Automotive manufacturers are amid one of the biggest industry shifts in decades. As EVs enter the market, they bring a new set of manufacturing and assembly practices and supply chain requirements—which is exacerbating the growing skills gap in the automotive manufacturing sector. Here, Andrea Masterton, VP Marketing, at Poka, explains how a connected worker approach to learning and development can help quickly and successfully onboard new employees, and reskill existing workers, while building a culture of continuous improvement that puts the frontline worker at the center of automotive manufacturing operations.
The new vehicle market in North America is projected to grow by 5% to 2 million units in 2024, and a ripple effect is being felt by automotive manufacturers nationwide. As vehicle supply demand grows, manufacturers must look to increase production.
However, there is one major roadblock holding manufacturers back from fulfilling these demands—a lack of manufacturing skill on the shop floor. Since 1990, the manufacturing share of total employment in the United States has dropped by 9% and is only expected to continue on the downward trajectory unless major steps are taken.
We’re in the New Auto-Era
Rapid tech advancements such as the rise of electric vehicles (EVs), the need to meet personal consumer preferences, plus new regulatory requirements, are presenting a need to reskill and upskill the sector’s workforce.
Electric vehicles (EVs) and the digitalization of cars in the journey towards carbon-neutrality is set to have a massive impact across the entire automotive value chain—from manufacturers to independent repair shops.
But the digital transformation process is more than the electrification of cars, it is also digital developments such as complex vehicle software and infotainment systems that are now becoming standard in all new models.
Aside from the well-publicized supply issues associated with these new developments, there is another significant gap looming—a growing skills gap. Closing this gap will require a radically new approach to training and education.
The Three Steps to Increase Your Skills Pool
Manufacturers struggling to increase their skills pool must make sure they have the three essentials of workforce management on their radar.
- Take advantage of digital tools: By using digital and analytical tools, organizations can understand the skills that new employees need, assess learning retention, and evaluate the return on investment of their training efforts.
- Keep an eye on future developments: A deep understanding of the future of your industry is crucial to ensure you are building the workforce of the future. By proactively addressing future skills needs, organizations can ensure they have the right skills in place to navigate disruptions and drive innovation.
- Invest in upskilling initiatives: Upskilling investments are showing real ROI in the automotive industry. Upskill your new workforce to close the skills gap and drive new efficiencies and productivity.
Reskilling Holds the Key to Close the Skills Gap
Closing the skills gap is not all about new employees! Employers are now realizing that they need to invest in reskilling existing workers and focus on in-house training initiatives, with 8/10 American manufacturers investing in workforce training.
But traditional training and reskilling regularly involves shadowing a senior operator, and formal classroom-based learning. The problems posed by each of these methods is that shadowing will take a senior operator away from their existing daily roles, and formal training through PowerPoint, for example, doesn’t promote a strong caliber of information retention on the shop floor.
Re-Thinking Learning and Development
Training must unlock new employee competencies and skills in a more organic, efficient, and effective way, rather than a traditional ‘training events’ approach to workforce development. Yes, shadowing is hands-on, but it is inconsistent between each senior operator carrying out the training. Using a connected worker app to facilitate training means that each new hire can be consistently trained in role-specific skills when and where necessary at the time of need.
Training in this way will empower workers and team leads to progress on a learning path as the need and opportunity arises, rather than waiting for the next training events.
On the Job and ‘Always On’
The adoption of the 70:20:10 model for learning and development is a key, progressive move for manufacturers worldwide. It shows that:
- 70% of learning happens through on-the-job experience.
- 20% of learning happens socially through colleagues and friends.
- 10% of learning happens via formal training experiences.
That’s a massive 90% that comes from experiential and social learning! So, if experiential and social learning aren’t a part of your training mix, you’re missing an opportunity to reduce the time and costs of training in your factory, and to build skills versatility and coverage.
When using a connected worker app, automotive manufacturers can adopt an “always on” approach to learning so frontline worker trainees or existing skilled workers can self-serve with plenty of training content on their own, as and when they need it.
For example, at a time of need, workers can scan a QR code for a refresher on how to perform a task, or during a pause in production they can access the training curriculum and get ahead on any further training.
This approach can transform learning from being thrust upon workers, to a new generation of workers self-managing and taking initiative with their own training—while ensuring consistency across the organization.
Remember, Only 10% of Learning Happens Formally — so Don’t Waste Too Much Time and Resources on It!
Integrating complementary apps on tablets, or even VR headsets into frontline worker training and reskilling is already seeing success in continual improvement use cases. Connected Worker apps such as Poka offer a comprehensive solution to overcome labor challenges and empower employees to thrive in a changing industry landscape by fostering connectivity between the top floor and shop floor, personalizing learning and enabling continuous reskilling—for them job satisfaction, for the company enhanced resilience and long-term growth.
Ditch the Paper and go Digital
Adopting a connected worker approach will help automotive manufacturers retain skills, diminish attrition rates, ensure regulatory compliance, and boost productivity. Giving workers on the shop floor access to a tablet or an Apple Vision Pro Headset, complete with the connected worker software app, will support them and enable each and every one of them to work effectively and safely, while training them on the job in new skills.
This new system makes delivering training easier and less reliant on formal training events. Instead of waiting for scheduled sessions, employees have on-demand access to training content. Real-time notifications keep employees informed of updates to training materials and work instructions, ensuring that everyone’s skills remain up-to-date and aligned with evolving requirements.
Easing the Training Audit Burden
Going digital for training records can also help when it comes to audits and compliance requirements. Regulatory audits, such as IATF 16949 and Federal Motor Vehicle Safety Standards (FMVSS) vehicle regulations require manufacturers to demonstrate how they are training workers on quality standards and practices.
Tracking and overseeing skills is time consuming and in many factories is still being done today in spreadsheets or, even worse, with paperwork locked in filing cabinets! This manual process is bound to result in outdated records and the risk of auditors finding gaps in training completion.
With an automated digital skills matrix, team leads and workers have visibility into and accountability for staying current on training curriculum. Management has reliable real-time data to identify training gaps and take corrective action where needed.
Regulatory standards require automotive manufacturers to establish, maintain and demonstrate a culture of continual improvement, which is precisely what tools, such as Poka, with its real-time data collection and analysis, problem solving workflows, and performance dashboards, are designed to do.
The New Digital Solution to Automotive Manufacturing Workforce Woes
The reliance on traditional training and onboarding methods won’t make the cut anymore in this new generation of automotive manufacturing, especially with frontline workers now learning experientially and socially for 90% of their time.
Manufacturers that invest in a connected worker approach will see improvements in productivity, higher employee retention and improved regulatory compliance. These manufacturers will navigate the shift to EVs and new digital technologies in vehicles, while narrowing the skills gap.
The connected worker approach isn’t just a response to these hurdles—it’s a new lifeline.
