U.S. Manufacturing Focuses on Workforce Up skilling and Technology

A recent poll by Industrial Media reinforces the persistent and critical challenge facing U.S. manufacturing today: closing the skills gap. 

When manufacturing and engineering professionals were asked to identify the single most important factor for the survival of U.S. manufacturing, 46% pointed to addressing this gap. Other priorities included maintaining technological leadership (28%) and rebalancing global trade (25%). 

These responses collectively underline that while technology and trade are key pillars, workforce development is undeniably at the heart of manufacturing’s future viability. However, a sobering perspective tempers any perceived optimism. A separate Industrial Media survey conducted in August 2025 found that 63% of respondents expressed skepticism that the skills gap can ever be fully closed. 

That response aligns with recent Labor Department data revealing four consecutive months of job losses in manufacturing up to the end of August, according to the National Association of Manufacturers (NAM), with no data as yet published for the last couple of months due to the government shutdown. NAM Chief Economist Victoria Bloom highlighted at the time that employment in the sector was down 78,000 for the year and added that “if uncertainty persists and activity remains slow, many manufacturers will continue to hold off on hiring. “

Despite these challenges, leading manufacturers are proactively investing in solutions that include leveraging automation and reskilling initiatives. Industrial robots have become a mainstay in modern facilities, with over 500,000 units installed annually worldwide for the past four years, according to the International Federation of Robotics. These machines excel at repetitive tasks, though higher-skilled jobs are still requiring human expertise, which underscores the ongoing need for a skilled workforce.

There are increasing corporate efforts to build this workforce, as evidenced by major commitments from industry giants. Caterpillar Inc., for example, recently pledged $100 million toward workforce development, dedicating $5 million specifically to upskilling workers in Indiana. This commitment is part of a broader strategy to prepare employees for advanced manufacturing roles and attract new talent to the industry, coinciding with a $725 million expansion at its Lafayette engine facility to meet increased energy demands. Similarly, GE Aerospace launched a $30 million, five-year workforce training initiative aimed at enhancing U.S. manufacturing capabilities. This program focuses on funding local training, expanding curricula, updating equipment, and reducing financial barriers in technical education, with an emphasis on supporting innovation and long-term competitiveness in aerospace manufacturing.

Workforce development efforts, while crucial, do not operate in isolation however. The broader context of global trade and technology leadership continues to influence manufacturing’s landscape. Policy changes and supply chain disruption raise costs, prompting some reshoring of production but also resulting in employment shifts within sectors. Meanwhile, maintaining a competitive edge in innovation remains a pressing concern.

Ultimately, the future of U.S. manufacturing hinges on a triad of workforce skill development, trade balance, and technological leadership. While closing the skills gap is a formidable challenge, the coordinated efforts of businesses, educational institutions, and policymakers may offer a pathway to help not only sustain but also grow American manufacturing in the coming years.