Navigating 2025: Addressing Skills & Labor Shortages in the Industrial Sector
The industrial and manufacturing sectors are currently facing significant challenges. The imposition of new tariffs, economic uncertainty, and evolving corporate policies necessitate a comprehensive re-evaluation of businesses’ talent strategies. To gain insights into the most pressing issues, SpenglerFox recently conducted a LinkedIn poll, engaging industry leaders across EMEA to explore the factors that will shape their workforce planning for 2025.
The Key Findings:
Our poll results revealed the following breakdown of concerns:
- Skills & Labor Shortages: 56%
- Cost & Productivity Pressures: 39%
- DEI & Workforce Diversity: 2%
- Site Relocation: 3%
A significant majority (56%) of respondents identified skills and labour shortages as the primary driving force behind their talent strategy. Cost and productivity pressures ranked second, with 39% of respondents citing them as significant concerns. Notably, diversity initiatives and site relocations were not ranked among the top concerns, despite their potential impact on talent acquisition and retention.
What This Means for the Industry
- The Talent Gap is the Top Challenge
The industrial sector is experiencing a growing skills gap, driven by demographic shifts, technological advancements, and the increasing need for specialized expertise. The findings of our survey resonate with a recent study conducted by Deloitte and The Manufacturing Institute:, stating that “The study reveals that the skills gap may leave an estimated 2.4 million positions unfilled between 2018 and 2028, with a potential economic impact of 2.5 trillion. Further, the study shows that the positions relating to digital talent, skilled production, and operational managers may be three times as difficult to fill in the next three years.”
Accordingly, companies must prioritize reskilling and upskilling programs to remain competitive in a fast-evolving landscape.
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Efficiency & Cost Management Remain Critical
With 39% of respondents citing cost and productivity pressures as primary concerns, businesses are actively seeking strategies to enhance operational efficiency. While automation, AI-driven workforce solutions, and lean management practices contribute to optimisation, the industrial and manufacturing sectors cannot overlook the enduring value of traditional hard skills. Skilled trades, hands-on expertise, and deep industry knowledge remain indispensable for maintaining quality, safety, and operational resilience—aspects that no technology can fully replicate.
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A Shift in Workforce Priorities
Notably, neither DEI and workforce diversity nor site relocation were identified as key priorities in this poll. Although these factors continue to hold significance, companies appear to be prioritising immediate workforce availability and cost-related challenges in 2025.
What Can Businesses Do?
- Invest in Workforce Development: Companies must adopt a proactive approach by implementing robust training programs, apprenticeships, and partnerships with educational institutions to address the skills gap.
- Leverage Executive Search & Talent Advisory: Strategic hiring remains essential. Partnering with an executive search firm that understands industry-specific challenges can assist organisations in attracting and retaining top-tier talent.
- Adopt Technology for Workforce Optimisation: Embracing technology, such as AI-driven recruitment tools and automation in manufacturing, will play a crucial role in addressing both talent shortages and cost pressures.
How SpenglerFox Can Help
As a global executive search and talent consultancy, SpenglerFox remains, above all, a people business. We understand that talent acquisition is not just about filling roles—it’s about connecting the right people with the right opportunities. Our human-centered approach ensures that businesses not only access specialized leadership talent but also receive tailored guidance on workforce planning and invaluable insights into market trends. In an increasingly complex world, our expertise helps you stay ahead—because success starts with people.
Let’s start the conversation. What’s your biggest talent challenge for 2025? Connect with us to explore solutions tailored to your business needs.
For more information about our Industrial Sector expertise, please visit our website