Manufacturing and supply chain success depends on more than technology—it depends on people. In this Supply Chain Byte, Lisa Anderson highlights the growing skills gap among early-career professionals and explains why and how investing in developing the next generation of supply chain talent is essential for long-term success.

On both ends of the spectrum – from retiring Baby Boomers to the complications of artificial intelligence for entry level positions – building the next generation of talent is essential. 12% of the manufacturing workforce will be lost via retirement. Skills will be depleted as the largest generation in history leaves the workforce. On the other hand, AI is impacting entry level jobs currently. According to the World Economic Forum, entry level jobs are down almost 30% since January 2024. For those jobs highly exposed to AI, entry level jobs are down by 35-40%. According to Axios, the U.S. postings for junior or associate is down 7% year over year. Worse yet, it might make sense if you think about the report by the General Assembly. It says that only 22% of leaders say that entry level employees are very or completely ready to do their jobs. 

What should companies do? There are many strategies for success. A few of the best include:

• Think differently: Start by thinking differently. The best must not find a benefit of AI, focus effort with their retiring high-skilled resources and stop investing in young talent. In fact, they must do both to thrive in the next decade.
• Private public partnerships: We must start thinking beyond traditional strategies. Depending on your industry and situation, consider public private partnerships for training, development, expansion, etc. 
• Community colleges: Partner with community colleges to offer skills development and hands-on training programs. For example, an aerospace client offered hands-on training as well as supply chain education in conjunction with the local community college and other training partners.
• Collaborate aggressively: Whether it is a competitor or strategic partner, find people who offer win-win opportunities to bridge this gap and take them!
• Take responsibility: Get started, even if you have to develop programs on your own. Ensure you are providing hands on training, technical training, apprenticeships, mentorships, etc. Leaders must build talent as there will not be enough top talent to steal from the competition. 

If you are interested in reading more on this topic:
Upskilling: Strengthening Today, Safeguarding Tomorrow