Study finds that 1.9 million jobs could be left unfilled, underscoring the need for employee-focused strategies to keep up with growth
NEW YORK, April 3, 2024 /PRNewswire/ —
Key takeaways
US manufacturing industry could need 3.8 million jobs by 2033, but 1.9 million could go unfilled.
According to a new Deloitte and The Manufacturing Institute report, the U.S. manufacturing industry could see a net need for as many as 3.8 million jobs by 2033. However, up to 1.9 million of these jobs could go unfilled if manufacturers are unable to address the skills gap and applicant gap.
The U.S. manufacturing industry could see a net need for as many as 3.8 million jobs between 2024 and 2033 as significant investment continues to drive growth.
Without significant changes, more than 5 in 10 or 1.9 million of these jobs could go unfilled if workforce challenges are not addressed through 2033.
Sixty-five percent of respondents said attracting and retaining talent is their primary business challenge.
Investments in skills and strategies that address the workforce’s evolving expectations, including flexibility and technology, could be pivotal to how manufacturers position themselves for success.
Why this mattersThe U.S. manufacturing industry has emerged from the pandemic on a strong growth trajectory and continued growth is expected over the next 10 years as companies work to meet evolving customer demands, de-risk their supply chains, and leverage government incentives and policies. Despite substantial growth in the sector, U.S. manufacturing faces a skills gap and tight labor market.
Deloitte and The Manufacturing Institute’s new report, “Taking charge: Manufacturers support growth with active workforce strategies,” examines the workforce challenges that manufacturers are facing as well as the investment and skills likely required to drive continued growth across the industry.
Amid talent constraints, manufacturing job opportunity swellsAccording to the study, workforce challenges are among the top concerns for U.S. manufacturers, and have been since Q4 2017, except during the pandemic.
Deloitte projects that as many as 3.8 million additional employees could be needed in manufacturing between 2024 and 2033.
Filling open positions — and keeping them filled — is a top concern for many manufacturers: 65% of respondents in the National Association of Manufacturers’ 2024 Q1 outlook pointed to attracting and retaining talent as their primary business challenge.
As the need for higher-level skills grows, Deloitte predicts that as many as 5 in 10 of the skilled open positions, 1.9 million jobs could remain unfilled if manufacturers are not able to address the skills and applicant gaps.
The demand for digital skills is accelerating as operations and products become more complex and information from smart connected devices and systems needs to be integrated and analyzed.
Deloitte and The Manufacturing Institute’s (MI) analysis show that, in the last five years, there has been a 75% increase in demand for simulation and simulation software skills, sought mostly for technology-enabled production or testing roles.
Roles like statisticians, data scientists, engineers, logisticians, computer and information systems managers, software developers, and industrial maintenance technicians are likely to grow at the fastest pace between 2022 and2032.
For production roles, the fastest growing are likely to be those that require higher-level skill sets like semiconductor processing technicians, machinists, first-line supervisors, welders, and electronics and electromechanical assemblers.
Investments focus on addressing demand for skills and valuesManufacturers are increasing and varying investments to meet the needs, skills requirements and values of the evolving workforce, while also creating strategies to increase existing employee retention.
As retiring Baby Boomers are replaced by incoming millennials and Gen Z workers, the industry should invest in strategies aligned with workforce expectations, including more flexibility. Nearly half (47%) of respondents in Deloitte and the MI’s study indicated that flexible work arrangements (including flexible shifts, shift swapping and split shifts) is most impactful for retaining employees.
Employees are 2.7 times less likely to leave the organization in the next 12 months if they feel they can acquire necessary skills that are important for the future, according to Deloitte research.
Key quote”The manufacturing industry is facing exponential opportunity, yet still should prioritize strategies that will address the skills and applicant gap, especially as the acceleration of digital skills-based jobs continues. Developing talent — both from within the existing employee base and those newly entering the workforce — is important to keeping up with the pace of continued innovation. Companies who invest in upskilling the workforce through training, technology and policies that meet employee expectations are well-positioned for future growth.”
— John Coykendall, principal, Deloitte Consulting LLP, and vice chair, U.S. industrial products and construction leader
Manufacturers go beyond existing talent pipeline
More than 9 in 10 surveyed manufacturers said they are forming at least one partnership to improve job attraction and retention, and on average, they are partnering with four or more.
The top five partnership types among respondents are with: technical colleges (73%), industry associations (58%), universities (48%), state and regional economic development agencies (47%), and K-12 schools (44%).
Many partnerships are geared towards building, leveraging and supporting training programs — helping address the needs to develop new talent. Nearly half (47%) of those surveyed in research by Deloitte and the MI indicated that apprenticeships, work studies, or internships at manufacturing companies would be the most effective way to increase interest in manufacturing as a career choice.
Key quote”Manufacturers recognize that the workforce is evolving. Pandemic-driven shifts have already created hundreds of thousands of new jobs, and now we are seeing increased demand for digital skills that need to be met or risk further widening of the talent gap. Companies must prioritize technology, training and talent development, and the investments that are driving growth will also require the industry to build out a talent ecosystem. With investments in partnerships, apprenticeships, and education, and prioritizing a more diverse and inclusive workforce, a whole host of new talent will be on the factory floor and driving the next wave of growth.”
— Carolyn Lee, president and executive director, The Manufacturing Institute
The report, “Taking charge: Manufacturers support growth with active workforce strategies,” is based on an online survey of more than 200 U.S. manufacturers, interviews with senior executives from manufacturing organizations of all sizes and across all sectors, extensive analysis of secondary data on labor supply and demand, and analysis from Deloitte’s economic team.
Connect with us on X at @DeloitteUS or on LinkedIn at @JohnCoykendall or @CarolynLee.
About The Manufacturing InstituteThe Manufacturing Institute builds a resilient manufacturing workforce prepared for the challenges and opportunities of the future. Through implementing groundbreaking programs, convening industry leaders and conducting innovative research, the MI furthers individual opportunity, community prosperity and a more competitive manufacturing industry. As the 501(c)3 nonprofit workforce development and education affiliate of the National Association of Manufacturers, the MI is a trusted adviser to manufacturers, equipping them with solutions to address the toughest workforce issues. For more information on the MI, please visit www.themanufacturinginstitute.org.
About Deloitte
Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 8,500 U.S.-based private companies. At Deloitte, we strive to live our purpose of making an impact that matters by creating trust and confidence in a more equitable society. We leverage our unique blend of business acumen, command of technology, and strategic technology alliances to advise our clients across industries as they build their future. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Bringing more than 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s approximately 457,000 people worldwide connect for impact at www.deloitte.com.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.
SOURCE Deloitte
