As technology continues to advance at a dizzying pace, manufacturers are facing a growing skills gap. The increasing role of automation, robotics, machine learning, artificial intelligence and other innovations is rendering many traditional manufacturing jobs obsolete. At the same time, manufacturers are finding that the skilled workers they need to operate a modern facility are in short supply. The situation is exacerbated by a tight labor market and millions of retiring Baby Boomers.

Surveying manufacturers

According to the 2019 4th Quarter Manufacturers' Outlook Survey by the National Association of Manufacturers (NAM), attracting and retaining a quality workforce is the greatest challenge manufacturers face. It was cited by 64% of survey respondents and has been the top concern in nine consecutive surveys.

In NAM's 3rd Quarter 2019 survey, nearly 79% of respondents said they had open positions they were struggling to fill. In addition, the inability to find sufficient talent had forced around one-third of respondents to turn down business opportunities.

Related Read: Work Opportunity Tax Credit Extended Through 2020

Closing the gap

What can manufacturers do to close the gap? Here are four strategies:

  1. Offer Internships and Returnships
    Internships provide a relatively risk-free environment in which prospective employees can explore new job opportunities, hone existing skills and learn new ones, while the employer has an opportunity to evaluate potential new hires. Typically, interns are students or recent graduates.

    But focusing exclusively on young people ignores a potentially rich source of talent: Those who have been out of the workforce for several years. "Returnships" are internships designed for people who have taken career breaks for various reasons, such as raising children, serving in the military or recovering from a long-term illness. Returnships may also be offered to retirees who decide to re-enter the workforce for financial or other reasons.

  2. Make the Most of Older Workers
    An overlooked strategy is to encourage older workers to stay beyond retirement or even hire workers who are approaching retirement age. These workers may lack certain technical skills, but they often possess irreplaceable institutional knowledge, manufacturing experience and "soft" skills, such as interpersonal and communication skills. Tapping these older workers to mentor and train new hires can be a highly effective strategy for developing the younger generation of workers, who may possess technical skills but often lack the business knowledge, soft skills and professionalism their jobs require.

    One approach is to offer older workers a phased retirement. By gradually reducing their workloads and transitioning these workers into less demanding roles, you can accommodate older workers' need for more flexible schedules, while promoting the transfer of their knowledge and experience to the next generation.

  3. Upskill and Reskill Your Current Workforce
    Many manufacturers believe that the only way to keep pace with technological change is to hire new people with the appropriate skills. But given the skills gap, that may not be an option. Consider teaching new skills to existing workers, enabling them to thrive in their current roles or transition to new technology-focused jobs. Providing this training requires a significant investment, but so does recruiting and onboarding new talent.

    The first step is to take inventory of your workforce. To determine whether upskilling and reskilling are viable options, look at whether your current workers have the ability to learn the new skills they will need to adapt in an ever-changing work environment.

  4. Partner With Local Schools
    Consider collaborating with local high schools, community colleges or vocational schools to create skills certification programs and facilitate internships. Not only do these partnerships help develop local talent with the skills you need, but they also serve a public relations function: They help combat the myth that manufacturing jobs are tedious, low-skilled and devoid of intellectual stimulation.

Continuing the digital revolution

As the manufacturing industry continues to change at a staggering pace, it is critical for manufacturers to adapt to new technologies. And that means taking steps to ensure that their workforces are able to adapt with them.

Originally published Ostrow, May 2020

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