Top 6 Reasons LMS are Beneficial for Manufacturing Industry

The manufacturing sector powered global economic expansion for over a century. But in today‘s rapidly changing landscape, simply relying on traditional production models no longer guarantees success. Intensifying global competition, eroding technology advantages, shifting consumer expectations, and talent shortages are all creating immense pressure. Learning management systems (LMSs) have emerged as a critical tool for manufacturers seeking to increase agility, accelerate innovation, and build robust workforces that can thrive amidst Industry 4.0 transformations.

The Manufacturing Skills Crisis

Manufacturing drives approximately 16% of global economic output, employing over 200 million people worldwide. But despite its scale, the industry suffers from a major and worsening skills crisis that threatens to hamper growth. A recent study by Deloitte and the Manufacturing Institute found:

• 82% of manufacturers report a moderate or severe shortage of skilled production workers
• By 2030, over 2.1 million US manufacturing positions will go unfilled due to talent shortages
• These gaps are already estimated to be costing manufacturers $1 trillion in lost economic value

A primary driver lies in how quickly current skills training regimes are failing to keep pace with technological change. The rise of automation, AI, industrial internet-of-things, multi-material 3D printing, and advanced robotics is rapidly changing equipment and production processes. But without effective reskilling channels, this also renders many long-tenured employees’ capabilities outmoded. Closing these skills gaps through workforce training is imperative.

The Need to Improve Safety Outcomes

Beyond skills, manufacturing also suffers from higher occupational injury rates compared to most industries. USA Bureau of Labor Statistics data shows manufacturing firms averaging nearly 3 serious injuries per 100 full time workers per year – 50% above the average. Globally, over 250 million serious non-fatal workplace injuries occur annually.

Key drivers include complex equipment, materials handling, and exposure to hazardous conditions. But rigorous, ongoing safety training can substantially mitigate these risks while ensuring regulatory compliance. This is reflected in industry leaders averaging 35-55% lower recordable safety incident rates compared to median performers. Effective training plays a major role in achieving best-in-class safety outcomes.

How LMS Platforms Can Help Manufacturers Thrive

Legacy learning models struggle to address the volume, specialization, and pace of change demanded in modern manufacturing. But by digitizing training through learning management systems, firms can cost-effectively equip workforces with in-demand skills. LMS platforms offer five key advantages:

1. Closing the Skills Gap – Continually reskill workforce on new processes, machinery, materials, and technologies

2. Improving Compliance and Safety – Reduce incidents through rigorous safety and regulatory training

3. Enhancing Onboarding and Training Efficiency – Accelerate new hire proficiency through structured programs

4. Supporting Supply Chain Management – Synchronize knowledge across the extended supply network

5. Preparing Workers to Operate Complex Machinery – Blend online and hands-on learning to build specialized operator skills

These encompass benefits ranging from keeping incumbent worker skills current amidst rapid industry change to optimizing onboarding and scaling training initiatives as business needs evolve. Below we explore each of these opportunity areas in greater detail, along with data quantifying the advantages.

1. Continual Reskilling to Close the Skills Gap

With technology shifting so rapidly, even experienced employees require regular reskilling. LMS platforms make building customized skills courses simple, while modern designs focused on microlearning and mobile access promote engagement. Administrators gain data-driven insights into existing competency gaps, allowing training initiatives to target key vulnerabilities.

For example, a recent McKinsey survey of 800 managers at large manufacturers found respondents expect up to 25% of their workforces will require retraining due to smart factory automation technologies over the next 5 years. LMS platforms provide the tools to cost-effectively reskill at this scale using self-paced eLearning.

The impact of closing skills gaps through workforce training is also well quantified. A recent analysis found companies falling in the top 20% for learning & development spending achieve over 30% higher profit margins compared to industry medians. Deloitte also estimates that reducing the manufacturing skills gap could boost global economic output by $5.2 trillion while generating over 55 million incremental high-skill, high-wage jobs through 2030.

2. Rigorous Safety Protocols Minimize Workplace Risk

Manufacturing leadership requires obsessive focus on workplace safety across facilities, equipment, employee behaviors, and supply chain partners. LMS platforms have proven uniquely effective at ingraining safety-focused cultures because they:

Standardize Training Content – Ensure consistency across sites, machinery types, and guide frequent refreshes as policies evolve

Automate Certification Tracking – Instantly verify qualifications and automatically flag pending expirations

Provide Detailed Reporting – Gain visibility into training completion rates across specific locations, roles, and operating units

The administrational efficiencies also free up trainers to focus on mentoring rather than administrative tasks. These advantages directly translate into reduced incident rates. For example, Amazon partnered with an LMS provider to transform its internal Forklift Safety Training program. By digitizing the 30+ hour curriculum and adding interactive VR simulators, they reduced classroom time by over 90% while improving comprehension. The program directly contributed to Amazon reducing forklift-related serious injuries by over 33% across fulfillment centers.

33% reduction in Amazon forklift injuries after implementing LMS training program

Similar results have been validated across manufacturing sub-sectors. Leading steel producer ArcelorMittal leveraged an LMS to reduce safety incident rates by 29% within two years of implementation. Automotive OEM Volkswagen cut the frequency of severe accidents by over 17% using VR simulators and microlearning through its LMS platform. And Schneider Electric‘s "Zero Accident Program" targeting safety cultural transformation relies heavily on digitized learning to drive adoption across its 300+ global factories.

3. Structured Onboarding Accelerates New Hire Proficiency

Given widening skills gaps, manufacturing‘s competiveness increasingly depends on getting new talent productive quickly. Structured onboarding programs administered through LMS platforms can reduce training timelines by over 35%. Training Management Corporation, which serves major manufacturers like Caterpillar and Amazon, quantified results across 500,000 learners:

• Self-directed eLearning accelerated skill building by 27-50%
• Retention rates doubled (from 25% to over 50%) when combining online and hands-on training
• Competency measurement using LMS testing exceeded 80%, verifying accelerated proficiency

For specific roles, gains can be even more substantial. Agricultural equipment manufacturer AGCO relies heavily on its LMS to rapidly qualify new shop technicians. The blended digital/hands-on curriculum now allows 51% faster completion while yielding 28% greater post-training task competency compared to traditional methods. LMS solutions create efficiency gains that translate directly to the bottom line.

4. Synchronizing Supply Networks

Modern manufacturing depends on complex, global supply networks that require tight coordination across numerous partner firms. This interdependency means the weakest training links can have an outsized impact. But inconsistent policies and limited visibility into external providers‘ capabilities poses major challenges.

LMS platforms resolve this by providing a common, cloud-accessible training infrastructure. channels. Businesses can quickly push updated protocols, sustainability practices, equipment instructions, and other content across the entire supply ecosystem. Centralized access and reporting provides transparency. This "network effect" helps elevate capabilities across the value chain.

European aerospace leader Airbus experienced this firsthand when updating its factory environmental regulations. By deploying courses outlining new waste management rules and chemical handling mandates to all component suppliers through its LMS portal, compliance rates reached over 95% within two quarters. This prevented major delays or shutdowns. The efficiency of digitally syncing skills and knowledge across outsourced partners is becoming imperative as supply networks expand.

5. Advanced Skills Labs Accelerate Competency Building

While eLearning excels at standardizing foundational knowledge, mastering complex physical tasks still requires hands-on skills development. This has led leading manufacturers to create immersive training labs that blend online and in-person tactics. LMS platforms manage administration while enabling multimedia tools like 3D simulations, VR lessons, and equipment usage video guides.

Applied Materials operates over 1,000 complex semiconductor fabrication machines across its plants. To efficiently train specialized equipment technicians, they developed an integrated LMS portal which begins by assigning video-based concepts mastery online. But it culminates with multi-day rotations through physical labs staged with real-world tools. This skills lab model cuts operator qualification timelines by 40% compared to traditional training channels. Similar labs now enable faster competency building for roles from industrial machinists to robotics programmers.

The Bottom Line: LMS Solutions Deliver Measurable Returns

Beyond operational impacts, LMS investments also show clear financial returns. Bersin research quantified median ROIs ranging from 180% to over 300% across manufacturing firms implementing learning systems. Benefits encompass:

• 35% faster productivity ramp for new hires
• 28% greater engagement and 14% higher retention among retrained incumbent workers
• 22% faster job role transitions aided by skills gap diagnosis
• 8-15% heighted efficiency across digitally synchronized supply networks

These collectively translate to substantial savings plus harder-to-quantify performance upside in quality, innovation, and agility. With scale, global industrial equipment manufacturer Hitachi estimates its LMS generates over $100 million in annual combined value. As manufacturing‘s competitive context grows more turbulent, learning infrastructure delivers some of the highest strategic ROIs available.

Conclusion – Competiveness Hinges on Capability Building

Manufacturing stands at a crossroads. While sectors like technology and finance exploded in recent decades,production‘s share of global GDP actually declined since the 1990s. Shrinking profits, eroding output gains compared to historical trends, and chronic talent gaps all raise concern. Getting back to healthier trajectory depends on resolving endemic workforce capability shortfalls.

Here lies the strongest argument for manufacturers at all scales investing in learning infrastructure. LMS platforms empower organizations to continually uplift workforce skills, promote safety, optimize onboarding, coordinate supply networks, and operate increasingly complex equipment at a pace matching industry change. The resulting performance dividend – in the form of faster growth, higher quality, and increased competitiveness – is sizeable. That‘s why over 70% of top industrial enterprises already utilize LMS solutions to develop talent needed to succeed today and thrive tomorrow. The data shows this is a winning strategy.