Industry Changes and Opportunities: Manufacturing

Brian Weisbarth explains the growing local opportunities in the manufacturing industry.

Today’s workforce is ever changing; baby boomers are retiring at record rates, technology is changing every day and millennials are getting more and more  involved in the work force.

For most, the path to the American dream is earning a college education followed by a job in the related field of study (if you are lucky).  Today, college graduates are leaving school with an average student loan balance of $37,172, according to a CNBC.com article from February 2018.  This becomes a huge obstacle when these workers begin to do things like buy a house, buy a car or pay for a wedding.

There is an alternative that most overlook: a career in manufacturing.  Gone are the days of dirty, dimly lit, dangerous shops with outdated machines.  Today’s manufacturing facilities are investing in state-of-the-art machines, are clean and well-kept and are focused on worker safety.

With baby-boomers exiting the workforce, the demand for manufacturing personnel to replace them is growing.  Millennials seem to be a good fit for a lot of these vacant positions.  Millennials grew up using and embracing technology so they are best equipped to handle state-of-the-art equipment.  Because of this, manufacturers are looking to and partnering with high schools and technical colleges to create apprenticeship-type programs in order to attract talent. We are happy to see partnerships and programs within the Medina community, such as the Medina County Manufacturing Partnership.  A benefit of these programs is a student can graduate high school and start earning an average income of around $40,000, without the burden of student loan debt.

At Corrigan Krause, we actively help our manufacturing clients with their succession planning concerns, helping to connect companies with the resources like the one mentioned above. It’s also important for manufacturing companies to review and improve benefit packages to enhance retention and recruitment efforts.

Look for upcoming blog posts where we break down accounting methods frequently used in the manufacturing industry, including LIFO, weighted average and specific identification, and please reach out to Brian with any manufacturing accounting specific needs.