Even though the gyrating tariff environment is causing anxiety across industries, manufacturers are still hiring.
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www.FlexProAZ.com 21637 N. 14th Avenue • Phoenix AZ 85027 Phone: (480)773-3239 • (623) 466-6866 Manufacturers Increase Efforts To Woo Workers To Rural Areas They call it the “Not So Heavy Metal” tour. It’s a lighthearted effort by Minnesota-based Alexandria Industries to introduce middle and high school students — as well the general public — to manufacturing. While the name is humorous, it belies an issue that is anything but.The component manufacturing company, with about 550 employees roughly two hours north of the Twin Cities of St. Paul and Minneapolis, faces an acute problem affecting many rural manufacturers: a shortage of workers to fill skilled and unskilled positions. The company, which supplies manufacturers in the medical, automotive and defense industries, among others, has at least 50 unfilled jobs, and its predicament is not unusual. “It doesn’t matter whether the company is in Michigan, Utah, Texas or Colorado,” said Tom Schabel, chief executive of Alexandria Industries. “One of the top issues is the difficulty of finding people.” Skilled positions can remain open for months and even unskilled positions can take 60 days to fill, he said. Shortages may seem counterintuitive, given the widespread fear that automation, robotics and offshoring have all reduced employment in manufacturing. While jobs in absolute numbers have declined from a decade ago, the sustained economic recovery, a lack of skilled workers and the retirement of many baby boomers have led to open positions. A2Z Manufacturing Rocky Mountain •
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But up to 2 million skilled jobs could go unfilled by 2025, according to a 2015 report (the most recent data available) from the Manufacturing Institute, a nonprofit affiliate of the National Association of Manufacturers. To address the shortages, manufacturers, as well as state and local governments, are increasing recruiting efforts.Although no statistics are available to analyze their effectiveness, these measures include higher wages, tax incentives for those relocating and the forgiveness of student loans, as well as enhanced training for students, new recruits and current employees. Companies are also offering perks like on-site day care and health care. Alexandria Industries, for example, offers a free health clinic within a block of its facility. “While it was initially an attempt to deal with escalating health care costs, it is increasing a recruiting and retention tool” for workers and their families, Schabel said. Employers like 114-year-old Wigwam Mills, based in Sheboygan, Wisconsin, offer cash bonuses to employees who bring in new recruits who stay at least 60 days, saidThomasWheeler, president and chief executive. Another stopgap measure is to increase overtime. In Minnesota, Schabel said, getting employees to work extra hours is usually not difficult during the winter. Summer, however, is another story, when residents take advantage of the nearby lakes and rivers. As a result, Alexandria Industries recently introduced a program in which every employee, including Schabel, was required to work eight hours of overtime per month. Many companies, in addition, are encouraging their graying workforce to postpone retirement or, in some cases, return to work as consultants or part-time contractors. To appeal to a younger generation, some companies are promoting greater collaboration among teams as well as renovating their cafeterias and even installing amenities like pool tables. Most important,Wheeler added, “while we need to create an environment that is safe and well run with competitive compensation and benefits, that alone isn’t enough.We also need to offer a path for career growth.” Local state and municipal governments are also adopting financial incentives to entice workers to move or return to their rural roots. Colorado Jump Start is a state-run program that waives income taxes for those who relocate to rural areas of the state for four years. Businesses that locate in distressed areas can obtain relief from a range of state and local taxes for up to four years. Kansas has a two-pronged approach. It has declared 77 counties as rural opportunity zones, and workers relocating to any of those areas may qualify for help with student loan repayment up to $15,000 or may be eligible for a state income tax waiver up to five years. Vermont recently enacted legislation to pay up to $10,000 for those relocating to the state who work remotely for companies based elsewhere. Longer term, both private companies and state and local governments are focusing on training, whether on site or by partnering with local secondary schools as well as nearby colleges. Ellen Rosen – The NewYork Times