Industrial business leaders must find ways to maximize their existing workforce through better technology, more accurate labor management, and improved flexibility and retention practices.
What happened
While a shortage of truck drivers has made headlines since 2005, a broader labor shortage has crept into a variety of other industrial verticals as well. This talent gap has slowly and continuously widened over the past several decades as many U.S. companies moved their manufacturing assets overseas to access cheaper labor.
Why it matters
Now, established and reshoring industrial operators struggle to recruit and retain laborers. About 62% of manufacturers and distributors named hiring skilled talent as a top labor challenge, according to a joint survey of manufacturers, distributors, retailers, 3PLs and other industrial businesses by West Monroe and Supply Chain Dive's studioID.
While 24% of survey respondents named COVID-19 unemployment relief as a hiring challenge, the fact remains that a talent crisis has been spreading across U.S. factories and warehouses for some time. It was there before the COVID-19 pandemic and will continue to challenge business leaders in a post-pandemic world.
"Labor issues are compounding," said Jeremy Tancredi, partner, at West Monroe. "There's not as many people going into manufacturing and distribution as there were in the past. The workforce now is looking for jobs with more flexibility and better work/life balance. Unfortunately, a lot of the jobs in this sector require shift work and forced overtime to meet production plans. While it used to be a more lucrative job, now there isn't as much of a pay differential compared with some less physical, less manual, less inflexible jobs out there. It will continue to be a big challenge trying to get people to sign up for this kind of work."
This news brief is based on reporting published by Supply Chain Dive on 2021-10-18. The original report is linked below.
Supply Chain Dive
https://www.supplychaindive.com/spons/learning-to-live-with-the-manufacturing-and-distribution-labor-shortage/608196/This independent news brief is based on the public source identified above. It is an original summary or translation, not a reproduction of the source article. Rights in source text, research, trademarks and images remain with their respective owners; images are used under the licence or permission identified in the credit. Rights holders may contact rights@goodproductasia.com with evidence of ownership. Verified concerns will be corrected, replaced or removed promptly. This report is not investment, legal, medical or purchasing advice.
