The Manufacturing Institute's Training Spend Hits $31.9bn

The Manufacturing Institute (MI) estimates that manufacturers are now spending US$31.9bn annually on internal and external training – up from US$26.2bn in 2019 – signalling sustained investment in capability building even as conditions tighten.

The latest MI State of Workforce Training in Manufacturing report, released in April 2026, shows efforts to scale training are continuing.

At the same time, a turbulent economic environment is beginning to weigh on programme levels, with more firms also reporting reductions in workforce compared with 2020, when the COVID-19 pandemic was ongoing.

Manufacturing training levels

Manufacturers were asked about total annual spending on in-house and external training for new and existing employees.

Based on responses, MI estimates sector-wide training spend at US$31.9bn this year, up from US$26.2bn in 2019. A majority of firms – 54.4% – are increasing current workforce training efforts, while 36.9% are holding steady.

Yet the headwinds are visible: a higher share of companies are now cutting back. In 2026, 8.7% of firms reported decreasing training efforts, compared with 2.3% in 2019.

For senior HR leaders, the data points to a dual mandate: protect critical skills investment to sustain productivity and safety, while sharpening governance, measurement and prioritisation to ensure every training dollar advances business outcomes in a more volatile operating environment.

A turbulent economic environment

The United States’ turbulent economic environment is being shaped by tariff measures and ongoing geopolitical tensions in the Middle East involving Iran.

According to the Federal Reserve’s Beige Book, some manufacturers cite uncertainty around tariffs and the regional conflict as their greatest current challenge.

The data reflect this softening: US industrial production fell 0.5% in March 2026, while manufacturing output edged down 0.1%, according to the Federal Reserve.

Workforce levels in manufacturing

Hiring momentum has moderated. Fewer firms are increasing staff levels, and more are cutting headcount compared to 2020, at the height of the COVID-19 pandemic.

In the MI’s latest survey, 36.9% of manufacturers reported increasing current workforce levels, 45.6% were holding steady, and 17.5% were decreasing. By contrast, in 2020, 43.2% were increasing, 40.2% were unchanged, and 16.7% were decreasing.

For HR leaders, this underscores the importance of precise workforce planning and targeted upskilling to protect critical capabilities through cycles.

Obstacles and technical skills

The leading obstacle to workforce training remains its potential to disrupt operations, cited by 68.9% of respondents. Even so, manufacturers continue to prioritise capability building where it matters most: job-related technical skills ranked at the top, with 88.4% of firms engaging workers in this training – up from 84.6% in 2019. 

To maintain pace in a tighter operating environment, organisations will need to schedule learning in the flow of work, deploy modular and on-the-job training and measure impact against safety, quality and throughput.

Driving the conversation

Demand for talent is not easing. A Deloitte and Manufacturing Institute study projects manufacturers will need to hire up to 3.8 million workers by 2033, with as many as 1.9 million roles potentially going unfilled due to the skills gap.

Closing that gap requires building a workforce ready for 21st-century production – integrating digital, data and AI literacy with core technical proficiency.

Reflecting this shift, Google.org has committed US$10 million to the MI to equip 40,000 current and future manufacturing employees with AI skills.

For senior HR leaders, the mandate is to protect skills investment while economic headwinds persist, align training to mission-critical roles and technologies and leverage strategic partnerships to accelerate adoption of AI-enabled capabilities – turning learning into measurable resilience and productivity at scale.

However, manufacturers will also need to be proactive to close this gap.

In a recent interview with McKinsey, Carolyn Lee, President of the Manufacturing Institute, said: “Manufacturers need to be driving the conversation, not waiting for the workforce ecosystem to arrive at their door.

"We need to be front and centre, helping describe these opportunities and combating fears, including the assumption that AI will replace workers. Jobs will change, but workers will remain.”

For senior HR leaders, that mandate translates into visible leadership on skills strategy, clear communication about how roles will evolve with AI and sustained investment in reskilling, job redesign and career pathways that give employees confidence – and capability – to grow with the work.