Manufacturing workers are planning for the future, but many are struggling to afford the present. Half actively review and adjust their retirement plans, compared with 32% of workers in other industries surveyed. Yet 56% say the rising cost of living is a primary reason they will delay retirement.
For manufacturing plan sponsors, that tension comes as the workforce itself is changing. As experienced workers approach retirement and automation reshapes jobs, benefits are becoming both an employee and a financial consideration: Are benefit dollars keeping pace with what workers need and where employers need their workforce to go?
New Benefits 2.0 research from Economist Enterprise, supported by Nuveen, points to opportunities for plan sponsors to examine how retirement, healthcare, caregiving and workforce development benefits are functioning across their workforce.
Retirement engagement may mask a bigger challenge
Manufacturing’s retirement engagement is encouraging, but the topline number masks a significant divide.
Engagement rises to 67% among executives but falls to just 31% among junior workers. With a large share of the manufacturing workforce approaching retirement, younger employees may need more support to meaningfully engage with retirement planning.
Greater engagement across career stages can help employers get more value from the retirement benefits already in place while supporting employees as they prepare for the future.
Affordability pressures have workforce implications
Immediate financial demands are also shaping how employees use their benefits.
The research found that 56% of manufacturing respondents have switched to lower-cost benefit options to reduce costs, versus 46% in other industries. Another 56% said the rising cost of living is a primary reason they will delay retirement, compare with 45% elsewhere.
Healthcare adds another pressure point. More than half of manufacturing employees surveyed, 51% said they had delayed or skipped medical care to avoid out-of-pocket expenses, compared with 41% in other industries.
Together, these findings make affordability a broader workforce planning consideration. Financial pressures are influencing how employees use benefits and when they expect to retire, making benefit design increasingly relevant to long-term workforce strategy.
Better benefits can change the talent equation
Caregiving illustrates another challenge. Among manufacturing workers who are caregivers, 33% reported difficulty accessing or using employer caregiving benefits in the past year, compared with 14% in other industries.
That matters in an industry competing for workers. Forty-six percent of manufacturing workers cite strong benefits as a key reason for staying in the industry, while 59% said they have taken or applied for a job offering equal or lower pay in exchange for better benefits, versus 48% in other sectors.
Automation is changing what employees value
Technology adds another dimension. More than half of manufacturing workers surveyed, 54% expect automation to lead to greater emphasis on training and career development. Another 43% expect greater emphasis on skills-linked or performance-based pay.
As workforce needs to evolve, the benefits conversation is widening too. Retirement and healthcare remain fundamental, while career development and skills are becoming increasingly relevant as manufacturers prepare employees for changing roles.
Make benefits work harder
The emerging challenge may not simply be how much employers spend on benefits, but how effectively those benefits address the workforce needs that matter to the organization.
The research points to several areas of focus: engaging younger workers with retirement planning, addressing affordability pressures, improving access to existing benefits and evolving benefit strategies alongside changing workforce needs.
Manufacturers are already engineering the workplace of tomorrow. Their benefit strategies need to evolve with it.
Explore the manufacturing research.
Disclosures
Nuveen and Economist Impact, or any of their affiliates or subsidiaries are not affiliated with or in any way related to each other. The research was independently developed by Economist Impact and is sponsored by Nuveen, LLC.
This material is for informational and educational purposes only as of the date of production/writing and may change without notice at any time based on numerous factors, such as market, economic or other conditions, legal and regulatory developments, additional risks and uncertainties and may not come to pass.
All information has been obtained from sources believed to be reliable. There is no representation or warranty (express or implied) as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such.
