- The Next-Gen Workforce: Manufacturing Insights 2025 report, urges leaders to adopt AI-enabled, ethical, and skills-first learning models
As the manufacturing sector navigates rapid digital transformation, a new report by KNOLSKAPE warns of a looming talent crisis that could cost the global economy USD$ 1 trillion by 2030. The Next-Gen Workforce: Manufacturing Insights 2025 report, based on responses from 26 leading manufacturing companies representing 47,000 employees across APAC, Americas, Europe, and the Middle East, reveals that 2.4 million positions are projected to remain unfilled by 2028, even as factories become smarter and more automated.
The skills gap is at the center of this challenge. Nearly two-thirds (64.3%) of manufacturing leaders prioritize technical expertise such as CNC operations, automation, and data analytics, while 71.4% of Manufacturing Leaders Prioritize AI Bias Mitigation and Human-Centric Design. At the same time, with 85% of employees expecting AI to affect their jobs within 2–3 years, leaders stress the importance of adaptability, collaboration, and emotional intelligence.
Commenting on the findings, Rajiv Jayaraman, Founder & CEO, KNOLSKAPE, said “The future of manufacturing isn’t just about machines, it’s about people who can learn, adapt, and work together faster than change itself. Our report shows it’s time to move beyond one-off training programs. Companies that focus on building a skilled, ethical, and AI-ready workforce today will be the ones leading the industry tomorrow.”
Key Takeaways from the Report
- Skills-first transformation is urgent: 64.3% of leaders prioritize technical skills, while 71.4% highlight the need for transparent, explainable AI systems.
- Middle managers hold the key: Most organizations target this group most for upskilling, seeing them as the bridge between strategy and shop floor.
- AI needs ethics and trust: 71.4% of leaders stress the importance of transparent, explainable AI to drive adoption.
- Implementation challenges persist: Budget constraints (71.4%), difficulty measuring ROI (64.3%), and integration challenges (57.1%) are slowing innovation in learning and development.
The report urges manufacturing leaders to rethink workforce strategies, focusing on skills-based talent models, human-machine collaboration, ethical AI, and microlearning. By making learning part of daily operations and developing leaders at all levels, companies can turn disruption into long-term competitiveness.
