Demand is Growing
As someone who works closely with aerospace and defense industry employers, I see this challenge every day. The industry is entering one of the most significant growth periods in its history. Rising defense spending, strong commercial aviation demand, and rapid advances in AI and digital technologies are creating tremendous opportunities.
The numbers tell the story. As reported in our Aerospace and Defense report, Mission 2030:
Global military spending reached a record $2.7 trillion in 2025.
In the commercial sector,
Boeing and Airbus reported a combined backlog of roughly 14,000 aircraft
Although the U.S. aerospace and defense workforce is growing (it now totals 2.23 million employees), the need is still great. I've seen organizations delay projects simply because key engineers or technical specialists were unavailable. The problem wasn't strategy or funding — it was workforce capacity.
What Skills Are Aerospace and Defense Industry Employers Having the Hardest Time Finding?
The greatest shortages exist in engineering, skilled technical occupations, AI-related capabilities, cybersecurity and advanced manufacturing roles.
Engineering Talent Remains the Foundation
Engineering continues to be the backbone of the aerospace and defense workforce. Some of the most difficult roles to fill include:
- Mechanical engineers
- Aerospace engineers
- Systems engineers
- Manufacturing engineers
- Electrical engineers
- Engineers with active security clearances
These roles are essential for everything from aircraft design and systems integration to advanced manufacturing and product development.
Skilled Technical Roles Are Equally Critical
While engineering often receives the most attention, skilled technical talent is equally important.
Frequently requested roles include:
- Maintenance technicians
- Quality technicians
- Manufacturing technicians
- Automation technicians
- Engineering technicians
- CNC machinists
- Quality inspectors
Without these professionals, production schedules become difficult to maintain and quality standards become harder to sustain.
Are AI and Digital Skills Now Essential?
Digital transformation is reshaping aerospace and defense, requiring new skillsets to match. Organizations increasingly need engineers and technicians who can support:
- AI-enabled engineering and design
- Digital twins
- Predictive maintenance
- Data analytics
- Advanced simulation
- Cybersecurity
These skills are becoming core competencies required across engineering, manufacturing, and operations teams.
Soft Skills Matter More Than Ever
Technical expertise alone is no longer enough. As programs become more complex and multidisciplinary, employees must be able to work across functions, solve emerging challenges, and adapt quickly to changing technologies.
Many employers now prioritize:
- Communication
- Collaboration
- Adaptability
- Critical thinking
- Problem solving
What Is Causing Aerospace and Defense Talent Shortages?
Workforce aging, technological change, intense competition for talent, skills mismatches and high turnover are all contributing to ongoing talent shortages.
An Aging Workforce Is Reshaping the Industry
A significant portion of the aerospace workforce is approaching retirement age.
Approximately 25% of aerospace employees are over age 55.
Retirement-driven knowledge loss continues to accelerate. It’s no surprise that our Aerospace and Defense Report reveals that,
55% of manufacturers believe aging workforces and retirements will significantly impact hiring strategies.
Replacing a retiring engineer often means replacing years of experience, relationships and operational expertise—not just filling an open position.
High Attrition Is Making the Problem Worse
Talent shortages become even harder to manage when organizations struggle to retain employees.
Recent industry research found a troubling statistic.
Aerospace and defense attrition remains near 15%, more than double the average across other U.S. industries.
Here’s what happens when vacancies remain open:
- Existing employees absorb additional work
- Overtime becomes more common
- Burnout risk increases
- Innovation slows while teams focus on maintaining operations
Universities Are Not Producing Talent Fast Enough
The industry's talent needs are evolving faster than educational systems can adapt.
Many new graduates require additional development in areas such as:
- AI literacy
- Digital engineering
- Systems engineering
- Advanced analytics
- Cybersecurity
As technology continues to advance, employers cannot rely solely on traditional educational pathways to meet future workforce needs.
Competition From Technology Companies Is Intense
Aerospace and defense organizations are competing for many of the same candidates sought by major technology companies.
Today's engineers often have multiple career options. Compensation remains important, but candidates are also evaluating:
- Career advancement opportunities
- Flexibility
- Purpose-driven work
- Access to innovation
- Continuous learning
Organizations that fail to offer a compelling employee experience may struggle to attract top talent.
How Do Talent Shortages Affect Aerospace and Defense Organizations?
Talent shortages impact production timelines, innovation initiatives, cybersecurity readiness, growth plans and overall competitiveness.
Critical Projects Take Longer to Complete
When key engineering or technical positions remain open:
- Product development timelines can slip.
- Production goals become harder to achieve.
- Contract delivery schedules may be affected.
- Existing backlogs become more difficult to reduce.
Experienced Employees Face Greater Burnout Risk
Talent shortages often create a ripple effect throughout an organization.
Engineers and technical specialists are frequently asked to:
- Cover open positions
- Manage larger workloads
- Support multiple projects simultaneously
Over time, that pressure can reduce engagement and increase turnover, creating a cycle that becomes increasingly difficult to break.
Skills Gaps Can Slow Digital Transformation
Many aerospace and defense organizations are investing heavily in:
- AI-enabled engineering
- Digital twins
- Advanced analytics
- Predictive maintenance
- Cybersecurity modernization
However, technology investments alone do not create transformation. Organizations need people who understand both the technology and the operational environment to implement these initiatives successfully.
Long-Term Growth Can Be Limited
Perhaps the biggest risk is missed opportunity.
Without sufficient talent, organizations may struggle to:
- Support new contracts
- Expand production
- Scale operations
- Capitalize on growth in commercial aerospace, defense, and space technologies
How Can Aerospace and Defense Employers Build a Stronger Talent Pipeline?
To build robust talent pipelines, leading organizations are expanding talent sources, investing in workforce development, adopting flexible talent strategies and improving workforce planning.
1. Expand Beyond Traditional Talent Pools
Many employers are finding success by recruiting from nontraditional backgrounds.
For example, Manpower assisted Babcock, a leading British aerospace and defense services company, with identifying transferable skills from candidates with backgrounds in:
- Scientific fields
- Logistics
- Education
- Public administration
Additional talent sources include:
- Military veterans
- Adjacent industries
- Career changers
- Skilled trades professionals
2. Invest in Upskilling and Microcredentials
Rather than relying exclusively on external hiring, it’s important that organizations build talent internally.
High-impact development areas include:
- AI literacy
- Digital engineering
- Systems engineering
- Cybersecurity
- Technical certifications
Upskilling not only closes skills gaps, but also supports employee engagement and retention.
3. Combine Permanent and Flexible Talent Strategies
Permanent employees remain essential, but workforce agility has become increasingly important.
Many employers are augmenting full-time teams with:
- Contract engineers
- Project-based specialists
- Technical consultants
- Specialized manufacturing talent
This approach helps organizations respond quickly to changing priorities while maintaining operational continuity.
4. Use Workforce Analytics to Plan Ahead
The most successful organizations are becoming increasingly proactive.
Workforce analytics can help leaders:
- Forecast future shortages
- Identify emerging skill requirements
- Improve recruiting effectiveness
- Strengthen succession planning
The earlier organizations identify talent risks, the easier those risks become to address.
What Will Define Successful Aerospace and Defense Employers in the Years Ahead?
Winning organizations will need to do more than simply hire more talent — they'll build talent differently.
The aerospace and defense employers that thrive through 2030 and beyond will combine workforce planning, continuous upskilling, flexible talent strategies and stronger alignment between business and workforce objectives.
Key Takeaways
- Demand for aerospace and defense talent continues to rise.
- Engineering, AI, manufacturing, cybersecurity, and technical skills remain difficult to find.
- Aging workforces and high attrition are accelerating shortages.
- Organizations must rethink recruiting, training, and workforce planning.
- Investment in talent is becoming a competitive differentiator.
At Manpower, we help aerospace and defense organizations connect with engineering, skilled technical, manufacturing and technology talent while building workforce strategies designed for long-term resilience. Whether the goal is filling critical roles, expanding project teams or developing future-ready capabilities, proactive workforce planning can help organizations stay ahead of growing talent challenges.
About the Author
Frank Armendariz
SVP Commercial Staffing and Engineering, Manpower
Frank Armendariz is a seasoned workforce solutions leader with extensive experience driving growth, transformation, and operational excellence across the staffing industry. As Senior Vice President, Frank leads commercial staffing operations and engineering workforce solutions across the United States while also supporting franchise partner relationships to expand market reach and deliver exceptional client outcomes.
Throughout his career, Frank has been at the forefront of organizational transformation initiatives, helping businesses adapt to changing workforce dynamics through innovative talent strategies, technology adoption, and customer-focused solutions. He is passionate about building high-performing teams and aligning sales, operations, and recruitment organizations to create sustainable growth and deliver measurable value for clients.
