Demand for American manufacturing workforce skills are poised for growth!

‍

The good news is American manufacturing is one of the fastest-growing American industries that is expected to see double-digit job growth over the next decade. The bad news is there are not enough skilled workers in the workforce to enter manufacturing as it transitions to a highly technological and data-driven industry through many new industry 4.0 technologies and advancements.

‍

According to Burning Glass Technology, in 2022, there were 3,560,707 job openings in manufacturing in the US in the last 12 months, with an expected growth rate of 16.8% over the next decade.

‍

Why does it matter?  The 2022 McKinsey report on Delivering the US Manufacturing Renaissance notes that manufacturing in the US accounts for $2.3 trillion in GDP, employs 12 million people, supports hundreds of local economies, and is the main economic engine and primary employer in around 500 counties in the US today. Their analysis suggests that manufacturing will add up to 1.5 million jobs, particularly in the middle skill workers, which will recalibrate and boost the middle class.

‍

In order to meet the need, US manufacturing will also require reinvention. Companies are looking at the paradigms that have dominated the industry for decades, with the aim of making manufacturing more sustainable, more digital, more skilled, and more resilient. Manufacturing has relied on fossil-fuel energy since the first industrial revolution. Now, governments, customers, and investors are demanding that the sector embrace a more sustainable approach while also remaining cost-competitive. By 2030, Industry 4.0 applications are expected to account for almost half the total sales of 5G-connected IoT devices.

‍

Deloitte’s 2023 Manufacturing Industry Outlook report addresses the tight labor market and workforce churn amid shifting talent models, which are expected to remain a top priority for most manufacturers in 2023. Despite a record level of new hires, job openings in the industry are still hovering near all-time highs at 800,000. Additionally, voluntary separations continue to outnumber layoffs and discharges, indicating substantial workforce churn of an aging leadership population. As the use of digital technologies proliferates across the manufacturing sector, the workforce increasingly needs advanced technical and digital skills. However, skilled workers are in short supply in the manufacturing industry. Manufacturers are likely to emphasize reskilling strategies, including continuous training to upskill the workforce, investment in startups to access new technology and talent, and collaboration with academic ecosystems to access digital skills.

‍

DEI is a top priority of American manufacturing, as the industry is trying to attract more women and racially diverse groups to their workforce. Women and minorities account for less than one-third of the manufacturing workforce and greater diversity will be required to increase the talent pool. In a recent Deloitte survey, 67% of US job seekers stated that a diverse workforce is an important factor when considering a job offer. Manufacturers are increasingly adding leadership that focuses on advancing their DEI maturity, from meeting representation targets to creating more inclusive environments where diverse talent can build careers.

According to the US Department of Defense, advanced manufacturing is changing the nature of global manufacturing – creating new, technically advanced, and higher-paying positions. Today’s factories are safe, bright, energetic technology hubs operated and managed by capable, educated individuals – a stark contrast to the dark and dingy factories of the past. There is a significant investment underway in American work and infrastructure, including $372 million in the president’s fiscal year 2023 budget to strengthen the nation’s supply chain through domestic manufacturing.

‍

It's time to start upskilling the American manufacturing industry. Join the cause and protect our country.