manufacturing & logistics.

Large federal investments mean big opportunities for manufacturing and logistics organizations — but can they find the workers they need in order to capitalize? And speaking of finding workers, is the blue-collar labor shortage here to stay, or are things beginning to change in employers' favor? We'll break all that and more down in this chapter along with this year's manufacturing and logistics wage data. It covers everything from what to pay a forklift operator in your area up to supervisors and plant managers, too.

Public investments like the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act and the CHIPS Act are poised to create lucrative new business opportunities for manufacturers in 2023. Meanwhile, technologies like IoT, cloud and edge computing, 5G networks and AI have the potential to make manufacturing and logistics operations faster, cleaner and more profitable.

Tech — and the latest trends in digitization — should help manufacturing and logistics firms capitalize on these opportunities as well. For example, new staffing technologies like digital staffing platforms can substantially accelerate the hiring process, and smarter workforce scheduling allows employers to fill shifts at a moment’s notice. Of course, organizations will also need the right people, and in recent years they’ve proven to be exceedingly difficult to find.

In fact, as many as 2.1 million jobs could be left vacant by 2030, at a cost of $1 trillion or more. Small wonder, then, that many experts think labor shortages will ultimately be the most significant long-term check on the industry’s growth. To counteract this, forward-thinking organizations will look to double down on upskilling and reskilling initiatives, tap into alternative talent pools and seek strategic partners in order to achieve their business goals.

Shipping and transportation delays. Parts shortages. Supplier slowdowns. It isn’t hard to see how or why supply chain disruption could throw a wrench in day-to-day production activities for manufacturers — in fact, the majority of companies in this space reported negative impacts to profitability of up to 13 percent related to supply chain disruption. What may be less clear, however, is the net impact on talent strategies.

Yet these same supply chain challenges can have far-reaching ripple effects, creating specific difficulties around workforce planning most of all. To remain agile in 2023, employers should look to engage more contingent talent. Hiring temporary or shift-based workers allows employers to keep their staffing levels in line with the ebbs and flows of demand. However, this kind of reactionary-based hiring means companies will be looking to staff up at the exact same time when demand increases. Employers will have to ensure their pay rates remain competitive and avail themselves of digital tools to streamline hiring in order to stay competitive for talent.

With ongoing talent shortages standing in the way of business growth for manufacturers, it’s clear that new recruiting strategies are going to be a major priority in the year ahead. In fact, you can already see that playing out right now. For example, research shows:

• Highly qualified manufacturing and logistics talent may not always be sitting in front of a computer, but they are reachable via smartphone — in fact, text messaging is the preferred mode of job-related communication for almost 70 percent of manufacturing job seekers.
• What’s more, recruiting texts boast a 98 percent open rate, compared to just 20 percent for emails.
• Hiring teams can also use text messaging to screen candidates early in the hiring process, gain clarity around skill sets and qualifications — and avoid multiple interviews.

How effective those efforts will be remains to be seen, of course, but reconfiguring recruiting strategies is very much the order of the day. Engaging with more instantaneous forms of communication can help employers both secure talent quickly for last-minute callouts or staff a position long-term. Lengthy hiring processes are often the main culprit behind missing out on top talent, so taking measures to accelerate hiring cycles this year could make all the difference.

While leading manufacturers today are understandably eager to modernize their facilities, adopt new technologies and scale the Industrial Internet of Things (IIoT), one pressing challenge remains: Where to find the digitally savvy talent base to implement and capitalize on these advanced capabilities?

As manufacturing and logistics companies advance these digitalization efforts, they’re becoming more attractive destinations for workers that previously existed outside the main talent pool. The prospect of now engaging with robotic automation and no-touch distribution, for example, is attracting tech workers — a welcome addition for employers considering the shortage of traditional manufacturing and logistics talent on the market.

While these new reinforcements are welcome, perhaps the most direct workaround will be to roll out robust upskilling and reskilling initiatives. It’s also a proven method for slowing churn — historically a chronic challenge for employers in this space. There’s no doubt that the workforce will be there: Eighty-eight percent of workers, in fact, said they would be interested in learning and development opportunities if their employers offered them. Prioritizing skilling in 2023 can allow employers to fill skills gaps while simultaneously harnessing an important employee engagement (and retention) lever.

Let's review the national averages for hourly wages across the country.

The variance percentages can be applied to the national averages to calculate the wages in your area.