By KATHLEEN MARSHALL
April 9, 2024
KEY TAKEAWAYS
- Up to 3.8 million new jobs in the U.S. manufacturing industry could be needed between 2024 and 2033, but half could go unfilled due to workforce challenges, according to a recent report from Deloitte and The Manufacturing Institute.
- Attracting and retaining talent was found to be the biggest business challenge for 65% of manufacturers.
- More than nine out of 10 surveyed manufacturers said they have formed partnerships to attract and retain workers.
The U.S. manufacturing industry could need as many as 3.8 million jobs between 2024 and 2033 as significant investment continues to drive growth. However, according to a recent report from Deloitte and The Manufacturing Institute, 1.9 million of these jobs could be left vacant if employers don’t focus on workforce challenges.1
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The U.S. manufacturing sector faces a skills gap and a tight labor market despite its substantial post-pandemic rebound, the report said. Attracting and retaining talent was found to be the biggest business challenge for 65% of manufacturers surveyed.
Leaving these positions unfilled could result in decreased productivity and efficiency within the manufacturing industry. It could also increase workloads for existing employees, potentially causing burnout and higher turnover rates. Additionally, the lack of skilled workers could hinder innovation and growth, making it difficult for manufacturers to stay competitive in the market.2
Digital Skills Have Highest Demand
In the last five years, Deloitte and The Manufacturing Institute have found a 75% rise in demand for simulation and simulation software skills, mainly for technology-enabled production or testing roles.
Between 2022 and 2032, the fastest-growing occupations are likely to be statisticians, data scientists, engineers, logisticians, computer and information systems managers, software developers, and industrial maintenance technicians, the report found.
“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," said John Coykendall, principal, Deloitte Consulting LLP, and vice chair, U.S. industrial products and construction leader.
"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," Coykendall added. "Companies who invest in upskilling the workforce through training, technology and policies that meet employee expectations are well-positioned for future growth.”
More than nine out of ten surveyed manufacturers said they have formed partnerships to attract and retain workers, and on average, they have formed four or more, the report said.
Partnerships with technical colleges, schools and universities, industry associations, and state and regional agencies are geared toward building, leveraging, and supporting training programs to help address the need to develop new talent, the report said.
ARTICLE SOURCES
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- Deloitte and The Manufacturing Institute. “US Manufacturing Could Need as Many as 3.8 Million New Employees by 2033, According to Deloitte and The Manufacturing Institute.”
- Deloitte and The Manufacturing Institute. "Taking charge: Manufacturers support growth with active workforce strategies."
