Learn how tech firms can develop the workforce they need to keep up with demand.
Insight
How CRE leaders can help win the battle for frontline tech talent
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With digital transformation happening across industries, the demand for semiconductors is on the rise. With increased demand comes a need for manufacturers to ramp up production—which means they need to bring on more of the frontline workers who produce the components powering the next generation of devices. A skilled frontline workforce will ensure operational excellence in a competitive global landscape.
In 2022, the U.S. passed the CHIPS and Science Act which includes $280 billion of investments aimed at boosting domestic semiconductor manufacturing. At the same time, rising production costs are exerting pressure on what is already a resource-intensive sector of the technology industry. To address the cost and demand pressures, manufacturing leaders must optimize their real estate strategies for efficiency and talent attraction.
Creating an environment that attracts skilled frontline workers
As the demand and competition for frontline talent intensifies, manufacturers of semiconductors and other advanced technology must invest in creating a positive experience for the workforce, whose environments and responsibilities often differ significantly from those in traditional office settings. The focus in technology manufacturing facilities tends to be on the labs and clean room spaces where production happens. However, frontline workers also need collaborative spaces, meeting rooms, and areas for informal interaction to facilitate knowledge sharing. Modular designs and adaptable infrastructure can help manufacturers accommodate evolving training needs and technological advancements.
Particularly in high-demand labor markets, the competition for talent is fierce. Properties that lack amenities such as food options and collaborative spaces may be less appealing to workers in a competitive labor market.
Attracting and retaining frontline workers requires attention to how the work environment contributes to employees’ well-being—and on that front, many properties need a refresh. Incorporating features such as natural light, ergonomic workstations, quiet zones, and access to outdoor spaces can help CRE leaders create more attractive workplaces for frontline workers.
"The semiconductor industry stands at the forefront of innovation, yet many of its manufacturing facilities lag behind in their office and amenity spaces,” says John Leddy, Managing Director of Technology at JLL. “Investing in updated, employee-centric spaces isn't just about upgrading brick and mortar; it's about building a future where top tech talent thrives, driving the next wave of technological advancement."
Beyond that, amenities that support work-life balance, community building and a strong sense of company values and culture can be important differentiators in a competitive talent market creating more attractive workplaces for employees.
Upskilling the workforce and boosting domestic production
While the U.S. has been a leader when it comes to semiconductor design and innovation, the manufacturing of chips is often outsourced abroad, largely to countries in the Asia-Pacific region. Increasing the domestic semiconductor manufacturing capacity is a priority for both economic and national security reasons, but the U.S. faces an obstacle in the form of a shortage of qualified production workers.
One provision of the CHIPS and Science Act, CHIPS Incentives Program, includes $39 billion in incentives to build, expand or modernize semiconductor facilities and equipment. Under that provision, roughly $200 million in appropriated resources will support a Workforce and Training Fund. The law also authorizes $13 billion for STEM education and workforce development, to be spent by the National Science Foundation. Partnerships between manufacturers and local municipalities, community colleges and trade school programs will also be key to building the talent pool.
CRE leaders can support the industry’s efforts to upskill frontline workers (and reskill workers from other fields) in several ways, including dedicated training spaces within or near manufacturing facilities. In addition, manufacturing spaces need to be equipped with robust IT infrastructure to support advanced technologies and training programs, including high-speed internet, data centers and reliable power supply.
The critical role of location decisions
Frontline workers in tech manufacturing are highly skilled professionals, often with engineering backgrounds. Due to the specialized nature of these jobs, the talent pool is limited, and businesses that rely on capable frontline workers need to locate their facilities where those workers are accessible. With incentives in place to encourage upskilling and training the workforce, locating facilities near trade schools and colleges, allows for easier access to skilled workers. In addition to considering the current population, companies should assess an area’s growth potential based on factors like housing starts and cost of living.
Recent U.S. tariffs have created complex shifts in manufacturing location strategies. While they have, in some cases, driven Chinese investment into Mexico to bypass tariffs and maintain access to U.S. markets, rising inflation, labor costs, and infrastructure limitations in Mexico are prompting companies to explore alternative locations including emerging manufacturing centers within the U.S. and Canada. To further encourage domestic production, the U.S. government has allocated billions in incentives to companies like Intel, Micron, and TSMC to expand or rebuild their production capabilities within the country.
Securing the Future of Tech Manufacturing
Driven by digital transformation and government investment, the booming tech manufacturing sector, particularly semiconductors, faces a critical challenge: attracting and retaining skilled frontline workers to ensure operational excellence. “Attracting frontline tech talent requires a holistic approach, encompassing updated facilities, robust training programs, and strategic location decisions. CRE leaders who embrace this comprehensive vision will be key partners in driving the success of the semiconductor industry,” says Leddy.
To succeed, tech companies must prioritize creating positive work environments that cater to the unique needs of frontline staff. This includes investing in collaborative spaces, amenities, and upskilling initiatives. CRE leaders play a vital role in optimizing real estate strategies to support talent attraction and workforce development.
Key Takeaways:
- Frontline Tech Talent is Critical: The increasing demand for semiconductors requires manufacturers to ramp up production and attract skilled frontline workers for operational excellence.
- Invest in the Employee Experience: To attract and retain talent, tech companies must invest in positive work environments beyond just labs and clean rooms.
- Amenities Matter: Properties should offer amenities like on-site childcare, fitness centers, and collaborative spaces to attract workers.
- Upskilling and Training are Essential: Partnerships between manufacturers, local municipalities, and trade schools are key to building the talent pool; CRE leaders can support this by providing dedicated training spaces.
- Location Decisions are Key: Facilities should be located near trade schools and colleges for easier access to skilled workers, considering factors like housing starts and cost of living.
To learn more about how JLL can help you optimize your real estate strategy in this demanding ecosystem, visit https://www.jll.com/en-us/industries/technology.