Prime Highlights:
- Honeywell and Caterpillar are using new technologies to tackle workforce challenges and skill shortages, helping workers focus on more complex and safer tasks.
- Executives emphasize the importance of training and upskilling employees to adapt to connected manufacturing systems and improve productivity.
Key Facts:
- Nearly 60% of U.S. manufacturers report difficulty in hiring and retaining employees, with the average tenure dropping from 5.9 years in 2014 to 4.9 years in 2024.
- A Deloitte survey found that only 29% of large manufacturing companies use advanced technologies in their factories, and just 25% have adopted them on a large scale.
Key Background:
Honeywell and Caterpillar are looking at ways technology can help address workforce challenges and skill shortages in manufacturing. At the recent Fortune Brainstorm Tech conference in Park City, Utah, executives from both companies discussed how new tools are changing job roles and improving productivity.
Honeywell reports that about 20% of its software code is now created using AI coding tools like GitHub Copilot. However, the company clarifies that this does not reduce the workforce; instead, it allows software developers to focus on more complex tasks and spend additional time working directly with customers. According to Suresh Venkatarayalu, CTO of Honeywell Connected Enterprise, the skills developers need are changing, allowing them to focus on more advanced problems instead of routine coding.
Automation has been part of manufacturing for a long time, helping move goods, check quality, and predict when machines need maintenance. Technology is also used today to assist in managing the inventory, predicting demand, and performing day-to-day activities in the office. Nonetheless, a survey of 600 large manufacturing companies conducted by Deloitte revealed that only 29 percent of this group of companies were utilizing the technologies in their factories, and only 25 percent had implemented advanced tools on a large scale.
Caterpillar is also actively integrating AI and technology into its operations. Jaime Mineart, who is the SVP and CTO of Caterpillar, claimed that it is important to train employees to interact with AI and robotics. She indicated that change management is of high significance, and the emphasis was on training the employees to enable them to exploit the integrated manufacturing processes. Caterpillar has pledged $100 million over five years to develop its workforce and improve skills in new technologies.
Honeywell and Caterpillar see AI as a solution to both labor shortages and skills gaps. Many U.S. manufacturers are finding it hard to hire and keep employees, with nearly 60% saying this is their biggest problem. At the same time, the average time workers stay in manufacturing jobs has dropped from 5.9 years in 2014 to 4.9 years in 2024. Honeywell and Caterpillar are using automation to help workers move away from repetitive or risky tasks, making jobs safer and more efficient.
Read Also : Apple Takes Full Chip Control in iPhone Air, Boosts AI Power and Efficiency
