Through the Workforce Committee and Label Leaders of Tomorrow, TLMI has prioritized the ongoing workforce crisis facing the manufacturing space. The association provides resources like hiring toolkits, scholarship funds and training tips, among others, to help foster employee retention and attract the next generation of employees for converters and suppliers.

The topic took center stage at the annual TLMI Converter Meeting, which was held March 12-14 in St. Petersburg, FL, USA. Various presenters touched upon the state of employment, both in the industry and the country at large. Plus, experts addressed the issue during the converter panel and roundtable.

“We don’t have enough labor in this country,” noted Alan Beaulieu, president and CEO, ITR Economics. “It’s not because people are sitting on the sideline, either. From Covid-19, people have come back to work. In fact, people working in the private sector is at a record high, and the number of people unemployed is the lowest we’ve seen in years. The work to population ratio is normal and better than it has been in the past, too. Looking at full employment, there are more jobs than we can possibly fill.”

The lack of available labor will translate into much higher wages in the future, Beaulieu added. Companies will battle how to get by with very little to no labor in the future. While automation, robotics, and AI will help, there is still a human component to many jobs.

Where you live impacts labor availability, too. According to ITR Economics, places like California and Illinois are seeing declining labor availability, while Idaho is soaring.

Claudia St. John, president, Affinity HR, noted 26 states have reached record low unemployment rate this year. However, eight million jobs have gone missing due to the pandemic, either from retirement, death, long covid, mothers choosing not to return to work, among other factors.

“Labor is the most critical issue for your businesses going forward,” said St. John. “Labor is a diminishing resource. For a fairly labor-intensive industry, this is a problem we need to start paying attention to.”

Seeing as how this is what St. John calls a “systemic” issue, not just for 2023-24 but for the future, “people need to be your primary focus.” 

Another issue will be the cost of labor. On a normal year, wages increase by about 2.3%. That number is 4.2% and it’s expected to rise to 4.6%.

However, compensation is not the only – or even most significant – consideration for prospective workers. Work flexibility (the ability to work from home or flexible hours), relationships, well-being, opportunity for advancement, and adequate pay and benefits are among the concerns for the modern employee. According to St. John, label converters and suppliers should invest in management training. Proper communication is critical, and management can learn skills such as how to relate to people, navigating conflict and setting expectations to foster a better work environment.

During TLMI’s converter panel, John Wynne, Fortis Group CEO, Tara Halpin, owner and CEO, Steinhauser, and Charlie MacLean, president, ASL Print FX, discussed their successes and pain points. Illustrating a bright future at the company was a common thread throughout the businesses.

“What we’ve been most focused on is showing a career trajectory,” explained Wynne. “We want to make sure our new hires are not on an island by themselves, and they have support as they enter the team. We’re proactively engaging our employees on whatever they’re thinking about. We want to make sure they see a home at Fortis. We’ve been more mindful of how to attract and retain employees, as well.”

“We try to strategically increase our headcount,” added MacLean. “Once somebody comes through your doors, what are you doing to keep them there? Showcase your culture and make sure their voice is being heard.”

Halpin has seen great success at Steinhauser, as the Kentucky-based converter boasts a retention rate of 96%. Steinhauser also saw its best year to date in 2022, and that momentum has carried into Q1 of 2023. Company culture has been imperative in generating new leads.

“Our biggest source of finding people is having a referral program,” stated Halpin. “Having people talk about how wonderful Steinhauser is around the dining room table is amazing for us. We also do tours of our plant for young people or those who need a second chance. We want to showcase how great printing is and that it can be a great career.”

The converters have also prioritized flexibility with their employees, where feasible to do so. “We’ve learned to operate well in a virtual world, with key staff working throughout the country,” commented Wynne. “We want our employees at the facility, but it’s not regimented and scripted.”

“We’re 100% back working in the plant,” added Halpin. “We allow for customer servicing and accounting to work a few days from home depending on what they need.”