Addressing the Aging Workforce in Manufacturing: Strategies for Retaining and Attracting Skilled Workers

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As the manufacturing industry in the United States continues to grow and evolve, companies face a new challenge: an aging workforce. According to 2022 data from the Bureau of Labor Statistics, the median age of manufacturing workers in the U.S. is 44.3 years, compared to 42.3 years for all workers. Further, over 51% of manufacturing jobs are currently held by people between the ages of 45 to 65+, according to 2023 Lightcast labor market data.?

Manufacturing job openings have been steadily increasing in most states for years, and now we are in a time where there are more openings than talent demand exceeds supply. With many workers in the industry rapidly approaching retirement age and a widespread labor shortage and skills gaps in certain areas, the pangs of not having enough skilled workers are sure to be felt by many companies. That is if they don’t do anything about it.?

We’ll dive into two solutions that can help: retaining experienced workers and attracting newer generations to the industry.?

Retaining Experienced Workers

According to a survey by Deloitte, 84% of manufacturing executives believe that retaining older workers is important, but only 20% have a formal plan to do so. By developing targeted retention strategies, companies can ensure that they retain their most valuable employees and avoid the loss of critical knowledge and expertise that can occur when experienced workers retire.

The National Association of Manufacturers’ Chief Economist, Chad Moutray, has acknowledged this “demographic sea change” and notes that many industry leaders have been making efforts to adapt to it: “The simple fact is that companies are very concerned about losing their top talent to retirement and are finding creative ways to keep them longer and to train younger workers.”

Indeed, one strategy that manufacturing companies are using to address the aging workforce is to retain experienced workers. This can involve offering flexible work arrangements, such as part-time or reduced hours, to encourage older employees to stay in the workforce instead of retiring.?

Another strategy involves providing training and development opportunities to help older workers stay up-to-date with the latest technology and processes on their company’s factory floor. These workers may feel undervalued if they perceive that their skills are becoming outdated or that they are not being challenged. Proactively offering professional development opportunities to these ingrained workers can enable them to easily upskill and feel more empowered in their work.

Attracting Younger Workers

Attracting newer generations of workers to the industry is another approach to addressing the aging workforce. According to the National Association of Manufacturers, there will be an estimated 2.4 million job openings in manufacturing by 2028, but there may not be enough skilled workers to fill these positions.

To attract younger workers, companies are focusing on developing strong employer brands and highlighting the benefits of working in the industry, such as high wages and salaries, desirable benefits and opportunities for sustained career growth.?

Newer generations of workers might have misconceptions about working in manufacturing. Therefore, it’s important for employers to combat these often outdated perceptions about the industry. For example, younger workers today probably don’t know how lucrative a job in manufacturing can be and that the average annual salary for one in the U.S. is $97,270 (Lightcast, 2023) – that’s nearly 40% higher than the median U.S. income.?

Companies in California, Texas and Ohio are in a particularly advantageous position to attract and hire younger workers. According to 2023 Lightcast labor data, these states have the highest concentration of manufacturing workers between the ages of 19 and 24 – a promising indicator that there are large populations of Gen Z talent to tap into. A recruiting automation partner like FactoryFix can enable you with key labor market data so you can make more informed recruiting decisions and ensure your company has the right talent in place to keep production moving ahead.

Manufacturing companies are also partnering with educational institutions to develop training programs that provide young people with the skills they need to succeed in industry careers. Training programs can be incredibly impactful for both experienced workers and those newer to the industry. One way that older workers can help train the newer generations is through mentorship. There is a wealth of knowledge and experience that young workers can absorb from this cohort. Their decades of experience problem solving, working with specialized machinery and technologies and adapting to change at your company (and possibly other manufacturing facilities) have likely prepared them well to serve as instructors for novice workers.?

The Future of the Manufacturing Workforce

While the aging workforce in manufacturing presents a significant challenge, it also presents an opportunity for companies to develop new strategies for retaining and attracting skilled workers. By developing targeted retention and recruitment strategies, companies can ensure that they have the workforce they need to meet the demands of the future.

As the manufacturing industry continues to evolve and grow, it will be necessary for companies to stay agile and adaptable and to remain focused on developing the talent they need to succeed. With the right strategies in place, the aging workforce in manufacturing can be turned into a competitive advantage. Companies that use this as an opportunity for growth will be poised to thrive in the years to come.