Closing the Skills Gap: Why Workforce Development is the Key to Smart Manufacturing
- Peak Performance
- Jul 8
- 4 min read
By: Gavin Turner 7/8/2026
Manufacturers are investing millions in automation, artificial intelligence, robotics, industrial networking, and connected technologies to remain competitive and productive. However, one critical factor often determines whether those investments deliver a measurable return: the workforce.
Technology is not the only thing transforming manufacturing, people are too. In the Smart Factory era, continuous learning is no longer optional; it is essential for operational success.
Even the most advanced technology still depends on operators, engineers, and supervisors who understand how to use, maintain, and troubleshoot it effectively.
Ben Absher, Business Development Representative for Peak Performance, asked CEO Denise Hall why developing the workforce has become just as important as investing in new technology.
Hall: "It's important to realize that equipment and technology are commodities—they depreciate over time. Every day, new technology loses value. But people can become your competitive advantage, and investing in your people is what really matters."
Hall shared an example of a local manufacturer that invested millions of dollars to modernize its production process.
Hall: "They installed a new automated production line, but they weren't seeing the return on that investment. The problem wasn't the technology itself, it was the downtime and operational issues they experienced because employees weren't fully prepared to run the new system."
The manufacturing skills gap continues to grow as today's jobs demand far more than traditional mechanical skills. Many experienced workers retire before passing along their knowledge, while modern manufacturing environments look dramatically different from those of just a decade ago. Today's manufacturing professionals are expected to work with technologies that were once limited to IT departments or engineering teams. Putting pressure on the already installed workforce to become more knowledgeable in areas they thought they would not normally need to.
The impact of this skills gap extends well beyond hiring challenges. When employees lack the training needed to operate advanced technologies, companies experience slower technology adoption, increased downtime, and missed opportunities for productivity and workforce development. A manufacturer may invest heavily in automation, but if operators are unfamiliar with a system's capabilities or cannot effectively diagnose problems, productivity suffers. In these situations, the limiting factor is not the technology itself, it is the organization's ability to develop the workforce needed to operate it successfully.
Hall explained how workforce development helped address this challenge.
Hall: "Peak Performance provided training for the operators, not just the maintenance team, so they could strengthen their mechanical, electrical, and troubleshooting skills. As a result, the company achieved a 96% overall equipment effectiveness."
Training programs help manufacturers address labor shortages, unfilled skilled positions, and the growing number of experienced workers reaching retirement. By investing in employees as intentionally as they invest in technology, manufacturers can build a workforce that is adaptable, dependable, and prepared for the demands of modern production.
Absher then asked Denise how the role of the incumbent worker has changed over the past five years.
Hall: "It's important to recognize that, historically, manufacturing has relied heavily on physical labor. Those physical skills are still important, but today's frontline workers also need technical skills, methodological skills, and strong social skills. Even as technology becomes more common on the factory floor, interpersonal skills remain essential for continuous workforce development."
The workforce has changed dramatically over the past five years. As factories continue adopting automation, AI, industrial networking, and other smart technologies, the role of the incumbent worker must continue to evolve alongside them.
For manufacturers, workforce development is no longer optional. Investing in incumbent worker training ensures employees can adopt new technologies, maximize equipment performance, and help their organizations succeed in the Smart Factory era. This evolution demonstrates that workers are valued for far more than routine tasks. Ongoing workforce development empowers employees to focus on problem-solving, critical thinking, innovation, and continuous improvement.
As the industry continues to transform, long-term success will be measured by more than the latest equipment or automated systems. Companies that prioritize education, skill development, and continuous learning will be better prepared to adapt to changing production demands and emerging innovations. While advanced machinery may drive efficiency, it is a knowledgeable and adaptable workforce that will ultimately shape the future of modern manufacturing. To learn more about how Peak Performance is helping manufacturers build that future, tune in to the next episode of Inside the Smart Factory and follow the mission as it continues.
As for next episode’s content, Ben Absher will be joined by Deutsche Messe.
Deutsche Messe is one of the world's leading trade fair organizers, headquartered in Hanover. The company hosts and manages major international exhibitions and events across industries such as industrial technology, digitalization, energy, logistics, and manufacturing, connecting businesses, innovators, and decision-makers from around the world.
Join us for an exclusive insight into our conversation with our partner, Deutsche Messe, as we run down strategies for exploring technologies, strategies, and innovations shaping manufacturing around the world.
Comments