
How Tariffs and Economic Uncertainty are Impacting Talent Acquisition for Advanced Manufacturing
As a workforce development leader, you need to know how the latest tariffs —such as those imposed on key imports like steel, semiconductors, advanced components and consumer goods—will disrupt your talent acquisition strategy.
Before we get to the solutions, let’s take a quick look at some cold hard data:
According to The National Association of Manufacturers Q1 2025 Manufacturers’ Outlook Survey, 62.3% of manufacturers identified rising raw material costs (due to tariffs) as a significant business challenge. Over the next 12 months, they expect these costs to rise by 5.5%. On the flipside, their product prices are projected to increase by just 3.6%. As you can see, the math isn’t “mathing” in the right direction for workforce management expenditures in advanced manufacturing.
In short: More tariffs mean higher costs. Higher costs mean tighter budgets. And tighter budgets mean less room for aggressive hiring initiatives.
If the recent tariffs are causing you to do more with less at your advanced manufacturing facility, consider these three talent acquisition strategies (and relevant resources):
Leverage Internal Mobility & Cross-Training
The key here is to move forward—you can’t afford to wait for the business climate to settle down. As you upskill your workforce, remember to reinforce your business goals and shared commitments as an organization. Are they well-established? Are they easily understood? Are they the driving force of your training programs? If not, assemble your team to recalibrate and recommit accordingly.
Consider the following practical examples:
- Partner with operations and HR to identify line workers or technicians who can be cross-trained for higher-skilled roles (e.g., CNC operators, quality inspectors).
- Prioritize on-the-job training programs or apprenticeships to grow talent from within.
- Use job rotation to develop flexible workers without adding headcount.
Related: Developing a Successful Workforce Upskilling Program
Focus on Filling High-Impact Roles
As tariffs tighten margins and complicate supply chains, focus on hiring and retaining roles that keep operations running smoothly. Before investing in broader talent strategies, ask yourself (and your team): Which business functions are essential to delivering customer value? Does your current workforce have the skills and support to meet operational goals? Is your retention strategy clear, consistent, and communicated at every level?
To prevent attrition without inflating costs, start by identifying and reinforcing the roles that directly impact production, reliability, and delivery.
Here are some ready-made ways to prevent attrition without accruing high costs:
- Identify mission-critical positions—like maintenance technicians, industrial engineers, or supply chain coordinators—that directly affect production and uptime.
- Collaborate with plant managers to adjust staffing plans based on production cycles and customer demand.
- Highlight job stability, benefits, and advancement opportunities—especially in blue-collar talent pools.
- Partner with local high schools, trade schools, and community colleges to build a talent pipeline.
- Feature real stories of shop floor promotions to inspire interest and trust.
Related: Employer Branding: Best Practices, Tips, and Resources
Utilize Low-Cost Recruiting Channels
When budgets are tight, expanding your reach doesn’t have to mean increasing your spend. Many high-performing manufacturers are finding creative ways to connect with talent by tapping into grassroots channels. The key is to meet job seekers where they already are—both online and in person—while leveraging partnerships that align with your hiring goals.
These low-cost efforts not only help fill open roles faster, but they also build trust and visibility in your local labor market:
- Post jobs on local job boards, community Facebook groups,and nearby career centers.
- Partner with local workforce development agencies or regional manufacturing alliances.
- Attend job fairs at vocational schools—often free or low cost.
Related: The Cost of Making A Bad Hire is Rising. Here’s Why
The Road Ahead: Workforce Agility in a Changing World
Tariffs are putting pressure on manufacturers—but with the right HR strategy, you can turn reactive measures into forward-looking leadership. Embracing a flexible workforce, investing in upskilling, and building strong ties with local schools can help companies not just adapt, but grow stronger. In today’s environment, smart talent acquisition, retention, and development are key to staying resilient and future-ready.
Our team at Acara Solutions has created a comprehensive checklist for effective contingent labor management that addresses the challenges many organizations face when integrating non-permanent workers into their talent ecosystem.
Transform Your Workforce Strategy: Contingent Labor Management Checklist
This practical guide will help you:
- Align your contingent workforce with strategic business goals
- Improve compliance and risk management
- Optimize costs while maintaining quality talent
- Streamline your management processes