The manufacturing industry may soon be facing a talent shortage as large as 1.9 million by 2033.
According to a study by Deloitte and The Manufacturing Institute, the industry could see a need for up to 3.8 million jobs between 2024 and 2033. But, without significant changes, more than 5 in 10 of those jobs could go unfilled.
Following the pandemic, the US manufacturing industry has seen a strong growth trajectory. And with evolving consumer demands, that growth is expected to continue over the next 10 years. However, the industry is also facing a skills gap and a tight labor market that may make it difficult to fill new positions. As a result, 65% of respondents to the study reported that attracting and retaining talent was a primary business concern.
If the manufacturing industry wants to keep up with its projected growth, it’s critically important that companies develop strategies to attract new talent and retain current employees.
Leveraging Digital Skills
One strategy to improve attraction and retention is to invest in digital skills for incoming and current employees. As operations and products become more complex, the demand for roles that rely on digital strategies, such as statisticians, data scientists, engineers, and software developers, will grow.
Organizations that offer digital skill-building opportunities will not only attract new talent, but also their employee retention. Deloitte found that employees are 2.7 times less likely to leave their current companies if they feel they can build the necessary skills for their future, and new talent will gravitate towards organizations they can grow with.
Building Strategic Partnerships
Another strategy to meet the predicted needs of the industry is to build partnerships with external organizations, particularly educational institutions such as technical colleges, universities, and K-12 schools.
Deloitte found that more than 9 in 10 surveyed manufacturers formed at least one partnership to improve job attraction, and most partnered with four or more.
Many of the partnerships are designed to build, leverage, and support training programs, helping to develop new talent. 47% of those surveyed by Deloitte and The Manufacturing Institute reported programs like apprenticeships, work studies, and internships as the most effective way to increase interest in manufacturing as a career choice for the incoming generation.
An evolving workforce and industry
The manufacturing industry is evolving, and so is its workforce. With significant growth projected over the next 10 years, companies must develop new strategies for employee retention and talent attraction.
Prioritizing employee training and development in digital skills, and investing in strategic partnerships that will welcome the newest generation of manufacturing employees are some of the strategies companies can take to keep up with the growth.
If you’re interested in learning more about the trends and challenges facing the manufacturing industry, stay tuned for updates from the North American Manufacturing Excellence Summit taking place April 14-16, 2024 in Fort Worth, TX!
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Colleen Douglas
Senior Marketing Coordinator
Executive Platforms
Colleen joined the Executive Platforms team in May of 2022. She has five years of experience in event marketing, with an emphasis on copywriting and digital strategies.
Colleen has a BA Honours in Business Communications from Brock University and a Diploma in Digital Media Marketing from George Brown College.