The toolbelt generation

While manufacturing has always offered opportunities to those interested in pursuing a career, no generation in recent history has embraced this avenue like Gen Z. Coined the "Toolbelt Generation" by the Wall Street Journal, around 50% of current non-blue-collar Gen Z are considering a career in trade work.

As Gen Z continues to turn their gaze toward the manufacturing industry, positioning themselves as a potential solution to the ongoing labor shortage issue, the expectations they hold for employers have begun to shift the way manufacturers are doing business. To stay competitive, manufacturers must make adjustments to their business and mindset – or else risk missing out on capturing this generational hiring opportunity.

Why Gen Z is turning to manufacturing
Where corporate jobs requiring college degrees were previously more sought after, the emergence of technology like AI has seen Gen Z turn to manufacturing as a stable alternative. In fact, according to a recent survey, 66% of Americans believe trade work has higher job security than corporate professions with the rise of AI.

Gen Z is also facing a dilemma when it comes to the draw of higher education. Recent data shows Gen Z teens are 11% less likely to go to college full-time compared to their millennial predecessors. Part of this change in interest toward secondary education could be related to the cost and payoff associated with a college degree. Perceptions of higher education seem to be changing, with 52% of Gen Z  unsure about the value in a four-year college degree and 64% of Americans not considering the risk of student loan debt commensurate with the return on investment associated with a degree.

These shifts in perspective offer manufacturers the opportunity to harness the power of this tech-savvy generation. However, to attract and retain these workers, the industry itself may have to change its approach to manufacturing and instead prioritize Gen Z’s interests.

Gen Z’s influence on the manufacturing industry
According to a recent McKinsey study, Gen Z manufacturing employees are looking for a few key aspects when it comes to starting a career in trade work. These factors include:

• Reliable coworkers
• Meaningful work
• Caring leaders
• Workplace flexibility
• Inclusive community

If manufacturers can meet these needs, while providing opportunities for advancement and adequate compensation, they have a higher chance of tapping into this new wave of employees. However, for some manufacturers, this may require a change in operational mindset.

Unlike older generations, Gen Z workers are concerned with making a difference and having the opportunity to learn while making mistakes. In fact, 39% of Gen Z manufacturing employees listed workplace flexibility as a reason they've stayed in a position, while 35% listed meaningful work. For manufacturers, this means creating a more forgiving environment and investing more in training on the shop floor.

This could also mean investing more in company culture, creating a safer and more inclusive workplace for employees who may feel intimidated by traditional blue-collar stereotypes. Much of this cultural shift comes from shift leaders, but reinforcing these ideals on the shop floor will make an impact on how manufacturing may be perceived moving forward by this generation of workers.

How is Gen Z impacting the future of manufacturing?

One of the greatest impacts Gen Z will have on the future of manufacturing is the shift in cultural priorities. As manufacturers adapt to draw in and maintain Gen Z workers, the change in flexibility, culture, inclusion, and meaning will reshape the next generation of shop floors.

But beyond cultural influence, Gen Z brings with them a plethora of technological skills. Survey data even shows that 33% of Gen Z workers are more likely to accept a position with a company that embraces new technologies.

This tech-savvy generation will likely be instrumental in driving the changes associated with current manufacturing trends. From understanding the role of manufacturing data and AI, to being better equipped to work with the Internet of Things and manufacturing software, Gen Z will be the key for businesses to scale into the next phase of operational solutions.

To capture the benefits of the Toolbelt Generation, manufacturers must be willing to give way to the influence Gen Z has on the industry as a whole. Those who are unwilling to do so may be left behind and forced to navigate through the continuing labor shortage, particularly as Gen Z grows in presence among tomorrow's workforce. By making the right cultural and operational adjustments, manufacturers can benefit from Gen Z's influence and future-proof their businesses for years to come.