The Manufacturers’ Association, based in York, Pa., found in its recent Annual Manufacturing Wage & Salary report that skilled and hourly positions in South Central PA and Northern MD are still in demand to meet customer demand for orders and replace the retiring workforce.
The 20th annual survey showed that manufacturers expect to increase employment significantly as they did in 2021, with more than 880 new hires in the next 12 months – a level considered to be historically high for the survey. Manufacturing contributes about $15 billion to the South Central Pennsylvania and Northern Maryland economy each year and is the second largest employment sector with an estimated 118,000 employees.
The survey also found that almost all of the manufacturers participating in the survey (90 percent) reported difficulties in hiring hourly workers and skilled hourly workers. Of the survey respondents, 64 percent of manufacturers reported they will be hiring over the next year and that they had no plans to reduce their workforce. Turnover rates for hourly workers increased by 25 percent over 2021, indicating a fluid job market for hourly workers. Salaried exempt employees also saw increased turnover, the survey found, indicating the hot job market is creating new opportunities for salaried employees.
The survey also found that the manufacturing workforce is aging fast, with 20 percent of responding companies reporting that a third or more of their workforce could retire in the next five years. This adds to hiring challenges, respondents said, 87 percent of which reported changing recruiting tactics.
Wages are also changing. Respondents said entry level wages have increased significantly since pre-pandemic levels. Manufacturers reported that the 2022 entry level wage was even higher, having increased 8 percent over the 2021 entry level wage.