Glad to be back from holiday. In April we touched on how automation would affect long term ability to grow in the food industry. The last few months have put even more pressure on the ability to hire the right people. Let’s take a look today at how the unemployment rate can affect your business.

 

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What about those unemployment rates.

In the spring we talked about automation taking jobs, maybe we spoke too soon. The unemployment rate has hit a 10 year low to 4.4%. A full rebound from the great recession.

The economy is moving along nicely, but if we take a closer look at the current situation we see that America’s productivity has been hurt despite the rate of unemployment. There is a lack of properly trained employees with a large pool of people looking for work. This is where your problems come in.

In talking to a few of my food customers they see a pleasant upswing of their business. Now the challenge is getting the workers hired. Because of the pressure is off for employment at the unskilled worker level the cost of unskilled labor is rising. The fight is on for those workers. Below is the median pay as of July 17 according to PayScale. The chart below shows the going rate for people of the type you folks would hire.

By the way our friends at Amazon announced a plan to hire 50,000 workers for their distribution. So the competition is heating up for those unskilled workers.

AUTOMATION IS THE KEY TO KEEPING PACE WITH ALL THAT COMPETITION.
DO MORE WITH LESS

 

 



Issue 598 - Setting the Standards

 

We'll keep following last week's thread about Inventory Management and Profitability.   Food is a very unique industry, so making sure we measure ourselves against our industry cousins is important to understand the standard we are measured against. Got to know the other guy's score to see if you are a winner. Again focusing on inventory value and getting it right is one of the two key elements of our T&E analysis.

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