the market.

Higher Education and Workforce Training

Whether someone comes to the table with extensive background experience or not, the value of education never dwindles in manufacturing. As a rapidly evolving sector, standards are changing quickly, and with them the core skills that workers need to fulfill their job duties.

Technology is probably the best example of this; augmented reality, AI, and IoT devices are all quickly edging their way into everyday workflows. That's a great thing for efficiency, but only if staff know how to use new systems properly. Some of these technologies were not commonplace when technicians in the field were initially trained, meaning even the most seasoned of industry professionals will need to go back to the classroom in one way or another.

To that end, companies are experimenting with various methods of skillbuilding, including but not limited to micro-credentials, co-op work programs, and internships. Micro-credentials are short courses offered by universities or other providers that give employees a chance to gain specialized skills in a relevant area. Co-op work programs give employees the opportunity to

gain hands-on experience in a real working environment, while internships provide learning experience that extends well beyond the classroom.

“Industry is defining their needs and engaging with colleges and other partners,” said Bill Rayl, director of workforce solutions, Michigan Manufacturers Association. “Colleges need to respond to those needs, and we need to build trust and relationships."

On the government side of the equation, seed funding is necessary to strengthen these partnerships, Rayl added.

One method that demonstrates early success is FANUC’s approach to workforce training, working hand in hand with the U.S. education system, and investing into it.

“At FANUC, we’ve invested over $90 million in the U.S. education system and we are putting our money where our mouth is,” said FANUC Director of CERT Education Paul Aiello. “We are also engaged in advocacy programs. This is paramount to our workforce and ensures we are able to compete regionally, nationally and globally.”

"We need soft skills as well — agility, grit, curiosity, creativity, adaptability, and the ability to inspire."

-Ingrid Tighe President, Michigan Manufacturing Technology Center

The effort started 15 years ago, Aiello said.

“We began a proactive program to engage schools and found out there was a major misalignment between what was being taught and the new technology being introduced. Our belief is the only way that companies can maximize their investment is to have people understand and exploit that technology.”

The workforce of the future already has a head start, he added. “The generation coming up is already digital learners. It’s native to them. They use these technologies everyday, whether it’s on their phone or the integrated systems in a grocery store.”

A robust foundation of reading and math competencies in K-12 is paramount, Michigan Manufacturing Technology Center President Ingrid Tighe said.

“We have a ton of data coming in and we need folks to be able to synthesize data and find key points within it. But we need soft skills as well — agility, grit, curiosity, creativity, adaptability, and the ability to inspire. Combining those attributes with hard skills makes an excellent manufacturer.”

More evidence of the necessity for soft skills is mounting. Some companies are now requiring employees to take classes or attend seminars that focus on developing these skills.

The key to forming an upskilled workforce is facilitating communication between stakeholders, Tighe added. These stakeholders must collect workforce data, identify trends, understand training needs and collaborate to succeed.

“We’ve got universities, community colleges, high schools, and the government working on developing the workforce for this industry, but the struggle lies in the pipeline of communication between these entities. How do we do a better job of coordinating our communication?”

Workforce Training and Diversity Today Will Pay Off Tomorrow

There's no doubt about the positive effect investments in employee upskilling can have on a company's success. A report from McKinsey & Company states the most effective learning organizations provide each of their staff members with an average of 75 hours of training per year. Those same businesses see higher promotion and retention rates compared to competitors that do not put effort into employee development.

A 2023 report from the World Economic Forum states that out of the six in 10 workers who will require some form of new training before 2027, only half have access to upskilling opportunities. Companies that make the effort to invest in employee development today will have a major competitive advantage over their peers tomorrow.

Employers should also prioritize tapping into new demographics and encourage diversity to reach a wider talent pool. For example, while nubmers are rising, women only account for 29% of the manufacturing workforce and minorities represent 22%.

The most effective learning organizations provide each of their staff members with an average of 75 hours of training per year.

A Culture of Growth and Innovation

Machines may be slowly taking over manufacturing processes around the world, but they'll always need skilled operators and technicians. The sector's global talent shortage is in fact only expected to worsen in the decades to come. A recent study conducted by the Manufacturing Institute (MI) projects a deficit of 2.1 million unfulfilled jobs by the year 2030.

While a large part of this shortage can be attributed to a lack of skilled labor, retention rates surely aren't helping. For many companies, the challenge isn't just finding qualified staff, but keeping them engaged and on board for the long haul. Even prior to COVID-19, roughly 43% of industry employers reported an average annual turnover of 20% or more.

Manufacturing has 254,000 more job openings than new hires, according to November 2023 U.S. manufacturing workforce data.

The challenge then becomes twofold: reducing attrition while promoting business development. As mentioned previously, Industry 4.0 will require a significant amount of training and upskilling for new and established employees alike. With qualified teachers being in short supply, the transformation will not happen as quickly as many stakeholders and

employers may wish. Most agree that the best strategy for the time being is to invest in culture and create an environment where people remain motivated, feel supported, and are constantly learning.

Initiatives such as mentorship programs that pair experienced workers with new hires can help bridge the knowledge gap while also forming a sense of community within the organization. Flexible work arrangements, employee engagement initiatives, and even incentive programs can also assist in retaining talent and enhancing performance.

The Wave of Artificial Intelligence

AI is also a driving factor in the evolution of the workforce. Early data shows the majority of the manufacturing workforce does not view technology as adversarial or threatening to employment. According to the 2023 OECD Employment Outlook, 63% of manufacturing and finance workforce survey respondents said the deployment of AI improved enjoyment of their job, with 80% of manufacturing respondents saying AI tools improved their job performance. Additionally, 49% of employers responded that advancements in AI made them hire new workers.

The Power of Influence

In addition to creating a positive environment for employees, managers should be cognizant of their own potential to promote — or possibly hinder — growth. New strategies always take time to work, and failure is inevitable. Success comes down to teams' ability to come through the other sides of failed initiatives and learn from mistakes. Respect for professional criticism and an encouraging attitude can help foster an environment where employees feel safe to take smart chances, experiment, and innovate.

While it's no surprise that the world of work has changed drastically over the last century, perhaps what's most remarkable is how rapidly these changes have occurred in recent years. Industry 4.0 is set to be one of humankind's largest bounds forward to date, bringing forth new technologies and capabilities that will revolutionize the way employees are scouted, hired, and trained for good.

Van Tiem said the goal is to create a future where people can thrive on change, not fear it.

“By investing in training, fostering a supportive environment, and celebrating individual journeys, we can unlock a collective potential that propels us all towards a brighter tomorrow."

The goal is to create a future where people can thrive on change, not fear it

.

-Jack Van Tiem President, CPI

INDUSTRY PULSE

Automation Alley posted weekly polls in December of 2023 for our LinkedIn followers of over 5,000 professionals in the technology and manufacturing ecosystem on the topic of Future-Ready Workforce: Navigating Digital Transformation Together. This is how the industry responded at a glance.

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KEY TAKEAWAYS

Speed of Tech Outpaces Workforce Skills

Rapid technological evolution has led to a widening skills gap in the manufacturing sector, necessitating specialization and continuous training. This includes a surge in demand for technical skills like AI, cloud computing, and programming languages, as well as an emphasis on soft skills such as problem-solving, collaboration, critical thinking, and creativity.

Culture of Innovation Necessary for New Workforce Reality

To address the global talent shortage in manufacturing, it is essential to focus on reducing attrition rates and promoting a culture of growth and innovation. Industry leaders must allow their workforce to take creative risks, employ new methods of problem solving and be tolerant of unfavorable outcomes in the process of improvement.

New Talent Management Methods to Consider

Skill-based talent management, focusing on hiring individuals based on their potential to learn and grow, is a solution to workforce challenges in the Industry 4.0 era. Also, companies should explore various methods, including micro-credentials, co-op work programs, and internships, to provide employees with the necessary skills.

Academia and Industry Must Lead The Change

Academia must address the challenge of preparing students for Industry 4.0 by cultivating multifaceted skill sets, including technical expertise, adaptability, and critical thinking. However, Industry 4.0 technologies demand continuous adjustments to teaching methods. Collaboration between educational institutions and industry leaders through internships, co-op programs, joint research projects, and mentoring can provide students with real-world experience, better preparing them for the workforce.

Tapping Into New Demographics

Government initiatives should encourage diversity and inclusion in the tech workforce to tap into a wider talent pool. Workers in Industry 4.0 cannot be supplied solely by a restrictive pipeline of prestigious engineering schools. More efforts are needed to include and train a wider demographic of individuals.

Data Collection is Imperative to Make Intelligent Decisions in Industry 4.0

The government's involvement in creating a future-ready workforce involves collecting workforce data, identifying demographic trends, assessing jobs at risk, understanding educational and training needs, and collaborating with academia and industry leaders.

Recommendations for Industry

Placing humans at the center of your Industry 4.0 workforce strategy will ensure that you harness the unique creativity, problemsolving abilities, and emotional intelligence of your workforce.

As the technologies of Industry 4.0 change our work environments from labor-intensive production to automation and AI-driven data processing, industry must adapt to remain competitive and innovative in the global market. Placing humans at the center of your Industry 4.0 workforce strategy will ensure that you harness the unique creativity, problem-solving abilities, and emotional intelligence of your workforce to complement and enhance the capabilities of automation and AI, leading to more sustainable growth and a resilient, future-ready organization.

One fourth of today’s jobs are expected to be disrupted in the next five years by economic pressures and automation, according to the World Economic Forum’s Future of Jobs Report 2023. By focusing on continuous training and upskilling, partnerships with educational institutions and fostering a culture of innovation, manufacturers can ensure their employees are well-prepared for the challenges and opportunities presented by Industry 4.0.

Continuous Training and Upskilling

It’s important to recognize the potential of your current workforce—and prioritizing continuous training and upskilling will be key to success in Industry 4.0. This will ensure your workforce is well-equipped with the digital literacy and technical skills necessary for new automated and data-driven work environments. The path to successful upskilling can look different from organization to organization, but 1) incorporating personalized learning paths, 2) cross-departmental training and 3) mentorship knowledge sharing are three methods that will make your workforce better prepared for the demands of Industry 4.0.

Fostering a Culture of Innovation

Companies must create a workforce culture that embraces and does not fear technological change. This means encouraging and rewarding employees for pursuing continuous learning opportunities and recognizing employees who attain specific skills and certifications related to Industry 4.0 technologies. This incentivizes skill acquisition and development. Fostering an innovative workplace also means actively promoting diversity and inclusion in technology-related roles to tap into a broader talent pool, as well as identifying digital leaders within the organization who can steer the company through the challenges and opportunities presented by Industry 4.0. Throughout this transformation, it’s important to establish regular feedback channels where employees can voice their concerns and suggestions related to training and upskilling programs.

Partnerships with Educational Institutions

Collaboration between educational institutions and industry players is critical to ensuring a future pipeline of skilled talent. But what does this look like in practice? Creating effective partnerships between industry and educational institutions to prepare students for Industry 4.0 requires a strategic approach and a clear plan. Here are some specific steps and practices that industry can take to initiate and sustain these collaborations to help shape educational programs to meet the specific demands of Industry 4.0:

Recommendations for Academia

Institutions must embrace an agile curriculum that not only prepares students for the present, but also instills lifelong learning to navigate the unpredictable terrain of the future job market.

In anticipating the demands of Industry 4.0, academia faces the challenge of cultivating a talent pool with multifaceted skill sets, encompassing not only technical expertise but also adaptability and critical thinking. The evolving landscape of automation, AI, and interconnected technologies necessitates an educational paradigm that fosters creativity and problem-solving. Moreover, collaboration between educational institutions and industry stakeholders becomes paramount to bridge the gap between theory and practical application. As the nature of work undergoes continuous transformation, institutions must embrace an agile curriculum that not only prepares students for the present, but also instills lifelong learning to navigate the unpredictable terrain of the future job market. In short, K-12 schools, colleges and universities must plan for jobs that don't yet exist.

To create a workforce that will remain relevant and competitive, educational institutions need to update curricula through collaboration, foster interdisciplinary education, focus on soft skills and lifelong learning, and support entrepreneurship and innovation

Courtesy of University of Detroit Mercy

Updating Curriculum Through Collaboration

Developments in Industry 4.0 technologies such as AI, robotics, IoT, cybersecurity, and more require continuous adjustments to teaching methods to equip students with pertinent skills. Educational institutions must form strong partnerships with local and global industry leaders so that students can receive real-world experience through internships, coop programs, joint research projects, and one-on-one mentoring. This will support learning and better prepare students for entering the workforce. Teachers are on the front lines of education. Allowing them to adapt lesson plans based on industry needs will provide an adaptive learning experience in the classroom. The curriculum should challenge students to pivot with changing situations. Projects should be altered at various progress points, forcing the students to use critical thinking skills and imagination to adjust and complete the objective on time.

Fostering Interdisciplinary Learning

Industry 4.0 is characterized by the convergence of various technologies. Academics can encourage interdisciplinary education by breaking down silos between departments and faculties. Students who learn robotics, cybersecurity, AI, IoT, and social sciences will develop a broader understanding of the interconnectedness of technologies and their impact on society. Combining disciplines will also lead to well-rounded employees capable of anticipating industry needs in emerging markets and the availability of a skilled workforce.

Focus on Soft Skills and Lifelong Learning

Soft skills are as critical to efficient production systems as hands-on expertise. Educational institutions need to incorporate the development of soft skills such as problem-solving, critical thinking, communication, adaptability, organization, and time management. Creativity is an essential skill that should be encouraged by allowing students to choose courses that will enhance their learning experience and allow them to flex their imaginations. Creative thinkers find ways to use current systems and products and introduce them to new markets and industries. Workers capable of thinking beyond a company's existing environment are essential to growth and profitability.

An important lesson for students is that learning continues after graduation. Continuous education is the only way to remain relevant in the rapidly changing job market. Colleges and universities can offer post-graduate online courses, in-person classes, training, and workshops on updating relevant skills. Academia can partner with government and industry leaders to determine the future of technology and the skills required to be successful in those areas. Private companies and academia can co-create onsite learning opportunities through accredited schools to keep employees trained in the latest innovations and systems.

Support Entrepreneurship and Innovation

Pairing up academia with the private industry sector provides a strong partnership in aiding students to become business owners and innovators. Creating a hub of like-minded thinkers – including teachers, students, technology experts, and entrepreneurs – allows for developing new business ideas and innovations. These hubs can study previous successful endeavors, identify future industry needs, problem-solve for possible setbacks, and connect potential investors to students looking for startup capital. Immersion into a community of tech-minded individuals will motivate students to develop new technologies, improve existing products and systems, and create companies that will offer valuable services to various industries and individual customers.

Courtesy of University of Detroit Mercy

Recommendations for Government

Every manufacturing job spurs 7 to 12 new jobs in other related industries, helping to build and sustain our economy.

Government plays a critical role in steering the labor force towards Industry 4.0, and their strategy should be one that’s both comprehensive and inclusive. Why is it so important government get involved in this conversation? Because publicly funded grants and incentives allotted for maintaining a well-trained workforce provide a tremendous economic boost to the country.

According to defense.gov, manufacturing represents just 11% of U.S. gross domestic product, yet it accounts for 35% of American productivity growth and 60% of U.S. exports. Manufacturing is the main engine of innovation in the U.S., responsible for 55% of all patents and 70% of all research and development spending. Today, manufacturing employs over 12.5 million people and provides rewarding, living-wage jobs. Every manufacturing job spurs seven to 12 new jobs in other related industries, helping to build and sustain our economy.

Elected officials and government organizations are tasked with fostering workforce inclusion and diversity, recognizing that a diverse talent pool is essential for innovation and holistic problem-solving in our technologically advanced world. Moreover, strategic investments in digital skills are imperative to empower individuals with the competencies necessary to thrive in the digital era.

Collaborative initiatives between government, industry and academic stakeholders are essential to provide the requisite support structure, ensuring that businesses can adapt to emerging technologies seamlessly. A well-developed strategy not only optimizes resource allocation, but also serves as a blueprint for sustained economic growth, technological advancement, and societal progress in the era of Industry 4.0.

Fostering Workforce Inclusion and Diversity

Government must ensure that Industry 4.0 benefits are accessible to all segments of the population by implementing policies that address the digital divide by expanding broadband access to underserved areas and supporting affordable internet connectivity.

Citing FCC statistics in a May 2023 article, Reuters reported that 8.3 million homes and businesses lack access to high-speed broadband internet. In 2021, Congress approved $42.45 billion to address the deficiencies and $14.2 billion more for a voucher program allowing low-income families to receive $30 monthly to pay for a service plan. Eighteen million households signed up for the program, but FCC Chair Jessica Rosenworcel said she expects the program to run out of money without congressional action.

The government should also encourage diversity and inclusion in the tech workforce to tap into a wider talent pool and provide equal opportunities for all citizens. According to Statista, as of 2021, women made up about 29% of all functions in technology companies, and ethnic minorities made up about 22%. However, the representation of women and ethnic minorities was smaller on technology teams. For example, women and ethnic minorities comprised around 12% of cybersecurity teams respectively.

Two groups often overlooked when adding to the Industry 4.0 workforce are people with disabilities and older workers who are transitioning into a new field. The government can aid those workers by funding accessible learning environments for the disabled and reskilling programs with specific targets for older workers with previous work experience.

Invest in Digital Skills

Governments can subsidize education through individual scholarships awarded in high-demand technological fields and grants given to colleges and universities. Scholarships should be allowed for trade schools and earning two-year and 4-year degrees.

Colleges and universities receiving grant money should earmark a significant portion of those funds toward upgrading classrooms to facilitate Industry 4.0-related training and education.

Federal funds can also be funneled into free online courses, certifications, and workshops.

Supporting Industry Through Collaboration

Beyond preparing the Industry 4.0-skilled workforce, there are more ways the government can aid the industry. Government tax breaks for creating high-paying careers in technology will help keep jobs in the U.S. Grants and incentives can be offered for research & development projects—available for the public and private sectors—driving the creation of new technologies and remaining competitive in the global economy.

Government-sponsored innovation hubs or technology clusters can serve as focal points for collaboration, allowing businesses and researchers to work together on cutting-edge projects. New technologies and innovations will lead to new career opportunities for the workforce.

INDUSTRY ANALYSIS WITH MICHIGAN MANUFACTURERS ASSOCIATION

Expand Your Employee Attraction, Preparation, and Retention Efforts by Leveraging Industry 4.0 Technologies

By John J. Walsh, President & CEO, Michigan Manufacturers Association

Nearly every industry faces challenges around attracting, rapidly upskilling, and retaining highly talented people. Each of these have their own nuances. Equally, there are many potential solutions, and Industry 4.0 offers plenty of tools and technologies that can help employers address these challenges.

When it comes to retention, the problems—and the solutions—often occur in the realms of communication, recognition, and mutual respect. There are Industry 4.0 technologies that can, for instance, improve lines of communication between managers and production floor workers or between workers on different shifts. But much of the retention challenges related to Industry 4.0 come from the friction between people and technology. For a great overview of retention challenges and examples of what business leaders can do and are doing to respond, check out HR4.0: Shaping People Strategies in the Fourth Industrial Revolution published by the World Economic Forum.

For the rest of this article, let’s focus on attraction and preparation.

The 2011 documentary film Miss Representation explored the question of why women are under-represented in positions of power and influence in America. Marian Wright Edelman, founder and president of the Children’s Defense Fund, summed it up well when she said, “You can’t be what you can’t see.” That sentiment just as readily applies to careers and goes way beyond gender.

The “dream jobs” of all young people directly correlate to what they’re exposed to and the pop culture in which they grow up. In the past, if you asked a kid what he or she wanted to be when they grew up, you might get answers like professional athlete, astronaut, teacher, doctor, and nurse.

"Every industrial revolution brings along a learning revolution."

-Alexander De Croo Prime Minister of Belgium

The key top-line message is that manufacturing is a high-tech industry with tons of opportunities for creative people who want to make a positive impact in the world.

There was even a blip in the 1990s when lots of kids wanted to be a marine biologist thanks to the film Free Willy. The flipside of that is that if young people didn’t see certain professions in their day-to-day lives, on TV, or in the movies, they couldn’t imagine being them.

Things haven’t changed all that much for today’s youth, except for their pop culture inputs. In 2021, Junior Achievement sponsored a survey of teenagers between the ages of 13 and 17. Thirty-seven percent of participants cited “social media influencers” as the primary inspiration for future career inspiration and 60 percent of the teens said they’re more interested in starting their own business than working a traditional 9-to-5 job. And a 2019 Harris Poll of 8-to-12-year-olds for the LEGO Group found that “YouTuber” was the number one career choice for 29 percent of the 3,000 kids surveyed.

Crazy? Not if you dive deeper into what these young people are really saying. A 2020 Dream Jobs Report from the Organization for Economic Cooperation and Development revealed that half of the responding teenagers “have a deep sense of uncertainty about which traditional professions will even exist when they grow up.”

This persistent dread is fueled both by the amount of change these teens have lived through and by the messages they absorb from social and other media. And this translates into them being attracted to careers where they perceive they will have some measure of personal control and job security, where they will find purpose and fulfillment, and where they’ll be able to “make a difference” in the world. So, it’s not YouTube or TikTok that’s the attraction, per se. It’s the sense of independence, impact, and purpose.

Another interesting finding from nearly all these surveys and studies: many of these young people are most highly interested in careers that involve use of “lots of technology.” They see technology, digital devices, and machines as conduits for creativity. According to the Nominex 2022 Digital Youth Index, many young people are attracted to opportunities “to develop skills that allow them to create hardware and/or software.” The age group most excited about such opportunities are 8- to 11-year-olds, but that enthusiasm continues at least through age 25 (which is generally the cap age for definition of “young adult”).

This presents a huge opportunity for manufacturers to capture the imaginations and interest of young people currently entering the job market and the next generation of talent. Manufacturers can benefit by association with cutting-edge technologies like additive, nano, and bio/medical manufacturing, even if they aren’t directly or heavily involved in those sectors. The key top-line message is that manufacturing in its entirety is a high-tech industry with tons of opportunities for creative people who want to make a positive impact in the world.

On both the attraction and preparation fronts, manufacturers need to embrace and leverage technologies like augmented reality, robots and cobots, and blended-learning approaches that use virtual simulators and labs in coordination with high-tech industry-equivalent manufacturing training equipment.

Tooling-U SME, for instance, has developed Virtual Lab packages that integrate immersive VR tech and curriculum with eLearning classes and Skills Guides. For more info, visit learn.toolingu.com, and click the Virtual Labs link from the Manufacturing Products & Services menu.

Augmented Reality systems like those made by Michigan-based LightGuide, Inc. can be used both in the classroom and on the shop floor.

And a host of great standalone virtual and/or hardware simulators are available. Looking just at the area of CNC machining and cutting, for example, options range from the Haas Next Generation Control Simulator—a real full-function Haas hardware control panel and keypad with visual simulator—to full “digital twins” of entire CNC mills, lathes, waterjets, laser cutters and more that simulate Haas, Mazak, Hurco, Cincinnati, Siemens, Fanuc, Index, Doosan, Makino and other machine tools. The Michigan Manufacturing Technology Center staff is an excellent resource for exploring what’s available for training and/or in production environments.

Using these Industry 4.0 technology tools aren’t a good idea just because they’re attractive to young people. They’re also proven to lower the cost of training and speed up time-to-competency.

To really seal the deal on attracting and preparing new talent in Industry 4.0-related careers, consider supporting one or more industry-recognized certification efforts and training programs that integrate them. These include:

• Multiple Certified Industry 4.0 Associate, Specialist and Professional certifications from the Smart Automation Certification Alliance

• Certified Additive Manufacturing Fundamentals and Technician certifications, Robotics in Manufacturing Fundamentals certification, Certified Manufacturing Technologist and Certified Manufacturing Engineer certifications from SME.

• Industry 4.0 Smart Production Specialist and Additive Manufacturing Designer certifications from NIMS.

• Certifications endorsed or offered by training curricula and systems developers like Amatrol, Festo and SMC.

Industry 4.0 may have started as an industrial revolution, but it’s also transforming delivery of skills training. In addition to changing the way manufacturers do business, Industry 4.0 can change the way you attract, prepare and retain highly skilled talent.

In addition to changing the way manufacturers do business, Industry 4.0 can change the way you attract, prepare and retain highly skilled talent.

Automation Alley is a nonprofit technology business association and Digital Transformation Insight Center focused on driving the growth and success of businesses in Michigan and beyond through innovation and automation. With a global outlook and a regional focus, we foster a vibrant community of innovators, entrepreneurs, and business leaders through opportunities for collaboration and learning. Our programs and services help businesses develop the skills and expertise needed to effectively jumpstart or accelerate digital transformation. By bringing together industry, academia, and government, we aim to create a dynamic ecosystem that drives innovation and growth across Michigan.

At Automation Alley, our mission is to help businesses thrive in the rapidly changing digital economy by equipping them with the knowledge, insights, and tools to develop a software-first mindset that leverages the power of automation, AI, and other cognitive technologies. We believe that by working together, we can build a stronger, more innovative, and more competitive economy for the future.

Wealth, prosperity and equality through technology.

Publication Credits

Editorial: Nicole Kampe, Dennis Burck, Joseph Gray

Graphic Design: Laura Gearhart

Photography: Sean Healey

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This content is based upon work supported by the Department of Energy Office of Cybersecurity, Energy Security, and Emergency Response (CESER) under Award Number(s) DE-CR0000023.

This content was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor any of their employees, makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information, apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer, or otherwise does not necessarily constitute or imply its endorsement, recommendation, or favoring by the United States Government or any agency thereof. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof.