Manufacturers Have Struggled With Digital Knowledge
Most firms lack digitized operational knowledge, leaving critical expertise reliant on informal instruction.
Updated on Sept. 23, 2026 in Manufacturing
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Seventeen percent of manufacturers have fully digitized critical operational knowledge, while 32% still rely on verbal instruction and shadowing to transfer expertise. This reliance creates significant workforce risks as experienced employees retire.
Why it matters
The industrial sector faces mounting pressure to balance the adoption of new technologies with the loss of institutional knowledge held by veteran workers. Failing to bridge this gap poses a threat to long-term operational continuity.
A survey of 756 technology leaders at companies with over $1 billion in revenue found that 38% fear employee upskilling failures. Additionally, 39% identified the rapid adoption of AI as a top operational risk.
The players
Censuswide
This is a market research firm that conducted the survey of 756 technology decision-makers at large manufacturing companies.
The details
Many organizations remain in a transitional phase where core processes are documented, but nuanced employee know-how is not. This gap requires urgent attention as the sector attempts to integrate advanced tools while maintaining traditional trade skills.
Timeline
Manufacturers face risks regarding AI and employee upskilling over the next 5 years.
Systems thinking is expected to be a valuable skill set over the next decade.
Market Landscape
This report updates figures previously established by industry analysts regarding the digitalization of operational knowledge. The findings align with the broader industry trend of struggling to maintain trade expertise while automating legacy workflows.
Employees in the sector can expect a shift toward more formalized training and mandatory digital documentation requirements. These changes aim to preserve company expertise but may increase the learning curve for staff accustomed to informal mentoring.
The takeaway
Manufacturers must prioritize documenting nuanced employee knowledge to avoid losing critical insights as their workforce turns over. Building a structured knowledge transfer system is as vital to long-term success as adopting new AI tools.
Further reading
Learn more about industrial trends in our Manufacturing section.
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Do you feel your workplace adequately prepares employees for digital and AI-driven changes?
