MARCH 2006

NAM Releases Skills Gap Report

The National Association of Manufacturers (NAM) recently released a report on the skills gap in the US manufacturing sector. Among the conclusions:

• Today's skill shortages are extremely broad and deep, cutting across industry sectors and impacting more than 80% of companies surveyed, with 13% reporting severe shortages and 68% indicating moderate shortages.
• Skills shortages are having a widespread impact on manufacturers' abilities to achieve production levels, increase productivity, and meet customer demands.
• The vast majority of American manufacturers are experiencing a serious shortage of qualified employees, which in turn is causing significant impact to business and the ability of the country as a whole to compete in a global economy.
• 90% of respondents indicated a moderate to severe shortage of qualified skilled production employees.
• 65% of all respondents and 74% of respondents with more than 500 employees reported a moderate to severe shortage of scientists and engineers.
• 39% of respondents indicated a moderate to severe shortage of qualified unskilled production employees. Overall, the confluence of the above trends and the increasingly competitive global environment has created an extraordinary gap between the supply of skills available and the performance requirements of the workforce needed for modern global manufacturing.

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