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KSM Blog | Katz, Sapper & Miller CPA

Manufacturing Factories Desperately Need Workers

Posted 8:19 PM by

CNN Money reports that U.S. manufacturing factories are creating many new jobs; however, companies are having difficulting filling these jobs with qualified workers.

Most manufacturing production planning methods are now calling for high-skilled workers. The problem comes at a terrible time. Domestic contract manufacturers (also known as "job shops") are seeing a boom in business.

For example, Rob Akers, vice president at the National Tooling and Machining Association, says there is a “critical shortage of machinists,” and that "enrollment in this field in technical schools has been down for a long time."

The lack of skilled workers such as these can have a dramatic impact on manufacturing profitability. As these skilled positions continue to go unfilled, job shops will find it more and more difficult to complete their orders in a timely fashion. In addition, the increase in overtime labor costs can make inventory cost control difficult to achieve, since the orders have to be completed.

About the Author
Justin Hayes is a director in Katz, Sapper & Miller’s Audit and Assurance Services Group. Justin works with clients to help ensure accurate financial reporting, keeping an eye on their bottom line, helping them avoid risk and maximize efficiencies. Connect with him on LinkedIn.

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