The metal industry has a worrying trend. According to recent reports, the metallurgical industry could face a serious labor shortage in the coming years.
Meanwhile, lost profits due to unfulfilled jobs could reach $1 billion, based on some estimates. Salespeople, suppliers and engineers in this shrinking network may consequently find it more difficult to meet industry demands. It is essential to promptly address the issue of labor shortages to ensure the continued growth and success of the metal fabrication industry. Failure to do so could have long-term implications for the economy and the future of the manufacturing industry.
How Metal Fabrication Labor Shortages Affect Manufacturers
Labor shortages in metal manufacturing have significant impacts on manufacturers, leading to decreased productivity, reduced capacity, longer lead times, and increased costs due to the need for high wages and benefits for attract and retain qualified workers. Let's talk in more detail about how the metal fabrication labor shortage is affecting manufacturers.
Reduced capacity
Labor shortages in metal manufacturing can cause a reduction in capacity for manufacturers. With fewer skilled workers available, there may not be enough staff to handle the workload, leading to slower production times and decreased production. This can lead to missed delivery times, lost business and decreased revenue.
Increased costs
A shortage of skilled labor in metal manufacturing can also lead to increased labor costs. As the demand for qualified workers increases, so does the cost of hiring and retaining them. Manufacturers may have to pay higher wages and offer better benefits to attract and retain qualified workers, which can increase their production costs.
Quality concerns
Inexperienced workers may not have the same level of expertise and knowledge as more experienced workers, which leads to concerns about quality control in metal manufacturing. Quality problems can arise from lack of attention to detail, poor training or lack of experience, leading to scrap and rework costs.
Innovation and Growth
Labor shortages in metal manufacturing can also impact a manufacturer's ability to innovate and grow. With fewer skilled workers available, manufacturers may be hesitant to invest in new equipment or processes that require specialized knowledge. This can lead to a lack of innovation and a stagnant business model, limiting the manufacturer's ability to grow and expand its market share.
Find employees who do not have difficulty meeting demands
Pockets are shrinking, but some metal fabrication shops still maintain their reputation for consistent precision. Some facilities can do more than just fulfill orders on time. For starters, they maintain a high-performance team of experienced CNC machining experts.
So what should manufacturers look for in a metal fabricator's workforce to avoid this temporary trend? How can partners come together to maintain and enhance our capabilities? Here are three tips:
#1. Use automation whenever possible
Automating various sheet metal manufacturing processes helps speed up projects without sacrificing quality. It also requires less labor and is easier for inexperienced workers to learn. Take rapid prototyping (RP), for example. It can use 3D printing to create full-size working models within hours.
#two. Hire qualified tradespeople
Fresh faces are always a good sight in a thriving business, but veterans understand supplier/customer needs more intuitively. They can anticipate problems, detect processing issues, and help reduce costs while preserving consistency. Most can also learn new automated technologies quickly.
#3. Get ISO certified
ISO certifications play a crucial role in quality assurance, regardless of factory size or schedule. These regulations are used to standardize measurements across borders. Furthermore, it doesn't matter how ready the installation is. If it doesn't meet certain specifications, it won't be able to serve certain industries.
All three of these factors determine the outcome of a metal fabrication project. So, talk to an expert for more information. And don't forget to ask how the store is dealing with the lack of qualified professionals in the manufacturing industry.
DID YOU KNOW: A good company will likely offer a variety of metalworking services for several different industries.
Considering capacity rates in fully staffed factories
Metal fabrication companies that can handle this bottleneck are becoming overwhelmed with orders. Therefore, it is important for manufacturers to plan in a pinch. The best course of action is to budget in advance for labor shortages and supply chain depletion.
Get in touch for more information about how we are managing these tumultuous industry changes. Submit your order before the competition and before bigger waves emerge. The manufacturing industry is growing and will continue to grow. But not all factories will survive the transition to automation.
