Research & Best Practices

4 Ways the Manufacturing Skills Gap Can Impact your Business


The threat of a skills gap in American manufacturing is no new concept. The manufacturing “skills gap” has caused a host of macro-level economic concerns. However, the effects of a technical talent shortage can also significantly impact your organization on a micro-level.

We’ve broken down four ways a manufacturing skills gap at your facilities can negatively impact your business that you may not be aware of.

Employee safety

The safety of your employees should be a top priority. When suffering from a skilled talent shortage, the machines that are neglected can malfunction, jeopardizing employee safety.

Those without proper training put themselves and their peers at even more risk. Whether it is a lack of bodies or a lack of bodies with advanced skillsets, suffering from a technical shortage puts your employees – and your entire operation – at risk.

Revenue loss

A manufacturing skills gap can also lead to decreased production output, which will hinder the growth of the company. Skilled talent shortages can lead to increased downtime and reduce production output in several ways. For instance, if equipment breaks down and your employees don’t have the skills to get your production back up and running quickly, it may become necessary to use an external maintenance provider.

Customer satisfaction

When production is stalled, you may not output the materials needed to meet your customers’ requirements. There is also the potential for machines to produce low-quality products or malfunction if they are not properly maintained.

In manufacturing, customer services and customer satisfaction are frequently the differentiators in choosing and remaining with a supplier. Over time, unhappy customers may consider other suppliers if their delivery quotas or product quality expectations are not met. Which in turn leads to a loss of your profits too.

Industry competition

If you are unable to keep your customers happy, they may start to look for other alternatives to get the products they need. This opens the door for your competitors to swoop in and steal your market share. Whether it be another product supplier from the U.S. or from overseas, unsatisfied customers may turn to your competition to meet demand.

If you’re feeling the pain of a skilled talent shortage, our Technical Workforce Solution may be able to bring you some relief. Contact us today for more information.

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