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  • The Manufacturing Supercycle Explained: 5 Essential Takeaways

The manufacturing industry is on the verge of a transformative period known as a manufacturing supercycle. This phase is marked by prolonged economic growth and heightened demand for commodities, driven by several key factors.

Read on for 5 key insights you need to know about the Manufacturing Supercycle.

1. Definition and Drivers: A manufacturing supercycle involves sustained economic growth that significantly boosts commodity demand. Current drivers include renewable energy transitions, data infrastructure expansion, and U.S. infrastructure overhaul.

2. Increased Investments: Legislative acts such as the Inflation Reduction Act and CHIPS Act are spurring massive investments in U.S. manufacturing sectors, particularly in battery production, solar energy, and semiconductor industries. These investments are reshaping the economic landscape and positioning the U.S. as a leader in these critical areas.

3. Reshoring and Regional Growth: The American South is emerging as a manufacturing hotspot, attracting substantial investments from major firms. This trend, coupled with reshoring efforts to bring manufacturing back to the U.S., is reducing supply chain dependencies and fostering regional economic growth.

4. Talent Shortage: Despite the growth, the manufacturing sector faces a critical skills gap, with a projected 2.1 million unfilled jobs by 2030. Companies are struggling to find and retain skilled workers, which impacts production and innovation

5. Strategic Hiring Solutions: To address this talent shortage, manufacturers are encouraged to partner with recruitment process outsourcing firms and tap into underutilized talent pools, including transitioning military personnel and veterans. These strategies are essential for building a robust workforce capable of meeting the demands of the supercycle.

To learn more, read the original blog post here.

For guidance on addressing your hiring challenges and building a workforce ready for the industry's future, explore Orion's RPO Solutions for Manufacturing.

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