We’ve all seen the “Now Hiring” signs in the windows of local establishments. The COVID-19 pandemic triggered an unprecedented labor shortage for businesses across various industries. Currently, there are 10 million jobs available in the United States, but only 6 million unemployed people.
People have several reasons for not re-entering the workforce:
- early retirement
- lack of affordable and quality childcare
- starting their own small business
Some have used the pandemic as an opportunity to develop and gain new skills in preparation to pivot into new roles or industries.
Labor Shortage by Industry
The labor shortage has impacted some industries more heavily than others. Manufacturing experienced a loss of 1.4 million jobs at the beginning of the pandemic. Issues remain.
The manufacturing industry has experienced a decline in job availability since its peak in the 1970s. However, looking at data from 2010-2021, the number of manufacturing jobs has increased in the US. Now, there are more jobs than people available to work them. If every unemployed person with durable goods manufacturing experience were to start an available job, only 65% of those jobs would be filled. The most significant impediment to manufacturing industry growth is the labor shortage.
Despite labor shortages, the demand for durable goods remains. In fact, durable goods manufacturers now work to meet increased demand. It’s time to change the way we think about manufacturing.
Automation in Manufacturing
Global initiatives, operational flexibility, and especially the labor shortage continuously compel the manufacturing industry to increase automation. Consumers demand more goods and hold higher expectations for a speedy turnaround on delivery.
Supply chain issues have slowed manufacturing in a variety of industries and customers have felt the strain of receiving packages late or waiting months for an item to be in stock. Producing goods has become more expensive with the rising cost of raw materials and the need for higher wages to attract more workers. This increased cost gets passed down to the customer.
Automation can help manufacturing plants and warehouses overcome labor shortages and meet today’s consumer expectations. Automating manual, repetitive, and time-consuming processes increases production volume in less time, with fewer mistakes made due to human error. More automation equals more safety and stability for employers and workers. Automated systems can take over jobs that are dangerous for people. They can work long hours without fatigue.
So why is everything not automated? First of all, the up-front costs appear insurmountable. Taking the time to implement new processes can slow business. And, many people fear that automation will lead to a loss of jobs in their community.
Benefits of Automation
Increasing automation will create more jobs than it will displace, and the jobs created will have the characteristics that people of today’s workforce search for: upward mobility, personal fulfillment, and physical safety. Shifting toward more automated processes attracts a new kind of employee—one who has taken the time to develop and learn new skills.
Automated systems can significantly boost the productivity of teams with limited bandwidth. Many managers report that loyal and skilled employees have had to take on the work of repetitive but necessary tasks left behind by the labor shortage. Investing in new automated technologies allows employees to rise to the best of their capabilities, rather than being stuck on menial tasks best handled by automation.
Keeping up with technology trends gives employers a competitive edge to attract job seekers. Employers offering training on cutting-edge technology are more likely to attract desirable employees to their company. As people make decisions about their careers, they are more likely to choose the company that has the most opportunities to learn a new skill and grow their earnings over time.
As labor shortages and increased demand for goods are predicted to continue, the drive for increased automation remains on the forefront. REA JET offers easy to integrate, innovative coding and marking technology. With solutions engineered to increase productivity, efficiency, and profitability while eliminating downtime, our state-of-the-art technology is designed for businesses of all sizes, in all industries, and multiple applications. REA JET technology is durable and can withstand any environment. Investing in a modern solution for all of your coding and marking needs with REA JET will help prepare your company for the unexpected challenges of the future.