Crafting the Workforce of Tomorrow: Manufacturing Hiring Trends Unveiled for 2024

The Indian manufacturing and heavy engineering sector holds a pivotal position in the nation’s economic framework, showcasing remarkable growth over the past year, buoyed by a slew of government initiatives and policies. 

Insights from Taggd’s annual flagship India Decoding Jobs Report 2024 reveal a sector boasting a substantial $450.86 billion market size, contributing 17% to the Indian economy. 

With 35.6 million individuals employed within its folds, the sector is set to experience a notable 15% year-on-year change in hiring for 2024. Against this backdrop, the government sets forth ambitious aspirations, aiming to elevate the manufacturing sector’s GDP share to 25% by 2025. Furthermore, a visionary goal is outlined, envisioning the export of goods worth a staggering $1 trillion by the year 2030.

However, to meet these targets, there are several challenges that will need to be overcome. We will analyze all of it in this article.

1. Digitalization and Automation

The principles of Industry 4.0 are driving a transformative wave in the Indian manufacturing sector. This shift has led to an unprecedented demand for skilled professionals well-versed in cutting-edge technologies such as artificial intelligence (AI), machine learning (ML), and industrial automation. 

Companies are actively seeking talent to enhance their manufacturing processes, improve efficiency, and stay competitive in the rapidly evolving landscape.

2. Sustainability and Green Engineering

The emphasis on sustainability has created a significant uptick in job opportunities for professionals specializing in renewable energy, eco-friendly materials, and sustainable engineering solutions. 

With growing awareness of environmental concerns, companies are actively incorporating green practices into their operations. This has resulted in a surge in demand for experts who can design and implement environmentally conscious solutions, contributing to both corporate responsibility and global environmental goals.

3. R&D

Recent data points to a remarkable 42% growth in research and development (R&D)-related jobs during the last months of 2023. This surge reflects the increasing importance placed on innovation across various industries. 

Jaimon Antony, Head HR – ESAB Corporation, India, said, “In 2024, we are anticipating a significant shift of roles from Europe to India, especially in R&D and Tech GDC. The Indian manufacturing sector is ready for substantial expansion and development, marked by an increasing number of Global Capability Centres (GCCs).” 

Companies are heavily investing in R&D to stay ahead in the competitive landscape, fostering an environment where research-driven professionals are in high demand. This trend underscores the pivotal role that ongoing technological advancements play in shaping the future of diverse sectors, from pharmaceuticals to technology and beyond.

1. Skill Shortages in Emerging Technologies

The rapid evolution of Industry 4.0 technologies, such as artificial intelligence (AI), machine learning (ML), and automation, has created a significant skill gap in the manufacturing industry. According to a survey, 74% of manufacturing executives express difficulty in finding qualified candidates for roles requiring expertise in these emerging technologies. 

The digital transformation of manufacturing processes necessitates a workforce proficient in digital literacy and Industry 4.0 skills. To address this challenge, educational institutions and industry players are collaborating to develop specialized training programs and certifications, aiming to bridge the gap between the demand for skilled professionals and the available talent pool.

2. Diversity and Inclusion

The manufacturing industry faces challenges related to diversity and inclusion, with the workforce remaining predominantly male-dominated and certain ethnic groups underrepresented. 

Recognizing the need for a more inclusive workplace, organizations are implementing targeted recruitment strategies, mentorship programs, and unconscious bias training. These initiatives aim to create a more diverse talent pipeline and foster an environment where individuals from various backgrounds feel valued and supported. 

3. Talent Retention

Retaining skilled employees poses a significant challenge for the manufacturing and heavy engineering sector, with an attrition rate of 8.27%. High turnover rates indicate that top talent is often lured away by competitors offering better compensation packages and more enticing growth opportunities. 

To combat this, organizations are shifting from a reactive stance to a proactive one in talent retention. They are adopting holistic approaches that encompass competitive remuneration, professional development opportunities, and a positive work culture. 

1. Pioneering Partnerships with Educational Institutions

To address skill shortages, the manufacturing sector must strategically partner with educational institutions. 

These collaborations extend beyond traditional recruitment methods, involving active involvement in curriculum development, offering hands-on experiences through internships, and sponsoring research projects. 

By influencing the education system, companies ensure that graduates entering the workforce possess the skills required to excel in a rapidly evolving sector. 

2. Mastery through Upskilling & Reskilling Initiatives

Companies must invest in continuous learning programs to keep their workforce abreast of the latest advancements. 

Upskilling involves enhancing existing skills, while reskilling focuses on acquiring entirely new skill sets. 

By providing employees with opportunities for professional development, manufacturers not only ensure a skilled and adaptable workforce but also foster a culture of innovation and continuous improvement. 

3. Crafting an Irresistible Employer Brand

A positive employer brand attracts top talent and retains skilled employees. Manufacturers are increasingly focusing on creating a workplace culture that emphasizes innovation, collaboration, and employee well-being. 

Communicating these values through various channels, such as social media, company websites, and industry awards, helps establish a positive image in the eyes of potential candidates. 

A robust employer brand not only aids in attracting skilled professionals but also contributes to employee satisfaction and loyalty.

Despite the formidable challenges faced by the manufacturing industry, a beacon of growth emerges. A comparative analysis of the data spanning fiscal years 2022-23 and 2023-24 reveals a noteworthy surge, with hiring intent escalating from 25% to an impressive 35%. 

This substantial increase not only reflects the resilience of the sector but also signifies a mounting confidence in its potential for expansive growth. 

In addition to the insights highlighted earlier, the India Decoding Jobs 2024 report furnishes data-backed actionable inputs and trends for the manufacturing sector in 2024. This information aids recruiters in making swift and informed decisions to shape a workforce and organizational culture prepared for the future. 

Drawing from well-structured surveys and in-depth discussions with esteemed talent acquisition professionals across diverse sectors in India, this comprehensive report has become a preferred resource for data-driven insights, guiding recruitment decisions effectively.

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