Regardless of the high unemployment numbers, American manufacturing companies are having trouble filling as many as 600,000 skilled positions, reveals a new survey from Deloitte and The Manufacturing Institute.
The survey, "Boiling Point? The skills gap in U.S. manufacturing," interviewed a sample of 1,123 executives at manufacturing companies, which shows 5 percent of open manufacturing jobs are unfilled because there aren't enough qualified candidates.
"The survey shows that 67 percent of manufacturers have a moderate to severe shortage of available, qualified workers," says Craig Giffi, vice chairman and consumer and industrial products industry leader of Deloitte. "Moreover, 56 percent anticipate the shortage to increase in the next three to five years."
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"These unfilled jobs are mainly in the skilled production category – positions such as machinists, operators, craft workers, distributors and technicians," says Emily DeRocco, president of The Manufacturing Institute. "Unfortunately, these jobs require the most training and are traditionally among the hardest manufacturing jobs to find existing talent to fill."
Not finding the necessary workers is affecting manufacturers' competitive readiness, Giffi says, which is supported by the finding that 64 percent of respondents say work force shortages or skills deficiencies in production roles are considerably impacting their ability to grow operations or enhance productivity.
"Ironically, even as unemployment numbers remain bleak, a talent shortage threatens the future effectiveness of the American manufacturing industry," Giffi says.
DeRocco says companies should partner with educational institutions in an effort to make developing work force skills a main strategic priority.
"Our education system must also do a better job aligning education and training to the needs of employers and job-seekers," DeRocco says. "To support this effort, The Manufacturing Institute is deploying the Manufacturing Skills Certification System endorsed by the National Association of Manufacturers, a system designed to build educational pathways to in-demand manufacturing jobs."
The survey findings may seem ironic, considering the unemployment rate remains above 9 percent, but, DeRocco says, it could be connected to an earlier movement that hit prior to the 2008 economic collapse.
"Over the past five years, most manufacturers have redesigned and streamlined their production lines while implementing more process automation," DeRocco says. "In short, just as the industry is changing, the skills of the workers are changing, as well. Manufacturers obviously want to fill these roles by tapping the currently available work force; however, they report that the No. 1 skills deficiency among their current employees is in the area of problem solving, making it difficult for current employees to adapt to changing needs.
"Adding to the problem, respondents report that the education system is not producing workers with the basic skills they need."
With the manufacturing industry's aging work force, the situation will only worsen, DeRocco adds.
To help solve this problem, respondents believe manufacturers should try more creative angles to recruitment and talent management. Although work force planning is important, more should be done. New approaches, such as employer branding, should be employed, especially in use with traditional tactics.
"Many manufacturers are using the same approaches to talent development as they were a decade ago," says Tom Morrison, principal of Deloitte Consulting LLP and national service line leader for total rewards. "New performance tools and formal processes like industry certifications should be playing a larger role in any manufacturer's talent management plan.
"The results of this survey may appear dire, but, in reality, each of these challenges is surmountable. The United States has among the largest, strongest manufacturing industries in the world and has demonstrated its ability to innovate and adapt time and time again."
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