June 10, 2024 Gen Z and MxD’s Role in Shaping the Future Workforce

Dubbed the “Toolbelt Generation,” Generation Z—those born between 1997 and 2012—is spearheading a significant shift in the labor market.

As the most recent entrants into the workforce, Gen Z is increasingly pursuing skilled trades over traditional two or four-year college degrees. This trend is driven by several factors: the rising salaries in skilled professions, the integration of new technologies in various hands-on industries, and a growing skepticism about the value of a college degree considering soaring tuition costs.

A Surge In Vocational Training

For decades, skilled trades have experienced a labor shortage. However, this trend is reversing, signaling a resurgence in trades such as welding, construction, and machine tooling. These fields are now recognized for their competitive pay, job security, and high levels of job satisfaction. Vocational training programs have seen a surge in enrollment, with a remarkable 16% increase last year, the highest since records began.

Having seen the experience of Millennials racking up debt for four-year college degrees, and with growing concerns about AI forcing students to consider careers that are more resilient to disruption, Gen Z and their parents are keen to explore alternatives. A recent poll found that 46% of parents are interested in career pathways and possibilities for their children that do not require a college degree.

There Is Still Work To Do

Yet despite Gen Z’s encouraging shift from four-year degrees to vocation and technical training programs, there is still more to be done. Even with this generation’s increasing interest, there are still 500,000 vacancies in manufacturing that need to be filled.

Adding to this problem is a skills gap as manufacturers move toward Industry 4.0—the digitization of manufacturing sector processes and supply chains—and an applicant gap. A tight post-COVID labor market has meant finding workers to fill immediate needs, and the digital manufacturing jobs of the future have proved highly challenging for the manufacturing sector.

As a result, it is anticipated that of the estimated 3.8 million net new employees needed in the manufacturing sector by 2033, as many as 1.9 million jobs could remain unfilled if the solutions to attracting and developing new talent are not found.

A New Talent Ecosystem

For many years, our country has pushed to make four-year college degrees accessible to everyone. However, this has resulted in those either unable or uninterested in pursuing a four-year degree being left behind. Shifting interests from Gen Z and the urgent need of manufacturers to attract new talent means there is much ground to be made up—and quickly.

A viable long-term solution for manufacturers is investing in partnerships and creating a local or regional talent development ecosystem. Manufacturers are working with high schools, community colleges and local business development groups to educate students on what the modern manufacturing sector looks like, underlining the fact that today’s factories are a hotbed of cutting-edge innovation.

This is an approach that MxD is taking at a national level. With a mission to foster the manufacturing workforce of the future through a variety of initiatives, MxD is partnering with multiple stakeholders across the public and private sector, academia and government, including ManpowerGroup, the University of Maryland-Baltimore County, and the City of Chicago, to fill the vacancy gap.

In collaboration with ManpowerGroup, MxD released a Hiring Guide, a report that highlights the manufacturing jobs of tomorrow, with a taxonomy of these new jobs and the skills required to get there. The report identified 165 new data-centric manufacturing jobs, with roles like “collaborative robotics technician” and “predictive maintenance systems specialist.” These efforts aim to assist companies in training and retaining a workforce that is not only proficient in practical skills but also adept in the digital aspects of manufacturing, which is becoming increasingly technology driven.

Furthermore, MxD has introduced a Virtual Training Center (VTC), a digital platform designed to recruit, train, and secure the growing manufacturing workforce. The VTC allows both users and contributors to access content and tools remotely and instantaneously for rapid evolution and application. The goal of the VTC is to provide manufacturers with a platform that uses cutting-edge technologies to help secure the workforce resiliency of their organizations and companies. It can enhance regional manufacturing ecosystems, provide virtual education, manage risk and compliance, and foster digitization and innovation across the supply chain.

Recognizing the economic and national security need for a globally competitive manufacturing sector, the federal government is also taking a leading role in developing tomorrow’s talent. Last year, MxD was awarded $6.2 million by the federal government to implement the Curriculum and Pathways Integrating Technology and Learning (CAPITAL) skill development program. The CAPITAL program will develop certification-based manufacturing training courses and extend them to manufacturers, including those within the Defense Industrial Base (DIB). CAPITAL will help current students and workers and future members of the workforce develop the skills and training they need to ensure the DIB can effectively deploy advanced manufacturing technologies within U.S. factories, strengthening national security and increasing U.S. manufacturing’s global competitiveness. CAPITAL will include courses and certifications that train workers for the most critical digital manufacturing roles of today and tomorrow, including AI (Artificial Intelligence) and cybersecurity for manufacturing. 

As Generation Z, the Toolbelt Generation, embraces the skilled trades, the manufacturing sector’s ecosystem approach will provide the tools, trainings, and resources necessary to ensure that workers are prepared for the demand of the industry. Together, they are building a resilient, future-proof workforce that will drive the economy forward.

About the Author:
Lizabeth Stuck is the Vice President of MxD Learn, the workforce development program at MxD. She is responsible for the development and execution of MxD’s workforce programming and strategies for increasing digital manufacturing and cybersecurity for manufacturing skill sets. She works with industry, academia, government, and non-profit organizations to define and develop workforce solutions to manufacturing’s most pressing skills challenges.

Prior to joining MxD in 2015, Lizabeth was the Deputy Director of the Office of Advisory Committees at the U.S. Department of Commerce. In this role she led the United States Manufacturing Council, working with dozens of manufacturing industry leaders to address the country’s most critical manufacturing workforce and technology challenges. Lizabeth has also held roles as a presidential appointee at the U.S. Department of Energy, the White House Office of Management and Budget, and the White House Office of Legislative Affairs under the Obama Administration. Lizabeth holds an MBA in Strategic Leadership and Change Management from DePaul University and a BA in Journalism from Indiana University.

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