Manufacturing the Next Generation of Talent
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowManufacturing – long-recognized alongside agriculture as the backbone of Indiana’s economy – is enjoying a resurgence powered by demand and innovation. Just recently, Governor Eric Holcomb began his 2019 State of the State address with news of Fiat-Chrysler’s $400 million expansion in Kokomo. In Marion County, advanced manufacturing expansions like Allison Transmission’s new Vehicle Emissions Testing Facility and Innovation Center accounted for about 300 new jobs alone in 2019 with an average wage of $31 per hour, according to Indy Chamber’s recent report.
With this resurgence lies a mounting challenge – attracting and retaining talent. Despite this challenge, there are actions employers can take to put the right tools and people in place to ultimately propel the manufacturing industry forward.
Across the industry, leaders agree a talent shortage exists in manufacturing due to a widening skills gap. In 2018 alone, the United States manufacturing sector added 264,000 jobs. But according to a study from the Manufacturing Institute and Deloitte, by 2028, some 2.4 million jobs within the industry will go unfilled, putting $454 billion in production at risk.
Marion County finds itself squarely in the middle of this dilemma. As we enter 2020, 62 percent of jobs in Indiana require some form of postsecondary credential, yet just 42 percent of Marion County residents have the education and training they need.
To offset the labor shortage, leaders and workers need to embrace a work environment that blends advanced technology and digital skills with uniquely human skills. Modern manufacturing has evolved to now boast more jobs in product design, engineering and distribution, technology maintenance and information security, science and even finance.
Employers should work to fill these emerging jobs through in-house training programs, partnerships with community colleges, or through workers who are ready to apply established skills to a new industry. Manufacturers are also taking additional steps to retain current skilled workers like raising wages. The Indy Chamber report boasts average wages in Marion County reached a record high of more than $32 per hour in 2019.
Many other employers are working with local schools with apprenticeships and other programs aimed at encouraging students to consider manufacturing careers. Some manufacturers are also exploring adult training classes with a job offer upon completion, scaling back requirements for previous experience, making room for part-time “gig” workers, and welcoming retired workers back to their staffs.
While the manufacturing industry as a whole is thriving, the workforce crisis is more palpable than ever. To overcome these challenges, employers must provide the best training, technology, and leadership available to empower Indiana’s and all of America’s manufacturing workforce to effectively excel beyond that of global labor forces. While it’s difficult to predict the future of manufacturing, the Hoosier state, with its deep roots in the automotive and transportation industries, has always led the way in this field. For certain, developing talent and retaining current skilled workers will continue to be a key competitive differentiator as manufacturing companies compete to be employers of choice.