The Manufacturing Predicament

The industrial sector is surging, yet skilled labor shortage stands as an obstacle. What should we do?

Manufacturing. It has been America’s “signature” since the days of the Industrial Revolution, when machinery, factories and, eventually, mass production became our hallmarks and inventiveness, innovation and ingenuity were our trademarks.

Financial pundits, business leaders and government officials past and current assert manufacturing represents this country’s economic engine and serves as the catalyst for prosperity. The sector spurs demand for everything from raw materials and intermediate components to software and services of all kinds. Studies and statistics show that manufacturing significantly impacts the widespread creation of jobs – and wealth.

And it’s not just the experts and the data that recognize manufacturing’s importance. A 2010 national study of Americans sponsored by The Manufacturing Institute (Washington, DC) and Deloitte (New York, NY) revealed that more than three quarters of respondents (78 percent) believe the manufacturing industry is very important to our economic prosperity. Similarly, 76 percent view manufacturing as critical to our standard of living and nearly two-thirds (65 percent) said the sector is important to national security.

Despite such value placed on U.S. manufacturing, its influential “signature” is currently not a bold flourish, but a shaky, subdued script. Yes, the worst economy since the Depression – combined with years of job losses to low-wage countries – has been devastating. But as the economy already shows signs of a comeback, it is manufacturing that is leading the way in the rebound. There is a growing recognition that outsourcing of jobs overseas will decrease as formerly “low-wage” countries build their own middle-class populations.

Although these are positive trends, many are not ready to predict that a vibrant U.S. industrial environment is on the horizon. In fact, a number of experts are far from optimistic. Their reason? Manufacturers simply cannot find the skilled labor that is needed today to handle the kinds of sophisticated production processes and tasks required on the manufacturing shop floor.

It is a remarkable contradiction. Manufacturers cannot find workers in an economy still reeling from months of double-digit unemployment rates. Yet research and real-life scenarios support what for many is counter-intuitive. For example:
• The 2010 Manpower Talent Shortage Survey revealed that among the most difficult U.S. jobs to fill today are those in the skilled trades, which encompass welders, electricians, carpenters/joiners and other related occupations.
• A recent CBS News segment reported that the number of open manufacturing jobs doubled in one year to 227,000, yet many are not filled due to a shortage of skilled workers.
• A PBS Newshour report in December 2010 noted “there is an unfilled demand for highly skilled, highly educated personnel in the manufacturing sector.”
• The state of Pennsylvania predicts a shortage of 15,000 to 17,000 in precision manufacturing and industrial maintenance over the next decade.
• The Chicago Manufacturing Renaissance Council told the Chicago Tribune this past December that “technologically advanced factories report a shortage of qualified workers.” In that same story, the president of Chicago-based Laystrom Manufacturing said he searched for four months before he found a maintenance worker who could tend to the firm’s sophisticated laser-cutting machinery.

As more and more baby boomers retire, the problem is expected to accelerate dramatically.

HOW DID THIS HAPPEN?
How and why is manufacturing facing this remarkable dilemma? A confluence of factors is at work:

Manufacturing’s Image Problem
There is no doubt that manufacturing has an image problem – especially among today’s youth. Unfortunately, the old stereotypes of backbreaking labor and grimy working conditions persist. Ask people today what they think of manufacturing and most will probably recite a perception of a dirty, dangerous place that requires little thinking or skill from its workers and offers minimal opportunity for personal growth or career advancement.

Of course, this is totally inaccurate. Today’s manufacturing jobs are “cool” and appealing. Workers are now required to be experts and operate the most advanced, sophisticated equipment and automated apparatus in the world. They can cut steel with laser lights, water jets and plasma cutters, and program robots to paint, package and palletize products. Computer programming and other high tech skills are needed, which dovetails precisely with what younger people love these days – these jobs can be more fun than many service sector jobs.

Jeff Owens, president of the Peoria, IL production equipment maintenance firm Advanced Technology Services, recently wrote, “It’s no secret that today’s youth do not see manufacturing as a glamorous career to pursue. Many perceive manufacturing jobs as low-tech which, in fact, couldn’t be further from the truth. If you go into manufacturing plants, the technical sophistication and the computing power are much more than you might find in an office environment or in many of the computing environments that exist today.”

For now, youth remain unconvinced. A national poll of teenagers underscored in a major way teens’ disinterest in manufacturing and working with their hands. The poll, sponsored by Nuts, Bolts & Thingamajigs (NBT), the Foundation of the Fabricators & Manufacturers Association (FMA; Rockford, IL), showed a majority of teens (52 percent) have little or no interest in a manufacturing career and another 21 percent are ambivalent. When asked why, 61 percent said they seek a professional career, far surpassing other issues such as pay (17 percent), career growth (15 percent) and physical work (14 percent).

A Nation of ‘Non-Tinkerers’
Reinforcing this mindset is American adults’ disinterest in the manual arts. Another NBT poll revealed that America has become a nation of “non-tinkerers”, with 60 percent of adults avoiding major household repairs, opting to hire a handyman, enlist their spouse, ask a relative or contact a property manager. Some 58 percent said they never have made or built a toy and 57 percent state they have average or below average skills at fixing things around the house.

These rather startling findings tell us most Americans simply do not work with their hands anymore, whether it’s to tackle a hobby for pleasure or to handle a necessary household repair. This means young people essentially have no role models when it comes to repairing things themselves or taking pride in building something useful. It’s no wonder that so many teens today dismiss the idea of a career in manufacturing.