The Hidden Recruiting Breakdown in Manufacturing—And How to Fix It

Reflections From Seven Years in the Trenches of Manufacturing Hiring

Seven years ago, when we started FactoryFix, we had a simple belief: manufacturers needed a better way to hire skilled workers.

Back then, we had theories about what was broken in the hiring process—what was slowing things down, what was driving up costs, and why the best candidates weren’t landing in the right roles fast enough.

Since then, I’ve had the privilege of working with some of the brightest Talent Acquisition leaders in the industry, listening to our customers, and watching real-world hiring patterns play out at scale.

And time and again, our early assumptions have proven true as we've worked alongside manufacturing TA leaders and hiring teams. Disconnected recruiting processes create hiring slowdowns that cost real money—from lost production output to increased overtime expenses and higher turnover. The best candidates don’t wait around; they take the first strong offer, which means manufacturers who move too slowly miss out on top talent and are forced to settle for second-best.

We've also seen that companies don’t overspend on hiring by choice—they do it because inefficiencies in their process force them to. Whether it’s over-reliance on staffing agencies, excessive job board spend, or lost productivity from unfilled roles, the cost of disjointed recruiting adds up quickly. And when corporate TA, field HR, and hiring managers aren’t aligned, the result isn’t just hiring delays—it’s a direct hit to manufacturing throughput, customer commitments, and ultimately, the bottom line.

Through this journey, my perspective on this challenge has only strengthened. It’s what’s driven me—and the FactoryFix team—to build the most dedicated and effective solution to this problem.

The Cost of Decentralized Recruiting Chaos

Most large manufacturers operate with a dual recruiting structure that, while necessary, often creates inefficiencies. Corporate TA leaders focus on process, efficiency, and cost control—but they don’t directly manage all hiring at the plant level. Their goal is to drive consistency and reduce costs, but with decentralized execution, maintaining control is a challenge.

Meanwhile, field HR teams are on the front lines, responsible for filling roles as quickly as possible, often without the right tools, resources, or strategic oversight to move efficiently. Without a streamlined process, hiring managers are left waiting, sometimes for weeks or even months, as open roles remain unfilled, creating strain on production teams.

As this misalignment plays out, top candidates slip through the cracks—either because the process is too slow or because they accept other offers before field HR can act. Recruiting teams are left scrambling to catch up, often relying on expensive third-party agencies or temporary workers to bridge the gap.

The result? An expensive and inefficient hiring process that directly impacts manufacturing output. Production delays, increased overtime costs, and lost revenue all stem from one core issue—hiring needs to move at the speed of operations.

Consider these stats:

• 50% of manufacturing job openings remain unfilled for over 30 days (NAM, 2024).
• Unfilled positions cost manufacturers an average of $7,000 per month per vacancy (Deloitte, 2023).
• A single day of lost production due to labor shortages can cost manufacturers $100,000+ (IndustryWeek, 2024).
• This isn’t just an HR issue—it’s a P&L issue.

How AI-Powered Recruiting Fixes the Breakdown

Over the years, I’ve seen firsthand how technology and process alignment can transform hiring outcomes. FactoryFix is built on the idea that hiring in manufacturing should be easier, faster, and more cost-effective—without sacrificing quality.

1. Straight-Line Hiring for Faster Decisions

• With automated sourcing and pre-screening, FactoryFix removes bottlenecks that slow hiring down.
• HR teams can approve candidates with one click, or even route them directly to hiring managers for immediate interview scheduling.

2. Smarter Hiring Spend: Balancing Direct and Third-Party Sourcing

• Many manufacturers rely on a mix of direct sourcing and external recruiting partners to fill critical roles.
• FactoryFix helps companies reduce unnecessary spend by ensuring they maximize direct hiring first, while empowering staffing partners to focus on hard-to-fill roles.
• This approach ensures every recruiting dollar is spent wisely—whether through in-house teams or external recruiters.

3. Centralized TA Control with Field Execution Flexibility

• Corporate TA leaders gain visibility into applicant flow, hiring speed, and cost per hire—without micromanaging local HR.
• Field HR teams get the automation they need to move faster without additional workload.

4. Data-Driven Hiring for Continuous Improvement

• FactoryFix provides real-time hiring metrics—which locations are hiring efficiently and where bottlenecks exist.
• Standardizing hiring best practices across locations improves workforce planning and reduces long-term labor costs.

The Bottom-Line Impact: A Case for Change

I’ve watched manufacturers who align corporate TA, field HR, and automation not only hire faster but also drive measurable business improvements. Companies that optimize their recruiting process see 30-50% lower hiring costs by reducing reliance on third-party sourcing. Instead of paying costly placement fees, they’re able to build a sustainable talent pipeline in-house and fill roles more efficiently.

Time-to-fill accelerates dramatically, often improving by 2-3x, which means fewer production slowdowns caused by understaffed shifts. For mid-sized manufacturers, these efficiencies translate to $500K+ in annual cost savings, simply by streamlining the way they identify, engage, and hire candidates.

Beyond cost, the real impact is workforce stability. When the right people are in the right roles at the right time, manufacturing throughput increases, delivery times improve, and operational strain decreases. Instead of constantly scrambling to backfill positions, companies can focus on growth, innovation, and maintaining a competitive edge.

When these pieces come together, the impact is transformational—not just for HR, but for the entire business.

Still Learning, Still Listening

I won’t pretend to have all the answers. Hiring in manufacturing is complex, and every company faces unique challenges.

But after seven years of studying this problem—listening to our customers, tracking the data, and watching hiring strategies evolve—I’m more convinced than ever that the companies that solve this breakdown first will win the war for talent.

If this challenge resonates with you, I’d love to hear your perspective.

‍

Mike Schaefer is the Senior Vice President of Revenue at FactoryFix. With 15+ years of experience in sales and leadership, he leads all revenue generating aspects within the company. He has been instrumental in the design and execution of FactoryFix's go-to-market strategy, introducing the market to recruitment automation technology and helping thousands of HR professionals and recruiting specialists in the manufacturing industry save time, build candidate pipelines faster, and improve headcount capacity.