From long-term factors like increasing automation to short-term influences like the COVID-19 pandemic, the manufacturing industry is changing in Wichita, the United States and the entire world. For companies in central Kansas, manufacturing staffing agencies in Wichita can offer the temporary staffing services needed to meet the labor challenges of today and the near future.
Manufacturing companies need to prioritize organizational agility to be able to navigate particularly turbulent periods. Inflation, stock market volatility, supply chain issues and other factors will come and go. Companies that remain nimble are not only able to guard against negative effects, but they are also better positioned to turn crises into opportunities.
Over the coming years, a major obstacle to organizational agility will be staffing issues. According to research from Deloitte, the manufacturing industry we’ll have a labor shortfall of 2.1 million jobs by the end of this decade. The Deloitte study also found many manufacturing companies have made recruitment their top priority for the near future.
In addition to labor shortages, manufacturers must also navigate the ongoing rise of e-commerce, as well as the shifting expectations around this form of commerce. According to data from CBRE, American ecommerce sales will grow to comprise 26 percent of all retail sales by 2025. Manufacturers and their supply chains must prepare for this ongoing increase accordingly.
Supply chain disruptions unleashed by COVID-19 are only complicating matters. According to survey data from Accenture, 94 percent of Fortune 1000 companies have experienced post-COVID supply chain disruptions. As many of us have experienced personally, the result has been slow deliveries and supply shortages.
To address this situation, many manufacturers will need to step up their logistics operations and staffing, potentially with a focus on localizing supply networks. Given that manufacturing is already experiencing a labor gap, this increased need for labor could spell trouble and limit growth, especially for organizations that cannot address their labor needs.
How Manufacturing Staffing Agencies Can Help Wichita Create a Future-Ready Workforce
Manufacturing temp agencies can provide temporary staffing services that prepare companies for success in their constantly evolving industry.
According to an old trope, automation and other new technology will lead to fewer jobs in manufacturing. But the reality is far more complicated than the cliche. Technology might make some jobs obsolete, but it often leads to the creation of new, different jobs. Companies looking to hire for the future should expect a long-term shift in the type of open roles they need to fill.
For the short term, manufacturing companies can make their operations future-ready by having a workforce that can change with the times. According to data from the World Economic Forum, a majority of manufacturing employees will need upskilling by 2025 as emerging technologies like automation become increasingly adopted.
While upskilling maybe critical for success in the near future, many manufacturing companies struggle to engage their workforce in upscaling or training programs. According to a recent poll from Tooling U, slightly more than one-third of manufacturing businesses invest in employee development.
One way to address this disconnect is for manufacturing companies to ensure they are getting adaptable people into the organization. Recruitment efforts should focus less on candidates’ technical proficiency and more candidates who have high potential to learn new abilities and perform skills that cannot be automated, such as creativity and problem solving.
When companies make smart tactical adjustments to their recruitment efforts, they take control factors they can influence and put themselves in position for future success.
Hiring Skilled Manufacturers as a Result of Emerging Technologies
Skilled manufacturing workers who can tackle emerging technologies are a premium asset. according to research from Gartner, just 16 percent of new employees have the skills needed for their position.
Manufacturing staffing agencies are particularly well positioned to help in this regard. Recruiters at these agencies specialize in finding top candidates that are able to embrace new technologies, whether it’s for positions related to production, warehouse operations or shipping.
Because they are poised to help companies in a specific industry, manufacturing staffing agencies expedite internal recruitment processes. When a manufacturing company partners with an experienced agency, it gains fast access to employees that can work with newer technologies. This allows manufacturing companies to quickly seize opportunities made available by investments in new technology.
Addressing Labor Shortages with Manufacturing Temp Agencies
Recruiting and retaining good employees is a challenge in any economy, especially for manufacturing companies. However, recent times have been particularly challenging.
Spurred by the COVID-19 pandemic, the so-called Great Resignation has roiled the labor market. According to data from Zippia, an average of nearly 4 million workers left their job every single month in 2021, resulting in 47 million Americans resigning throughout the year.
Workers in just about every industry are seeing labor shortfalls and taking advantage of the situation by aggressively seeking out new opportunities. Resignations and absenteeism have spiked as laborers enjoy unprecedented leverage.
In addition, there appears to be growing momentum for organized labor. High profile unionization efforts have emboldened workers who see an opportunity to get more from their employers through collective bargaining.
While economic factors will play their part in the labor market, the market is currently structured in favor of job seekers, and this doesn’t appear to be changing anytime soon. Therefore, manufacturing companies need to adjust their labor strategies accordingly in order to stay competitive. While some companies are offering higher pay, surveys show that many people will take a new job with lower pay if it feels like the right move. This isn’t to say that companies should throw up their hands when it comes to employee retention initiatives; however, companies should also be looking at outside solutions.
Manufacturing temp agencies provide companies with the capacity to grow their labor force as needed. Furthermore, temp-to-hire services allow companies to screen temporary employees before potentially offering them full-time positions.
Temporary staffing services also provide manufacturing companies with access to skilled tradespeople. Carpenters, electricians, plumbers, machinists and welders are all very much in demand. A temporary staffing agency can work with manufacturing companies to address the challenges associated with hiring tradespeople.
Manufacturing Staffing & Recruiting Agencies Increase Production
If there’s one word you could use to describe the post-COVID economy, it’s volatility. While supply chain issues and inflation threatened to slow down the economy, high demand and relative prosperity are pushing production capacities.
In order to meet high demand for their products, some companies ask full time employees to work regular overtime. However, asking employees to work overtime week after week quick can quickly result in employee burnout. on top of that, there are limits to what overtime can achieve. One study found diminishing returns after employees worked 50 hours in a week and working more than 60 hours for eight weeks has been found to not produce any benefit at all.
Given the limited benefits provided by overtime, a superior solution is to leverage a temporary staffing solution and allow full time employees to continue working their regular schedules. If temporary employees are integrated effectively, they can also bring fresh energy and ideas to a manufacturing company. This, in turn, can benefit full time employees.
Temporary employees can also allow companies to expand shift work. Manufacturing facilities that do not operate on a 24-hour schedule and those that have limited shift work are not using their production equipment to full capacity. Maintaining a “capacity cushion” does have its benefits with respect to organizational agility, but it is critical to optimize the size of this cushion. If the cushion is too large, additional labor is an effective solution.
On top of that, manufacturing staffing and recruiting agencies offer a lower risk option compared to hiring additional full-time employees. These agencies offer temporary employees at a lower rate compared to full time employment.
If some temporary employees turn out to be impressive, a manufacturing company will typically have the option of making their job permanent. This time-to-hire approach it is an ideal way to bring new employees into a company. Compare to someone coming in off the street, a company temp is better affiliated with the company values, company culture and how to effectively do their job.
Using temporary and temp-to-hire solutions is particularly useful during times of economic uncertainty, like the one we are currently experiencing. Through temporary staffing solutions, manufacturing companies are prepared for unexpected labor and business issues, should they arise.
Partner with Top Notch Personnel for Manufacturing Staffing Services in Wichita
While there are many manufacturing temp agencies in Wichita, Top Notch Personnel is Wichita’s staffing and recruiting agency of choice.
We our laser focused on connecting the right candidate to the right job, so that both parties benefit. As a result, our clients come back for repeat business, while job seekers regularly refer us to others in their professional networks.
If you are ready to start developing a labor solution that produces results you can feel, please contact us today.