Skilled Labour Shortage in Machine Tool Manufacturing

In an exclusive interview with Industry Outlook Magazine, Jhimli Ghosh, Head – HR at Lokesh Machines, provides an overview of the factors leading to skilled labour shortages in the machine tool manufacturing industry and offers solutions to bridge the skill gap while making sure the workforce is ready for the future. She has a record of making waves in the industry for more than 20 years.
 
According to her, industries can tackle labour shortage by,

-Skill development initiatives by the government to educate the underserved regions.

-Incorporating soft skill training with existing curriculum.

-Leveraging technologies like AR/VR/AI to compensate for the lowering numbers.

With rising demand for advanced machining, how do you view India's skilled labor availability in machine tool manufacturing, particularly regarding gaps in automation and Industry 4.0 adoption?

One of the primary reasons for this skill gap is the disconnect between industry and academia. Many technical institutions continue to follow outdated curricula that do not align with modern industrial requirements. There is also limited exposure to Industry 4.0 technologies, such as automation, robotics, and AI, both in academia and within many industrial setups. This results in graduates who are not equipped with the necessary practical knowledge to contribute effectively in the workplace.

Another challenge is the concentration of industrial hubs in specific regions. While some parts of the country have advanced manufacturing clusters that have embraced Industry 4.0, many other areas remain underdeveloped, with limited access to training facilities and modern manufacturing technologies. This uneven distribution of industrial growth makes it difficult to develop a nationwide skilled workforce.

Furthermore, there is a lack of structured apprenticeship and internship programs. Many industries do not invest enough in training fresh talent, and students have limited opportunities for hands-on learning. Without customized training programs tailored to industry needs, the workforce remains unprepared for the latest technological advancements in machine tools and manufacturing.

The gap is further widened by insufficient emphasis on digital skills. As the industry moves towards smart manufacturing, workers need to be trained in automation, data analytics, and digital operations. However, most technical education programs do not focus on these critical areas, leaving many graduates without the skills necessary to thrive in a rapidly evolving industry.

To bridge this gap, government intervention and policy support are essential. There is a need for stronger policies that encourage skill development in emerging technologies. Financial incentives for companies investing in workforce training can help drive participation from both industries and educational institutions. Additionally, expanding government-led skill development initiatives to underserved regions can help create a more balanced and well-trained workforce.

Despite numerous technical institutions, why does a significant gap remain between academic training and the practical skills required on shop floors in machine tool manufacturing?

The skill gap in the Indian machine tool industry persists largely due to the overemphasis on theoretical knowledge over practical training. Students graduate with strong academic records but lack hands-on experience, making them unprepared for the real-world demands of manufacturing and engineering. This gap is further widened by outdated curricula, limited exposure to real-world apprenticeship programs, and insufficient industry collaborations.

One of the biggest concerns is the use of outdated equipment in training institutes. Many technical colleges and vocational training centers do not have access to modern machinery and tools that are currently used in the industry. As a result, fresh graduates often struggle when placed in actual manufacturing environments. Recruiters frequently encounter candidates who have been trained on obsolete equipment, making them ill-equipped to handle modern, technologically advanced machinery.

Another critical issue is the lack of well-trained faculty with practical industry experience. Many instructors do not have firsthand exposure to working in the industry, limiting their ability to teach relevant, hands-on skills. Reforming faculty qualifications by ensuring that educators have industry experience before joining academia could significantly improve teaching quality and training methodologies. Faculty development programs focusing on Industry 4.0 technologies and modern manufacturing techniques should also be introduced to bridge this gap.

Additionally, there is a lack of emphasis on soft skills in current training modules. Communication, problem-solving, teamwork, and leadership skills are critical for career success but are often overlooked in technical education. Incorporating soft skill training into the curriculum will enhance employability and better prepare students for collaborative work environments.

How effective are industry partnerships under skill initiatives like PMKVY in addressing the labor shortage? Are there standout models driving measurable improvement?

The PMKVY initiative is doing commendable work. They have significantly contributed to the industry by providing skill training aligned with industry requirements. The training programs they offer are industry-based, designed to equip candidates with the necessary skills. However, despite their efforts, the training remains limited to specific sectors.

One of the key strengths of PMKK is its ability to prepare a workforce that is job-ready through various models of standardized training. They also play a role in bridging the gap between urban and rural talent. However, there remains a disconnect between expectations and outcomes. The primary issue is the duration of training, which is relatively short. Industries expect candidates to be immediately job-ready, but in many cases, even well-trained candidates struggle to perform when they enter the workforce. This leads to frustration on both sides—the candidate loses confidence, and the industry loses motivation to hire from these programs.

To address this, the duration of training needs to be reconsidered. If trainees are given more time to develop their skills before entering the workforce, it would benefit the industry, the candidates, and the training institutes. Another significant challenge is the lack of advanced skill certifications. While candidates are trained theoretically and on specific equipment, the equipment used is often outdated. Integrating certification courses—such as those in robotics, artificial intelligence, or other emerging technologies—into the curriculum would add immense value.

Another issue is the lack of partnerships between industries and training institutes. Many companies do not actively collaborate with these institutes, leading to a gap in practical exposure. Additionally, retention of trained candidates remains a challenge. Many trainees leave their jobs shortly after joining because they do not see a clear career growth path. In training institutes, they are often presented with an idealized version of job prospects, but when they enter the workforce, reality does not always match those expectations. This mismatch leads to dissatisfaction and high attrition rates.  

For this system to be truly effective, a collaborative effort is needed between industries and training institutes. Institutes should provide realistic expectations to trainees while industries should work towards creating engaging and rewarding work environments. Retaining skilled workers is crucial for both industry growth and the long-term success of training programs. Currently, when industries hire these candidates, they anticipate a short tenure of one or two years, which affects their willingness to invest in long-term career development for them. If training periods are extended and government interventions are introduced to support this process, it could create a more sustainable model where trained candidates stay longer, contribute effectively, and grow within their roles.

Have post-pandemic workforce shifts, such as increased preference for non-manufacturing jobs, exacerbated the talent shortage in machine tool manufacturing?

The manufacturing industry has been profoundly affected in the aftermath of COVID-19, and in many ways, the situation has worsened. The pandemic introduced a new perspective on work, particularly the idea of flexible working hours and remote jobs. Many people, especially the younger generation, have realized that they can work from home or outside a traditional office setting and still earn a stable income. However, this flexibility is simply not possible in manufacturing. Workers need to be physically present on the shop floor, operating machinery and managing production processes. Unlike in IT, healthcare, or other service industries where remote work is feasible, manufacturing requires hands-on labor, which has made it less appealing to job seekers post-pandemic.

One of the biggest shifts has been in young people’s career preferences. Many now seek jobs that are less physically demanding and offer more convenience. Manufacturing, in contrast, remains a labor-intensive industry where hard work, discipline, and commitment are essential. There are no shortcuts—workers must be fully engaged to produce high-quality output. With other industries offering easier ways to earn money, fewer young people are showing interest in manufacturing careers or enrolling in training programs related to the field.

This decline in interest has created a significant gap in skilled manpower. Without a steady influx of trained workers, production efficiency has suffered. Quality control, maintenance, and overall operations have been impacted, leading to higher costs as companies are forced to outsource tasks. The shortage of skilled labor has also resulted in production bottlenecks and safety concerns. Additionally, customer satisfaction has taken a hit, as companies struggle to meet demand, maintain high product quality, and deliver on time.

What strategies should manufacturers adopt to develop a future-ready workforce? Can emerging technologies like AR/VR training or AI-based skill assessments help address the labor shortage?

Augmented reality (AR), virtual reality (VR), and artificial intelligence (AI) are powerful tools that can help address labor shortages in the manufacturing industry. These technologies can create realistic simulations that allow workers to train and learn in controlled environments, where they can make mistakes without real-world consequences. Such simulations are highly cost-effective, as they eliminate the risks associated with on-the-job training and reduce the resources required for traditional hands-on learning.   

Through simulated scenarios, employees can retrain, relearn, and reskill efficiently, gaining practical experience without disrupting production processes. AI, in particular, can play a crucial role by assessing an employee’s skill level, identifying areas where they are lacking, and tailoring training programs to help them improve. This personalized approach allows workers to upskill faster, reducing the need for months-long courses and improving overall workforce retention.   

Additionally, these technologies offer scalability, meaning training programs can be implemented simultaneously across multiple locations, making it easier for companies to close skill gaps on a larger scale. By fostering an internal environment that promotes continuous learning and development, AR, VR, and AI can help workers acquire the necessary skills more quickly and effectively. Implementing these tools will not only streamline the training process but also ensure that employees are better prepared and more suited for their roles, ultimately improving productivity and efficiency in the industry.