US Manufacturing Sector Faces Skills Gap as Tariffs Raise Automation Concerns

The US manufacturing sector is struggling to regain its footing, with nearly a quarter of American workers employed in the industry in 1970 compared to around 8% today. The Trump administration’s tariff plan aims to reverse this decline by filling up “half-empty factories” and promoting domestic production. However, experts warn that this approach may be misguided, given the rapidly changing nature of manufacturing.

With automation and artificial intelligence increasingly taking over factory floors, new jobs will require specialized skills in software, data analytics, and coding. While some positions won’t necessitate a college degree, they do require certifications and training. “There’s no one kind of manufacturing job, but the thing that is common to every one of these jobs is that they will require skills,” said Carolyn Lee, executive director of the Manufacturing Institute.

The administration’s efforts may only be part of a broader strategy to reinvigorate manufacturing. However, critics argue that tariffs could hurt workers and lead to higher prices for consumers. “At the end of the day, tariffs are a tax on imports… The tax incidence nearly always falls on domestic sellers and consumers, not foreign producers,” said a JPMorgan note.

As AI continues to disrupt industries, experts stress the need to prepare workers for new skills. “We need to define what are the impacts of industrial AI and what those impacts will be on workers and skills,” Lee said. With nearly 1.9 million unfilled manufacturing jobs projected by 2033, the challenge is clear: retraining Americans to work in modern manufacturing roles – and getting them interested in doing so.

Source: https://edition.cnn.com/2025/04/10/business/manufacturing-us-jobs-trump-tariffs/index.html