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. Research from the Institute of Work & Health reports that newer, untrained employees have three times the risk for a lost-time injury than mature workers, especially when 1 in 5 of those new employees do not receive safety orientation training. 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 deceased production output, which will hinder the growth of the company. According to The Manufacturing Institute, this can eventually add up to a loss of over 11% in net yearly earnings as a combined result of both lack of skilled talent and increased production costs.
A skilled talent shortage can lead to increased downtime and reduced 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 malfunctioned if they are not properly maintained.
In manufacturing, customer service and customer satisfaction are frequently the differentiator 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 to…
- 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.