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As has been commonplace over the last three years, almost all companies and small businesses are struggling with adequate staffing. Looking at our local labor market, there are many job opportunities for individuals with the matching skill sets and who are willing to work.
In particular, our manufacturing community has been hard hit. Most have had a difficult time maximizing the output capacity of the facilities they operate. One industrial park occupant shared with me their operation is at 65 percent production capacity. While this might be appealing to production workers, figuring you might not have to work as hard, long-term ramifications could pose a threat to a company's longevity.
To maintain this level of output, the current employee complement often faces mandatory overtime. While the increased income is generally welcomed, it takes a toll on workers who have families. Also, burnout is a real possibility.
Like it or not, all of our large industries are controlled by out of county, state or country concerns. This is not new. As rural communities, we covet new money flowing into our local economy. These dollars work their way into the system providing our restaurants and coffee shops with the revenue needed to exist, and hopefully make a profit. For these corporations, our lower cost of doing business and workforce is a major attraction. Our major manufacturers have benefited for decades from our strong and willing workforce.
However, in a post-COVID world, we have witnessed some changes that don't bode well for business as usual. Government attempts to see to the needs of the people appears to have compromised a once willing and engaged workforce.
Many months of pandemic relief funds, through enhanced unemployment, tax credits or outright grants has created a dependency from which some workers are finding it hard to re-emerge. Beyond the monetary benefits, fear of illness contributes to the negative perceptions of interacting with others. Both have retarded a once extremely willing workforce.
I don't mean to be the harbinger of bad news, but if our workforce does not re-emerge, I fear decisions made miles away will be detrimental to our county's economic long-term outlook. Managers have fiduciary responsibilities to whatever business they administer. If the efficiency and profitability of an operation begins to wane, decisions to close down or move become a stark reality.
The recent closure of General Electric's Materials Inspection division is a reminder. While the decision was not based entirely on lack of workforce availability, a board from hundreds of miles away made the call to shutter the building. This took place even after the construction of a $13 million state of the art lab and training center three years earlier.
Workforce availability has and will continue to be the No. 1 concern in economic development. Labor experts speak of barriers to employment. The two most prevalent are child care and transportation. Many companies have adjusted work hours, shift rotations and offer part and full-time positions.
Increases in base pay have also been implemented by many businesses. Companies have also put attendance and referral incentives in place, as well as less restrictive hiring practices. Even with all of the flexibility and accommodation being offered by employers, trained and willing workers are fewer and far between.
Perhaps the answer consists of weaning unemployed individuals from the financial goodies put in place over the last three years and compelling them to re-enter the workforce. I certainly hope universal work ethic and responsibility comes back in style.