U.S. manufacturers are having trouble
finding skilled workers for a growing number of vacancies,
according to an annual poll by the National Association of
Manufacturers.
Forty percent of the 976 member companies that responded to
the economic outlook survey said they planned to add workers this
year, up from 31 percent a year ago. More than one-third – 36
percent – said they have positions unfilled because of a lack of
qualified people, the Washington-based group reported.
“This confirms what our members have been telling us in
recent years – that the people applying for manufacturing jobs
today simply do not have the math, science and technological
aptitude they need to work in modern manufacturing,” John
Engler, president of the association and former Michigan
governor, said in a statement.
Seifert Systems Invests in Energy Efficiency to Strengthen Operations
For manufacturers, energy is more than just another operating expense. It plays a critical role…
Learn More
The labor shortages occur amid increased optimism about
exports and industry’s contribution to the economic expansion.
Manufacturing grew for a 21st month in February, after being slow
to rebound from the 2001 recession, and factory employment rose
last month for the first time since August, according to reports
issued last week.
“Manufacturing has been through a tough patch in recent
years, but we have turned the corner,” said John A. Luke Jr.,
chief executive of MeadWestvaco Corp., the forest products
company, and chairman of the association, in a statement.
Two-thirds of the companies predicted they would grow at
least as fast as the economy in general this year.
Part of that optimism hinges on a rosier outlook for
exports. Three-fourths of companies in the survey expect
shipments abroad to stay at current levels or increase this year.
Exports of goods rose to a record $71 billion in December,
still exceeded by $131.7 billion in imports. The U.S. trade
deficit grew 24 percent in 2004 to the widest ever.
The cost of “non-wage compensation” was ranked as the
greatest concern among respondents. Costs in that group included
health care, raw materials, energy prices and taxes, Engler said.
Forty percent of the projected job openings this year will
be for skilled production workers, the survey found. Low skilled
jobs will make up about 23 percent of the additions. Service
workers hired in support positions will account for 5 percent,
and 9 percent of the additions will go to “highly educated
professionals.”
A majority – 53 percent – expect the economy to grow 2
percent to 2.9 percent this year. Twenty-eight percent expect
growth of at least 3 percent. Nineteen percent forecast growth of
less than 2 percent.
The forecast compares with 3.6 percent in a survey last
month by the National Association for Business Economics, whose
members work for corporations.
The companies in the manufacturers’ survey were relatively
small. About three-quarters of those responding have no more than
250 employees. The 976 companies that responded accounted for
about one-third of the 3,000 members that were contacted.
Capital spending will rise at 53 percent of the respondents,
with 64 percent of the investments aimed at modernizing plants
and increasing efficiency, the manufacturers said. The balance
was planned to address productive capacity.
Federal Reserve Chairman Alan Greenspan told the Senate
Banking Committee last month that training and education are
critical for the economy.
“The failure of our society to enhance the skills of a
significant segment of our work force has left a disproportionate
share with lesser skills,” Greenspan told the Senate Banking
Committee Feb. 16. “The effect, of course, is to widen the wage
gap between the skilled and the lesser skilled.”
The manufacturers’ association has begun an effort in the
Kansas City area to convince younger people, through targeted
advertising and partnerships with community colleges, that
“excellent career opportunities” remain with U.S. manufacturers, Engler said. The group is planning to expand the “Dream It! Do It!” program to other areas.
Bloomberg News
