Could Experiential Learning Answer Manufacturing’s Skills Crisis?

To stay competitive, manufacturers are using AI to build engaging learning experiences

Manufacturing companies face significant challenges around attracting and retaining talent. In the UK alone, long-term vacancies are already costing the economy around £6 billion per year. This shortage of skilled labor combined with experienced workers retiring means that companies are experiencing slowed growth, limited outputs and an overall loss of talent. But there are ways to tackle these challenges, and experiential learning offers a practical way forward, especially when paired with strategic applications of AI.

The perfect talent storm

Manufacturing companies offer fulfilling careers in science, technology, engineering and mathematics (STEM). Yet, when it comes to hiring, they face intense competition from within their own industry as well as tech giants vying for the same pool of STEM graduates.

Aside from the difficulties of recruitment, the sector also faces a demographic shift. Many experienced workers are approaching retirement. And there is the potential that decades of accumulated knowledge will leave with them.

Training plays a key role in addressing the talent challenges that the manufacturing sector is facing. Although traditional training approaches to training are no longer enough.

Historically, manufacturers have relied heavily on mentorship for training. While mentors are valuable, this approach is neither scalable nor efficient. Taking skilled employees away from their core roles to train or upskill others leads to operational slowdowns and lost productivity.

On top of all this, there is the expectation of today’s workers to be given highly personalized, relevant and embedded learning experiences in their day-to-day work. Failing to meet these expectations can result in higher attrition as employees look for fufiling learning experiences elsewhere.

Considering these challenges, experiential learning offers a way for companies to design learning experiences that appeal to the next generation of talent, encourages long-term retention and ensures that knowledge is passed on efficiently.

What is experiential learning?

Unlike traditional training, which often relies on the passive consumption of information, experiential learning uses technology to immerse individuals in real-world scenarios. It offers hands-on training through simulations, smart guidance and interactive environments that mirror the challenges and technologies a worker will face while on the job.

This approach is particularly powerful when combined with AI. Imagine a manufacturing company deploying an AI-powered mentor: an intelligent 3D character trained on the insights of experienced members of the workforce. Existing employees could contribute their knowledge to the language model, which is then fed into the AI mentor. New recruits or employees looking to upskill could then have a natural, conversational interaction with the AI mentor in which they gain knowledge based on real-life experience and the broader strategic goals of the company.

Preserving legacy and empowering growth

The concept of an AI mentor is transformative. It enables self-directed learning, allowing employees to explore topics at their own pace and according to their individual needs. AI mentors use natural language processing to engage users in conversation, making the experience feel intuitive and personalized.

Importantly, this method alleviates the burden on existing staff. Skilled workers no longer need to be pulled away from their tasks to train others. Instead, the AI mentor provides consistent, high-quality guidance on-demand. This ensures that trainees receive the benefit of experienced expertise without disrupting daily operations.

Simulations and immersive environments

Simulated environments, which are another important part of experiential learning, could include:

• Virtual reality (VR): Allowing employees to immerse themselves in realistic, interactive environments that replicate complex scenarios, such as operating machinery, navigating design systems or collaborating in virtual workspaces.
• Hands-on labs: Equipping physical spaces with digital devices where employees can experiment with new technologies, workflows or systems.
• Gamified onboarding: Transforming detailed learning content, like documentation on design and engineering decisions, into interactive video game-style journeys that guide learners through key concepts in a fun and engaging way.

These highly personalized immersive experiences replicate the complexities of real-life manufacturing processes, allowing learners to experiment with tools and processes in a safe and controlled setting without the risks or limitations of the real world. This would be particularly useful, for example, to train operators on high-precision machinery, where mistakes could be costly or dangerous. Or when onboarding new hires in complex assembly lines without interrupting production.

Efficiency, confidence and continuity

The advantages of experiential learning extend beyond individual growth. For businesses, it means fewer errors, faster onboarding and a more confident workforce. Employees trained through interactive, scenario-based methods are better prepared to meet the latest standards and practices.

An experiential learning approach is not solely for new joiners. It fosters a culture of continuous learning across the business. As technologies evolve and become more sophisticated, organizations can adapt their training programmes to reflect emerging technologies and industry trends. This agility is vitally important in a sector like manufacturing where innovation is constant.

Breaking down silos and building knowledge hubs

Another key benefit of experiential learning is its ability to connect and streamline knowledge across the business. Simulated and gamified learning helps break down silos between various disciplines in an engaging way by encouraging collaboration and shared understanding.

AI systems can transform static resources like manuals and spreadsheets into interactive knowledge hubs. These hubs are accessible across devices and locations, seamlessly integrating physical and digital formats to deliver an enhanced training experience. This includes the use hands-on labs and digital companions which are AI-powered chat assistants that operate alongside employees, providing real-time support by addressing common queries and facilitating problem-solving. Challenge-based learning, such as gamified onboarding, adds a playful element that can also build an emotional connection to learning, through teamwork or that feeling of achieving something against the odds, which helps maintain retention.

Solving the manufacturing skills crisis

At frog, we have been helping clients across industries develop experiential training solutions that blend into the flow of work. We see experiential learning as a clear solution to the ongoing skills crisis and we believe it will enrich employees, while delivering stronger training experiences with meaningful retention rates.

What comes next?

Experiential learning is a step toward a design-led culture, where human-centered design principles are embedded into every level of business strategy and operations. This fuels innovation, attracts fresh talent and helps companies adapt to sudden changes in the wider market.

It’s a shift from traditional training methods to immersive, hands-on experiences. Manufacturers are facing challenges that extend beyond the manufacturing industry. Organizations across sectors can use experiential learning to accelerate skill acquisition, improve retention and build a more confident and capable workforce. The World Economic Forum found that manufacturers who prioritize talent strategically see real results. Companies that invest in training, especially of frontline workers, have experienced a 52% increase in workforce stability and a 34% improvement in financial performance.

frog, as part of Capgemini Invent, will be heading to DSEI 2025. Come find us in the Future Tech Zone (booth B2) to meet Dr. Tara Singh, our advanced AI learning mentor. Designed to make complex knowledge accessible, engaging and human, Dr. Tara Singh is packed with insights drawn from collaboration with an aerospace expert.

If you’re curious about growing plants in space, you can have a natural conversation with Tara and explore everything you’ve ever wanted to know.

If you’re ready to rethink how your organization learns, we’d love to show you what’s possible.