According to a recent study by Deloitte and The Manufacturing Institute, the U.S. manufacturing industry could have a labor shortage of nearly 3.8 million jobs between 2024 and 2033, assuming the current pace of investment and growth continues. The report warns that half of these positions may remain vacant if industries fail to address the workforce challenges.
Despite post-pandemic growth, the manufacturing sector is grappling with a skills shortage in the labor market. The majority (65%) of manufacturers identified recruiting and retaining skilled employees as their primary business concern. An inability to fill the projected vacancies could negatively impact the industry's productivity and operational efficiency and increase the workload for existing staff. This could lead to job burnout, high employee turnover, and slow down innovation and market competitiveness.
In the past half-decade, the use of simulation and simulation software skills has spiked by 75%, primarily in roles related to technology-enabled production or testing. From 2022 to 2032, the most in-demand professionals will likely be statisticians, data scientists, engineers, logistics experts, computer and information systems managers, software developers, and industrial maintenance technicians.
John Coykendall, Principal at Deloitte Consulting LLP, and Vice Chair, U.S. Industrial Products and Construction Leader, commented on the findings. He said, "Companies that prioritize strategies to bridge the skills and applicant gap will capitalize on the growing opportunities in the manufacturing industry. Fostering talent development, whether from the existing workforce or new industry entrants, is crucial for maintaining the momentum of continuous innovation.”
The study also found that over 90% of manufacturers have built partnerships to bolster their workforce. On average, these companies have formed four or more alliances. This collaboration pattern, involving technical colleges, educational institutions, industry associations, and regional and state agencies, is aimed at creating, using, and supporting training initiatives to cultivate new talent.