In the first week of 2014, people looking for manufacturing jobs have taken heart in predictions of industry growth. According to recent information from the United States Bureau of Labor Statistics (BLS), however, the industry is expected to lose jobs in the years leading up to 2022. Before you throw in the towel, however, it is important to take other industry factors into consideration.
On Dec. 19, 2013, the BLS issued a news release regarding long-term employment predictions that seemed to be at odds with other information from the manufacturing industry. "Employment Projections: 2012–2022 Summary" focused on projections for the state of the labor market over a decade. While many industries are expected to grow, including healthcare and social assistance, the BLS projects that the manufacturing industry will lose jobs.
According to the BLS report, the US is expected to lose about 549,500 manufacturing jobs between 2012 and 2022. Other industries that will lose jobs include agriculture, information, and utilities.
US manufacturing companies have been struggling to recover since the recession ended in 2009. Inexpensive international alternatives have driven many companies to outsource their manufacturing jobs. Although the government has been making an effort to bring manufacturing back to American soil, many economic experts believe that the industry will never regain its former strength.
In order for manufacturing to be viable in the US, where worker salaries are considerably higher than in China or the Philippines, companies will need to find ways to cut costs. One of the most popular and viable cost-cutting options is manufacturing automation, which streamlines operations and enables more efficient scheduling. Although automated systems are usually safer, more productive, and more efficient than traditional operations, they do not bode well for people searching for manufacturing jobs. Automated plants require fewer human operators, which may explain part of the projected job losses in the coming decade.
Additionally, according to a recent story from NPR's Planet Money, the number of manufacturing jobs in the US has remained relatively stagnant since 1940. The number of jobs in the industry has stayed at between 10 and 30 million during that period; in comparison, the number of service jobs has risen from approximately 15 million to 95 million in the same timeframe. With that in mind, it is doubtful that manufacturing will ever again be a central figure in the US economy.
Although the industry is not expected to grow dramatically, Americans can expect to see short-term increases in the number of available manufacturing jobs. Over time, however, workers should expect to see the industry change to a leaner, more automated business model.
(Photo courtesy of freedigitalphotos.net)
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