The Great American Skills Gap: How a Shortage of Manufacturing Workers is Impacting Global Competition
The U.S. manufacturing sector is facing a significant challenge in the form of a widening jobs gap over the next decade, a recent study has revealed. The report by Deloitte and the Manufacturing Institute paints a stark picture, projecting that as many as 3.8 million additional employees will be needed in the manufacturing sector between 2024 and 2033. This necessity arises from the impending retirement or career changes of current workers, as well as the creation of new roles within the industry. However, there’s a catch – as the sector’s demand for higher-skilled workers escalates, up to half of these positions, approximately 1.9 million jobs, may go unfilled if the skills and applicant gaps are not effectively addressed.
The implications of leaving these positions vacant could be dire, not just for individual companies, but for the U.S. manufacturing industry as a whole. Failure to fill these crucial roles could significantly impede companies’ growth prospects and compromise the industry’s global competitiveness. Carolyn Lee, President, and Executive Director of the Manufacturing Institute, highlighted the post-COVID landscape, emphasizing the uptick in onshoring, reshoring, and new investments in manufacturing spurred by various factors including supply chain disruptions during the pandemic and recent legislative changes like tax reforms and infrastructure investments.
The manufacturing sector is currently grappling with over half a million job openings, as per the Bureau of Labor Statistics’ data. Lee stressed the importance of addressing the skills gap in highly specialized roles such as statisticians, data scientists, engineers, logisticians, and industrial maintenance technicians. These positions are currently in high demand with a significant number of openings, a trend expected to continue over the next decade. To bridge this gap, the industry must focus on upskilling and attracting workers through programs like Heroes Make America, designed to train transitioning service members for manufacturing jobs.
One of the key recommendations put forth by the study is the adoption of flexible scheduling as a strategy to attract and retain workers in the manufacturing sector. Lee underscored the significance of flexible work arrangements, with over half of respondents indicating its essential nature for manufacturing businesses looking to secure and maintain a skilled workforce. As the industry navigates the challenges posed by the impending jobs gap, proactive measures such as investing in training programs, promoting flexible work environments, and strategically addressing skills shortages will be vital in ensuring the continued growth and competitiveness of the U.S. manufacturing sector.
