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US factories are booming, but finding workers is still a struggle

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Summary

The US is experiencing a boom in manufacturing, with construction spending on US manufacturing at its highest levels of the 2000s and the CHIPS Act and Inflation Reduction Act providing tax incentives and funding to promote manufacturing construction. Despite this, employment in the sector has been stagnant over the last year, suggesting there may not be enough qualified people to take these jobs. The manufacturing skills gap is expected to lead to 2.1 million unfilled jobs by 2030, costing a total of over $1 trillion in 2030 alone. Organizations are setting up training and educational programs to help fill the skill gap, but even finding students interested in pursuing this work has been challenging. While larger manufacturers are continuing to expand, smaller manufacturers unable to scale quickly could still struggle.

Q&As

What government legislation has been implemented to support the manufacturing boom in the US?
The CHIPS Act, the Inflation Reduction Act, and the Infrastructure Investment and Jobs Act have provided tax incentives and funding to promote manufacturing construction.

What is the current employment rate in the manufacturing sector compared to early 1990s levels?
Manufacturing now makes up just over 8% of the workforce, about half of early 1990s levels and the lowest share ever.

What is the predicted cost of the manufacturing skills gap in 2030?
The manufacturing skills gap could lead to 2.1 million unfilled jobs, costing a total of over $1 trillion in 2030 alone.

What initiatives have been put in place to help close the manufacturing labor shortage?
Organizations including The American Society of Mechanical Engineers and the STEM For All Foundation have helped establish more equitable access to STEM programs for younger students.

How could smaller manufacturers be affected by the current factory boom?
Smaller manufacturers unable to scale quickly could still struggle even as larger manufacturers continue expanding, driving up wages and prices in a volatile market.

AI Comments

👍 The US government has provided billions of dollars in subsidies to promote manufacturing construction and help build up the US economy. The CHIPS Act and Inflation Reduction Act have provided tax incentives and funding to support manufacturing in the US.

👎 Despite the surge in manufacturing construction, employment in the sector has remained stagnant over the last year, making it difficult to fill the new factories with workers. The US also lacks the education system to close the manufacturing labor shortage, resulting in a potential skills gap of 2.1 million unfilled jobs by 2030.

AI Discussion

Me: It's about how the US is experiencing a factory boom driven by computer, electronic, and electrical manufacturing. But there's a worry that there may not be enough qualified people to take these jobs.

Friend: That's concerning. What are the implications of this?

Me: Well, the US government has provided billions of dollars in subsidies for electric vehicle and solar panel production in an attempt to compete with other countries, but there's a skills gap that needs to be filled. That could lead to 2.1 million unfilled jobs by 2030, costing over $1 trillion. Also, smaller manufacturers may struggle to scale quickly, driving up wages and prices in the volatile market.

Action items

Research local manufacturing job opportunities and apply for any positions that match your skillset.
Reach out to local manufacturers to inquire about potential job openings or internships.
Investigate STEM education programs in your area to gain the skills necessary to work in a manufacturing job.

Technical terms

Manufacturing: The process of producing goods or services by using machines, tools, and labor.
CHIPS Act: The CHIPS Act (Creating Helpful Incentives to Produce Semiconductors) is a US law that provides $280 billion in funding to boost the manufacturing of semiconductors.
Inflation Reduction Act: The Inflation Reduction Act is a US law that provides tax incentives and funding to promote manufacturing construction.
STEM: STEM stands for Science, Technology, Engineering, and Mathematics. It is an educational program that focuses on teaching students in these areas.
RSM US: RSM US is an audit, tax, and consulting firm.