Comment
GEOFF CRITTENDEN – CEO, Weld Australia
Finding and retaining skilled workers is front of mind for manufacturing industry business owners and operators.
A critical constraint: Manufacturing workforce capability and availability
T
HERE is widespread evidence that Australia’s manufacturing sector is growing. According to the Australian Industry Group’s (Ai Group) Australian Performance of Manufacturing Index (Australian PMI), the sector experienced a 26-month long run of uninterrupted expansion from 2016 to 2018. More recently, the Australian PMI rose by 3.8 points to 54.8 in April, indicating even faster growth across the manufacturing sector, with production, sales, exports and new orders all gaining ground. However, industry participants continue to cite a critical constraint – workforce capability and availability. Finding and retaining skilled workers is front of mind for manufacturing industry business owners and operators, as is the maintaining currency of skills and knowledge. Australia requires a significant increase in skilled, qualified trades 8 AUGUST 2019 Manufacturers’ Monthly
workers to meet future demand on major projects in industries as diverse as defence, shipbuilding, aerospace, infrastructure, rolling stock, and resources. According to a recent employment outlook survey in Australia conducted by the ManpowerGroup, skilled trades workers (such as electricians and welders), engineers (electrical, civil and mechanical) and technicians are scarce. In fact, 34 per cent of Australian employers admit that filling job vacancies is increasingly difficult, mainly due to lack of applicants (25 per cent), lack of skills (21 per cent), and lack of experience (19 per cent). This is further compounded by the fact that approximately 30 per cent of Australia’s existing welding workforce is aged over 45 years. This heavy proportion of older skilled trade workers, particularly welders, puts into focus the looming issues that
industrial sectors are likely to face when baby boomers finally reach retirement age – welding positions will simply become impossible to fill, particularly given the projected increased demand. Our lack of skilled workers combined with an aging workforce
demographic is exacerbated by strong employment growth. Recent labour force data from the Australian Bureau of Statistics (ABS) indicates that employment growth among manufacturers surged by 86,000 over the past 12 months – the highest growth rate of any
According to a recent employment outlook survey, skilled trades workers, engineers, and technicians are scarce.
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