Prospects for Advanced Technical Careers in the USA

U.S. Manufacturers Report
Shortages Are Widespread;
Critics Cite Training Cuts
By TIMOTHY AEPPEL
Staff Reporter of THE WALL STREET JOURNAL
November 22, 2005; Page A2

Difficulty in finding enough skilled workers is hampering the ability of many U.S. manufacturers to serve their customers.

Eighty-one percent say they face "moderate" or "severe" shortages of qualified workers, according to a survey by the National Association of Manufacturers and Deloitte Consulting LLP. More than half of manufacturers surveyed said 10% or more of their positions are empty for lack of the right candidates.

The shortfall is especially acute in skilled trades, for positions such as welders and specialized machinists. Gaps on the factory floor can make it harder for manufacturers to move quickly to exploit new market opportunities and could hasten the exodus of jobs as more employers hunt for skilled workers outside the U.S.

The survey was last conducted in 2001, using somewhat different questions. The earlier study found about the same percentage of companies surveyed reported difficulty finding qualified workers. But Jerry Jasinowski, president of the Manufacturing Institute, NAM's research arm, says advancing technology used by manufacturers to remain competitive in global markets is raising the level of skills demanded, both among those newly hired as well as within a company's existing work force.

The recent survey found 50% of those surveyed said they were spending more on training than they did three years ago, slightly less than the 51.8% who answered that way in 2001.

Some critics say manufacturers have brought the problem upon themselves by cutting back on training programs and shifting work away from unionized locations. Unions have traditionally played a key role training industrial workers.

Michael Handel, an associate professor of sociology at Northeastern University in Boston who has studied the availability of skilled workers, says companies often blur the distinction between hard skills, such as welding, and broader work habits. "Employers complain about a lack of skills, but when you scratch deeper, it's really an attitudinal issue," he says. "It's about how fast people will work or for how low a price."

The recent survey, based on responses from 815 U.S. companies of varying sizes, found that companies see the biggest shortfall in skilled production workers. Eighty percent of respondents expect those workers to be in short supply over the next three years, while 35% expect a shortage of scientists and engineers. More surprising, 25% said they expect a shortage of unskilled workers over the next three years.

Three-quarters said they spend the equivalent of less than 3% of their payroll on training; 22% spend less than 1%. Among the study's recommendations is that companies spend at least 3% of payroll on training.

Ronald Bullock, president of Bison Gear & Engineering Corp. in St. Charles, Ill., currently has 10 openings at his company, which employs 200, including one for an electrical engineer he has been trying to fill for more than a year. Not having enough workers hurts profits, says Mr. Bullock, because it means paying more overtime to his existing employees to get projects done or farming the extra work out to others. "This has slowed the pace on some of our crucial projects," he says.