Companies located in suburban office parks can have trouble attracting employees, as I commented recently. So, too, can companies operating factories in rural areas. Ellen Rosen in The New York Times describes the efforts of Minnesota-based Alexandria Industries, which makes components for the medical, automotive, and defense industries. The company employs about 550 people roughly two hours north of Minneapolis and St. Paul and has at least 50 openings.
Rosen quotes Tom Schabel, the company’s chief executive, as saying, “It doesn’t matter whether the company is in Michigan, Wisconsin, Texas, or Pennsylvania. One of the top issues is the difficulty of finding people.”
Rosen cites a 2015 Manufacturing Institute report predicting that 2 million skilled jobs could go unfilled by 2025. She quotes Carolyn Lee, the institute’s executive director, as saying that a third of companies surveyed had turned away work because of lack of manpower.
One initiative of Alexandria Industries, Rosen reports, is a “Not So Heavy Metal” tour, designed to generate interest in manufacturing among middle- and high-school students. Other efforts include increasing recruiting efforts, offering higher wages, offering perks like on-site day care and healthcare, and persuading older workers to postpone retirement.
Overtime is another way to make up for worker shortages. Schabel reports that it’s not difficult to get workers to accept overtime in the Minnesota winters, but the summers are another matter.
State and local governments are trying to help as well, Rosen reports, by offering tax wavers and help with student-loan repayments for those who relocate to rural areas.
In addition, the Manufacturing Institute has launched a program called Heroes MAKE America, which offers advanced training in manufacturing skills for people leaving the military. The first group of participants graduated in March.
“Still,” Rosen reports, “manufacturing has an image problem.” She quotes Lee of the Manufacturing Institute as saying 80% of people surveyed favor investing in manufacturing, but “…only a third want their children to pursue manufacturing careers.”
