We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Talent shortage to hit manufacturing hard
Forward Thinking

Talent shortage to hit manufacturing hard

November 26, 2018
Supply Chain Quarterly Staff
No Comments

The thriving manufacturing sector could be stalled by an increasingly challenging labor outlook over the next 10 years, according to a study released this month by Deloitte LLP and The Manufacturing Institute, a division of the National Association of Manufacturers.

The study found that the shortage of skilled workers plaguing U.S. manufacturers today is only going to get worse in the years ahead. According to the groups' 2018 Skills Gap Study, the widening manufacturing skills gap is expected to grow from about 488,000 vacant jobs today to as many as 2.4 million manufacturing jobs left unfilled between now and 2028. The situation could cost the industry $454 billion in economic output in 2028, or 17 percent of U.S. manufacturing's gross domestic product (GDP) contribution, the study authors said.

"With nearly 2 million vacant new jobs expected by 2028, compounded by 2.69 million vacancies from retiring workers, the number of open positions could be greater than ever and might pose not only a major challenge for manufacturers but may threaten the vitality of the industry and our economy," Paul Wellener, vice chairman, Deloitte LLP, and U.S. industrial products and construction leader, said in a statement announcing the study's findings.

Five out of 10 open positions for skilled workers in U.S. manufacturing remain unoccupied today due to the skills gap crisis, the survey authors said. In addition, nearly two-thirds of manufacturers listed the issue as their top concern and said they expect it to get up to three times worse over the next three years. Nearly half of the survey respondents (45 percent) said that a negative perception of the manufacturing industry is the main reason positions tend to go unfilled, according to the study.

The study also found that manufacturers are developing new strategies to try and shrink the skills gap:

83 percent of companies said they are increasing wages and eight percent said they have offered signing bonuses;

More than three-quarters (77 percent) said they are willing to compromise on the level of experience required and 65 percent said they may make concessions on the required skill set;

39 percent of respondents said they are adopting learning and development programs;

One-in-four (26 percent) manufacturers said they are turning to automated technologies to supplement open positions, and 59 percent said they are likely to rely on adding more automation to eliminate unfilled production jobs over the next three years.

Manufacturing
  • Related Articles

    To thrive in the future, manufacturing will have to get "smarter"

    Chip shortages, supply chain challenges spur consumer behavior changes

    Will U.S. manufacturing be back on top?

Recent Articles by Supply Chain Quarterly Staff

Freight sector missed the boat on strong U.S. economy in Q3 and Q4, FTR says

Freightos completes plan to go public on NASDAQ exchange, raises $80 million

Retailers lose visibility as they outsource last-mile delivery, FarEye says

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Forecasts call for freight rate slumps in 2023

  • Projected U.S. recession in early 2023 will soften freight market

  • Inflation drops again as interest rate hikes hit home, NRF says

  • How to avoid the next crisis: A new approach to supply chain agility

  • Five levers to build a resilient supply chain

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

  • THE NEW WAY TO WAREHOUSE: 4 Innovations in Automation & Robotics to Boost Warehouse Productivity

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing