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How Is the Manufacturing Industry Handling Labor Shortages?

How is the Manufacturing Industry Handling Labor Shortages Q

Between material shortages and labor constraints, industries all over the world have struggled to get their supply chain back on track and are still working to overcome these issues. Recently, manufacturers have started looking for new ways to conquer these labor shortages and move forward during these trying times and are working to determine what methods are the most beneficial to their company.

Training and Promoting Internal Talent

In response to the labor shortage, organizations have begun focusing on the training and development of current employees. Companies have started doing this to cut costs and utilize time rather than onboarding an entirely new employee, as employers have recognized the value of retaining current employees and investing in their development. In addition to focusing on training and development, some businesses have also started disbursement for tuition programs rather than reimbursement to incentivize current employees which has even been proven to be more beneficial.

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Utilizing Data Analytics

In addition to using data analytics for business operations, manufacturers are also able to utilize data analytics to analyze demographic factors across the country to determine the areas that have the talent that matches their business needs. Demographics such as graduation rates and cost of living are considering when recruiting as companies can aggressively recruit to specific areas, they deem more desirable.

Encouraging a Trial Period

Rather than hire on a full-time employee, manufacturers have started utilizing short-range job assignments and contracting specialists. Companies have implemented a six-to-eight-week trial period, allowing potential candidates to work various roles within the company to see what is the most beneficial to their experience and skillset, giving the employer the choice to onboard them and give them the opportunity to train and grow within the company.

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Looking Past the Resume

Manufacturing companies have ditched the standard resume process that is typically used to seek out the talent that best fits their company. Vocational schools and technical programs have been taking precedence over resumes as they offer advanced training in necessary skills for manufacturing. Companies are more willing to prioritize candidate’s skills and potential over experience and are more willing to train potential employees in certain skillsets.

Outsourcing 3PL Services

Another way manufacturers are combating labor shortages is by outsourcing parts of their business to a reputable 3PL. Though supply chains are getting back on track, labor is still scarce and while taking time to hire and train new employees may be beneficial in the long run, it may not be feasible with your current projects. If you notice your current employees are overwhelmed, working overtime, or doing tasks that are not within their expertise it may be time to outsource to a 3PL. Outsourcing projects to a 3PL will allow you to focus on finishing projects within their deadlines and allow you to focus on handling labor shortages and getting your employees trained.


Supply Chain Management Service

Industries all over the world are still learning ways to mitigate shortages of both materials and labor. As a reputable 3PL with over 30 years of comprehensive supply chain management, we understand just how detrimental labor shortages can be to your business. At NewStream our team is fully equipped with the knowledge and expertise to help you mitigate these labor constraints so you can love your supply chain and get it back on track!

Ready to combat your labor shortages? Let's chat, our experts are ready to help!

Tagged: Supply Chain Management, 3PL

Sep 28, 2022 10:22:15 AM

Written by Rhiannon Garber

Rhiannon Garber is currently the Marketing Assistant at NewStream Enterprises, LLC. She graduated from Missouri State University with a Bachelor of Science degree in Film and Media Studies with a minor in English. In her role, Rhiannon will be responsible for assisting and collaborating with all members of the Marketing team in all functional areas of Sales & Marketing in order to support NewStream's sales growth goals