Published: May 04 2021

How to Close the Skill Gap in Your Manufacturing Business

How to Close the Skill Gap in Your Manufacturing Business

Why the Skill Gap is Growing
  • More than 2.6 million baby boomers are expected to retire over the next decade.

  • Artificial intelligence, advanced robotics, automation, analytics and the Internet of Things are changing the manufacturing landscape.

  • Younger generations are uninterested in manufacturing jobs.

  • 700k new jobs will be created due to organic growth.

  • Job openings have been growing at double-digit rates, nearing the historical peak recorded in 2001.1

Consequences of a Growing Skills Gap
  • More than 2.4 million open jobs could remain unfilled between 2018 and 2028, with a potential economic impact of $2.5 trillion.

  • 89% of manufacturing executives agree there is a talent shortage in the US manufacturing sector, 5 percent higher than 2015 results.3

  • 60% of the job gaps will be directly tied to skills mismatch, or talent shortage.

  • Positions relating to digital talent, skilled production and operational managers may be 3x more times as difficult to fill in the next three years.

  • Manufacturing businesses are unable to increase production levels and satisfy growing customer demands.

How to Build a Path Forward

Manufacturers must fill current jobs and prepare for future, tech-driven workforce.

  • 47% of today’s jobs might be gone in the next 10 years, including 20% of assembler jobs in manufacturing.9

  • The most in-demand skills will include technology/computer skills, digital skills, programming skills for robots/automation, working with tools and technology, and critical thinking skills.

  • Early smart factory adopters report an average increase of 12% in labor productivity, 11% increase in factory capacity utilization and a 10% increase in total production output.

Tips to Move Forward:
  • Taking advantage of the emerging workforce ecosystem. Use youth education programs related to Science, Technology, Engineering & Math (STEM) and share news about innovation in manufacturing to support recruitment and retention of young workers in the smart manufacturing sector.

  • Expand digital and “soft” skills, and make sure that all departments – including IT, HR, quality assurance, operations, training and safety – are onboard and engaged toward improving smart manufacturing.

  • Turn toward automation to supplement unfulfilled human jobs that are going unfilled.

  • Develop in-house training that engages a multigeneration workforce.

  • Create public–private partnerships.

  • Bolster apprenticeship programs.

The future is going to look different. Make sure you’re prepared with the right tools.
Contact Accruent today.