Talent shortage still cause for concern among manufacturers, ASQ survey says

An increasing number of manufacturers now struggle to find qualified applicants for open positions, according to data from the ASQ 2016 "Manufacturing Outlook Survey."

Fifty-one percent of respondents said the lack of qualified applicants is their greatest hurdle when hiring for vacant positions, up from 44 percent in 2011 when ASQ last surveyed manufacturers about hiring challenges. According to the more recent data, 25 percent of respondents said their biggest challenge is the time it takes to hire a new employee, while 17 percent cited the lack of budget to fill open positions.

But many manufacturers aren't sitting idle: 55 percent said they've hired an agency to help find skilled applicants, and 41 percent are working with local colleges on programs that teach the skills they need, according to the survey results.

"With the baby boomer generation retiring and leaving manufacturers with vacant positions, the shortage of qualified applicants remains a clear concern for manufacturers," said Cecilia Kimberlin, ASQ chair. "It's pivotal that workers get the training and education they need to fill these roles and be successful in the high-tech manufacturing field.”

Respondents to the survey represent numerous industries, including aerospace, automotive, food, and medical device. More than 900 manufacturing professionals participated.

Manufacturers are split on the impact retirements will have on their organizations in 2016. Thirty-seven percent of respondents expect no change in quality because of retirements, while 33 percent say products and services will be adversely affected. Only 6 percent expect quality to increase.

In late 2014 manufacturers expressed confidence in the economy, with 83 percent expecting revenue growth in 2015, but that confidence had subsided as the year came to a close. According to the survey, only 65 percent of manufacturers anticipate an increase in revenue in 2016.

According to the latest survey, 40 percent of respondents cited the economy as their organization's greatest hurdle in 2016. Thirty percent said the shortage of skilled workers will be the greatest challenge for their organization.

Despite the waning confidence in the economy, 61 percent of respondents expect their organization to increase salaries, while 23 percent expect a wage freeze. Only 2 percent expect their companies to reduce wages. Nineteen percent of manufacturers expect their organization to reduce staff, while 81 percent expect to maintain current staffing levels or hire additional staff.