According to the 2024 Manufacturing Institute for Supply Management’s (ISM) Report on Business:
- The Manufacturing Purchase Manager’s Index (PMI) registered 48.7% in May, down 0.5% from the previous month.
- A Manufacturing PMI above 42.5% over an extended time typically indicates an expansion of the overall economy.
- The overall economy grew for the 49th straight month after one month of contraction in April 2020.
These statistics show an increasing demand for manufacturing labor.
However, the number of employees retiring or leaving the manufacturing industry for other sectors is greater than the number of workers entering the field. As a result, there are labor shortages in Metro Atlanta manufacturing.
Impact of Manufacturing Labor Shortages
Labor shortages in Metro Atlanta manufacturing impact productivity and business growth. The results include:
- Loss of process knowledge: Tenured employees who leave a manufacturing firm are unable to pass on their knowledge, skills, and experience if there are no new hires.
- Increased risk for workplace injuries: New hires and employees working overtime are more likely to make mistakes that lead to accidents and injuries.
- Greater likelihood of equipment damage: New hires and employees working overtime can accidentally damage manufacturing tools or equipment, causing downtime and reduced productivity until repaired.
- Inconsistent product quality: New hires might require additional time to understand challenging process steps and create quality products.
- Production delays: Reduced capacity causes delays in fulfilling orders and missing new growth opportunities.
- Increased recruitment costs: A high turnover rate means additional time and money for hiring, onboarding, and training employees.
Methods to Reduce Manufacturing Labor Shortages
The following are effective methods to reduce labor shortages in Metro Atlanta manufacturing:
Partner with educational institutions
Partner with Metro Atlanta high schools, technical schools, and trade schools to teach real-world manufacturing skills. Guiding local educational institutions to develop relevant curricula helps educate students on real-world manufacturing demands.
The partnerships might lead to internships and apprenticeships that let students develop their manufacturing skills. These activities can help reduce the labor shortages in Metro Atlanta manufacturing.
Emphasize company culture
Develop a company culture that attracts and retains skilled manufacturing workers:
- Prioritize diversity, equity, and inclusion (DEI).
- Provide competitive income, benefits, and perks to support employees’ health and lifestyles.
- Consider offering remote or hybrid work options and a flexible schedule to support work-life structure.
- Model open communication, transparency, and authenticity at all organizational levels.
- Offer learning opportunities for career growth.
- Recognize and reward employees for their contributions and results.
Offer Training
Provide regular training to enhance employee safety and skills. Prioritization of safety and skill development supports employees’ health and professional development. The results include:
- Increased employee engagement
- Enhanced collaboration
- Greater productivity
- Better performance
- Elevated job satisfaction
- Higher employee morale
- Stronger employee attraction and retention rates
Work with a Manufacturing Recruitment Firm
Impact Staffing’s comprehensive staffing solutions help Metro Atlanta manufacturing companies attract and retain talent. Find out more today.
