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MILWAUKEE, WI – An increasing number of manufacturers now struggle to find qualified applicants for open positions, according to the ASQ 2016 Manufacturing Outlook Survey.

Fifty-one percent of respondents said the lack of qualified applicants is their greatest hurdle when hiring for vacant positions, up from 44% in 2011. According to recent data, 25% said their biggest challenge is the time it takes to hire a new employee, while 17% cited the lack of budget to fill open positions.

However, 55% said they’ve hired an agency to help find skilled applicants, and 41% are working with local colleges, according to survey results.

“With the Baby Boomer generation retiring and leaving manufacturers with vacant positions, the shortage of qualified applicants remains a clear concern for manufacturers,” said Cecilia Kimberlin, ASQ chair.

Manufacturers are split on the impact retirements will have on their organizations in 2016, with 37% saying retirements aren’t likely to affect the organization, and 34% saying retiring employees will greatly affect the organizations. Some 37% of respondents expect no change in quality due to retirements, while 33% say products or services will be adversely impacted. Only 6% expect quality to increase.

The overwhelming majority rely on on-the-job training to transfer knowledge from retiring workers to new employees (86%). Another 17% require additional, company-provided classroom training, and 9% require classroom training through a third-party.

In late 2014, manufacturers expressed confidence in the economy, with 83% expecting revenue growth in 2015, but that confidence has subsided as the year comes to a close. According to the 2016 survey, 65% of manufacturers anticipate an increase in revenue next year.

Forty percent of respondents cited the economy as their organization’s greatest hurdle in 2016. Thirty percent say the shortage of skilled workers will be the greatest challenge.

Despite waning confidence in the economy, 61% of respondents expect their organization to increase salaries, while 23% expect a wage freeze. Only 2% expect their companies to reduce wages, and 19% of manufacturers expect their organization to reduce staff, with 81% expecting their employees to maintain current staffing levels or hire additional staff.

More than 900 manufacturing professionals responded to the survey.

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