Studies reinforce automation, workforce development trends in manufacturing

Two recent reports underscore the trends in manufacturing technology and workforce development: Industrial automation investment is up, and the interest level in trade school among young adults is down. Getty Images

Walking around FABTECH two weeks ago, it was hard to miss the widespread presence of automation – even outside of the designated Robots and Industrial Automation pavilion. Examples of burgeoning automated tech were everywhere: grinding cells, press brakes, self-learning finishing, material handling, large-scale folding, and so on.

That shouldn’t have come as a surprise to any fabricator, welder, or manufacturer at the record-breaking show this year, though. In general, the amplified prevalence of automation in every sector of manufacturing is unavoidable. But so is the industry’s glaring skills gap.

Discussions during FABx Tech Talks and Leadership Exchanges about the labor shortage were equally abundant as the robots throughout the halls of McCormick Place. After all, automation development and skilled worker shortfalls go hand in hand.

In the last couple of weeks two separate surveys have emerged that only reinforce the connection.

Industrial Robotic Automation Continues Steady Expansion

The Robotic Industries Association (RIA), which is part of the Association for Advancing Automation (A3), released a report this past week showing that robotic unit orders have increased more than 5 percent over the past year in North America; to be exact, 5.2 percent through Q3 2019, compared to 2018 results.

So far this year, North American companies have ordered 23,894 robotic units, valued at $1.3 billion. And looking at Q3 results only, North American companies ordered 7,446 robots, valued at $438 million. Both units ordered and revenue are up 1 percent in the quarter compared to 2018.

The largest driver of the year-to-date growth in units ordered was an increase in orders from automotive OEMs at 47 percent, followed by plastics and rubber at 15 percent, and food and consumer goods at 4 percent.

Jeff Burnstein, president of A3 and RIA, said he sees strong interest in robotics from companies that have never invested in robots before and that orders from nonautomotive customers remain near-record numbers. That’s a promising indication for long-term growth in robotics and automation.

“We continue to see improvement in the robotics market,” Burnstein said in the report. “At this time last year, we saw a dip in orders of around 15 percent, so it’s encouraging to see a recovery through the third quarter. We hope to end the year strong and see growth in 2020 as well.”

Survey Reveals Negative Perception, Lacking Awareness of Trade Schools and Careers

One of the biggest culprits in the mounting skills gap is the increasing indifference in manufacturing careers among younger generations. So, really, the skills gap is preceded by a perception gap since potential manufacturers, fabricators, and welders are hindered by stigma even before they get the chance to learn or become interested in a skilled trade.

And according to in-depth data from a new survey commissioned by Metal Supermarkets, a supplier of small-quantity metals, the perception gap is unfortunately holding up.

The national poll of more than 500 men and women ages 18-24 reveals that those surveyed do not give serious consideration to enrolling in trade school as a path to landing a stable, well-paying job and believe attending traditional college is the best path to a successful career.

“Despite skyrocketing student loan debt and the growing global demand for skilled trade positions with great job security, most young people still believe attending traditional college is the only route to a successful future, “said Stephen Schober, president/CEO of Metal Supermarkets.

Here are five items from the Metal Supermarkets survey that stand out:

• Nearly two thirds (65 percent) believe that student debt was simply the price you pay for a college education.
• More than half (56 percent) say they’re not—or never were—interested in going to trade school. Two out of three (66 percent) said they did not know enough about trade schools.
• More than half (62 percent) said they didn’t learn about trade school options in high school, and more than two thirds (68 percent) said trade schools were never discussed by their guidance counselor.
• More than half (58 percent) admitted they do not know about the trade schools in their community.
• Half said they’d rather work in a coffee shop as a barista than as a welder—even though top-paying welder jobs can pay well more than $100,000 a year.

“What they don’t seem to know is that attending a trade school is a great option for students who want to learn a craft, enter the workforce earlier than others, and carry less student debt,” said Schober. “It is also a path to a great career and a potentially high-paying career.”

Additionally, 73 percent polled said traditional college gives you a better future than trade school. A quarter of those surveyed (25 percent) felt students who attended trade schools were not as smart as those who went to traditional college and believe people attending trade schools were not as motivated as four-year college grads. And more than half of the respondents (55 percent) believe people with office jobs earn more respect than those who work with their hands.

The National Center for Education Statistics (NCES) shows that there’s almost a $100,000 difference between attending a traditional college and a trade school. On average, a bachelor’s degree can cost $127,000 compared to $33,000 for a trade school degree.

But, as we’ve seen over the last several years, once traditional college graduates leave with a bachelor’s degree, loan debt becomes burdensome. Take the class of 2018 for example. Student Loan Hero estimates that 69 percent of those students took out student loans and graduated with an average debt of $29,800. On top of that, 12 percent of those student loans were 90 or more days delinquent or in default.

“We need to build awareness about the amazing opportunities that exist in the trades,” said Schober. “We need to fill the growing shortage of skilled workers in the U.S. and let students know that they do not have to drown in student loan debt by attending a traditional college. We hope to see more students considering trade schools and the rewarding careers that come with it.”