Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Aïda Amer/Axios

Manufacturing in the U.S. faces a labor shortage at a scale not seen in decades, as the country's economy expands and aging workers retire — only half of whom will be replaced by new ones.

Why it matters: For the U.S. to stay competitive, experts say it must take a page from the Chinese playbook. As we’ve reported, China is investing billions in factory robots as wages rise and labor becomes more expensive.

By the numbers: A study released Wednesday by Deloitte and The Manufacturing Institute paints a dire picture of the manufacturing labor shortage.

  • In the next 10 years, they expect 4.6 million new manufacturing jobs to be created, 2.4 million of which will remain unfilled because of a skills shortage.
  • Nearly half of those openings will result from retirement, as baby boomers leave the workforce en masse.
  • Over the course of the decade, this shortage could cost the U.S. economy $2.5 trillion.

Companies are making short-term changes, like offering higher salaries and relaxing hiring requirements, to attract skilled workers, the study found.

  • Perks like remote work could lure new workers — like women and college graduates — who typically shy away from manufacturing jobs, said Paul Wellener, who leads the U.S. industrial products and construction practice at Deloitte.
  • The study also calls for companies to implement training programs and hire gig economy workers to help make up the shortage.

The bottom line: In the long term, automation will help close the gap — but it will take immediate investment in robotics to get there, according to a recent report on manufacturing competitiveness from Boston Consulting Group and Carnegie Mellon University.

  • "The US urgently needs a more aggressive approach to developing and adopting robotic technologies for manufacturing," the report’s authors wrote.
  • Robots will help counteract several forces threatening to hold back manufacturing in the U.S.: the labor shortage, decreasing productivity, rising barriers to trade and China's swift robotization.

Go deeper

Dan Primack, author of Pro Rata
7 mins ago - Podcasts

Carbon Health's CEO on unsticking the vaccine bottleneck

President Biden has said that getting Americans vaccinated for COVID-19 is his administration’s top priority given an initial rollout plagued by organizational, logistical and technical glitches.

Axios Re:Cap digs into the bottlenecks and how to unclog them with Carbon Health chief executive Eren Bali, whose company recently began helping to manage vaccinations in Los Angeles.

Biden administration unveils plan to combat domestic extremism

Photo: Alex Wong/Getty Images

White House press secretary Jen Psaki announced at a briefing on Friday that the Biden administration will roll out a three-pronged, interagency plan to assess and combat the threat posed by domestic violence extremism.

Why it matters: The federal government's approach to domestic extremism has come under scrutiny in the wake of the Jan. 6 attacks on the Capitol by a pro-Trump mob. In his inaugural address, Biden repudiated political extremism, white supremacy and domestic terrorism, vowing to defeat them.