Also, as companies begin to reshore, demand for more skilled trades workers will continue to rise. According to the 2026 USA Reshoring Survey Report, 36% of manufacturers say they have reshored or are actively executing additional reshoring.
With this additional manufacturing work coming to the U.S., manufacturers are looking for ways to support the growing need for skilled workers. Many say hiring technicians like welders, maintenance and repair techs, and machinists is at a very difficult level.
To fill these roles, 61% of firms are using trade or vocational schools, 58% are using internal upskilling or reskilling programs, 51% are using community college partnerships, 46% are using 3rd party staffing, and 43% are using apprenticeships.
AI can lower barriers to entry as embedded expertise reduces dependence on prior experience, a helpful tool as more workers begin to retire. Manufacturers have an opportunity they need to take advantage of to support the development of skilled trade workers to fill the rapidly expanding gap, ensuring the U.S. can sustain the resurgence of domestic production.
Classroom discussion questions:
1. How should manufacturers balance long‑term investments in automation with short‑term strategies like wage increases or training programs when responding to persistent skilled labor shortages?
2. What operational risks arise when firms rely heavily on overtime, temporary workers, or outsourcing to fill skilled labor gaps?
Using this definition, 9% of all U.S. jobs are in the skilled trades, with 60% of those consisting of jobs in construction and manufacturing. For each person completing a training program, the skilled trades have 3 job openings, creating a talent gap of 1.3 million workers. Around 25% of workers in the skilled trades are 55 or older, meaning demand is expected to rise as workers begin to retire.