Pay BillWritten by Ryan Carter, CPA, BMSS Senior Manager
The U.S. manufacturing industry has long been a driver of economic strength, but a persistent and deepening labor shortage is testing the resilience of manufacturers across the country, including right here in the Southeast. An aging workforce, a widening skills gap, and growing competition for talent have left many manufacturers scrambling to keep production lines moving and operations running efficiently. The good news? Forward-thinking companies are finding real solutions, and technology is at the center of them.
The Southeast Manufacturing Labor Shortage Is Not Going Away
Labor shortages are not a new problem for manufacturers, but they have become more acute in recent years. Baby boomers are retiring at a steady pace, and the pipeline of skilled workers trained to replace them is simply not keeping pace. A 2024 survey of food and beverage manufacturers found that 90 percent of respondents had concerns about staffing, and the findings apply well beyond that segment. Across manufacturing as a whole, companies are being forced to rethink how work gets done.
Technology Is Filling the Gap: AI and Automation Are Becoming Practical Solutions
Many Southeast manufacturers are turning to automation, artificial intelligence (AI), and enterprise resource planning (ERP) systems to compensate for labor shortfalls and improve operational efficiency. These are not just large-enterprise solutions, mid-market manufacturers across the Southeast are investing in tools that deliver measurable results:
- Robotic process automation (RPA) is handling repetitive, time-consuming tasks, freeing existing employees to focus on higher-value work.
- AI-driven analytics are helping management teams make faster, smarter decisions around inventory, scheduling, and supply chain management.
- ERP systems are streamlining daily operations, from bookkeeping to human resources, and enabling workers to step into more supervisory and strategic roles.
- Cobots (collaborative robots) are working alongside employees on the shop floor, adding flexibility and capacity without requiring a complete operational overhaul.
The results speak for themselves. Companies that have embraced these technologies report significant efficiency gains, reduced downtime, and improved profitability, even with leaner teams.
It Takes More Than Technology
While automation and AI are powerful tools, they work best when paired with smart workforce strategies. Manufacturers that are winning in this environment are also investing in employee retention, upskilling programs, apprenticeships, and partnerships with local trade schools and universities. The goal is not to replace workers, it is to build a more capable, adaptable workforce that can grow alongside new technologies.
How BMSS Can Help
At BMSS, our manufacturing advisory team works alongside Southeast manufacturers to identify practical, financially sound strategies for navigating labor challenges and technology investments. From analyzing the return on investment of automation and equipment purchases, including guidance on Section 179 deductions and R&D tax credits, to helping structure workforce development budgets, we provide the insight manufacturers need to make confident decisions. Whether you are exploring your first automation investment or looking to optimize an existing technology stack, our advisors are here to help you build a stronger, more resilient operation.
Workforce shortages may not disappear soon, but manufacturers can take steps now to ensure that they are prepared for the future. With the right combination of technology, workforce planning and financial guidance, Southeast manufacturers can strengthen operations, improve profitability and prepare for long-term growth. Ready to talk through your options? Contact the BMSS manufacturing advisory team today by visiting our website or calling (833)CPA-BMSS.
