by Joe Brunner, CPA

Manufacturers are entering a leadership transition unlike anything the industry has faced before. Rather than the “Great Resignation” that disrupted many sectors during and after the pandemic, manufacturing is now confronting a “Great Retirement.” According to a survey by the , 82% of respondents  are leaving the manufacturing industry because of retirement or health-related reasons.

The numbers behind that shift are hard to ignore. Nearly one-quarter of the U.S. , and an estimated 1.84 million workers are expected to retire in the next five years.

While most workforce studies don’t isolate executives, the implications for leadership are clear:

• , with roughly 4.1 million Americans turning 65 each year through 2027.
• By 2033, the industry will need 3.8 million new hires, with nearly half those roles at risk of going unfilled.

Because leadership roles tend to skew older than the broader workforce, executive retirements are likely to happen faster — and earlier — than many organizations expect.

The takeaway is simple: a significant share of today’s manufacturing leadership will transition out over the next decade.

That makes succession planning more urgent — not less.

&˛Ô˛ú˛őąč;“When key leaders exit without a clear transition strategy, the impact is immediate, says Joe Brunner, Pinion’s lead manufacturing advisor. “Decision-making slows. Priorities blur. Teams lose direction. Institutional knowledge, customer relationships, and technical expertise can disappear almost overnight.”

The longer-term effects can be even more damaging. Organizations without leadership continuity often lose strategic momentum, becoming reactive instead of intentional. For owners and shareholders, the stakes are higher still — companies that rely heavily on a few individuals are harder to finance, harder to sell, and more vulnerable during unexpected events.

The takeaway is clear: waiting increases risk. Getting started doesn’t have to be complicated.

Five Steps to Get Started

1. Clarify Direction Before Choosing Leaders

“The biggest challenge we see is companies jumping into succession planning before they’ve clearly defined their future goals or the legacy they want to build,” says Brunner.

Without that clarity, succession planning becomes reactive. Organizations may identify potential successors but lack a clear framework for evaluating whether those leaders are equipped to guide the business through its next phase of growth.

For that reason, the most effective succession plans begin with strategy. When leadership has a shared understanding of where the company is headed, it becomes far easier to identify, develop, and prepare the right people to lead it there.

• Treat Succession as a Process, Not a Project

“Succession planning should not be viewed as a one-time initiative but as a long-term process that evolves with the company and its leadership pipeline,” says Marc Johnson, Pinion’s lead advisor for equipment dealerships.

That long‑term view also requires expanding how organizations define succession planning in the first place.

As Donna Funk, lead biofuels advisor at Pinion, notes, “Succession planning shouldn’t stop at the CEO or CFO level. Every role eventually evolves or turns over, so organizations need to think holistically about who might step in across the business.”

• Broaden the Conversation

Some business owners attempt to handle succession planning alone or limit discussions to a small leadership group. But effective succession strategies usually require input from multiple perspectives across the organization.

“A good succession plan is never done in a vacuum,” Brunner says. “The process should include a good mix of people from different roles and backgrounds who can challenge assumptions and identify blind spots leadership may not see.”

• Separate Relationships From Readiness

Family‑owned and closely held manufacturers face added complexity when leadership transitions involve relatives. While family involvement can be a strength, leadership decisions must ultimately be grounded in capability and preparedness.

As Bryce Gibbs, lead advisor for food and beverage manufacturers at Pinion, emphasizes, “Companies must be willing to honestly evaluate potential successors — not by their last name or their bloodline — but by their leadership capabilities and readiness to guide the company forward.”

• Start Early to Avoid Reactive Decisions

“The number one thing I tell clients is don’t wait until you have the perfect solution,” says Funk. “The longer you delay trying to perfect the plan, the further behind you’ll fall. The key is simply to start and work through what succession planning needs to look like for each role.”

Delaying succession planning until a retirement or unexpected event forces action often leads to rushed decisions. Leadership transitions typically require 12 to 24 months — or more — to transfer responsibilities and develop successors.

Johnson puts it plainly, “Sometimes that proverbial bus comes down the road and companies suddenly need to replace a key executive immediately.”

Looking Ahead

Succession planning done well is not about replacing people. It is about preserving momentum, protecting enterprise value, and preparing the organization for what comes next.

You don’t need a perfect plan to begin — but you do need to start.

Ask yourself one question: If a key leader stepped away tomorrow, who would step in — and how confident are you in that answer?

If that question gives you pause, you’re not alone. Many manufacturers know succession planning matters — they just haven’t taken the first step.

Ready to get started? Connect with a Pinion succession planning expert to start your plan.

| Member since 2014

Pinion is a top-100 U.S. accounting and strategic advisory firm specializing in food and agriculture, with a 90-year history (formerly KCoe Isom). They provide comprehensive consulting—including tax, sustainability, and policy—to producers, processors, and agribusinesses, with growing international reach

October 3 @ 1:00 pm: Succession and Legacy: Insights on Plan Successes and Challenges. While it might not be ‘rocket science’ in nature, there are often complexities and unknowns that deter businesses from getting started with legacy planning. But every business advisor will tell you the surest way to secure the legacy of your business is to have a strong succession plan.
October 10 @ 1:00 pm: Taxes on Buying & Selling Out-of-State: Best Practices to Mitigate Exposure: Buying and selling products close to home is long gone. State regulators have been ramping up audits and it is imperative for businesses who are exposed to other jurisdictions for taxation to be informed on different types of tax exposure.

For a complete listing of webinars go to:

Members of this Association represent success stories, many of which are also family stories. These stories include innovation, risk, sacrifice, and exhausting effort. They are stories with heart, and that sometimes makes it difficult to write the chapter in which the main character surrenders the lead role.

It can be tough to talk about succession, especially now, when there is little time to talk about anything, said Justin Mentele. The intensity and challenge facing the farm equipment industry may, in fact, serve as a catalyst for many leaders to consider now the right time to step aside and slow down.

When it is time to consider a transition in leadership and ownership, you should first define two terms that can create confusion: estate planning and succession planning.

Estate planning covers the transition of financial wealth or physical assets from one generation to the next. The process typically begins during one’s lifetime, but often does not complete until after death. This hand-off process requires difficult decision-making and thoughtful planning.

Succession planning is based less on physical and more on psychological transitions. At the heart of succession planning is a person, or group of people, who have been in control of the day-to-day and strategic operations of a company. It represents what can be the emotional task of transitioning control to others. The process of co-creating psychological ownership of the vision, strategy, goals, decisions, performance, and results of the company is not easy.

Both types of planning are critically important!

Talk to a Professional at Pinion
The Association has formed a partnership, with Pinion, to offer members no-cost, confidential, 60-minute consultations on succession planning and mergers and acquisitions.

To take advantage of this member benefit, contact Justin Mentele at Pinion at (463) 209-7606 or Justin.Mentele@PinionGlobal.com.