TAKEAWAYS
When asked about factors contributing to decreased optimism, manufacturers cite three main challenges: • Interest rates (36%) • Economic conditions (27%) • Labor shortages (26%) Compounding these challenges, manufacturers have had to increase wages to meet labor needs and support employees through an economic slump. More than half (53%) of manufacturers have increased wages by 5% to 8% in the past 12 months, and nearly one-quarter (22%) have increased wages by 9% or more. Thirty six percent of manufacturers report that wage increases over the past 12 months are signi cantly higher than increases over the past ve years. On a positive note, nearly half of survey respondents (43%) report consistent or increased customer demand and 34% note improvements to the supply chain. In comparison, in October 2022, 43% of manufacturers reported supply chain issues.
Labor Pains Persist As rising interest rates, poor economic conditions, and a talent shortage continue, optimism among manufacturing industry leaders remains low, according to a Sikich Industry Pulse: Manufacturing and Distribution report. More than half of manufacturers (57%) rate their optimism about business prospects over the next six months at a seven or lower on a scale of one to 10. This is similar to the same time last year—in March 2022, 53% of manufacturing leaders rated their optimism a seven or lower on a scale of one to 10.
July 2023 • Inbound Logistics 31 SyfanLogistics.com | Gainesville, GA | 855.287.8485 | 770.287.8485 SyfanLogistics.com | Gainesville, GA | 855.287.8485 | 770.287.8485
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