e-commerce and recent nearshoring initiatives, where companies are relocating production closer to their markets to minimize the effects of disruptions in supply chains. As a result, competition for skilled talent is intense, as thousands of new manufacturing, distribution and warehousing facilities are popping up or relocating around the world. But with a turnover rate as high as 60%, organizations are struggling.
Companies taking action
Employees at Bosch’s facility in Ciudad Juarez, Mexico, can feel the difference since the global automotive company renovated its manufacturing facility to better support its employees. “As we grew we knew we would need to make changes to our facility,” says Stephan Fischer, Bosch vice president of manufacturing.
“The work environments had room for improvement — there was a physical separation between manufacturing people and office people, especially with managers, and it was not good for them or the company. We needed to give everyone access to different types of spaces to do their work and for their wellbeing.”
Changes included the addition of large windows to improve visibility and transparency between people in the office and factory to build trust and culture. To create a more inclusive and inspiring work environment, Bosch redesigned the outdoor area, added small meeting rooms, enclosed booths and a designated computer area. Original art pieces are featured throughout the building to reflect the company’s values.
Designing Better Experiences
Similar changes are happening at PepsiCo. “There’s a huge focus on the frontline right now. We are designing our supply chain sites in line with our office locations,” says PepsiCo Global Workplace Strategy & Design Lead Kristina Alfonso. “We want to make sure that we are creating spaces where people would want to come to work. It’s important to provide nice working areas, break rooms, lockers, changerooms, mother’s rooms and bathrooms. These spaces are important to our associates.”
Steelcase is also rethinking its industrial spaces. “One of the biggest changes we’ve made is to co-locate our cross-functional teams with production in our plants so they can work together better,” says Robert Hendriksen, director, U.S. manufacturing. “By bringing our quality and engineering people closer to where the work is performed they can better serve the operators. We’re also being more transparent by sharing key performance information. It feels more like a partnership — everyone feels valued and that’s building trust.”
Steelcase found gaming spaces that employees can use during breaks and before and after work can help build camaraderie among people with similar interests, create a stronger culture, and help people decompress. The company is also providing massage services, access to onsite health professionals and other wellbeing resources. The Steelcase plant in Reynosa, Mexico added sunrooms with access to natural light, enclosed booths, break spaces and small meeting rooms. At its plant in Pune, India, an on-site daycare recently opened and mother’s rooms were added to support working parents.
ABB’s 2022 survey of U.S. and European business leaders revealed that 74% of European and 70% of U.S. businesses are planning to re- or nearshore operations to build supply chain resilience.
As a result, countries with relatively low labor costs, established networks of skilled labor, strong transportation infrastructures and closer geographical proximity to these markets, such as Mexico, Türkiye, Morocco and many European countries, are seeing a lot of companies relocating to their geographic areas.
designed with pleasant aesthetics but durable materials to bring people together, eat a meal, take a break and rejuvenate, as well as support large group meetings, training and gaming. Technology and analog tools can help keep employees informed about the business or social events.
for the Wellbeing
of Industrial Employees
Consider product durability (i.e.
metal legs vs. wood legs, furniture with open bases to avoid marking)
Provide power in break areas and social spaces for people to charge phones
Locate phone booths throughout the facility, near work areas
Locate lockers near work areas and not in one main location
Use stackable seating to create more flexible spaces
Lighting
Provide access to natural light by adding skylights and windows where possible, and locate break areas near windows
In break areas, swap fluorescent lights usually found in warehouse spaces with warmer lighting to reduce eye strain
Color, Biophilia + Materiality
Warm up industrial spaces by using color on furniture and walls and biophilic elements (plants, woodgrain laminates) to create more welcoming and calming environments, especially in break areas and social spaces
For spaces that might get dirty or dusty, consider darker colors
Choose easily wipeable and cleanable materials and finishes for furniture and non-slip flooring