Addressing the Skilled Labour Challenge: Aerospace Suppliers Brace for a Competitive Hiring Landscape

Introduction:

The aerospace industry is experiencing a surge in demand, prompting aerospace suppliers to embark on a hiring spree in 2023. However, this endeavour comes with its own set of challenges, chief among them being the scarcity of skilled labour. Notably, even the industry's top customers, Boeing and Airbus, are vying for the same talent pool. The outcome of this labour competition will play a pivotal role in determining whether these manufacturers can meet their near-term production goals. Industry experts and executives expressed their concerns about replacing workers who left due to layoffs or attrition during the COVID-19 pandemic. This article sheds light on the current state of the labour market, the impact of labour shortages on the aerospace supply chain, and the measures being taken by companies to address these challenges.

The Lingering Impact of the Pandemic:

During the Pacific Northwest Aerospace Alliance conference, industry leaders voiced their apprehension about the difficulties faced in hiring during 2021 and 2022. Chris Celtruda, CEO of Valence Surface Technologies, acknowledged that staffing has improved but highlighted the need for small companies in Washington state, which constitute Boeing's supply chain, to compete with the aerospace giant itself. Boeing's plan to hire 10,000 workers in 2023, along with their expansion plans, indicates the significance of suppliers' ability to find trained labour.

Challenges in the Aerospace Supply Chain:

The pandemic-induced disruptions have significantly affected the aerospace supply chain, leading to shortages in critical components such as castings, forgings, and extrusions. Kevin Michaels, Managing Director of consultancy AeroDynamic Advisory, pointed out that labor scarcity lies at the root of these parts shortages. Additionally, these bottlenecks have contributed to reduced inventory levels, further exacerbating the challenges faced by the industry.

A Delicate Balancing Act:

While aerospace suppliers are eager to replenish their workforce, they must strike a delicate balance. For instance, Orion, a subassembly manufacturer, experienced significant layoffs in 2020 but saw a 17% growth in their workforce in 2022. They plan to expand by an additional 33% in 2023, creating 30 new jobs. However, the risk of hiring too soon looms large, as persistent supply-chain issues could result in idle workers. This highlights the complexity suppliers face in aligning their hiring strategies with market conditions.

Manufacturers' Concerns and Recruitment Strategies:

Airbus, one of the industry's major players, has expressed concerns about potential employee poaching from its suppliers. To safeguard the strength of its supply chain, Airbus HR Chief Thierry Baril emphasized the need for careful monitoring of recruitment efforts. Airbus aims to hire 13,000 workers in 2023, with over 9,000 positions located in Europe. Similarly, Boeing CEO Dave Calhoun has emphasized that the production rate depends on suppliers' ability to secure trained labor.

The Industry's Response:

Despite these challenges, the aerospace industry is proactively addressing labor concerns. Companies are striving to retain their existing workforce and minimize turnover. However, a study conducted by the Aerospace Industries Association indicates that overall turnover in the industry increased from 5.8% to 7.1% in 2022, driven by workers seeking higher-paid jobs due to inflationary pressures. Industry leaders are keenly aware of the need to enhance compensation packages and provide attractive career opportunities to retain and attract skilled talent.

Conclusion:

As aerospace suppliers gear up for a hiring spree in 2023, the scarcity of skilled labor poses a significant challenge. The ability to secure a qualified workforce will determine the industry's success in meeting near-term production goals. With Boeing and Airbus actively competing for the same talent pool, suppliers face stiff competition. It is crucial for companies to implement robust recruitment strategies, offer competitive compensation, and create an appealing work environment to attract and retain skilled labor. By addressing the labor shortage effectively, the aerospace industry can ensure a robust supply chain and sustain its growth trajectory in the years to come.