Thu, Oct 11, 2018
This is Part 3 of a three-part series that examines how to find and leverage local labor data during the site selection process to help generate solutions during a labor shortage.
At a time when job openings for skilled labor positions hover near all-time record levels, U.S. companies are facing the unique challenges that come with labor shortages and skills gaps within certain workforces. Whether the culprit is Baby Boomer retirement, competitive wage issues, or inability to attract skilled workers to certain locations—or all of the above—we are experiencing a rare moment when the demand for labor is greater than the supply. And it has resulted in one of the most competitive labor markets in over a decade.
In Part 1 of this series, we discussed the growing concern over available skilled labor in the U.S.—especially in this current era of economic expansion—and how critical workforce development is to successful site selection analysis. In Part 2, we offered ways to paint an accurate picture of local labor supply, labor cost, and general economic climate based on detailed labor market data that’s been gathered from the most credible sources available.
Now, we look at how to generate answers to the current labor crisis. Finding innovative solutions to help resolve this dilemma requires accurate interpretations of real-time labor data combined with personal interviews with local business leadership. Communications with community leaders to develop local, out-of-the-box solutions will ultimately be a key factor in achieving long term success in your new location.
How to Create Effective Labor Solutions
It can be easy to be drawn into what’s happening economically on a national scale, but it’s more imperative to have a keen understanding of the local labor dynamics of prospective communities as they correlate to the specific workforce needs of your company. When exploring locations for a new or expanded facility, it is important to examine the community’s track record of attracting, training, and retaining the most highly-suited workers.
Once you’ve settled on a short list of communities, you should perform an in-depth analysis of available workforce development programs. At this time, all labor markets are tight, but a key differentiator is how each community responds to the challenge. For example, ask the local economic development organizations about creative partnerships that they have created for other employers with educational institutions or military installations (e.g., tapping into local recruiting programs for active duty military that are separating from service).
Your review should include the following:
Always Look Past the Data
This list shows that a thorough examination of a community’s demographic characteristics is increasingly important in the site selection process. Communities that might appear at first glance to have an abundance of workers could be at risk of suffering a workforce shortage in the years to come if they are unable to attract and retain the millennial cohort.
However, while data can provide critical insights in the availability of labor, data alone will not help a company identify the community that will best meet its workforce needs. Quantitative information must be complemented with insights that can only be gleaned from discussions with local officials, local businesses, and economic development professionals. The combination of both will lead to some of the most creative labor solutions possible.
As we have mentioned before, asking the right questions in relation to the information gathered is paramount to success. Sometimes, cutting-edge solutions to labor shortage can be uncovered with deep-diving questions:
Delivering a skilled workforce during the site selection process requires a tightrope walk (often without a net) between the science of local data and the intuition of interviews with local personnel. The smart companies today are improving coordination with local colleges and universities, stumping for K-12 programs that aren’t singularly focused on college prep but are also devoted to more career-oriented vocational pursuits, and expanding access to workforce training. Accentuating initiatives like these can have a huge impact for companies looking to identify and invest in communities with the best workforce to suit their needs. It doesn’t have to be like finding a needle in a haystack if you know where (and how) to look in today’s extremely competitive labor market.
For help with your site selection analysis or insights into your workforce, contact the Duff & Phelps Site Selection and Incentives Advisory team.
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