For manufacturers across the Middle East, workforce challenges are as consistent as the hum of factory machinery. It’s a region built on global ambition, but also one that leans heavily on an expat workforce.

That means higher staff turnover, seasonal slumps around summer and Ramadan, and a constant struggle to match labour supply with shifting demand. For many manufacturers, the workforce challenge is less about having too few people and more about not having the right people, in the right place, at the right time.

When production peaks collide with holidays or staff attrition, the ripple effects reach every part of the operation resulting in delayed shipments, safety risks, frustrated customers, and, often, exhausted teams. The reality is that manufacturers are still spending far too much time firefighting predictable problems.

by Vibhu Kapoor, Regional Vice President - Middle East, Africa & India, Epicor

What Happens Without Workforce Planning?

Without proactive workforce planning, even the most advanced operations are vulnerable to inefficiency and avoidable costs. Labour costs surge when manufacturers overhire during slow periods or scramble to fill unexpected gaps with expensive temporary workers. McKinsey has found that nearly a quarter of distributors still cite worker turnover as their biggest operational challenge. This isn’t because it’s unpredictable, but because they’re reacting to it rather than planning for it.

Poor planning doesn’t just affect balance sheets; it affects people. When teams are stretched thin, morale suffers. Overburdened staff are more likely to burn out, call in sick, or even leave altogether, exacerbating the very problem employers are trying to solve. This human cost often manifests in lower productivity, higher absenteeism, and even increased safety incidents. And once delays begin to cascade through supply chains, customer satisfaction inevitably takes a hit.

These are the symptoms of an industry operating without a clear view of its most vital resource: its people. But while the challenge is human, the solution increasingly isn’t, or at least, not entirely.

AI Offers the Answer (But Not the One You Might Expect)

It’s easy to assume that when artificial intelligence enters the conversation, it’s about automation replacing human roles. That dystopian narrative of robot-run factories makes for catchy headlines, but it doesn’t reflect reality. In truth, AI’s most transformative role in manufacturing isn’t to replace people, but rather to help organisations use their people better.

That’s where workforce planning, powered by AI, comes in.

Workforce planning is the art and science of aligning the right people with the right skills in the right place, at the right time and cost. When done well, it allows manufactueres to forecast needs, fill labour gaps before they appear, and allocate resources with precision. In essence, it ensures people are deployed strategically rather than reactively.

Organisations that embed workforce planning directly into their operations are more resilient and agile. They experience fewer disruptions, greater employee engagement, and higher retention.

What World-Class AI Tools Deliver

Of course, not all AI solutions are created equal. Many can process numbers, but only the best can translate those numbers into insights leaders can trust. The most effective tools have several key capabilities worth seeking out.

The first is built-in labour forecasting that mirrors the shop floor reality. Rather than relying on generic templates, advanced systems sync labour needs with real operational rhythms — from machine downtime and inbound shipment schedules to known seasonal dips. This minimises unpleasant surprises, like being short-staffed during Eid or overstaffed during a slow summer.

Second, skills-based scheduling ensures that the right person is always assigned to the right job. AI doesn’t just consider availability; it factors in certifications, equipment access, and even proximity on the shop floor. That translates to safer operations, faster workflows, and reduced downtime.

Finally, real-time visibility allows managers to see how staffing decisions impact cost per unit, throughput, and service levels. It’s one thing to know you’re understaffed; it’s another to understand exactly how that shortfall will affect your customer SLAs. With AI-powered dashboards, patterns like recurring overtime spikes or skill gaps become visible early enough to address, not just endure.

The Power of Planning Ahead

With the right AI-enhanced system, manufacturers can simulate different labour scenarios and prepare accordingly, just as they would for inventory management. The technology can recommend shift adjustments, flag mismatched skills, or reassign tasks to maximise both productivity and employee wellbeing.

And industry leaders are clearly moving in this direction. In a 2024 McKinsey survey, 70% of logistics and supply chain leaders said they plan to invest US$100 million or more in warehouse automation and labour optimisation over the next five years. These investments aren’t about removing people from the process. They’re about giving them the tools to succeed within it.

Manufacturing is getting more complex, not less. Labour is scarcer, customer expectations are higher, and volatility has become the norm. The manufacturers that thrive won’t be the ones that hire faster or push harder. Instead, they’ll be the ones that plan smarter, using AI to anticipate challenges and protect their most valuable asset: their workforce.

In a sector where every fractional gain in efficiency counts, AI-driven workforce planning isn’t just another piece of technology. It’s a force multiplier which ensures human talent remains at the heart of the manufacturing future.