Economic Uncertainty, AI, and Talent Shortages Reshape Hiring Practices
The plastics industry faces hiring challenges driven by talent shortages, economic uncertainty, and rapid technological advancements. Industry experts highlight the importance of addressing the skilled labor gap, leveraging AI tools, and fostering positive workplace cultures to attract and retain top talent.
At a Glance
- AI tools accelerate candidate screening but talent shortages remain the dominant hiring challenge.
- Skilled trades roles see high demand while retirements drain institutional knowledge from industry.
- Companies prioritize workplace culture and hybrid skill sets to attract top engineering talent.
The plastics industry is navigating a complex hiring landscape shaped by economic uncertainty, talent shortages, and the rapid adoption of artificial intelligence (AI). These factors are driving significant shifts in recruitment strategies and workforce development, as companies grapple with challenges ranging from skilled labor gaps to the evolving demands of automation.
Industry experts emphasize that while AI is revolutionizing recruitment processes, the persistent shortage of qualified talent remains the dominant issue affecting hiring trends
This year, hiring has been tempered by a combination of geopolitical risks, supply chain instability, and market volatility. Todd Garrison, of Targeted Recruiting Group, highlighted how these factors are influencing hiring decisions. “The high level of uncertainty, combined with an overall shortage of talent and the onset of AI, are the primary trends affecting hiring this year,” Garrison told PlasticsToday. He noted that fluctuations in resin pricing and feedstock costs have led some companies to delay capital projects and associated hiring, while mergers and acquisitions have created both opportunities and challenges in the talent market.
Garrison also pointed to a shift in hiring priorities, with companies focusing more on replacing turnover and upgrading underperforming employees rather than creating new roles tied to growth strategies. “When jobs are cut, it can create opportunities for other companies to acquire strong talent, but it can also prompt experienced employees to retire earlier than planned,” he explained. This cautious approach underscores the need for companies to adapt their strategies to attract and retain top talent in an increasingly competitive market.
Paul Sturgeon, CEO of KLA Industries, a national search firm specializing in plastics, packaging, and polymer technology, pointed out that manufacturing in the US has been in contraction for over three years.
“There is hope, as some indicators show that we may be close to reversing that cycle,” he said. “The early phase of a recovery will include hiring business development talent, as most plastics companies have excess capacity. While anecdotal, the searches we are currently working on provide a good sample size, and 55% are sales or sales management roles. Over the course of a typical year that would be 30-35%, so companies are prioritizing the sales team, and I expect that to continue through at least the second quarter.”
Sturgeon said the root cause of the skills gap is simple.
Primarily for cost reasons we decided to export much of our country’s manufacturing. From a peak of about 19.5 million manufacturing jobs in 1979 we went to under 12 million in 2010, while the population increased by 82 million,” he said. “We’ve had a little rebound since then, but manufacturing hasn’t been a relatively attractive career for decades.”
Tim Frick, a senior plastics executive recruiter at MRIGlobalSearch, emphasized the ongoing skilled labor gap in the plastics sector, particularly for hands-on engineering and technician roles. “Skilled trades and hands-on engineering roles are in high demand, especially for hourly technician roles,” Frick said. He noted that challenges such as pay, benefits, and work hours often contribute to the labor gap, and HR teams sometimes struggle to source and engage candidates effectively.
To address these issues, Frick highlighted the importance of fostering a positive workplace culture. “Companies that can put forth a positive culture can be at a competitive advantage when it comes to hiring,” he said. This approach is particularly valuable as retirements strain the talent pool, making it crucial to attract and retain experienced professionals.
Sturgeon said when it comes to a skills gap, companies can look at mission-critical roles differently and have a different strategy for those.
"There have been many studies, and I think most leaders know this intuitively, that show the top performers in any industry or field are so far above the average that you need to have some on your team," he said, citing a study by McKinsey & Company showing an 800% productivity gap between average and high performers, in highly complex roles. His advice for these roles is simply, make sure they are talking to the people they want, and pay up when they find them.
"You cannot afford to get these hires wrong, as the true cost of a bad hire in a critical role can easily be ten times their compensation," Sturgeon noted. "For most roles, companies can look at a variety of non-monetary or low-cost incentives. A few examples are flexible work schedules, casual dress codes, health and wellness programs, allowing time off for volunteer work, and friendly competitions based on company performance. Use your imagination and have a little fun with this. If someone has a dog and a cat, you might beat out your competition by offering pet insurance."
AI’s impact on recruitment and skills prioritization
AI and automation are transforming hiring practices in the plastics industry, influencing both recruitment processes and the skills companies prioritize. Garrison explained that AI is improving the speed and efficiency of sourcing, screening, and matching candidates. “The number of companies using AI-assisted tools is increasing in recruiting rapidly,” he said. “This applies in areas such as resume screening, candidate evaluations, and recruiting administration to improve speed and accuracy.”
Frick added that automation is reshaping workforce needs, with some fully automated plants requiring minimal human contact. “At times, more automation means less human contact is needed, so many candidates have told me they’re not going to be needed,” he said. However, he also noted that automation can reduce human error and improve quality ratings in manufacturing processes.
Garrison emphasized that while AI is revolutionizing recruitment, the shortage of overall talent remains the dominant issue. “Companies are moving more cautiously, and candidates are as well,” he said.
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Credit to: David Hutton










