In the United States, the aftermath of the COVID-19 pandemic can be felt throughout the manufacturing industry. According to the Bureau of Labor Statistics, the industry began to see a slow recovery in non-farm manufacturing employment rates in 2021, with some industries even fully recovering and subsequently expanding. The rise is still apparent in 2022, as more companies open and re-open. In fact, total non-farm employment in 2021 rose at its historical highest since 1978, rising by 6.7 million.
In addition, organizations like the National Association of Manufacturers (NAM) recommend industry efforts that encourage long-term job growth. In its 2022 outlook report, NAM cites acquiring and maintaining a high-quality workforce as one of the top challenges of post-pandemic growth, even despite higher salary rates.
Understandably, the skills gap is still an issue for many employers. In another report, NAM predicts that some 2.1 million manufacturing jobs will go unfilled by 2030. The talent shortage is getting worse. It’s now 36% harder to find the right person than it was last year, and even though unemployment has nearly doubled what supply of available workers there are in the U.S. — manufacturers still have a difficult time finding quality employees.
Manufacturing Recruiting Trends That Affect Hiring
Learn more about the different manufacturing job trends in 2022 and beyond below.
Manufacturers Continue to Experience Disruptions
In February and March 2020, a NAM survey asked 558 respondents to share how COVID-19 had impacted their business. In total, 35.5% of respondents shared that they faced significant changes in their supply chain. In 2022, this number has only increased.
Some firms have followed the recommendation of repurposing their supply chains to “help societies manage the urgent challenges of COVID-19.” As a result, many firms have adjusted their manufacturing recruiting efforts in order to target new skill sets. Even as the effect of the pandemic has waned and the manufacturing industry is experiencing regrowth, the effects of the pandemic will continue to be felt throughout the industry for years to come.
Need For a Safe and Flexible Workforce
Another challenge that manufacturing companies face is safety and flexibility in the workplace. Many companies have changed their workplace guidelines to ensure worker safety.
These changes include new safety protocols for on-site workers and remote work policies for various positions.
One safety trend that has impacted hiring in manufacturing is the need for social distancing. This shift has caused recruiters to rely on technology to support talent acquisition.
Technology has been a rising trend within the recruiting industry, but the COVID-19 pandemic has changed how and why recruiters rely on it.
In the past, recruiters used technology to expand their candidate networks to candidates outside their local area. Now, recruiters must use the same technology to find candidates, interview them, and even onboard them if the position is remote.
More Companies Are Building a Digital Strategy
According to Forbes, the down-level impacts of COVID-19 in the manufacturing industry have resulted in many companies focusing on digital transformation strategies.
A manufacturing leadership survey revealed that 87% of respondents were dedicated to digital initiatives. However, only 14% of those respondents believed their programs had appropriate funding to meet their goals.
This passion for digital change impacts hiring in the manufacturing industry by changing what an ideal candidate looks like. Specifically, this new focus changes the skills that a recruiter might look for during a talent search.
If a firm is passionate about implementing digital change but isn’t sure where to start, they’ll need a candidate with manufacturing experience as well as experience in digital transformation. To meet that need, manufacturing recruiters must adjust how they assess a candidate’s qualifications to ensure that they find the most fitting talent.
Greater Need for High-Quality, Skilled Talent
The manufacturing recruiting trends also point to a rise in job demand; it’s just that the talent pool isn’t keeping up.
In the same 2022 outlook report, NAM found that manufacturers are having difficulty filling open positions. 27% of respondents reported more than 10 job openings at their company, and 23% said they had 50 or more job openings.
The skills gap is a top concern for manufacturers. In fact, 83% of respondents to the NAM survey said that the skills gap would have a significant or somewhat negative impact on their business in the next 12 months. This skills gap will likely cause more disruptions for manufacturers as they compete for high-quality talent. In order to find the talent they need, recruiters will likely have to offer higher salaries and better benefits.
Furthermore, the skills gap is expected to cause a rise in automation. In fact, 64% of respondents to the NAM survey said they plan to increase their use of automation in the next 12 months.
The increased use of automation will change the types of positions that are available within the manufacturing industry. As a result, recruiters will need to update their candidate assessment process to identify talent for these new roles.
Rise in Diversity, Equity, and Inclusion (DEI) Initiatives
The manufacturing industry is no stranger to DEI initiatives. In fact, the industry has been working to increase diversity for years.
However, in recent years, there has been an increased focus on DEI initiatives from both the public and private sectors. This shift has caused an increase in the number of DEI initiatives within the manufacturing industry. Such initiatives exert a growing influence on workforce trends and can help manufacturers fill empty jobs.
Candidates with diverse backgrounds can bring new perspectives to the table, which helps a company grow. As a result, many firms have started to focus on recruiting a more diverse workforce. This trend has caused many manufacturing companies to reassess their recruiting strategies.
Specifically, these firms have begun to focus on where they post job advertisements, what language they use in those postings, and how they can make their manufacturing jobs more appealing to a wider pool of candidates.
In summary, the manufacturing industry is facing several challenges that will impact recruiting in the next few years. These manufacturing job trends highlight possible roadblocks that include a need for a safe and flexible workforce, a focus on digital transformation, and a skills gap that is causing a rise in automation.
To meet these challenges, recruiters must adjust their candidate assessment process to identify talent for these new roles. With the right talent in place, manufacturing companies will be well-positioned to meet the demands of the future.
Are you looking for talent to aid you as your company adapts post-pandemic?
Contact TruPath Search today and receive a personalized search that fits your company’s unique needs.