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Tapan Munroe, Ph.D.'s avatarPerspectives on the Economy

A recent Deloitte Consulting study concludes that nearly 83 % of manufacturers surveyed  report serious shortage of skilled production workers. In addition nearly three-quarters of the manufacturers report  that shortage of skilled production workers translates into adverse impact on productivity as well as plant expansion .It means passing up of new business opportunities .

According to the Wall Street Journal (Nov 26-27,2011), AAR Corporation,a Chicago based aviation-parts manufacturer has currently 600 job openings in welding and maintenance mechanics.These jobs do not require college diplomas but require mechanical skills and pay well.The company is unable to start a third shift but can’t do it because of shortage of skilled workers.

Skilled worker shortage has ripple effects.When businesses can’t expand because of lack of skilled workers means fewer opportunities for less skilled workers such as security personnel,forklift drivers, maintenance and janitorial staff.It also adversely affects those who work in the supply chain such as parts suppliers.

In most economic recoveries there is…

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