Charles R. Goulding and Preeti Sulibhavi highlight how U.S. manufacturers like Jones Plastic & Engineering combat labor shortages by leveraging 3D printing, automation, and strategic innovation.
U.S. factories are grappling with a significant labor shortage, a challenge that has intensified with the recent trend of nearshoring—relocating supply chains closer to consumer markets to mitigate risks such as geopolitical conflicts. This shift has increased domestic production, further straining an already tight labor market. Companies like Jones Plastic & Engineering are at the forefront of this issue, striving to meet rising demand amid a dwindling workforce.
The Labor Shortage in U.S. Manufacturing
The manufacturing sector in the United States employs approximately 13 million people. However, plant owners are struggling to fill positions, even as other sectors of the economy, such as transportation and warehousing, have recovered from pandemic-era labor shortages.
Several factors contribute to this labor shortage:
- Aging Workforce: The retirement of Baby Boomers has led to a significant loss of skilled labor, creating gaps that are challenging to fill.
- Perception Issues: Manufacturing is often perceived as a less desirable career path by younger generations, who tend to favor roles offering work-life balance and remote work options.
- Educational Gaps: High schools frequently emphasize four-year degrees, overlooking vocational training that could prepare students for manufacturing careers.
To address these challenges, some companies are adopting apprenticeship programs that combine classroom education with hands-on factory training, aiming to supply the next generation of skilled workers.
Jones Plastic & Engineering: A Case Study
Jones Plastic & Engineering, a prominent player in the manufacturing sector, exemplifies the struggles faced by U.S. factories. The company has experienced significant labor shortages as demand for American-made products grows. This demand is expected to increase with investments in new semiconductor and electric-vehicle battery plants.
To mitigate these challenges, Jones Plastic & Engineering has explored various strategies, including:
- Recruitment Initiatives: Implementing targeted recruitment campaigns to attract younger workers.
- Training Programs: Offering on-the-job training to equip new hires with the necessary skills. Or reskilling current workers with the tools they need to succeed.
- Technological Investments: Exploring automation and advanced manufacturing technologies to reduce reliance on manual labor.
Jones Plastic & Engineering 3D Printing Lab
Jones Plastic has a laboratory consisting of at least two 3D printers that assist clients with prototyping services. This helps clients address some key attributes during product development such as Color, Material and Finish (CMF).
With the latest FDM technology, Jones Plastic is now able to print large-format, functional parts. Lower-cost material options also make this a good choice for fit/function validation.
Leveraging 3D Printing and Automation
In response to labor shortages, many manufacturers are turning to technologies like 3D printing and automation to maintain productivity.
- 3D Printing: Allows companies to produce complex parts with minimal human intervention. This technology can automate up to 95% of a tool build with minimal user interaction, significantly reducing the amount of labor required.
- Example: Nicolet Plastics used metal 3D printing to produce complex inserts, decreasing lead time from six weeks to two and reducing hands-on toolmaking time from 170 hours to just 10.
- Automation: The integration of robotics and automated systems can perform repetitive tasks, allowing human workers to focus on more complex and value-added activities. Automation enables companies to plug labor gaps, boost productivity and throughput, and improve production quality.
- Example: Schneider Electric has deployed AI and automation to boost efficiency and create new skilled jobs by retraining existing employees, demonstrating that new technology can enhance work rather than replace it.
Current Adoption in the Industry
While the benefits of 3D printing and automation are clear, adoption varies across the industry.
- 3D Printing: Companies like Westec Plastics have successfully implemented 3D printing to produce mold inserts, reducing lead times by 76%.
- Automation: Despite the advantages, some manufacturers have been slow to adopt automation due to high initial costs and the complexity of integrating new technologies into existing workflows. However, the ongoing labor shortage (for most of 2024 the shortage averaged about 100,000 jobs) is pushing U.S. manufacturers to develop new and creative ways to keep their operations running without additional manpower.
Challenges and Considerations
While 3D printing and automation offer promising solutions, they are not without challenges:
- Initial Investment: The cost of implementing advanced technologies can be prohibitive for some companies.
- Skill Requirements: Operating and maintaining advanced machinery requires specialized skills, necessitating training and education.
- Integration Issues: Incorporating new technologies into existing production lines can be complex and may disrupt current workflows.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes are typically eligible expenses toward the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software can also be an eligible R&D expense. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
The labor shortage in U.S. manufacturing presents a significant challenge, but it also offers an opportunity for innovation. By embracing technologies like 3D printing and automation, companies can not only mitigate the impact of workforce shortages but also enhance efficiency and competitiveness. As the industry evolves, the integration of these technologies will likely become increasingly essential, shaping the future of manufacturing in the United States.
