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The manufacturing jobs deficit: Which states across the U.S. are struggling the most to fill vacant roles?
The manufacturing labor shortage is a persistent problem for businesses across the U.S., with new data shining light on the difficulty manufacturers face in meeting the increased demand for skilled workers.
The state of employment in the manufacturing industry has been turbulent over recent years, affecting not only large enterprises but small and medium businesses alike.
During the early days of the COVID-19 pandemic, around 1.4 million manufacturing jobs were lost, but as the industry has moved toward full recovery, the demand for workers has increased at such a rate that a potential labor crisis is on the horizon.
According to a study by the Manufacturing Institute (MI), by 2030, manufacturers will need to fill an extra four million jobs - over half of which (2.1 million) they predict may go unfilled.
The state of play varies across the nation, with the number of opportunities available for skilled workers shifting drastically at a state level, as well as across different job specialisms.
At ECI Software Solutions, we have crunched the numbers to determine the states where manufacturing workers are most in demand - and which locations are oversubscribed.
We searched for 20 of the most popular jobs within the manufacturing sector, before cross-referencing LinkedIn data on the jobs available for the roles in each state, with the number of people searching to apply for these jobs.
The manufacturing jobs deficit index shows which states across the U.S. are struggling to fill vacant roles, and how manufacturing software can help address labor shortages in the states that need it most.
What are the top manufacturing jobs in the U.S.?
The manufacturing sector is home to a wide variety of roles, each playing a vital part in the production of goods and materials. Having a diverse array of job roles available allows manufacturing firms to adapt more readily to technological challenges as the landscape evolves.
It also means that companies are more resilient to change and innovation, having the manpower to drive growth, achieve customer demands, and meet targets in the manufacturing sector. Without enough people in manufacturing roles across the U.S., it can cause economic growth to stall, and hinder supply chains globally.
We compiled the following list of popular job roles in the manufacturing sector which were used in the research:
- Application Engineer
- CNC Operators
- Control Systems Engineer
- Distribution Manager
- Electromechanical Technician
- Foundry Process Operator
- Maintenance Engineer
- Manufacturing Engineer
- Manufacturing Systems Engineer
- Manufacturing Technician
- Materials Technician
- Mechanical Engineer
- Process Operator
- Production Line Operative
- Production Manager
- Production Technician
- Quality Control Technician
- Quality Inspector
- Software Application Engineer
- Warehouse Operative
While every role requires its own specific skill set, all share a need for efficiency, quality, adaptability, and problem-solving - each an in-demand quality to form a highly skilled workforce.
The top 10 states with the biggest shortage of manufacturing jobs
| State | Total Job Searches | Total Jobs Available | % of Jobs Likely to Fill | MFG Job Deficit |
|---|---|---|---|---|
| Wyoming | 20 | 190 | 10.53% | -89.47 |
| New Jersey | 140 | 995 | 14.07% | -85.93% |
| Wisconsin | 440 | 1,811 | 24.30% | -75.70% |
| Iowa | 230 | 824 | 27.91% | -72.09% |
| Kentucky | 250 | 835 | 29.94% | -70.06% |
| Ohio | 760 | 2,520 | 30.16% | -69.84% |
| Illinois | 850 | 2,788 | 30.49% | -69.51% |
| New Hampshire | 140 | 446 | 31.39% | -68.61% |
| Kansas | 230 | 723 | 31.81% | -68.19% |
| South Carolina | 360 | 1,116 | 32.26% | -67.74% |
Our research reveals it is Wyoming, the least populated state in the U.S., which has the biggest manufacturing jobs deficit, with only 20 searches for 190 available jobs - a deficit of 89.47%.
Recent data released by the federal Bureau of Labor Statistics shows that Wyoming has had the third highest manufacturing growth in the nation by percentage since January 2021, at 10.4%.
However, this growth will inevitably stagnate if lack of staff remains a hurdle.
On the other side of the nation, New Jersey landed in second place with an 85.93% deficit in manufacturing jobs, owing to a total of only 140 searches for 995 available jobs.
Historical data reveals small businesses comprise 92% of all manufacturing exporters in New Jersey, suggesting they may be the ones feeling the brunt of the labor shortage most within the state.
Businesses in Wisconsin, Iowa, and Kentucky are also expected to feel the impact of the manufacturing jobs shortage, rounding off the top 5 with a deficit of 75.70%, 72.09%, and 70.06%, respectively.
How can states in need address the labor shortage?
Young people need to be made aware in High School of the breadth of opportunities in manufacturing. The industry is not often typically covered in education, but exposing more students to the various career opportunities in the industry could reduce negative perceptions about factory work, and give them a foundation for making their mark in manufacturing.
Companies in Wyoming, New Jersey, and Wisconsin could even benefit from visiting schools to promote training courses, or exploring how to facilitate apprenticeship programs.
Full training and development programs also help to upskill existing employees, fill gaps in higher-skilled manufacturing jobs - such as engineering roles - and nurture the new generation of talent.
While the manufacturing sector does often have reduced ability to offer remote work opportunities, in states where bosses need to hire high-skilled workers, they should consider what they can do to offer more flexibility and increase the appeal of their careers.
Flexible and remote work offerings can play their part in mitigating the labor shortage, as manufacturing companies can attract higher-skilled candidates from other cities and states who may only need to travel on-site once a week, month, or quarter.
Fundamentally, manufacturing companies need to explore how technology and manufacturing software can contribute to overcoming some of the challenges brought about by the labor shortage.
Artificial intelligence (AI), in particular, can help companies to reduce their reliance on human labor. Instead of worrying about jobs being replaced by AI, AI and machine learning technologies can actually help manufacturing firms to keep the lights on, with robots and “co-bots” being trained to perform a wide variety of tasks that humans could normally do.
The top 10 states that are most oversubscribed for manufacturing jobs
| State | Total Job Searches | Total Jobs Available | % of Jobs Likely to Fill | MFG Job Deficit |
|---|---|---|---|---|
| Louisiana | 820 | 541 | 151.57% | 51.57% |
| Texas | 3,760 | 3,460 | 108.67% | 8.67% |
| New York | 1,600 | 1,610 | 99.38% | -0.62% |
| Oregon | 390 | 524 | 74.43% | -25.57% |
| Hawaii | 160 | 231 | 69.26% | -30.74% |
| Idaho | 220 | 327 | 67.28% | -32.72% |
| Colorado | 610 | 907 | 67.25% | -32.75% |
| Montana | 140 | 210 | 66.67% | -33.33% |
| California | 3,590 | 5,438 | 66.02% | -33.98% |
| Florida | 1,220 | 1,854 | 65.80% | -34.20% |
Only two states, neighbors Louisiana and Texas, have more interest in jobs than available roles.
With 820 total job searches, yet only 541 available jobs, in Louisiana the demand for jobs is a staggering 51.57% higher than the opportunities on the market.
Manufacturing, a traditional industry within the state, accounts for roughly one-sixth of the gross domestic product (GDP), with emerging sectors including technology, life sciences, and aerospace.
Meanwhile, Texas - the national leader in petroleum and coal products manufacturing - has a demand for jobs 8.67% higher than what is available, a surplus which may change following news Elon Musk is eyeing up moving Tesla's state of incorporation to Texas.
New York is the state most equally matched with demand for jobs and obtainability, with 1600 job searches and 1610 available jobs - a 0.62% deficit.
The full manufacturing jobs deficit index, with all 50 states ranked from the highest jobs deficit to the least, can be found below.
Overall, on a national level, there’s a 50% deficit in demand for manufacturing jobs available in the US, highlighting the significant labor shortage in the USA.
The manufacturing jobs deficit index
-70% +
-60% to -69%
-50% to -59%
-40% to -49%
-30% to -40%
-20% to -30%
-0% to -10%
0.01% +
How can manufacturing software help tackle the labor crisis?
The industry is exploring how to readdress the gap in labor shortages, with new initiatives to upskill manufacturing workers including federal funds in the 2022 CHIPS and Science Act specifically for workforce development.
Businesses can also address their labor shortages by optimizing resource allocation and improving overall productivity with ERP manufacturing software.
ERP software can help manufacturers tackle labor shortage challenges by providing them with real-time data from their organization, to help them to plan, forecast, and leverage their data better to allocate resources.
It also helps you to consolidate your software solutions, simplify your operations, and make production management more efficient, while also helping to ensure that compliance standards are being met.
5 ways that ERP manufacturing software can help the labor shortage:
- Saving time - ERP opens the door to several ways to bring life to your shop floor and can help to fill labor gaps by automating manual, repetitive tasks to ensure that quality standards are met and maintained throughout the manufacturing process. Examples of these tasks include data entry, inventory management, and compliance tracking,
- Make informed decisions - With everything all in one place, ERP manufacturing software can allow companies to make educated decisions to improve resource planning to save time, by identifying inefficiencies and improving overall productivity.
- Improving remote work capabilities - Some businesses may benefit from being able to tap into a bigger talent pool and hire people in other states and cities. ERP systems can help by offering remote access so staff can access information from anywhere, at any time.
- Training and skills development - ERP systems can help companies to track the training requirements, certifications, and skills-level of employees. This can help identify skills gaps that can be closed through training programs and upskilling.
- Remote work collaboration - ERP systems can facilitate collaboration among teams working across America and globally by providing centralized access to documents. Cutting this need for administrative and operational work can make a big impact on a business.
If you’re interested in learning more about manufacturing ERP software to see how it can help streamline your business, explore our software offering here: https://www.ecisolutions.com/industries/manufacturing/
Global Digital Director
Domenick Naccarato has been a contributing writer for the past 8 years sharing his insight into manufacturing industry best practices, conversations with customers, and information about ERP solutions.
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