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Looming skilled labor shortage costly for manufacturers

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About 40 percent of the nation’s skilled labor force will retire within the next five years. A recent Nielsen Research study shows the impending boomer labor shortage is going to hit manufacturing companies particularly hard.

Nielsen concluded the shortfall of skilled workers will cost small companies an average of $52 million each and $100 million for the nation’s largest companies (companies reporting more than $1 billion in annual revenue).

The survey was commissioned by Advanced Technology Services, Inc. (ATS) and conducted by Nielsen Research. The survey polled 100 senior manufacturing executives representing companies with revenue between $10 million and $1 billion.

Three years ago, 68 percent of respondents said they would be affected by the labor shortage. That number rose to 81 percent this year.