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Analysis

The State of ERGs in Manufacturing

Employee Resource Groups (ERGs) remain an essential part of the inclusion and engagement landscape in manufacturing. An ERG survey conducted by Manufacturers Alliance, with responses from 32 companies shows that most groups are designed to foster community and belonging, while also providing opportunities for professional development and networking. Many are now evolving into Business Resource Groups (BRGs), reflecting a shift toward measurable business impact and closer alignment with organizational strategy.

Leaders emphasized both the promise and the pressures of ERGs. Respondents described how these groups amplify employee voice, open pathways for leadership development, and influence culture across organizations. At the same time, they highlighted persistent challenges, including sustaining engagement, securing resources, and demonstrating impact. This dual reality underscores the pivotal role ERGs play today: they are both safe spaces for connection and vehicles for advancing broader workforce and business priorities.

Key findings from the survey include:

  • ERGs remain centered on building community and belonging.
  • Most have consistent executive sponsorship, though budgets lag behind.
  • Engagement, leadership recruitment, and ROI measurement remain persistent challenges.
  • Many manufacturers are reimagining ERGs as BRGs to deliver greater business impact.

“ERGs are more than cultural groups—they’re leadership pipelines and drivers of workforce alignment.”

— Mandy Baeumel , Senior Vice President, People & Culture at Southwire

ERG Purpose and Focus 

Nearly 90% of respondents said their ERGs focus on building a sense of community and belonging, with 70% also emphasizing professional development and networking. A smaller but notable share reported ERGs influencing company policy and supporting recruitment and retention efforts. This blend of cultural and business priorities underscores the dual role ERGs play in driving both employee engagement and organizational outcomes.

As several participants shared, ERGs are not only safe spaces for connection but also vehicles for shaping talent pipelines and succession planning. Elizabeth Saha, Sr. Investor Relations Lead, Littelfuse explained, “The mentoring programs we launched through our Women’s ERG were so effective they were scaled into a company-wide initiative.” Examples like this illustrate how initiatives that begin within ERGs can expand into enterprise-wide programs, reinforcing their influence well beyond community building.

Several companies told us that networking was an important aspect of the groups, often focused on connecting women in the company or forming multi-generational connections. Executives talked about “speed networking,” coffee breaks, and outside conference opportunities.

Primary Focus of ERGs

Note: Some responses fall into multiple categories, so total exceeds 100%. 

Source: Manufacturers Alliance survey, September 2025

Most organizations maintain a broad portfolio of ERGs, including Women’s, Pride/LGBTQ+, Black/African American, Veterans, Hispanic/Latinx, Asian American/Pacific Islander, Employees with Disabilities, Working Parents, and Mental Health groups. Some reported newer or consolidated groups, such as multicultural networks, sustainability groups, and communities for remote workers. Others noted grassroots ERGs forming organically around shared values, later formalized with executive sponsorship and structure.

Some interviewees shared that it was difficult to incorporate production or hourly workers into the ERGs, but most strived to provide programming for those employees. Southwire has developed an ERG specifically for the production workers. “This group’s (TEAM) mission is to adapt initiatives from other Southwire ERGs—the Women’s Network, Veterans Network, Spectrum, Allied—and reimagine them in ways that resonate within our manufacturing and distribution environment,” said Mandy Baeumel, Senior Vice President, People & Culture at Southwire. “By doing so, we’re not only expanding access to meaningful programming, but also reinforcing our commitment to development and retention across all levels of the organization."

Organizational Support and Resources

The majority of ERGs benefit from executive sponsorship (87%) and access to communication channels (87%), with more than half also receiving assistance with event planning, mentorship programs, and leadership training for ERG chairs. More than two-thirds of respondents indicated consistent funding for ERGs, demonstrating broad support, though many manufacturers still have room to expand and sustain these investments.

Similarly, Gravity Research found that 84% of corporations now assign executive sponsors to ERGs, reinforcing expectations for visibility and accountability.

Manufacturing leaders described how support varies widely. Some ERGs operate with budgets, co-champions, and site-level leads to tailor activities for frontline employees—including production-focused groups designed specifically to ensure inclusion of hourly workers. Others rely heavily on volunteers and grassroots energy, supported primarily by executive goodwill and communication channels. Leaders consistently noted that where budgets and recognition are present, engagement and impact are stronger.

Resources Provided to ERGs

Note: Some responses fall into multiple categories, so total exceeds 100%. 

Source: Manufacturers Alliance survey, September 2025 

Leadership Engagement

Support from senior leadership varies across ERGs. Most groups report consistent sponsorship, though the level of support differs by type. For example, 71% of Black/African American, Hispanic/Latinx, Asian American/Pacific Islander, and Veterans/Military ERGs receive the highest levels of consistent backing, while Women’s Groups and Young Professionals groups are more evenly split between consistent and partial support. LGBTQ+/Pride groups receive 59% consistent support from leadership, according to respondents.

Industry research underscores this variability: Gravity Research found that nearly three-quarters of organizations consult ERGs to shape communications and gauge workforce sentiment. Manufacturing leaders consistently emphasized that direct executive involvement is transformative. In some organizations, senior leaders dedicate time to meet directly with ERG leaders and integrate feedback into company strategy, while others use rotating sponsorship models to ensure fresh perspectives. As one company noted, a recent wave of leadership turnover brought in new executives who were especially supportive and encouraging of ERGs—an example of how leadership attitudes can dramatically shift momentum and reinforce that visible engagement is the clearest signal ERGs matter.

Challenges and Barriers

Across companies, the most common challenges for ERGs included:

  • Low member engagement
  • Difficulty recruiting new leaders
  • Insufficient budgets or resources
  • Unclear goals or measures of success
  • Difficulty showing ROI

Participation data from virtual platforms (e.g., Zoom, Microsoft Teams) often provides an incomplete view of engagement, especially for frontline employees who lack regular computer access. “Virtual platform metrics don’t reflect true engagement—production associates aren’t online, but they’re showing up in person. We’re working to capture the real reach of our ERGs,” shared Elizabeth Saha, Senior Investor Relations Lead at Littelfuse.

Beyond this gap, leaders also acknowledged that while mentoring and networking programs are highly valued, their long-term impact on career progression remains difficult to measure. The absence of reliable metrics was repeatedly cited as a barrier to demonstrating the full business value of ERGs. Recommendations for metrics to track include membership numbers, participation rates, satisfaction rates, engagement, and retention metrics.

Evolution Toward BRGs

There is a shift from ERGs toward Business Resource Groups (BRGs) to better connect inclusion work to business outcomes. One manufacturer described intentionally reframing ERGs as BRGs to strengthen alignment with corporate priorities. As Darryl Castellano, Vice President, Global Inclusion, Diversity & Engagement at Wesco International, Inc., explained, “We purposely say we’re going to double-click on the ‘B’ in business resource groups. That means bringing your full self to work—including your day job—and leveraging what you do every day in advancing the BRG.”

By redefining their purpose, leaders emphasized not just community-building but measurable contributions to outcomes like talent retention and workforce diversity. The company backed this up with executive sponsors, healthy budgets, charters, and elections to ensure accountability and fresh leadership. “From day one, our BRGs have been aligned to our ultimate goals of diversifying the workforce, becoming a great place to work, and retaining talent. As long as they stay in line with that mission, they receive a lot of support from the organization,” Castellano noted.

As part of these changes, cross-group collaboration expanded into areas such as wellness and succession planning, and some BRGs even created divisions focused on community outreach and business partnerships. This structure elevated visibility, broadened participation, and reduced duplication—positioning BRGs as both inclusion champions and strategic business partners.

A McKinsey study found that ERGs with strong systems and executive sponsorship can deepen retention by helping underrepresented employees feel more authentic, connected, and supported at work.

Spotlight: Women’s ERGs

Women’s ERGs remain the most common and often the most active across manufacturing. All survey respondents reported having one, and membership is typically larger than that of other ERGs. Despite reporting somewhat lower levels of consistent executive sponsorship compared to other groups, these networks continue to thrive due to their visibility, broad relevance, and historical roots within diversity and inclusion efforts. These groups frequently serve as flagship models, offering professional development opportunities, mentoring, and networking events. One respondent noted, “The women’s network is the most active but relies on members and leadership to provide the programming." 

Survey respondents and manufacturing leaders pointed to the visibility and influence of Women’s ERGs. Leaders explained that Women’s ERGs often serve as a starting point for broader inclusion initiatives, making them a natural hub for engagement, mentoring, and development. As Wesco’s Castellano put it, “The women’s group has been the most impactful and the most visible—it has become our largest and most active BRG.” Their programs—ranging from leadership book clubs and mentorship networks to sponsorship for external conferences—tend to be highly visible, which helps sustain participation even when funding or executive attention fluctuates.

Wesco highlighted how Women’s ERGs can evolve into powerful business resource groups. Their Women’s Impact Network is the company’s largest BRG, with nearly 2,000 members across the globe. Leaders emphasized its structure—elected officers, executive sponsors, and subcommittees focused on professional development, community outreach, and business partnerships—which made it a model for other groups. According to Castellano, “They are the ones raising the bar for all other BRGs.”

However, activity does not always equate to measurable outcomes. While Women’s ERGs regularly host events and draw strong participation, respondents acknowledged that linking those efforts to tangible results—such as advancement into leadership roles or improved retention—remains an ongoing challenge.  

Despite the extra scrutiny on outcomes, women’s ERGs have also become incubators for innovation and advocacy. One company hosted more than 100 small-group coffee breaks annually, while another introduced workplace initiatives like sustainable women’s products. Another manufacturer described how global mentoring initiatives launched through their Women’s ERG proved so effective they were scaled into a company-wide program overseen by HR.

This mix of visibility, innovation, and pressure illustrates both the opportunity and challenge of positioning Women’s ERGs as flagships within broader ERG portfolios.

Women ERGs: Strong Membership, Uneven Support, and Persistent Challenges

Source: Manufacturers Alliance survey, September 2025 

Conclusion 

In today’s manufacturing environment, ERGs are more than affinity groups; they are bridges between cultural engagement and business alignment—amplifying employee voice, shaping culture, and advancing strategic priorities across the sector. While these groups have long been valued for fostering belonging and inclusion, there is growing momentum to connect them more directly to business priorities.

Survey respondents emphasized that the next evolution for ERGs is to move beyond programming and community-building toward measurable business impact. Many noted that linking ERG initiatives directly to outcomes such as recruiting, retention, and innovation remains a key opportunity. As one respondent summarized, “Connecting ERGs to business impact is an important next step for us.” By aligning ERG activity with tangible results, manufacturers can ensure these groups are not simply cultural add-ons, but essential drivers of business success.

Members Only

For a deeper dive into which ERGs are most common, the resources they receive, and the specific challenges they face, members can review the full survey results. This data provides a detailed look at how manufacturers are structuring, resourcing, and reimagining these groups as they evolve into BRGs.