The Manufacturing Skills Gap and the Economy……And What You Can Do About It

The manufacturing skills gap has significant negative economic impacts. For example, a 2015 study found manufacturing companies lost on average $14,000 for every job that goes unfilled for three months or more because vacancies negatively impact employee morale and productivity.

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The Conference Board has said over the next several years the United States “will experience a labor shortage that will disproportionately affect some industries and professions,” including the skilled trades. And manufacturing.

4 3 Main Reasons for the Labor Shortage

• Low labor force participation

• Declining immigration levels

• Retiring baby boomersSource: Fast Company, “5 Jobs That Will Be The Hardest To Fill In 2025”

5 5 Trades Predicted to be Hit Hardest

Skilled trades

Health care

Manufacturing

Sales

Math-related fieldsSource: The Conference Board, “From Not Enough Jobs to Not Enough Workers: What Retiring Baby Boomers and the Coming Labor Shortage Mean for Your Company”

6 Manufacturing

Those surveyed were positive of manufacturing being a rewarding career choice with good compensation, yet little more than a third, 37%, would encourage their children to enter the industry.

Source: Deloitte, “Public perception of the manufacturing industry”

7 Manufacturing

• Facing shortage of 2 million workers by 2020

• Millennials ranked manufacturing last of 7 career choicesSource: Deloitte, “Public perception of the manufacturing industry”

8 Solutions to Reduce the Skills Gap

Immigration reforms that allow access to low- and high-skilled workers

Vocational education, job training and certification programs that teach workers the skills needed for 21st century jobs

Streamlining federal job training programs

Limiting burdensome labor and employment regulations

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1. Share this presentation

2. Plan a voter registration drive at your organization

3. Vote in November’s election! (Get the information you need in MSCI’s election center.)

So what can you do about it?

10 Conclusion

For more information about efforts to advocate for a more stable manufacturing workforce and MSCI’s stance, download our Ensuring a Stable Workforce talking points, or visit the new MSCI advocacy website.

Metal Matters