As manufacturers invest in automation, artificial intelligence (AI), connected worker tools, digital workflows, and smarter operations, organizations that prepare their people to adopt and sustain new ways of working are more likely to realize value. Due to retirements, a shortage of skilled labor, evolving employee expectations, and rapidly changing technology, manufacturers need to align technology investments with capability building, supervisor enablement, change leadership, and workforce planning to help improve productivity, reduce reliance on unwritten knowledge, and build a more resilient, adaptable workforce.
The second of our 2026 Manufacturing Modernization webinar series emphasized that manufacturing modernization is not only a technology initiative, but it is also a workforce transformation challenge. This article will explore the results from the four polling questions, along with a breakdown of responses, and strategies to consider for these critical issues.
An Overview
Respondents identified attracting and retaining skilled talent as their top workforce transformation priority, followed closely by improving productivity and efficiency and increasing automation or AI adoption. More than half said their workforce is keeping pace but still has gaps, while more than one-third indicated their workforce is either at risk or falling behind. Skills and talent shortages emerged as the biggest barrier, followed by resistance to change and technology integration challenges. When asked where organizations are investing most, respondents pointed to training and development programs and process redesign or operating model changes, suggesting manufacturers are beginning to recognize that modernization requires both people-focused and process-focused investments.
Talent Before Technology
What is your organization’s top workforce transformation priority over the next 12 to 24 months?
The responses were closely grouped, with attracting and retaining skilled talent leading at 30%, improving workforce productivity and efficiency at 27%, increasing automation or AI adoption at 25%, and upskilling or reskilling the current workforce at 18%. Together, these results suggest manufacturers are not viewing workforce transformation through a single lens. Talent, productivity, technology adoption, and upskilling are all competing priorities, reinforcing the message that modernization requires an integrated strategy connecting people, processes, and digital tools. What we have found with our clients is that the organizations that really outperform their competitors aren't those with the newest or the best technology. They're the ones who prepare their people to fully leverage the technology.
Keeping Pace Isn’t the Same as Getting Ahead
To what extent is your workforce equipped to adapt to new roles or tasks over the next two to three years?
More than half of respondents said their workforce is keeping pace but still has some gaps, and 12% said their workforce is ahead of future needs. While this may seem optimistic, 25% said their workforce is at risk, and 12% said capability gaps are already emerging as they are falling behind. The results point to a meaningful readiness gap: many manufacturers are making progress, but most still need to strengthen training, workforce planning, and internal capability building to keep pace with technology and operational change and avoid having an eventual skills gap.
We’ve seen some manufacturers unable to keep pace with the rapid pace of change in AI and technology. They can't get talent in the door fast enough, so they're really looking internally to figure out how they can develop employees. This is an attempt to avoid having an eventual skill gap. Keeping pace may feel like an uphill climb.
The Barriers Holding Transformation Back
What is the biggest barrier to workforce transformation in your organization?
Again, people are at the center of workforce transformation. Skills and talent shortages ranked highest at 32%, followed by resistance to change and culture at 28%, technology integration challenges at 23%, and budget or investment constraints at 17%. Together, these results indicate that the biggest obstacles are less about funding and more about people readiness, organizational behavior, and the ability to connect technology with day-to-day work.
We have seen that our manufacturing organizations need to be thoughtful about the technology infrastructure, creating an operating environment where people, processes, and technology work together seamlessly. For example, employees can have information at the point of need. Instead of stopping work to find a manual or locate an experienced operator on their team, they're supported by digital work instructions, connected worker tools, and they've got real-time guidance at their fingertips. This can help speed up shop floor training and upskilling in other areas.
At the end of the day, organizations want to make this process as easy as possible for team members. The more personnel struggle with technology, the less likely they are to use it, and may end up walking away from the technology and the company. Companies need to be aware of and measure change fatigue and adoption challenges, and take action to quickly address any issues that arise. Increasing the amount of cross-training for employees may help address skills gaps and help prevent or reduce the reliance on emergency external hiring.
Training Investments/Change Leadership Is the Deciding Factor
Where is your organization investing most to enable workforce transformation?
Training and development programs led at 33%, followed by process redesign and operating model changes at 32%, digital tools and smart factory technologies at 26%, and external partnerships at 9%. These results suggest manufacturers are recognizing that transformation depends on more than new technology. The strongest investments are being directed toward building workforce capability and redesigning how work gets done, which supports the article’s central theme that sustainable modernization requires both people-focused and process-focused change.
We have found that leadership can help bridge the gap between modernization goals and day-to-day performance. Reducing administrative burdens and equipping supervisors with real-time data, standardized routines, and coaching capabilities can help shift them from reactive firefighting to proactive people leadership. Sustainable transformation requires change leadership, training, and process redesign. This change-based focus begins before implementation in preparation for large-scale transformations. Change must be led consistently across executive, plant, and frontline levels, with clear communication, practical training, reinforcement, and recognition long after go-live.
The Bottom Line
The polling results reveal a consistent theme across the manufacturing industry: technology may create opportunity, but people create results. Manufacturers that invest in workforce readiness, leadership development, and employee engagement with the same discipline they apply to technology investments may be better equipped to improve productivity, strengthen resilience, and realize the value of modernization initiatives. Workforce transformation isn’t the end. It is an ongoing journey that begins and ends with people.
How Forvis Mazars Can Help
Our Manufacturing team has extensive experience across a wide range of industries, and we can deliver tailored services to help meet your unique needs. If you’d like to discuss a particular topic, such as AI use cases, incident response, data-driven insights, or would like more information on our services to help your organization prepare for what’s next, please reach out to a professional at Forvis Mazars.
Watch the recording of “Manufacturing Modernization: Workforce Transformation” on demand anytime for additional insights.
- Data was collected from approximately 275 individuals who attended our “Manufacturing Modernization: Workforce Transformation” webinar on July 14, 2026 and answered several polling questions. Most middle-market companies represented were manufacturing organizations, but others spanned various industries with an interest in the state of the manufacturing industry. Participants were nearly evenly split between associate/manager/supervisor level and participants holding higher positions, listing themselves as directors, assistant controllers/controllers, C-suite, and VP/executive directors. Only people who responded were included in the results shown.