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The engine that drives the economy

Manufacturing is Critical in Our Ability to Compete

Jack Keough, Editor/Associate Publisher -- Industrial Distribution, 1/1/2006

A recent article in ID (Nov. 2005) focused on the value of older workers in today's marketplace. We received quite a few e-mails and calls about the article, and it struck a chord with many employees.

Ironically, only a few weeks after the article was published, a survey of more than 800 manufacturers showed that a large number of companies can't find skilled workers to fill open positions. In fact, the serious shortage of finding qualified employees has become so severe that it is taking a toll on America's ability to compete in a global economy. This labor shortage comes despite the thousands of layoffs at many automotive plants.

The survey, conducted by the National Assn. of Manufacturers, and Deloitte Consulting, found that more than half of the manufacturers haven't filled open positions because they can't find candidates with the required skills. In all, 81 percent of the respondents said they face "moderate" or "severe" shortages of qualified workers. The report also stressed the lack of training for current employees to keep up with changes and skills needed in modern manufacturing techniques.

The major problem, according to the study, is that 90 percent of the respondents said they can't find qualified production employees, including machinists, operators, craft workers and technical staff. This isn't surprising, because the average age of a front-line production employee, such as a tool and die maker, is 56. In addition, there is a lack of scientists and engineers, which could lead to diminished innovation in research and development at some companies.

This isn't just a problem for manufacturers. An enormous amount of jobs in distribution, and throughout the supply chain, are linked to manufacturing. While manufacturing has taken a tremendous hit these past few years, it still is the engine that drives our economy.

In its report, NAM and Deloitte offer the following recommendations to deal with the labor shortage:

  • Educators should emphasize science, math and technology-related programs in grades K—12 curricula;
  • State education standards should include career education as measurable criteria for K—12 success;
  • Employers should invest at least 3 percent of payroll whenever possible in training for current employees;
  • Government should partner with business to improve the K—12 and community college system.

jkeough@reedbusiness.com

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