Technology Tackles Labor Shortages in Manufacturing

With unemployment rates low and the connector industry continuing to expand, attracting and retaining qualified workers has become difficult. How can new technologies help manufacturers solve this challenge?

Unemployment rates remain steady and low in many regions. Meanwhile, the connector industry continues to expand, making it difficult for companies to attract and retain qualified workers. This situation has the potential to interrupt the ability of connector and cable assembly manufacturers to reach their required production capacity levels and, in turn, aspects like company profitability and delivery become key issues.

Unemployment Rates vs Connector Sales Growth

Manufacturers are doing several things to address this labor shortage. They are offering flexible schedules and improving benefit packages to better meet employee needs. They have worked to improve company work culture by encouraging open communications, formal development plans, and clear career paths. Manufacturers have also addressed wages, offering more competitive salaries or performance-based pay structures.

However, even using these tools to attract talent, according to a third quarter 2024 survey conducted by the National Association of Manufacturers (NAM), nearly 60% of manufacturers cited the inability to attract and retain employees as one of their top challenges. So, what other ways are there for manufacturers to ensure future profitability and the ability to satisfy customers’ delivery and price requirements?

AI and Labor

In today’s work environment, focusing just on the employee is not the only route manufacturers are taking. Today more and more companies are turning towards technology to solve their employee shortage needs. This includes incorporating artificial intelligence (AI) and machine learning driven automation, collaborative robots (cobots), service robots, autonomous mobile robots (AMRs) and soft robots, and the use of digital twins and 3D printing.

Samtec offers a variety of high-speed cable systems, high-density arrays and mezzanine systems designed to support the demand of AI applications.

AI has probably had the greatest impact of all technologies on the labor shortage. AI has allowed manufacturers to automate mundane tasks, leaving employees to focus on the more challenging tasks. It has proven to improve turnover by monitoring patterns in work habits and suggesting adjustments before stress levels hit the roof. AI has even been used to sort through resumes and applications and search specifically for applicants who possess required or sought after traits, essentially streamlining resume analysis.

According to talent agency Hamlyn Williams, “projections indicate that 600,000 units (robots) will be installed around the world in 2024 alone.” In fact, estimates show that over the next 10 years, the global advanced robotics market will grow at a compounded average growth rate (CAGR) of over 19%. In some areas, like India, installed units of robots have grown over 50% in the last few years. According to Robotics Tomorrow, “robotics solutions enhance operational efficiency, accuracy, and effectiveness by automating both routine and complex tasks. As businesses seek to reduce costs, streamline production processes, and maintain better control over operations, robotics is becoming an essential tool for improving productivity.”

TE Connectivity’s Over-the-board (OTB) products are designed with optimal data transmission in mind, reducing latency and boosting data transfer speeds to enable high-performance computing.

Another way that manufacturers have worked around labor shortages is to incorporate the use of digital twins. As explained by The Manufacturer, “A digital twin in the context of manufacturing is a virtual model of a physical system that reflects its real-world counterpart, enabling manufacturers to monitor, test, and optimize operations in real time. While simulations and digital twins are related, their functions in manufacturing complement each other.”  Integrating the use of digital twins allows problems to be identified early on, facilitates the ability to simulate and test in a virtual environment, and offers flexibility and quick modification, particularly important in low volume, high mix applications. It also allows the manufacturer to incorporate predictive maintenance.

Just gaining wide acceptance, primarily due to increased competition, advancements in technology, and a wider range of affordable materials, the use of 3D printing is another avenue that manufacturers are using to alleviate the problems incurred because of labor shortages. 3D printing allows businesses to modify products to a customer’s specific requirements without the need for custom tooling that normally would take weeks to manufacture. It makes altering production locations easier, letting manufacturing occur closer to home, often reducing the need to rely on imports. According to SGS Maine Pointe, “3D printing technology consolidates the number of components and processes required for manufacturing. This will have a significant impact on global supply chains, decreasing complexities, saving on production costs, enhancing lead times, and improving time-to-market.”

Although each of these approaches is unique in the way it is implemented, they all have one thing in common: the need for high-speed, reliable interconnect and cable assemblies capable of handling high-data rates, while conserving power and space.

Lynda Nolen is executive vice president at Bishop & Associates, Inc. a market research firm specializing in the connector and cable assembly industry. The firm publishes the monthly Bishop Report, a newsletter focusing on the connector industry, Industry News Briefs and Updates, The Connector Yearbook, as well as a variety of research reports covering the connector and cable assembly market, its products and its manufacturers. Learn more or subscribe to the Bishop Report.

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