For years now, meeting today's workforce needs has been a major challenge for manufacturers. Over 65% of respondents ranked attracting and retaining talent as their top business challenge in the National Association of Manufacturers' outlook survey. And, recently, Deloitte calculated that almost two million (around half) of all open jobs in the next ten years could remain unfilled if manufacturers are unable to meet this talent gap.

There will be no single answer to this complex issue. Advanced recruitment tactics, upskilling initiatives, and messaging that appeals to a new generation of workers will all be necessary to meet this continued demand. However, there's another strategy that manufacturers must prioritize as well: leveraging their ecosystem of partners.

Traditionally, manufacturers have relied heavily on resellers, suppliers, dealers, and other types of partners to meet their distribution needs. However, as the market becomes more complex and customer demands evolve, there is a growing need for partnerships that offer more than just supply chain solutions.

Today's manufacturers are faced with the challenge—and opportunity—to rethink their routes to market, customer support strategies, and more with the vast network of both transactional and non-transactional partners that are changing the business landscape. A partner-led transformation could hold the key to addressing the ever-present labor challenges that manufacturers face.

The growing importance of partnerships

In the future marketplace, the difference between market leaders and followers will be defined by the strength of their partnerships. The era of individual competition is giving way to a new paradigm where success is a collaborative and integrated endeavor.

HubSpot notes that 76% of business leaders believe partner ecosystems will be the main disruptor to business as usual. McKinsey calls it the "single largest economic transformation of human history," predicting that partner ecosystems will drive 30% of the global economy by 2030.

Prioritizing and building better relationships with your current partners, as well as adding new types of partners in your ecosystem, can lead to some profound benefits. When it comes to addressing labor shortages, these include the following.

More predictable access to specialized skills

From technology solutions to ongoing customer support, partners can bring specialized skills that are hard to find or develop in-house.

Ford's partnership with Google illustrates this approach. Announced in 2021, this collaboration integrates Google's expertise in AI, machine learning, and data analytics into Ford's automotive manufacturing. With Google's advanced technology skills, Ford can improve customer experiences, modernize product development, manufacturing, and supply chain management, and accelerate the implementation of data-driven business models without the overhead of developing these competencies in-house.

By collaborating with partners, manufacturers can fill critical skill gaps without the lengthy process of hiring and training new employees. Outsourcing to partners can also reduce overhead costs associated with hiring, training, and retaining employees, particularly in these specialized roles.

Focus on core competencies

By outsourcing non-core activities to trusted partners, manufacturers can also focus on their primary areas of expertise, such as product development and innovation.

For example, GE outsources the implementation and support of its complex machinery and software systems to certified partners worldwide. This allows GE to focus more on developing their technologies and solutions, while partners handle the local customer support and implementation.

Siemens also leverages its network of partners for the installation and maintenance of its industrial automation equipment. Siemens provides the technology and the high-level support, while partners offer the hands-on implementation and day-to-day maintenance services.

These examples demonstrate how manufacturers can enhance their operational efficiency and innovation capabilities by outsourcing support and implementation tasks to skilled partners.

Increased flexibility and cost savings

With partners, manufacturers can scale production up or down without the constraints of their own labor force. This is particularly beneficial in industries where demand or support needs are volatile and/or seasonal.

Partnerships can also enable resource sharing, including technology, workforce, marketing, and facilities, leading to cost efficiencies and enhanced productivity without the need for large capital investments. For example, Stanley Black & Decker leveraged their large local reseller network to roll-out paid ads that met customers right where they were already online and searching.  

With the best partner management tools, manufacturers can also better track all partner-related activities in one portal to find efficiencies and reduce costs. Access to a larger net of partner data also enables manufacturers to dial in on the behaviors of top-performing partners in order to incentivize those behaviors with other partners or build out the skill in their own workforce.

Transitioning to a partner-led approach

As manufacturers face persistent labor shortages, there's a critical need to rethink their partnership strategies. While many companies have long relied on a network of resellers and suppliers, today’s challenges call for a more integrated approach.

A partner-led approach that spans the entire product and customer lifecycle can provide immediate support for labor challenges. By rethinking how partnerships are utilized—from product development and implementation to customer service and support—manufacturers can unlock new levels of efficiency, revenue, and market responsiveness. This strategic shift is not merely about outsourcing for cost management; it's about building robust ecosystems that drive sustained growth and collaborative innovation for all parties.

It's time for manufacturers to prioritize deeper relationships with their partners. By embracing a partner-led strategy today, you can ensure your enterprise remains at the forefront of the industry tomorrow.