Outdated Manufacturing Workforce Management Is Costing You — Embrace the Tech Revolution

The manufacturing industry faces a workforce crisis, with 2M jobs expected to be at risk by 2033.

The industry is undergoing a major shift; production lines are evolving and demands are increasing. Many manufacturing jobs are returning to the US, particularly in fields like aerospace, automotive, and high-tech manufacturing. The industry is expected to need millions of new workers, with some of the most in-demand positions being maintenance technicians, machine operators, and material handlers.

However, these returning jobs will likely be different from those of the past. This is no longer a story of the tedious labor of blue-collar workers. Today, manufacturing relies heavily on automation and skilled trades.

In this guide, we take a closer look at workforce management in manufacturing. We discuss key challenges (the main one is the lack of qualified workers) and how major players like BMW handle them. Besides, we’ll highlight how Juggl can help in managing the workforce as part of an integrated manufacturing tech stack. Keep reading to find out more!

Understanding the challenges of workforce management in manufacturing

For many manufacturers, workforce management (WFM for short) has become a growing concern. Persistent labor shortages, high turnover rates, and low employee engagement are among the top issues. These problems disrupt operations and drive up costs, reducing competitiveness in a challenging market.

Attracting and retaining top talent in manufacturing remains a challenge for around 60% of manufacturers, according to the Manufacturers’ Outlook Survey Q3 2024. And the trend is likely to grow gross by 2030.

Beyond recruitment and retention, keeping workers satisfied and engaged is equally vital. Low engagement leads to absenteeism, lower productivity, and an increased risk of burnout.

In such conditions, manufacturers realize that traditional WFM strategies are no longer enough.

A closer look at the workforce crisis

The manufacturing sector faces a significant talent gap, especially in engineering roles. As of March 2025, there were over half a million open vacancies in the manufacturing sector in the US. In the meantime, per 100 manufacturing job openings, there were 98 unemployed people, which was slightly better than a year before (100 vacancies per 80 candidates) but still indicated a rather tight labor market.

According to recent studies, 18% of companies in the industrial sector in Germany reported difficulties in finding enough skilled workers, especially in mechanical engineering (23%) and furniture manufacturers (23%).

In Britain, a survey by the British Chambers of Commerce revealed that 85% of manufacturing businesses had reported persistent challenges when recruiting, with 73% facing difficulties finding skilled manual or technical workers.

Technology as a game changer

The biggest challenge in manufacturing is the workforce shortage. And how to handle this in the era of AI and automation? The answer seems close at hand: do repetitive and dull tasks with robotics. At least, this is what 99% of manufacturers are doing these days.

According to the International Federation of Robotics, China installed more than 270,000 AI-powered industrial robots last year, making up more than half of the world's total.

Tesla is exploring the use of Optimus – general-purpose intelligent humanoid robots – to address labor shortages and skill gaps in manufacturing.

Major manufacturers, like BMW, Mercedes-Benz, and General Motors, have been testing humanoid robots to deploy them on assembly lines for material handling and machine tending.

These robots are designed to work alongside human employees, performing repetitive or dangerous tasks. It makes manufacturing jobs safer, more enticing for the younger generation, and, probably, more efficient. Yet, a question remains whether automation solves the labor shortage.

Fewer young people want to work in the manufacturing industry

According to the American Welding Society, in the US, the average age of welders is 55. As this generation approaches retirement, and fewer young people are training to become welders, the industry is likely to need 330,000 welders by 2028. 

A collaborative robot looks like a potential solution here. A pre-built robotic welding cell starts at $80,000 compared to the $75,000 annual welder’s salary.

But if robots are so good, why do manufacturers still need people?

Here is one way of answering this question.

Technology needs more trained specialists

This story about a BMW factory having robots in action highlights the limitations of robotics – imperfect vision and movement. Robotics does not solve the labor shortage entirely, as factories still need someone to operate robots and ensure quality.

New jobs appear due to increasing automation and digital technologies – and the need for specialized skills. For example, factories need digital twin engineers, robot teaming coordinators, and drone data coordinators who are in charge of integrating technology in manufacturing.

So far, even if automation makes manufacturing more efficient, the issue of hiring and retaining high-skilled labor remains acute.

Strategies to address labor shortages

The challenges push companies towards smarter workforce strategies allowing them to find and engage skilled workers. Below are a few popular ones:

1. Digital transformation and automation.

Manufacturers are investing in automation, AI, and machine learning to streamline operations and enhance productivity. Companies like Amazon and Schneider Electric are already incorporating advanced robotics and AI to reduce reliance on manual labor. This closes workforce gaps for tasks that people don’t want to do. And creates 30% more skilled jobs for humans.

2. Upskilling and reskilling.

Companies are offering tailored upskilling programs, often using AI-driven tools to match training with emerging production needs. For example, Siemens has implemented the digital twin technology in its Fort Worth, Texas facility, to simulate production lines and products before physical deployment. This approach allows for efficient training of new employees, especially those coming from unrelated fields, such as retail and food service.

Another strategy is to introduce apprenticeships and partnerships with educational institutions. It helps develop a pipeline of skilled workers and draws the best talent just entering the labor market.

3. Connected worker platforms.

Modern work environments appeal to tech-savvy professionals. Connected platforms provide real-time data access, improve collaboration, and enhance safety monitoring.

For example, Boeing implemented digital dashboards to provide real-time data to assembly teams. Model-based engineering and 3D part modeling helped the company achieve an 80% reduction in assembly hours.

Likewise, at BMW's Munich Plant, the transformation relies on data, digital twins, artificial intelligence, and the integration of production with product development. The main concept of BMW’s transition is the company’s iFactory, which uses complete virtual planning to optimize production lines before any physical changes occur.

4. Competitive compensation.

The best way to compete with other industries is to offer attractive salaries and benefits. Manufacturers must ensure additional perks, like health benefits, injury insurance, paid time off (which is required by laws), and performance-based bonuses – all these to retain workers by paying them a deserved reward.

As for finance operations, integrated solutions for the manufacturing workforce help track productivity and compensation. Such solutions increase transparency and worker satisfaction, helping maintain a positive work culture.

5. Improved working conditions.

Safe working conditions in manufacturing are a crucial indicator that companies strive for. For example, the factory in Arkansas manufacturing HVAC equipment celebrated 12 years without a day off due to work-related illness or injury. The factory is on track to reach 6 million hours without lost-time safety injury by October 2025.

Flexible work arrangements can also be a good bonus. Implementing flexible schedules and remote work options, where feasible, attracts a broader talent pool.

These strategies reshape the image of manufacturing as a dynamic and rewarding career choice for workers.

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How Juggl makes a difference

Juggl is emerging as a powerful solution in this space. It focuses on finance and workforce management operations, automating tasks for accounting departments, HR specialists, and worker teams.

The platform includes several core functions:

• It centralizes documentation, giving managers, recruiters, and payroll specialists easy access to compliance materials and contract records. 
• It tracks time and productivity, offering clear, real-time insights into performance.
• It automates the calculation of wages, perks, time off, vacations, etc. based on automated time tracking and timesheets.
• It stores reports and the history of all payments and invoices in clear and digestible charts, ready for internal and external audit trails.

The platform can help manufacturers manage payouts efficiently, ensuring that workers are compensated accurately and on time.

According to the feedback from existing clients, Juggl saves 20 hours of work per week for HR and accounting departments. It drastically cuts down on the time and effort spent on processing worker data. Moreover, it prevents errors that otherwise occur when teams pass on worker information from one department to another in Excel sheets.

Most importantly, Juggl is designed to work alongside other technologies in a manufacturer’s toolkit. It allows setting up unique workflows for logging overtime, managing shifts, tracking productivity, handling rented equipment, and many more use cases. You can integrate it with time-tracking tools, payment systems, QuickBooks, or any other accounting software of your choice.

Integration means less time toggling between platforms and more time focusing on strategic goals. A unified WFM ecosystem enables better data sharing, smarter automation, and enhanced team coordination.

Imagine a plant struggling with frequent shift changes and late payroll. With Juggl, managers can schedule workers, monitor attendance, and process payouts — all from one place. Over time, this kind of system can lead to a more engaged workforce and significant cost savings.

Key benefits of workforce management software

HR managers in manufacturing often grapple with complex challenges. These include managing diverse workforces, handling shift patterns, and ensuring compliance with labor laws.

Workforce management software can be a game-changer. It automates routine tasks and provides valuable insights into workforce trends for team leads and managers. This can help in planning, budgeting, and decision-making.

Key benefits of workforce management software for manufacturers are:

• Streamlined HR processes
• Reduced errors in payroll and management tasks
• Time savings for HR staff, accountants, payroll specialists, and CFOs
• Improved compliance with labor laws
• Enhanced employee satisfaction through accurate and timely pay.

In essence, workforce management software is a powerful tool for overcoming HR challenges in manufacturing.

Crushing down on costs in manufacturing

According to a NAM survey of 294 manufacturers in September 2024, respondents expected an increase in expenses for almost all categories involved in production. The highest growth rate was indicated for wages and raw material prices (by 2.7% over the next 12 months).

Besides the direct costs, the final price of a product also includes indirect costs, or manufacturing overhead costs (MOH).

Direct costs include the expenses connected directly to the production, such as the price of raw materials and worker wages. Whereas MOH is the sum of all costs related to the manufacturing of a product indirectly: salary and wages paid to factory personnel, depreciation of equipment, electricity used to operate the equipment, and more.

Indirect labor costs cover payments to employees who don't directly work on the production line, but whose work supports the manufacturing process.

Examples of indirect labor costs include salaries of factory supervisors, quality control inspectors, janitors and facility managers, security guards, and research and development personnel.

The structure of manufacturing costs: Image source

All these costs, scattered across departments, comprise a complex system of accounting. Before making any payments – covering supply materials, wages, inventory, etc. – accountants need to recalculate and verify a lot of items, types of spend, and variables.

One of the ways to cut down on operational costs is to automate the flow: consolidate the data and create a single source of truth that will always be up-to-date, double-checked, and quickly accessible to all stakeholders. This is one of the many tasks that Juggl does: it speeds up the process, makes it error-proof, and, thus, saves time and effort for accountants and managers.

Juggl: the ultimate solution for your manufacturing payroll and WFM needs

Manufacturing companies have unique payroll needs. They often deal with multiple pay rates, complex shift patterns, and overtime calculations.

WFM & payroll processing software like Juggl can handle these complexities. It ensures accurate and timely payments, reducing the risk of errors and non-compliance penalties.

Juggl addresses the unique challenges and regulations of the manufacturing sector, helping streamline relations between workers, managers, and key deciders. 

The main features of the manufacturing payroll & WFM solution include: 

• Support for multiple pay rates and schedules
• Automated time-tracking and timesheet calculations
• Complex shift pattern management
• Overtime calculations
• Self-service portal for employees to log work hours, track pay stubs, request bonuses, and more
• Request-and-approve flows for requesting benefits
• Invoicing automation for global contractors
• Reports with a detailed breakdown of total spend per entity, project, team, department, and individual.

These features not only streamline HR and payroll processes but also ensure compliance with industry regulations. They help companies reduce operational and overhead costs. By adopting a solution with these features, manufacturing companies can significantly improve their HR and payroll management.

Looking ahead with a unified WFM ecosystem

The future of workforce management in manufacturing is rooted in technology. Alongside digital tools, there is a growing emphasis on upskilling and reskilling workers to meet new job demands. Forward-thinking manufacturers are investing not just in RPA and AI solutions, but also integrated tools like Juggl.

1. Juggl makes communication with workers tons easier, by automating financial operations and eliminating 90% of salary-related issues. 
2. The platform connects HR and finance departments, keeping all documentation and financial records up-to-date and consolidated. 
3. The unified platform allows easy handling of worker data and serves as a centralized storage of contracts and payroll-related worker information. 
4. The self-service portal increases transparency, giving workers access to their paystubs, benefits information, opportunities for upskilling, etc.

It’s time for manufacturers to rethink how they manage their workforce. Tools like Juggl are more than just software — they’re a pathway to a more resilient and responsive manufacturing operation. If you have any questions or want to see the platform in action, Book a demo to schedule a 30-minute meeting.