China’s factory sector is poised to shrink for the eighth consecutive month in November, highlighting the challenges facing policymakers as they navigate faltering domestic demand and weakening external markets.

A Reuters poll of 21 economists forecast the official purchasing managers’ index (PMI) would inch up slightly to 49.2 from October’s 49.0, still below the 50-point mark that separates growth from contraction. The data is due on Sunday.

The persistent softness underscores the difficulties manufacturers face in sustaining a post-COVID recovery. Many firms continue to grapple with fallout from the U.S.–China trade war, which has disrupted export channels and forced some manufacturers to seek alternative markets. These headwinds are compounded by sluggish domestic consumption, a prolonged property crisis, and mounting local government debt, leaving Beijing with few conventional levers to revive growth.

For decades, Chinese policymakers relied on two principal tools to sustain expansion. The first was revving up the industrial machine to boost exports whenever household spending slowed. The second was state-led infrastructure spending to drive momentum across local economies. Today, both strategies are under strain. Global economic slowdown and fiscal constraints at the local level mean that traditional stimulus alone may be insufficient, forcing officials to contemplate deeper structural reforms to correct supply-demand imbalances, lift household consumption, and address ballooning local debt.

Industrial profit data released Thursday further reinforced the narrative of weakness, falling short of expectations. Analysts attributed some of the shortfall to a high base effect from last year, when stimulus temporarily boosted profits. Yet the underlying trend remains concerning: third-quarter GDP growth slowed to its weakest pace in a year, emphasizing China’s vulnerability to both domestic and external pressures.

Policymakers face a delicate balancing act. While reforms are essential for long-term economic sustainability, implementing them now carries risks, especially against the backdrop of trade tensions with the United States. Abrupt measures could destabilize regions heavily reliant on government employment or industries susceptible to contraction, making the political calculus as critical as the economic one.

Even so, Beijing is exploring ways to stimulate consumption without relying solely on traditional stimulus. A new plan announced Wednesday targets consumer upgrades, focusing on rural areas and niche sectors such as pets, anime, and trendy toys. By encouraging discretionary spending, officials hope to generate a more market-driven source of growth and support domestic manufacturers as industrial output remains constrained.

Meanwhile, private-sector activity is expected to remain muted. Economists polled by Reuters forecast the private-sector RatingDog PMI at 50.5, slightly down from 50.6 in October, signaling only marginal expansion.

Comparing China to Other Major Economies

China’s manufacturing malaise contrasts sharply with trends in other major economies. In India, the industrial sector continues to expand, bolstered by domestic consumption, government investment, and growing foreign direct investment, particularly in sectors such as information technology and renewable energy infrastructure. The country’s manufacturing PMI has consistently hovered above the 50-point growth threshold, highlighting the divergence from China’s prolonged contraction.

In the Eurozone, manufacturing is grappling with uneven demand and energy-related cost pressures, but some countries have experienced modest recovery thanks to government stimulus and gradual stabilization of supply chains post-pandemic. Germany, Europe’s industrial engine, remains under pressure due to weakening exports, yet smaller economies such as Italy and Spain are showing pockets of resilience driven by domestic investment and service-sector strength.

The United States presents another contrast. While industrial growth has moderated amid rising interest rates, inflation pressures, and slowing exports, the manufacturing PMI has largely stayed in expansion territory, supported by strong technological investment and resilient domestic demand. The U.S. energy and tech sectors, in particular, have helped offset softness in traditional manufacturing.

This divergence illustrates the broader global challenge: China’s reliance on exports and heavy industry leaves it more exposed to trade shocks and cyclical slowdowns, whereas economies with more diversified domestic demand or technology-driven growth engines are faring comparatively better.

The Road Ahead for China

China’s policymakers face a critical juncture. Local governments’ stretched finances, persistent property sector challenges, and the trade war’s lingering effects constrain traditional stimulus options, emphasizing the need for sustainable structural reforms. Analysts note that targeted consumption initiatives may provide a temporary boost, but without addressing debt, labor, and efficiency constraints, industrial weakness is likely to persist.

Global markets are watching closely as China’s manufacturing output is considered not just a domestic concern. It has cascading implications for commodities, supply chains, and trade flows worldwide. Sunday’s PMI reading will be scrutinized not merely as a reflection of factory activity, but as a barometer of Beijing’s ability to navigate one of the most complex economic periods in recent memory.

The United States is experiencing one of its biggest industrial growth cycles in decades. New semiconductor plants, battery factories, renewable-energy facilities, data centers, and major manufacturing hubs are breaking ground everywhere. Billions of dollars in investment are flowing into industrial construction, and companies are reshoring production at a pace few expected.

It’s an exciting moment for the sector—but behind the progress is a challenge that’s becoming impossible to ignore: there simply aren’t enough skilled workers to build all of these projects.

Industrial construction has always relied on tradespeople with deep, hands-on expertise. But the demand for electricians, welders, pipefitters, millwrights, and other skilled professionals has skyrocketed just as the availability of those workers has dropped. As a result, the very projects meant to drive America’s economic future are now facing delays and staffing bottlenecks that threaten to slow everything down. And with new industrial incentives encouraging even more megaprojects, this problem isn’t temporary—it’s growing.

The Growing Imbalance Between Industrial Growth and Skilled Labor

The mismatch between the number of projects underway and the number of qualified workers ready to fill those roles is widening quickly. These are not jobs that can be filled overnight. Most require years of training, apprenticeship, and real-world experience—not to mention certifications, safety knowledge, and technical skill.

Meanwhile, companies building these massive facilities face tight timelines, strict quality standards, and financial incentives that depend on staying on schedule. When a project doesn’t have enough workers, the consequences can be immediate and expensive. That’s why many contractors are turning to partners who can provide industrial construction staffing solutions that bring in vetted, experienced workers who can get on-site quickly.

This shift isn’t just a convenience—it’s a necessity. Traditional hiring alone can’t keep up with the pace of today’s industrial expansion, especially as demand grows in multiple regions at once.

Why the Workforce Shortage Is Getting Worse

The skilled-trades shortage isn’t new, but several powerful trends are pushing it into crisis territory:

1. An Aging Workforce

A large portion of the existing trades workforce is nearing retirement, and younger workers aren’t stepping in fast enough to replace them. Years of experience are leaving the industry with no one ready to pick up the torch.

2. Fewer Young People Pursuing Trade Careers

For years, schools have emphasized four-year degrees over trade education. As a result, many young adults don’t realize the construction trades offer solid pay, benefits, job security, and advancement opportunities.

3. Too Many Large Projects at the Same Time

Industrial megaprojects aren’t spaced out like they once were. Now, multiple massive facilities are being built simultaneously in the same regions. This creates fierce competition for the same limited pool of skilled workers.

4. Increasing Job Specialization

Modern industrial facilities rely on advanced technology, automation, and precision instrumentation. Workers need greater technical knowledge than ever before, which makes trained specialists even harder to find.

5. Higher Safety and Compliance Requirements

Industrial jobs demand strict safety training and certification. Even if a worker has the right skills, they may not meet all requirements for a particular site—making the qualified pool even smaller.

How Labor Shortages Affect Industrial Construction Projects

The effects of the skilled labor shortage are becoming clearer with every new project:

Schedule Delays

Projects stall when the right people aren’t available. Missing even a few key trades can delay entire phases of construction.

Higher Labor Costs

More companies competing for fewer workers naturally drives wages higher. Many contractors are forced to pay premium rates or add incentives just to attract talent.

Lower Productivity

Short-handed teams can’t hit expected productivity levels. That leads to inefficiencies, rushed work, and increased stress on existing crews.

More Safety and Quality Risks

Industrial construction demands accuracy and consistency. When teams are stretched thin or less experienced workers are rushed into roles, mistakes become more likely.

How Contractors Are Adapting to the New Workforce Reality

Since the shortage won’t resolve itself anytime soon, companies are adopting new strategies to keep projects moving:

1. Partnering with Skilled Staffing Providers

Staffing partners who specialize in industrial construction can provide pre-vetted, certified workers who are ready to mobilize. This gives contractors the flexibility to respond quickly to workforce gaps without sacrificing quality.

2. Investing in Apprenticeships and Training Programs

Some companies are taking workforce development into their own hands, creating training programs or partnering with trade schools to help build a stronger pipeline of new talent.

3. Improving Workforce Forecasting

Contractors are becoming more proactive about planning labor needs far ahead of time, using better forecasting models and manpower planning tools.

4. Using Technology to Boost Efficiency

Tools like digital project management, AR training, and automation can help reduce labor strain and improve overall jobsite productivity.

A Challenge That Will Shape the Future of Industrial Construction

Industrial growth in the U.S. isn’t slowing down—in fact, it’s expected to accelerate. But the success of this growth depends on having enough skilled workers to build the facilities driving this new era of domestic production. If the shortage continues unchecked, it could reshape schedules, budgets, and the way companies compete for talent.

The skilled labor shortage is no longer a side issue. It’s one of the industry’s most pressing challenges, and it will play a major role in how future projects are planned and delivered. Companies that adapt early—through better training, smarter planning, and strong staffing partnerships—will have a clear advantage.

America has the momentum. Now it needs the workforce to match it.