Posted by Ben Dollar on March 25, 2015
Blog posts here on HR Times regularly discuss ways organizations can rethink and revamp their talent programs to better support business strategies and overcome workforce challenges. Today I’d like to broaden the discussion and look at talent strategies as a way to revitalize and protect the future of an entire industry — manufacturing.
First, let’s consider the importance of manufacturing to the US economy. Every job in manufacturing creates another 2.5 jobs in local goods and services1 and every dollar spent in manufacturing adds $1.37 to the American economy.2 Also consider that manufacturing employs 9 percent of the workforce, supporting more than 12 million workers directly and 17.4 million jobs in total. Taken alone, manufacturing in the United States would be the 9th largest economy in the world.3
These are impressive numbers. Manufacturing growth since the 2008 recession is also positive, as GDP attributed to manufacturing increased from 11.9 percent 2009 to 12.4 percent in 2013,4 and data projections suggest 400,000 jobs will be added between 2015 and 2020.5
At the same time, however, manufacturing faces significant challenges, all related to talent, including:
Manufacturing is at an inflection point: Either close the skills gap to support growth and keep and create jobs in the United States or risk increasing reliance on offshore resources. This is no small challenge, and depends on workforce strategies built around elements well known to readers of the HR Times:
I’ve only touched on the situation here, but our recent article in Deloitte Review, Help wanted: American manufacturing competitiveness and the looming skills gap., examines these issues and potential solutions in depth.
|Ben Dollar is a principal with Deloitte Consulting LLP’s Human Capital practice.|
|1Milken Institute and Economic Planning Institute.
2The U.S. Department of Commerce, Bureau of Economic Analysis.
3National Association of Manufacturers (NAM), “Facts about Manufacturing.”
4 Bureau of Economic Analysis, “Value added by industry as a percentage of gross domestic product,” April 25, 2014.
5Deloitte analysis based on data from the US Bureau of Labor Statistics.
6Deloitte analysis based on the US Bureau of Labor Statistics and Gallup survey.
7Deloitte and Manufacturing Institute’s 2014 Skills Gap Study.
8John Paul Williams, “How manufacturing can solve its own talent shortage crisis,” Industry Week, August 21, 2014.
9National Association of Manufacturers (NAM), “Facts about Manufacturing.”
10The Deloitte Millennial Survey 2015.