A proactive workforce planning strategy is essential for overcoming talent challenges and ensuring timely, cost-effective execution of aerospace and defense programs, writes Adrian Morrissey
The aerospace and defense (A&D) industry is at a pivotal crossroads. As global demand for advanced defense systems, commercial aircraft, and space exploration continues to rise, A&D organizations are grappling with an escalating talent crisis. Workforce shortages, high attrition rates, and inadequate workforce planning are threatening the industry’s ability to execute complex programs on time and within budget. For A&D organizations to maintain operational effectiveness, innovation, and competitiveness, addressing these talent challenges must be a strategic priority.
Table of Contents
The Workforce Challenge: A Growing Headwind
The industry has long been recognized for its reliance on highly skilled professionals—engineers, technicians, project managers, and supply chain specialists—whose expertise directly impacts A&D project management. However, several key factors are converging to create a perfect storm for talent retention and attraction.
1. High Attrition Rates & Retirement Cliff
The A&D industry is experiencing attrition rates of 13%, significantly higher than the U.S. average of 3.8%. This is compounded by the retirement cliff, where 25% of the workforce has 20+ years of experience and is at or beyond the eligible retirement age. These departures result in a severe loss of institutional knowledge, creating significant gaps in program continuity and execution.
2. Lack of Employee Empowerment & Engagement
Many employees, particularly mid-career professionals, feel disconnected from decision-making processes due to outdated tools, rigid workflows, and bureaucratic structures. 60% of mid-career employees feel they lack the necessary resources to drive change, leading to frustration and disengagement. In an industry where precision and execution are critical, disengaged employees pose a serious risk to productivity and innovation.
3. Onboarding & Development Gaps
A&D organizations struggle with insufficient onboarding and development programs, leading to high early-stage turnover. Nearly 50% of hourly employees leave within their first four months, citing a lack of career mobility, unclear career progression paths, and inadequate training as primary reasons for departure.
4. Inadequate Workforce Planning
Many A&D organizations rely on reactive, short-term workforce strategies rather than proactive, long-term strategic planning. The industry has traditionally prioritized headcount fulfilment over strategic workforce planning, leading to inefficiencies in resource allocation, delayed project timelines, and inflated costs.
The Impact on Program Management
The inability to attract, retain, and develop talent has direct consequences on A&D organizations’ ability to execute large-scale projects effectively. The talent crisis contributes to:
- Project delays: lack of skilled personnel leads to execution bottlenecks, causing costly overruns.
- Increased costs: higher turnover results in increased hiring, onboarding, and training expenses.
- Decline in innovation: a disengaged workforce and loss of senior talent slow down technological advancements and process improvements.
- Risk to national security & defense capabilities: inability to staff critical programs can weaken defense readiness and industrial base resilience.
A Strategic Path Forward: Leveraging PPM for Talent Optimization
To mitigate these workforce challenges, strategic workforce planning must become a core component of project portfolio management (PPM) strategies. Advanced PPM technology solutions can help A&D organizations optimize workforce utilization, forecast future talent needs, and improve overall program efficiency.
How PPM Can Drive Workforce Transformation
- Capacity planning & resource optimization – ensure the right talent is allocated to the right projects at the right time.
- Enhanced employee engagement – provides visibility into how individual contributions align with strategic objectives.
- Data-driven workforce planning – use predictive analytics to anticipate workforce shortages and plan succession strategies.
- Streamlined onboarding & knowledge transfer – digitize training and ensure smooth transitions when senior employees retire.
- Improved project visibility – centralized reporting and live dashboards allow leaders to identify workforce bottlenecks early.
Conclusion: Time for Action
The aerospace & defense industry cannot afford to ignore the growing workforce crisis. Organizations that proactively address talent retention, attraction, and strategic workforce planning will be better positioned to maintain competitive advantage, execute projects on time, and drive future innovation.
Cora GovCon empowers A&D organizations to bridge the talent gap, optimize resource allocation, and ensure business continuity in the face of these workforce challenges. The ability to wrap a digital process around an organization’s workforce planning strategy is mission critical—because without a strong, engaged workforce, even the most advanced aerospace and defense programs cannot take flight!
Further Insights
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