Revamping U.S. Manufacturing: Bridging the Skill Gap for a Stronger Future

A 2016 report from the Federation of American Scientists (FAS) offers a fresh perspective on U.S. manufacturing, showing that today’s factories are leaner, more productive, and staffed by a more educated workforce than ever before.

Click here to read the full report.

Since the early 2000s, manufacturing employment has steadily declined. In 2001, 17.1 million Americans worked in the sector; after two recessions, that number fell to 12.3 million and has yet to rebound fully.

Despite lower headcounts, productivity has surged. According to the FAS report, U.S. manufacturing output grew by 21% since June 2009, while employment increased by just 5%.

The report identifies three primary drivers behind this productivity boom:

• Apparel: Jobs dropped from 457,000 in 2001 to 134,000 in 2016. The industry’s labor‑intensive nature and challenges in automating flexible fabrics have pushed many firms offshore.
• Technology: Automation has dramatically raised output while reducing the need for human labor.
• Demand shifts: Declining consumer interest in paper and tobacco—electronic communication has replaced paper, driving a 61% employment decline in that sector from 1999 to 2016, and smoking has cut tobacco industry jobs by two‑thirds since 1996.

Manufacturing in the U.S. Isn’t Dying—It’s Getting Smarter

Levinson’s “Job Creation in the Manufacturing Revival” argues that simply bringing factories back to the U.S. won’t fix employment numbers. New manufacturing roles demand advanced skills and higher education.

The White House Subcommittee for Advanced Manufacturing projects that the U.S. will need to fill 3.5 million manufacturing positions over the next decade. Yet up to 2 million of those roles could remain vacant due to a persistent skill gap.

In April 2016, the National Science and Technology Council reported that 80% of manufacturers faced moderate or serious shortages of qualified applicants for skilled and highly skilled production roles.

This entrenched stereotype of manufacturing—as smokestacks and backbreaking labor—creates a barrier to attracting the talent needed for tomorrow’s industry.

In a 2017 Plant Services survey, Jose Rivera, CEO of the Control System Integrators Association, emphasized the importance of rebranding manufacturing. “Industry must shed its ‘smokestack’ image and become a desirable workplace for young, educated talent,” Rivera said.

While rebranding is essential, it does not solve the immediate challenges. Alana Semuels of The Atlantic notes that workers displaced by automation are unlikely to pursue further education or retraining. Moreover, valuable industry knowledge often resides outside formal credentials.

Ken Warden, dean of the College of Applied Science and Technology at the University of Arkansas–Fort Smith, expands the call for education. He argues that higher education equips workers with new perspectives that can transform their current roles. “When incumbent workers engage in higher learning, they bring fresh insights that improve their work environment,” Warden said.

Manufacturing firms still have significant opportunity to invest in their existing workforce. Initiatives such as non‑credit training and academic credit programs can protect jobs, foster expertise, and close the industry’s skill gap.