Leadership / Management

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There is a critical shortage of skilled workers across all segments of manufacturing in America today.  According to a study conducted by the National Association of Manufacturers, eighty percent of manufacturers report facing a moderate to serious shortage of qualified job applicants.  A number of factors are contributing to the shortage with no immediate relief in sight.

      Perceptions and Myths

In spite of dramatic changes on the factory floor, the perception that manufacturing is back-breaking work in grimy conditions persists.  By and large, this is no longer true.  Dangerous, dirty conditions of the 1950’s have been replaced by intelligent systems requiring high-tech skills. Technology has expanded throughout industry transforming everything from design to shipping.  Robots have replaced repetitious assembly line work and much of the low-skill work has been moved abroad.  Today’s manufacturing jobs require higher levels of skills.  For example, with the widespread advancement of CNC (computer numerical control) tools, machinists must now be computer literate and understand basic electronics and physics. 

      Educational Shifts

Through the 1960’s and 70’s, family wage paying manufacturing jobs were plentiful and attractive. Technical and vocational education programs were present in most high schools and provided a pipeline of skilled workers.  Today, those programs are almost non-existent.  Baby-boomer parents told their children they must have a college education to earn a decent wage and the kids believed them.  High school counselors have routinely steered students into college programs for the past two decades.  Working with your head has been sold as superior to working with your hands.    

      Baby-boomers Age and Retire 

Boomers are aging and beginning to retire in record numbers.  Projections indicate up to 40% of the skilled labor force will retire within the next five years.  The generations behind the Boomers are smaller in number and more likely to have chosen a college career path rather than choosing a job such as welder, electrician or machinist.

      The Alabama Story

In the state of Alabama, the story may be considerably worse.  In a study conducted by the Alabama Technology Network in 2005, employers reported their top barrier to expansion within the next five years as “inadequate access to skilled workers.”  In addition to those factors previously identified, Alabama has a fourth one: prosperity.  Combined, they create the “perfect storm” brewing a severe skilled worker shortage in the state. 

Alabama has enjoyed significant expansion in manufacturing during the past decade especially in the automotive sector.  With the arrival of Mercedes, Honda, and Hyundai the demand for skilled workers has never been higher.  The automotive sector has been a key factor in Alabama’s virtual full employment for the past decade.  With KIA set to come online in nearby West Point, Georgia, and Volkswagen in Chattanooga only a couple of short years away, the demand experienced in the central portion of the state will expand to the southeast and northeast portions and will only continue to rise.  Economic development is not limited to automotive.  Alabama has become the choice location across many manufacturing segments including ThyssenKrupp Steel in Mobile County and National Steel Car in Colbert County.  All of these employers are seeking skilled workers.

What Can You Do?

There are only two ways to ensure you will have the skilled workforce you need to operate and grow your business.  You can either hire somebody else’s workers or you can begin a process to grow your own.  Both approaches have challenges and costs associated with them.

Before hiring a skilled worker from another company, carefully consider why they would join your organization.  Can you offer the work environment that will keep them and develop them into a long-term, productive worker?  If they are only “following the money”, will they bolt with the next offer?  Turnover carries significant short and long term costs.  Depending on your goals, stability in your workforce may be essential.

If you are willing to invest in a long-term strategy, there are a number of things you can do.  Consider the following:

Internal training and development programs – If you don’t have a formal in-house training program, consider beginning one.  It doesn’t have to be elaborate to start.  Begin by pairing one of your experienced workers with a less experienced one who has demonstrated a willingness to learn.  Mentoring relationships can be enormously successful especially when encouraged by the employer.

Tap the retiree base – Check with your retired workers to see if they have an interest in returning to work even if only part-time.  Many employees have retired early only to find they miss the activity and the income.  Two or three days a week from an experienced skilled worker could be worth several days from one who isn’t productive. Consider job-sharing arrangements if you need to cover a full-time slot.  Your retirees can also contribute significantly to your internal training efforts.

Community Colleges – Community colleges are a largely untapped resource.  Many have certificate or associate degree manufacturing education programs.  Consider partnering with one to build an apprentice or co-op program for your business.  All of them have placement services designed to find employment opportunities for their students.  Develop a relationship with their counselors; sell your business to them so they will sell it to their students.  Identify students in the program who might be a fit for your business and create a program whereby you provide on-the-job experience to track along with their education curriculum.  Sponsor their tuition in return for employment following completion of their certificate program. 

K-12 – You may already participate in high school career day events; continue to do so.  However, influence should be shifted earlier in the process. Today’s middle school students are already thinking about how they will spend their careers.  Get involved with elementary and middle schools through adopt-a-school programs or by sponsoring school events.  Become visible and let kids know about your business.

Marketing Now and Forever – Years ago, there was always a line at the personnel office of the best known manufacturing companies.  Not so anymore.  If you’ve built a business where people want to work, good for you.  You still have to tell your story.  If you don’t already have one, create a short marketing video that tells the story of your business and shows your processes.  You can use it in all of your recruiting activities.  Make your web site your interactive home where people can learn about your company and your career opportunities.  Use the technology to demonstrate up front that manufacturing today is much more than drudgery and grime.

None of these strategies are instant and none are cheap.  All require an investment of your resources and add to your cost of doing business.   However, without the skilled workers you need, you will not be able to compete at any price in the future.

For more information about Ken Chapman and Associates’ Leadership Development Programs, contact Ken Chapman at 205.366.0265 or email Ken at kchapman@leaderscode.com.

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