Walk into any manufacturing or engineering trade show, and you’ll hear the same refrain: “We can’t find qualified people.” Scroll through LinkedIn, and you’ll see post after post from hiring managers lamenting the lack of skilled candidates. The data backs up the frustration—by 2033, an estimated 1.9 million manufacturing jobs could remain unfilled if current trends continue.[^1]
But here’s the uncomfortable truth: most of these same companies complaining about the talent shortage are doing absolutely nothing to fix it.
The Numbers Don’t Lie
According to recent research, 59% of employees report they’ve never received formal workplace training for their current position.^2 Think about that for a moment—more than half of workers are essentially self-taught. Meanwhile, 23% of companies lack any formal compliance training plan,[^3] and 53% of HR managers acknowledge their workforce faces a skills gap.[^4]
The disconnect is stunning: 65% of manufacturers say attracting and retaining talent is their primary business challenge,[^5] yet most continue to post job descriptions demanding 5-10 years of experience while offering minimal development opportunities once someone is hired.
A study by Zippia found that 52% of companies provide one week or less of training,^6 and managers at firms with 100-500 employees spend an average of just six minutes per month training their employees.^7 This isn’t a strategy. It’s wishful thinking.
This Isn’t New—But the Solution Is Old
History offers a valuable lesson. When America faced similar workforce challenges during the early 1900s, the response wasn’t complaint—it was action. As industrialization accelerated and traditional apprenticeship models broke down, factory owners faced critical shortages of skilled labor.
In the early 1800s, business leaders recognized that the traditional British apprenticeship model wasn’t meeting America’s growing needs. Mechanic Institutes emerged in Maryland, Ohio, and Pennsylvania. In Maine, the Gardiner Lyceum offered training in mechanic arts combined with liberal education—a revolutionary approach in 1823.[^8]
By 1917, the skills shortage had become so acute that the federal government stepped in with the Smith-Hughes Act, establishing federal funding for vocational education and workforce development programs.[^9] This wasn’t perfect, but it recognized a fundamental truth: if you need skilled workers and they don’t exist, you have to create them.
The National Apprenticeship Act of 1937 further formalized this approach, setting minimum standards for registered apprenticeship programs and creating a framework that still exists today.^10
Today’s manufacturers have forgotten this lesson. Instead of investing in development, many have adopted a “poaching” strategy—waiting for someone else to train workers, then trying to recruit them away. This creates a zero-sum game where the industry as a whole loses.
The Business Case for Development
Some will argue they can’t afford to invest in training. The data suggests they can’t afford not to.
Research from the Association for Talent Development found that companies with comprehensive training programs have 218% higher income per employee than companies without formalized training. These same companies also enjoy 24% higher profit margins.[^11]
The productivity gains are equally compelling:
- Companies that provide needed training are 17% more productive and 21% more profitable[^12]
- 59% of employees say training directly improves their job performance[^13]
- Organizations with strong learning cultures are 37% more productive^14
The Retention Factor
Beyond productivity, training dramatically impacts retention—a critical concern when the cost of replacing an employee can range from 50-200% of their annual salary.
The data is clear:
- 94% of employees say they would stay longer at a company that invests in their development[^15]
- Retention rates are 34% higher among organizations that offer employee development opportunities^16
- 34% of employees who left their previous jobs cite lack of training and career growth opportunities as the primary reason^17
Consider the flip side: 40% of employees who receive poor job training leave their positions within the first year,[^18] and 74% of workers feel they aren’t reaching their full potential due to lack of development opportunities.[^19]
A Different Approach: Aptitude Over Experience
The Manufacturing Institute and EY have proposed a solution that challenges conventional hiring practices. Rather than seeking exact experience matches, they suggest “adapting a flexible view of potential talent” and hiring “individuals who bring transferable skills from other industries, academic institutions and backgrounds as well as the aptitude to evolve and grow with their jobs.”[^20]
This isn’t a radical concept—it’s a return to how many of today’s most successful training programs were built. The approach focuses on:
- Problem-solving aptitude rather than specific prior experience
- Learning agility and adaptability
- Foundational skills that can be built upon
- Cultural fit and work ethic
Once hired, systematic development becomes the differentiator. The evidence shows this works:
- Companies earn over double the income per employee when they offer comprehensive training[^21]
- 76% of employees are more likely to stay at companies that offer continuous training[^22]
- Well-planned training programs result in 92% of employees reporting improved engagement[^23]
The Skills That Matter
Interestingly, employees aren’t just asking for training—they’re desperate for it:
- 87% of millennials say professional development and career growth are important to them^24
- 74% of workers would learn new skills if their organization provided training[^25]
- 68% of employees prefer to learn while working[^26]
- 89% want training accessible anytime and anywhere to help them do their jobs[^27]
The market is signaling clearly: invest in development, and you’ll attract and retain better talent.
The Choice
The manufacturing and engineering industries stand at a crossroads. Manufacturing employment has surpassed pre-pandemic levels, reaching close to 13 million as of January 2024, driven by over $430 billion in infrastructure, clean technology, and semiconductor investments.[^28] This growth promises more than 234,000 new jobs.
But if current patterns hold, roughly half of the needed positions will go unfilled.[^29]
We can continue down the current path—posting job requirements that fewer people meet each year, competing for a shrinking pool of “qualified” candidates, and complaining about the situation.
Or we can do what American industry has always done when faced with workforce challenges: build our own solutions through systematic investment in people development.
The skills gap is real. The question isn’t whether it exists—it’s whether your organization will be part of the solution or part of the complaint department.
Sources
- [^1]: Deloitte and The Manufacturing Institute (2024). “Taking charge: Manufacturers support growth with active workforce strategies.”
- [^4]: SHRM (2022). Employee training and development research.
- [^5]: National Association of Manufacturers (2024 Q1). Outlook Survey.
- [^8]: Issuu/Talking Glass Media. “A Brief History of Career and Technical Education in the U.S.”
- [^9]: Brookings Institution (2018). “How history explains America’s struggle to revive apprenticeships.”
- [^11]: Association for Talent Development, via Shift E-learning. “Mind-blowing Statistics Prove the Value of Employee Training.”
- [^12]: Devlin Peck (2025). “Employee Training Statistics, Trends, and Data in 2025.”
- [^13]: Devlin Peck (2025). “Employee Training Statistics, Trends, and Data in 2025.”
- [^15]: LinkedIn Workplace Learning Report, via PeopleGoal (2025).
- [^18]: Yahoo Finance, via PeopleGoal (2025).
- [^19]: Middlesex University for Work Based Learning, via Shift E-learning.
- [^20]: EY and The Manufacturing Institute. “The Manufacturing Institute Adaptive Skills Study.”
- [^21]: Devlin Peck (2025). “Employee Training Statistics, Trends, and Data in 2025.”
- [^22]: SHRM (2022), via PeopleGoal (2025).
- [^23]: Axonify (2018), via Shortlister (2025).
- [^25]: Ed4Career/Middlesex University research.
- [^26]: Zippia, via PeopleGoal (2025).
- [^27]: Devlin Peck (2025). “Employee Training Statistics, Trends, and Data in 2025.”
- [^28]: Manufacturing Skills Institute (2024). “Highlights from the 2024 Deloitte and The Manufacturing Institute Workforce Study.”
- [^29]: Deloitte and The Manufacturing Institute (2024). “Taking charge: Manufacturers support growth with active workforce strategies.”
