Survey says underused apprenticeship programs prove their worth amid COVID-19 skill shortages

Thomas has released the results of a survey canvassing 746 North American manufacturing and industrial suppliers to identify the major trends stemming from the global pandemic as the industrial sector pivots its supply chains and tactics to prepare for the new industrial landscape.

A key survey finding shows the value of apprenticeship programs in combating the skills gap: 26% of companies surveyed have adopted such programs, and those that have were overall less impacted by the lack of available skilled labor.

The survey also indicates that while 91% of manufacturers are confident the industry will recover, many predict it will take months to several years to earn back the lost revenue.

"Manufacturing and industrial companies continue to demonstrate remarkable innovation and resilience to overcome the challenges brought on by COVID-19. Our latest survey shows interest in reshoring acceleration,” said Thomas President/CEO Tony Uphoff. "As companies work to adapt and implement the most impactful practices to support the industrial economy, the survey also shows expanding interest in automation, pivoting supply chains, and addressing the labor shortage.”

More than half of the respondents indicated that they meet or exceed industry standards on automation processes. The top three automation technologies that manufacturers are most interested to invest in over the next 12 months are production performance (55%), product testing and quality assurance (48%), and process control (46%).

Nearly 70% of respondents report that they are extremely likely to bring production/sourcing back to North America in the future. Additionally, the top products North American manufacturers are looking to source domestically include metals (15%), machining tools and parts (13%), fabricated materials (13%), and personal protective equipment (12%).

More than one in three companies report they are actively hiring. Additionally, while 52% of companies have continued their apprenticeship programs during the pandemic, 40% report they have paused their programs in place and only 3% have ended them. Additional sentiment from the survey includes that reshoring will ultimately lead to an increase in high-paying jobs, growing demand for skilled jobs, and the need for an exponential number of support jobs.