For example, in the Philadelphia area, about 56% are training their existing staff more, the Philadelphia Fed reported in their latest survey. Almost two-thirds of manufacturers surveyed said they were stepping up their recruitment efforts. Many also are pairing up with area schools, including high schools, junior colleges and community colleges, to align a school’s curriculum with a company’s skill needs. In fourth place in the survey was the offering of higher wages. About one-third of respondents reported increasing salaries.
These companies are motivated, just like counterparts across the United States, by the increasingly steep costs of going without qualified personnel. In fact, U.S. manufacturers may be losing up to 11 percent of their earnings each year as a result of increased [hiring and training] costs stemming from a shortage of skilled workers, according to a new study by Accenture and The Manufacturing Institute.
Meanwhile, the National Federation of Independent Business reported that 41 percent of small-business owners are said to be seeing few or no qualified applicants for their job openings. As a result, fully 24 percent said they have job positions they can’t fill right now.
In the Accenture study, 39 percent of manufacturing executives surveyed described the shortage of skilled, qualified applicants as “severe” and 60 percent said it has been difficult to hire the skilled people they need. Meanwhile, more than 50 percent of respondents were planning to boost output by at least 5 percent over the next five years and many will likely need to add personnel to manage the growth.
The cost damage comes in overtime, increased cycle and down times, higher amounts of scrap materials and reductions in quality.
Accenture’s report suggests that companies hiring for quality traits and then doing their own training are on the right track. “Given today’s limited pool of relevant talent, companies may have to forget the notion of the perfect candidate,” said Matt Reilly, senior managing director of Accenture Strategy, North America. “Instead they should look for more generalist skills in candidates and develop them to match the specific work that needs to be done.”
Overall, the skills shortage has become a huge constraint on growth of U.S. manufacturing, even while many other more favorable factors have emerged to encourage it. Solving this particular problem needs to be looked at as a long-term proposition with collaboration from the entire leadership team.
Additional reading:
Out of Inventory: Skills Shortage Threatens Growth for US Manufacturing
How Some Companies Are Bridging the Skills Gap
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
