New Technological Implementation Leads Massive Talent Scarcity in the U.S. Automotive Industry

The manufacturing industry in the U.S. has experienced incredible net growth over the past couple of decades. But currently, manufacturers are facing a vicious workforce talent shortage that threatens to hinder continued growth. Indeed, a research report from Deloitte and The Manufacturing Institute reveal that over the next 10 years, manufacturers will likely need to add 4.6 million manufacturing jobs, of which 2.4 million may go unfilled. But it's happening today, as over 500,000 manufacturing jobs remain vacant in the United States.

Like the manufacturing sector, the U.S. automotive industry is also facing a massive talent shortage, largely due to technology. A recent joint survey by MSI and Global Auto Industry found that the increasing adoption of Industry 4.0 led the demand for skills related to a traditional assembly line in the automobile industry that has fallen, and has been rapidly creating a vast demand for more tech-savvy workers.

In most manufacturing sectors tech-savvy workforce has always been in short supply, however, the US automotive industry has also been hit very hard with this critical situation in skilled manpower. According to the President of MSI, Eric Egnet, this shortage has been increased due to the frequent changes in technologies like artificial intelligence, autonomous robots, and blockchain, which are giving auto manufacturers massive opportunities in optimizing a product lifecycle.

With 100 percent of automotive companies surveyed, the joint study reported that companies agreed mobilization of talent has become a necessity. Most of these companies also stated that they are maintaining a prospective employee talent pool to easily meet the requirements of the future. To maintain such a talent pool, automakers must make an effort to nurture a relationship with external candidates.

Moreover, companies will also have to work for existing employees by building a training program that can meet the germane skills, so the company can ready to deal with tech changes at a quick pace.

As per the survey, approximately all respondents considered mobilizing talent as highly critical or somewhat critical to their company’s future. The survey further showed that the ability to transition skills across business functions worldwide also important for respondents. And for more than half, the highest priority elements of their mobility programs are business goals. Additionally, for around one-third respondents, the cost was the highest priority.

Though, questions related to mobility policies obtained mixed responses, as almost half of the companies felt that existing mobility policies inadequate to lure and hold onto skilled talent, and that manufacturers could be performing more in this field.