In the past, we put together a dream team of manufacturing icons and their contributions. In celebration of Manufacturing Day 2018, we’d like to share key statistics to highlight contributions manufacturing has made over history, and upcoming industry challenges.
Manufacturing Day, Every Day
Every manufacturing job creates another 2.5 new jobs in local goods and services. From another perspective, for every $1 invested in manufacturing, another $1.37 in additional value is created in other sectors. Because of this rippling effect, investing in the manufacturing sector is one the most effective ways to grow the economy overall.
Manufacturing is the fifth largest employment sector in the U.S. Despite slower growth in recent decades, the industry remains a growing contributor to domestic employment.
Annual pay for manufacturers is 12.8% higher than the U.S. average. Manufacturers pay higher starting salaries and require constant skills development and growth. This means that skilled employees are valued more and manufacturing companies are willing to pay for top talent.
Manufacturing production is predicted to grow at a rate of 2.8% from 2018 to 2021. This growth is unprecedented and is expected to outpace overall economic growth (2.3%) over the same period.
3.4 million manufacturing jobs will be created by 2025. Due to industry growth and a retiring workforce, hiring rates will be steadily increasing over the next 7 years.
The Skills Gap
By 2025, 2 million manufacturing jobs are expected to go unfilled. This presents a tremendous challenge and opportunity for companies to attract and train new employees. Outdated assumptions about the nature of manufacturing work has lead to public misconceptions. Fortunately, events like MFG Day and Industry 4.0 technologies are changing that.
94% of manufacturing executives cited internal employee training and development as the most effective way to close the skills gap. With large portions of the current workforce retiring, companies will need to capture tribal knowledge quickly and document training material efficiently.
FOR ACTIONABLE TIPS AND STRATEGIES TO ADDRESS THE MANUFACTURING SKILLS GAP, DOWNLOAD OUR FREE E-BOOK, “HOW TO TRAIN THE NEXT GENERATION OF MANUFACTURERS.”