INDIANAPOLIS, Oct. 16, 2019 /PRNewswire/ -- Released today, the
2019 Indiana Manufacturing Survey titled "Labor Shortages Hit Home"
finds companies across the state are reporting a serious shortage
of skilled and unskilled laborers as they move rapidly towards
smart manufacturing, known as "Industry 4.0."
Commissioned by Katz, Sapper & Miller, authored by faculty
from Indiana University's Kelley School
of Business at IUPUI, and promoted by the Indiana Manufacturers
Association, the annual survey shows that a record number of
respondents expect their product markets to grow rapidly in the
near future, but many are finding it difficult to attract younger
generations of skilled and unskilled workers who are able to
replace the wave of retiring baby boomers.
Companies indicate they are substituting capital investments in
technology for labor to partially satisfy the demand for skilled
workers and to remain competitive. Even with this investment, 48%
of employers say the number of jobs continues to increase at their
organizations, and nearly two-thirds expect the number of skilled
jobs to increase as a result of implementing new technologies and
automation. Respondents say current shortage areas include skilled
production (machinists, craft workers, operators, etc.), unskilled
production and supporting roles (engineers and planners).
"The general sentiment for a solution may surprise some.
Manufacturers overwhelmingly feel that employers should be
responsible for their own workforce development," said Mark Frohlich, associate professor of operations
management at the Kelley School of Business at IUPUI. "They
recognize that an adequate STEM education and employable life
skills are necessary for the manufacturing jobs available and
suggest enlisting public secondary schools to help address the
shortage."
The findings in this survey reflect national trends that the
manufacturing industry is seeing across the country. For example,
the September 2019 national Institute
for Supply Management report indicates the manufacturing index has
dropped to 47.8, meaning activity has slowed to its lowest in 10
years. Economists point to several factors causing slowdown and
uncertainty about the industry's future, including the
U.S.-China trade war, healthcare
regulations and a potential recession. However, Indiana manufacturers have an optimistic
outlook on future growth of their industry.
"Over the past decade, survey responses reflect that
manufacturing growth has been impeded by regulations, an increasing
skills gap, and now uncertainties with trade tariffs and economic
stability," said Jason Patch,
partner-in-charge of KSM's Manufacturing and Distribution Services
Group. "But, on a positive note, the vast majority of respondents
in this year's survey agree that corporate tax reform has helped
increase capital investment and wages. That's a bright spot not
many would have predicted."
Overall, the survey suggests that the Hoosier manufacturing
sector continues to see strong demand for their products. The
obstacle of hiring skilled workers means there is a dependency, now
more than ever, to improve operational efficiencies.
"The findings from this survey help take the temperature of
Indiana's manufacturing industry
and provide insights into future trends," said Brian Burton, president of the Indiana
Manufacturers Association. "This year's survey shows that
manufacturers expect future growth rates in sales revenues, profit
margins and capital investment and are focused on solving the issue
of a skilled worker shortage."
The 2019 Indiana Manufacturing Survey includes other valuable
manufacturing industry data for service providers, economic
officials and potential investors. A full copy of the report can be
found here.
About Katz, Sapper & Miller
As one of the top 60
CPA firms in the nation, KSM has earned a reputation as a leader in
the areas of accounting, tax, and consulting services. The firm has
nearly 350 employees and is headquartered in Indianapolis, Indiana, with additional offices
in Fort Wayne, Indiana;
Oklahoma City; and New York City. KSM is consistently named one
of the "Best of the Best" accounting firms in the nation by
INSIDE Public Accounting magazine. The firm is a member of
PrimeGlobal, a global association of independent accounting firms.
Learn more at ksmcpa.com.
About the Kelley School of Business on the IUPUI
Campus
The Indiana University
Kelley School of Business has been a leader in American business
education since 1920. With nearly 115,000 living alumni and an
enrollment exceeding 11,000 students across two campuses and
online, the Kelley School is among the premier business schools in
the country. The Kelley School at IUPUI is home to a full-time
undergraduate program and five graduate programs, including a
graduate certificate for healthcare professionals, master's
programs in accounting and taxation, the Business of Medicine
Physician MBA and the Evening MBA, which is ranked ninth in the
country by U.S. News & World Report. Learn more at
kelley.iupui.edu.
About the Indiana Manufacturers Association
Formed in
1901, the Indiana Manufacturers Association is the second oldest
manufacturers association in the country and the only trade
association in Indiana that
exclusively focuses on manufacturing. Manufacturing is the driving
force of Indiana's economy,
employing more people and contributing more to Indiana's gross domestic product than any
other industry. The Indiana Manufacturers Association, representing
more than 1,100 companies, is dedicated to advocating for a
business climate that creates, protects, and promotes quality
manufacturing jobs in Indiana. The
staff of the Indiana Manufacturers Association are recognized
experts in areas including tax, environment, labor relations, human
resources, energy, workforce development and healthcare. Learn more
at imaweb.com.
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SOURCE Katz, Sapper & Miller