|
|
Share |
|
|
|
|
|
|
When the Baby Boomers retire in a large labor mass starting in the next five years, the manufacturing industry is forecast to feel the impact. However, the gap also brings potential for innovative trends.
Many human resource departments and labor recruiters are currently scrambling, as the impending mass retirement of Baby Boomers fuels an unknown future in the manufacturing industry and across myriad workforces. This starkly forecasted exit of skilled laborers brings with it a costly though potentially innovative hereafter.
According to a Wall Street Journal article that appeared in the Wisconsin State Journal late last month, companies across a number of industries “are starting to address the impending exodus of baby boomers — the 76 million Americans born between 1946 and 1964.” Next year the eldest of this group will begin turning 60 years old.
The predicted 40 percent of skilled labor force leaving the manufacturing workforce during these next five years will purportedly cost companies between $50 million and $100 million from their bottom lines, as reported in a survey conducted by Advanced Technology Services (ATS) and Nielsen Entertainment’s Consumer Products Group earlier this year.
Among the most affected manufacturers, discrete and automotive manufacturers will be hit hardest, according to ATS’ survey of 94 manufacturing executives, followed by ball and roller bearing makers, metal valve manufacturers and engine and transmission manufacturers. Approximately two-thirds of those surveyed say the shrinking workforce will cost them $50 million on average, while 46 percent of manufacturer respondents with more than $1 billion in revenue predict their costs will be more than $100 million during the next five years.
To what does the manufacturing industry owe such high costs? According to the ATS survey, the blame rests with recruiting, training and lost productivity. At the same time as the forthcoming retirement surge, the number of workers between ages 35 and 44 is expected to dwindle by seven percent, notes New York research firm The Conference Board. To many, it seems there is no next generation of factory workers.
ATS President Jeffrey Owens notes in an APICS e-NEWS article on Oct. 4 that further blame for the soon-to-be-seen gaping hole in the manufacturing workforce can be accredited to the elimination of apprenticeship programs, to mistaken views of trade and vocational schools, to a chilling economy and to the overall public image of plant work.
As this problematic labor shortage incurs, however, many see an opportunity for dramatic, creative transformation in the workplace over the next two-and-a-half decades — starting now. Of course, several studies are now showing that many Baby Boomers expect to stay at their job for longer than traditionally expected (fully 70 percent to 80 percent), or retiring and then working on a temporary basis. “Working in retirement, once considered an oxymoron, is the new reality,” according to a report by The Conference Board.
But unique, innovative solutions could also abound.
According to John A. Challenger, CEO of international outplacement firm Challenger, Gray & Christmas, in an article from MRO Today, the human capital crisis “could also present some intriguing opportunities for enterprising individuals and companies.” He further notes, “The response to these challenges and opportunities will drive the workplace trends, many of which are already beginning to take shape.”
Recent cases of companies’ progressive ways toward gap avoidance, as noted within the aforementioned WSJ article, include implementation of a “retiree reservists pool” (Southern Co., an electric utility) and a developed partnership with AARP to recruit older workers (Home Depot), as well as an online directory called the “Blue Pages,” wherein younger employees can find detailed descriptions of about-to-retire employees’ experiences, thereby gleaning shared expertise (IBM).
Challenger predicts myriad eccentric trends, a selection of which is as follows: recruitment being replaced by online auctions; significant gains in/for workplace women; a Dot-com comeback; and a civil war between the public and private sectors for workers. (Read the MRO Today article for Challenger’s further predictions regarding the next innovative top trends across industries.)
As the aging full-time population makes its long-sought exit, many industries are expected to feel the pressure. Experts’ proffered advice is to take advantage of advancing technology, a “just-in-time” workforce and creative processes. Owens further notes, “Ultimately, we need to reposition skilled trades as a more fulfilling, profitable and professional career path.” And get the word out: manufacturing jobs are not dead ends.
References:
Companies prepare for baby boomer exodus
Kelly Greene
The Wall Street Journal, September 25, 2005
http://www.madison.com/wsj/home/biz/index.php?ntid=55409&ntpid=1
Manufacturers Face Skilled Labor Crisis
Katrina C. Arabe
Thomas Industrial Network, June 21, 2005
http://news.thomasnet.com/IMT/archives/2005/06/manufacturers_f.html
America’s Aging Workforce Posing New Opportunities and Challenges for Companies
The Conference Board, Report: Managing the Mature Workforce-Report #1369
September 19, 2005
http://www.conference-board.org/utilities/pressDetail.cfm?press_ID=2709
Labor shortages could bring unique employment solutions
MRO Today, Web-exclusive Special Report
http://www.mrotoday.com/mro/archives/exclusives/LaborShortages.htm











Browse IMT by Date
Browse IMT by Date



Baby Boomer retirements is a good indication on why corporations should think twice before looking at only younger candidates when filling positions. We have many boomers seeking transition who are well qualified and capable of taking reign to replace retirees. Newly educated candidates are one thing, but the hands-on,
experienced people are still needed to groom
the younger generation, so corporations have qualified replacements.
My personal experience of the exodus of the baby boomers between the birthdates of 1945 and 1951 is derived from friends in the automotive and manufacturing industries. These retirees have literally been “driven out” by pressures executed upon them by myopic managers who are focused on the bottom line. There is minimal thought about the loss of the knowledge of these people. These boomers can’t stand working where they are because of the incompetent managers promoted over them. These managers are leading by the strength of their position and not by the charisma of leadership. People on this final ride through the cesspool of their company shut down from full functionality months, even years, before they are offered an “out” on some kind of offer. American industry is its own worst enemy.
Respectfully submitted.
Jack Edwartoski, PE