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