Temp Labor Ensures Ongoing Productivity in The Manufacturing IndustryJuly 29, 2022
Temp Labor Solutions Remain Primed for 2022
Temp labor has been one of the saving graces in what has been a challenging 2022 for the manufacturing sector. Post-pandemic, North America’s economy has been hit hard by labor shortages that have been exacerbated by workers becoming sick or retiring early from their profession. The onus is now on employers to attract top talent, recruit youth, and build a workforce that can support your business for many years to come.
In the meantime, temp labor agencies can step in to relieve exhausted workforces or recruit workers when labor shortages reach critical levels. During emergency labor shortages, temporary labor can help ensure a business remains productive and is able to supply demand. North America’s manufacturing industry is primed for temporary labor services that can help address labor shortages and build a workforce for the long term.
Temp Labor and Statistics Behind the Manufacturing Sectors Labor Shortages
A 2021 Deloitte Insights report published in the spring of 2021 successfully predicted the labor shortages currently impacting the manufacturing industry. The study claims that by 2030, the manufacturing industry as a whole will be short on over 2 million jobs, potentially costing American employers over a trillion dollars.
The survey reached out to many executives of major companies within the manufacturing space, with results that claim that recruiting talent to fill open positions remains the most challenging hurdle to overcome. Even entry-level jobs with relatively high hourly wages aren’t attracting workers. Retaining employees will also be exceptionally difficult as turnover is expected to increase.
Temp Labor Likely Required for These Manufacturing Industries Facing Labor Shortages
These manufacturing sub-industries are expected to experience ongoing labor shortages and worker absenteeism.
- Consumer electronics
- Home appliance manufacturing
- Furniture and wood products
- Metal fabrication and machinery
- Chemical manufacturing, including plastic and rubber production
- Natural gas, oil, gasoline, and coal manufacturing
Six Questions for Employers in the Manufacturing Sector Considering Temp Labor
For the employers considering using temp labor to manage their labor shortages, find answers to some of the most commonly asked questions and explore what temporary labor can do for your business.
What is a Temp Agency?
A temp agency offers contract workers on short notice to employers that need labor. The agency takes on the burden of recruiting and conducting payroll for the worker and dispatches them to different locations for assignment. Temp agencies can offer a wide range of skilled and low-skilled laborers suitable for multiple industries that can be trained prior to work at your job site.
Why is There a Labor Shortage in Manufacturing?
Many skilled workers have had to explore new opportunities as a result of the pandemic’s initial shutdowns, prompting a shift in worker sentiment. Now, every industry is in competition with one another to attract workers to the job site, creating complicated turnover problems for many industries using entry-level labor.
Some manufacturing professionals have explored other opportunities in different sectors or have embraced early retirement.
How Much Do Temp Agencies Charge?
Temp agencies pay their workers a living wage and potentially more for more skilled talent. Temp agencies often do not pay for vacation or sick days, and employers using temp workers get an hour of work for each hour paid. Agencies can work with tight budgets to fill an employer’s needs.
How Do Temp Agencies Make Money?
Temp agencies make a small percentage of the hourly wage that each worker performs.
Why is There a Shortage of Skilled Manufacturing Workers in the United States?
Many young workers do not have the skillset of the professionals who have worked in manufacturing for their entire careers. It will likely take several years to develop a youthful workforce with skill sets that can fill important roles in your company. Businesses should invest in their employees by providing ongoing training, education, and skill development.
What Are the Most Widespread Methods for Eliminating Labor Shortages?
Ongoing skills and job training for entry-level workers can help entire workforces stay long-term with a company. Recruitment strategies that offer career progression, flexible working schedules, and child and elder care benefits can help attract quality talent to the job site and mitigate labor shortages.
Temp Labor Solutions Provided by AFIMAC
AFIMAC is the global leader in temporary labor solutions for the manufacturing industry and has successfully provided services for numerous Fortune 500 companies across North America. Workers can even be dispatched to remote job locations, come prepared with training, and hired full-time upon the completion of their contract. No business is too big or small, as AFIMAC has served multiple industries with quality talent across the continent.
Contact us directly to learn more about AFIMAC’s full-service labor solutions for worker absenteeism, strikes, walk-offs, and more.