Talent Will Define Future of Manufacturing, Study Finds

Talented human capital is singled out as the most critical resource differentiating the prosperity of countries and companies in the manufacturing sector, according to a new report from the World Economic Forum. Even as unemployment remains high across the globe, an average 10 million jobs cannot be filled because of a growing skills gap. Experts say the problem is likely to worsen as more skilled workers retire. The report highlights key trends that will define manufacturing competition over the next 20 years.

A 2011 survey by Deloitte and the Manufacturing Institute found that 67 percent of U.S.-based manufacturers are facing a moderate to severe shortage of available, qualified workers and more than half expect the shortage to grow in the next five years. In fact, about 5 percent or around 600,000 manufacturing jobs remain unfilled in the U.S. Exacerbating the problem is an ageing workforce, especially in emerging countries. In China, 28 percent of the population will pass age 65 by 2040. The retirement trend is worldwide and is expected to sustain for the next 10 years, according to the report.

So what is being done and what can be done to remedy the talent shortage? The authors points to recent efforts in China and India to reduce brain drain and develop local talent. China implemented a series of incentives such as granting special privileges to graduates from foreign universities, offering special promotions to high-salaried positions, and facilitating visa documents for domestic and international travel. In India, the government has engaged private industry and mobilized a new organization called the National Skill Development Corporation to identify and fund vocational education businesses. Efforts in other nations, including the U.S., include collaboration among corporations, academia and private organizations such as customized education and training in high-schools and community colleges.

Some of the other key differentiators identified in the report include the ability to innovate, increased competition between nations to attract foreign direct investment, growing materials resource competition, and the infrastructure to enable manufacturing to flourish. Additionally, clean energy strategies and effective energy policies will be top priorities for manufacturers and policymakers, the report concludes.

Read The Future of Manufacturing: Opportunities to Drive Economic Growth...