Smart Factories, Smarter Talent: Bridging the Digital Skills Gap

Mexico’s advanced manufacturing sector is undergoing a profound shift driven by automation, AI integration, nearshoring, and emerging technologies such as EVs and robotics. While the country benefits from a young, technically skilled workforce and the largest STEM talent pool in the Americas, structural gaps persist, agreed experts at Mexico Business Summit 2025. Many professionals hired do not fully meet role requirements, and talent remains concentrated in major urban centers.

“Mexico has a historic opportunity. The country is a manufacturing pillar in Latin America,” said Rodrigo García, General Manager, GAROCE, highlighting the strategic importance of the sector.

These dynamics are reshaping workforce expectations: companies now require employees with advanced technical competencies, strategic problem-solving abilities, and adaptability to continuously evolving digital tools. The automotive and aerospace industries illustrate the urgency: manual tasks are declining, while innovation-oriented roles demand engineers and technicians capable of sustaining high-tech production, design, and R&D initiatives.

“Supply chains, broken by the pandemic, remain broken due to wars and other disruptions. This demands an increase in productivity, which in turn calls for adaptability in human talent,” explained Pablo Sillas, Human Relations Director, Grupo DEACERO.

Essential digital skills in advanced manufacturing include AI and machine learning, data science and analytics, cybersecurity, software development, robotics, and digital project management. Organizations prioritize acquisition through upskilling, reskilling, and cross-skilling existing employees, while also recruiting specialized talent externally.

Effective strategies combine the “Build, Buy, Borrow” model: developing internal talent, hiring strategically, and leveraging project-based or fully outsourced professionals for immediate needs. Digital learning platforms and AI-powered talent ecosystems provide personalized training paths, micro-credentials, and direct employment connections. Collaboration with universities, industry clusters, and public institutions ensures that curricula and programs align with practical manufacturing requirements, including hands-on technical training in EV, aerospace, and automation technologies.

“Long ago, employee training used to take place every year or every six months. Now, Industry 4.0 demands continuous training,” noted Rafael Navarro, CEO, Human Quality, emphasizing the need for ongoing skill development.

Organizations face multiple barriers: regional talent imbalances, limited access to training for under-resourced employees, resistance to cultural change, and integration with legacy systems. Highly skilled professionals increasingly expect flexible roles, global career pathways, and access to innovation-driven projects, complicating talent management, shows data from the ILO.

Beyond technical skills, fostering a culture of continuous learning and digital adoption is critical. Change management strategies include promoting inclusivity, supporting multi-generational learning, leveraging AI for objective talent assessment, and implementing predictive analytics for retention and workforce planning. These approaches help align employees with organizational digital objectives while supporting operational agility.

“It is not possible to implement AI without a robust data system. It is like constructing a building without foundations,” stated Rodrigo Piña, Chief Human Resources Officer, Ternium. However, technology is not a one-size-fits-all, nor the end goal. “Technology is not an end in and of itself; it is necessary to adapt it to the needs of every company,” said García, underlining the importance of practical implementation over technological hype. 

Adopting technology, however, does not mean disregarding talent. “When using AI, a human is always necessary to ensure that the information it reports is correct,” said Rodrigo Carrasco, Business Development Leader for Latin America, UKG. Adaptation is crucial: “Technology should be easy to use. An ideal scenario would be to allow employees to work from their mobile phones,” reinforcing the need for accessible, human-centered tools.

Mexico’s manufacturing sector is moving from production toward R&D and innovation hubs, particularly in EVs, aerospace, and automation. “Mexico is closely competing with China, which has 800 robots for every 10,000 workers,” highlighted Sillas, illustrating the competitive pressures driving digital talent investment.

Investments in digitally skilled talent are expected to improve productivity, operational efficiency, and decision-making. Metrics for measuring impact include reduced time-to-hire, lower turnover, increased skill proficiency, enhanced workforce traceability, and faster adoption of AI-enabled processes. Public-private partnerships, talent tech platforms, and AI-driven upskilling ecosystems are expected to continue strengthening the pipeline of digitally capable professionals.

By integrating workforce readiness with strategic innovation, companies can sustain competitiveness, enable technological autonomy, and maximize the ROI of their talent development programs.

“AI and data are not at the center, humans are. These are just tools meant to support humans,” concluded Sillas, underscoring the essential role of people in driving digital transformation.