Investing in People: The True Competitive Advantage in Manufacturing
If people are a manufacturer’s most valuable asset, does the work environment reflect that belief? Keith Debold, Business Development Ambassador at Cambridge Air Solutions, recently addressed this critical question at the Midwest Missouri Association of Manufacturing trade show. His insights shed light on how workplace conditions directly impact employee retention, productivity, and overall business success.
The Manufacturing Workforce Crisis
Manufacturing is growing, yet labor shortages pose a major challenge. In Missouri alone, manufacturing jobs have increased by 14,000 since 2018, yet the state’s worker shortage index sits at 53—meaning there are only 53 workers available for every 100 job openings. With more employees leaving the workforce than entering, attracting and retaining talent is more critical than ever.
In an industry where high turnover can cost businesses six to nine months’ worth of an employee’s annual salary, creating an environment that workers want to stay in isn’t just a perk—it’s a necessity. If companies fail to prioritize employee well-being, workers will seek better conditions elsewhere.
Workplace Conditions Directly Impact Productivity
Environmental factors, particularly temperature, significantly affect manufacturing output. Studies from ASHRAE (American Society of Heating, Refrigeration, and Air-Conditioning Engineers) show that productivity drops 1% for every degree above 77°F. Real-world cases reinforce this. One major auto parts manufacturer saw production fall by 12% in June, 18% in July, and 25% in August due to excessive heat.
Beyond productivity, temperature extremes also compromise quality. When employees struggle in uncomfortable conditions, they are less focused, more prone to mistakes, and produce subpar work. Investing in better workplace conditions isn’t just about comfort—it directly impacts the bottom line.
Safety and Employee Retention Go Hand-in-Hand
High temperatures not only reduce productivity but also increase workplace injuries. OSHA recommends maintaining indoor temperatures around 80°F to minimize accidents. Yet, many facilities still operate in extreme conditions, putting workers at unnecessary risk.
One business owner shared how their 40% turnover rate was largely due to summer heat. Employees would attend orientation, take their first break, and leave—never returning. For companies struggling with retention, the question isn’t whether they can afford to invest in a healthier work environment but whether they can afford not to.
Rethinking ROI: The Cost of Doing Nothing
Manufacturers often assess return on investment (ROI) for capital expenditures, but few consider the "loss on investment" (LOI) from poor working conditions. Employee turnover, reduced efficiency, and quality control issues cost businesses millions each year. In contrast, incremental investments in better air circulation, ventilation, and cooling systems yield long-term financial and operational benefits.
One manufacturer reduced summer heat conditions in their plant through phased investments in ventilation and cooling. The result? Lower turnover, fewer quality issues, and a more engaged workforce. Even small steps, like increasing air movement and optimizing shift schedules, can significantly improve conditions.
The Future of Manufacturing Starts with Workplace Conditions
The manufacturing industry’s success hinges on its ability to attract and retain skilled workers. Creating a comfortable, safe, and productive environment isn’t just about compliance—it’s a strategic advantage. Companies that invest in their people will not only meet production goals but also position themselves as employers of choice in an increasingly competitive labor market.
Now is the time to rethink how workplace conditions impact your business. The question isn’t whether you can afford to make changes—it’s whether you can afford not to.
Let’s take the next step together:
- A GOOD next step – Let’s set up a time for Cambridge to come out and tour your facility.
- A BETTER next step – Let’s set up a time for you and your team to come to St. Louis and tour the Cambridge facility.
- The BEST next step – Let’s set up times for us to tour each other’s facilities!