The next great industrial revolution isn’t happening overseas — it’s unfolding at home. But without the right talent, it may never get off the ground.
Rising tariffs, geopolitical instability and waning trust in globalization are transforming how companies in sectors like Industrial, Automotive, Energy, Materials, Transportation and Real Estate approach their workforce strategies.
This transformation is part of a broader trend known as industrial sovereignty — a new era in which companies and nations prioritize domestic self-reliance over global interdependence. Capital is being redirected to local economies, and new supply chains are being rebuilt. In short, the rules of engagement have fundamentally changed.
At ManpowerGroup, we help organizations respond to this shift by aligning workforce strategy with business strategy, enabling talent-driven sustainability and long-term resilience.
The world is focused on where we build — but the real question is, who will?
Making a New Industrial Order: Tariff Policy, Laws and Executive Orders
The shift toward industrial sovereignty isn’t just an abstract concept — it’s playing out in real time through aggressive policy and investment. According to McKinsey, industrial policy actions — including subsidies, tariffs and incentives — have surged nearly 390% since 2017. Increasingly, nations are using these tools not just to stimulate domestic production but to strengthen economic and national security.
In the U.S., a combination of major legislation, like the Inflation Reduction Act and the CHIPS and Science Act, and executive orders, such as 14156, is channeling billions into reshoring high-priority industries. These include semiconductors, critical materials, energy production, clean energy and electric vehicle manufacturing.
This movement is mobilizing capital at an impressive pace. However, the labor needed to support these ambitions is falling critically short.
The Talent Scarcity Paradox
While funding flows and new facilities rise, talent scarcity continues to increase across the U.S. labor market. A growing body of research highlights just how severe the gap has become:
- According to ManpowerGroup’s 2025 Talent Shortage Survey, 72% of employers in the Industrials and Materials sector can’t find talent with the skills they need.
- Deloitte’s Manufacturing Industry Outlook shows that 1.9 million manufacturing jobs could go unfilled over the next 10 years if talent challenges are not addressed.
- A National Skills Coalition report highlights that 20 critical clean energy, infrastructure and manufacturing jobs will face labor shortages. This will result in an anticipated total labor shortage of nearly 1.1 million workers who — without training and other workforce investments — will lack the skills to fill these jobs.
Pressure is mounting across multiple key sectors. In the U.S. automotive industry, a critical shortage of service technicians is emerging, with over 400,000 positions projected to be needed by 2028. This gap threatens to disrupt everything from routine vehicle maintenance to the rollout of next-generation electric vehicles, placing added strain on an industry already undergoing rapid transformation.
Similarly, in the Energy and Chemicals sector, the workforce is expected to grow by 4.1% by 2033, according to Deloitte, but 60% of current employees will need upskilling to keep pace with emerging technologies.
This talent shortage is especially severe in fast-growing areas like electric vehicle battery production, semiconductors, hydrogen energy, chemicals and advanced logistics, where rapid innovation is outpacing the availability of trained workers. In fact, 67,000 or 58% of new semiconductor manufacturing jobs risk going unfilled by 2030.
So, what’s fueling this growing divide between industrial opportunity and workforce readiness?
From Supply Chain Disruptions to Diplomatic Tensions: What’s Fueling the Talent Shortage and Widening the Talent Gap?
To understand the depth of the problem, we must examine the macro-level forces reshaping the workforce landscape. The following are not isolated trends; they’re interconnected disruptions that compound the challenge of building a ready, resilient talent pipeline:
- Trade Volatility
Supply chain disruptions and unpredictable shifts in trade policy hinder long-term planning. When global supply chains remain in flux, employers hesitate to commit to talent strategies that may quickly become outdated.
- Geopolitical Uncertainty
Ongoing conflicts and diplomatic tensions are pushing companies to diversify sourcing and production. However, moving operations into new geographies often means entering labor markets that are not yet mature, requiring new training infrastructure from scratch. This is particularly true across large swaths of rural America, where many new data centers and advanced manufacturing facilities are being built.
- Deglobalization
As companies derisk their global supply chains, they’re faced with the need to rebuild domestic capabilities. That includes not just facilities and logistics, but people — a far more complex and long-term undertaking, including talent attraction, upskilling, retention and talent development.
Together, these forces demand more than reactive hiring. They call for a proactive reinvention of how talent is sourced, trained and retained.
Solving the Talent Equation
To close the widening gap between industrial demand and workforce supply, organizations must act boldly and strategically. The path forward lies in rethinking the fundamentals of workforce development, starting with how we identify, develop and keep top talent.
Here are four critical strategies to solve the talent equation:
- Invest in Regional Talent Ecosystems
Public-private collaboration is essential. By aligning industry, education and government, regional talent hubs can develop scalable, localized pipelines. The U.S. Center for Advanced Manufacturing advocates for this model, and programs like Manufacturing USA Institutes are already showing impact in specialized fields like additive manufacturing and smart sensors.Strong regional talent strategies not only build resilience — they also anchor economic growth where it’s needed most.
- Accelerate Skills-Based Hiring
A degree is no longer the best predictor of job performance. Skills-based hiring unlocks previously overlooked talent pools, including veterans, mid-career changers and individuals from non-traditional backgrounds.By shifting the focus to what individuals can do, rather than how they got there, companies can broaden and diversify their talent pipelines.
- Leverage AI and Workforce Analytics
Modern workforce challenges require modern solutions. Advanced, AI-enabled platforms with predictive analytics and labor market intelligence identify emerging skill gaps and help locate in-demand talent. This way, they facilitate talent sourcing, proactive reskilling and smarter deployment of human capital.Data-informed decisions help organizations stay ahead of disruption, rather than scrambling to catch up.
- Rebrand Industrial Work
Finally, we need a new narrative. Today’s industrial careers — from Automotive to Energy — are high-tech, high-impact and mission-critical.
To attract the next generation, especially Gen Z, companies must tell a compelling story about the why behind these jobs — not just the what. According to ManpowerGroup’s Accelerating Adaptability report, employer value propositions that emphasize care and well-being for employees, as well as clear and stable career paths, are key to attracting in-demand Gen Z talent.
How Manpower Helps Industrial Clients Win in a Volatile Market
Turning strategy into execution requires a partner with the scale, agility and insight to deliver — especially in a labor market defined by rapid change and fierce competition. That’s where Manpower steps in.
As a global staffing leader placing 600,000 workers on assignment every day, Manpower delivers critical workforce solutions at unmatched scale. But it’s not just our numbers that set us apart — it’s our unrivaled access to talent and deep, trusted relationships with workers across industries.
Whether you’re building advanced manufacturing capacity or reshoring operations, we connect you to the skilled talent needed to execute with confidence. Across emerging and legacy sectors alike, we help clients build future-ready workforces through a complete suite of purpose-built strategies.
Here’s how we partner to attract, develop, manage and source talent in today’s evolving market:
- World-Class, AI-Enabled Tools
Our skill mapping and talent adjacency tools — the world’s largest workforce database with over one billion data points — give clients unmatched visibility into where talent and skillsets exist, enabling precise access to the right people in the right markets.
- Crafting an Employer Value Proposition
We help organizations define and communicate a compelling employer value proposition (EVP) that resonates with today’s workforce — strengthening talent attraction, engagement and retention.
- Academy for Advanced Manufacturing (AAM)
In partnership with Rockwell Automation, AAM reskills veterans and transitioning service members for roles in smart manufacturing, bridging the digital skills divide.
- Apprenticeship Programs
Our custom-built earn-and-learn pathways develop job-ready talent for diverse roles such as CNC machinists and EV battery technicians.
- MyPath®
Our flagship career acceleration platform connects workers to in-demand jobs and provides personalized upskilling, certifications and coaching, enhancing retention and productivity.
- Workforce Development as a Service (WDaaS)
This fully integrated solution combines talent strategy, training and deployment tailored to each client’s unique operational landscape.
- Mature Worker Programs
We design flexible, purpose-driven roles for experienced professionals, extending their careers while filling urgent gaps.
- Onsite Centers of Excellence
Our embedded hubs provide real-time workforce management, training and performance optimization right where our clients operate.
Together, these solutions form a dynamic ecosystem designed not just to manage disruption — but to lead confidently through it.
Who Will Build the Future: Invest in a Winning Workforce Strategy with a Best-in-Class Partner
As the era of industrial sovereignty takes hold, companies can no longer treat talent strategy as a secondary concern. It must sit alongside capital investment, supply chain security and innovation as a critical pillar of business success. The foundation of this new economy isn’t just where we build — it’s who builds it.
At Manpower, we help Industrial leaders turn workforce challenges into a competitive advantage. With unmatched access to talent, deep industry insight and purpose-built workforce strategies, we enable our clients to meet today’s labor demands and prepare for tomorrow’s opportunities.
The companies that act now — investing in sourcing, upskilling, reskilling and retaining their workforce — will be the ones driving the next era of industrial growth.
The future will be built by the talent you invest in now. Let’s build your future-ready workforce. Connect with Manpower to lead the way.
Isaac Hagen, author
Isaac Hagen, SVP of Emerging Industries at ManpowerGroup, brings 20+ years of talent strategy expertise. He partners with leaders in the Automotive, Energy, Materials and Real Estate sectors to tackle talent scarcity, AI and automation, and workforce transformation.