Skills over degrees: 94% of manufacturers shift hiring priorities

Global manufacturing could face a $1 trillion setback by 2030 if the looming talent shortage is not addressed, warns a new report from KNOLSKAPE.

The study shows that 94% of manufacturing firms now prioritize skills over academic qualifications, emphasizing problem-solving and hands-on expertise in recruitment.

The report, titled "The Next-Gen Workforce: Manufacturing Insights 2025," draws on feedback from 26 manufacturing leaders representing 47,000 employees across Asia-Pacific, the Americas, Europe, and the Middle East.

It projects that 2.4 million jobs could remain vacant by 2028, despite heavy investments in automation and smart technologies.

Technical skills such as CNC operations, automation, and data analytics are cited as top priorities by 64.3% of respondents, while 71.4% stress the growing importance of AI ethics, bias mitigation, and human-centered design.

With 85% of employees expecting AI to reshape their roles within the next three years, companies are being urged to rethink how they prepare their workforce.

“The future of manufacturing isn’t just about machines,” said Rajiv Jayaraman, founder & CEO of KNOLSKAPE.

“It’s about people who can learn, adapt, and work together faster than change itself. Companies must move beyond one-off training and invest in building an AI-ready, ethical workforce,” Jayaraman added.

The study identifies middle managers as a key link between strategy and execution, with many organizations prioritizing them for early upskilling.

However, challenges persist: 71.4% of companies cite limited budgets, 64.3% struggle with measuring returns on training, and 57.1% report difficulties integrating learning into daily operations.

The findings underline that skills-first transformation is becoming essential, not optional.

According to the report, only organizations that embed continuous learning into everyday workflows and strengthen leadership at every level will thrive in the coming decade.

The question now is whether corporate leaders act swiftly or allow the talent gap to grow into a trillion-dollar burden on global manufacturing.