Talent shortage grows as risk for the manufacturing industry, reveals BDO study

While the manufacturing industry is in resurgence, concern over the industry’s talent shortage is escalating. Findings from the third annual BDO USA LLP analysis of risk factors listed in the most recent 10-K filings of the largest 100 publicly traded U.S. manufacturers reveal that challenges persist when it comes to closing the industry’s skills gap. Ninety-eight percent of manufacturers mentioned risks related to labor concerns, up from 97 percent in 2014 and 75 percent in 2013, according to the "2015 BDO Manufacturing RiskFactor Report."

Manufacturers face a one-two punch of struggling to attract workers, while their talent on the factory floor and in the C-suite is increasingly approaching retirement. By 2030, more than 20 percent of Americans are projected to be aged 65 and over, compared with 13 percent in 2010 and 9.8 percent in 1970, according to a recent study from the U.S. Census Bureau.

Amid the retirement of leading innovators and strategists, 74 percent of manufacturers mentioned concerns about attracting, retaining, and motivating key personnel and management, up from 69 percent in 2014 and 62 percent in 2013.

With many jobs to fill now and in the future, the manufacturing industry is feeling the pinch to properly execute business strategy, as well as create next-generation product. Risks related to the implementation of corporate strategy are mentioned by 91 percent of manufacturers, up from 82 percent in 2014 and 74 percent in 2013. Continued product innovation also is a growing risk, mentioned by 85 percent of manufacturers, up from 78 percent in 2014 and 69 percent in 2013.

“Thanks to the resurgence, manufacturers are on even economic footing and as a result are growth-focused,” said Rick Schreiber, partner, manufacturing and distribution, BDO USA. “However, the challenge remains of filling their talent pipeline in order to pursue these expansion goals and drive the innovation that is needed to remain competitive in a global economy.”

For more details about the survey, visit www.bdo.com/news/2015-may/talent-shortage-grows-as-risk-for-manufacturing.