Worcester Business Journal

6 Worcester Business Journal | January 8, 2024 | wbjournal.com 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 '13 '23 '14 '15 '16 '17 '18 '19 '20 '21 '22 Manufacturing employment Note: 2023 data is still preliminary and through June 2023. Source: U.S. Bureau of Labor Statistics Worcester County manufacturing employment Filling vacancies As the number of job vacancies nationally nears 4 million, Central Mass. businesses push to find and keep workers BY ISABEL TEHAN WBJ Staff Writer F or years now, recruiting and retaining employees has been a problem plaguing businesses throughout Massachusetts. is persistent problem will be one of the core messages Brooke omson, president and new CEO of the trade group Associated Industries of Massachusetts, delivers in her first State of Massachusetts Business address on Jan. 16, where she will lay out the main concerns of AIM's 3,400 member companies. "e No. 1 issue continues to be the inability of employers to find qualified talent," omson said during a December interview with WBJ. "It's somewhat mind boggling." e healthcare and manufacturing industries have been most impacted, according to AIM surveys. omson has spent her last six months preparing to take on the CEO role by speaking with AIM member businesses, and across the board, finding enough staff to keep all operations churning is hard work. "Manufacturers are really feeling the pinch of not having qualified talent," she said. "ey can't get enough people on the floor to fill those shis, and remote work isn't really an option there." Remote work isn't as much of a possibility in these fields, and workers are often needed around the clock. Unemployment remains near historical lows throughout Central Massachusetts and the state as a whole. In November, the unemployment rate in the metropolitan areas surrounding Worcester, Framingham, Leominster- Gardner, and Athol was 3% or less, while the statewide average was 2.8%, nearly a full percentage point below the national rate. The staffing challenge is not unique to Central Massachusetts, nor is it unique to these or any industries. "We're going to have a persistent worker shortage for the foreseeable future," said Curtis Dubay, chief economist at the U.S. Chamber of Commerce, said at a Greater Boston Business Chamber event at WBUR City Space. The shortage is largely a result of the mass retirement of the Baby Boomer generation. Subsequent generations are smaller and are not filling the void caused by the retirement wave, said Dubay. Nationally, there are approximately 3.5 million more job openings than available workers. Manufacturing shortages While the workforce shortage may have appeared for the majority of industries in the wake of the coronavirus pandemic, it has been an issue for years in the manufacturing industry. "Like other manufacturers, we are not immune to the headlines of challenges to the economy and business in general," said Leslie Greis, co-owner of Kinefac, a precision metal manufacturer in Worcester. Kinefac serves diverse industries, which is helpful, Greis said, as it means the company is more balanced and can participate in growth of the industries when they do take off. Greis is optimistic about what 2024 will bring for business, despite a level of economic uncertainty. Finding qualified people on the abstract is not the problem, but rather, finding enough of those qualified people is a challenge, said Cathy Rocheleau, co-owner and director of Rocheleau Tool & Die in Fitchburg, a machinery and molds manufacturer. "That is true for both us and our vendors, as well as customers," said Rocheleau. The hiring challenge at all levels means it has a swirling impact on business, trickling up and down and impacting volume. Rocheleau has found a silver- lining advantage in its ability to help understaffed customers, she said. Rocheleau staff know how to operate the machinery they provide to customers and can step in to help run it for them, benefiting both businesses and building a service relationship. Despite the challenges, Rocheleau said the company is forecasting a 10% growth in staff for the year, paired with a 20% increase in revenue. This growth of staff at Rocheleau's fits with the regional trend. In Worcester County, manufacturing employment is at its highest level since 2018, according to data from the U.S. Bureau of Labor Statistics Quarterly Census of Employment and Wages. In 2022, the annual average monthly number of employees working in the industry was 35,715, up from 34,255 the previous year. "It's hard, but we're making it work," Rocheleau said. Feeding the pipeline Adding to the issue is the cost of living in Massachusetts, which Brooke Thomson, president and CEO of AIM Cathy Rocheleau, co-owner of Roche- leau Tool & Die (From left) Leslie Greis, co-owner of Kinefac in Worcester, examines manufacturing equipment with division sales managers Mark Russell and Patrick Brogan in this 2017 photo. PHOTO | NATHAN FISKE

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