PHILADELPHIA –A recently completed Labor market Supply and Demand Study shows that manufacturers will need to fill some 30,000 positions annually. According to the research, “Production jobs are the largest source of employment and therefore produce the most annual openings (22,000 openings per year on average, and 20,000 of them entry-level openings).
“We are facing an economic development crisis,” says DVIRC’s CEO Barry Miller, “not only for the thousands of manufacturing firms looking for people, but for the region’s economic stability over the long term, including those in the Department of Defense supply chain.” Miller highlighted manufacturing’s role in the regional economy, noting that the study area’s manufacturing sector “brought in $24.2 billion in earnings in 2020, generated $712.8 million in taxes, and contributed $52.8 billion to the gross regional product of Southeast Pennsylvania.”
The study, conducted by EMSI Burning Glass with support from the Montgomery County Workforce Development Board, was commissioned by the Delaware Valley Industrial Resource Center (DVIRC),
Other Highlights of the study, include:
- Manufacturing still suffers from an outdated perception
- There are 10,000 maintenance and repair technician job openings per year on average, and 7,700 of them entry-level openings
- 55% of the Workforce is over 45 years of age; 32% is 55 years or older; retirements are expected to accelerate
- Hispanics, Blacks, and Asians represent 35% of the population, but only 29% of the manufacturing workforce
- The region’s education and workforce systems are not producing nearly enough talent to satisfy demand
According to J.M. Hasson, President & CEO of Ameriscend and DVIRC Board member, “The manufacturing sector in Southeast Pennsylvania is made up of thousands of small and mid-sized companies, and the common issue is finding skilled talent. Most people are unaware of the career opportunities available, so the pipeline is virtually non-existent.”
Miller said the DVIRC has developed a White Paper outlining a series of recommendations and a fundraising strategy to address the range of challenges uncovered by the study. “We’re now acting on some of the study’s recommendations and are actively seeking resources to aggressively implement some short-, mid-, and longer-term solutions,” he said.
Michael Araten, President & CEO of The Rodon Group and key member of the Advanced Manufacturing Advisory Council, echoed Miller’s urgency about the effort. “We’re not going to solve these issues overnight,” he said. “And we can’t wait around for a solution to just appear. We, other members of the Advisory Council, and many of DVIRC’s clients have already made a financial commitment to act on the recommendations of the study, and I urge every manufacturer to get involved.”
Southco’s Steve Potter, Southco’s Managing Director of the America’s and Advisory Council member, has also made a financial commitment to the effort. “Competition for the scarce talent available is only going to increase in the short-term,” he said. “If we don’t come together as a manufacturing community and work on this together, we’ll be facing this crisis over and over again.”
To learn more about the study, DVIRC’s regional response, and how to get involved, visit www.dvirc.org/workforce.