Missing parts in electronics manufacturing: Blue-collar workers, engineers
Curiously, the talent gap is the most evident at a time when several companies are harnessing robotics and AI to boost global competitiveness, as towering tariffs or their absence determine the quantum of future India-focused investments for brands such as Apple and Samsung.
As margin-protection pressures build on smartphone makers set to lose the five-year production-linked incentive (PLI) scheme benefits next year, the adoption of newer technologies is causing the gap between talent demand and supply to widen. Only around 30% of technical graduates are industry-ready in advanced manufacturing, said executives.
'There is a large gap in available skilled labour, and the current exercises being done to tie up with colleges and leverage government initiatives is an important foundational step,' said Atul B Lall, managing director,
Dixon Technologies
, India's top homegrown contact manufacturer. 'It has to be scaled up, but I think it's going to be in phases, which we can take forward through global collaborations.'
Dixon manufactures mobile phones, TVs, washing machines, air conditioners, and lighting equipment, and will soon start making electronic components.
Job complexity
Adoption of new technologies has created a notable gap, involving both complex roles such as development, automation, and advanced
supply chain management
, and relatively simpler engagements, such as technician roles, said experts.
Quess Staffing Solutions
said in the mobile phone manufacturing sector, up to 350,000 people are currently employed. But capacities are doubling every year, and the skill gap is set to widen further with the rapid expansion and adoption of new technologies.
According to TeamLease, approximately 20% of new roles — double of what was needed a year before — now require advanced technical skills.
'The (wider electronics manufacturing) sector's reliance on advanced technology requires workers with updated skills, but there is often a shortage of qualified candidates,' said Kartik Narayan, CEO, Staffing, Teamlease Services. 'The industry competes with other sectors, such as technology and healthcare, which may offer higher salaries and better working conditions.'
He added that only a small fraction of technical institutes has practical training facilities like SMT (surface-mount technology) lines or automated inspection systems, forcing companies to invest heavily in on-boarding and skill development internally.
Shop floor staff
To be sure, for
blue-collar workers
, the skill requirement in general hasn't changed significantly. The challenge is getting the right person available at the right time in the specific regions, because there is more demand than locally available supply, Quess said.
Electronics manufacturing is concentrated in three main hubs — Tamil Nadu, parts of Karnataka, and Noida/Greater Noida.
The local talent pool for shop floor jobs in these hubs is limited, necessitating migration from labour-surplus states such as Bihar, Jharkhand, Odisha, and Madhya Pradesh, said Nitin Dave, CEO, Quess.
In the next 3-4 years, a large number of people from the current pool of trained freshers are expected to upgrade and potentially move to higher-skill roles, Quess added.
The skill gap is set to become more significant as manufacturers start getting into component manufacturing for margin expansion, which requires higher automation and robotics deployment.
'Over the past few years, AI-driven quality checks and IoT-enabled SMT lines have transformed manufacturing processes, with nearly 65% of manufacturers adopting these advancements, leading to a 15% decline in low-skilled roles,' said Teamlease's Narayan.
TeamLease added that around 60% of existing staff are being upskilled annually in automation and design.
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