Navigating the 2025 Rapid Tech-Industrial Shift: The Whirlwind Impact on Markets, Workforces, and Executive Leadership

These shifting trends have impacts on all market segments, with traditional industrial markets being transformed rapidly, necessitating a shift where companies must learn to adapt and evolve with some attributes typically seen in the tech sector. 

As these changes occur, and the driving force of economic growth in industrials evolves at an unprecedented rate, C-suites need to be able to change with it. This has several implications for executive leadership teams, necessitating a shift in hiring strategies to adapt effectively to these market changes. 

Strategies for Workforce Adaptability

Workforce development strategies need to emphasize agility, ensuring that employees can quickly adapt to shifts in the technological landscape. Leaders who have successfully expanded businesses, turned around struggling operations, or made significant impacts in their industries will be crucial for hiring executives to target. More than ever, companies from large to small and from public to private are seeking leaders with attributes more associated with successful private equity and venture leaders. While agility will be a primary consideration among qualified candidates, prioritizing hiring leaders who understand technology, the evolving government landscape, and the convergence between traditional and tech-driven companies will be key to achieving success. Candidates with this experience will understand the value of adaptability and prioritize strategies that help to ensure the long-term success of their organizations. These qualities must be present across all levels of an organization, from entry-level employees to senior executives.

Talent Shortages and Evolving Workforce Needs

There are major shifts within the industrial market linked to automation, artificial intelligence, low-carbon energy, circular product life cycles, and electrification, which requires a new skillset among industrial workers. While there have been layoffs in the wake of political and geopolitical instability, there is still a real shortage of qualified workers to fill niche technical roles. 25% of workers in the US energy market are nearing retirement age, and half of the new energy jobs created are clean energy jobs. This has caused a growing demand for increasingly fewer experienced workers and fierce competition for new talent that is reluctant to join traditional energy companies. According to the National Association of Manufacturers, 67% of manufacturers cited the inability to attract and retain employees as their top challenge. This can pose a challenge for hiring executives to obtain and retain talent capable of navigating the ever-changing technology within the sector. 

Proactive Talent Mapping

Our discussions with senior executives across sectors have shown great consideration given to the dynamic times we are living in, as leading organizations become more proactive regarding talent needs. As organizations seek to grow and invest in new market areas, it is becoming increasingly important to preemptively map out talent across multiple business sectors and functional areas. For example, the potential impact of tariffs on supply chains increases the importance of mapping out the talent market for supply chain, procurement and operations roles. If companies ensure they are proactively keeping track of potential talent pools and targets, they will give themselves a competitive edge by enabling swift responses to emerging challenges. Most importantly, they’ll be able to seize new opportunities with the best leadership in place.

Contingency Planning and Developing a Playbook

In addition to proactively identifying talent pools, companies must also anticipate disruptions and prepare strategic responses in advance. We have observed leading companies actively developing contingency plans and executive talent playbooks to stay ahead of market disruptions. Playbooks could contain plans and tactics for managing a variety of scenarios that could take effect as a result of geopolitical, economic, and environmental changes. For example, companies may develop a strategy should tariffs be put into effect, such that senior leaders may be prepared to adapt their business strategies accordingly. Tactics for these scenarios may involve when to hire new talent, when to shift talent into new roles, downsizing, or restructuring. Scenario planning and developing a playbook is a key practice that C-suite level leaders and HR leaders should employ increasingly to ensure workforces can adapt to the constant changes in our markets. 

Investing in Career and Continuous Education

Investing in career education at all stages is key to workforce development. Public-private partnerships that create opportunities for technical education, and “earn while learning” models, will help cultivate a sustainable workforce. Co-op programs should target students who represent the next generation of the workforce, ensuring a continuous influx of talent into the industry. Apprenticeship programs should be marketed effectively, providing clear career pathways that establish them as strong alternatives to traditional college degrees, and assist with developing strong talent pools.

Leveraging Transferable Skills

Beyond hiring strategies, long-term workforce resilience depends on proactive investment in career education and identifying transferable skills that can bridge talent gaps. Capitalizing on transferable skills will help bridge gaps in the workforce. Employees with experience in traditional energy sectors often have skillsets that can transition into renewables and cleantech. Carbon capture storage, for example, has been used in oil and gas companies for years, making these workers well-suited for emerging energy technologies. Hydrogen also offers a high degree of transferability, as 80% of professionals in the field have transitioned from other industries within the last five years. Companies must identify where skill overlaps exist and integrate this knowledge into their hiring strategies.

The Need for Cross-Functional Leadership

Cross-functional leadership will be crucial in navigating automation and digitalization. As industrial sectors become increasingly tech-driven, executives must possess the ability to manage the intersection of new technology and workforce shifts. Government affairs leaders with technology expertise, operations executives with AI and automation knowledge, and marketing executives with human capital experience will be invaluable. Strategic executive searches must focus on individuals who bring multi-disciplinary expertise to leadership teams, ensuring companies remain competitive.

Conclusion

The rapid transformation of industrial markets into tech-driven sectors requires a forward-thinking approach to workforce development. To stay ahead, hiring executives must prioritize finding leaders who bring agility, cross-functional expertise, and deep industry knowledge. In a time of exponential technological growth, and constant political and geopolitical fluctuations, leaders who bring an ability to move quickly, pivot and progress will be critical. By aligning hiring strategies with evolving economic and technological shifts, companies can ensure resilience, maintain a competitive edge, and future-proof their workforce for the challenges ahead.

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This article was co-authored by Jon Barney, Partner & Head, Industrial Practice & Christina Zengin-Karaian, Analyst, Industrial Practice.

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