Much has been written about the shortage of labor in the automation space. For quite some time now, manufacturing has suffered from tight labor markets. Beyond improving efficiency and cutting costs, automation is becoming essential to simply to get the work done. According to the MHI Report on the Supply Chain in 2020, the adoption rate for robotics and automation increased more than any other technology over the preceding year. But there are additional forces at work.
We now we have COVID-19 to address. Social distancing requirements and the need to minimize transmission of the virus provide yet another impetus. Organizations that have been slow or even resistant to automate are moving forward with automation initiatives.
The rise of Robotics as a Service (Raas) is impacting the automation labor market as well. RaaS is a viable solution for smaller companies that don’t have the capital to invest heavily in robotics. It also gives organizations the flexibility to scale up and scale down based on changing market conditions and customer demand. ABI Research predicts there will be 1.3 million installations of RaaS by 2026 generating $34 billion in revenue.
And if the above isn’t enough, demographics are a huge factor. Ten thousand baby boomers turn 65 every day in America. According to Deloitte and The Manufacturing Institute, 2.69 million manufacturing jobs will be vacated by retirements between 2018 – 2028. Many of those jobs will be engineering jobs, and many others will be candidates for – guess what – robotics and automation.
Current circumstances and future projections clearly show the supply < demand inequality for robotics and automation talent will continue to grow. However, organizations most likely won’t get any sympathy from the manufacturing gods. Customers will continue to be demanding, choosing to do business with partners who offer the best solutions at the most competitive prices. And speaking of competition – the competitive landscape for automation talent will intensify. Your talent challenges are, frankly, not your customer’s or your competitor’s problem.
So, what should your strategy be going forward? Let’s diagnose before we prescribe. As with most things, there isn’t a magic answer for everyone. In my work with companies all over the United States, I see them falling into basically two buckets:
1. In Bucket 1 are companies with minimal automation, no strategic plan on how to expand their automation, and lack of insight into the talent pool. Those in this group are impacted significantly when engineering talent leaves their company. Those departures are typically experienced engineers with a broad skillset. Replacing that resource is very difficult in a world that rewards specialization, not generalization. These companies also have an unrealistic expectation of what they can pay their replacements. And to compound matters, these roles are unattractive to the younger talent pool because they see the work as lacking innovation and challenge – no new lines, updates, upgrades, etc. To them, it’s “I sit around and do plant support.”
2. In Bucket 2 are companies that have a substantive, intentional plan to enhance automation. Already ahead of many of their peers, they have launched a strategy to expand their automation capabilities. These companies have a plan for hiring automation talent – typically at both the corporate and plant level. The plan is specific. They hire managers who understand the benefits of improving automation, understand new technologies and their capabilities, understand the talent market, and know how to create a team of automation talent to support the organization.
Bucket 1 companies are being left behind now, or soon will be. They will attract second tier talent and find themselves stuck in place or spiraling downward.
Bucket 2 companies will fare better but still face challenges as they move forward. Because they have a strategy and a commitment to innovate, they will be more attractive to talented automation engineers. But in a pool of finite resources, competition for the best engineers will continue to be fierce.
What can you do to win? Here are insights and current best practices:
Understand that the winners in the automation race will be the proactive. How can you – today – start planning and growing a team you will need in the future? Regardless of how long you think it will take…it’s going to take longer than that. There’s an old saying, “Dig your well before you’re thirsty.”
Understand that the winners in the automation race will be the proactive. How can you – today – start planning and growing a team you will need in the future? Regardless of how long you think it will take…it’s going to take longer than that. There’s an old saying, “Dig your well before you’re thirsty.”
Accept that not all positions will be filled with an ideal candidate. Although engineering is about precision, it’s the pragmatic that will be rewarded. Why? Not enough ideal candidates exist. The ones that do exist are seeking the sexiest jobs in the market, commanding (and receiving) above market compensation packages. Unless you can compete on those terms, it’s best to manage your expectations.
Given that you’ll be making compromises with your hires, prioritize your demands. The generalist engineer who can do 25 things is on the endangered species list. Identify the most critical subset of those 25 things and hire for those capabilities. Then…
Evaluate your training options. If you really like a candidate who checks many (most) of your boxes, how can you train them on the rest, using internal or external resources?
Use and leverage contractors. This is a growing trend. An increasing number of automation engineers work on an interim/contract basis. You can still pursue the goal of a permanent hire while getting work done today with a contractor. That contractor may turn into your permanent hire, or you can utilize them to eventually train your permanent hire.
It’s a time of tremendous opportunity in the robotics and automation space. Companies that lean into it will be richly rewarded.