[jcommin]

I work in automotive manufacturing. Pre-pandemic, keeping labor rates low is/was one of the easiest ways to improve profitability. Many manufacturing companies used temp services to either bolster/buffer the work force. There no benefits to cover. It was easy to find $10 - $15/hr labor. The lower the staring wage, the less qualified. You get what you pay for.

During the pandemic these same people made more money staying home and collected whatever was available. BTW, all companies did too. It was an opportunity to reflect on ones career. Some retired, some jobs either were reduced or disappeared and some took stock at where there were going.

Post pandemic, retail and non-manufacturing companies raised hourly rates to reload their work force. Some returned and some didn't and all of us see this. My company raised the hourly rate too. But there is a problem: The starting hourly rate at my company competes directly with the stating rates of retail. Why would someone work in a factory when they can make almost the same money working at a retail store? As a result, we see a turnover rate of over 45% after 2 years ( I'm being generous here) And don't get me started on the skill set or knowledge level of new hires.

Young professionals are leaving after 2-5 years of employment. They have learned there is more mobility, opportunity and money than staying and getting 2%-3% raises every year. It is a different environment that I don't see changing anytime soon.

I have been in manufacturing for almost 50 years, 35 with my current company and I am reluctant to hire a recent grad - because I know they will leave. I hear all the time to those that leave "thanks, I learned allot form you". Bittersweet - but it doesn't bode well for the future state of manufacturing