What are the ramifications and how does it affect the worker gap in Life Sciences?
The light industrial sector is currently experiencing a surge in growth, driven by the demand for manufacturing, assembly, and warehousing. However, finding skilled workers in this sector remains a constant challenge. This challenge is exacerbated by not just finding new skilled workers to meet the demand, but also in retaining the current workforce. One area related to the light industry, which will be looked at later, is Life Sciences, a sector which highlights the disparity between active vacancies and suitable candidates. To reduce the gap, certain measures can be undertaken to acquire new talent and ensure the light industry remains productive. Before looking at why the gap is getting bigger, and how certain steps can be taken to reduce it, let’s look at defining light industry itself.
We are all familiar with the term heavy industries, which suggests large-scale production that uses bulky machinery and complex processes. This would include industries such as oil and gas exploration and refineries, aerospace, shipbuilding, infrastructure construction, mining, power generation plants, etc. By contrast, light industries are less capital-intensive, and tends to focus on small or light articles that are aimed at end users. While less intensive than heavy industry, light industry still requires a skilled workforce to operate machinery and production equipment, as well as packaging, shipping and warehouse management.
The Economic Effect
According to WorldMetrics [1], the global light industry market is projected to grow by $148.6 billion from 2021 to 2025. The metal products segment is expected to witness substantial growth in the light industry sector by 2028. The global light industry market is anticipated to register a CAGR of 4.5% from 2021 to 2028. To meet this level of growth, the industry must be able to have the workforce available.
Unfortunately, the gap between skills and demand continues to grow wider. The skills gap in the light industrial sector poses significant challenges for businesses, such as decreased productivity and efficiency, increased hiring and training costs, and limited growth potential. According to a new study by Deloitte and The Manufacturing Institute, the manufacturing skills gap in the U.S. could result in 2.1 million unfilled jobs by 2030 [2].
The Causes and Possible Solutions
There are many reasons why the gap is growing significantly, and these could be down to multiple uncertainties, such as rising inflation, recession, migratory issues (for example, Brexit in the UK), and international instability. Four of the key reasons for the gap widening are:
Retiring workforce – experienced workers are retiring and aren’t being replaced by new talent. This creates a knowledge vacuum, and costs more to replace and train new staff.
Unskilled talent – existing workers are not being trained or upskilled as new technology advances and are therefore unable to operate and manage new systems properly.
Appeal – manufacturing, the cornerstone of light industry, is not attractive to a new and younger audience, and so it’s often overlooked as a career path.
Boom and bust – many people were hired into light industry and pharma roles during the pandemic, and subsequently let go once demand declined, and so are less inclined to join or rejoin an ‘unstable’ sector.
In order to overcome these challenges, there are steps that can be done from an educational perspective as well as an internally from the business owners themselves. These are:
Attract young talent: this long-term solution would need to come from an educational standpoint, where schools and further education bodies need to focus on the benefits and value of light industry and manufacturing roles, and the importance it has in keeping the economy moving.
Apprenticeships: make more apprenticeships readily available from a government level to plug the gap made by the retiring workforce
Upskilling: training and development needs to be taken seriously to ensure the workforce is kept up to date with the latest processes and technology. This may result in higher salaries but it also highlights a solid career path which is attractive to those currently employed.
Leverage innovation: showcase how new technology is used within manufacturing processes, such as robotics, augmented reality, automated systems, and AI. Advanced technology is attractive to new graduates who have been educated and trained in a digital environment.
The Skills Gap in Life Sciences
While the skills gap in light industry and manufacturing is a significant problem, it has a tremendous knock-on effect across the industry and the economy as a whole. As highlighted earlier, the skills gap can affect production, which therefore affects supply and demand across different sectors. One example of this is within life sciences, whose industry is comprised of companies operating in the research, development and manufacturing of pharmaceuticals, biotechnology-based food and medicines, medical devices, biomedical technologies and more. Life sciences, while a distinct sector in its own right, shares many of the sub-sectors within light industry, such as logistics, manufacturing, and warehouse management. Life sciences was a sector that saw rapid investment and hiring during the recent pandemic to deliver vaccines around the world, despite facing challenges of acquiring new and skilled talent to meet demand.
A report in 2020, which looked into future life sciences workforces, concluded that the STEM skills gap is estimated to leave 2.4 million positions unfilled in the U.S. between 2018 and 2028, with a potential economic impact of $2.5 trillion [4]. These figures highlight significant skills shortages, lack of effective education policies, and competition from abroad.
The Role of Recruitment
With such a short pool to work with until proper infrastructure is in place to bridge the workforce gap, the onus now is ensuring that available people are selected and recruited into the right place more efficiently. It’s a unique challenge – until a new workforce is educated and trained, how do you recruit effectively when no one is applying?
Recruiters need to utilise their resources and expertise to help businesses find the skilled personnel they need to succeed. They need to understand the market and the challenges faced, and be able to identify the skills, knowledge, and experience required within it. They also need to identify where the talent pool resides geographically, and make sure advertising efforts are coordinated and targeted correctly. In the U.S., pharma research companies are typically located on the northern east coast, as well as the San Francisco Bay area on the west, while in Europe, it’s the UK, the Netherlands, and Germany. This may result in workers and contractors having to relocate, so benefits and compensation packages need to be attractive and competitive to mirror the value of the work on offer. Additionally, pharma companies need to raise the stakes themselves and promote their values, their work in the community, etc., as well as competitive packages, in order to attract workers whose goals are similarly aligned.
This approach won’t end the skills gap overnight, but it will maximise the use and value of the current talent pool while newer talent is being introduced and trained.
Careers in Life Sciences are more important than ever, and the demand for skilled professionals in this area will continue to grow. Whether you're just starting your career or looking to advance, there’s a place for you in this vital and rewarding field. Register your CV with Orion Group today and take the first step towards a career where your expertise will always be in demand. Together, we can help you find the perfect opportunity to advance your career and contribute to a more sustainable future.
