The future of global manufacturing hinges less on academic degrees and more on adaptable, hands-on skills, according to a new KNOLSKAPE report. The Next-Gen Workforce: Manufacturing Insights 2025 study warns that an escalating skills gap could drain USD 1 trillion from the world economy by 2030, even as factories race to automate and digitize.

Surveying 26 manufacturing giants and 47,000 employees across APAC, the Americas, Europe, and the Middle East, the report found 94% of organisations now prioritise skills over degrees in hiring. Employers cited problem-solving, adaptability, and technical expertise—from CNC operations to automation and data analytics—as make-or-break assets.

The urgency is underscored by projections that 2.4 million jobs may go unfilled by 2028. The shortfall, experts caution, lies not in machines but in people.

“The future of manufacturing isn’t just about machines—it’s about people who can learn, adapt, and work together faster than change itself,” said Rajiv Jayaraman, Founder & CEO of KNOLSKAPE. “Organizations must move beyond one-off training and invest in building an AI-ready, ethical workforce.”

Beyond technical know-how, the survey shows 71.4% of leaders now view AI ethics, bias mitigation, and human-centric design as critical skills, while employees increasingly recognize adaptability, collaboration, and emotional intelligence as essential to thrive in an AI-powered workplace.

The report also highlights middle managers as pivotal to upskilling efforts, yet structural barriers remain: 71.4% of firms cite budget constraints, 64.3% struggle with ROI measurement, and 57.1% face integration hurdles in learning and development.

The takeaway is stark: a skills-first transformation is no longer optional. Manufacturers that embed continuous learning into daily operations and empower leaders at every level, the report concludes, will shape the next chapter of global industry.