‘Labor shortages are not going away’ in Michigan. Is automation the answer? – Bridge Michigan

We have essentially no growth in the working age population for the first time in U.S. history, Levanson said.

In 2000, the median age of a worker in the United States was 39. By 2020, the median age climbed to 42. And by 2030, the median age will be on the verge of 43.

The situation is acute in Michigan: The median age is 50 in 21 of 83 counties, the most counties of any state in the nation that is over the threshold. Overall, Michigan is the 12th oldest state in the nation.

Other challenges for Michigan include:

In a labor force with fewer workers, boosting educational attainment and technological skills offer a chance to grow through innovation and efficiency gains, said Dana M. Peterson, chief economist of the Conference Board.

She noted that the labor force is also dwindling in Japan, western Europe, Australia and China even as competition intensifies competition from India and sub-Saharan Africa.

State officials already are focusing on upskilling the existing workforce.

One of the main concerns we continue to hear from business leaders and employers of all shapes and sizes is that there arent enough workers with the skills they need to fill critical vacancies, Susan Corbin, director of the Michigan Department of Labor and Economic Opportunity, told Bridge, pointing to the $722 million budget recommendation to increase funding for post-secondary work skills education.

That investment, if approved, will address our states skills gap and workforce challenges by providing opportunities for Michiganders to get access to the skills, credentials, apprenticeships and degrees that businesses need while providing a clear path into a good into a good paying career for workers.

To remain competitive, Michigan small manufacturers should invest in Industry 4.0 automation and increasing flexibility for their workers, said Tom Kelly, CEO of Automation Alley. The nonprofit, based in Oakland County, advocates for more technology in manufacturing.

Manufacturing has always had a worker deficit, Kelly told Bridge. That worker deficit got exacerbated by COVID and is going to continue to get worse. So you have no choice but to automate.

Instead, Kelly said, they're using the same playbook that theyve always used.

And the risk to them, as they try to hire unskilled workers at low rates, is that those people that you need to do these jobs aren't coming back.

Kelly said hes trying to convince many small- to mid-size manufacturers to turn to robotics.

Prices have dropped and may cost tens of thousands less than hiring a full-time worker. With a robot, another worker may be able to accomplish the equivalent of two jobs and the manufacturer will be able to maintain or increase production, and likely pay their workers more because of the additional skills needed to work in the higher-tech setting.

Beyond investing in equipment, Kelly said, employers need to recognize that theyre competing for workers with technology in the form of apps like Lyft and Shipt. Creating flexible work could offer paybacks in a more stable labor force, he said, even if 40 part-timers do the work of 10 full-time employees.

For the low-skilled worker, their attitudes have changed, Kelly said. Technology has taught them that they can jump in and out of the workforce whenever they want.

Management needs to be thinking differently about how they solve the problem.

Among employers embracing that concept for workers is delivery giant Amazon, Kelly noted, with the Amazon Anytime app-based shifts. The company employs 21,000 in Michigan, said spokesperson Jessica Pawl.

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'Labor shortages are not going away' in Michigan. Is automation the answer? - Bridge Michigan