How to give U.S. manufacturing a makeover
By Jonathan Webb
American manufacturing is staging a comeback. More companies are building new facilities stateside or expanding existing ones.
The biggest headwind? Companies are struggling to fill positions on -- and off -- the factory floor.
There are three simple ways manufacturers can bring the talent they need on board. First, sell potential workers on their enterprises while they're still in school. Second, make opportunity for advancement a priority. Third, design a workplace that appeals to blue-collar and white-collar workers alike.
America is home to nearly 400,000 manufacturing facilities, an increase of 11% since 2019. E-commerce, which makes up one-fifth of retail sales, requires three times more industrial space than brick-and-mortar retail.
American manufacturers will have 3.8 million new jobs to fill in the next decade. They're already struggling to fill 1.9 million roles today. The two biggest reasons? A skills gap and a shortage of applicants.
Companies need to evangelize, early and often, by dispatching employee-alums to colleges, vocational schools, and business schools to tout their compensation packages, opportunities for advancement, and advantages of their facilities.
Next-level engagement can include partnering with schools that have proven good sources of talent to ensure students are getting the skills companies need -- from supply chain to warehouse management. Nearly 95% of manufacturers surveyed by Deloitte had at least one such partnership.
Some things that manufacturers perceive as disadvantages in recruiting can actually end up being strengths. Many young people are enticed by big-city life -- until they encounter the cost of living. Manufacturers in small towns and exurbs can cite their locations as a quality-of-life asset. In the age of next-day delivery and streaming services, many young people can access the goods and entertainment they want without enduring the high price of urban housing.
Manufacturers can also tell potential hires they offer faster advancement than other employers. Six in 10 workers who left their job in 2021 did so because they couldn't advance.
The manufacturing workforce offers tremendous opportunity for young people. Manufacturing and warehousing rank among the top industries with workers over 55. Nearly 3 million jobs will be opening up because their current occupants will be retiring. Young people who want to climb the corporate ladder quickly will have the chance.
Once new hires report to work, companies can offer thoughtful workplace design that fosters interaction and keeps them engaged with colleagues.
The days of a cubicle farm overlooking a factory floor are over. Research indicates that training rooms, café areas, and collaborative spaces keep employees productive and excited about coming to work.
One large manufacturer in Illinois created a "Main Street" social corridor in the middle of its technology team's office. Employees from all departments sought out the collaborative space, even preferring it to their own desks.
The American manufacturing workforce is on the cusp of a generational turnover. In order to survive, firms need to prioritize recruiting young people, showing them opportunities for advancement, and creating workplaces that people want to come to.
Jonathan Webb is director of workplace & healthcare markets at KI, a global furniture manufacturer in Green Bay, Wis.