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Engineering labor market
- The Occupational Outlook for Engineers is expected to grow 6.9% over the next decade.
- The current unemployment rate of Engineers is 1.5%.
- Candidates seeking increased wages
- Candidates receiving offers from multiple companies
- Longer hiring cycles significantly diminishing offer-acceptance rates
Reshoring & Smart Factories
- Manufacturing Construction spending surged 80% in 2023.
- Labor availability constitutes the greatest challenge for Reshoring.
- 86% of manufacturing executives believe that “smart factory” solutions (Industry 4.0) will be the primary factor driving competitiveness.
Construction spending in manufacturing soared by a staggering 80% in 2023, dwarfing the 6% growth witnessed in other private non-residential buildings. However, as the manufacturing renaissance unfolds, labor availability emerges as a formidable obstacle to reshoring. The challenge is multifaceted, demanding strategic solutions to ensure a seamless transition towards reshoring initiatives. Enter the era of smart factories – a paradigm shift poised to shape the future of manufacturing. According to a recent Deloitte study, a staggering 86% of surveyed manufacturing executives believe that smart factory solutions will be the primary drivers of competitiveness in the next five years. This heralds a transformative wave of efficiency, automation, and interconnected processes that will redefine the manufacturing landscape. What we’re seeing: Controls, automation, and AI has been the talk of the town over the last few years, and that trend is only increasing. Many of our clients are looking to improve their production efficiency by automating processes to reduce the amount of manual labor. With labor availability low and competition high, companies are turning to efficiency upgrades to remain competitive. One of our clients in the glass industry is currently reshoring but is facing challenges with labor availability and came to us for support. With all the additional personnel needed for a successful reshoring process, they turned to ENSER to support their design projects.
- 47% of new-hires are open to other job offers and 42% believe they could find a better job if they kept looking.
- Talent retention has become the #1 operational priority for companies this past year.
Amidst the promises of industry progress, the human factor remains central. A recent Gartner study on newly hired employees reveals that 47% of respondents were still open to other job offers, and 42% believed they could find a better job if they continued their search. Moreover, a Gallagher study identifies the top operational priority of surveyed companies as retaining talent. This underscores the critical importance of cultivating a work environment that nurtures and values its human capital. What we’re seeing: Hiring and Employee retention have become two of the biggest hurdles our clients are facing. The companies that we have seen most successfully tackle these challenges have a few commonalities; namely, flexibility and the willingness to adapt to changing times. We’ve covered the tight labor market and demand for skilled workers, but the other side of the coin is equally important, talent retention. We have a client in the aerospace sector that has seen tremendous growth over the last five years but stagnated around mid-2022 as the labor market tightened. Their hiring had slowed down, but more troubling, they had started losing employees to their competition. In an effort to continue their growth, they opted to offer more flexibility to their employees, namely remote work and hybrid schedules. This employee-centric change to their policies improved both their retention and hiring, allowing them to continue their impressive growth.
Tying it All Together
In conclusion, the future of engineering is painted with hues of growth, innovation, and resilience. At ENSER, we stand poised to harness these trends, leveraging our expertise to navigate the evolving landscape. As we venture into this new era, the convergence of labor and manufacturing trends propels us forward, shaping a future where excellence is not just a goal but a constant pursuit.
Transforming Challenges into Opportunities
- Frustration over low candidate offer acceptance rates
- Dissatisfied with inefficient manual production processes
- Desperation over limited bandwidth of internal resources
- Aggravation over sliding schedules and missed deadlines