The ill-effects of a lack of available labour are being felt across job shops, translating to decreased production efficiency, quality control challenges and higher operational costs. For example, a shortage of skilled machinists may result in longer setup times for machines, more frequent errors and increased downtime. This delays the completion of jobs, causing missed deadlines and unhappy clients.

Alternatively, a lack of certified welders could lead to improper welds that fail quality inspections. This not only increases the cost of materials due to rework but also delays shipments. Perhaps the absence of experienced fabricators requires a shop to hire temporary workers who lack the same level of skill, resulting in more defective products. This increases the cost of production and reduces profit margins.

As manufacturers seek both short- and long-term help in managing the labour shortage and mitigating its consequences, technology emerges as a critical tool. By leveraging cloud software, such as enterprise resource planning (ERP), manufacturers can help with job scheduling and maximising resources. For example, machine-monitoring systems integrate and analyse shop floor and ERP data in real time, enhancing the productivity of existing labour. Instead of manually calculating factors like machine availability, skill requirements and delivery deadlines for scheduling, cloud-based ERP automates this process.

Cloud-based ERP’s can streamline production planning and automate routine tasks, reducing the reliance on time-intensive manual intervention and minimising bottlenecks. In a machine shop, jobs are scheduled by machine availability and skill requirements, leading to efficient utilisation even with limited skilled machinists.

ERP’s offer integrated tools that standardise processes and provide real-time tracking of production quality. Those checks and balances mean less errors, more automated alerts for deviations and consistent outputs. At the core of job shops’ needs is reducing operational costs, and by providing accurate data on resource utilisation and labour costs, cloud-based ERP’s help reduce unnecessary expenses. Leveraging the right technology can help analyse labour costs in real time, identifying cost-saving opportunities such as better shift management or reallocation of tasks to reduce reliance on expensive temporary workers.

As manufacturers seek immediate relief, leveraging an ERP can be a core way to help lessen the pain points driven by the ongoing labour and skills shortages.

Beyond short-term benefit, leveraging cloud ERP solutions can help towards long-term, sustainable growth practices as well. Employing cloud solutions can significantly enhance a job shop’s appeal to younger generations by aligning with their preference for digital, efficient, and tech-driven work environments. Additionally, cloud ERP’s can offer remote accessibility, which is increasingly attractive to younger workers who value flexibility. This not only improves job satisfaction and retention but also positions the company as a forward-thinking employer, making it more attractive to tech-savvy talent.

At their core, ERP’s work to streamline operations, making employees’ roles less tedious and more engaging. According to McKinsey data, Gen Z wants to make a difference; they’re the only generational cohort that considers “meaning” as a top two reason to take, keep or quit a job. Automating mundane tasks and enabling employees to focus on higher-value activities drives that meaning.

Education is the second critical pillar influencing long-term talent attraction. Manufacturers must work to demonstrate clear career advancement opportunities within the industry. By actively promoting stories of employees who have progressed from entry-level roles to higher-paying, specialised positions, job shops can show that true potential.

In leveraging cloud-ERP solutions, job shops can receive immediate reprieve from ongoing challenges, while setting themselves up with the infrastructure required for long-term solutions. Investing in back-end technology prepares job shops to scale with security, and weather the storm of inevitable market disruption.

This is the viewpoint of Darren Toy, Product Director, ECI Software Solutions and it first appeared in Manufacturing Engineering