In just 2022, the Bureau of Labor Statistics (BLS) recorded an astounding 367,000 fresh employment opportunities within the resurging manufacturing field, signaling a remarkable recovery from previous years. However, despite this impressive resurgence, caution must be exercised. Job openings notwithstanding, Deloitte cautions that manufacturers face multiple obstacles in 2024.

Amidst an unsteady economic milieu and an enduring dearth of skilled labor, concerns loom over productivity and effectiveness just as the industry gains momentum. Here’s an examination of the 7 foremost hindrances impeding modern manufacturing facilities from attaining optimal efficiency.

The 7 Biggest Barriers to Employee Productivity in Modern Manufacturing Facilities

1. Outdated Technology and Equipment

Outdated equipment is one of the larger challenges to productivity within the manufacturing facility. A survey from Atomik Research on behalf of Shire Leasing reveals that 52% of manufacturing employees reported that antiquated equipment caused them problems at work at least once a week. Outdated equipment not only slows down production but can also increase the likelihood of greater downtime due to breakdowns. It leads to higher maintenance costs and reduced product quality. Also, it can dampen employees’ morale because they feel frustrated by inefficient tools and face difficulty in achieving production targets.

2. Poor Training and Skill Gaps

This is a sector mired in an acute skills crisis. Within the next decade, approximately 3.4 million workers will be needed to fill openings in America’s manufacturing sector. Shockingly, nearly 2 million such jobs at present are likely to remain vacant because of the skills gap. This shortage is driven by several factors:

• The impending retirement of some 2.7 million Baby Boomers in the next decade alone.
• A stagnant talent pipeline.
• Presently employed workers who lack fundamental technical training and have basic deficits in technology, computer, math, and problem-solving skills.
• The new rush of jobs post-recession.
• Need for workers with new specialized skill sets. (Deloitte)

This skills gap influences productivity to a great extent in the form of non-fill of positions, loss of efficiency, and added pressure of work to the existing workers.

3. Inefficient Workflow and Processes

The major productivity killers in a manufacturing facility include inefficient workflows and processes. This includes improperly-designed production lines, too many steps in the process to manufacture, and poor inventory management. Inefficiencies turn into bottlenecks, raise levels of waste, extend production time, and increase costs.

These inefficiencies can be detected and removed by the implementation of lean manufacturing and continuous improvement methodologies, such as value stream mapping, process organization through 5S, and Kaizen events. This can greatly streamline the processes, reduce waste, and maximize workflow. Such efficiency and productivity could be further raised if the process management and automation are equipped with proper digital tools.

4. Lack of Communication and Collaboration

Clearly, effective communication is important in any workspace for productivity, and this is particularly true for manufacturing. General statistics about workplace communication reveal that 86% of employees and executives state insufficient collaboration and inefficient communication as the cause for the failures occurring in the workplace. This is more specific to the manufacturing context, where integrations may involve different departments or even shifts within a department. On the other hand, when teams do communicate well, productivity can go up by 25%. This thus demands broadly open lines of communication and an atmosphere that evokes the feeling of teamwork at all levels of the organization.

5. High Employee Turnover

The manufacturing industry faces one of the most critical crises involving employee retention. Employees were leaving the companies in droves – especially during the wake of the pandemic – in a movement recently coined “The Great Resignation.” Statistics show a record 4.5 million people quit their jobs across all industries in March of 2022. This trend holds true across industries, though the manufacturing industry has been the most drastically affected, as high as 28.6% within its turnover rates, against an average nationally that rests at 3.6%.

In view of this high turnover rate, the manufacturers should shift their attention to the workers’ engagement, satisfaction, and work atmosphere. This would include competitive remuneration, career growth opportunities, flexible working hours whenever possible, and an organizational culture that promotes staff needs through channels of appreciation and recognition.

6. Workplace Safety Concerns

Manufacturing safety has posed a major challenge within the industry, which has continuously been reported as one of the most hazardous areas in the workplace. According to statistics from International Workplace, there are about 31 fatal injuries a year due to accidents related to the manufacturing workplace, while major injuries stand at more than 4,500 and those leading to working absence for over three days at a total of 19,500. Clearly, the importance of safety at work cannot be overemphasized. Some of the factors concerning safety may impact productivity in the following ways:

• Workdays are lost because of injuries.
• Low morale coupled with increased stress among employees.
• Use of time and resources to investigate accidents or provide safety training.
• Potential slowdowns when employees become more careful at the expense of speed.
• Increased insurance premiums and higher workers’ compensation costs for the company.

Comprehensive safety programs, continuous training, and investment in safety equipment are very much essential for a safe working environment and a high level of production.

7. Inadequate Motivation and Engagement

If employee engagement is high, then they will be able to maintain high levels of productivity. Aside from that, disengaged workers are less likely to give their best efforts, may turn in inferior work, and will often be absent from work. It is because of this lack of motivation in manufacturing – where precision and consistency are everything – that there will be readily observable increased errors, slower production times, and a general lack of quality in the output. Some major proponents of working with low motivation can be no recognition, poor opportunities in terms of career growth, poor work-life balance, and feeling undervalued.

Conclusion

These 7 major barriers to employee productivity create complex challenges for modern manufacturing facilities. From outdated technology and skill gaps to safety concerns and high turnover rates, there are many roadblocks. But addressing them directly, through effective investments, better training, process streamlining, two-way dialogues, and renewed vigor on employee engagement and safety can raise productivity and competitiveness substantially in this continuously changing environment.

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