How Australian manufacturers can combat staffing challenges in FY2026 and beyond

Next-generation ERP software may help local businesses alleviate skills shortages and build the workforces they need to prosper and grow.

Ramping up activity in the Australian manufacturing sector is a stated priority for the recently elected Labor government, but does the country have the capability necessary to make the products our nation needs? The answer to that question is a hard ‘no’ as far as the Manufacturing Industry Skills Alliance is concerned.

Developed in conjunction with key industry, government and training sector stakeholders, its 2024 Manufacturing Workforce Plan¹ is a roadmap outlining the key skills and emerging workforce needs of the industry. The plan suggests we’ll need an additional 120,000 workers by 2033, to take up vacant roles and enable local businesses to explore emerging opportunities in the defence, clean energy, medical and space sectors.

If it’s to achieve that goal, the manufacturing industry will need to address four key challenges: attracting young workers and growing a pipeline of apprentices; creating opportunities for more diverse candidates; combating the loss of a sizeable cohort of skilled workers who are nearing retirement age; and equipping workers with the skills they need to work in future-focused manufacturing jobs.

Building a strong workforce for tomorrow

Selling Australia’s current teens and 20-somethings on the idea of working in manufacturing isn’t something that can be left to chance. Rather, it will require dedicated campaigns that include school visits to educate students about career options in the sector, advertising attractive training programs available and highlighting the benefits of pursuing an apprenticeship.

As digital natives, today’s young people are excited by technological innovation. So much so that one international study showed more than 90% of Gen Z workers would choose a role on this basis.

It follows that local students will be more open to opportunities in manufacturing if potential employers can demonstrate that a career in the sector doesn’t mean spending your life performing a limited range of repetitive manual tasks.

Embracing the systems that make manufacturing smarter

For some local manufacturers that have been slow to embrace innovation, that will mean replacing legacy processes and practices with modern, streamlined alternatives, on the factory floor and in the back office.

That’s where specialist ERP manufacturing software has a vital role to play. Once implemented, the right platform can provide full visibility of your production lines and access to a rich pool of real-time data. Sophisticated data analytics tools can make it easy for your leadership team to identify areas where processes can be improved and efficiencies achieved.

If you’re currently operating in manual mode, you’ll be able to automate mundane tasks, right across the enterprise. Doing so can free your team members up to undertake more valuable duties that contribute to job satisfaction and professional fulfilment.

Making factory work flexible

The right ERP solution can also make it possible for manufacturing businesses to offer some skilled employees the opportunity to work remotely, some or all of the time. That can be a drawcard for finance professionals, production managers, general managers and the like who, in the past, may have been reluctant to join manufacturing businesses without hybrid working options available.

Adopting tools and technologies that enable certain roles to dial in from anywhere may mean the difference between securing the talent and struggling to staff your manufacturing business with vital knowledge workers.

Meanwhile, streamlining the employee experience by enabling all of your team members to manage routine admin tasks for themselves — clocking on and off, checking rosters, viewing their earnings, lodging leave requests and the like — will increase satisfaction further, particularly for younger workers who are habituated to using speedy self-service systems.

For today’s manufacturing workers who have experienced technological advancement in their daily work, they state they won’t consider ‘going backwards’ when looking for new roles. This makes the pool of talent increasingly smaller for manual-based manufacturers as more local manufacturers undergo digital transformations.

Skilling up for success in FY2026 and beyond

Australia’s long-term prosperity and security depend on the development of a stronger, more efficient manufacturing sector that can build more of what the country needs, right here at home. Maintaining capable, committed workforces will help local operators keep pace with overseas competitors and set them up for a brighter future.

If you’re serious about being part of that long-term success story, specialised tools and technologies that make it easier to attract and retain top talent should sit at the heart of your ICT stack.

Andrew Mamonitis, Vice President – APAC, Manufacturing Division, ECI Solutions

Top image credit: iStock.com/coffeekai

_{1. https://manufacturingalliance.org.au/2024-manufacturing-workforce-plan-solutions-for-australia-to-maximise-its-124-billion-manufacturing-industry/}