A new study from Deloitte and the Manufacturing Institute shows that while the manufacturing industry has steadily grown in recent years, filling open jobs has been increasingly challenging, with experts projecting a 2 million shortfall by 2028. The report offers a variety of reasons that account for the hiring crisis such as a negative perception of working in manufacturing, as well as workers not having the right skills.
Five out of 10 positions in the manufacturing industry that require a specific skill set, such as engineers, researchers, and operation managers, remain unfilled and impacts the industry’s ability to keep up with growing consumer demand. Chad Moutray, the chief economist of the National Association of Manufacturers, explains that manufacturers are attempting to adjust their efforts and hiring policies to better meet the needs of potential employees such as being more flexible or alternately implementing new technology to replace them.
HR departments are enacting more strategic practices in hiring and retention that includes building knowledge transfer and development programs to strengthen employees’ skillsets. Development programs can be especially advantageous for companies that can retrain retirees with many years of previous experience. 77 percent of the manufacturers who took part in the study prioritized competency over experience and said they would hire workers with potential even without the required skills.
Over 80 percent of manufacturers are willing to increase pay to retain employees and some have offered to sign bonuses to their workers.
Deloitte and the Manufacturing Institute are using the report to work with business leaders, educators, and policymakers and explore options for how the industry can remain competitive in the current job environment.
