American Manufacturers Face Risk of Severe Labor Shortage

WASHINGTON—According to a recent report from Deloitte and the Manufacturing Institute, almost 2 million U.S. manufacturing jobs could be left unfilled within the next 10 years. The severe shortage caused by a skills gap and tight labor market underscores the dire need for employee-focused strategies to keep up with growth.

Workforce challenges are among the top concerns currently facing American manufacturers in all industries. The report warns that as many as 3.8 million additional employees could be needed in the manufacturing sector between now and 2033.

“Manufacturers recognize that the workforce is evolving,” says Carolyn Lee, executive director of the Manufacturing Institute. “Pandemic-driven shifts have already created hundreds of thousands of new jobs, and now we are seeing increased demand for digital skills that need to be met or risk further widening of the talent gap.

“Companies must prioritize technology, training and talent development, and the investments that are driving growth will also require the industry to build out a talent ecosystem,” explains Lee. “With investments in partnerships, apprenticeships and education, and prioritizing a more diverse and inclusive workforce, a whole host of new talent will be on the factory floor and driving the next wave of growth.”

Lee claims that 1.9 million jobs could remain unfilled if manufacturers are not able to address the skills and applicant gaps. In addition to upskilling the existing workforce through training, technology and policies that meet employee expectations, manufacturers must create strategies to increase existing employee retention.

“As retiring Baby Boomers are replaced by incoming millennials and Gen Z workers, [companies] should invest in strategies aligned with workforce expectations, including more flexibility,” says Lee. “Options include work arrangements such as flexible shifts, shift swapping and split shifts.”