We are well into an economic boom and a talent bust. The economy is stronger than it has been for decades. But the skilled talent needed to continue fueling that type of booming economy is in extremely short supply—shorter than it has ever been since World War II. What are manufacturers doing about this boom-bust?
A new survey conducted in the fourth quarter of 2019 by the Manufacturing Institute (themanufacturinginstitute.org), an arm of the National Association of Manufacturers (NAM, nam.org), shows that nearly 80% of manufacturers are “expanding their workforce training efforts” with an eye on the skills gap. “Attracting and retaining a quality workforce” was cited as one of the biggest challenges by 63.8% of respondents.
And it’s NOT just big manufacturers telling us this. Seventy percent (70%) of the “Manufacturer’s Outlook Survey” respondents were from small businesses with fewer than 500 employees.
As detailed below, the manufacturing sector’s war for talent is being waged on several fronts.
INVESTMENTS IN MANUFACTURING’S FUTURE
National Association of Manufacturers President and CEO Jay Timmons delivered the eighth-annual “NAM State of Manufacturing Address,” in Pella, IA, on January 22, 2020. During his talk, he made a point to highlight NAM’s “Creators Wanted 2020” initiative.
As Timmons described it, the new initiative “is a capital campaign that will support the programs of the Manufacturing Institute, including the STEP Women’s Initiative, youth engagement, and Heroes MAKE America, which trains our returning service members for high-paying manufacturing jobs.”
Click Here for a Copy of Jay Timmons’ Complete Address
NAM launched the $10-million “Creators Wanted 2020” campaign to inspire and recruit 600,000 Americans to pursue careers in modern manufacturing. One of these efforts includes “Encourage Your Kids to Consider a Career in Modern Manufacturing” by pointing to the following opportunities:
What You Should Know About Modern Manufacturing
* Create your own future and shape the world.
* Use advanced skills to make the next big thing.
* Seize the opportunity to join a growing sector.
* Make a difference.
* Earn a high salary and progress.
NAM is also featuring a selection of videos on Skills, Career Paths, Industry Sectors, and Salary to help answer questions about modern manufacturing. The Association’s website includes more stories of rewarding and exciting career paths numbering in the millions Learn more at the “Creators Wanted” website: www.creatorswanted.org.
RENEWED EMPHASIS ON SKILLS TRAINING
Not since the 1980s have we seen such an emphasis on skills training and development. Chad Moutray, NAM’s Chief Economist, has summed the situation up this way” “Manufacturers consistently cite the inability to attract and retain talent as their top concern, and as this [the Manufacturing Institute] survey underlines, they are taking strong proactive steps to overcome it.”
In fact, the Institute survey estimated that the manufacturing sector has spent more than $26.2 billion on training programs, both for new and existing employees. Among other things in the findings:
* 69.9% of firms reported they were either creating or expanding internal training programs, and 84.6% reported job-related technical training.
* The most popular means of encouraging workers to participate in training programs was supervisor encouragement and outreach, at 65.4%, while 63.1% of firms also reported offering tuition assistance.
* At 74.1%, the largest reported obstacle to implementing workforce training was concern over interrupting work hours.
The survey also reported on how respondents thought their companies training programs affected employees’ careers.
* 74.8% reported increased productivity.
* 64.9% reported increased employee morale.
* 38.9% said that offering training-facilitated recruitment efforts was a potentially critical boon. (An earlier study conducted by the Manufacturing Institute in partnership with Deloitte said that 2.4 million manufacturing jobs could go unfilled by 2028 if the skills gap persists.)
I would be interested in hearing from readers about how the above survey findings align with the situations in your own organizations (or your clients’ organizations). Please share your thoughts with me at bwilliamson@theramreview.com.TRR
ABOUT THE AUTHOR
Bob Williamson is a long-time contributor to the people-side of the world-class-maintenance and manufacturing body of knowledge across dozens of industry types. His background in maintenance, machine and tool design, and teaching has positioned his work with over 500 companies and plants, facilities, and equipment-oriented organizations. Contact him directly at 512-800-6031 or bwilliamson@theramreview.com.
MORE ABOUT NAM
Headquartered in Washington, DC, the National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs more than 12.8 million men and women, contributes $2.37 trillion to the U.S. economy annually and has the largest economic multiplier of any major sector and accounts for 63% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the Manufacturers or to follow us on Twitter and Facebook, please visit www.nam.org.
Tags: workforce development, skills crisis, training, qualification, manufacturing, Creators Wanted, NAM, National Association of Manufacturers, Manufacturing institute
