You may be wondering what the future of the light industrial workforce will look like in the coming year and beyond. You're not alone. Companies across the country are asking themselves the same thing. It's hard to predict exactly what will happen in the next five to ten years, but we can make some educated guesses. Based on what we're seeing right now, there are a few things you should start preparing for.
An Overview of What's Shaping the Light Industrial Workforce Now
The light industrial workforce is changing rapidly, and several factors are shaping it now. Chief among them are supply chain disruptions caused by factors like the pandemic and labor shortages. The political climate is also a major factor, with fears of recession and increasing polarization. Then there's the increasingly diverse and international workforce. This is partly a response to inflation, which has made labor more expensive in many countries. All of these factors are shaping the workforce in ways that will have a lasting impact on the industry. It's important to understand them now so you can be prepared for what's to come.
Impact of Supply Chain Disruptions on Labor
Over the last few years, supply chain disruptions have caused labor shortages and fears of recession. If you're worried about a potential recession, here are some best general business practices that you can implement to protect yourself and your business:
- It's important to have a rainy day fund. This way, if you do experience a downturn in business, you'll have some money to fall back on.
- It's a good idea to diversify your income sources. This way, if one area of your business suffers, you'll still have other sources of income to rely on.
- It's important to stay positive and focused on the future. A recession can be a difficult time for everyone, but if you keep your head up and stay positive, you'll be more likely to weather the storm.
The Reality of Labor Shortages and Rising Inflation
The reality is there are labor shortages and rising inflation. Companies are starting to feel the pressure as the market becomes increasingly competitive. They're forced to consider a diverse and international workforce, which can be difficult to manage. And with the political climate as it is, it's hard to know what's going to happen next.
What does this mean for your business? It means you need to be prepared for potential disruptions in the supply chain. It means you must be proactive about your hiring processes and prepared for a workforce that will look very different in the next few years. Not only that, but it means you must be prepared for inflation and the increasing labor cost. Times are changing, and if you want your business to stay ahead of the curve, you must be prepared for what's coming next.
The Growing Diversification and Internationalization of the Workforce
Something else that's shaping the workforce is the growing diversification and internationalization of the workforce. In the past, light industrial work tended to be done by a primarily white male workforce. But that's changing. Now, we're seeing a more diverse workforce, with women and people of color making up a larger percentage of the workforce. And as the world becomes more connected, we're also seeing a more international workforce, with people from all over the world coming to work in light industrial jobs.
This trend is driven by several factors, including the increasing number of women entering the workforce, the aging of the population, and the increasing number of immigrants coming to work in light industrial jobs.
Recession's effects on Light Industrial Jobs in 2023
Over the past few months, recession has grown into a possibility that may occur in the US and across the world. Industries such as technology and finance have started reducing workforces that they had built up during the pandemic. While hiring is still strong in the supply chain industry, those who may otherwise consider quitting their jobs may be reconsidering their next steps. According to the most recent Talent Index from software development startup Beamery, 40% of workers across all industries are delaying job searching until the economy improves.
Periodic recessions can often halt ongoing economic growth. This compels companies of all sizes and types to cut costs designed for expansion while adjusting to a sudden decline in demand. When a recession hits, small businesses are more vulnerable to error than larger ones. The strongest survivors may gain market share as rivals fall behind, setting themselves up to be successful in the next economic recovery.
While economists have not declared an official recession yet, the growing costs associated with inflation may lead to one in the next few years.
Get Help From Us
The workforce is changing rapidly, and companies must be prepared for these changes. It's evident that companies that want to thrive in the next decade must be ready to offer their workers competitive pay and a positive work environment. Additionally, they will need to be quick to adapt to the changes that are constantly taking place in the workforce.
At Eclipse Advantage, we are dedicated to helping managers overcome these challenges so they can continue to run successful enterprises. Contact our team if you're seeking a partner to assist your business with hiring and keeping employees in the US or Canada.
