Skill Shortage vs. Wages Offered: A Controversy in the Perception of the Manufacturing Industry

Michael Reader

Recently, an article on BizTimes.com (Milwaukee Business News) reported on the results of a semiannual survey conducted by the Wisconsin Manufacturers & Commerce (WMC) to assess the current concerns of its members, including the inability to hire skilled employees. Comments by some of those who read the article suggested manufacturing wages are too low to secure qualified employees.

CEOs and top executives of 306 WMC member companies responded to the survey, which included questions about employment, taxes, healthcare, and more.

According to those who answered the survey,  the “shortage of qualified and/or willing workers is getting worse and is holding back Wisconsin’s economy,” with the number of manufacturers unable to hire qualified employees rising from 53% a year ago, 64% six months ago, to an unprecedented 77% at this time.

“Wisconsin business leaders are becoming increasingly frustrated with the lack of qualified workers as well as the lack of action by politicians to address the issue,” said Kurt Bauer, WMC president and chief executive officer. “The sad irony is that as the economy improves, there is greater demand for workers. But if businesses can’t find workers, then the economy can’t achieve its full potential.”

Although, 91% of respondents believe Wisconsin is “headed in the right direction,” others indicated the strong dollar might make outsourcing appealing once again.

Comments made by readers alluded to skilled positions being compensated $12.50 to $14.00/hour, and CEOs being “out of touch with reality” when expecting a fair exchange of skills for wages offered.

The reality, however, is that there are different manufacturing positions within a company, which require different sets of knowledge, experience and skills, with wages commensurate with the responsibilities.

For example, the average base pay for a machinist at Precision Plus is $17.11/hour and the average total earnings over a year’s period is $49,921. To calculate the average hourly wage, base pays for intern, trainee, operator and setup machinists on a variety of equipment were included. The average year’s compensation included overtime and bonuses.

Precision Plus reiterates that a candidate may start their career at a community college for operator certificate and credentials. Subsequently, however, skilled candidates can qualify for on the job training to develop their skills and aptitudes.

To inquire about available positions at Precision Plus, please click HERE.