May 30, 2025

Bridging the Manufacturing Skills Gap: Challenges & Solutions

NZ manufacturers are facing a growing skills shortage—and it’s impacting productivity, costs, and growth. This blog explores what’s driving the manufacturing skills gap, from an ageing workforce to evolving tech demands. We also share practical solutions like on-the-job training, labour hire partnerships, and improving retention. At Max People, we help manufacturing businesses bridge this gap with flexible recruitment support tailored to their needs. Read the full article for actionable strategies to future-proof your workforce.

The manufacturing sector is the backbone of many industries in New Zealand, contributing significantly to our economy and employment. Yet, businesses across the country are grappling with a persistent challenge: the growing gap between available roles and the skilled workers needed to fill them. This manufacturing skills shortage isn't a new problem, but it has intensified over recent years—driven by changing technologies, an ageing workforce, and shifting labour demands.

At Max People, we work closely with manufacturing businesses to understand these challenges and offer smart, flexible solutions that address both immediate and long-term needs.

What’s Behind the Manufacturing Skills Gap?

Several factors contribute to the widening skills gap in New Zealand’s manufacturing industry:

  • Ageing Workforce: A large portion of experienced tradespeople are nearing retirement, and there’s a shortfall of younger workers entering the industry to replace them.

  • Lack of Training Opportunities: Many jobseekers are interested in manufacturing but don’t have access to practical, hands-on training or apprenticeships.

  • Perception Issues: Manufacturing is often seen as physically demanding or outdated, making it less attractive to school leavers compared to tech or service roles.

  • Technological Advancements: Automation and Industry 4.0 innovations have changed the skill sets required on the factory floor, making some roles harder to fill without upskilling.

  • Immigration Pressures: Reduced access to overseas talent has limited the pool of experienced workers available to meet urgent hiring needs.

Why Closing the Skills Gap Matters

An ongoing shortage of skilled labour leads to:

  • Delayed production schedules

  • Increased overtime costs

  • Burnout among existing staff

  • Missed opportunities for business growth and innovation

For manufacturers in competitive markets, closing this gap isn’t just a people problem—it’s a business-critical priority.

Practical Solutions to Bridge the Gap

1. Upskilling and On-the-Job Training

Investing in training your workforce is one of the most effective ways to close the skills gap. Many employers are now adopting “hire for attitude, train for skill” approaches, offering:

  • Structured onboarding programmes

  • Internal upskilling plans

  • Cross-training across departments

This ensures you can develop loyal, well-rounded workers who evolve alongside your business needs.

2. Partnering with Labour Hire Specialists

Working with experienced labour hire providers like Max People’s manufacturing labour hire team allows businesses to:

  • Access pre-screened, job-ready workers

  • Scale labour up or down as demand shifts

  • Reduce time-to-hire for urgent roles

Our team specialises in placing both temporary and long-term staff across a wide range of manufacturing settings—from assembly and fabrication to quality control and logistics.

3. Promoting the Value of Manufacturing Careers

There’s a need to reshape public perception of manufacturing work. Employers can help by:

  • Offering work experience placements for students

  • Showcasing career progression stories within the company

  • Partnering with schools and training providers to raise awareness

Changing the narrative around manufacturing opens the door to a broader, more engaged talent pool.

4. Hiring International Talent

When local talent is in short supply, overseas recruitment can provide access to workers with valuable skills and experience. This requires compliance with immigration regulations and pastoral care, but the long-term payoff can be significant—especially in highly specialised roles.

5. Building a Retention-Focused Culture

Solving the skills gap isn’t only about bringing people in—it’s about keeping them. Employers should focus on:

  • Competitive pay and benefits

  • Safe, supportive working environments

  • Opportunities for advancement and recognition

Retention reduces turnover costs and helps preserve institutional knowledge on the floor.

How Max People Can Help

At Max People, we understand the complexities of manufacturing recruitment. Our team works with businesses throughout New Zealand to provide flexible labour hire and permanent recruitment services tailored to each client’s workforce needs.

We’re also committed to sharing insights and strategies through our blog, where you’ll find more content focused on industry trends, compliance tips, and workforce solutions.

If your business is facing challenges hiring skilled manufacturing workers, we’re here to help. Visit our Manufacturing Labour Hire page or get in touch to talk about your staffing needs.

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