gen z and technology: are they the key to handling the transition to industry 4.0?

Meet Gen Z — the generation that thrives on change, embraces technology, and is passionate about sustainability. They're bringing fresh energy and ideas to the manufacturing industry, and their impact is only just beginning. In this article, we’ll look at some of the major changes and trends affecting the manufacturing industry, and show how you can respond to them with the help of Gen Z staff.

industry 4.0 and the future of manufacturing.

As a manufacturing professional, you’re well aware of the ongoing transition towards Industry 4.0 — and the prospect of Industry 5.0 lurking in the future, which promises an even more fundamental transition in technology and sustainability.

The exponential growth of complexity and the speed of change in industrial operations is almost unprecedented. Today, manufacturing leaders face pressure from all sides to become more sustainable, productive and responsive to macro trends like the rise of AI, global supply chain disruptions and economic uncertainty.

To navigate these choppy waters, skilled and dedicated staff are vital. But they’re in increasingly short supply. The skills gap is real, and as the pace of development outstrips the supply of relevant skills, making the necessary changes to succeed in the transition to the next generation of industry becomes more and more challenging.

It’s reached the point where attracting and retaining talent with the right skills is the main challenge facing manufacturers. This was the main roadblock facing 65% of respondents in the US National Association of Manufacturers’ (NAM) outlook survey in Q1 of 2024, just as it has been in every such survey since the end of 2017 — with the exception of the pandemic years.

This trend can only be reversed by bringing in qualified talent with relevant skills and the energy to put them to use. Members of Generation Z, many of whom are either well-established in the workforce or just taking the first steps in their career, are a major part of the solution. 

Over time, this generation will inevitably make up a larger share of your workforce. Let’s take a look at the role they play in the ongoing digital transformation in manufacturing and the value they represent for your business.

gen z’s role in the industrial transition

Despite their digital upbringing, there’s some anecdotal evidence that Gen Z may be less digitally literate than many think. Most members of Gen Z in the western world would struggle to remember a time before the internet and omnipresent home computing, but raised on a diet of closed-off, user-friendly smartphone applications, some seem to lack the standard skills many employers take for granted.

However, this stereotype doesn’t tell the whole story. Gen Z is excited about the prospect of studying and working in technical fields, and is even more likely to pursue a career in manufacturing than the preceding Millennial generation. The number of STEM graduates completing their studies has never been higher in the US, and our Workmonitor survey shows skills in IT, AI and tech are high on Gen Z’s list of priorities.

closing the manufacturing skills gap.

So, what does Gen Z offer employers in manufacturing looking for a solution to a dwindling supply of skills and aging workforce?

digital natives bringing fresh perspectives

Computer skills aside, Gen Z has a major advantage in being the first truly digital-native generation. Even their predecessors, the Millennials, grew up in a period where the internet was a comparatively small part of daily life. Members of Gen Z, on the other hand, have had the world at their fingertips from birth and have become skilled problem-solvers and self-learners. In complex manufacturing environments where new technologies are constantly being adopted, this trait gives them a clear advantage. Combine this with the up-to-date knowledge held by many Gen Z graduates, and you get a valuable addition to any manufacturing operation that complements the knowledge of colleagues from previous generations, instead of replacing it. 

a thirst for learning and development

The pace of change in modern manufacturing shows no signs of slowing down. In this environment, the most important thing isn’t the skills workers have today — but the ones they will learn tomorrow. Here, Generation Z has a clear advantage:

• 80% of Gen Z see learning and development as one of their top career priorities — compared to 70% of Gen X and only 61% of the Baby Boomer generation.

• A 2022 survey found that a lack of learning and development opportunities were pushing 74% of Gen Z employees to plan on switching jobs within the next year.
• In LinkedIn’s 2024 Workplace Learning Report, 53% of Gen Z respondents agreed that “through learning, I can explore potential career paths at my company”, compared to an average of 35% among other generations. 

Manufacturing companies that manage to attract more Gen Z talent will end up with a workforce that is much more responsive to change, innovation and development.

a passion for sustainability

Generation Z will experience more of the negative effects of climate change than other generations, so it’s unsurprising they feel strongly about building a sustainable future. Here, manufacturers have an important pull factor that could help attract the best and brightest from Gen Z:

• Within the EU, the manufacturing industry stands for 22% of the Union’s total emissions, in third place behind households and energy production. As the sustainable transition continues, manufacturing is going to be one of the top fields for new initiatives and technologies aimed at cutting emissions and boosting overall sustainability — and for climate-engaged Gen Z jobseekers, it will be an attractive industry.

• Regulations such as CBAM and CSRD will hit the manufacturing industry hard. The range of new jobs and competencies they will create could be an influencing factor in Gen Z’s choices of education programs and careers. Companies that use this opportunity to reach out will attract candidates with both the right qualifications and a passion for what they do.
• For manufacturers who plan on creating green jobs, Gen Z is an important target group. A study from LinkedIn found 61% want to move to a green job in the next five years, with the main obstacle being a lack of open positions.

discover how gen z can unlock a productive transition

As the manufacturing industry shifts towards a new reality and deadlines for sustainability goals approach, change will continue to create disruption — and as any manufacturing professional knows, disruption can lead to lower productivity.

To get more insights into how Gen Z can help solve this problem, make sure to download our report, ‘Losing productivity? Gen Z can help’. It provides more insights, statistics and sources into the potential strengths of Gen Z in manufacturing, and shows how their blend of traits and skills can help keep productivity high during periods of change. Make sure to download it if you have questions about what Gen Z has to offer your company.