Report: Manufacturers are facing a worker shortage unless they invest in training talent now

U.S. manufacturing could need as many as 3.8 million new employees by 2033, according to Deloitte and The Manufacturing Institute

By Ramona Schindelheim

April 3, 2024

A new report from Deloitte and The Manufacturing Institute (MI) says that the U.S. manufacturing industry will continue to grow post-pandemic, thanks to investments, government incentives, and evolving customer demand.

Despite the positive outlook, manufacturers have a big concern: finding and retaining workers with advanced digital skills.

The industry could need as many as 3.8 million additional workers between now and 2033, and they can and must invest in worker training now to fill those jobs, according to the Taking charge: Manufacturers support growth with active workforce strategies report

Digital Skills and Other High-Level Skills are In-Demand in Manufacturing

The report says that over the past five years, there’s been a 75% increase in the demand for “simulation and simulation software skills, sought mostly for technology-enables production and 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.

“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.”

Positioning for Success

Carolyn Lee is the president & executive director of The Manufacturing Institute. “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,” according to Lee.

Sixty-five percent (65%) of the employers surveyed say filling open jobs and keeping them filled is their top concern.

The report goes on to say, “As the need for higher-level skills grows, Deloitte predicts that as many as five 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.”

Employers are urged to invest in skills and strategies that “address the workforce’s evolving expectations, including flexibility and technology” if they are going to position themselves for success.”

John Coykendall is a principal of Deloitte Consulting and vice chair, U.S. industrial products and construction leader for the group.

“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,” says Coykendall,

Lee adds, “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.”

The report goes into more details on how prioritize that training. You can read Taking charge: Manufacturers support growth with active workforce strategies here.

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Dana Beth Ardi

Executive Committee

Dana Beth Ardi, PhD, Executive Committee, is a thought leader and expert in the fields of executive search, talent management, organizational design, assessment, leadership and coaching. As an innovator in the human capital movement, Ardi creates enhanced value in companies by matching the most sought after talent with the best opportunities. Ardi coaches boards and investors on the art and science of building high caliber management teams. She provides them with the necessary skills to seek out and attract top-level management, to design the ideal organizational architectures and to deploy people against strategy. Ardi unearths the way a business works and the most effective way for people to work in them.

Ardi is an experienced business executive and senior consultant who leverages business organizational transformation through talent strategies. She uses her knowledge and experience to develop talent strategies to enhance revenue and profit contributions. She has a deep expertise in change management and organizational effectiveness and has designed and built high performance cultures. Ardi has significant experience in mergers, acquisitions, divestitures, IPO’s and turnarounds.

Ardi is an expert on the multi-generational workforce. She understands the four intersecting generations of workers coming together in contemporary companies, each with their own mindsets, leadership and communications styles, values and motivations. Ardi is sought after to assist companies manage and thrive by bringing the generations together. Her book, Fall of the Alphas: How Beta Leaders Win Through Connection, Collaboration and Influence, will be published by St. Martin’s Press. The book reflects Ardi’s deep expertise in understanding organizations and our changing society. It focuses on building a winning culture, how companies must grow and evolve, and how talent influences and shapes communities of work. This is what she has coined “Corporate Anthropology.” It is a playbook on how modern companies must meet challenges – culturally, globally, digitally, across genders and generations.

Ardi is currently the Managing Director and Founder of Corporate Anthropology Advisors, LLC, a consulting company that provides human capital advisory and innovative solutions to companies building value through people. Corporate Anthropology works with organizations, their cultures, the way they grow and develop, and the people who are responsible for forming their communities of work.

Prior to her position at Corporate Anthropology Advisors, Ardi served as a Partner/Managing Director at the private equity firms CCMP Capital and JPMorgan Partners. She was a partner at Flatiron Partners, a venture capital firm working with early state companies where she pioneered the human capital role within an investment portfolio.

Ardi holds a BS from the State University of New York at Buffalo as well as a Masters degree and PhD from Boston College. She started her career as professor at the Graduate Center at Fordham University in New York.