By Scott Harbour

Navigating the Future Labor Market

It may seem like the current labor market is in new territory, but labor shortages are nothing new. In the 19th century there was such a need for sailors that desperate and immoral ship captains would pay to have men kidnapped and forced them to work on their ships. This practice was so widespread on the U.S West Coast that sailors called it being “shanghaied”. During the reign of Genghis Khan, the empire was so desperate for skilled labor that raiding parties were sent out to kidnap blacksmiths and carpenters just as often as they would raid for treasure.

Labor shortages and the demand for products have led humans to do horrific things to meet the demand for goods and services, but labor shortages have also been opportunities for technological and cultural innovations that led to greater inclusion. The labor shortage of WWII lowered barriers for several groups in the United States, hence paving the way for a larger labor force.

Labor shortages also create opportunities for innovation in technology that often led to new industries and more jobs. Often what appears as a great obstacle is actually an opportunity. For some organizations the remainder of this decade will be an obstacle, but for others it will be a massive opportunity.

We are at a very interesting point in time and there are opportunities to be seized for organizations that are prepared. In this decade two major demographic shifts will occur that have the potential to disrupt our labor markets even more than the COVID-19 pandemic. These two events are the retirement of the Baby Boomer generation and the largest transfer of wealth ever experienced.

In this decade the vast majority of Baby Boomers will reach retirement age, and by 2030 the U.S. will, for the first time in history, have more people over the age of 65 than under the age of 18. This is assuming that the current decline in birth rates will continue, and the rates have been trending down since 2007 with no indications of reversing. For our labor market this means a continued discrepancy in the supply of labor because we don’t have as many or more people entering the labor market as we have exiting.

Of course, there is the possibility of Boomers working later into life.

However, even if they elect to remain in the workforce longer, it is still only a matter of time before they will no longer be able to work. Any increase to the number of years a Boomer stays in the labor market will only delay the problem. It is estimated that roughly 10,000 Boomers reach retirement age every day. Consider that number with the 28 million that have already exited the labor market and the trend is easy to see.

The second major shift will occur with the greatest transfer of generational wealth that has ever happened. It is estimated that between $30 trillion and $68 trillion will transfer from Boomers to their adult children within the next 10 years. That’s a staggering number!

This transfer will make the prospect of early retirement a very real option for many Gen Xers and Millennials. For those that inherit enough to retire but remain in the labor pool, the reason why they work will shift from working to earn a living to working as a means of self-fulfillment. This change in why we work may cascade through the labor force and result in a very shallow end of the labor pool for organizations that are not prepared to satisfy labor needs.

As we progress through the decade many businesses will continue to struggle to meet their hiring needs and will be forced to evolve or die. The organizations that do what is necessary and find ways to become more efficient or incorporate new resources to supplement labor shortages will thrive. Innovations in technology with greater utilization of artificial intelligence and robotics will become more prevalent and self service will be incorporated at a deeper level in service and hospitality sectors.

Beyond the increased efficiencies and technology innovations those organizations, reliant on workers to meet the needs of their customers, will learn that the desire for fulfillment in the work experience will require them to place an even greater emphasis on workplace trust, culture and purpose.

In a future labor market where demand continues to outpace supply much like it does today, workers have more choices. For businesses to be competitive in talent recruitment they will have to align workers with a greater sense of purpose to recruit and maintain the best workers. At the top of Maslow’s Hierarchy of needs sits self-actualization and this will be the battle ground for the organizations of the future.

Competing on wages and benefits is a race to the bottom and has low barrier of competition. To some extent every organization can increase prices to cover an increase in wages, but this leads to a cycle of labor migration only shuffling the problem around like a game of hot potato. This is not to say that workers will stop working for money. Compensation will continue to be a factor in labor markets it just won’t be the most important factor. Self-actualization will be just as important.

Our labor force is already showing that they are no longer willing to accept negative work environments for money. This creates an opportunity for organizations that can create an employee experience that appeals to an employee’s desire to become better versions of themselves. Thus, competing to recruit the best talent on a completely different level, breaking free of the labor migration cycles caused by monetary incentives. The requirement to compete at this level is the ability to appeal to the individual worker through customized self-actualization programs that in turn support the overarching mission and vision of the organization.

This self-actualization benefit will be different for each employee and therefore the employee experience will need to be tailored to the individual. This tailoring will require an understanding of each employees’ talents, passions, and potential as well as the pathways to develop and express the realized potential. The employee experience will also need to include a connection to a mission and purpose that reaches beyond the bottom line and into our communities and world. Thus, providing a sense of contribution to society as a whole and supporting the desire for self-fulfillment.

The timing of these two events is not certain and will be altered by inflation, stock market performance, recession, and immigration. However, both events will eventually happen and organizations that are not prepared will suffer. This is a grim outlook for those that are not prepared. But a massive opportunity for those that are paying attention to their teams, understanding their needs, and offering a work experience that is rewarding and provides a path to realizing their potential in a real and authentic way. w

By Scott Harbour

Bocar Group Opens New Plant to Continue Internationalization Plans Within USMCA Region

Bocar Group adds a new plant to its manufacturing capacity in Huntsville, Alabama. Several government officials and senior executives of Bocar Group attended the opening ceremony, celebrating an important milestone in the Group's history. With an investment of $176 million for land and construction, the site is already fully operational and will play an important role in meeting the growing demand for local and global markets. "With our first plant in the U.S. we are confident that Bocar Group is prepared to face the challenges of the global automotive industry such as weight reduction, more efficient engines and electrification, which will also bring new opportunities,” said Marcus Baur, president of Bocar Group. “We are expanding our international presence and increasing our competitive advantage through innovation and technology. Highly specialized manufacturing processes and components are the keys to ensure value-added products and services for our customers.”

The new plant has 323,000 square feet of production and includes 18,000 square feet of offices, quality laboratories, a training center, and employee services. By the end of 2022, 420 employees are expected to work on 21 different products.

By the end of this year, Bocar’s employees will develop and produce structural, power train, and electric drive unit components, among others. The new plant is the Group’s first manufacturing facility in the United States.

“Bocar Group has a long history in the automotive sector, with nearly 40 years supplying parts to our customers in the United States. Next year, we will celebrate 65 years of serving the most important companies in the industry,” said Robbie Day, plant manager for Bocar US in Alabama. “Thanks to the support of the Alabama government, the construction of this plant has been successfully completed."

Aluminum parts are crucial to achieve automotive weight reduction and increased gas mileage targets, which in turn becomes a strategic material to comply with environmental regulations and build sustainable mobility. Since 2014, Bocar Group has developed manufacturing knowhow and earned recognition from its customers, thanks to outstanding performance and contribution to what has become a global commitment: To protect our environment. w

Legislators, Educators and Entrepreneurs Come Together to Discuss the Future of Technology and Innovation in North Alabama

Last month, higher education leadership, entrepreneurial ecosystem builders, rural community leaders and lawmakers came together in Athens, Alabama, to participate in a regional roundtable, co-hosted by Innovate Alabama and Launch 2035. The discussion focused on North Alabama’s current opportunities related to entrepreneurship, commercialization and cultivating an innovative, skilled workforce.

In partnership with Launch 2035, Innovate Alabama facilitated this roundtable to encourage collaboration between leaders across the public, private and education sectors who are facing shared challenges such as, retaining talent to support workforce needs and enhancing the landscape of capital resources to rural entrepreneurs, in hopes of discovering potential solutions and opportunities for collaboration.

“Through this roundtable, Innovate Alabama’s goal is to connect local and state policymakers with leading entrepreneurs and higher education folks across North Alabama to learn about some of the obstacles these leaders are facing as they work to move this region forward,” said Rep. Anthony Daniels, Innovate Alabama board member. “As representative of District 53, I’m grateful to serve the North Alabama community and to work with regional partners, like Launch 2035 and Alabama A&M, who are at the forefront of growing an inclusive, prosperous economy in North Alabama.”

Founded in 2014, Launch 2035 is a regional economic partnership that started with the objective to unify Limestone, Madison and Morgan counties to ensure regional economic growth over the next 20 years and met its potential through a focus on three strategic areas: land use, workforce and entrepreneurship. Today, the organization has expanded to include all of North Alabama through coordinated planning and collaborative efforts amongst local business and community leaders in each county.

One of Launch 2035’s main initiatives highlighted at the roundtable is the Singing River Trail, a 200-mile greenway system that strengthens regional bonds between 16 North Alabama cities while creating new health and wellness, educational, economic, tourism and entrepreneurial opportunities for these communities.

“The opportunities are endless when we bring together people from different corners of Alabama to develop innovative opportunities that enhance the economic landscape of our region,” said Rob Hamilton, Launch 2035 chair. “The Singing River Trail is a prime example of this. By working with leaders in both the public and private sector across multiple counties, we developed a product that would leverage our region’s outdoor recreation assets to increase our state’s economic footprint. We are excited about today’s conversation and those to follow. This is the beginning of a long partnership between our state and regional leaders as we continue tapping into North Alabama’s incredible potential.”

With numerous colleges and universities spanning across North Alabama, another critical point of discussion during the regional roundtable included post-graduate recruitment and retention challenges.

“For those of us engaged in higher education, we have noticed that many Alabama students seek opportunities outside the state after graduation with all of the knowledge and experience that they gained while in college here,” said Andrew Dollar, director of the Athens State LaunchBox. “We are grateful to connect with leaders in the business and government sectors who can serve as resources to our students and help us create more homebase opportunities for them.”

Athens State University owns and operates the LaunchBox, a new collaborative and innovative hub in downtown Athens and the host of the roundtable.

Innovate Alabama will host additional roundtables across the state to continue encouraging collaboration among local leaders and learning about the challenges and opportunities in each region. The next roundtable will be on Thursday, Oct. 20, at Stillman College in Tuscaloosa. w

BAE Systems’ Long-Range Precision Guidance Kit Passes Critical Test

BAE Systems has successfully fired its Long-Range Precision Guidance Kit (LR-PGK) for 155mm artillery projectiles from the U.S. Army’s Extended Range Cannon Artillery (ERCA) at Yuma Proving Ground, demonstrating airframe structural survivability under extreme firing conditions. The LR-PGK improves the accuracy of unguided artillery projectiles with low-cost navigation and guidance technology.

The guidance kit combines antijam GPS sensors with control planes that enable projectile maneuverability throughout flight, and is compatible with existing and future artillery projectiles. The ERCA survivability tests are a critical milestone for LR-PGK. The propellant blast, gun barrel pressure, and muzzle velocity truly tested the system’s resiliency.

“The LR-PGK has demonstrated its ability to help the U.S. Army deliver accurate fires up to 70 kilometers and meet mission objectives with fewer shots,” said James McDonough, LR-PGK program director. “Adding precision guidance to standard munitions enables our customers to engage targets with greater efficiency and reduce collateral damage.”

The evolving LR-PGK is helping the U.S. Army address its need for long

range precision fires. BAE Systems continues to advance the system design to improve capabilities, manufacturing readiness, and affordability. Following the tests, the company is focusing on long-range guidance, navigation, and projectile flight control. The kits must demonstrate their ability to operate at high spin rates, in challenging atmospheric conditions, and in the presence of enemy signal-jamming.

The recent success in test has also allowed BAE Systems to turn toward other aspects of the LR-PGK during tests.

“Now that we’ve demonstrated that the airframe can withstand being fired from ERCA, we can focus on projectile guidance in challenging conditions, including signal-jamming,” said a representative of BAE Systems. w

Invariant Corporation Continues To Expand; Adds Additional 23,000 Square Feet of Space

Invariant Corporation, partnering with Freedom Real Estate and Turner Construction, has announced that they are breaking ground on a new suite in their existing facility in South Huntsville.

Invariant moved into the new mixed-use facility at 4040 Chris Drive in July 2021 and has already outgrown the current space. With the expansion, the company will add another 23,000 square feet of space for offices, labs, and meeting areas.

“Invariant has experienced massive growth in such a short period of time that it was only natural to expand our footprint once again,” says David Anderson, President and CEO of Invariant. “We’re looking forward to continuing our relationships with Freedom Real Estate and Turner Construction and ensuring quality service to our current and future customers.”

The new facility will also allow Invariant to expand its services and improve existing vertical capabilities. The expansion will boast a new electronics lab, two separate optics labs for hardware design and development, and a shipping and receiving center to store inventory in-house as needed. With an anticipated completion date of summer 2023, Invariant expects the expansion will bring at least 25 new jobs to the area. w

i3 Holds Ribbon Cutting for New HQ

Integration Innovation Inc. (i3) held a ribbon cutting for its new headquarters located on Rideout Road SW in Huntsville, AL. This ideal location is at the entrance to Redstone Arsenal and central to the technology of Huntsville. In October 2021, i3 became a 100% employee-owned company with the goal of moving to a location that better accommodates its customer and employee growth.

“Our new Corporate HQ is a physical manifestation of the growth culture we strive to maintain at i3. The collaborative spaces and amenities designed into the building create a space that spurs innovation and will allow our team member-owners to grow and prosper,” said CEO Rich Kretzschmar.

Headquartered in Huntsville AL, i3 is a 100% team member owned company, and is a national leader in providing innovative technical and engineering solutions to a broad customer base across the U.S. DoD.

Specializing in missile and aviation engineering and logistic services; electronic warfare and electromagnetic affects analysis; UAS system integration and flight operations; full lifecycle C5ISR engineering services; engineering analysis: cybersecurity and IT/ IA innovative solutions and virtual training, simulation & serious game development and implementation.

For more information, please refer to www.i3-corps.com. w

RECOGNITIONS

Justin Low Joins Bank Independent as HR Manager

Bank Independent is pleased to announce the hiring of Justin Low as the organization’s Human Resources Manager.

Low joins the bank after spending the past five years as the Director of Human Resources for the Marriott Shoals Hotel and Spa. He was responsible for the oversight and direction of 270 employees. He also served on the Executive Management Team for the resort that was responsible for governance of the resort operations.

“I am very excited about this position and the opportunity to continue to make Bank Independent one of the best places to work in North Alabama.” Low said. “The culture that Bank Independent has established is very special and I look forward to living our Mission of making a positive difference in people’s lives.”

During the 15 years Low spent with the PCH Hotels and Resorts, he worked his way from banquet server and front desk clerk to the Director of Human Resources. He was named the Human Resources Specialist for the Marriott Shoals in 2010 before moving to the Grand Hotel resort in Fairhope as the Human Resources Manager. He was the Human Resources Manager at the Auburn Opelika Resort from 2013-2017 before returning to the Shoals.

“Justin brings with him a wealth of knowledge,” said Penny Camp, Chief People Officer of Bank Independent. “He demonstrates the exact values that we are looking for in someone to play such an important part in the development of our team members. We are very excited to have him join us and lead our Human Resources Department.”

Low is a 2009 graduate of the University of North Alabama with a degree in Human Resources Management. He is currently of the Board of Directors for the United Way of Northwest Alabama. He and his wife, Meredith, live in Florence with their two sons, Whit (8) and Oliver (6).

RECOGNITIONS

Huntsville Business Journal Welcomes New Guest Writer

The Huntsville Business Journal is proud to announce the addition of a regular bi-weekly column from Scott Harbour, a new contributing writer to the Journal.

Scott, a long-time Huntsville resident and Grissom High School graduate, currently works as the Business Director for Chapman Sisson Architects, a leading architecture firm based in Huntsville.

Prior to his current position at Chapman Sission, Scott worked at the U.S. Space & Rocket Center (USSRC) for ten years in IT and Museum Operations. During his tenure at the USSRC, Scott eventually dipped his toe into entrepreneurship, which saw him owning and operating a multi unit franchise between 2012-2021 in North Alabama.

Scott received his undergraduate degree in finance from the University of North Alabama, followed shortly with his MBA from Mississippi State University. An avid reader and writer, Scott has written one book titled Building Great Teams and managed his own business-leadership blog.

Scott’s passion for writing and his business success has provided him with the ability to take “data and weave it into an understandable narrative.”

“My time as an academic writer, combined with my past and current business experience, has given me both a love for writing and a keen understanding of analytics. I have worked in various areas that have given a diverse view of business holistically, and provided me with the base to disseminate data into useful articles and publications in the past,” said Scott.

His main areas of focus will include workplace culture, team member experience, the use of data and new technology to promote small business success, and lessons learned from past experiences.