According to a 2024 study by Deloitte and The Manufacturing Institute:
- 8 million manufacturing jobs likely will be needed between 2024 and 2034.
- 9 million jobs are expected to be unfilled if more workers do not pursue manufacturing careers.
Manufacturing jobs over the next decade are expected to come from diverse sources:
- 8 million manufacturing jobs due to retirement
- 760,000 jobs due to industry growth
- 230,000 jobs due to legislative and regulatory actions
Causes of the Manufacturing Skills Gaps
Manufacturing skills gaps are mismatches between job seekers’ skills and employers’ needs to fill current and future roles. The biggest contributors include:
- An aging manufacturing workforce
- New skills required to keep up with technological changes
- Misaligned education and training programs
- Poor industry perception
- Lack of manufacturing career interest from younger generations
Effects of the Manufacturing Skills Gaps
The manufacturing skills gaps contribute to employer risks:
- Institutional knowledge loss
- Dissatisfied employees
- Increased turnover
- Decreased revenue
- Weaker bottom line
- Stunted business growth
These steps can help identify and close manufacturing skills gaps.
Identify Your Manufacturing Firm’s Skills Gaps
Conduct a skills gap analysis to determine which skills your employees have and which are needed to reach your firm’s ideal future state. Use your findings to clarify the needed skills, develop a plan to find and develop them in current and future employees, and reach your business goals.
Retain Institutional Knowledge
Baby boomers, who make up a significant part of the manufacturing workforce, will reach retirement age by 2030. Therefore, you should gather their institutional knowledge before they leave your company:
- Use process documentation software, videos, and other digital tools to pass on institutional knowledge to younger generations.
- Create mentoring, coaching, or other transitional roles for older employees to pass on knowledge to younger ones.
Train Your Manufacturing Workforce
Ongoing technological advancements require new manufacturing roles with advanced skill sets to keep pace with the changes. Therefore, upskilling, cross-training, and reskilling your workforce is essential:
- Upskilling involves deepening an employee’s skills and abilities to better perform their job.
- Cross-training involves preparing an employee to take on another job.
- Reskilling involves expanding an employee’s skills and abilities to perform another job.
Upskilling, cross-training, and reskilling your workforce provides diverse benefits:
- Training your employees costs less than hiring new ones.
- Internally filling hard-to-fill roles lets you backfill newly open roles from a wider candidate pool.
- Showing commitment to your employees strengthens retention and lowers hiring costs.
You can identify relevant candidates when conducting your skills gap analysis. Or, you could create “learn and earn” programs that use pay increases and promotions to incentivize employees to learn additional skills or earn certificates.
Get Help Closing Your Manufacturing Workforce’s Skills Gaps
Let Impact Staffing get to work providing skilled candidates to help bridge gaps in your manufacturing team. Contact us to discuss your hiring needs today.
