Skills Gap: Why It’s Creating New Manufacturing Opportunities

American Manufacturing at a Crossroads

The American manufacturing sector is booming — but not without its challenges. While demand for Made in America products surges, a critical issue threatens the long-term growth of U.S. industry: the skills gap. Simply put, the skills gap represents the difference between the abilities employers need and the capabilities job seekers possess. For the American manufacturing industry, this gap is becoming a significant obstacle.

At the same time, this challenge presents a massive opportunity for Gen Z, trade schools, unions, veterans, and policymakers. By addressing the skills gap head-on, America can secure its position as a global manufacturing leader while offering meaningful, high-paying careers to a new generation.

Understanding the Skills Gap in American Manufacturing

The skills gap is not a new problem. For over a decade, manufacturers have struggled to find qualified workers for critical roles such as:

• Machinists
• Operators
• CNC Technicians
• Craft Workers
• Welders
• Distributors
• Automation Specialists

A study by The Manufacturing Institute and Deloitte LLP revealed that while national unemployment once stood at 7.8%, hundreds of thousands of skilled manufacturing jobs remained unfilled — a pattern that continues today.

Despite high demand, these jobs are often hard to fill because they require specialized training, certifications, and hands-on experience — assets many job seekers don’t yet have.

Current Impact: How Severe Is the Skills Gap?

According to a report by Boston Consulting Group (BCG), the shortage currently affects less than 1% of total manufacturing jobs, but as much as 8% of highly skilled positions. While those numbers may seem small, their real-world impact on production lines, supply chains, and business growth is significant.

Surveys by Deloitte show that:

• 67% of manufacturers report difficulty filling skilled production positions.
• Over 50% expect this shortage to worsen in the next 3-5 years.

This shortage doesn’t just slow production — it threatens America’s ability to maintain its Made in USA competitive edge against global competitors.

Why Does the Skills Gap Exist?

1. Aging Workforce

A large portion of the manufacturing workforce is nearing retirement. In some sectors, such as oil, gas, and heavy equipment manufacturing, millions of workers are approaching retirement age — opening up 2.5 million job opportunities in the next few years.

2. Lack of Vocational Training

Over the past few decades, American high schools have shifted away from vocational training and technical education. College-for-all narratives have discouraged students from exploring trades, even though many students would thrive in these hands-on careers.

“The number of high school kids taking vocational courses has diminished over the last few years, possibly because many schools are stressing the importance of college, whether students are equipped to go or not,” says Dexter Muller of the Greater Memphis Chamber.

3. Changing Skill Requirements

Modern manufacturing isn’t just about assembly lines anymore. Today’s manufacturers need workers skilled in:

• Robotics
• Automation
• Programming
• Advanced machinery
• Data analytics

The rapid pace of technological change leaves many workers under-qualified without access to updated training programs.

Solutions: How We Can Close the Skills Gap

1. Aggressive Recruiting & Training

Boston Consulting Group recommends that companies become far more aggressive in recruiting and training:

“With more investment in recruiting and in-house training, the availability of manufacturing talent could actually become a major competitive advantage for the U.S.,” says Justin Rose, BCG Principal.

Manufacturers that actively invest in workforce development will be better positioned to meet growing demand.

2. Tapping Into New Talent Pools

One of the most promising solutions is to recruit military veterans transitioning into civilian careers. Veterans bring discipline, leadership, and technical expertise, making them highly desirable candidates for manufacturing roles.

In 2013, companies like General Electric, Alcoa, Boeing, and Lockheed Martin launched the “Get Skills to Work Coalition,” aiming to train veterans in high-demand manufacturing skills.

Key Components of the Program:

• Certification programs at community and technical colleges
• Employer reference guides for veteran recruitment
• A goal to employ 100,000 veterans and spouses within two years

GE alone provided $6 million in seed funding, launching the first training programs at Cincinnati State Technical and Community College.

3. Revitalizing Trade Schools & Apprenticeships

Trade schools and apprenticeship programs offer Gen Z an alternative to expensive four-year degrees. These programs provide:

• Fast-track education (12-24 months)
• Affordable tuition
• Guaranteed job placement in many cases
• Hands-on, real-world experience

Organizations like SkillsUSA and the National Tooling and Machining Association (NTMA) are actively working to promote skilled trades to young people.

4. Public-Private Partnerships

To fully address the skills gap, collaboration between industry, education, and government is essential. State and federal policies should support:

• Increased funding for vocational programs
• Incentives for companies offering apprenticeships
• Campaigns that promote the value of skilled trades

The Gen Z Opportunity: Manufacturing Is Cool Again

For Gen Z, manufacturing presents a real, rewarding, and financially stable career path:

• Median salary for skilled trade positions: $50,000 – $75,000/year
• Opportunities for advancement and specialization
• Jobs that create tangible, meaningful products
• Pride in contributing to American Made and Made in USA goods

As reshoring, insourcing, and Buy American policies grow stronger, Gen Z has the chance to be at the forefront of a new American manufacturing renaissance.

The Rise of Reshoring and The Made in USA Movement

The reshoring trend is gaining momentum as companies look to bring manufacturing back to U.S. soil to strengthen supply chains, reduce costs, and support local economies. Key drivers include:

• Supply chain disruptions
• Rising overseas labor costs
• National security concerns
• Consumer demand for American Certified products

Organizations like The Made in America Movement (MAM) are at the heart of this shift, advocating for American manufacturing, promoting USA Certified businesses, and educating consumers on the importance of buying local.

By narrowing the skills gap, we can ensure that reshoring efforts succeed — and that America maintains its industrial strength for generations to come.

The Stakes: Will We Catch Up In Time?

The truth is simple: We can’t afford to fail.

If the skills gap isn’t addressed, millions of manufacturing jobs will remain vacant. Supply chains will continue to strain. U.S. companies may be forced to outsource work overseas — weakening both our economy and national security.

But with coordinated effort — involving trade schools, unions, companies, government, and young people — America can close the skills gap and reestablish itself as the world’s manufacturing leader.

A Call to Action

The American manufacturing industry is at a historic tipping point. The skills gap is real, but it’s not insurmountable. In fact, it’s one of the greatest opportunities of this generation.

By investing in trade schools, embracing new talent pools like military veterans, supporting Made in USA certification programs, and promoting manufacturing careers to Gen Z, we can ensure that America remains the global leader in high-quality, locally made products.

Now is the time to rebuild, retrain, and reclaim American manufacturing.