NEW REPORT | JULY 2019

 

Right now, one-quarter of the manufacturing workforce is over 55 years old. Meanwhile, the manufacturing industry is struggling to attract enough younger workers with the right skills and qualifications. Facing a workforce crisis—with open jobs in manufacturing recently reaching an all-time high—manufacturers are finding that retaining older workers is not only a necessity but an asset.

The Manufacturing Institute’s Center for Manufacturing Research, in partnership with the Alfred P. Sloan Foundation, recently conducted a survey to discover how companies are addressing this shifting demographic challenges.

This workforce issue affects nearly all manufacturers, the study found. Ninety-seven percent of respondents reported that they fear losing institutional knowledge when these workers depart.

“Manufacturing is facing a demographic sea change—leaders in the industry know it, and many are proactively adapting to it,” said Chad Moutray, the Manufacturing Institute’s Center for Manufacturing Research director and the National Association of Manufacturers’ chief economist. “Given the current workforce crisis, other manufacturers should look to the successful initiatives being implemented in the industry and collectively expand on them to develop the workforce of tomorrow. The simple fact is that companies are very concerned about losing their top talent to retirement and are finding creative ways to keep them longer and to train younger workers.”

 

The study also examined the innovative approaches manufacturers can use to extend older workers’ productivity and help transfer institutional knowledge to the next generation. For example, manufacturers are implementing upskilling and training programs to address the challenges this demographic may experience. Sixty-nine percent of companies said they had on-the-job training programs, and 54 percent said they have internal technical training programs.

“Manufacturers are utilizing the expertise of their older workers, implementing policies and procedures to keep them longer and creating opportunities to pass on their knowledge and talents to the next generation,” said Carolyn Lee, the Manufacturing Institute’s executive director. “The reason for this is clear: unlocking the knowledge of today’s older manufacturing workers is critical to shaping tomorrow’s industry leaders.”

Read the full report.

The skills gap and the need to attract and retain a skilled workforce continues to be the number one concern facing manufacturers in the U.S.

At a time of record low unemployment, the median age of a manufacturing worker has risen in recent years, but employees are also working longer than before. Against this backdrop, The Manufacturing Institute studied the upskilling strategies utilized by manufacturers targeting their aging workforces and explored best practices on how these companies have been able to successfully extend the working years of this important group. Through a survey of manufacturers and a series of interviews with industry leaders, The Manufacturing Institute distills the findings of that research process, evaluating the extent to which the manufacturing sector is aware of the aging of its workforce, the nature of the industry’s concerns surrounding this demographic shift and how manufacturing firms have adapted to this trend. This research was generously funded by a grant from the Alfred P. Sloan Foundation.

Download the full report here.

 

 

 

 

 

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News, Skills Gap, Workforce / Skills Gap