The latest Site Selectors Guild Survey shows the impact of a global talent shortage for both companies and communities. More than 40% of those surveyed believe skills shortages are now the new normal. Larry Gigerich, executive managing director of Fishers-based site selection firm Ginovus, says talent is the most important issue affecting site selection and economic development projects, particularly during the pandemic as more people leave the workforce.
Gigerich discussed the survey results in an interview on Inside INdiana Business with Gerry Dick.
The survey results show the industries most affected by talent and skills shortages are manufacturing at 83% and transportation/warehousing at 68%.
“I think you see this talent shortage, in particular, impacting these blue collar and gray collar jobs,” said Gigerich. “Those two sectors are very important to Indiana’s economy and shows that we’ve got a lot of work to do there to try to help address that shortage.”
Gigerich says businesses are implementing several strategies to bridge the talent and skills gap.
“Certainly, [companies are] really focused on wages and benefits. We’ve really seen those wages levels be pushed up. A lot of distribution center jobs now are paying $17 to $20 an hour to star, which three or four years ago was kind of unheard of,” he said. “But really, [they’re] investing in upskilling and training these employees and talking to their employees about what skills are important to them and the employers saying, ‘Here are the skills you need to advance in our organization.'”
The survey notes six states – Alabama, Georgia, Kentucky, Tennessee, Texas and Virginia – that are implementing “notable talent attraction and retention strategies.”
Gigerich says the states are using their community college systems to do a lot of training, both specifically for companies and for credentials and certifications for key industry sectors. Additionally, the states are identifying ways the higher education system can integrate with the private sector and economic development community to understand their needs.
You can read more about the survey results by clicking here.