Report

Skills Gap in US Manufacturing – 75 percent of manufacturers surveyed report a moderate to severe shortage of skilled resources

A new Accenture manufacturing and skills study, completed in collaboration with The Manufacturing Institute, looks at the skills shortage in the US manufacturing industry and what actions manufacturing companies can take to address this impediment to growth.

Our study includes survey responses from more than 300 executives from a diverse range of US manufacturing companies. It confirms that the current period is favorable for the US manufacturing industry, which has exhibited steady growth in recent years. The study shows that more than 50 percent of companies surveyed plan to increase US-based production by at least 5 percent in the next five years.

Key findings

 

US manufacturers are ready to grow: The study found that 82 percent of survey respondents plan to increase production.

  • More than 50 percent of the companies surveyed plan to increase US-based production by at least 5 percent in the next five years.
  • Nearly 25 percent of survey respondents plan to grow US-based manufacturing roles by more than 10 percent in the next five years.

US manufacturers are experiencing a skills shortage: A shortage of skilled talent exists in the manufacturing industry—and it is likely to become severe in the coming years.

  • More than 75 percent of manufacturers surveyed report a moderate to severe shortage of skilled resources.
  • More than 80 percent of manufacturers surveyed report a moderate to severe shortage of highly skilled manufacturing resources.

Skills shortages are causing a blow to the bottom line: Skills shortages lead to increased production costs that in turn drive revenue losses.

  • More than 70 percent of respondents report at least a 5 percent increase in overtime costs.
  • Thirty-two percent of respondents report increased overtime costs of 10 percent or more.
  • Sixty-two percent of respondents report an increase in production downtime of 5 percent or more.
  • Sixty-six percent of respondents report an increase in cycle time of 5 percent or more.

Capture d’écran 2014-06-08 à 08.38.07

Chosen excerpts by Job Market Monitor. Read the whole story at  Manufacturing Skills and Training Study 2014 – Accenture.

Related posts

US Skills Gap / Who’s to blame for it ?

New data suggest that although many companies continue to complain about the so-called skills gap, few are taking steps to fix it. Continue reading 

US Skills Gap / The Labor Market Polarization

the decline in the share of workers in middle-skill jobs is due both to a decline in inflows into these jobs and because of a rise in outflows from these jobs research finds Continue reading 

US Skills Gap / 39 percent employers are having difficulty finding staff with the right skills finds ManpowerGroup

ManpowerGroup has released the results of its eighth annual Talent Shortage Survey, revealing 39 percent of U.S. employers are having difficulty finding staff with the right skills, down from 49 percent in 2012. U.S. employers report a slightly more pronounced talent shortage than their global peers, 35 percent of whom report difficulty finding the right … Continue reading 

US Skills Gap / Builders can’t find enough qualified workers

U.S. builders and the subcontractors they depend on are struggling to hire fast enough to meet rising demand for new homes. Builders would be starting work on more homes — and contributing more to the economy — if they could fill more job openings. In the meantime, workers in the right locations with the right … Continue reading 

US Skills Gap / What if these assumptions are all wrong?

It is conventional wisdom that the United States is suffering from a severe skills shortage, for which low-performing public schools and inadequate teachers must shoulder part of the blame (see here and here, for example).  Employers complain that they cannot fill open slots because there are no Americans skilled enough to fill them, while pundits … Continue reading 

Skills Gap in US – We are not doing an adequate job of preparing our workforce says Philadelphia Fed President

U.S. employers are having trouble finding workers with the needed skills in science, technology, engineering and math, a top Federal Reserve official said on Monday.  “We are seeing a mismatch of skills in the workforce and the jobs that are being created,” Philadelphia Fed President Charles Plosser said of the so-called STEM-trained workers who are … Continue reading 

Skills Gap in US – It could compromise competitiveness manufacturers say

American manufacturers are increasingly finding that prospective workers do not have the skill set required to perform necessary job functions, such as basic math and computer abilities. The so-called “skills gap,” if unresolved, could compromise manufacturers’ ability to stay competitive, according to some industry leaders. The cause of the gap is multifaceted. Manufacturing activity has increased in the U.S. … Continue reading 

Close the Skills Gap in US – Why are apprenticeships in decline?

Apprenticeships can offer a precise match between the skills employers want and the training workers receive, says Robert Lerman, an economics professor at American University. “It’s a great model for transferring skills from one generation to the next,” says John Ladd, director of the Department of Labor’s Office of Apprenticeship. Nevertheless, according to the Labor … Continue reading 

The Skills Gap in US – Mismatch across industries and occupations explains at most one-third of the total observed increase in the unemployment rate

Aysegul Sahin, Joseph Song, Giorgio Topa and Giovanni L. Violante develop a framework where mismatch between vacancies and job seekers across sectors translates into higher unemployment by lowering the aggregate job-finding rate in Mismatch Unemployment (Federal Reserve Bank of New York Staff Reports ). They use this framework to measure the contribution of mismatch to the recent rise … Continue reading 

Skills Gap in US / A barrier to growth for 25 percent of the private companies

Overall, U.S. CEO confidence is improving in 2014, but one area where optimism continues to lag behind is in finding a qualified workforce. According to the latest PricewaterhouseCoopers Private Company Trendsetter Barometer, 57 percent of companies plan to hire in 2014, but over 25 percent of the private companies surveyed cited finding qualified workers as … Continue reading 

Biden and the Skills Gap in US / 47 overlapping programs in 2009 says GOP

More than 10 million Americans are jobless, but about 4 million jobs were unfilled at the end of November, according to the Bureau of Labor Statistics. Many economists and industry experts attribute the disparity to a gap between workers\’ skills and the skills employers need. “There are plenty of jobs out there, and there’s a … Continue reading 

Discussion

5 thoughts on “Skills Gap in US Manufacturing – 75 percent of manufacturers surveyed report a moderate to severe shortage of skilled resources

  1. Reblogged this on This Got My Attention and commented:
    But, what are these “skills” that are in short supply? I never see any specifics. And, why don’t businesses offer on the job training? Instead of complaining, how about some can-do, git-er-done innovation. Or, is innovation passe in American business? Often “skills gap” seems to be a complaint business use to get money out of the government (that is, the taxpayer). It’s part of a rent-seeking strategy.

    Posted by Mike | June 8, 2014, 9:37 am

Trackbacks/Pingbacks

  1. Pingback: US – The Skills Gap | Job Market Monitor - June 9, 2014

  2. Pingback: Polarization in US – The declining prominence of middle-skill jobs | Job Market Monitor - June 10, 2014

  3. Pingback: Skills Gap in US – Sixty-one percent says it exists but not me! | Job Market Monitor - September 17, 2014

  4. Pingback: Skills Gap in US – The next generation of workers won’t be able to fill the void | Job Market Monitor - March 5, 2016

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Jobs – Offres d’emploi – US & Canada (Eng. & Fr.)

The Most Popular Job Search Tools

Even More Objectives Statements to customize

Cover Letters – Tools, Tips and Free Cover Letter Templates for Microsoft Office

Follow Job Market Monitor on WordPress.com

Enter your email address to follow this blog and receive notifications of new posts by email.

Follow Job Market Monitor via Twitter

Categories

Archives

%d bloggers like this: