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Manufacturing and AEC sectors such as architecture, engineering, construction, as well Media and Entertainment are undergoing a profound transformation. As innovation constantly brings new materials and technologies aimed at making our world more sustainable, companies are facing increasing pressure to keep up. And to do this, attracting and retaining skilled talent is key.
However, nearly one-third of the experts1 interviewed by Autodesk for the second edition of its “State of Design & Make” report consider it a top three challenge. Forty-three percent even say that access to skilled talent is a real barrier to their company’s growth. A report from Deloitte and the Manufacturing Institute in April this year claims that manufacturers in the U.S. could need as many as 3.8 million new workers by 2033. The same is true in Europe: “skills shortages among SMEs are very high in the manufacturing sector, where 86% of firms have difficulties finding workers with the right skills; 80% of companies in the retail sector and 79% of companies in the services sector face similar difficulties”, according to a recent study done by Eurofound.
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Addressing talent shortages: The growing need for training in advanced technologies
Across industries, talent shortages are becoming more severe. Nearly two thirds (63%) of small and medium-sized businesses said in a survey from the European Commission that they cannot find the talent they need. “For almost a decade, labour and skills shortages have been increasing in all member states. These shortages are driven by demographic shifts, the demand for new skills linked to technological developments and the twin transitions, the drive to develop further our own industrial sectors, defence and security needs, and challenges related to working conditions in some sectors and locations”, states the Commission, that has identified as many as 42 “shortage” occupations. The gaps are particularly large in the design and manufacturing sectors. These industries increasingly rely on advanced technologies like artificial intelligence, machine learning, and automation, which require specialised skills that many traditional educational pathways have not yet fully integrated. As demand for skilled workers rises, so does competition, and companies find themselves in a battle to attract and retain talent. In this context, training emerges as a critical component—and a necessary investment, even in a difficult economic environment—for ensuring long-term business success.
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Seventy-seven percent of survey respondents agree that training is important. However, only 38% say their organisations have the necessary skills and resources to design internal training programs, making it difficult for companies to effectively train employees on systems and processes specific to their organisation. Even more general training programs are helpful for companies positioning themselves as employers of choice in a competitive talent market.
It has often been said that the manufacturing sector is more advanced than the architecture, engineering, and construction (AEC) sector due to the industry's demands. However, since the pandemic, the AEC sector has been compelled to accelerate its digital transformation, leading to significant technological advancements. This shift has also heightened the need for training in the latest technologies. The opportunity to upskill and reskill is particularly important in industries such as design and manufacturing, where technology evolves rapidly. Autodesk's report shows that the nearly 300 million workers in these industries seek employers who provide continuous learning opportunities. They are keenly aware that their skills may become obsolete if they do not keep pace with changes.
Thus, an employer’s commitment to professional development becomes a major selling point, demonstrating that the company values its employees' long-term career progression. A LinkedIn Workplace Learning Report revealed that 94% of employees would stay at a company longer if it invested in their career development. While this commitment is essential for all employees, it is even more significant for younger generations, particularly Millennials and Gen Zs, who have distinct expectations and values regarding their careers and workplace environments. Deloitte’s Millennial Survey (2022 edition) found that 44% of Millennials and 49% of Gen Zs believe continuous learning is the key to a successful career.
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Investing in training: The key to employee retention, productivity and innovation
Training plays a vital role in attracting talent, but it is equally critical for retaining employees. According to Autodesk’s report, one of the top reasons employees leave their jobs is the lack of opportunities for professional growth. When workers feel stagnated or believe they are not acquiring new skills, they are more likely to seek new opportunities where they can grow. Investing in training programs can significantly reduce turnover rates, as employees are less likely to leave a company that actively contributes to their professional development. The cost of employee turnover can be high, both in terms of recruitment and lost productivity. According to the Society for Human Resource Management (SHRM), it can cost a company six to nine months of an employee’s salary to replace them.
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It is widely proven that training enhances employee skills and productivity. A Gallup study published in 2021 revealed that highly engaged teams show 21% greater profitability. Well-trained employees are better equipped to meet and exceed customer expectations, which increases customer satisfaction and loyalty. This is especially true in service-oriented industries where the customer experience is paramount, but it also applies to B2B interactions. Training sessions provide opportunities for team building and shared learning experiences, reinforcing the company's values and vision.
Finally, training fosters innovation and adaptability. In the 2023 edition of its “The Future of Jobs Report", the World Economic Forum states that “two-thirds of companies2 expect to see a return on investment on skills training within a year of the investment, whether in the form of enhanced cross-role mobility, increased worker satisfaction or enhanced worker productivity”, In a world where change is the only constant, organisations must be agile and innovative to differentiate themselves. Companies that invest in employee development are not just teaching technical skills; they are fostering a culture of innovation by empowering their workforce to experiment with new ideas, tools, and processes. By making training a core part of their talent management strategy, companies can position themselves as leaders in AEC and in the design & manufacturing sectors, driving long-term success.
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1. 5,400 global business leaders and experts from 18 countries.
2. The “Future of Jobs Survey brings” together the perspective of 803 companies – collectively employing more than 11.3 million workers – across 27 industry clusters and 45 economies from all world regions.