Manufacturers are at a crossroads. As they strive to modernize operations through smart manufacturing and digitization, many are encountering significant workforce-related challenges that are impacting the bottom line.
According to Gartner®, 84% of manufacturers plan to invest in connected worker strategies in the next year, which we believe is highlighting a pivotal shift toward empowering frontline teams with digital tools. And, in the 2025 State of Smart Manufacturing report, manufacturers cited for the third year in a row that a lack of skilled workforce was the top reason they struggle to outpace the competition.
But the gap isn’t only about hiring more people – it’s about evolving the existing workforce to thrive in a digital-first environment. But how? Here are three workforce mistakes manufacturers are making identified from our findings in the latest Gartner report “Use 3 Levels of Value to Manage Connected Factory Worker Initiatives” along with actionable strategies to address them.
Mistake #1: Using legacy or homegrown digital tools that lack scalability and real-time connectivity
Many manufacturers are still using homegrown solutions or outdated digital tools that mimic paper-based processes. These systems may digitize information, but they don’t enable real-time visibility, contextualized insights or seamless collaboration — all of which are essential to minimizing human error and inefficiencies.
On the flip side, the latest Gartner report indicates that digitizing routines associated with total productive maintenance (TPM) or targeted methods and procedures (for example, clean-in-place [CIP], changeovers, or failure mode and effects analyses [FMEAs]) can directly impact equipment uptime or reduce human error. In some instances, human error reduction can be 40% or more.
And, according to the report, one manufacturer digitized 50% of operator tasks and drove a significant reduction in operator interventions. This expanded into double-digit uptime increases and labor productivity gains.
Ready to dig deeper? Download the full report now: “Use 3 Levels of Value to Manage Connected Factory Worker Initiatives”
Mistake #2: Not using human-centric workforce strategy
Manufacturers that view the implementation of connected factory worker initiatives as solely a technological endeavor are missing a critical piece of the puzzle: the individual workers.
Consider this: 43 percent of the respondents to the Gartner survey indicated that a lack of formal career pathing and skills development initiatives for existing employees constrain their digital strategies. However, the Gartner report states that improving the human factor and making people better at their jobs is "core to unlocking any value from connected factory worker initiatives."
Gartner also indicates that flexibility is equally effective at engaging and retaining employees, yet leaders hesitate to embrace it. Unfortunately, only 57% of survey respondents are developing strategies to bring flexibility to their hourly workforces.
The key takeaway here is that the most successful manufacturers will create ways to connect with the organization’s employee value proposition to enhance employee performance, retention and well-being.
Mistake #3: Settling with good initial results
Settling for merely achieving initial success with connected factory worker initiatives is a common trap for manufacturers that can lead to missed opportunities for long-term transformation.
According to Gartner, the initial, minimum viable outcomes — removing human error, increasing safety and well-being, reducing manual processes, structuring workflow and improving data quality — often provide “good enough” returns to justify an initiative’s worth.
But the report cautions manufacturers to view initial successes as stepping stones rather than the final destination: “While financial ROI is often satisfactory, there is a risk of improvements plateauing, causing operational excellence to become stale.” The report from Gartner outlines three levels of value that manufacturing strategy leaders can use to fully realize the potential of connected factory initiatives in their organizations.
Conclusion: To succeed in the era of smart manufacturing, companies must invest in their most valuable asset: their people.
More and more manufacturers are shifting to focus on this for the future – in fact, 84 percent of respondents to the 2023 Gartner Smart Manufacturing Strategy and Implementation Trends Survey report intend to invest in the development of connected factory worker strategies in the next year.
By addressing these workforce challenges head-on, manufacturers can build a resilient, skilled and engaged team ready to meet the demands of the future.
Download the Gartner report to discover the 3 Levels of Value that can transform your frontline workforce and drive long-term operational excellence.
Gartner, Use 3 Levels of Value to Manage Connected Factory Worker Initiatives 4 November 2024, Simon Jacobson
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