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supply. This is especially true for the New England region. It will take time. In short, inflation will remain an issue for business throughout 2022 and into 2023. Of course, every business will be impacted differently. However, businesses are well positioned to manage through this inflation spike for several reasons: 1. The supply chain disruptions have already begun to improve and will likely get bet- ter as demand returns to "normal" and production ramps up to meet that demand. 2. The labor markets will begin to improve as more individuals reenter the labor force. 3. Business balance sheets have never been stronger. A combination of intense ex- pense control, government support (PPP loans, industry supports, etc.) and remark- able adjustment of business models in a COVID world have left corporate balance sheets in strong condition with large stockpiles of cash. 4. While energy consumption is different for every company, business is far more energy efficient than ever before. Energy as a percentage of overall costs has been declining since the 1970s — the last time we had an energy shock. Efforts to reduce costs and improve efficiency during the pandemic have only improved the abil- ity of businesses to manage the energy price increases. 5. Corporate earnings have been incredibly resilient during the pandemic. Businesses have been able to pass increased costs through to the consumer, at least so far. Whether that remains the case will be critical to business success in 2022. 6. The Federal Reserve Bank is on the case. The Fed has a dual mandate — employment and inflation. With unemployment below 4%, the Fed now can focus on inflation. It raised interest rates for the first time on March 16 and has forecast additional rate hikes for the rest of 2022. Hopefully, this action will slow the pace of inflation. Inflation is likely to persist in 2022 and it will take some time to control it. Business has demonstrated a remarkable ability to manage through the pandemic and the ongoing bout of inflation. Businesses will have to remain vigilant and continue to adjust to inflation but are in a solid financial position to do just that. n S P R I N G 2 0 2 2 / W O R K F O R M E 2 5 C o m m e n t a r y Banking and other business services have dramatically changed in recent years. Even entry-level jobs require a level of tech training, in addition to people or "soft skills" needed on the front lines of customer service. The makeup of the workforce is also changing, with more New Mainers being trained for jobs. S TA RT I N G O N T H E N E X T PAG E » 2 6 Beyond Money Matters Careers in Maine banks offer opportunities and perks beyond recent wage hikes F I N A N C I A L S E R V I C E S