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1、October 2022 Afriandi/Getty ImagesAdvanced Industries PracticeThe Titanium Economy:How to overcome the challenge of filling high-quality jobsThriving industrial technology companies use apprenticeships,upskilling,and upward mobility to staff and retain their workforces.by Kimberly Borden,David Ebens

2、tein,Inga Maurer,and Asutosh PadhiThis is the second article in a series about the Titanium Economy.1 In future articles,we will dive deeper into sustainability in industrials and trends that will disrupt the industry.In recent decades,headlines have chronicled the decline of manufacturing in the Un

3、ited Statesand the decline of good,middle-class jobs along with it.But the coverage has almost entirely overlooked a vibrant sector within manufacturing:industrial technology.This sector,which we call the Titanium Economy,is brimming with high-quality jobs with good pay and benefits that could creat

4、e oppor-tunities for millions of workers across the country.But creating the jobs and filling them are different stories.In the past ten years,2.4 million industrial jobs went unfilled in the United States,costing the economy$2.5 trillion,according to McKinsey estimates.Furthermore,unfilled jobs wer

5、e a primary reason that seven in ten companies fell behind in scheduled production,leading many industrial leaders to identify labor shortages as a challenge to growth.Companies in the Titanium Economy are positioned to overcome the challenge of filling these jobs.The roles they seek to fill are goo

6、d,viable jobs,which are the foundation of experience-based job progressions.2 In many cases,Titanium Economy careers dont require a traditional four-year degree and pay on average more than double the wages of workers in the service sector,or 13 percent more than workers in comparable nondegree posi

7、tions in the private sector.Additionally,these companies try to ensure working conditions are comfortable,with well-lit facilities and first-rate technologies factors that contribute to increasing worker morale,productivity,and,perhaps most important,safety.The Titanium Economy is also positioned to

8、 provide education and career opportunities that could pay dividends for workers and their communities,as well as companies and their shareholders.So what can these companies do to address the manufacturing labor shortage?Some of the companies we profile in our upcoming book offer a few potential id

9、eas on where to start:Partner with local trade schools and community colleges.Fluid-handling company Graco has built relationships with educational institutions in five states where the company donates capital equipment and offers schol-arships.In 2021,this funding exceeded$1.3 million and has helpe

10、d Graco repeatedly land on Fortunes top ten list of Best Large Workplaces in Manufacturing and Production.Give employees clear pathways to advancement and offer training for upskilling.Waste-management company Casella has a robust program that gives every employee an oppor-tunity for upward mobility

11、the driver of a Unfilled jobs were a primary reason that seven in ten companies fell behind in scheduled production,leading many industrial leaders to identify labor shortages as a challenge to growth.1“Gaurav Batra,Asutosh Padhi,and Nick Santhanam,“The Titanium Economy,”McKinsey,September 2022.2 Un

12、locking experience-based job progressions for millions of workers,McKinsey,June 2,2021.2The Titanium Economy:How to overcome the challenge of filling high-quality jobsrear-load trash pickup vehicle,for example,can train to become a front-load driver and later advance to a rollout driver,providing a

13、pathway for workers to nearly double their wages in five years.Clear career advancement opportunities have allowed Casella to attract a younger,more energized workforce;as of 2019,50 percent of its workforce had not been born when the company was founded in 1975.3 Make employees owners.CSW Industria

14、ls,a diversified industrial company,made itself more attractive to recruits by creating an employee stock ownership plan funded through profit sharing.Employees own about 5 percent of the company.These efforts could also be furthered by policies at the federal,state,and local levelsand US leaders co

15、uld examine examples abroad.For example,Singapore has multiple secondary-school pathways that place students in environments tailored to their abilities;Germany has Meisterschules,or master schools,a national network of programs linking education and industry that focus on specific areas of expertis

16、e.Titanium Economy companies could help revitalize the US middle class and spur inclusive growth in rural communities across America.But they cannot do it alone.Solving the countrys manufacturing labor shortage will take a coordinated effort involving industrial companies revamping talent practices,

17、educational institutions refocusing training and upskilling programs on manufacturing,and local,state,and federal governments considering supportive policies and programs.Supporting the expansion of the Titanium Economy could help remediate the growth of income inequality in recent decades and broad

18、en opportunities for more people.Designed by McKinsey Global PublishingCopyright 2022 McKinsey&Company.All rights reserved.Kimberly Borden is a partner in McKinseys Chicago office,where Inga Maurer and Asutosh Padhi are senior partners;and David Ebenstein is a senior partner in the Stamford office.T

19、he authors wish to thank Henry Bristol,Alec Emmert,and Harry Lesher for their contributions to this article.Scan Download PersonalizeFind more content like this on the McKinsey Insights App3 2020 Sustainability Report,Casella,2020.3The Titanium Economy:How to overcome the challenge of filling high-quality jobs