Bridging the Gap: Addressing the Skilled Trades Labor Shortage in Manufacturing

Let’s be honest, you’ve heard it all before—the skills gap. It’s a problem that’s not just knocking at our door; it’s banging on it. Over the course of the last decade, the U.S. manufacturing industry has stood on the brink of a major crisis. With a staggering 2.1 million skilled trades jobs projected to go unfilled by 2030, many companies, big and small, have had to think creatively in their recruitment and retention efforts of the next generation of manufacturing professionals and skilled workforce. 

This shortage of workforce, industry, and legacy knowledge not only threatens production capabilities but jeopardizes the very future of American manufacturing. Empowering and investing in the next generation of skilled workers is more crucial than ever. Even as the industry recovers from the COVID-19 pandemic, with 820,000 jobs regained, a critical 570,000 positions remain vacant, and that number will only continue to grow.

Addressing this labor shortage in not only advanced manufacturing, but all skilled trades, requires a united effort to cultivate new talent, modernize training programs, and inspire the next generation of professionals to enter the industry.

Source: U.S. Bureau of Labor Statistics, 2023

Advanced manufacturing is a cornerstone of the U.S. economy, driving innovation, competitiveness, and economic growth. The sector has the highest multiplier effect of any economic sector, with every $1.00 spent in manufacturing adding $2.74 to the economy. Manufacturing contributes over $2.3 trillion to the U.S. GDP, making it a critical component of the national economy.

Contrary to outdated perceptions, modern manufacturing offers diverse and rewarding career opportunities that are vital to the nation’s economic health. Roles in advanced manufacturing often involve working with cutting-edge technologies such as robotics, 3D printing, and artificial intelligence. These positions not only provide competitive salaries, benefits, and opportunities for advancement but also play a crucial role in addressing broader issues such as unemployment in the U.S. By attracting new talent to these essential roles, we can help close the skills gap, fill the growing number of vacant positions, and ultimately contribute to reducing the national unemployment rate.

The skilled labor shortage is severely impacting U.S. manufacturing, causing production delays and increased costs. Over 22% of US manufacturing facilities are operating below capacity, leading to inefficiencies and higher costs of goods. The economic impact of unfilled positions could exceed $1 trillion by 2030 due to lost production time. When trying to understand the Skilled Labor Shortage in the US, four main points significantly contribute to the shortages:

Aging Workforce: A significant portion of the manufacturing workforce is nearing retirement, leading to a loss of experienced talent. By 2030, over 2.7 million Baby Boomers are expected to retire, further widening the skills gap and creating significant challenges for the industry. As this experienced generation exits the workforce, companies must act quickly to address the growing need for skilled labor and knowledge transfer.

Lack of Awareness: Modern manufacturing careers are often misunderstood, deterring younger generations despite the industry’s advancements and competitive salaries. Many still perceive manufacturing as dirty, manual labor, unaware of the high-tech, innovative nature of today’s manufacturing environments. This misconception creates a barrier, preventing the industry from attracting the talent needed to drive future growth and innovation.

Insufficient Training Programs:  There is a significant gap between the skills provided by current educational programs and the needs of the industry, resulting in a shortage of qualified candidates. Many educational institutions lack the resources to offer training in advanced manufacturing technologies, leaving students unprepared for the demands of modern manufacturing roles. This disconnect between education and industry needs is a critical factor contributing to the ongoing skills gap.

Shortfalls of US Education and STEM Programs: The current education system is not producing enough graduates with the STEM skills required for modern manufacturing roles. According to the Bureau of Labor Statistics, only 6% of high school students consider manufacturing as a career path, highlighting a critical disconnect. This shortage of STEM-educated graduates limits the talent pool available to fill advanced manufacturing positions, posing a significant challenge for the industry’s future growth and innovation.

Empowering the next generation is crucial for addressing the skilled labor shortage in the manufacturing industry. One of the most effective ways to achieve this is through strong partnerships between local high schools, technical colleges, and businesses. By fostering these collaborations, we can create comprehensive training programs and engaging opportunities that prepare students for successful careers in advanced manufacturing and other skilled trades, right out of high school.

Partnerships like these are essential for providing students with the education and hands-on experience they need to thrive in the manufacturing industry. These collaborations ensure that the curriculum is aligned with industry needs, allowing students to develop relevant skills and knowledge. High schools introduce students to manufacturing concepts and basic technical skills through in-class instruction, and companies like Reader Precision allow these students to apply their skill-based knowledge hands-on as paid youth apprentices. After completing high school, these students can further their skills training at technical colleges who offer more advanced training and certifications. Businesses, on the other hand, provide real-world experience through apprenticeships and internships.

At Reader Precision Solutions, we recognize the value of these partnerships and actively work to nurture them. Our collaboration with local high schools and Gateway Technical College, has been instrumental in the success of our apprenticeship programs. By working closely with educational institutions, we ensure that students receive comprehensive training that combines academic learning with real-world application. This approach not only prepares students for immediate job placement but also equips them with the skills needed for long-term career growth.

Since 2013, Reader Precision Solutions has proudly maintained a robust commitment to youth apprenticeship (YA) programs, employing at least one youth apprentice each year. Over the last 11 years, we have mentored a total of 51 youth apprentices, spanning both the manufacturing and business development pathways.

Industry leaders also have a significant role in addressing the labor shortage. By investing in employee development and supporting community education programs, businesses can take proactive steps to cultivate new talent. Addressing the skilled labor shortage in manufacturing requires a multifaceted approach, combining effective outreach campaigns with strong support from both government and industry leaders, like:

• Effective marketing campaigns are essential to raise awareness about the diverse and rewarding opportunities in advanced manufacturing among young people and their families.
• Highlighting modern, high-tech manufacturing can dispel outdated perceptions and showcase the industry’s potential for growth and innovation.
• Sharing inspiring success stories of individuals who have built successful careers in advanced manufacturing can further emphasize the exciting career paths available and inspire the next generation.

Government policies also play a crucial role in supporting workforce development in manufacturing. Policy initiatives such as grants, tax incentives, and funding for training programs are essential to create a robust pipeline of skilled workers. These policies provide the necessary resources for educational institutions and businesses to develop and implement effective training programs. We encourage you to call on your local government representatives to support these initiatives and ensure continued investment in the future of manufacturing.

As a recent award recipient of the Wisconsin Manufacturer of the Year for Investment in the Next Generation, Reader Precision is dedicated to promoting manufacturing careers through outreach and awareness campaigns, sharing success stories, and collaborating with government agencies and industry leaders to support beneficial policy initiatives. By investing in employees and supporting community education programs, we can all stand together to address the skilled labor shortage and ensure a bright future for American manufacturing for years to come.

The future of American manufacturing lies in our hands. We can bridge the gap and secure a prosperous future for the industry by empowering the next generation with the skills and opportunities they need. By championing education and training initiatives, promoting the dynamic careers available in manufacturing, and advocating for policies that support workforce development, together, we can transform the landscape of manufacturing and pave the way for innovation and growth. Now is the time to take action and make a lasting impact.

To further support your efforts in addressing the skilled labor shortage and empowering the next generation, we’ve compiled a list of valuable resources:

Wisconsin Department of Workforce Development – Apprenticeship Programs: Learn more about the available apprenticeship programs in Wisconsin and how they can benefit both employers and young professionals.

U.S. Department of Labor – Apprenticeship: Explore national apprenticeship opportunities and resources to help bridge the skills gap in manufacturing.

Gateway Technical College – Youth Apprenticeship Information: Find out how Gateway Technical College supports high school students through Youth Apprenticeship programs.

Manufacturing Institute – Workforce Development: Access research, tools, and programs designed to develop a skilled manufacturing workforce across the country.