U.S. Manufactures Face a Shortage of Skilled Workers, According to New Report

American manufacturing companies cannot fill as many as 600,000 skilled positions — even as unemployment numbers hover at historic levels — according to Boiling Point? The Skills Gap in U.S. Manufacturing, a new report from Deloitte and the Manufacturing Institute. This annual skills report provides a stark snapshot of the manufacturing sector's inability to find qualified workers.

Approximately 67% of survey respondents attribute the unfilled positions to a shortage of available, qualified workers. Unfilled jobs are mainly in the skilled production category positions (e.g., machinists, operators, craft workers, distributors and technicians). The report also indicates that this shortage has an impact on the overall competitiveness of the U.S. manufacturing sector. Approximately 64% of respondents report that workforce shortages or skills deficiencies in production roles are having a significant impact on their ability to expand operations or improve productivity. To resolve these issues long-term, the U.S. must focus on the next generation by developing a skilled workforce that goes beyond the required skills (i.e., a solid math and science base). Respondents indicated that high schools should focus on strengthening students' critical thinking and problem solving skills. The report was compiled from a nationally representative sample of 1,123 executives at manufacturing companies. Read the report...

Another recent report from the National Institute of Manufacturing, A Manufacturing Renaissance: Four Goals for Economic Growth, outlines a four-point plan focused on attracting investment, increasing trade, developing a skilled workforce and spurring innovation in the U.S. manufacturing sector: Goal 1: The U.S. must become "the best place in the world to manufacture and attract foreign direct investment"; Goal 2: The U.S. must expand access to global markets to enable manufacturers to reach the 95% of consumers who live outside our borders; Goal 3: Manufacturers in the U.S. must have the workforce that the 21st-century economy requires; and, Goal 4: Manufacturers in the U.S must be the world's leading innovators. The authors highlight specific activities and policy prescriptions under each goal to achieve the intended results. Specific policy recommendations include, but are not limited to:

• Embracing an "all of the above" approach to energy production;
• Modernizing and investing in infrastructure to help manufacturers in the United States more efficiently move people, products and idea;
• Boosting exports through improved export promotion programs and export credit assistance for both small and large manufacturers;
• Developing a more productive workforce and encouraging innovation through education reforms and improvements;
• Attracting the best and brightest to the United States; Strengthening and making permanent the R&D tax credit; and,
• Supporting federal research agencies and public- and private-sector research.

According to the authors, the priorities and policy recommendations focus on increasing short-term and long-term competitiveness of U.S. manufacturers. Read the report...