Budgeting For The Labor Shortage

Manufacturers continue to face mounting challenges as a result of the labor shortage, including a shrinking talent pool — very few millennials are joining the industry, but baby boomers continue to leave. In fact, predictions show 4.6 million new manufacturing jobs will open over the next 10 years, with 2.4 million remaining unfilled due to the skills shortage. In addition to this, tariffs are further straining manufacturers by increasing demand in a market where there’s not enough people to do the work.

Tariffs are part of a long-term strategy to bring manufacturing back to the U.S., but it won’t be a painless process. While reinvestment in U.S. manufacturing is ultimately positive, the industry will experience increased pressure to meet demand with a shrinking workforce — making it more important than ever for companies to prioritize hiring and retaining top talent.

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