Recently, Human Element Managing Partner, Ben Lorenz, and Shopware President and GM, Jason Nyhus, got together to chat about the state of tech talent in today’s market. We recorded their conversation, which you can watch in the video above. This blog post puts all their thoughts together about what’s happened so far, and if it has opened up an exciting opportunity for manufacturers who are ready to commit to building out their own tech teams.
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The tech industry has seen a wave of layoffs in recent years, leaving many skilled professionals searching for their next opportunity. Meanwhile, manufacturers across the U.S. are eager to modernize their operations, but they struggle to find the right tech talent to drive digital transformation. This shift presents a unique opportunity: could former tech professionals be the missing piece in manufacturing’s digital evolution?
The State of Tech Jobs and Manufacturing’s Growing Need
The global tech job market has shrunk significantly—down about 65% from its peak just a few years ago. Large software companies have faced pressure from investors to prioritize efficiency over expansion, leading to downsizing across the industry. Meanwhile, manufacturers are realizing that digital transformation is no longer optional—it’s critical to staying competitive.
As manufacturers look to modernize their operations with eCommerce platforms, customer relationship management (CRM) systems, and enterprise resource planning (ERP) software, they need tech-savvy professionals who can guide them through this transformation. But many struggle to recruit this type of talent, often due to outdated hiring expectations or a lack of awareness of the available workforce.
A Shift in Perspective: Tech Professionals in Manufacturing
For many tech workers, the idea of transitioning into manufacturing might seem unfamiliar. However, the skills they bring—understanding software systems, data analytics, process automation, and digital strategy—are exactly what manufacturers need.
While manufacturing may not be the first industry that comes to mind for software developers or IT professionals looking for new roles, the opportunity is vast. Many manufacturing businesses generate hundreds of millions in revenue yet still rely on outdated digital systems. Simple upgrades, like shifting from manual email lists to automated marketing campaigns or optimizing eCommerce platforms, can have a significant impact.
Overcoming the Remote Work Divide
One challenge in this transition is the difference in work environments. Many tech professionals are accustomed to remote work, while manufacturers often require employees to be on-site. This cultural divide means that manufacturers will have to learn to accommodate remote or fractional (part-time) tech employees while maintaining their traditional workforce.
By embracing hybrid work models, manufacturers can attract tech professionals without forcing them into rigid work structures. Likewise, tech professionals looking to break into manufacturing should be prepared for an environment that operates differently from the fast-paced, VC-backed software world.
How Can Tech Professionals Connect with Manufacturers?
Manufacturers aren’t always actively recruiting for digital transformation roles, so tech professionals may need to take a proactive approach. Some ways to connect with potential employers include:
- Attending Industry Events – Many states have manufacturers’ associations that hold annual conventions or frequent meetings. (For example, in Michigan, the Michigan Manufacturers Association holds an annual operations conference as well as smaller meetings focused on workforce issues throughout the year.) These events provide opportunities to network with executives and decision-makers.
- Highlighting Transferable Skills – Understanding ERP, CRM, and eCommerce platforms can make a former tech worker an invaluable asset to a manufacturer looking to modernize.
- Educating Manufacturers on Digital Transformation – Many manufacturers recognize the need for technology but don’t know where to start. Tech professionals can position themselves as guides in this process.
How Can Manufacturers Attract Tech Talent?
On the other side of the equation, manufacturers need to rethink how they position themselves to potential tech hires. Instead of simply listing IT job descriptions, they should frame their digital transformation efforts as exciting, impactful challenges.
Tech professionals thrive on solving complex problems. If a manufacturer presents its digital needs as a chance to overhaul processes, implement automation, and drive measurable improvements, they’ll have a better chance of attracting the right candidates.
Additionally, manufacturers need to adjust their expectations around compensation and workplace flexibility. Many experienced tech professionals command higher salaries than traditional IT staff, and many expect some degree of remote work. Understanding the return on investment (ROI) of digital transformation will help manufacturers see these hires as long-term assets rather than short-term costs.
The Balance Between Innovation and Core Business
One cautionary note for manufacturers is not to overextend into the tech world. Some companies, excited by new digital opportunities, try to reinvent themselves as software firms rather than focusing on their core strengths. The key is to integrate tech strategically—leveraging platforms like ERP, CRM, and eCommerce solutions—rather than attempting to build complex custom systems in-house.
Similarly, tech professionals transitioning into manufacturing should remember they’re not joining a software company. Their role is to enhance digital processes, not create new technology from scratch. Finding this balance is essential for long-term success.
Conclusion: A Moment of Opportunity
For manufacturers, this moment presents an unprecedented chance to access a pool of highly skilled tech talent. For tech professionals, it’s an opportunity to apply their expertise in an industry that’s ripe for transformation. By bridging this gap, both sides stand to gain—leading to stronger, more digitally enabled manufacturing businesses and new career paths for displaced tech workers.
As companies like Shopware and Human Element continue to work with manufacturers on digital transformation, the message is clear: the time for this shift is now.
