Manufacturers need to master data analytics and robotics to adapt to demographic changes, says ABI Research. Source: Adobe Stock
In January 2024, the U.S. Bureau of Labor Statistics reported that U.S. manufacturers had more than 600,000 vacancies. Two contributing factors include a wave of baby boomers reaching retirement age and a dearth of younger workers considering careers in manufacturing. ABI Research last week predicted that the global installed base of commercial and industrial robots could reach 16.3 million in 2030 as manufacturers attempt to offset the baby boomer exodus.
“Companies that take a step back will view the demographic shifts as an opportunity to revamp processes and operations,” stated Michael Larner, a distinguished analyst at ABI Research. “It is not about technology filling former employees’ roles but how technology augments people’s working lives.”
“The nature of manufacturing work will change with roles for robot programmers and for developing models for machine learning tools coming to the fore,” he added.
Manufacturers to capture data, turn to automation
Staffers at manufacturers need to be more data-savvy, said ABI Research. For example, technicians are concerned with avoiding unplanned downtime and improving a machine’s overall equipment effectiveness (OEE).
In this role, they will use data analytics to monitor asset performance and calculate OEE, ABI said. This trend will benefit the likes of Mitsubishi Electric, Rockwell Automation, PTC, and Siemens, as well as smaller suppliers such as Crosser, Litmus, Machine Metrics, Seeq, Sight Machine, and Tulip.
A major concern for manufacturers with the wave of retiring baby boomers is the loss of “tribal knowledge” — the detailed knowledge of equipment, processes, and customers.
“Manufacturers must capture that tribal knowledge as employees head for retirement as part of a workforce planning strategy,” Lerner said. “Improving mentoring and knowledge sharing processes are just as important as investments in digital technologies for manufacturers to thrive in the coming years.”
To make manufacturing a more desirable career path, manufacturers and technology firms need to work with education bodies to provide recruits the skills to fill the vacancies.
About ABI Research
These findings are from ABI Research’s report on “Handling the Baby Boomer Exodus in Manufacturing.” This report is part of the company’s Industrial & Manufacturing Markets research service, which includes research, data, and analyst insights.
New York-based ABI Research described itself as a global technology intelligence firm positioned at the intersection of technology providers and end-market companies. It provides research and guidance for technology implementations and strategies to attract and retail customers.
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