Editor-in-Chief
- FMA
- The Fabricator
- FABTECH
- Canadian Metalworking
Categories
- Additive Manufacturing
- Aluminum Welding
- Arc Welding
- Assembly and Joining
- Automation and Robotics
- Bending and Forming
- Consumables
- Cutting and Weld Prep
- Electric Vehicles
- En Español
- Finishing
- Hydroforming
- Laser Cutting
- Laser Welding
- Machining
- Manufacturing Software
- Materials Handling
- Metals/Materials
- Oxyfuel Cutting
- Plasma Cutting
- Power Tools
- Punching and Other Holemaking
- Roll Forming
- Safety
- Sawing
- Shearing
- Shop Management
- Testing and Measuring
- Tube and Pipe Fabrication
- Tube and Pipe Production
- Waterjet Cutting
Industry Directory
Webcasts
Podcasts
FAB 40
Advertise
Subscribe
Account Login
Search
The unfortunate event of retirement
- By Dan Davis
- July 22, 2010
It must be nice—for them at least. Obviously, with the high unemployment and a jittery stock market, many older U.S. workers who had planned to retire in the coming years will probably have to postpone those plans. The American Association of Retired People (AARP) reports that 69 percent of employees over 45 are planning to work past the age of 65.
This is actually great news for the manufacturing community. It needs those workers to hang around.
If all the workers left promptly when they qualified for Social Security benefits, manufacturing companies wouldn't have enough workers to fill the jobs. Just look at Ohio, where officials estimate that 30 percent of the state's manufacturing workers could be eligible for retirement by 2016. Imagine if those all those workers walked out the doors at once with their gold watches and gift certificates. The impact would be huge.
The aging work force isn't a problem solely for the Buckeye State. According to the Illinois Manufacturing Extension Center, the number of workers 55 and older will grow to 20 percent in 2020. For the mathematically impaired, that's one in five workers in the U.S.
This potential wave of retirements—and the potential ramifications—has caught the attention of Ithaca College sociologist Stephen Sweet, co-author of the report “Responsive Action Steps for the Manufacturing Sector.” He points out that the loss of manufacturing employees is huge for companies because those employees take years of shop floor wisdom with them and it costs roughly $5,000 to replace each employee, $2,000 more than in other sectors of the economy.
Sweet suggested that manufacturing companies may have to offer enhanced compensation packages to keep key talent, as opportunities may become more prevalent in the future. Considering that wages for the most part have not risen as aggressively as they did in decades past, these workers may have their eyes wide open for better-paying opportunities.
The associate professor also pointed out that companies might be forced to recruit more women. Men represent two out of every three manufacturing employees, according to Sweet, and as those men leave the workplace, companies will be looking for any qualified person—man or woman—to replace them. This may force companies to consider flexible work arrangements, such as work-share programs, to attract talent.
As previously stated, this weak economic recovery likely will force many workers to stay on the company payroll as long as possible. This is good for manufacturing companies that are heavily involved in succession planning or don't have a robust human resources program.
As I read that last sentence, I realize that I'm saying it's good news that people can't retire on time. Maybe I do need my eyes checked.
subscribe now
The Fabricator is North America's leading magazine for the metal forming and fabricating industry. The magazine delivers the news, technical articles, and case histories that enable fabricators to do their jobs more efficiently. The Fabricator has served the industry since 1970.
start your free subscriptionAbout the Author
Dan Davis
2135 Point Blvd.
Elgin, IL 60123
815-227-8281
Dan Davis is editor-in-chief of The Fabricator, the industry's most widely circulated metal fabricating magazine, and its sister publications, The Tube & Pipe Journal and The Welder. He has been with the publications since April 2002.
- Stay connected from anywhere
Easily access valuable industry resources now with full access to the digital edition of The Fabricator.
Easily access valuable industry resources now with full access to the digital edition of The Welder.
Easily access valuable industry resources now with full access to the digital edition of The Tube and Pipe Journal.
Easily access valuable industry resources now with full access to the digital edition of The Fabricator en Español.
- Podcasting
- Podcast:
- The Fabricator Podcast
- Published:
- 04/16/2024
- Running Time:
- 63:29
In this episode of The Fabricator Podcast, Caleb Chamberlain, co-founder and CEO of OSH Cut, discusses his company’s...
- Trending Articles
AI, machine learning, and the future of metal fabrication
Employee ownership: The best way to ensure engagement
Steel industry reacts to Nucor’s new weekly published HRC price
Dynamic Metal blossoms with each passing year
Metal fabrication management: A guide for new supervisors
- Industry Events
16th Annual Safety Conference
- April 30 - May 1, 2024
- Elgin,
Pipe and Tube Conference
- May 21 - 22, 2024
- Omaha, NE
World-Class Roll Forming Workshop
- June 5 - 6, 2024
- Louisville, KY
Advanced Laser Application Workshop
- June 25 - 27, 2024
- Novi, MI