Kevin Stevick is the President and CEO of SteelCraft, a Materials Manufacturing company based in Hartford, WI.
The labor shortage in the U.S. is affecting every industry, but manufacturing has been among those impacted the most. With industrial demand high, as of June, there’s a shortage of almost 600,000 stable manufacturing jobs waiting to be filled in manufacturing businesses nationwide.
With older employees retiring, the labor shortage has become a pressing concern for manufacturers, employees and investors, as it can affect productivity and growth. Businesses should see this as an opportunity to reevaluate their strategies and implement measures to attract and retain top talent. Below are my tips on how companies can combat the labor deficit, create a positive work environment that values their employees and ensure the future long-term prosperity of everyone involved.
Create an attractive workplace culture.
To attract qualified, highly skilled tradespeople, they must feel valued. A positive workplace culture is essential for attracting and retaining unskilled, mid-skilled and skilled labor.
As employers, we must prioritize employee satisfaction and provide a supportive and inclusive environment that celebrates diversity, promotes collaboration and facilitates work-life balance. Most important is communication; manufacturing leaders should be versatile enough to know how to talk to a brand-new apprentice on the shop floor and to present quarterly earnings reports in the boardroom.
Businesses can increase employee morale, productivity and loyalty by cultivating a culture of respect and appreciation where, after they’re trained, workers can earn more than the living wage for their valued skilled labor, in addition to receiving a benefits package that allows them to stay healthy and happy. At my company’s manufacturing facilities, for instance, the average manufacturing employee makes more than the estimated living wage for a young single person.
Prioritize training.
In manufacturing, where occupational accidents loom, training is crucial. That’s why for the past 20 years, I’ve seen even more value investing in training programs than investing in the latest piece of cutting-edge machinery. The more you take care of your people, the happier and more productive they are, and providing the opportunity to learn new skills is just one way manufacturing executives can achieve that.
Right now, there is a skill divide between the younger and older generation, and it’s up to industry veterans to bridge that gap by upskilling low- and mid-skilled workers to make room for entry-level employees. The best way to attract candidates who might not possess all the required qualifications is by providing training opportunities and skill development courses to help grow their careers.
Keep in mind that each individual is different; front-office workers and shop floor workers will require different training programs, but you can aim for a culture that rewards and promotes from within. My team, for instance, is constantly on the lookout for employees who show a talent for leadership and other skills and seek to provide those employees with opportunities to further their careers.
Your long-time employees know the business inside and out, and promoting from within is a great way to ensure operations run smoothly. When the business functions in this way, I know from experience that the profits you generate allow you to make other acquisitions, like merging with a smaller company to form an entirely new department that expands your market share, which might also enable you to set foot in a new territory.
When businesses develop a highly competent workforce from within, it not only shows their belief in their employees’ abilities but also provides evidence of the company’s dedication to the long-term success of its workforce.
Consider adopting technology.
One way to upskill employees is by investing in new technological solutions. This serves two purposes: In the short term, companies can mitigate the effects of the labor shortage. In the long term, companies can increase output and productivity by eliminating repetitive manual tasks like sorting or stacking parts as they come out of a machine.
In my experience, by incorporating sophisticated tools and software, businesses can streamline operations, boost productivity and reduce reliance on manual labor. This strategy enables employees to constantly improve themselves to concentrate on more strategic duties while maximizing productivity despite limited resources.
Establish partnerships with educational institutions.
Over the past 30 years, college degrees have become a minimum requirement to enter many industries. For young people to have options other than a degree, I believe it’s up to manufacturers to provide a way. The manufacturing community can address the shortage of trade schools by forming partnerships with higher educational institutions, technical schools and local high schools to teach necessary skills in a real-world work environment. For example, my company has partnered with an educational organization to create a program for high school students to effectively intern in a hands-on environment and decide if this is the path they’d like to pursue.
By partnering with these institutions, businesses can contribute to developing relevant curricula so trade schools know what to teach based on real-world demand. This would also lead to new internships and apprenticeship opportunities, allowing more young people access to the manufacturing industry.
Companies can take a proactive approach to overcoming the labor shortage by fostering a positive workplace culture to attract top talent, investing in training and development, embracing technology, providing flexible work arrangements and collaborating with educational institutions. In addition, by anticipating and adapting to the future of work, manufacturers can navigate the challenges of an evolving job market and achieve long-term success. These strategies will enable manufacturers to develop a strong workforce, survive in a highly competitive environment and reach their key performance objectives.
Attracting the next generation will require creativity, but all tradespeople know that creativity is part of the journey. Creativity is the force that eventually sees apprentices supersede their masters.
And that’s precisely what we’re looking for.
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