Why Manufacturing Is More About Skills and Less About Labor

Joe Weinlick
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Industry experts believe manufacturers face a shortage of 2 million manufacturing jobs until 2025. This shortage stems from an aging workforce that is getting ready to retire combined with a greater reliance on automation and machinery. The insufficient number of education programs also threatens to make the labor shortage worse as teenagers find interest in other subjects. Fewer production lines need physical labor and more manufacturers require people who can work on machinery.

Labor Market Changes

The job situation peaked in 1979 with more than 19.5 million manufacturing jobs. As of 2012, U.S. manufacturers employ around 12 million people. The reason for the decline from the 1980s to 2000s was due to companies finding less expensive labor overseas, especially in places such as China and Mexico. Back then, manufacturing needed a lot more workers.

A resurgence of U.S. manufacturing is due to different factors. Instead of more laborers, manufacturers need people who are trained in and have experience operating machinery. This means workers need to know the mechanics and processes that go into manufacturing rather than how to physically move products around a plant. Contemporary jobs mainly require technical prowess as opposed to physical labor compared to jobs in the past.

Engineering Knowledge

Plants have increasingly automated ever since the 1970s when they employed the most Americans. The entire line has some kind of automation, from loaders that start combining materials to palletizers that load finished products into stacks for shipping. Workers need to know how to work with and fix these machines so the plant operates at peak efficiency.

In order for an apprentice to become a journeyman, a plant worker needs a bevy of specialized knowledge and skills to determine how things work on a production line. A worker with advanced training needs to know how to put together smaller components that fit into a larger machine. Welding, drilling and tapping also come into play when putting machines together. A worker also needs to understand pneumatic and hydraulic systems.

In addition to putting physical machines together, employees must be able to operate programmable logic controllers that run machines from one step to the next. If the production line changes, production engineers must be able to reprogram the machine to alter the workload. Some components need to connect to the Internet so computers can monitor the device from a different place in the plant.

Manufacturers also need to troubleshoot machines and maintain them so they do not break down. Automation technology may require new wires, belts, hoses and other parts to continue to operate efficiently. This means a skilled laborer needs to know how to read the plans for the machine, electrical writing diagrams and mechanical prints that show how a machine fits together.

Because plants become more and more complicated, workers must understand the theoretical processes behind the production line and the physical mechanisms that drive the line. That means workers require more education in order to run advanced systems.

Certification and Schooling

Internships or vocational-technical classes in high school can help a potential employee determine if manufacturing is the right area for specialization. Some jobs require experience plus credentials and certification. Welding or machine shop work both usually need some type of formal education.

When manufacturing jobs went overseas starting in the 1980s, high schools and technical colleges focused less on skills needed for manufacturing jobs. As such, many of the workers going into manufacturing now have fewer educational opportunities to learn the engineering skills of the trade. Fewer engineers with an education to work on machines and industrial processes mean companies may have to scramble to come up with workers who understand the automation process in contemporary factories.

Shortage

Higher education means greater pay for people who want to have a manufacturing career versus people who just have work experience in a particular trade. Industrial engineers with a bachelor's degree can earn more than $78,000 annually. Mechanical engineers typically make around $77,000. Unfortunately, a lack of educational programs keeps interest in these fields lower.

Manufacturing employment in the United States is at a critical juncture due to looming job shortages. Engineering positions face a possible crisis due to an aging workforce. Industrial engineers and petroleum engineers, two of the fastest-growing segments of the engineering field, each have one-quarter of those positions filled by people ages 55 or older. In 2013, companies needed 3,500 petroleum engineers compared to just 1,600 graduates with the correct degrees.

Resurgence

U.S. manufacturing is on the rebound as companies recognize that consumers want products to hit the market faster. Although labor may be less expensive in other countries, the extra shipping time, which could take weeks, means products hit shelves later. Companies that bring new products to market faster have an advantage over businesses that do not.

Labor prices in other countries have risen, and better automation means companies need to hire less people. However, manufacturers must onboard the right type of people. Manufacturing jobs continue to increase in the United States rather than decline, but the right kinds of workers simply are not interested in the jobs yet.

U.S. manufacturing can continue to rebound if the industry can fill the millions of open positions coming by 2025. These companies should find and mine talent from high school and colleges so they do not lose revenue and sales due to fewer products hitting various markets.

Photo Courtesy of Stuart Miles at FreeDigitalPhotos.net

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  • Albert Torres
    Albert Torres

    Thank you Nancy. "Flextime"? I will ask my next prospect employer. 7:00 am is perfect for me not 6:00 am. Our metro bus system runs early enough to get me there on time.OUR CITY WON THE NATIONAL TRANSPORTATION AWARD!!! FROM THE FDPT. My last employer NATIONAL OILWELL VARCO WOULD LET ITS EMPLOYEES CHOOSE 6AM OR 7AM START TIME,THEY UNDERSTOOD! WORKED THERE 10 YEARS ,NO PROBLEMS! I HAD A COUPLE OF MAJOR EMPLOYERS TURNED ME DOWN LATELY CAUSE THEY WOULDNT LET ME START AT 7AM. I FEEL THEY JUST BEEN VERY GREEDY AND INCOMPREHENSIVE. THEY HAVENT REALIZED THE BENEFITS OF HOW PUBLIC TRANSPORTATION WILL HELP ITS EMPLOYEES IN THE SHORT AND LONG RUN. I FEEL LIKE EMPLOYERS SHOULD SUPPORT THE METRO SYSTEM FOR ITS EMPLOYEES . RELYING ON ONES CAR EVERYDAY IS EXPENSIVE! CONSIDERING THE WAGES. THIS CITY HAS COME A LONG WAY WITH ITS METRO SYSTEM. BACK IN THE 1950'S WE HAD A PROTOTYPE 1/4 MILE OF ELEVATED METRO RAIL SYSTEM JUST TO BE DISCARTED FOR WHO KNOWS WHAT REASON. SO NOW IS THE TIME FOR EMPLOYERS TO SUPPORT OUR METRO SYSTEM !!!!!! THANK YOU

  • Nancy Anderson
    Nancy Anderson

    @Albert thanks for your comments. Manufacturing sure has changed since our parents' day. Then you could hire on and stay for life - retire after 30 years with a plaque and gold watch. Not today for sure. It's not just manufacturing that doesn't have job security - it's across the board. It's the world in which we live. As for the transportation issue - have you considered asking for flextime? Won't know unless you ask. Ask if you can come to work @8 until 4 or 5 instead of having to be on the floor @7am if the metro isn't running early enough for that. Your employer may not even realize that you don't have your own transportation unless you tell him - and ask for a later start time, if possible. We wish you all the best.

  • Albert Torres
    Albert Torres

    In my Dad's days manufacturing was abundant. He can work for one manufacturing company endlessly.Today, there is no job security here in floor level. And the positive side of metro is that its a guaranteed ride to work every day .If it breaks down ,another one is on its way. Thats the beauty of this VS. the car tear and wear everyday. I SEE THE DOWNTOWN PROFFESSIONAL PEOPLE COME TO WORK IN METRO BY 9:00AM ABSOLUTELY HAPPY!!!

  • Albert Torres
    Albert Torres

    THE wages or salaries havent changed much over the last 10 to 15 years in manufacturing. Im a mechanical electrical assembler all my life. Its a up and down career. Its good when the overtime is available and hell when its not. One point i want to bring up is that employers , "i wish" should simpathize ,understand this subject . THUS, TO WORK CLOSELY WITH EMPLOYEES WHO WISH TO RIDE METRO TO WORK. IT SAVES MONEY IN OUR POCKETS. IVE LOST SOME EMPLOYMENT OPPORTUNITIES LATELY CAUSE IM TAKING THIS ROUTE. WHAT IS WRONG WITH IT!!!! . NOTHING IS! I FEEL EMPLOYERS COULD EVEN IMPLEMENT A 7AM START SHIFT FOR EMPLOYEES WHO ARE RIDING METRO TO WORK AND FEED THEIR FAMILIES. COME ON ! ITS A NEW ERA!

  • Rich Leopard
    Rich Leopard

    I have been in the manufacturing industries for more then 30 years. I have seen lots of improvements , but what irks me the most is I see companys still using production tickets instead of bar codes , sure they have bookoo production tickets laying around but seriously...get with the 21'st century , Please!

  • Jay Bowyer
    Jay Bowyer

    Retraining for a skills-based (rather than labor-based) career in manufacturing has a neat side effect: you open yourself up to a world of tech-based jobs. The tech industry is one of the only rapidly expanding industries left, so perhaps it makes sense to equip ourselves with the qualifications we need to work in either field?

  • Katharine M.
    Katharine M.

    This article seems to focus primarily on recruiting young high school and college graduates to manufacturing jobs- what options are there for older workers or career changers? How would you recommend that they find jobs in manufacturing, if they have the interest but not necessarily the skill set?

  • Kristen Jedrosko
    Kristen Jedrosko

    The manufacturing field is definitely changing and more is required from employees working in these factories. Since it is becoming necessary for employees to have a totally different and unique skill set, manufacturing firms should provide the opportunity for continuing education as well as other incentives. These firms could begin advertising jobs to high school students and offer them an incentive to begin an apprenticeship or internship with the company after high school. These positions should allow for the students to attend classes to learn more about the jobs while giving them the hands-on skills they need to do the job.

  • Jacqueline Parks
    Jacqueline Parks

    I agree that developing a qualified workforce is key to keeping U.S. manufacturing strong. I would like to see information about manufacturing careers made available to middle school and high school students. Growing a qualified workforce includes both the right educational foundation plus students with a desire to move into manufacturing careers. Showing students that manufacturing is an interesting, multi-faceted industry would be a start.

  • Erica  T.
    Erica T.

    I think companies should take more initiative to build an educated, qualified workforce by providing financial aid or other incentives such as guaranteed raises or promotions to existing employees who want to further their education. It should not just be about finding new, younger employees to replace those about to retire, it should also be about investing in employees who still have many years left to work and be productive.

  • Nancy Anderson
    Nancy Anderson

    @Brandon thanks for your comment. Tough position to be in for sure. Have you already applied to other manufacturing firms? Or maybe you want to get out of manufacturing and in to something else? If you can take your skills and knowledge in to another field, that would be the ultimate. But, if that's not possible, do you think that maybe getting a certificate in a different area within your company would be the way to go? @Shannon I would think that for those with experience, that a certificate would be more than enough. After all, they are already experienced in their field so why take on the challenge and expense of trying to fit college into an already full life if it's not really going to benefit you all that much?

  • Shannon Philpott
    Shannon Philpott

    The skill set needed for manufacturing jobs has definitely changed over the years and the need for applicants skilled in innovative technology and equipment has changed the training at colleges and universities. For people already in the field, would you recommend certificate programs at colleges to brush up on the technology or 4-year degrees to boost their opportunities?

  • BRANDON KING
    BRANDON KING

    At the ripe old age of 42 and almost 17 yrs working in manufacturing I am desperately searching for what options are available or offered for securing a more hopeful future in the field with education. Like so many others I'm sure, I am faced with the struggles of needing to work full time and raise my kids on my own that I would be retired by the time I was able to actually complete a BA degree. A little exaggeration there. But it would take what would feel like a lifetime to finish and that reality has to have a better way for us older employees to find, or actually keep a foot in the door as new and improved workers are introduced into the workforce to replace people like me someday. The experience and skills I have working with and on some machines obviously isn't enough as I still earn well under $30k/yr. I need to further my career into something more secure, but I don't know where to start. Do you have any advice about where I might start for finding that kind of aide when time and money are against you?

  • Jane H.
    Jane H.

    I had a strong drive towards creativity from early on in my schooling, but most kids didn't have that. As an adult, I've seen how that plays out; kids grow up and still don't know what they want to do for work. In my opinion, schools need to start earlier to introduce kids to the idea of working when they get out of school with survey courses that teach kids a little bit about a lot of career fields to help them choose; then maybe we'll start to see an increase in the kind of labor force America needs.

  • Nancy Anderson
    Nancy Anderson

    Thanks for the comments. @Duncan so very true. Manufacturing is not what it was for our grandparents. Working in a "factory" is not all about smoke blowing out of the columns and a dirty atmosphere. Today, there are state of the art facilities that anyone would love to work in. @Jacob totally agree that on the job training can be worth so much more than a degree because you will receive training just on the things that you need instead of having to learn everything and then never use it.

  • Jacob T.
    Jacob T.

    Are there major manufacturing companies that have taken the initiative to recruit and provide training to talented employees who simply lack the experience or background to work in these fields? Sourcing capable, driven employees and providing them with intensive on the job training is a good way to overcome a lack of education programs or youth pipeline.

  • Duncan  Maranga
    Duncan Maranga

    There is a common notion of old professionals being considered obsolete by the younger, more vigorous group who are very few. However with manufacturing today, I concur with the idea that it's more about skills than physical labor. The skills can actually be applied in designing even more robust automated control systems that are capable of cutting down physical human labor needs to negligible levels.

  • Nancy Anderson
    Nancy Anderson

    Thanks for the comments. @William so very true. Corporations need to invest in our youth. They need to get them excited about working in manufacturing. They need to show them the "factories" of the old days are, for the most part, gone and, in their place, companies have invested in state of the art facilities. Maybe corporations could join forces with the local high school's vocational education departments. Colleges in the area should work in conjunction with both the high schools and the local corporations. It could be a win-win situation for all.

  • Abbey Boyd
    Abbey Boyd

    I believe that finding interested candidates in the manufacturing field must be tough. Not many kids aspire to work in a factory when they grow up. I agree with William, in that the manufacturing industry needs to find ways to appeal to kids at a younger age. Teach them what the job is really about, what educational route to take, and offer incentives to enter the field. The manufacturing industry needs to get the younger generations excited about the field to avoid further shortages in skilled employees.

  • William Browning
    William Browning

    I don't know if companies should go to high school or colleges to find talent. Employers should try to interest elementary and junior high kids in manufacturing first, and then invest in their own on-site training facilities. Businesses can also pay for college training if employees need to advance their skills to keep jobs.

  • Nancy Anderson
    Nancy Anderson

    @Lydia if the person has some skills needed for the manufacturing job, then they need to build that aspect up on their resume and sort of minimize the rest. They need to sell themselves through their resume and cover letter - explaining why they want the position and how the company would really benefit from their experience and skills - even if they were not in the manufacturing industry.

  • Lydia K.
    Lydia K.

    The article talks about the challenges involved in attracting young workers to manufacturing jobs. But what options are there for older career switchers with experience in other fields? Some people have been laid off from jobs in industries that are no longer growing and are probably more than happy to take a skilled manufacturing job if they had the chance. What advice do you have for someone who wants to transition into skilled manufacturing from another field?

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