US Manufacturer Shortage Threatens Global Competitiveness

A recent study by Deloitte and the Manufacturing Institute (MI) reveals a concerning trend in the U.S. manufacturing sector—a widening jobs gap projected to persist over the next decade, despite post-COVID growth. Between 2024 and 2033, an estimated 3.8 million additional workers will be required due to retirements, career shifts, and industry expansion. However, up to half of these positions, around 1.9 million jobs, may remain unfilled without addressing skills and applicant gaps, potentially hindering future growth and global competitiveness.

Carolyn Lee, President and Executive Director of the Manufacturing Institute, emphasizes the impact of recent events like COVID and policy changes on manufacturing investment in the U.S. “Since COVID, we have seen a real focus on onshoring, reshoring, and of course new investment,” she stated. Factors such as supply chain disruptions during the pandemic and policy reforms like tax adjustments and infrastructure bills have spurred investment in domestic manufacturing.

Despite over half a million job openings in the sector, the demand continues to outstrip available talent. Although the number of openings has slightly decreased in recent months, the challenge remains persistent. Lee highlights the struggle, noting, “We’ve been hovering around 500,000 jobs open every month for about the last six years.” She further explains the need to attract individuals who may be underemployed or on the sidelines and tap into new talent pools.

The study underscores the demand for highly skilled roles, including statisticians, data scientists, engineers, logisticians, computer specialists, and industrial maintenance technicians. Lee stresses the diversity of skill levels required, stating, “Some of the open jobs are available to people with six weeks of training, and some are six or eight years of training – we have that much of a range.”

Challenges in building and retaining a skilled workforce have consistently ranked among the top concerns for manufacturers. Lee emphasizes the impact on operations, stating, “They’re not expanding their business, they’re not introducing new product lines, they’re not expanding their production because of the challenge they have with labor.”

To address these challenges, initiatives like Heroes Make America aim to attract and train transitioning service members for manufacturing roles. The study highlights the importance of training and upskilling workers, with employees 2.7 times less likely to leave an organization if they perceive an investment in training for career advancement.

Flexible work arrangements are identified as crucial for attracting and retaining manufacturing workers. While remote work may not always be feasible due to production requirements, Lee suggests flexible scheduling as a compelling option. “There’s a lot of creativity going on in the sector,” she remarks, highlighting the innovative approaches being adopted to accommodate workforce needs while supporting production demands.

Source: FoxBusiness.com