The manufacturing sector is the second largest sector in the Louisville region’s economy, and holds a special place in the history of the region’s development. On average, the local manufacturing industry employed more than 82,000 workers in 2022 across more than 1,800 firms, accounting for 14% of the region’s private sector employment. This level of employment is 1.5 times higher than would be expected for an economy the size of the Louisville region, signifying its relative importance.
Some of the most common occupations in the manufacturing industry include Assemblers and Fabricators, Welders, Quality Assurance roles, and Machine Operators. Many of these occupations have a median wage that is higher than the region’s median wage across all occupations.
Many of the most common occupations in the manufacturing industry have a median wage higher than the living wage for a single adult with no dependents, but fall short of a family-supporting wage for a family of four with two working adults.
After experiencing a 15% loss during the COVID-19 recession, the manufacturing industry has regained the employment lost during the pandemic. The recovery in manufacturing was slower than other local industries such as Logistics and Construction, but faster than Leisure & Hospitality.
The manufacturing sector will have to address an aging workforce faster than other industries. A quarter of the current workforce is ages 55 and over. Workers under 34 makeup 28% of the manufacturing workforce, compared to 36% of the overall workforce. Younger workers are more racially and ethnically diverse, are more likely to have young children, and tend to value career advancement opportunities.
Throughout the pandemic, employers have been reevaluating their relationship with their workforce. Employers have an opportunity to showcase their competitive offer in the marketplace by focusing on quality jobs, attention to the emergent workforce, and adoption of inclusive employment practices.
For a deeper dive into the local manufacturing sector and expanding the pool of potential workers, listen to this economic update that was provided to the Kentucky Manufacturing Employer Advisory Group on September 20, 2023.
If you are interested in participating in the manufacturing industry partnership, reach out to Mike Karman, Sector Strategies Coordinator, mike.karmen@kentuckianaworks.org.
