Manufacturing Update Q1 2021

Apprenticeships help fill workforce pipeline, on the cusp of Industry 4.0

Drivers

  • There was increased interest in apprenticeships as one answer to the manufacturing labor gap. Illinois apprenticeship programs became more customizable and could be built to fit the needs of a manufacturer, plus they could be used to attract new employees AND retain existing employees by investing in these programs. Illinois Manufacturing Excellence Center (IMEC) referred 15 local manufacturers that expressed interest in these programs to the local navigator for apprenticeships.
  • The general advancement of technology, 5G transmission upgrades and big data gathering opportunities began to push manufacturers into the next industrial revolution, aka Industry 4.0. Robotics already were being used by many companies for repetitive, dangerous and dull applications. While this may have replaced some of the line staff it also may have allowed them to take on more challenging and beneficial jobs to help their companies grow; highly skilled operators were required to service the equipment.
  • There was an increased interest in ERP systems that do a better job of identifying costs and opportunities for improvement through the system.

Drawbacks

  • An organizational needs assessment conducted by IMEC with 1,655 responses from C-level manufacturers in Illinois showed that the top 5 areas listed as "urgent to address" within operations of 500 employees or less are growth, productivity, safety, leadership and workforce.
  • Federal incentives that remained in place for the unemployed (now $300 vs. $600) were still impacting manufacturing vacancies. Candidates were valuing family and free time over 2nd and 3rd shifts and those remained difficult to fill even with increased compensation. Wages rose due to minimum wage increases and the limited supply of qualified talent. 
  • Finding and keeping qualified welders, CNC operators, machinists and engineers was a challenge and will continue to be as the workforce ages and retires. Both finding talent and keeping skilled workforce can be countered by investing in efforts to keep and grow the employees they have now. Retention can be less expensive than retraining new staff and turnover. Employers who demonstrated the commitment to help their employees improve their skill sets and help them develop as leaders tended to have higher retention.
  • Supply chain continued to be an issue resulting in higher prices and longer lead times. Re-shoring remained a good and lofty goal.
Chris Caves
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Chris Caves
Vice President, Business & Economic Growth
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