Manufacturing & Associated Industries & Occupations Award 2010 – Paul is Vice Chairman of Deloitte LLP and Head of the US Industrial Products and Construction Practice at Deloitte Consulting LLP. He has more than three decades of experience in the industrial products and automotive sectors and focuses on helping organizations address major transformations. Paul leads key industry sector initiatives to help companies adapt to an environment of rapid change and uncertainty – globalization, exponential technologies, skills shortages and the evolution of Industry 4.0. Based in Cleveland, Paul also serves as managing director for Northeast Ohio.
Victor is a Managing Director of Deloitte’s Human Capital practice, focused on helping organizations reimagine their people strategies and HR capabilities to drive business results, improve the talent experience, and anticipate and meet future workforce challenges. He is Deloitte’s human capital consulting leader in the industrial products and construction sector. In more than 23 years as a management consultant, he has designed and implemented programs that include talent strategy, acquisition and development; HR technology strategy and implementation; global shared services and outsourcing; mergers, acquisitions and sales; and workforce analysis. Victor has served clients in the Americas, Europe and Southeast Asia and has worked across multiple industries including energy, aerospace, financial services, telecommunications, healthcare, consumer products, retail and real estate. She holds an MBA from Harvard Business School and a BA in Government from Harvard College and is a Certified Senior Professional in Human Resources (SPHR) and a SHRM Certified Professional (SHRM-SCP). For more than 15 years, he has led pro bono consulting projects for nonprofit organizations across the country. He and his wife live in Washington.
Manufacturing & Associated Industries & Occupations Award 2010
Heather Ashton is Head of Industrial Manufacturing Research at Deloitte’s Center for Energy and Industrial Research and has provided compelling insights into corporate business and technology trends for over 20 years. His experience includes developing thought leadership at the intersection of business and technology and covering emerging technologies from cloud to blockchain to augmented reality.
Changes To Modern Awards Have Commenced With Major Changes To The Use Of Annual Salaries Starting In March
Chad Moutray is Chief Economist for the National Association of Manufacturers (NAM) and serves as Director of the Center for Manufacturing Research at the Manufacturing Institute.
Many manufacturers are still struggling to fill critical jobs, and companies must continue to find ways to expand the talent pool, foster inclusive cultures, and create ongoing skill development programs for the digital future of manufacturing.
The manufacturing industry reported a net loss of 578,000 jobs due to the pandemic in 2020, a figure that represented nearly six years of job growth.
And yet, at any point in the past six months, nearly 500,000 manufacturing jobs remained open.
Meeting Sustainable Development Goals Via Robotics And Autonomous Systems
In fact, the National Association of Manufacturers (NAM) survey of manufacturers’ perspectives continues to find that “attracting and retaining a quality workforce” is one of the top business challenges among respondents.
One of the main challenges for manufacturers today remains the skills shortage in US manufacturing. In 2018, our theme was “The Jobs Are Here, Where Are the People?”
Fast forward three years, and amid a global pandemic and the first US recession in more than a decade, the same headline appears.
In today’s environment, there are nuanced differences that are important to understand because they highlight some of the key challenges manufacturers face: sourcing, training and retaining talent. This report highlights several key findings from Deloitte and the Manufacturing Institute’s 2021 Manufacturing Talent Survey, including:
The Pandemic Has Pushed Women Out Of Work. These Policies Can Help
• The speed of digital transformation in the manufacturing industry is likely to continue to redefine how people work.
In addition to the impact of the pandemic on manufacturing last year, DEI has risen to the forefront of the manufacturing industry. Manufacturers of all sizes are taking the National Association of Manufacturers’ 2030 Industry Action Pledge.
Simple demographic arithmetic dictates that organizations cannot have a sound talent strategy without a solid DEI strategy. Manufacturers are quickly developing a workforce management strategy that expands the diversity of their talent pool, fosters an inclusive culture that will retain diverse talent, and elevate their workforce for tomorrow.
Deloitte and the Manufacturing Institute conducted their fifth survey of manufacturing talent in more than a decade. The study includes two separate online surveys conducted between December 2020 and February 2021 of more than 800 US manufacturers, interviews with manufacturing executives of all sizes and in all sectors, extensive analysis of secondary data on labor supply and demand, and economic forecasts. From Deloitte’s economics team.
What Is Industrial Engineering?
At the core of virtually every manufacturing environment is a choreographed interaction between man and machine. Production lines hum with a symbiotic set of machines and the people who oversee their operation. Despite the influx of more than 2.7 million industrial robots in use worldwide
– including fixed robotic arms, mobile cobots and autonomous vehicles, moving materials and finished goods – humans are still needed to help produce the vast majority of goods that industry produces worldwide. In executive interviews conducted during this year’s survey, the distress signal repeated: “We can’t find the people to do the job.”
This view is backed up by data: Sixty-seven percent of surveyed manufacturers anticipate continued difficulties in attracting and retaining workers in 2021 and beyond.
Unpacking this reality further reveals two important aspects that define the industry’s current shortage—the challenge of filling entry-level positions and the difficulty of finding qualified talent.
Do Not Blame Trade For The Decline In Manufacturing Jobs
First, many manufacturers cannot fill entry-level manufacturing associate positions. These are jobs that don’t require technical skills or industry knowledge, such as team assemblers, production work assistants, and hand tool cutters and shavers.
Rather, they need someone with a basic level of “human ability” such as following directions, being willing to learn, and following through. These entry-level positions can be filled by people who have recently moved from other industries (hospitality, food service) or high school graduates, and the starting wages in manufacturing are well above the local minimum wage (the average wage for rigging is $15.55, double the federal minimum wage of $7.25 per hour).
But applications for them are not being collected (see sidebar, “Manufacturing Workforce Puzzle”). And there is no sign of this trend changing. In fact, US manufacturing executives surveyed believe that finding the right talent is 36% more difficult now than it was in 2018. As one executive worried, “Is there a point where we’re going to run out of manufacturing workers, or where we should have them. Are you thinking of moving somewhere else?”
The outbreak of the pandemic initially destroyed ~1.4 million US manufacturing jobs, reversing more than a decade of manufacturing job growth.
Industries With The Highest (and Lowest) Turnover Rates
Although the industry was able to hire 820,000 of these jobs by the end of 2020, the remaining 570,000 have not yet returned, although there are currently almost 500,000 vacancies (Figure 2).
An analysis of the fastest-growing manufacturing occupations over the next decade reveals that five out of six of these occupations require skill sets that include human and technological aspects, but often do not require formal post-secondary education.
A second aspect of the current shortage is that manufacturers are finding it increasingly difficult to fill middle-level jobs. These jobs usually require some level of technical training or applied skills. Examples include computer numerical control (CNC) machinists, welders, and maintenance technicians. With more experience, some of these jobs require more specialized skills. Unlike the first category, these jobs usually can’t be filled immediately by someone from another industry or a recent high school graduate. Rather, they often require a hands-on, applied training program that can take anywhere from a few months to over a year. Some also require licensing and certification. Figure 3 highlights the critical middle-skill positions that remain unfilled in manufacturing today with planned jobs for 2019-2029.
While both types of job shortages are putting significant pressure on many manufacturers — even as they face the ongoing challenges of maintaining operations during the pandemic — there is a third and larger challenge facing the industry over the next five to 10 years. As the digital transformation of the manufacturing industry continues to evolve, the skills required to perform a job in a smart factory will likely differ from those of today. But today’s manufacturing workforce lacks these skills. And without changes in the skill mix of the workforce, manufacturers could leave up to 2.1 million jobs vacant between 2020 and 2030, affecting everything from productivity to innovation and competitiveness to GDP (Figure 4).
Abc: Construction Industry Faces Workforce Shortage Of 650,000 In 2022
Digital transformation in the manufacturing industry continues to make steady progress. Despite a year of historic disruption to jobs, the workforce and the workplace, manufacturers shared common experiences of accelerating digital adoption to help mitigate some of the pandemic-related disruptions in manufacturing environments.
In the 2021 Deloitte Global Sustainability Survey, 57% of manufacturing respondents reported using advanced technologies to redesign work tasks (eg, automating previously manual tasks).
Adding more cobots or other sources of automation can help maintain production, but also puts pressure on the factory to ramp up workers quickly to accommodate new technologies. Manufacturers that have not considered this workforce transformation may struggle to adapt. In Deloitte’s Global Human Capital Trends Survey 2020, 75% of industrial organizations rate workforce reskilling as important or very important to their success in the coming year, but only 10%