? From gap to growth: How diversity could revitalise manufacturing

The manufacturing sector is at a crossroads, its future shaped by its ability to adapt to new challenges. Diversity could be the key to unlocking the innovation and resilience needed to drive the industry forward.?

Why we need diversity?

A study by the Boston Consulting Group revealed that companies with more diverse management teams generate 19% higher revenues, driven by innovation. This shows that diversity isn’t just a target; it’s an integral part of a successful revenue-generating business.??

Diversity in the workforce is crucial across all industries, but particularly in manufacturing. When teams embrace a mix of perspectives—whether based on gender, age, or cultural background—it opens the door to groundbreaking solutions. Manufacturing thrives on creativity, and diverse teams drive it by challenging the status quo and offering fresh ideas. These teams are not only better at decision-making but also at adaptability—important soft skills in the era of digital and green transitions.?

The challenges we face?

Despite these advantages, the manufacturing sector struggles to attract a diverse talent pool. Traditionally, the industry has not been seen as appealing, especially to younger generations. This creates a need to rethink how manufacturing is presented as a career path and make the industry more inclusive.?

It starts with perception, particularly among young people, who often view manufacturing as outdated and labour-intensive, while other sectors, such as tech, continue to boom. Many young graduates are drawn to the tech sector due to its fast-paced working culture, making manufacturing less appealing to them.?

For women, the challenge is different. Women make up 47% of the labour market but only 25% of the manufacturing workforce (Source: Manufacturing Institute, APICS, and Deloitte). While women representation in fields like AI engineering has risen sharply, manufacturing lags behind other sectors such as technology and media in attracting women (Source: WEF Gender Gap Report 2024). Successful women in manufacturing often remain relatively unknown outside of niche industry circles. This lack of visible role models can deter young women from considering manufacturing as a career. The same applies to other underrepresented groups, whose lack of representation makes it harder to attract diverse talent.?

Additionally, there is a growing skills gap. The sector requires talent with technical expertise, which is increasingly difficult to source. This has led to many businesses struggling to fill key roles.?

Changing the narrative?

Attracting young talent to manufacturing requires a shift in how education, mentorship and career development are approached. This process should start with young learners by introducing them to STEM subjects early on. Children need to see the practical, real-world applications of these studies, particularly in manufacturing.?

One of the ways to address this is by providing hands-on learning opportunities through apprenticeships. Moreover, complementary education programme offers students opportunities to build on their school learning, enhancing digital literacy, critical thinking, sustainability and an entrepreneurial mindset—empowering them to think outside the box. For instance, the Girls Go Circular programme has equipped over 40 000 schoolgirls aged 14-19 across Europe with digital and entrepreneurial skills for the circular economy via online learning.?

Technical skills, such as coding, are becoming increasingly important. A 2023 Eurostat survey found that only 13% of young people (aged 16-29) in the EU had written code in the three months preceding the survey. This highlights the need to increase interest and access to learning across the region.?

Organisations like JA Europe inspire young people by connecting them with experts and showcasing opportunities in fields like manufacturing. Early mentorship also helps nurture future leaders and build a more diverse, inclusive talent pipeline.?

Building a sustainable and inclusive workforce?

The future of manufacturing depends on attracting diverse talent, reducing barriers and fostering inclusive, skills-focused practices. To thrive in the twin transition, companies must prioritise upskilling, lifelong learning education. Ultimately, manufacturing's success hinges on the talent it attracts—diverse, innovative and ready to shape its future.?

This article is based on panel discussions from the European Manufacturing Conference 2024. The next major event of EIT Manufacturing, InnoHive, will take place from 8-10 April 2025. Stay tuned for more updates!