Upskilling a Modern Manufacturing Workforce

The GE Aerospace Foundation, an independent organization funded by Ohio-based GE Aerospace, is launching a $30 million skills training program. The goal is to increase the number of highly skilled manufacturing workers by 10,000 beginning in 2026.

The foundation will allocate funds over the course of five years for local programs to purchase equipment, hire faculty and staff, expand curricula and fund scholarships to lower financial barriers for students.

The foundation will also donate $2.5 million in 2025 to boost existing workforce training programs. For example, $250,000 will go to Cincinnati State Technical and Community College to fund two additional instructors and expand the Aviation Maintenance Technician program capacity to 350 students, up from 185.

The GE Aerospace Foundation’s program comes at a time when the aerospace industry is struggling to recruit engineering and manufacturing talent. 

A study published this summer by the Aerospace Industry Association and McKinsey & Co. revealed 56% of companies face challenges in hiring skilled manufacturing talent. The hiring issues are anticipated to continue over the next eight years, with trade occupations such as electricians, welders and brazers expected to see growth in employment. Plus, an estimated 210,000 assemblers and fabricators could leave the industry or retire each year through 2033.

In 2024, GE Aerospace polled manufacturing workers to about whether they had the skills and knowledge needed to perform their jobs well. Nearly 80% were very confident they had the skills to do their manufacturing job well, but they also cited communication, critical thinking, problem solving and safety procedures as the most needed skills. 

“Inventing the future of flight requires workers with the cutting-edge skills ready to bring our visions to life,” said GE Aerospace CEO H. Lawrence Culp, Jr. in a statement.

The foundation’s latest $30 million program builds on its previous efforts related to upskilling and training. This February, the foundation donated $1 million to the Advanced Manufacturing Training Expansion Program in Massachusetts, expanding the program through 2027. In 2024, it donated $1 million to the United Way of Greater Cincinnati to launch the Future of Manufacturing Fund.

In 2025, the foundation also plans to donate $250,000 to Tarrant County Community College in Fort Worth, Texas, to fund scholarships, technology and training tools for students pursuing aviation maintenance and mechanics skills. 

GE Aerospace itself also doles out donations, with planned funds going to Vaughn College in Queens, New York, and the University of the District of Columbia.

GE Aerospace has a vested interest in training the U.S. manufacturing workforce, as the company plans to spend $1 billion on its domestic manufacturing and supply chain and hire 5,000 workers to support the investments. That’s on top of the more than 900 engineers and 1,000 manufacturing workers that GE Aerospace hired in 2024.

The manufacturer has at times faced labor disruptions at its plants, including a three-week strike among union-represented workers at its Cincinnati-area facility. The workers voted to approve a five-year contract in September.

Beyond the aerospace industry, the manufacturing sector at large had 413,000 open jobs in August, based on preliminary Bureau of Labor Statistics data. The numbers, however, are down from peak job openings in 2021 and 2022.

The U.S. manufacturing industry lost 78,000 jobs over the past year, with everything from AI and automation to immigration policies contributing to the decline.

Caterpillar Inc. plans to commit $100 million over the next five years to upskill its workers to keep up with technological advancements and an evolving labor market.

The construction and mining equipment manufacturer is making the investment in a bid to train up its workforce with robotics, automation and artificial intelligence technologies, including digital twins and machine language models.

The pledge builds on Caterpillar’s efforts to close the growing manufacturing skills gap, including through STEM outreach for K-12 students and paid technician training programs for adults.

Over the next five years, the skill sets needed for the global workforce are set to evolve dramatically, driven by rapid technological advancements in AI, information processing, robotics and automation.

According to the World Economic Forum’s The Future of Jobs Report 2025, these trends are expected to fuel demand for technology-related skills, including in AI and big data, networks and cybersecurity and technological literacy. There will also be a need for more human-centered skills, such as leadership and social influence.

Workers on average can expect two-fifths of their existing skills to be transformed or outdated by 2030, the report’s data show. This is not only a labor issue, but a barrier for businesses looking to remain competitive in a dynamic market. Recently, companies like Amazon and Siemens have looked to combat this through sizable investments in upskilling their workers as a recruitment and retention strategy.

“As an industry leader, Caterpillar understands the urgency of preparing the next generation with the capabilities required for the jobs of tomorrow,” Jaime Mineart, Caterpillar’s chief technology officer, said in a statement. “This pledge, our first of its kind, reflects our dedication to collaborating with our global stakeholders to devise the best training solutions.”

Caterpillar, founded in California in 1925, is making its workforce investment in honor of its centennial. The Irving, Texas-based company has 93 manufacturing facilities worldwide, including 37 across the United States, according to an investor filing.

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By Association for Supply Chain Management

Industry experts say the worldwide supply chain industry will experience a steady annual growth rate of 11.1% from 2024 to 2033. Furthermore, for every six job openings, there’s only one qualified individual within the supply chain workforce. To address this ongoing skills gap and prepare to lead the networks of the future, industry professionals must hone their current capabilities and continuously develop new ones. 

What is a skills gap?

A skills gap is the disparity between the skills an employer needs or expects their workforce to possess and the actual skills their employees (or potential employees) currently have. This mismatch makes it challenging for organizations to fill open positions, meet business objectives or adapt to evolving industry demands. Skills gaps can encompass both technical and interpersonal attributes. 

The supply chain industry is particularly susceptible to skills gaps due to its rapid evolution driven by technology, globalization and shifting market demands. In fact, 64% of supply chain companies are combating a talent gap. “Advanced technologies are shaking up the supply chain world,” according to KPMG. “With quickly evolving capabilities across generative AI, data analytics, automation, machine learning, the internet of things, blockchain and more, the ‘smart’ supply chain is well on its way to becoming the new normal.” 

Strategies to close the skills gap

The good news is that you can start building the workforce of the future, today. Here are some steps you can take that will benefit your supply chain operations and close the skills gap in your organization.

1. Conduct an audit: Survey the current skillsets within your organization through formal assessments, annual performance reviews and peer feedback to gain a comprehensive understanding of current capabilities. Pinpointing specific areas for growth will enable you to target your development efforts more effectively. 
2. Invest in upskilling: Based on your audit results, implement training programs to address any skills or knowledge gaps and build expertise where you need it most. You also need your team to understand the latest innovations—artificial intelligence, automation and other digital transformation initiatives—for efficient implementation, so consider how you’re building that into your training plan.
3. Develop a holistic leadership style: In global networks, true leadership extends beyond individual functions. A holistic leader understands the interconnectedness of every node, from sourcing to delivery. This comprehensive view enables more effective control of the entire network from a single point of command, unifying diverse teams and technologies under a shared vision. Such leadership drives positive, systemic change, optimizing the whole supply chain for efficiency, resilience and sustainability. 

Prioritize ongoing advancement

By fostering a continuous learning environment, you demonstrate to your employees that you see the value in their professional growth. When employees feel valued, they are more likely to stay and not look elsewhere—like your competition. Not only will you increase employee retention, you’ll also increase your bottom line. Data from SHRM shows that the cost of a new hire is nearly three-to-four times the position’s salary. Work with the talent you have to create a sustainable workforce that knows your business and can adapt to the latest digital innovations.

Today’s supply chain professionals need both technical and leadership skills. Technical expertise might include working with AI, mastering data analytics, or managing automation and risk. Leadership abilities—such as problem-solving, critical thinking and emotional intelligence—are equally important. The goal is to create a workforce that can collaborate effectively with both technology and people, fostering flexibility and resilience through ongoing learning.

Embrace the future of work by giving your team the tools they need. Explore ASCM’s workforce development programs to build high-performing teams ready to meet any challenge. Download the shareable Why Your Supply Chain Team Needs Upskilling PDF.

 Drew Crowe had been incarcerated multiple times and was stuck in a vicious cycle, as he described it: getting “locked up,” lacking skills and having no idea how to craft a resume or secure a job. Crowe found a turning point when a manufacturing employer hired him to work as a third-shift saw operator.

“It kept my mind busy. It kept my body busy,” he said. “It gave me purpose.”

Crowe now leads the New American Manufacturing Renaissance, which consults and advises manufacturers on hiring formerly incarcerated individuals, a process known as second-chance hiring. 

His journey underscores the opportunity that manufacturing affords to people coming out of the prison system, due to the industry’s focus on skill building for workers in entry-level jobs and its push to recruit from a broader array of talent to mitigate workforce shortages.

The number of manufacturing employees has dropped sharply since 2000, and the industry had 409,000 job openings this August, according to the latest Bureau of Labor Statistics data. By 2033, manufacturers could face a shortage of 3.8 million workers, said Pooja Tripathi, senior director of workforce innovation at the Manufacturing Institute.

As a result, manufacturers are getting “more creative and thoughtful about recruiting from nontraditional talent pools,” Tripathi said. That includes hiring individuals with a record — referred to as justice-involved or justice-impacted people — a group that includes approximately 77 million people in the United States.

Manufacturing gives a second chance

Manufacturers in various sectors have undertaken second-chance hiring initiatives. Mursix, which produces parts for automotive, medical and industrial markets, has hired associates to work in its stamping, assembly and shipping departments. JBM Packaging in Ohio works with state corrections facilities to identify people who are soon to be released and could be recruited for open jobs.

Awake Window & Door Co., which makes products such as sliding doors and window walls, found that second-chance hiring opened the doors to more talent, said Maria Gates, the company’s cofounder and chief people officer. Today, 54% of Awake’s staff has a “justice-involved background,” Gates said.

The justice-involved candidates Awake brings on are “extremely hard-working, dedicated employees,” Gates said. “They know what it's like to job search with a background, and they are so grateful for the opportunity to prove themselves in the workplace.” 

Crowe’s own experience reflects that. In his first manufacturing job, he would show up 15 minutes early, then stay an hour late to meet people on the next shift and ask them questions, he said. As a whole, justice-impacted hires show more loyalty to their employers with higher retention, according to Crowe.

“The ROI is exponential for manufacturers, and the investment is really low,” Crowe said.

Employees with records often have the lowest turnover rates of all workers, according to the National Association of Manufacturers. 

In 2024, staffing firm Kelly filled more than 2,000 jobs at 17 clients with justice-involved individuals. The firm runs a second-chance hiring program called Kelly 33, in reference to the 33% of working-age Americans with a criminal history. Monthly turnover for this group was just 9%, which is lower than average, said Marvin Figaro, director of DEI strategic partnerships at Kelly. On top of that, the time to fill positions fell to 11 days from 21 days.

Figaro said manufacturing, specifically, is “a great entry point for justice-involved talent” because of the opportunity to learn on the job. Gates added that most manufacturing roles aren’t customer facing, which allows companies to hire “more sensitive backgrounds that may not be a good fit for customer-service type jobs.”

Manufacturing is skills oriented and “more open-minded about developing talent” compared to industries focused on higher education degrees, Tripathi said. In correctional facilities, many people also receive manufacturing-related training, which prepares them to work in the industry.

In the end, manufacturing is about solving problems, which Crowe said justice-impacted individuals excel in. Case in point, one justice-impacted employee at North American Stamping Group implemented a new process in welding that improved part failure rates up to 90%.

“The most innovative thinkers that I've been around have been in the cell,” he said.

Support on the job

Companies considering second-chance hiring have to make decisions about their practices, as well as any programs they want to implement to support formerly incarcerated people.

Several manufacturers, including General Motors, Micron, Procter & Gamble, PepsiCo and Texas Instruments, have joined the Second Chance Business Coalition, committed to advancing the practice in their organizations. More than 80% of coalition members now review candidates without putting a hard stop on hiring those with certain types of convictions, and 70% have adjusted their HR policies to be more inclusive of second-chance employment.

Gates said manufacturers looking into second-chance hiring may want to have mentorship programs or offer life-skills classes and budgeting workshops to help individuals adjust. Educating company leaders on some of the unique needs of formerly incarcerated people is also critical. For example, companies need to train managers and HR departments to understand that meeting with a parole officer during the workday is an excused absence.

Crowe initially had weekly visits with his parole officer. “I had to go see them during my work shift because they weren't flexible,” he said.

There are also some potential legal or ethical risks to consider. If an open job involves going to customers’ homes or driving a company vehicle, Awake Window & Door will examine on a case-by-case basis if an individual with a criminal background should be placed into that role.

Kelly’s Figaro said some companies are worried about negligent hiring risk, in which an employer could be held liable in a civil suit if the company hired someone likely to harm others. However, over nearly 50 years, just 435 cases resulted in employers being held liable for negligent hiring in the U.S., according to a 2023 report by the Legal Action Center.

Perhaps the biggest pushback to second-chance hiring is the stigma associated with hiring justice-involved individuals. Figaro has heard companies express concerns over safety and workplace violence or theft. 

“The reality is that justice-involved talent are no more or less likely to cause an increase in these incidents than someone who is not justice-involved,“ Figaro said.

Gates said Awake has never had safety issues related to second-chance hiring. The manufacturer still conducts background checks for each hire and a “green factors interview,” in which HR looks at the progress a person has made during their time in prison and since their release.

The Manufacturing Institute’s Tripathi sometimes encounters manufacturers that are hesitant to engage in second-chance hiring. Much of that stems from a lack of familiarity.

“Deciding to invest in second-chance hiring is often the first time manufacturers are working up close with the justice system,” Tripathi said, noting that manufacturers become more comfortable with the idea when they realize the potential benefits and learn how peers have participated in second-chance hiring. “It becomes a source of pride that they are helping people rejoin society and contribute to their communities.” 

Emerging programs are increasingly going beyond simple vocational training by targeting students early or in underserved communities, offering direct pathways to employment and exposing trainees to advanced tech skills. 

These workforce development programs are a response to the industry labor gap that’s been apparent since before the pandemic years. An oft-cited Deloitte report estimates that up to 1.9 million jobs could remain vacant if current labor trends continue. 

“When a large share of the manufacturing base left the U.S. in over the past few decades, many states and local communities began to deemphasize skills and trade education at the high school level,” said Darrell Edwards, an assistant professor of practice in supply chain management at the University of Tennessee.

Edwards recently co-authored a whitepaper on reshoring with Alan Amling, an assistant professor of practice at the University of Tennessee. Their research explored how businesses are grappling with a push to reshore manufacturing operations in an environment where so many young people were told that a four-year college program was the only path to success.

“One of the unexpected findings in our research was the skills gap in trades — electricians, welders, carpenters, plumbers, masons, etc. If we’re going to bring more manufacturing to the U.S., we need more people in the skilled trades,” said Amling.

That’s in addition to other dominant gaps in employment, including in tech-driven and maintenance roles. 

Thanks to a mix of federal funding, private sector innovation and state-level efforts, prospective workers can now opt into a manufacturing career via multiple training paths.

Flagship events like Manufacturing Month in October are giving businesses another opportunity to attract talent.

They can do this by “reinforcing that this is a sector where you can make a real impact and build a fulfilling career,” said Laura Phillips, vice president of engineering and procurement for window manufacturer Pella Corp. “We get to tell our story, challenge outdated perceptions, and spotlight the career pathways that exist in this industry.”

Vocational training innovations

While there are many ways to close the labor gap, Amling suggests that it will take a mix of government, private and academic programs to make it happen. 

Traditionally, such efforts have been led by public-private networks such as the U.S. government-operated Manufacturing USA, a network of innovation institutes that partners with education organizations to offer training programs, apprenticeships, certification programs, among other offerings. Others include the Manufacturing Extension Partnership, a federally-supported national network of centers that helps train and upskill workers. 

Additionally, federal laws — such as the Workforce Innovation and Opportunity Act and CHIPS and Science Act — have provided robust sources of funding and impetus for training programs in different sectors.

Companies have also matched these efforts by developing training programs to fit specific hiring needs. 

In 2021, Kellanova’s Jackson, Tennessee, plant partnered with the Tennessee College of Applied Technology to create a curriculum initially focused on training students in electrical and instrumentation skills.

The program is bespoke in the sense that students learn in an advanced on-site training room designed to mirror equipment on the Jackson plant’s factory floor. Graduates leave the 16-month program with foundational E&I skills and have the opportunity to receive low-voltage qualification. To date, Kellanova has hired 50 employees into the E&I training program. 

According to Manuel Lopez-Portillo, Kellanova’s VP of North American supply chain, the set-up is a win-win.

“By the time they show up to day one of the actual job, they’re already familiar with the elements they’re going to be working on. The learning curve is faster and safety is improved as well,” said Lopez-Portillo. 

But finding prospective students to join any vocational programs is still a hurdle.

Pella has relied on a “multifaceted” approach by pairing interns with mentors, or partnering with schools and community programs to host plant tours and job shadows that spark interest in manufacturing early.

“Many of the students we have met through these interactions have joined the Pella team,” said Phillips.

Programs like the Uniquely Abled Project, founded by former engineering professor and business consultant Ivan Rosenberg, tackle the challenge in a different way by offering training for adults in the autism community. The program’s name is intended to correct possible perceptions of adults with autism by asserting the benefits that they would bring to a corporate environment.

The 12-week program offers 420 hours of in-class instruction on computer numerically controlled machines, in addition to U.S. OSHA and Tooling U certification. Over 300 students have graduated since the program’s launch 10 years ago.

Thanks to its ability to be adapted to any location, the program is currently hosted in 31 locations across 16 states.

“Dr. Rosenberg wanted to create a program that was scalable instead of tied to a singular physical location. So first, he decided that he did not want to deliver direct services. Instead, he wanted to distribute proven methodologies to direct service providers and allow them to succeed,” said Heidi Kershaw, a stakeholder engagement consultant for the Uniquely Abled Project.

Another element essential to the program’s success lies in its partnership with local manufacturing companies, which offer hiring opportunities post-graduation at businesses located near the academy, such as in shops that house CNC machines.

“In the agreement that we make with our hosting sites, we give a huge responsibility to those schools to create relationships with manufacturing companies within their region — to invite them to the campus, to understand what they need,” said Kershaw. 

While the Uniquely Abled Project is designed to be scalable and collaborative it still requires significant fundraising efforts. It’s the same practical hurdle that prevents many such programs from graduating students at scale. 

“That cost is around $5,000 to $6,000 per student depending on the location of the Uniquely Abled Academy. The school site is responsible for those fundraising efforts,” said Kershaw. “In the state of California, the local Department of Rehabilitation offices have generously provided the costs associated with their local programs. But there is always a need for more, to do more. I also think funding is reactive instead of proactive at this point.”

Changing training needs

When thinking about the future of manufacturing jobs, automation also figures heavily into the picture. 

For companies interested in reshoring manufacturing or wanting to close their employment gaps to remain competitive, “labor almost certainly must be augmented by some form of technology,” said Edwards. “Machines can operate around the clock, which helps to cover the depreciation cost of the investment, and can increasingly do more complex tasks.”

From Edwards’ view, training for jobs that interface with artificial intelligence or automation must happen at the factory floor level, in high school or through a community college trade curriculum.

“Many sophisticated supply chain planning and procurement tools require their users to understand how to navigate the tools and query information to maximize their effectiveness, so it happens through targeted training or through osmosis,” he said.

Manufacturers like Pella are adapting automation to uniquely fit their processes and capture valuable historical knowledge.

“We’re using automation not to replace jobs, but to preserve that expertise, make tough jobs easier and equip younger team members with tools that help them upskill and work hand in hand with technology,” said Phillips. 

Amling and Edwards’ research has a similar conclusion, predicting that “automation will not replace the need for human capital — it will heighten the need for more sophisticated, interdisciplinary skill sets.

The U.S. Department of Labor will provide $30 million in funding to the Industry-Driven Skills Training Fund grant program to help address critical workforce shortages nationwide, according to an Aug. 11 press release. 

The department’s Employment and Training Administration will use the grants to provide outcome-based reimbursements to employers that offer training in “high-demand and emerging industries,” DOL said. 

Those industries are ones identified by the Trump administration in various executive orders and action plans and include skilled trades, artificial intelligence and maritime, among others. 

“The Industry-Driven Skills Training Fund grants will ensure employers drive workforce training that is critical for their business needs, while also upskilling workers and developing a critical talent pipeline to fulfill this Administration’s goal of putting American workers and employers first,” Secretary of Labor Lori Chavez-DeRemer said in a statement. 

“These grant opportunities will help fill the good-paying, in-demand jobs being created by President Trump’s successful efforts to restore America as the world’s leading manufacturing superpower and secure our position as the dominant global leader in AI.”

ETA will award grants of up to $8 million to state workforce agencies to create training funds that encourage employers to both develop and expand training programs, DOL said. If more funding becomes available, DOL said it could provide additional rounds of grants.

Business leaders may be using artificial intelligence tools and automation to replace workers rather than invest in skills training, according to an Oct. 8 report from the British Standards Institution.

Just over two-fifths of leaders surveyed said AI is enabling headcount reduction, and 31% said their organizations consider AI solutions before considering hiring for roles. In reflection of this, BSI’s analysis of the discourse around AI implementation found that discussion of job automation “significantly overshadows” discussions of workforce development.

“This suggests companies are prioritizing AI's role in innovation and competitive advantage, potentially overlooking the human capital implications,” according to BSI.

In addition to a poll of more than 850 business leaders, the study also used an AI-supported analysis of a data set that included the annual reports of various multinational corporations. Entry-level jobs are particularly at risk, the study indicated, with a quarter of respondents saying AI could perform most of the work of an entry-level colleague.

“AI represents an enormous opportunity for businesses globally, but as they chase greater productivity and efficiency, we must not lose sight of the fact that it is ultimately people who power progress,” Susan Taylor Martin, CEO of BSI, said in a statement. “Our research makes clear that the tension between making the most of AI and enabling a flourishing workforce is the defining challenge of our time.”

Notably, small- and medium-sized employers may become key players in upskilling, BSI said in its report. Fewer said AI is crucial to their growth compared to large companies, and only 30% of small- and medium-sized employers have cut junior roles compared to half of larger firms.

“The implication is that [small- and medium-sized employers] could become the backbone of skills development, providing greater opportunities for employment and training for Gen Z,” the report said.

Other reports have also pointed to the danger entry-level jobs and their holders may be in. For example, nearly three in four Generation Z respondents to a Zety report released in July said AI will reduce entry-level corporate job opportunities in the next five years, forcing workers to reevaluate what a “safe” career might look like.

Conversely, entry-level job seekers may not be ready for their jobs due to a lack of soft skills, signaling further need for upskilling, according to a September report from General Assembly.