A report published by Manufacturing Institute and Deloitte states, about 2 million manufacturing jobs in U.S. will remain unfilled in the coming ten years due to poorly skilled labor. However, certain skeptics believe this situation can be salvaged if manufacturers increase their wages.
The estimation is based on the fact that the present population of 2.7 million baby boomers will retire in the coming decade, while an economic growth over the same period will create another 700,000 manufacturing jobs. The survey interviewed 450 manufacturing executives who were emphatic about their worry that 60% of vacancies in the manufacturing sector are dueto lack of required skills.
Arthur Wheaton, Cornell University’s Worker Institute, a skeptic to this market study stated that lack of skill disappears once enterprises are willing to pay higher wages. This theory was seconded by Alan Tonelson, who said that the slow growth in manufacturing wages ever since end of recession in 2009 might have led to the unfilled positions. He further added that a generous wage or compensation has to be considered to fill the shortage.
Oberg Industries’ spokesman stated that the skills shortage seems plausible but it is not applicable to Buffalo Township manufacturer. The company produces stamped and machined components, has presently has just about 17 job openings and will have another 10 in some time. The manufacturing unit represents 5% of the Pennsylvania workforce with over 600 employees. David Getty, the spokesman for Oberg stated that the company plans to manage the baby boomer retirement issue by hiring 30 candidates every year in its apprenticeship program.