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EPP Europe P2.2023

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» PCB & ASSEMBLY<br />

Transforming labour shortages into business advantages<br />

Addressing labour challenges<br />

in electronics manufacturing<br />

In 2014, a study conducted by the Boston Consulting Group predicted that many countries<br />

would experience labour shortages in the 2020s and “a massive shortfall” by 2030. This<br />

is proving correct. In an age of supply chain disruptions and generational workforce<br />

evolution, manufacturers are struggling to find qualified employees. Increasing digitalization<br />

may be the key to finding and retaining talent.<br />

» Oren Manor and Markus Sauter, Siemens Digital Industries Software<br />

Staffing and resource constraints<br />

According to Ranstad, an aging global population is a<br />

significant factor in the current labour shortage. By<br />

2030, 16 percent of the world population will be 65 and<br />

over, and, by 2050, this proportion will have doubled.<br />

Finding skilled replacements is an urgent matter.<br />

Manufacturing today’s complex products demands<br />

a higher level of skilled workers. Adaptability and<br />

flexibility are increasingly important as shorter lead<br />

times create the need for more versatile workers who<br />

can perform multiple functions.<br />

The convergence of<br />

various major global<br />

trends is increasing the<br />

complexity of electronics<br />

manufacturing<br />

and impacting the<br />

workforce<br />

Even before Covid-19, staffing was a challenge.<br />

Then, with the arrival of the great resignation,<br />

the challenge became even more acute. Today, the<br />

convergence of various global events and industry<br />

trends is increasing the complexity of electronics<br />

manufacturing, and this is having a knock-on effect<br />

on recruitment. Understanding how each factor impacts<br />

the workforce is vital to finding effective solutions<br />

to labour shortages, so here’s a short overview.<br />

Supply and component shortages<br />

Global events such as the pandemic, the Russian<br />

war with Ukraine, international trade tensions, global<br />

shipping bottlenecks and surges in demand for<br />

materials all contribute to supply chain volatility.<br />

This impacts every sector from metals to chemicals,<br />

including, of course, manufactured components, as<br />

well as semiconductors and related devices. This<br />

level of unpredictability directly affects manufacturing<br />

workflows.<br />

Source: Siemens<br />

Sustainability<br />

The desire to create a more sustainable work environment<br />

that lowers ecological impact, reduces<br />

energy usage, reduces waste and improves operational<br />

excellence is transforming the workplace into<br />

a healthier space for employees.<br />

Fortunately, solutions to these issues are beginning<br />

to emerge. According to Ranstad’s 2022 study, “Why<br />

is there a global labor shortage?”, it is vital that employers<br />

understand the candidate-driven employment<br />

market, and the factors valued most-highly by<br />

workers. These are competitive salaries (58 %), job<br />

security (56 %) and work environment (55 %). The<br />

biggest opportunity for employers to attract skilled<br />

workers is to address the working environment. And<br />

digitalization could be the key to success in this area.<br />

Finding and retaining talent<br />

If you want to land talented individuals in today’s<br />

competitive hiring environment, it is essential to<br />

think outside the box. Increased digitalization can<br />

help upgrade production environments and elevate<br />

worker experience, paving the way for new recruitment<br />

opportunities.<br />

Digitalization can help make the working environment<br />

a more enjoyable place for younger workers.<br />

30 <strong>EPP</strong> <strong>Europe</strong> » 11 | 2023

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