Workforce News

The Manufacturing Institute, the NAM’s 501(c)3 workforce development and education affiliate, has released a blueprint for much-needed changes to federal workforce policy.

• This framework is the manufacturing industry’s response to President Trump’s Executive Order 14278, which calls for the modernization of the federal workforce system and the expansion of employer-led apprenticeship opportunities.

Manufacturers’ voices: The MI spent months consulting with manufacturers across the country as it formulated its recommendations. Firms of all sizes and sectors, in both rural and urban locations, told the same story: too few workers with the necessary skills are applying for the many open jobs in the industry, and this shortage has become a threat to America’s economic health.

• These testimonials echo previous findings from the MI: A landmark 2024 study it produced with Deloitte found that the U.S. manufacturing sector will face 3.8 million job openings by 2033—more than half of which may go unfilled without substantial investment in workforce development.

A policy update: To remedy this dire situation, the MI is recommending a slate of new policies to the Departments of Labor, Education and Commerce to help inform their own recommendations to the White House. Among other actions, it advises federal policymakers to:

• Promote employer participation in program design and delivery to ensure training reflects real-time industry needs;
• Simplify and stabilize access to funding for employer-led training initiatives, particularly for small and medium-sized manufacturers; and
• Expand support for incumbent worker training to help manufacturers invest in upskilling their current workforce and retaining talent.

Apprenticeship reform: The MI also offers specific recommendations for creating and enhancing employer-based apprenticeship programs. Policymakers should:

• Support flexible work-based learning models, including apprenticeships by right-sizing the regulatory scheme and investing in program development and expansion;
• Incentivize employer-responsive organizations to serve as apprenticeship intermediaries to assist employers in launching and managing programs; and
• Expand financial incentives for employers to create and operate apprenticeships.

Read the whole thing: You can read the MI’s full list of recommendations for policymakers here.

Hands-on experience: The MI’s recommendations are informed by its own expertise in running a nationwide apprenticeship program.

• The MI manages the Federation for Advanced Manufacturing Education (FAME USA), founded by Toyota, which has become the new American model for manufacturing skills training.
• With nearly 500 employers participating across 46 locations in 16 states, FAME has graduated more than 2,700 students, has nearly 1,500 students currently enrolled and boasts a 90% job placement rate.

The MI says: “It’s more important than ever that we ensure manufacturers in the U.S. have the talent they need for today and tomorrow—talent that is prepared with the skills necessary to compete,” said MI President and Executive Director Carolyn Lee.

• “The United States has long faced a structural workforce shortage, and we applaud the Trump administration for recognizing that the federal workforce development infrastructure needs to be streamlined and focused on supporting manufacturers’ and employers’ talent needs.”