The media buzz is all about digital transformation these days, integrating new technologies, like digital twins, IoT sensors, machine learning, AI, and Industry 4.0—also referred to as the Fourth Industrial Revolution.
Manufacturing’s digitization is being driven by the rise of data and connectivity, analytics, human-machine interaction, and improvements in robotics. If you listen to the buzz, you would know that transformation is no longer a long-term initiative but a business imperative—and manufacturers must act fast or risk falling behind.
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But before we jump into the digital revolution, shouldn’t we first address the people part of the manufacturing question? Specifically, where will we find the highly skilled workers to do the work on the shop floor and implement all of these digital changes?
A recent study by Deloitte and the Manufacturing Institute found that U.S. manufacturing could need as many as 3.8 million new employees by 2033, and nearly 2 million of those jobs could be left unfilled.
Perhaps the most important skilled workers we need are the people shown in the eight industries listed in Table 1. Industries like machine shops, machine tools, mold making, tool and die, cutting tool accessories, semiconductors, forging, stamping, and foundries are critical to any reshoring initiative or manufacturing renaissance because they serve all other manufacturing industries. Shouldn’t we be focused on training more of these highly skilled workers before adopting digital or other high-tech solutions?
The table shows that we have lost 10,902 plants and 421,217 highly skilled workers since 2001. A big part of these eight critical industries is now offshore, and we have lost the skills, know-how, operational competencies, and many of the highly skilled artisans that make the jigs, fixtures, dies, molds, cutting tools, and gauges used in the manufacturing process of all other manufacturing industries.
Where will we find the workers?
You can’t just put an ad in the local paper to find highly skilled workers, not anymore. You might be able to steal some skilled workers from competitors, but the pool of workers with these skills no longer exists. Replacing these workers is going to take apprentice-style training, and, as Table 1 shows, it takes four years (8,000 hours) to make a journeyman worker from an entry-level applicant. All eight of these industries have their own apprentice training programs, but they are simply not enough to replace the 421,000 lost workers.
It’s not like we didn’t know this was going to happen. I have reports from Deloitte and the Manufacturing Institute going back at least 25 years that projected the need for skilled workers. However, American corporations, particularly multinational corporations, did not favor investing in long-term training like apprentice training because of the following:
- Outsourcing: Multinational corporations did not invest in the training to replace these workers because they purchased the services and products from foreign countries.
- Time: Most corporations did not want to invest in 8,000 hours of training per employee. Many told me personally that long-term training didn’t have a good enough ROI.
- Cost: Many companies also didn’t support the idea of “earn while you learn” or paying the apprentice as he/she learned new skills.
- Certification: Companies were reluctant to pay an apprentice to attain journeyman certification because they would have the skills to work anywhere and could leave the company that had invested in them.
The reluctance to fund apprentice programs in manufacturing is revealed in the federal registered apprenticeship program. In fiscal year 2024, there were 679,960 active apprentices registered in the U.S., and 95,000 were in manufacturing.
Still, 95,000 apprentices make up less than 1% of the manufacturing workforce of 12.8 million workers. If we are to have a chance of replacing the 421,000 highly skilled workers in the eight critical industries, it will require much more than 95,000 apprentices.
We are going to have to train thousands of highly skilled workers and it’s going to take more than a couple of community college courses or online training. It is apprentice training where the student must prove that he/she has mastered a skill by proving it on the shop floor.
Are apprentices worth the investment?
Today, young people do not see manufacturing as a good career field. They perceive manufacturing jobs as having limited career growth and lack of flexibility, and many also see these jobs as low-paying, monotonous, and physically demanding. They also know that manufacturing has outsourced millions of jobs and has had no loyalty to its workers, suppliers, or communities.
Bureau of Labor Statistics (BLS) data reveals that there were 482,000 manufacturing job openings in February 2025. So how is manufacturing going to change its image? It can both create the highly skilled workers needed and recruit new workers by endorsing and funding long-term apprentice training.
Why apprentice training?
- Commitment: Funding a four-year training program shows the company is willing to commit to manufacturing in the U.S. and loyalty to its workers.
- Pay to learn: The apprentice gets paid for learning, which means there is immediate income and allows young people to earn a living while gaining valuable skills and experience.
- Practical skills: Apprenticeships are a pathway to a skilled trade or career in specific trades or industries, such as machining or tool and die, which provide practical skills relevant to the job market.
- Cost: The training is focused on their career field and avoids the cost of upfront tuition payments and accumulating student loan debt.
- Certification: Upon completion of an apprenticeship, individuals receive a nationally recognized credential, usually a certification where the apprentice becomes a journeyman, demonstrating their expertise and skills. The certificate offers job security and the potential for long-term employment.
- Continued education: Some apprenticeship programs offer credits towards a college degree, allowing them to pursue further education and potential management or supervisory jobs in the company.
New Workforce Initiatives
President Trump announced the launch of new workforce initiative to expand apprenticeships in the U.S. Like his tariff program, the apprenticeship initiative is inconsistent and contradictory. The big question is financial support.
At the same time as the announcement, the administration continues to slash federal spending. Some federal funding for apprenticeship programs and apprenticeship-related research projects has been caught in the administration’s efforts to downsize government and curtail diversity, equity and inclusion (DEI) work.
The Department of Government Efficiency (DOGE) website shows about $18 million in cuts to three grants issued by the Department of Labor’s Office of Apprenticeship. Some grants supporting apprenticeship programs have been cut to trim costs or for perceived connections to DEI work. The fear is that spending cuts, in general, could scare off employers or state agencies that might have invested in these programs.
To really make the apprenticeship program work, the administration needs a comprehensive plan that includes the priority industries (like manufacturing), a consistent revenue stream (rather than one-off grants and tax credits), and the connection to state programs. The administration could learn a lot from successful apprenticeship programs in Georgia, Wisconsin, and Washington State.
Conclusion
In a press release that defends the tariff program, the Whitehouse said, “President Trump recognizes that increasing domestic manufacturing is critical to U.S. national security. Increased reliance on foreign producers for goods has left the U.S. supply chain vulnerable to geopolitical disruption and supply shocks.”
If we are going to reshore production and jobs, we will have to train the people needed to accomplish Trump’s goals. This is particularly true in the eight key industries, and it will take long-term apprentice training to rebuild these industries and replace the 421,000 highly skilled people lost since 2001.
I think we have the cart before the horse. Wouldn’t it be more appropriate to focus on training the highly skilled workers who are critical to the growth of manufacturing industries before adopting digital solutions?
Apprenticeships are the pathway to the middle class.
Michael Collins is the author of “Dismantling the American Dream: How Multinational Corporations Undermine American Prosperity.” He can be reached at [email protected] or mpcmgt.net.