Manufacturing faces a talent crisis. Skilled trades workers are aging out, younger workers aren't entering the field at the same rate, and competition for experienced machinists, welders, and technicians is fierce.
Benefits are a critical tool for attracting and retaining manufacturing talent. This guide covers benchmarking considerations specific to manufacturers, fabricators, and industrial employers.
The Manufacturing Workforce Challenge
Manufacturing employers face unique workforce dynamics that make benefits strategy critical:
Skills Gap & Aging Workforce
The average manufacturing worker is 44 years old. Experienced workers are retiring faster than new ones are trained. Benefits that appeal to older workers (healthcare, retirement) and younger workers (flexibility, growth) both matter.
Competition from Other Sectors
Skilled workers can often transition to construction, utilities, or logistics. Your benefits need to be competitive not just with other manufacturers, but with adjacent industries competing for similar talent.
Key Metrics to Benchmark
When benchmarking manufacturing benefits, focus on these metrics:
Employer Contribution Rates
Manufacturing has historically offered solid employer contributions, though this varies by sub-sector and company size. Smaller shops often contribute less than large plants.
Deductibles & Out-of-Pocket
Manufacturing workers are often cost-sensitive. High deductibles can be a barrier to care and a source of dissatisfaction. Knowing where you stand vs. peers helps calibrate plan design.
Coverage Tier Offerings
See how manufacturing employers structure coverage tiers—employee only, employee plus spouse, employee plus children, and family. Understand contribution strategies across each tier.
Disability Coverage
Physical work means higher injury risk. Short-term and long-term disability coverage is especially important in manufacturing. Benchmark both availability and benefit levels.
Life Insurance
Group life insurance is a standard offering in manufacturing. Benchmark employer-paid coverage amounts and supplemental options available to employees.
Manufacturing Sub-Sectors
"Manufacturing" is broad. Benefits vary significantly by sub-sector. Benchmark against your specific category for the most relevant comparisons:
Transportation & Aerospace
Automotive, aerospace, and heavy equipment manufacturing. Often larger facilities with strong benefits packages. Security clearances may be required for aerospace roles.
Machinery & Equipment
Industrial machinery, agricultural equipment, and commercial machinery. Skilled machinists and technicians command competitive total compensation including benefits.
Food Manufacturing
Food and beverage processing facilities. Higher turnover and seasonal variation in some segments. Competition from logistics and warehouse jobs for similar labor pools.
Electronic Components
Semiconductors, circuit boards, and electronic assemblies. Clean room environments and precision work require skilled technicians with competitive benefits expectations.
Medical Instruments & Supplies
Medical devices, surgical instruments, and healthcare supplies. Regulated environment with quality-focused workforce. Often premium benefits to attract precision manufacturing talent.
Metal & Mineral Products
Fabrication, foundries, and mineral processing. Welders, fabricators, and machine operators. Mix of small job shops and larger facilities with varying benefits packages.
Chemicals
Chemical manufacturing and processing. Often 24/7 operations with shift work. Safety-focused culture with comprehensive benefits as part of total compensation.
Consumer Goods
Household products, apparel, furniture, and other consumer products. Wide range of facility sizes and benefits approaches depending on product category and company scale.
Regional Considerations
Manufacturing is geographically concentrated. Benefits norms vary by region:
Midwest (OH, MI, IN, WI)
Traditional manufacturing heartland. Benefits expectations set by legacy Big Three contracts.
Southeast (TN, SC, AL, GA)
Growing manufacturing hub, especially automotive and aerospace. More flexibility in benefits design. Generally lower premiums due to regional cost differences.
Texas & Southwest
Oil & gas related manufacturing, aerospace, tech manufacturing. Competitive labor market with pressure from energy sector compensation.
Pacific Northwest & West Coast
Aerospace (Boeing), tech hardware, specialty manufacturing. Higher cost of living means benefits must be more generous to maintain competitiveness.
Benchmarking Tips for Manufacturers
Filter by Sub-Sector
"Manufacturing" is too broad. Benchmark against your actual sub-sector for meaningful comparisons. A food processor shouldn't benchmark against aerospace.
Consider Your Labor Market
Who are you actually competing against for workers? If you're losing people to the warehouse down the road, benchmark against logistics too, not just other manufacturers.
Don't Forget Disability
STD and LTD are especially important in physical work environments. Benchmark these alongside medical—they're often overlooked but highly valued by workers.
Account for Company Size
Benefits vary significantly by employer size. A 50-person job shop has different constraints than a 5,000-employee plant. Filter benchmarks accordingly.
See Manufacturing Benchmarking Data
Explore real benchmarking data from 2,800+ manufacturing employers. Filter by sub-sector, size, and region to find your peer group.