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The worldwide labor shortage in the manufacturing industry is a growing concern, exacerbated by several global trends and factors that impact industries across different regions.
- United States: The U.S. is experiencing significant shortages in skilled labor for manufacturing, with estimates of up to 2.1 million unfilled jobs by 2030. There is a focus on reskilling workers for advanced manufacturing technologies.
- Europe: Aging populations in countries like Germany and Italy are leading to a shrinking labor force. Countries are focusing on automation and increased immigration to address the shortfall.
- Asia: Japan faces a severe labor shortage due to its declining birth rate and aging population. In contrast, countries like China, India, and Vietnam have large youth populations. However, they face challenges in providing the advanced training and education needed for skilled roles in manufacturing.
- Developing Economies: Africa and parts of Southeast Asia face challenges from underinvestment in education and infrastructure. However, with targeted training and increased investments, they have the potential to meet global manufacturing demands.
The global labor shortage in manufacturing is a complex, multi-faceted issue requiring both immediate solutions (such as increased automation) and long-term strategies (such as education and workforce development). Addressing this shortage is crucial for ensuring the stability of supply chains and continued industrial growth.
Talent Management and HR teams need to adapt and rethink relocation strategies to attract and keep top talent. This means taking a fresh look at today’s benefits and making sure they’re set up to meet tomorrow’s needs.
Key Takeaways from NEI’s 2024 International All-Benefits Survey | Manufacturing
Notable findings from 21 participating manufacturing companies in NEI Global Relocation’s 2024 International All-Benefits Survey | Manufacturing Edition include:
PROGRAM OVERVIEW
- International policy structures for manufacturing align closely with general industry policies. The most common policy types are permanent transfers, long-term assignments, and short-term assignments. Local-hire policies follow, though they are 47 percentage points less common.
- Partial lump sums are more common in manufacturing industry policies when compared with general industry and are primarily allocated for long-term assignments and permanent transfers. Although uncommon, lump sum only policies in manufacturing are used at similar rates for permanent transfers in the general industry but rarely for short-term or long-term assignments.
- Global health plans are most common in the manufacturing industry where the general industry provides either a home-based or host-based plan approach in managing health coverage.
SUPPORTING THE FAMILY
- Cultural & language training are offered in all policies at a higher rate for manufacturing than in general industry.
- Pet shipment is more commonly offered in the manufacturing industry with the majority offering pet transportation with a cap to manage overall cost.
- Destination services offered to all long-term assignments & permanent transfers with the most prevalent services provided through a destination service provider for limited services (e.g. specific benefits only or capped days/amount).
COST IMPACT POLICY CHANGES
- Offering a furniture allowance in lieu of a household goods shipment is more commonly offered by the manufacturing industry with a flat amount for all employees being the most prevalent calculation methodology.
- Storage benefits decreased in general industry from 2022 to 2024, and the manufacturing industry has an even lower rate of offering the benefit most likely due to cost containment. Most common for long-term assignments and permanent transfers was 15–30 days storage.
- Relocation allowance usage is higher in the manufacturing industry with an increase in companies offering the allowance across all policy types. Companies are also shifting more towards offering a flat amount per assignee, instead of offering a percentage of the assignee’s salary.
Investing in Future Competitiveness Today: The Role of Relocation
As cost containment pressures mount, manufacturing companies stand to benefit from not only seeking out opportunities for cost-savings, but embracing creative policy design, efficient technology, and practical expertise focused on streamlining relocation processes, enhancing employee experience, and maximizing long-term value. NEI Global Relocation is dedicated to aligning fully with each client's priorities, business goals, and talent management strategies.
When choosing a global relocation partner, look for a company committed to maximizing your ROI, providing forward-thinking insights on industry trends, and supporting your mission to attract and seamlessly relocate top talent.
For more information, please contact your NEI representative.
About NEI Global Relocation
NEI is a certified Women’s Business Enterprise headquartered in the U.S. with in-region offices and teams in Switzerland and Singapore. As a full service, global relocation and assignment management company that partners with clients across the globe to provide consultative guidance and solutions, NEI has over 200 clients including many Fortune 500 and Fortune 1000 corporations and we support client Tier 1 and Tier 2 supplier diversity goals each year. For more information and other articles, see www.neirelo.com.
The above article is provided for informational purposes only. Please consult your tax, legal, or accounting advisors before making any decisions or transactions.
The worldwide labor shortage in the manufacturing industry is a growing concern, exacerbated by several global trends and factors that impact industries across different regions.
- United States: The U.S. is experiencing significant shortages in skilled labor for manufacturing, with estimates of up to 2.1 million unfilled jobs by 2030. There is a focus on reskilling workers for advanced manufacturing technologies.
- Europe: Aging populations in countries like Germany and Italy are leading to a shrinking labor force. Countries are focusing on automation and increased immigration to address the shortfall.
- Asia: Japan faces a severe labor shortage due to its declining birth rate and aging population. In contrast, countries like China, India, and Vietnam have large youth populations. However, they face challenges in providing the advanced training and education needed for skilled roles in manufacturing.
- Developing Economies: Africa and parts of Southeast Asia face challenges from underinvestment in education and infrastructure. However, with targeted training and increased investments, they have the potential to meet global manufacturing demands.
The global labor shortage in manufacturing is a complex, multi-faceted issue requiring both immediate solutions (such as increased automation) and long-term strategies (such as education and workforce development). Addressing this shortage is crucial for ensuring the stability of supply chains and continued industrial growth.
Talent Management and HR teams need to adapt and rethink relocation strategies to attract and keep top talent. This means taking a fresh look at today’s benefits and making sure they’re set up to meet tomorrow’s needs.
Key Takeaways from NEI’s 2024 International All-Benefits Survey | Manufacturing
Notable findings from 21 participating manufacturing companies in NEI Global Relocation’s 2024 International All-Benefits Survey | Manufacturing Edition include:
PROGRAM OVERVIEW
- International policy structures for manufacturing align closely with general industry policies. The most common policy types are permanent transfers, long-term assignments, and short-term assignments. Local-hire policies follow, though they are 47 percentage points less common.
- Partial lump sums are more common in manufacturing industry policies when compared with general industry and are primarily allocated for long-term assignments and permanent transfers. Although uncommon, lump sum only policies in manufacturing are used at similar rates for permanent transfers in the general industry but rarely for short-term or long-term assignments.
- Global health plans are most common in the manufacturing industry where the general industry provides either a home-based or host-based plan approach in managing health coverage.
SUPPORTING THE FAMILY
- Cultural & language training are offered in all policies at a higher rate for manufacturing than in general industry.
- Pet shipment is more commonly offered in the manufacturing industry with the majority offering pet transportation with a cap to manage overall cost.
- Destination services offered to all long-term assignments & permanent transfers with the most prevalent services provided through a destination service provider for limited services (e.g. specific benefits only or capped days/amount).
COST IMPACT POLICY CHANGES
- Offering a furniture allowance in lieu of a household goods shipment is more commonly offered by the manufacturing industry with a flat amount for all employees being the most prevalent calculation methodology.
- Storage benefits decreased in general industry from 2022 to 2024, and the manufacturing industry has an even lower rate of offering the benefit most likely due to cost containment. Most common for long-term assignments and permanent transfers was 15–30 days storage.
- Relocation allowance usage is higher in the manufacturing industry with an increase in companies offering the allowance across all policy types. Companies are also shifting more towards offering a flat amount per assignee, instead of offering a percentage of the assignee’s salary.
Investing in Future Competitiveness Today: The Role of Relocation
As cost containment pressures mount, manufacturing companies stand to benefit from not only seeking out opportunities for cost-savings, but embracing creative policy design, efficient technology, and practical expertise focused on streamlining relocation processes, enhancing employee experience, and maximizing long-term value. NEI Global Relocation is dedicated to aligning fully with each client's priorities, business goals, and talent management strategies.
When choosing a global relocation partner, look for a company committed to maximizing your ROI, providing forward-thinking insights on industry trends, and supporting your mission to attract and seamlessly relocate top talent.
For more information, please contact your NEI representative.
About NEI Global Relocation
NEI is a certified Women’s Business Enterprise headquartered in the U.S. with in-region offices and teams in Switzerland and Singapore. As a full service, global relocation and assignment management company that partners with clients across the globe to provide consultative guidance and solutions, NEI has over 200 clients including many Fortune 500 and Fortune 1000 corporations and we support client Tier 1 and Tier 2 supplier diversity goals each year. For more information and other articles, see www.neirelo.com.
The above article is provided for informational purposes only. Please consult your tax, legal, or accounting advisors before making any decisions or transactions.
