It is true that there is a skills gap in manufacturing that could pose a problem in the workforce. Once the skills gap is identified, it is a good idea to take measures to close the gap. This can be easily accomplished by training employees.
According to the 19th annual ASSEMBLY State of the Profession survey, things are looking bright in the American manufacturing sector.
Here are some encouraging stats from the report:
- 93 % of respondents expect their company to commit either the same amount or more resources toward assembly operations in the next year.
• The Manufacturers Alliance for Productivity and Innovation (MAPI) predicts that U.S. manufacturing will grow 3 percent in 2014 and 4 percent in 2015.
• MAPI expects industrial equipment expenditures to grow 8 percent in 2014 and 11 percent in 2015. The outlook for spending on transportation equipment is for growth of 6 percent in 2014 and 4 percent in 2015.
However, as U.S. manufacturing grows, manufacturers are increasingly experiencing a skills gap and talent shortage. According to the survey:
- More than one-third (43 percent) of respondents claim they are having trouble finding skilled workers.
• More than one-fourth (27 percent) of respondents claim that its takes four to six months to fill the typical position.
• According to a recent study conducted by Accenture and The Manufacturing Institute, U.S. manufacturers may be losing up to 11 percent of their earnings annually as a result of increased production costs stemming from a shortage of skilled workers.
What can manufacturers do to close this skills gap? One suggestion is that companies stop looking for the perfect candidate. It’s a market that favors employees and the competition is high. In reality, that “perfect candidate” may not even exist.
According to Matt Reilly, senior managing director at Accenture Strategy North America:
“Manufacturers’ plans to increase production and grow over the next five years are positive indicators, but are likely to exacerbate the problem. Given today’s limited pool of relevant talent, companies may have to forget the notion of the perfect candidate. Instead, they should look for more generalist skills in candidates and develop them to match the specific work that needs to be done.”
In addition to looking for candidates with generalist skills, manufacturers should also look internally at current employees. Currently, manufacturers are spending more on average on training new hires as opposed to existing employees.
This may be the wrong approach. In some cases, it might be preferable to invest in training an existing employee to do the job rather than bring in a new employee who also needs to be trained. The pros are that you already have a working relationship with existing employees and are aware of their work ethic and skill set. By investing in ongoing employee training, employees can work towards transitioning into the jobs that need to be filled.
Contact Fishman Corporation for more information about how we can make your workplace more efficient.