TMA News

Each unfilled position costs manufacturers up to $23,000 a year, study says

Last year, a public policy group visited five key spots throughout the nation to host discussions with company owners and parents. The topic was how to attract more of the next generation into industries that are dealing with the growing skills gap – including manufacturing.

The Committee for Economic Development, a nonprofit, nonpartisan, business-led public policy organization, found that manufacturing is already feeling the pressure of unfilled positions. 

By 2020, 65% of all jobs in the economy are projected to require postsecondary education and training beyond high school (35% at least a Bachelor’s degree, 30% some college or an Associate’s degree). Yet, if the attainment rates mentioned above hold steady, the supply of qualified candidates will fall short. Reports from employers already point to a skills gap, meaning a mismatch between the knowledge and skills of prospective employees and the competencies needed for available jobs.

One report examining middle market companies found that 44% of executives report lacking candidates with the right skills. And according to the latest jobs report, there are more jobs available than there are individuals unemployed. In addition, the skills gap can cost employers up to $23,000 a year per unfilled position.

More on the tour and the group’s finding are available at “U.S. Skills Gap is Hurting Manufacturing”

One of key benefits to membership in the Technology & Manufacturing Association is the access to exceptional manufacturing skills training.