Despite the surge in job openings in manufacturing and construction, a shortage of trained workers persists.

Despite the surge in job openings in manufacturing and construction, a shortage of trained workers persists.
Despite the surge in job openings in manufacturing and construction, a shortage of trained workers persists.
  • Federal money is fueling the search for workers in U.S. manufacturing and construction industries.
  • The challenge of filling jobs arises due to the need for specialized training and the departure of baby boomers from the workforce, as well as the decision of younger people to enter the trades.
  • By 2030, the manufacturing industry could face a shortage of over 2 million workers if individuals do not choose manufacturing careers.
Construction workers erect a building in downtown Miami, Florida, on June 14, 2023. Construction workers say they are losing their jobs because employers fear Florida's new immigration law. The new immigration law, signed by Florida Governor and 2024 Presidential hopeful Ron DeSantis, goes into effect July 1, 2023. It requires private employers with 25 or more employees to confirm workers' immigration status through a system known as "E-verify". (Photo by Jim WATSON / AFP) (Photo by JIM WATSON/AFP via Getty
Construction workers erect a building in downtown Miami, Florida, on June 14, 2023. (Jim Watson | AFP | Getty Images)

In the Bay Area, Ample's manufacturing facilities have employees working alongside robots on the floor, producing battery packs and other components for their EV battery-swapping technology.

The company aims to increase its 100-person manufacturing team by doubling its size by the end of the year, with clean, high-tech, and skilled positions being key recruitment points.

Finding people who have the training to do those jobs may prove challenging.

Ample is collaborating with brands such as Daimler to replace depleted EV batteries with fully charged ones, enabling electric cars to be back on the road promptly. The company anticipates that this partnership will benefit from the U.S.'s efforts to achieve its renewable energy objectives.

The company is currently grappling with a longstanding issue that has affected numerous manufacturers: a shortage of skilled workers. Ample is specifically in need of experienced professionals to operate high-voltage machinery and manage intricate robotics. Additionally, the company is also hiring for less skilled positions.

As machines become more advanced, manufacturing is becoming more automated, according to Ample CEO Khaled Hassounah. This means that the people managing the process and those doing the manufacturing will need to become more sophisticated, resulting in more complex jobs.

The company is launching apprenticeship partnerships with three colleges as a result of the Inflation Reduction Act.

The company is confident it can achieve its growth targets due to the training programs it offers. He stated that some of the positions Ample is currently recruiting for do not necessitate a college degree.

Hassounah stated that community colleges can provide the necessary support to achieve success in a job without the need for a four-year college degree. While there are classes that can enhance one's skills, it is not necessary to attend college for two years to get started.

Help wanted in modern manufacturing

Despite the global slowdown in manufacturing jobs, Ample is experiencing growth in hiring. The sector only added 12,000 net jobs in 2023 due to factors such as automotive worker strikes.

Despite adding 23,000 jobs in manufacturing in January, the industry faced a three-month high of 601,000 open positions in December, according to Bureau of Labor Statistics data. This year, the sector is projected to face challenges due to an uncertain economic outlook and difficulties in adequately staffing in a tighter job market, as stated in an industry outlook from consulting firm Deloitte.

The Manufacturing Institute predicts that by 2030, the industry will need to fill 4 million jobs, but more than 2 million could go unfilled if workers do not pursue modern manufacturing careers.

The common misconception about manufacturing is that it's outdated and involves doing one job; however, modern manufacturing is highly technological, as stated by Carolyn Lee, president of the Manufacturing Institute.

The industry is expanding its outreach to recruit individuals from diverse backgrounds, including children in middle schools, to explore its opportunities.

Construction industry also faces shortage

The growth of manufacturing jobs will continue beyond the funding provided by the CHIPS Act, the Inflation Reduction Act, and the bipartisan infrastructure deal.

The construction industry has experienced growth, with an average of 16,000 jobs added per month in 2023. Additionally, manufacturing-related construction jobs have increased in the past year. Experts predict further growth in the future.

Ben Brubeck, vice president of regulatory, labor and state affairs at Associated Builders and Contractors, stated that the federal funds allocated to construction and manufacturing projects over the next four to five years amount to hundreds of billions of dollars. This, he said, would significantly affect the skilled labor shortage currently faced.

To meet the demand for labor in 2024, the construction industry will need to hire an estimated 501,000 more workers than the normal pace of hiring, according to a model developed by the trade group.

Construction industry searches for workers as job openings stand at 439K

Small business owners are experiencing a more significant impact of the trades hiring crunch, as reported by the National Federation of Independent Business in December, with quality of labor being one of their top three concerns, following only inflation.

A survey of small business owners revealed that 33% of them have job openings for skilled labor, with the construction and transportation sectors facing the most significant hiring challenges.

High schools are also taking steps to address hiring issues by training younger workers for manufacturing and construction jobs.

The traditional woodshop elective course at South San Francisco High School has been changed into a two-year trades course for the construction industry.

Jason Brockmeyer, director of innovation, community outreach and special projects at South San Francisco High School District, stated, "Our main focus is to ensure that students are not only prepared for college but also for their careers. We aim to provide them with the necessary skills to be competitive in the work environment."

by Kate Rogers

markets