- Manufacturing Jobs Return to US. Skilled Workforce Missing (Maybe)
- February 6, 2014 | Author: Sonni Fort Nolan
- Law Firm: Husch Blackwell LLP - St. Louis Office
Here is the good news, more than ever manufacturers are looking at reshoring manufacturing jobs to the U.S. A few years ago only 14% were looking at reshoring as a viable option. That number has climbed to 21% of large manufacturers actually reshoring or preparing to do so, according to a recent article in the Financial Times. As we recently informed you, executives are looking at onshoring due to rising wages in developing countries, shipping costs, more direct communications between design teams and manufacturing operations, and less money tied up in finished goods as they are transported to their markets.
What’s the bad news? U.S. manufacturing companies hiring skilled workers are having a hard time finding individuals with the skills they need. In fact, 67% of companies hiring full-time employees cannot find the skilled workforce needed, according to the Society of Human Resources Management (SHRM). Today, 600,000 jobs are unfilled in manufacturing for this reason, according to the National Association of Manufacturers (NAM).
Is there really a skilled worker shortage? It depends on who you ask. Other experts report that there isn’t a skills gap. At least not today, according to Bloomberg and the Brookings Institution. However, because the average age of a manufacturing worker is 56, a shortage of skilled workers is on its way. Why? Manufacturers want skilled workers who start at $10 per hour, which are Burger King wages. Burger King trains their employees and fast food is generally less taxing work.
Whether there is a skills gap now, or there will be one soon, you might want to look into implementing apprenticeship programs now. Many manufacturers are waiting for the job market to catch on or for the government programs to catch up. Can you afford to wait? Partnering with the government for retraining funds and schools for apprenticeship programs might give you an edge on your competition.
Look at your recruitment tactics. The boomerang generation might take a second look at a manufacturing job if the industry was more creative with how it marketed itself. How about lattes and iPads at your next job fair? Finally, “show them the money.” If you simply can’t afford to pay higher wages to inexperienced workers, then show them their compensation path. A GenNext might be willing to work for you if you advertise the $23/hour job, even if they know they have to wait three years to get it.
Manufacturers have to rebuild the trust they once had with the workforce. Outsourcing and computers have broken that trust and like just about everything since 2008, it needs to be rebuilt.