The Growing Demand for Manufacturing Workers

The manufacturing sector is experiencing a labor shortage, with many businesses struggling to find skilled workers. One underutilized but high-potential workforce consists of veterans and formerly incarcerated individuals. These groups possess valuable skill sets and, with the help of the Work Opportunity Tax Credit (WOTC), can be an asset to manufacturers looking for reliable employees.

How Hiring Ex-Cons & Veterans Benefits Manufacturers

Financial Incentives with WOTC

• Up to $9,600 per eligible hire in tax credits.

• Offsets onboarding and training costs.

A Skilled & Trainable Workforce

• Veterans: Many have experience in engineering, mechanics, and logistics.

• Ex-Offenders: Many gain training in welding, plumbing, and machinery while incarcerated.

Improved Employee Retention & Loyalty

• Employees given a second chance often show higher job commitment.

• Companies with inclusive hiring practices experience stronger workplace morale.

Best-Suited Manufacturing Sectors

• Metalworking & Fabrication – Many ex-offenders receive welding and machining certifications.
• Assembly & Production – Veterans are trained in precision, efficiency, and teamwork.
• Logistics & Supply Chain – Warehousing and transportation roles suit both veterans and ex-offenders.
•  Equipment & Vehicle Maintenance – Many veterans have mechanical and repair skills transferable to manufacturing.

By hiring ex-cons and veterans, manufacturers, via WOTC, can reduce between $2,400 and $9,600 per eligible employee in hiring costs, secure tax incentives, build a dedicated workforce, get an opportunity to hire motivated individuals who are eager to work, get a worker who is given opportunity tend to stay longer, reduce turnover rates, while making a meaningful social impact. It is  a huge a win-win opportunity for the manufacturer and employee.  Talk with a tax incentive specialist to see how much you could benefit using WOTC today.