This new Labor Market & Skills report is a supplemental asset to our wider Future of Work research paper released publicly in 2024.
July 29, 2025 – The ARM (Advanced Robotics for Manufacturing) Institute has issued its latest Future of Work supplemental report: our Future Skills Requirement Report created in in partnership with Deloitte Consulting and Valdos Consulting. In 2024, the ARM Institute set out alongside Deloitte Consulting and Valdos Consulting to assess the current workforce landscape within the U.S., understand the current level of skills sets by region, by technology, by skill level and by generational cohort. This research was supported by Department of Defense Manufacturing Technology Program.
As manufacturers integrate advanced technology solutions into their processes, technology advancements are outpacing the skills advancement needed for the manufacturing workforce. The skills profile of the manufacturing workforce is undergoing a dramatic shift, with substantial changes due to the increased use of robotics, artificial intelligence (AI), and automation.
The need for skilled advanced manufacturing employees has never been greater. To ensure the continued competitiveness and readiness of this sector, it is imperative to understand the dynamics of the workforce, anticipate future skill requirements, and strategize training initiatives accordingly.
The findings in the ARM Institute’s Labor Market and Skills Research Report provide actionable insights for employers across manufacturing. As the US looks to re-shore manufacturing and strengthen both the Defense and Organic Industrial Bases, our Future of Work reports provide the insights needed to better prepare the manufacturing workforce for the roles of today and those of tomorrow.
Select Findings from Our Report
Workforce Landscape:
- The US currently has over 11.3 million advanced manufacturing and related jobs. Talent needs and skill mismatches are a top concern for employers as demand for technology-focused skills exceed the supply of skilled workers.
Skill Shortages:
- Globally, 75% of employers are struggling to staff open roles with talent that possess the skills they need
- Attracting and retaining talent is the primary business challenge indicated by over 65% of manufacturers in 2024
- America’s submarine industrial base will need to hire 100,000 skilled employees to meet the Navy’s growing demand through 2040
Workforce Demographics
- Between 1989 and 2024, the young male (16 – 24 years) labor force participation rate has dropped from 83% to 61%
- The Southeast and Southwest were the only two US regions to have increased enrollment in 4-year colleges and universities from 2017 to 2021, increasing by 3.9% and 5.3%, respectively
- Manufacturing employment in the Sunbelt region has surpassed pre-pandemic levels while the Rust Belt region has yet to recover. 61% of new manufacturing jobs since 2019 are in small urban counties
Future Skill Requirements:
- The Southwest region is the fastest growing for advanced manufacturing jobs. Employers are projected to demand more technology-forward skills with Software Developer jobs to grow by over 500,000 in the next 10 years.
- The top five future skills may demand are expected to be: 1. Computer Science, 2. Automation, 3. Process Improvement, 4. Data Analysis, and 5. Tooling
Priority Skills Gap by Region:
- Nationwide: Computer Science
- Southwest: Tooling; Electrical Engineering
- Southcentral: Automation Southeast: Machinery; Workflow Management
- Northeast: Good Manufacturing Practices
Download the Full Report at No Cost
Download our report here
More About the ARM Institute’s Future of Work Research Program
Our Labor Market & Skills Report for Manufacturing is part of our larger Future of Work research program that seeks to address how technologies such as robotics, automation, and artificial intelligence (AI) are changing the nature of work for US. manufacturers. This research aims to detail not only these changes, but also the lessons learned, best practices, and actionable steps for educators, employers, and labor unions to take to build a future-ready manufacturing workforce.
This effort started when the ARM Institute publicly released our 74 page Future of Work Research Report in June 2024. Leveraging existing research, interviews, and case studies from across the ARM Institute’s network, this study provides key insights on workforce issues and programs that are helping prepare workers for the changes that are already here and those that are on the horizon.
The ARM Institute regularly updates our Future of Work report through supplemental assets, including our Labor Market & Skills for Manufacturing Research Report detailed on this page.
More about the future of work
ABOUT THE ARM INSTITUTE
The Advanced Robotics for Manufacturing (ARM) Institute is a Manufacturing Innovation Institute (MII) funded by the Office of the Secretary of Defense under Agreement Number W911NF-17-3-0004 and is part of the Manufacturing USA® network. The ARM Institute leverages a unique, robust, and diverse consortium of 450+ members and partners across industry, academia, and government to make robotics, autonomy, and artificial intelligence more accessible to U.S. manufacturers large and small, train and empower the manufacturing workforce, strengthen our economy and global competitiveness, and elevate national security and resilience. Based in Pittsburgh, PA since 2017, the ARM Institute is leading the way to a future where people & robots work together to respond to our nation’s greatest challenges and to produce the world’s most desired products. For more information, visit www.arminstitute.org and follow the ARM Institute on LinkedIn and X (formerly Twitter).