Deloitte analytics manufacturing real view


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Deloitte analytics manufacturing real view

  1. 1. Shaky ground?How can U.S. manufacturers access the skillsand talent they need? SHAKY GROUND? A snapshot of the manufacturing skills gap Real Analytics As U.S. manufacturers gear up for the next wave of even tougher global competition, they face a stubborn talent dilemma. They can’t find the talent they need, where it matters most—even in the face of high unemployment. And as the skills requirements change along with the industry, they can be at risk of falling even further behind on the talent front. Here’s a look at a few of the key trends fueling this important issue. TALENT CRUNCH During the next three to five years surveyed manufacturers anticipate hiring challenges in MOVING TARGET many workforce segments, but skilled production tops the list. Here is a breakdown of the The nature of manufacturing work itself is changing quickly, making it hard for top three segments and the percentage of responding manufacturers that chose them: talent to keep up. Redesigned production lines are one of the biggest changes. 80 % Skilled production Machinists, craft workers, distributors, technicians Redesigned/streamlined production lines Increased use of automation 48 % Production support Industrial/manufacturing engineers, planners 29 % Scientists and design engineers 83% 51% Skilled production Production 74% support Unskilled 42% production 23% WHO’S NEEDED MOST? Skilled production workers can have the biggest impact on performance. And that’s where most manufacturers have encountered their biggest challenges. Source: Deloitte and The Manufacturing Institute. "Unwavering Commitment: The Public’s View of the Manufacturing Industry Today," (September 2011). Copyright © 2012 Deloitte Development LLC, All rights reserved. As most U.S. manufacturers look to regain momentum in • What impact is the skills gap having on company the wake of the global economic crisis, they face some performance? well-documented challenges — starting with talent. For • How is it evolving in the face of continued economic and many, this isn’t news. For years, manufacturers have competitive challenges? reported a significant gap between the talent they need to • Which manufacturing jobs are being affected the most? keep growing their business, and what they can actually • What does the future of talent look like? What trends are find. So Deloitte and the Manufacturing Institute recently manufacturers preparing for today — and how? commissioned a survey to dig deeper into this stubborn trend, asking U.S. manufacturing leaders questions such as
  2. 2. A look at our results turns up some surprising insights is changing as well. And it’s happening fast, which leaves into the talent gap and how surveyed manufacturers are manufacturers expecting more from their employees. responding. Here are some highlights in addition to those Unfortunately, respondents report that the number one included in the accompanying graphic that should be skills deficiency among their current employees is in the of interest to anyone whose business is affected by the area of problem-solving skills, making it difficult for current fortunes of U.S. manufacturers.1 employees to adapt to changing needs. Among the hardest jobs to fill are those that have What’s next for U.S. manufacturers? the biggest impact on performance. The skills gap is an issue that has reached the boiling point Shortages in skilled production jobs such as machinists, for manufacturers — and the same old approaches aren’t operators, craft workers, distributors, technicians, and enough to close it. Manufacturers should pursue more more are taking their toll on manufacturers’ ability creative approaches to recruitment and talent management to expand operations, drive innovation, and improve to make sure they have the skilled personnel they need to productivity. Seventy-four percent of respondents indicated win in the future. The same goes for developing existing that workforce shortages or skills deficiencies in skilled talent — new performance tools and formal processes can production roles are having a significant impact on their have a big role to play in any talent management plan. ability to expand operations or improve productivity. Unfortunately, these jobs require the most training and are The industry will need help from private-public traditionally among the hardest jobs to find existing talent collaborators, and educational institutions as well. Students to fill. need a clear path for attaining the required skills and training to prepare for a career in manufacturing. That’s High unemployment isn’t making things any easier. easier said than done in an industry environment that is There’s no way around it: respondents report, on median, evolving faster than at any point since its beginning. that 5 percent of their jobs remain unfilled simply because they can’t find people with the right skills. Translated to While daunting, these challenges are surmountable. The raw numbers, this means that as many as 600,000 jobs U.S. has one of the largest, strongest manufacturing are going unfilled — a remarkable fact when the country industries in the world, and has demonstrated an ability to is facing an unemployment rate that hovers around 9 innovate and adapt time after time. Now it’s time to flex percent.2 Respondents report that the national education those muscles. curriculum is not producing workers with the basic skills they need. For more information, please contact: Thomas Morrison Manufacturing work is changing so quickly that it’s Principal harder for talent to keep up. Deloitte Consulting LLP Over the past five years, most manufacturers have +1 215 246 2449 redesigned and streamlined their production lines while implementing more process automation. In short, as the industry has changed, the nature of work that it requires Join the conversation at 1 Deloitte and The Manufacturing Institute. "Unwavering Commitment: The Public’s View of the Manufacturing Industry Today," (September 2011) 2 publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by meansof this publication, rendering business, financial, investment, or other professional advice or services. This publication is not a substitute for suchprofessional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decisionor taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shallnot be responsible for any loss sustained by any person who relies on this publication.As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see for adetailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rulesand regulations of public accounting..Copyright © 2012 Deloitte Development LLC. All rights reserved.Member of Deloitte Touche Tohmatsu Limited