Skills gap in manufacturing

A series of recent reports and newspaper articles point to a growing workforce problem: the shortage of skilled employees in the nation’s manufacturing sector.

According to a recent survey by Deloitte Consulting and the National Association of Manufacturers (NAM), 81 percent of respondents are currently facing moderate to severe shortage of qualified workers. The most pervasive worker shortages occur for technically skilled employees – 90 percent of respondents indicated a moderate to severe shortage of qualified skilled production employees.

In 2005 Skills Gap Report – A Survey of the American Manufacturing Workforce Deloitte and NAM write, “The vast majority of American manufacturers surveyed continue to experience a serious shortage of qualified employees that is causing significant impact to business and the ability of the country as a whole to compete in a global economy.”

Deloitte and NAM continue in a follow-up report, Keeping America Competitive, “Manufacturing could experience a shift from merely having a talent shortage to facing a serious labor crisis. This could foreshadow a significant decrease in manufacturing’s competitiveness and accelerate the movement of American productive capacity and well-paid manufacturing jobs overseas.”

The Deloitte/NAM reports can be found here:

A study conducted for the Wisconsin Manufacturing Extension Partnership (WMEP) indicates that Wisconsin manufacturing leaders, like their colleagues across the country, have “deep concern over for the availability of qualified workers.” The WMEP study reports that 76% of manufactures surveyed indicated that the availability of “skilled/technical” employees would be a “problem” or “major problem” in the next 5 to 10 years. Sixty percent of respondents to the WMEP study said availability of a skilled workforce was their most significant long-term concern (5-10 years) – eclipsing all other factors.

The Wisconsin Technical College System (WTCS) also found a “growing sense of concern about the lack of available worker skills to employ new technologies and process improvements.” As a part of its “Advanced Manufacturing Solutions” initiative, the WTCS is developing strategies to assist Wisconsin manufacturers through worker training and technical assistance.

More information on the Advanced Manufacturing Solutions project can be found at: http://www.wtcsystem.edu/initiatives/advmfg/index.htm

Wisconsin’s technical colleges will be a critical element in addressing Wisconsin’s skills gap. With one and two-year programs in a broad array of technical and industrial occupations such as machine tooling; computer numerical control (CNC) operation; welding; mechanical design; and electro-mechanical technology, the technical colleges represent a direct pipeline into good paying manufacturing.

The technical colleges are also a key provider of skill training for incumbent workers already in the manufacturing sector. High quality technical college training programs specifically tailored to employers’ needs lead to a more productive and flexible workforce, while simultaneously opening to employees the possibility of advancement along career ladders.

We all have a common interest in ensuring the health of Wisconsin’s technical colleges. The programs and training offered by the technical colleges are well connected to current employment trends in the manufacturing sector and elsewhere in the labor market.