Issue link: http://palletcentral.uberflip.com/i/1508599
30 PalletCentral • September-October 2023 palletcentral.com T he NWPCA has recently published an extensive study titled "Wooden Pallet Industry Workforce Challenges," by Chad Moutray, chief economist of the National Association of Manufacturers (NAM), and Anjana Radhakrishnan, associate director of workforce insights and research at the Manufacturing Institute (MI). is comprehensive analysis dives into the distinct workforce challenges within the sector, shedding light on the issues while proposing strategic solutions to enhance hiring, recruitment, and retention practices. In a historically tight labor market, the challenge to find workers in manufacturing and labor-intensive jobs was only exasperated by the pandemic. In 2022, NWPCA's Vice President of Public Affairs, Jason Ortega, took the lead in collaborating with the Manufacturing Institute's Center for Manufacturing Research on a study to identify key industry issues, test potential solutions, offer recommendations, and outline ways NWPCA can support its members. While these challenges resonate with various manufacturing sectors in the post-pandemic era, wooden pallet companies have devised and tested solutions tailored to the industry's needs, and they are shared in this article. e wooden pallet and container industry plays a pivotal role in the economy, serving as the backbone for storing, transporting, and shipping goods. With over 1.8 billion wooden pallets in daily use in the United States alone, this industry contributes a substantial $10.7 billion to the American economy. Despite its impressive status, the industry faces similar challenges to other manufacturing industries. "To unleash innovation and competitiveness in America, we must address the labor shortages hurting every sector of our economy," commented Moutray. "is study identifies a critical three-pronged solution for NWPCA to implement for its member companies through second-chance hiring, in-person workshops, and educational webcasts to fix labor shortages in the industry. e MI is proud to conduct this research for the wood pallet industry as it is a critical component to the manufacturing supply chain." Findings & Challenges e critical workforce challenges facing the wooden pallet industry are recruitment and retention. While the labor market is historically tight, the strenuous labor required of entry-level work contributes to high turnover rates. Roughly 67% of surveyed companies indicate their greatest recruitment challenge is getting applicants. In addition, 65% of companies cited better compensation elsewhere as a reason employees quit their jobs, with 56.7% stating strenuous work as another top reason. NWPCA Member Company Solutions Companies have addressed the above challenges in several ways, including expanding talent pools, improving recruitment, providing training and career development, building company culture, and other retention strategies. e following are some examples. • Expanding talent pools: NWPCA members PalletOne, Challenger Pallet, PalTech, Conner Industries, Kamps Pallets, and 48forty actively recruit from incarcerated and second- chance populations. 48forty also partners directly with veterans' organizations, such as Military Hire. Bettaway has established a strong collaboration with the Rutgers Center for Adult Autism Services to hire workers with disabilities. • Providing training and pathways for career development: Member companies have begun providing training and career development opportunities to address workforce challenges. Conner Industries and Kamps Pallets make a point to emphasize long-term opportunities and internal career paths wherever possible. Nearly 30% of survey respondents report they are creating or expanding internal training programs, with 11% collaborating with educational institutions on skills certification programs in response to workforce issues. • Building company culture and retention: Kamps Pallets, J. F. Rohrbaugh, and 48forty Solutions have emphasized workplace flexibility and company culture to attract and retain more employees. Among other companies, PalletOne and Conner Industries report regularly reviewing and prioritizing workplace safety. Members are also increasing compensation, investing in automation where possible, providing more workplace flexibility, and expanding benefits. For example, Challenger Pallet, PalTech, and PRS Group Wooden Pallet Industry Workforce Challenges Study Addressing Workforce Challenges in the Wooden Pallet Industry: NWPCA and MI Collaborative Study