Talent Challenges in the Industrial Sector By: Lina Triesch. HR & Recruiting Consultant, Bright Box HR & Recruiting
- Lina Triesch
- Jan 11
- 4 min read
For some time now, I have observed a concerning and growing pattern across industrial
settings such as recycling, construction, manufacturing, and other sectors that depend
year-round on blue-collar labor. These are roles that require physical effort—laborers,
warehouse employees, equipment operators, and others who work with their hands, sweat
through long summers, and endure cold or demanding conditions during the winter months.
Historically, these positions were easier to fill. Roughly ten to fifteen years ago, industrial
employers could rely on a steady and healthy flow of applications for these roles. Hiring teams could review multiple candidates, be selective, and build their workforce from a relatively large talent pool. Attendance, performance, and discipline were often emphasized as non-negotiable expectations, and employers generally held the upper hand in the hiring
process. Over time, that dynamic has shifted.
As the volume of applicants declined, employers began struggling to find the same quantity of candidates to choose from. As labor became harder to source, organizations were forced to rethink long-standing hiring and retention practices. The balance of power gradually shifted toward the applicant, giving workers more leverage in wage negotiations. In many cases, companies had no choice but to increase wages year after year simply to remain competitive.
What was once a 25- to 50-cent annual raise became $1, $2, or even $5 per hour increases,
depending on the situation. To offset these rising labor costs, industrial organizations often
had to cut expenses in other areas.
I am not an economist, but from an HR and operational perspective, the impact has been
undeniable. Human resources teams across industrial sectors face this challenge daily, even
as demand for industrial labor continues without slowing. I vividly remember one of the first
moments this shift became real to me: an employee requesting a raise after seeing a fast-food restaurant across the street advertising higher hourly wages that we were not able to offer at the time. That moment was a turning point.
Shortly after, I began noticing fewer younger applicants entering industrial roles. This was not
an isolated observation—it became a common theme in conversations with colleagues and
industry leaders. There was a growing consensus that younger generations were simply less
interested in physically demanding work. Technology careers, many of which require less
than a four-year degree, offered higher starting wages, faster entry, and cleaner working
environments. With a certificate or short-term training, young professionals could enter the
workforce earning salaries in the $50,000 to $60,000 range.
Then COVID-19 accelerated everything, particularly when the idea of working from home
became widely adopted.
Remote work became normalized, and many workers experienced an entirely new level of
flexibility and work-life balance. At the same time, the cost of living increased significantly,
adding further pressure on wages. For many, the idea of returning to physically demanding,
on-site work became less attractive when compared to remote or hybrid alternatives. These
combined factors created a widening gap in the industrial workforce: a smaller talent pool,
higher pay expectations, employees covering multiple roles, and a declining interest in
trade-based careers.
As a result, industrial employers are no longer competing only within their own industries.
They are now competing with logistics companies, warehouses, retail, construction firms, and
even service-sector employers for the same limited pool of workers. In this environment,
retention becomes just as critical as recruitment—if not more so.
From my experience, successful retention in the industrial sector comes down to three core
areas: company culture, competitive compensation, and meaningful benefits. While these
may sound like obvious fundamentals, non-monetary rewards and workplace culture were not emphasized in the same way they are in today’s workforce environment.
Employers have also had to expand how and where they recruit. Talent acquisition strategies
now include partnerships with trade institutes, halfway houses, recovery, and sober-living
programs, city staffing events, radio announcements, and broader use of platforms such as
Indeed, and even Craigslist. While these channels often require patience—and many
candidates may not be the right fit—employers are often surprised by the quality of talent they discover when they are willing to teach skills and give people an opportunity to prove
themselves.
One strategy that proved effective was investing in internal training programs for employees
willing to learn new skills. When talent was no longer readily available externally—or when it
became unaffordable—we had to create it internally. Cross-training employees helped
address scheduling gaps and operational bottlenecks while giving workers a sense of growth
and value. Partnering with trade schools and workforce education centers allowed us to bring in entry-level talent and develop them over time. In addition, competitive benefit
packages—beyond wages alone—became essential, including flexibility that allowed
employees to better balance work and personal life.
In many organizations, simple but intentional efforts—such as team meals, barbecues,
breakfast tacos, or food trucks—have helped reduce tension and create moments of
connection in physically demanding environments. These gestures may seem small, but they
reinforce a sense of belonging.
At the core of retention is trust. Employees are more likely to stay when they feel their
workplace is fair, consistent, and respectful—where expectations are clear, leadership is
compassionate, and effort is recognized. Performance still matters, but retention requires a
delicate balance between operational demands and recognizing employees as human beings
with real lives, personal responsibilities, and limits.
Employees who receive in-house training and development opportunities often stay longer
because they see a future within the organization. They recognize that they are learning,
growing, and advancing under leadership that believes in them. These opportunities are not
always available elsewhere, especially in industrial settings, and they create loyalty that
compensation alone cannot buy.
For leaders in the industrial sector, the message is clear: identify your talent, invest in it, and
be willing to adapt. Retention strategies must evolve, and outdated systems that no longer
align with today’s workforce expectations must be reconsidered.
In addition, employers and industry leaders must speak up—to city councils, chambers of
commerce, workforce boards, and policymakers—to raise awareness of the challenges facing
the industrial labor market. While there is significant emphasis on technology and artificial
intelligence careers, many essential roles cannot be replaced by AI anytime soon. Trades
such as welding, machine operation, HVAC, electrical work, and other industrial careers must
remain visible, valued, and supported if we want to sustain a healthy and resilient industrial
workforce in the years ahead.
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