Help wanted: US factories seek workers for nearshoring boom

Craig Jones's biggest problem for years was winning new business for his family-run plastics company headquartered in Louisville, Ky. Today, the challenge is finding workers to meet the company's growing orderbook as companies increasingly source more of their parts and products from the U.S.

- Paul Berger

Jones Plastic has five factories in the U.S. and three plants in Mexico churning out door handles for refrigerators, spray arms for dishwashers, and washing machine doors for companies like Whirlpool and GE Appliances. The business is among many U.S. manufacturers who say they are struggling to find skilled workers to put a Made in America label on their goods.

U.S. factories employ about 13 million people. Plant owners are struggling to fill positions even as other sectors of the economy, such as transportation and warehousing, have recovered from pandemic-era labor shortages.

Manufacturers say hiring is one of their big challenges as they try to meet demand for American-made products.

For most of this year, the gap each month between manufacturing job openings and hirings has hovered at about 100,000 positions. More than 60% of employers in a recent survey by the National Association of Manufacturers said attracting and retaining talent is a top concern. The trade group forecasts the sector will need to fill 3.8 million roles over the next decade because of retirees leaving the industry and growing manufacturing demand.

Manufacturers are scrambling to fill positions as more companies are rethinking their supply chains and moving production out of Asia. A KPMG survey earlier this year found 73% of U.S.-based executives said their companies have brought or are bringing back more of their supply chains to the Americas because of geopolitical and economic uncertainty.

Instead of relying on a single country, such as China, to produce most of their goods, multinational companies are moving toward regional models in which factories in Europe or North America supply a greater share of products for those markets. The strategy shortens global supply chains and, in theory, reduces the risk of shocks such as trade wars, geopolitical conflicts and sudden price spikes or bottlenecks in supply chains.