Coping with Manufacturing's
Skilled-Labor Shortages
By Bob Williamson, CMRP
CPMM, MIAM, Editor
In the past, when businesses experienced labor shortages, they would beef up advertising, expand recruitment efforts, and speed up their on-boarding processes. That was when companies were looking for skilled and semi-skilled labor, and unemployment was hovering between 5% and 7%.
Things have changed. Significantly.
Now, the U.S. National manufacturing unemployment rate is just over 3% (as of Oct. 2019, 3.1%). That means employers are trying to cope with one of the shallowest labor pools for skilled workers since World War II. And, as I’ve often said and written (and will continue doing) it’s going to get worse before it gets worse.
States with large manufacturing bases have taken the biggest punch. Look at South Carolina, for example. It’s had concerted efforts to recruit manufacturers and grow manufacturing jobs for the past three decades. As the following statistics show, those efforts have clearly been working.
South Carolina hit an unbelievably low unemployment rate in Sept. 2019. Considering that the historic benchmark for “full employment” in the U.S. was 5%, South Carolina is now experiencing an historic low of 2.9% unemployment statewide. Narrowing this down to the state’s primary manufacturing and distribution centers: Greenville and Spartanburg Counties are at 1.5% and 1.6% respectively. Charleston County is at 1.4%, and Lexington
County is at 1.5% unemployment.
So, what are the answers for South Carolina and other regions when it comes to filling continuing vacancies in skilled-worker positions? Whether your operation currently is, or is not, dealing with such problems, it’s time for all industry professionals (especially those in the RAM community) to think
out of the box, in non-traditional ways, about solutions to the crisis.
Start by asking yourself this question: “Is our business a GREAT place to work?”
Unfortunately, many manufacturing operations are small to mid-sized plants, located in remote or less-than-desirable places with aging populations. Despite the fact that the technology, while not the most modern, still works well, the old-time manufacturing culture simply may not have the luster to attract and retain new talented workers.
Culture change, though, is about more than a company’s image. It’s about the look of the facility, inside and out. It’s about public perception of pay and working conditions. It’s about employee engagement and empowerment. It’s about participating in community events. Here are some suggestions:
* Target recruiting to fill very specific talent gaps in the business. Analyze your current skill sets and the gaps, now and into the future. Actively seek talented workers from other industry types and non-traditional sources.
* Actively pursue and engage technical high schools, community colleges, and technical colleges. Develop apprenticeship-style agreements, internships, co-op education programs, and school visits to get students (and teachers) into your facility early in their education.
* Reach out to your community planners, real estate professionals, and lodging providers. Is there enough housing to recruit new workers to the area? Are the transportation routes (highways, streets, roads) conducive to commuter travel?
* Reach out to the "marginally attached" or "discouraged" labor force. These are people who not employed AND not looking for work. They have a prior work history and may be employable. They're not necessarily looking for work because they believe there is no place for them in
today’s job market. They often believe they are not skilled enough and may have had a very difficult time finding jobs in the past.
* Do whatever it takes to get ahead of the shortages, especially when businesses are having trouble attracting (and retaining) skilled talent in communities where the unemployment rate is below 3%.
As you consider the above suggestions (and others), however, keep in mind that a company’s number-one, top-priority opportunity is to aggressively improve the performance and reliability of its most critical problem-prone assets. Focusing solely on attracting new workers is not good enough.
I’ve been repeating this statement for the past 20 years: "The skilled labor shortage is going to get worse before it gets worse." And, here we are.
bwilliamson@theramreview.com
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