The manufacturing industry witnessed a substantial reduction in appraisals for the fiscal 2023–2024, highlights an executive search firm’s report.
According to the report, the average assessments in the manufacturing industry have decreased from 11.5% in 2023 to 10.1% in 2024. This decline underscores the economic pressures and shifting priorities within the industry.
The report highlights that top management appraisals have dropped from 10% to 9%, while middle management fared slightly better at 11%, down from 13% in 2023. Core engineering assessments have also seen a decrease, from 11% to 9%. Despite these reductions, the demand for specialised skills driven by automation and smart manufacturing technology is pushing up salaries in certain areas. Business roles such as management, sales, and human resources have also experienced a decline, with appraisals falling from 8.5% to 7%. Companies are increasingly investing in Industry 4.0 technology, highlighting the importance of talent development.
Regional differences are notable, with manufacturing hubs in Western and Southern India reporting average gains of up to 12%, compared to approximately 7% in Eastern and Northern India. These regions benefit from a better ecosystem and a greater supply of skilled workers. The automotive sub-divisions in the manufacturing sector showed a stronger evaluation outlook, with an average appraisal rate of 11%, reflecting the sector’s overall performance.
“The survey highlights a dip in average appraisals in FY 23–24; however, the need for advanced technical skills in specialized domains is driving the growth forward. With rising digitization, businesses must focus on learning and development and utilize AI-driven insights for talent upskilling,” said Arvind Pandit, Founder & Managing Partner of Ishwa Consulting
Looking ahead, the research emphasizes that firms should empower digital talent by encouraging innovation and continuous growth in digital skills relevant to Industry 4.0. Over the next five years, the demand for qualified workers is expected to increase significantly in the manufacturing sector. Companies that prioritize employee retention and development will be better positioned to lead in innovation and operational efficiency.