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Introduction
The manufacturing sector is now witnessing a paradigm shift despite having the reputation of being reliant on traditional methods. The recent Ishwa Consulting survey highlights a concerning dip in appraisal pay hikes for senior personnel in the manufacturing sector. However, there is a contrasting trend where roles involving smart technology are experiencing a positive surge in salary increments.
As the industry evolves, so too do the skills and expertise required to thrive. The integration of smart manufacturing technologies, such as artificial intelligence (AI), robotics, and the Internet of Things (IoT), is transforming job roles and creating new opportunities. Senior professionals who embrace these technological advancements are not only staying relevant but also commanding higher salaries. This blog delves into the current state of the manufacturing sector, examines the value of experience and technological expertise, and explores how senior professionals can navigate this changing landscape to secure favourable appraisals.
A recent survey by Ishwa Consulting on the manufacturing sector appraisals in the years 2023 to 2024 indicates that: There is a drop in salary changes at the time of appraisals, where the niche roles are seeing a pay rise. This blog will focus on these contrasting trends and explore how tech-savvy seniors can secure better appraisals by adopting smart manufacturing technologies.
Section 1: The Shifting Landscape of Manufacturing
The manufacturing sector is undergoing a remarkable transformation, driven by the advent of new technologies and economic priorities. New products like semiconductors and drones and some other new initiatives are focusing more and more on energy efficiency and alternative energy; which has led to an evolution of the roles in manufacturing. These advancements are reshaping manufacturing jobs, placing a premium on roles that involve smart technologies and automation.
In today's manufacturing landscape, the integration of smart manufacturing technologies is paramount. Automation, robotics, and the Internet of Things (IoT) are not just buzzwords; they are the driving forces behind increased efficiency and productivity. As a result, jobs that require expertise in these areas are in high demand, leading to better salary prospects for those who possess the necessary skills.
Section 2: The Value of Experience and Technological Expertise
Despite the crucial role of experience, the Ishwa Consulting survey reveals a decline in salary increments for senior personnel in traditional manufacturing roles. The average salary raise was around 10.1% in the year 2024 which dropped from last year’s average, which was 11.5%. This trend starkly contrasts with the rising demand for roles requiring knowledge of Industry 4.0 technologies. Senior professionals who have spent years mastering traditional manufacturing processes now face the challenge of adapting to a rapidly evolving technological landscape.
The key to remaining competitive lies in upskilling. Senior manufacturing roles must evolve to incorporate expertise in AI, robotics, and IoT. By acquiring these skills, senior professionals can bridge the gap between traditional experience and modern technological requirements. This adaptability ensures they remain valuable assets to their organizations and positions them for better appraisals. This is because there is a higher increment for the roles which are involved in advanced technical skills due to the rise in the automation and smart manufacturing technologies.
Section 3: The Rise of Tech-Driven Senior Roles
In this survey, we also noticed that there were significant differences in the appraisal levels based on seniority and other factors. Roles that combine seniority with technological expertise are witnessing a notable rise in salary increments. Senior professionals who have embraced smart manufacturing technologies find themselves in a favourable position. Their ability to navigate and implement advanced technologies not only enhances their value but also leads to substantial pay hikes.
There were some variations within the various kinds of roles as well:
(i) Core engineering roles observed a decline of 9% as compared to 11% in the year 2023. However, these specialized roles which are driven by automation and smart manufacturing technologies are observing an upward trend. This also highlights a necessity for individuals in the manufacturing industry to continue to upskill themselves in contemporary and ever-growing areas if they are expecting a higher salary.
(ii) The business roles which also include the ones in management, sales and Human Resources have seen an average appraisal pay hike of 7% as compared to 8.5% last year.
Consider the case of Rajesh Kumar, a seasoned professional in the automotive manufacturing sector. By enrolling in courses on AI and robotics, Rajesh transitioned into a tech-driven role. His efforts paid off with a significant salary increment and increased responsibilities. This example underscores the importance of continuous learning and adapting to technological advancements.
Section 4: Upskilling: A Necessity for Senior Professionals
For senior professionals in manufacturing, upskilling is no longer an option but a necessity. Numerous training programs and courses are available to help them stay updated with the latest technological advancements. Institutes like the Indian Institute of Technology (IIT) and the National Institute of Industrial Engineering (NITIE) offer specialized programs in Industry 4.0 technologies.
The senior management saw a 9% drop in appraisal salary hikes from 10% during the last year. Whereas for the middle management, the average was a little higher, which was 11% as compared to 13% in the year 2023.
Continuous learning brings numerous benefits. It enhances job security, opens up new career opportunities, and ensures senior professionals remain relevant in a tech-driven manufacturing landscape. By investing in upskilling, senior manufacturing roles can align themselves with the industry's evolving demands and secure better appraisals.
Section 5: Regional and Sector Variations
Salary increments within India's manufacturing sector vary significantly across regions and sectors. In regions like Bangalore and Pune, where technology integration is more advanced, senior professionals are witnessing better pay hikes. These regions have a higher concentration of tech-savvy seniors who are driving the adoption of smart manufacturing technologies.
The regional variations, such as the manufacturing hubs in the western and southern corners of the country based on the survey results, are displaying a higher average increase which are up to 12% as compared to the northern and the eastern regions which are around 7%. Next, the automotive sector has also displayed a higher trend which is at 11% hikes on average.
Sectors such as automotive manufacturing have particularly benefited from tech integration. The incorporation of automation and robotics has led to increased efficiency and productivity, resulting in higher salary increments for senior roles. These variations highlight the importance of geographical and sectoral factors in determining salary prospects.
Section 6: Preparing for the Future
To foster an environment that values technological skills and innovation, manufacturing firms must adopt a forward-thinking approach. Investing in tech-savvy seniors and encouraging continuous learning can drive industry changes and ensure long-term success. To foster a future-ready organization, companies need to offer incentives for employees who are developing and utilizing upcoming technology skills which are aligned with Industry 4.0 technologies.
By prioritizing the development of smart manufacturing technologies, organizations can enhance their competitiveness and secure a brighter future. This proactive approach not only benefits the company but also ensures that senior professionals remain valuable contributors to the industry's growth.
There is a huge, undeniable demand for skilled professionals in the manufacturing industry which is expected to grow even more over the next few years.
“The survey highlights a dip in average appraisals for FY 23–24; however, the need for advanced technical skills in specialized domains is driving growth forward. With rising digitisation, businesses must focus on learning and development and utilize AI-driven insights for talent upskilling,” - said a senior industry expert when asked about their future recommendations.
Conclusion
The manufacturing sector is at a crossroads, where traditional roles and technological advancements intersect. To secure favourable appraisals, senior professionals must embrace smart manufacturing technologies and continuously upskill. The rise of tech-driven senior roles offers a promising path for those willing to adapt and evolve.
Manufacturing firms, on their part, should recognize the importance of technological expertise and invest in their workforce accordingly. By fostering an environment that values innovation and supports continuous learning, companies can ensure long-term success and industry leadership.
Tech-savvy seniors, equipped with the knowledge of Industry 4.0 technologies, are not just the future of manufacturing but also the key to unlocking better appraisals and enhanced career prospects. The journey to embracing these changes begins today, with a commitment to learning, adaptation, and a forward-thinking approach to manufacturing excellence.
In this era of rapid technological evolution, the role of tech-savvy seniors is more crucial than ever. By embracing smart manufacturing technologies and continuously advancing their skills, senior professionals can secure favourable appraisals and drive the industry forward. It is a call to action for both individuals and companies to prioritize technological advancements, ensuring sustained growth and success in the manufacturing sector.
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