Rapid technological and economic developments at a pan-European level have created a new landscape in the economy, environment, society and businesses within the European Union (EU). In a constantly evolving and highly competitive environment, businesses are called upon to adopt advanced technological solutions such as Artificial Intelligence (AI) applications, automated production systems, and robotic processes to optimize production procedures, enhance efficiency, and maintain their competitiveness.

The adoption of advanced technological solutions is a necessary step for business sustainability and growth. However, their actual utilization depends on the presence of a suitably trained workforce. Nearly two-thirds (63%) of small and medium-sized enterprises (SMEs) in the EU struggle to find employees with the required skills. This percentage is even higher in Greece, reaching 77%, revealing a significant structural problem in the labor market. One of the key factors contributing to the deepening of the skills gap is Brain Drain, the mass exodus of skilled workers abroad over the past 15 years. This talent drain exacerbates the shortage of specialized professionals essential for a country’s economic development, healthcare systems, education, and technological progress.

To meet the changes in modern industry, employees must adapt to new technologies and undergo training. Acquiring digital and green skills, along with developing horizontal skills such as critical thinking, adaptability and problem-solving, has become a crucial requirement for business sustainability, growth and competitiveness. For both large manufacturing enterprises and, even more so, for SMEs, the lack of time and, primarily, the lack of funding for employee training often hinder the process. Consequently, employees do not develop as fast as the labor market demands and fail to acquire the necessary tools for their daily work responsibilities.

Is There a Solution?

The European Union (EU) has recognized the skills gap as one of the biggest challenges for the future of European industry, incorporating it into its central strategies. Through the European Year of Skills 2023, the European Skills Agenda and the Pact for Skills, the EU aims to bridge the gap between labor market demands and workforce capabilities. Based on Eurobarometer research (the EU’s statistical tool), the EU proposed a series of non-legislative measures in 2023 to support businesses, focusing on SMEs. Simultaneously, the EU invests in targeted funding programs such as HORIZON Europe, as well as national co-financed programs in each member state, thereby strengthening educational actions tailored to industry needs.

Since March 2024, the Strategic Technologies for Europe Platform (STEP) of the European Commission has supported upskilling and reskilling efforts for innovative STEP projects, enhancing the skills needed for developing critical technologies. By mobilizing and directing funding toward three key investment sectors – Digital Technologies and Advanced Innovation, Clean and Resource-Efficient Technologies, and Biotechnologies – STEP strengthens Europe’s workforce. Additionally, the introduction of the new STEP Seal provides European recognition for high-quality projects, increasing their visibility and facilitating access to alternative funding sources.

The Role of EIT and EIT Manufacturing

As part of its strategy to enhance the competitiveness of European industry and bridge the skills gap, the European Institute of Innovation and Technology (EIT) has been offering solutions to address these challenges. This organization focuses on linking education, research and industry to accelerate the development of innovative solutions and strengthen Europe’s transition to the digital and green era.

One of EIT’s most ambitious programs, designed to educate 1.000.000 people in digital and green skills for addressing manufacturing challenges, is the Deep Tech Talent Initiative. As part of the New European Innovation Agenda, EIT aims to close this gap by prioritizing secondary school students, higher education students and working professionals who need additional skills. This initiative offers courses and funding for developing new or expanding existing educational materials. Simultaneously, EIT mobilizes its network of over 3,200 partners to create a strong alliance of education providers, companies, higher education institutions, public authorities, and funding partners.

Regarding manufacturing, EIT Manufacturing serves as the primary pillar within EIT for enhancing the manufacturing industry through innovation and education. Within this framework, EIT Manufacturing South East, headquartered in Greece, is the main implementation body of this strategy in Southeast Europe. It focuses on the needs of manufacturing by developing innovative education and technology solutions that strengthen business competitiveness and sustainability. Through collaborations with universities, research centers and industry partners, it contributes to the creation of a strong knowledge and innovation ecosystem, ensuring that the workforce is adequately prepared for the challenges of modern manufacturing.

To support this strategy and meet the needs of employees, businesses and young professionals, EIT Manufacturing South East has developed targeted educational programs. These programs are aimed at industry executives, young professionals and students, equipping them with the necessary tools to adapt to modern technological demands while offering them the opportunity to gain practical experience and prepare for the job market.

Teaching Factories Workshop Series

This specialized educational program is designed for industrial sector professionals, providing them with the opportunity to gain practical knowledge on modern manufacturing technologies. Participants attend a series of interactive lectures and presentations, focusing on real business challenges and analyzing the best practices already applied in the industry. The program includes specialized workshops, where industry experts showcase the latest manufacturing technologies. Employees gain familiarity with both technical skills (hard skills), such as the use of automated production systems, and horizontal skills (soft skills), such as change management and collaboration in digital environments. After acquiring the necessary knowledge, participants are encouraged to apply these new technologies in their own company or their workplace.

Gen Z Innovators: From Classroom to Industry

This innovative program is aimed at universities, students and young professionals, who wish to gain firsthand experience in the manufacturing industry during their studies. It begins with visits to industrial companies, where participants observe production lines, modern technologies in action and real challenges in manufacturing. Through expert presentations and the analysis of real industrial case studies, students gain insights into the latest manufacturing trends and understand the sector’s requirements. Subsequently, each participating company assigns students a real business challenge related to its production process. With guidance from EIT Manufacturing South East, students develop and present innovative solutions, with the best ideas receiving support from EIT Manufacturing South East to evolve into startups.

The European manufacturing industry cannot survive without a specialized workforce. Companies must invest in education, employees must pursue new skills and governments must create a favorable framework for these efforts. As the United States and China rapidly advance in the manufacturing sector, the European Union must take decisive action to compete with these markets and ecosystems. Therefore, the survival and future success of European industry depend on the adoption of new technologies and the appropriate training of personnel.