Skill Crisis Solutions: A Glimpse into the Future of Manufacturing Jobs in 2024

The Indian Manufacturing Sector is experiencing a golden era, contributing significantly with a 17% share of the nation’s economy. In a noteworthy projection, the global economy stands to gain an annual increase of over $500 billion by 2030, courtesy of the flourishing Indian manufacturing sector. 

The government has set an ambitious target to elevate the manufacturing sector’s GDP share to 25% by 2025, with the potential to export goods worth $1 trillion by 2030. These robust conditions necessitate a heightened hiring intent in the coming years.

Mahantesh CN, Head of Strategic TA Initiatives at Cyient, underscores the industry’s commitment to fortifying its foundation for future growth. He states, “We prioritize preparing the platform for growth, ensuring a solid foundation for our future endeavors.”

The Heavy Engineering and Manufacturing sector has long been facing the significant challenge of a shortage of skilled professionals. In 2024 and beyond, the rapid evolution of Industry 4.0, marked by advancements in artificial intelligence (AI), machine learning (ML), and automation, will outpace the availability of qualified candidates even further. 

A recent survey highlights the gravity of the situation, revealing that a staggering 76% of organizations in this sector are grappling with a skilled labor shortage. This shortage manifests in various challenges, ranging from production delays and demand-supply mismatches to employee burnout and attrition. 

A strategic and forward-thinking approach is indispensable in resolving the prevailing skill shortage within the Heavy Engineering and Manufacturing sector. A proficient talent pool is not merely defined by technical expertise but also by its ability to adapt to the ever-evolving industry demands. 

A closer examination of the root causes fueling the shortage is imperative to establish a steadfast solution for the skill crisis. Several factors contribute to the intricacy of this challenge, with a lack of skill-based education playing a pivotal role. 

Tagged recently published the India Decoding Jobs Report 2024, which comprehensively discusses factors that affect the manufacturing sector along with trends that recruiters can pick up to build a robust talent recruitment plan. 

Here are some strategies that manufacturing companies can integrate into their hiring policies to plug the skill crisis in the industry, and build a future-ready workforce:  

• Prioritize Adaptable Candidates in Hiring

More than specific skills, recruiters are redirecting their attention toward candidates who are willing to learn and can keep pace with advancements. Amit Kanojia, Head of Talent Acquisition at Nuvoco, said, “Ready to Absorb talent will be the key in the hiring process.”

• Focus on Upskilling and Reskilling

Skills enhancement will be key in overcoming the skill gap in the present talent pool. Upskilling and reskilling through training programs, skill development initiatives, and educational investments will be pivotal to keep employees abreast of the latest technological advancements.

• Culture and Capabilities Investment

A holistic approach to organizational development is taking center stage. This entails cultivating a work environment that fosters a positive culture, promoting innovation, collaboration, and ongoing learning.

• Industry-Academia Collaboration

TA experts believe that the collaboration between educational institutions and industry stakeholders is the most effective way to transition graduates into the workforce. Companies are aligning curriculum with real-world industry needs that are critical for producing job-ready professionals. 

• Recruiters’ Evolving Role

2024 demands a more strategic role for recruiters, involving a deeper understanding of the skills required in the manufacturing sector and a proactive approach to talent acquisition. Prepare for the rising demand for talent in cybersecurity and data domains as well as in non-technical roles. Mr. Mahantesh- Cyient, suggests recruiters take on higher accountability, showcasing their true value in supporting business functions.

There is a promising surge in hiring intent within the heavy engineering and manufacturing sector, which currently employs 35.6 million individuals. A comparative analysis between fiscal years 2022-23 and 2023-24 reveals a noteworthy increase from 25% to 35%. 

This upswing is attributed to manufacturing companies strategically gearing up for increased demand owing to the beginning of India’s rise as a global manufacturing hub, and the integration of emerging technologies. 

Jaimon Antony, Head HR -India, ESAB Corporation, highlighted, “The Indian manufacturing sector is ready for substantial expansion and development, marked by an increasing number of Global Capability Centres (GCCs).

According to the report, 85% of companies and organizations have expressed plans to intensify their utilization and integration of emerging technologies, underlining substantial opportunities for professionals with new-age skills.

In 2024, there will be an increased focus on diversity and retention. The representation of women in the Indian workforce is set to increase from 33% in 2023 to an anticipated 36% in 2024. Around 55% of the total hiring will come from consultants, 20% from campus, and 10% each from professional networks, social media, and job portals. 

Overall, the manufacturing sector is poised for a splendid run in the coming few years. Aligning recruitment strategies with evolving employee preferences and industry dynamics will be crucial to ride this growth wave. 

The India Decoding Jobs Report 2024 offers exclusive industry-wise insights into the Indian job market. The extensive report is the result of meticulously conducted surveys and thorough conversations with respected talent acquisition experts in various sectors throughout India. It has evolved into a favored reservoir of data and recommendations, serving as a valuable resource for guiding recruitment decision-making.

To download your exclusive copy of the report, click here or write to us at contact@taggd.in.