The Institute and Accenture have partnered on a major new report called the 2014 Manufacturing Skills and Training Study looking at the state of the manufacturing sector in the U.S., the extent of the shortage of skilled workers, the cost of that skills shortage to company earnings, and the response of companies through investments in training. Here are the highlights of the report:
U.S. Manufacturers are Ready to Grow
- 50% of companies surveyed plan to increase U.S.-based production jobs by at least 5% in the next five years.
- Nearly 25% of companies plan to grow more than 10% in the next five years.
U.S. Manufacturers Continue to Experience a Skills Shortage
- 80% of manufacturers report a moderate or serious shortage of qualified applicants for skilled and highly skilled production positions.
Skills Shortages are Causing Significant Impacts to Company Earnings
- More than 70% of manufacturers report at least a 5% increase in overtime costs and nearly one-third report a greater than 10% increase in overtime costs.
- Nearly two-thirds of manufacturers report at least a 5% increase in production downtime and production cycle time.
- The total cost to manufacturers of skills shortages are up to 11% of net earnings.
Manufacturers are Spending Significant Resources on Training the Workforce
- Manufacturers invest approximately $3,000 in training for each new hire.
- Manufacturers spend approximately $1,500 per employee in training each year.