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Cities With the Highest Wages for New Hires

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Archives, Global Trade Daily, Special Reports, State Spotlight

Cities With the Highest Wages for New Hires

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As the U.S. economy enters a new phase in its recovery from COVID-19, businesses are adding new positions faster than they can fill them. A combination of rapidly expanding job openings, a smaller labor force, and more generous unemployment benefits is pushing wages higher, especially in fields like leisure and hospitality that historically have some of the lowest wages for new workers. According to the latest data from the U.S. Census Bureau on new hires, average monthly earnings was $3,266 in 2020—a figure that varies widely by industry, job, and location.

New hires in the information sector—which includes many of the country’s computer programming and technology jobs—were paid the most, at $7,060 per month or nearly $85,000 annually. In comparison, all information workers (including new hires and existing employees) were paid an average monthly wage of $8,825. New employees in the mining, oil and gas, and utilities sectors also commanded strong wages when compared to new hires in other fields.

Despite experiencing strong wage growth at the start of 2021, new hires in accommodation and food services have historically earned the lowest average wages, at just $1,458 per month or about $17,500 annually. Unsurprisingly, industries with low wages overall also pay new hires less, but the gap between new hire pay and all worker pay ranges from a low of approximately 11% in the agricultural sector to over 50% in fields like management, education, and the arts.

In addition to occupation and industry, location has significant direct and indirect effects on real wages. New employees in certain areas might command different wages for a variety of reasons, but differences in cost of living affect how comfortable it is to live on a given wage. When taking cost of living into account, new hires in Washington and Massachusetts earned the most in 2020, at $4,045 and $3,793 per month respectively. Other states with high adjusted wages for new hires included New York and Connecticut. Conversely, workers in Montana, Hawaii, and Idaho earned the least after adjusting for living costs.

To find the metropolitan areas with the highest wages for new hires, researchers at Self analyzed the latest data on new hires from the U.S. Census Bureau, cost-of-living data from the U.S. Bureau of Economic Analysis, and home price data from Zillow. The researchers ranked metro areas according to the cost-of-living adjusted monthly earnings for new hires in 2020. Researchers also calculated the unadjusted monthly earnings for new hires, the unadjusted monthly earnings across all workers, median home price, and cost of living.

To improve relevance, only metropolitan areas with at least 100,000 people were included in the analysis. Additionally, metro areas were grouped into the following cohorts based on population size:

-Small metros: 100,000–349,999

-Midsize metros: 350,000–999,999

-Large metros: 1,000,000 or more

Here are the large metros with the highest wages for new hires.

Metro Rank   Average monthly earnings of new hires (adjusted) Average monthly earnings of new hires (actual) Average monthly earnings across all workers (actual) Median home price  

Cost of living (compared to national average)

 
San Jose-Sunnyvale-Santa Clara, CA     1     $5,339     $6,764     $11,643 $1,364,273 +26.7%
Seattle-Tacoma-Bellevue, WA    2     $4,541     $5,199     $7,058 $627,290 +14.5%
San Francisco-Oakland-Berkeley, CA    3     $4,358     $5,862     $8,583 $1,235,705 +34.5%
Austin-Round Rock-Georgetown, TX    4     $3,957     $3,929     $5,550 $441,931 -0.7%
Denver-Aurora-Lakewood, CO    5     $3,649     $3,802     $5,102 $517,395 +4.2%
Hartford-East Hartford-Middletown, CT    6     $3,637     $3,728     $5,666 $274,468 +2.5%
Houston-The Woodlands-Sugar Land, TX    7     $3,614     $3,675     $5,577 $241,698 +1.7%
Washington-Arlington-Alexandria, DC-VA-MD-WV    8     $3,594     $4,219     $5,566 $498,649 +17.4%
Raleigh-Cary, NC    9     $3,571     $3,432     $4,891 $327,048 -3.9%
Dallas-Fort Worth-Arlington, TX    10     $3,549     $3,592     $5,284 $289,582 +1.2%
Charlotte-Concord-Gastonia, NC-SC    11     $3,535     $3,337     $4,561 $281,335 -5.6%
Boston-Cambridge-Newton, MA-NH    12     $3,463     $4,000     $5,864 $563,149 +15.5%
Nashville-Davidson–Murfreesboro–Franklin, TN    13     $3,449     $3,256     $4,593 $320,818 -5.6%
Pittsburgh, PA    14     $3,443     $3,181     $4,776 $185,063 -7.6%
Atlanta-Sandy Springs-Alpharetta, GA    15     $3,408     $3,336     $4,998 $280,038 -2.1%
United States*    –     N/A     $3,266     $4,783 $281,370 N/A

 

*Average earnings are weighted averages (by employment) of state-level data

For more information, a detailed methodology, and complete results, you can find the original report on Self’s website: https://www.self.inc/blog/Cities-With-Highest-Wages-For-New-Hires

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Archives, Global Trade Daily, Site Selection

EDUCATION PROGRAMS ARE CRITICAL TO ARMING THE NEXT-GENERATION MANUFACTURING WORKFORCE WITH THE REQUIRED SKILLS

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Whether you prefer to call it the Fourth Industrial Revolution or Industry 4.0, there is no denying that industry is getting smarter. 

Summarized as the ongoing automation of traditional manufacturing and industrial practices using smart technologies, it is a seemingly unstoppable trend that has transformed enterprises, captured imagination and generated value. 

According to McKinsey, Industry 4.0 has the potential to provide returns of $3.7 trillion to manufacturers and suppliers around the world by as early as 2025. 

However, a caveat is that today only one in three companies are capturing this value at scale. 

“Approaches are dominated by envisioning technology development going forward rather than identifying areas of largest impact and tracking it back to Industry 4.0 value drivers,” McKinsey adds in its report, “Industry 4.0: Capturing Value at Scale in Discrete Manufacturing.”

“Further governance and organizational anchoring are often unclear. Resulting hurdles related to a lack of clarity regarding business value, limited resources and an overwhelming number of potential use cases leave the majority of companies stuck in ‘pilot purgatory.’

The report identifies several steps organizations can take to make the most out of the opportunities created by Industry 4.0 and its associated technologies. 

Chief among them is investing in human capability to leverage such innovations. 

Last year, the U.S. National Skills Coalition (NSC) reported an “invisible drag on productivity” created by an alarming digital skills gap. In the manufacturing sphere, one in three workers are thought to have no or limited key digital skills, according to research carried out by the Organization for Economic Cooperation and Development. 

Given that the NSC defines “limited digital skills” as an ability to complete simple tasks with a generic interface and few uncomplicated steps (like sorting emails into different folders), it is clear that a large portion of the current manufacturing workforce requires serious upliftment in digital literacy or risk being displaced by more tech-savvy recruits.

Education is the answer

For those about to join the manufacturing workforce, learning digital skills has never been more important. 

This rings especially true against the current coronavirus backdrop, with many industrial businesses having to make cutbacks as a result of drops in business and legal mandates to close as part of pandemic-induced societal lockdowns. 

It is something tech giants are responding to. For instance, in June 2020, Microsoft announced plans to provide free digital skills training to 25 million people around the world in response to predictions relating to a surge in unemployment. 

The speed and extent of economic recovery in part rests on how much productivity can be gained from Industry 4.0 activities, manufacturing being a key economic contributor to communities across the United States.

Education is a key enabler of productivity growth, be it through programs for upskilling current workers or training initiatives designed to ensure new generations of jobseekers are armed with the knowledge they need to hit the ground running.  

In Charlotte, North Carolina, this holds the key to unlocking the manufacturing sector’s bright future. The industry has grown here at twice the national average over the past five years with four clusters driving activity–machinery manufacturing, advanced materials, automotive manufacturing and energy manufacturing. 

“There are many synergies among these clusters,” explains Antony Burton, VP of Economic Research at the Charlotte Regional Business Alliance. “For example, 50 advanced materials firms in the textiles, plastics and composites industries serve the automotive industry in the Charlotte region which requires strong, durable, lightweight materials. 

“There is also synergy between the automotive and energy industry. Arrival, a leading electric vehicle manufacturer, has announced its North American HQ in Charlotte along with two micro-factory production facilities in the bi-state region.”

An enormous lithium deposit also feeds the area’s manufacturing scene. One of the largest such resources in the country, it has lured in major players in the lithium battery value chain and is supplemented by leading automotive and energy research assets at the Charlotte-based University of North Carolina. In short, the region is gearing up to lead and benefit from the transition to electric vehicles. This means new skills will be required to fully exploit the opportunity. 

“Manufacturing enterprises increasingly require a workforce with advanced industrial technology skills that include knowledge of mechatronics, robotics, and computer-aided machining as low-skill jobs are increasingly automated,” Burton adds. “In addition, manufacturing enterprises will require more engineering expertise. The Carolinas have over 7,000 graduates in engineering fields every year to help supply this pipeline of talent.

“It is crucial that the education programs continue to evolve to the needs of industry. Talent continues to be a top factor for location decisions, and the labor market has remained very tight throughout the country despite relatively high unemployment rates. To help provide this talent, along with the University of North Carolina, which has 600 engineering graduates, we have a strong community college system made up of 10 community and technical colleges with a total of 30 locations throughout the region.”  

Burton also cites the North Carolina Motorsports and Automotive Research Center as a unique training asset. Here, the next generation of automotive engineers are trained through a series of partnerships with key industry manufacturers, collaborations which conduct research and drive innovation in the sector. 

COVID-19, without doubt, has presented obstacles to delivering the sort of hands-on training the manufacturing sector requires. However, Burton points to virtually hosted events and research conducted by The Charlotte Regional Business Alliance as examples of its ongoing support for the industry.

“With state and local economic development partners, we organized STREAM 2021, a supply chain tradeshow which brought together manufacturers across the region to learn from industry experts and to help manufacturers find local suppliers,” he says. “In February of 2021, this inaugural event created a virtual opportunity for local manufacturers and suppliers to network and potentially work together to restore supply chains, especially in a time when COVID-19 has disrupted traditional supply chains. 

“Our economic research team also completed a deep-dive analysis of the manufacturing industry in the region and a manufacturing labor and wage survey. The report, “Manufacturing in the Charlotte Region,” provides business intelligence to the local community and to prospective companies.”  

Due west, in Kansas, Franklin County represents one of the top markets in the country for industrial and business development thanks to easy access to Interstate 35, Interstate 70, Logistics Park Kansas City and the Kansas City International Airport, as well as inclusion in the Foreign Trade Zone.

Paul Bean is executive director of Franklin County Development Council, a body which helps businesses to establish themselves and thrive in the area. As well as the digital skills identified by Burton, Bean highlights the critical importance of attitudinal traits sought by his association’s membership base, and how Franklin County Development Council helps them to find the right people.  

“Soft skills are the number one request,” he says. “They report to us that they can train folks but need people that show up, think critically, and are willing to work.

“We work closely with our area school districts, community colleges and private universities to provide programming to support our manufacturing industry. For example, we are just kicking off an online program through Nepris, which helps connect educators and learners to industry professionals. We’re also beginning the process of becoming an ACT Work Ready Community, and work with local higher education institutions on specific programs for new certifications and learning refreshment.”  

Charlotte and Franklin County are just two examples of regions investing in the next-generation workforce. Activity is also taking place at a federal level, supported by former President Trump’s pledges to prioritize homegrown industries. For example, June 2020 saw the launch of a new workforce training grant with several hundred million dollars for states to access. Unveiled by then Education Secretary Betsey DeVos, the scheme supports job training for in-demand occupations and entrepreneurship development. 

“America’s colleges and universities are a national treasure, but it is time for them to reinvent themselves and to be more responsive to the needs of their students and local communities,” DeVos said at the time of the launch. 

Through a mix of national incentives underpinned by bustling activity and support driven at a regional level, the manufacturing labor force has every chance of being future-proofed. Education lies at the heart of this transition and must continue to be substantially invested in if vital American industries are to remain competitive on the global stage.

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“Make It Better: A Blueprint for Manufacturing in Northeast Ohio” Launches, Offering New Vision and Strategy for Region

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Blueprint initiative draws on insights from more than 150 of the region’s top industry leaders, nonprofits, community groups, educators and more to develop a vision for Northeast Ohio: to lead the world in smart manufacturing

The Manufacturing Advocacy and Growth Network (MAGNET), together with more than 100 champions, announced today the launch of “Make It Better: A Blueprint for Manufacturing in Northeast Ohio.”

Bringing together the insights of hundreds of manufacturing CEOs, community leaders, business leaders, academics, workers, students, and nonprofit leaders, the Blueprint offers a vision for the future of manufacturing in the region: one that revitalizes Northeast Ohio as a leader in smart manufacturing, creates thousands of jobs, and transforms the industry.

The Blueprint launch will take place on Tuesday, June 8th, at MAGNET’s future home: 1800 East 63rd Street in Cleveland (the corner of East 63rd Street and Chester Avenue). Starting at 11:30 AM, the event will include presentations from some of the region’s leading manufacturing companies and organizations.

“Manufacturing in Northeast Ohio has had its ups and downs, but the fact of the matter is the region remains a powerhouse that’s poised for growth,” said Dr. Ethan Karp, President and CEO of MAGNET. “We’ve got all the pieces in place, but to make it happen we’ve got to bridge the talent gap, adopt cutting-edge technologies, and embrace innovation. While no one organization can change the course of our industry, it’s our hope that the stories, expertise, and detailed strategies presented in this Blueprint can show us all what’s possible in Northeast Ohio – and encourage us to work together to build a brighter future.”

Manufacturing in Northeast Ohio constitutes nearly half of the local economy, directly and indirectly supports one million jobs and makes up 38% of the state’s GDP. But it faces persistent challenges: namely, a talent gap and the slow adoption of innovative technologies. In January 2020, almost 60% of manufacturers in the region said they couldn’t find the skilled workers they need to grow – an obstacle that even widespread COVID-19-related layoffs didn’t solve. Meanwhile, the Ohio MEP 2020 Manufacturing Survey found that investing in new technologies is near the bottom of the priority list for the vast majority of Northeast Ohio manufacturers.

The Blueprint addresses these and other key issues, grouping its insights and solutions around four key areas: talent, technology transformation, innovation, and leadership. The hope is that stakeholders throughout the region can use the report to guide collaborative efforts to solve these pressing problems.

“Manufacturing is a critical driver of our regional economy.  Accelerating the pace of technological transformation and the growth of manufacturing career engagement will drive more equitable growth throughout our region, putting our region and all of our residents in a better position to prosper,” noted Bill Koehler, CEO of Team NEO. “The Blueprint allows us to pioneer holistic, manufacturing-led workforce solutions, creating a positive force in Northeast Ohio by building pathways to reach diverse and untapped talent.”

In the weeks and months to come, manufacturers and organizations throughout the region will be taking steps to bring the Blueprint to fruition. For instance, the Manufacturing Innovation Council – comprised of many of Northeast Ohio’s leading companies – has identified key action areas to help bring the Blueprint to life. Interested parties can also tap into resources to help with change efforts at makeitbetterohio.org and participate in quarterly champions calls to stay apprised of new ideas.

“Making products that matter is embedded in this region’s DNA given our rich history as a center of industrial innovation that powered America,” said Baiju R. Shah, President and CEO of the Greater Cleveland Partnership and leader of the Cleveland Innovation Project. “Through the Blueprint, we now have the shared vision and commitment to build on that foundation and become the nation’s smart manufacturing capital. We look forward to working together with MAGNET, manufacturing leaders, and many wonderful organizations to realize that vision.”

Added Karp: “The pandemic showed the world Northeast Ohio’s manufacturing potential. After all, we have the manufacturers, big and small. We have the talent. We have the know-how. We have the educational institutions. We have the will. And we have a hundred-year history of bouncing back and getting stronger after every single challenge. This is Northeast Ohio. This is our backbone. This is our heart and soul. We hope that with the help of this Blueprint, we can tap into that – together – and lead the world.

The Blueprint and its partner organizations can be found at makeitbetterohio.org.

__________________________________________________________

About MAGNET: The Manufacturing Advocacy and Growth Network

MAGNET’s mission is to play a vital role in growing the manufacturing sector in Northeast Ohio, thereby creating more vibrant communities, increasing economic inclusion, and building a stronger middle class in our region. Since 1984, MAGNET has offered a wide range of hands-on consulting services to manufacturers as part of the NIST Manufacturing Extension Partnership (MEP) and Ohio MEP. These services, which include product and process development, workforce initiatives, start-up support, and lean/operations consulting, help companies grow locally and compete globally.

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Archives, Departments, Dispatches, Global Trade Daily, Warehousing

Certificate Addresses Staggering Demand for Logistics Workers

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Prologis Inc., a San Francisco-based global leader in logistics real estate, recently partnered with the Association for Supply Chain Management (ASCM) to create a new industry certificate that aims to help develop the next generation of talent for the logistics industry.

According to the U.S. Bureau of Labor Statistics, warehouse employment reached the highest level ever recorded with 1.25 million workers in 2020, and the transportation, warehousing and related fields are projected to have 600,000 new openings by 2029.

“The need for skilled logistics workers has never been greater, particularly as warehousing and logistics operators strive to meet demand driven by faster fulfillment and higher inventory levels,” explains Prologis Chief Legal Officer and ESG head Edward S. Nekritz.

Adds ASCM Foundation Vice President Dan Schoenfeld: “There was a skills gap in the supply chain way before COVID-19 was even part of the lexicon. Now the pandemic has further exacerbated the need for upskilling to an unprecedented level. This partnership with Prologis aligns perfectly with our foundation’s mission of creating a better world through the supply chain by attracting more people to the field and preparing them for rewarding career opportunities.”

 As part of the digital learning and development program, which is expected to launch in the third quarter of this year, students will acquire foundational skills, gain an understanding of the logistics sector and, after successfully passing an exam, receive completion certificates, digital badges and credentials for their resumes.

The online courses were developed in collaboration with several Prologis customers including NFI and Geodis. Through its global Community Workforce Initiative (CWI), Prologis has pledged to train 25,000 individuals for jobs in transportation, distribution and logistics by the end of 2025. 

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Archives, Commentary, Global Trade Daily

Rising Trends for Companies Looking at Digital Avenues for Business

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Business in the COVID Pandemic – Companies and Individuals Turning To Digital Avenues

The COVID-19 pandemic has challenged the entire framework of worldwide economic and social structures. People and businesses must work out solutions for surviving in an environment where staying at home has become critical for safety and health. Technology and digital avenues are now a practical way to serve customers, manage operations, and earn profits. Working online has become a viable option for businesses and professionals alike, regardless of their size. Here’s a closer look at the survival strategies adopted during the pandemic.

How the Corporate Culture Is Adapting

Companies in different sectors and worldwide locations have adapted by focusing on the accelerated digitization of their operations by at least three to four years. In all internal and external processes ranging from organizing supply chains of raw materials to production and supplying to customers – wherever possible, larger investments are being made in automation and contactless performance.

The Stress Is More on Digitally-Enabled Products

Adapting their portfolio and offering a more comprehensive range of digital and digitally-enabled products and services to maintain their client base is another survival strategy companies have adopted. Statistics indicate an acceleration of around seven years in how products are researched, developed, and produced. Offering online and doorstep delivery is also a practical option to encourage sales and stay competitive.

Several sectors like financial services, professional services, healthcare, and pharmaceuticals report an exponential hike in demand compared to consumer packaged goods (CPG). Some excellent examples include developing channel manager apps, digital marketing and SEO services, online coursework, and educational products.

Overcoming Resistance To Change Has Become Critical for Survival

Issues with altering the existing organizational structure and integrating technology have impeded efforts to make changes before the pandemic. The reasons cited included the possibility of clients being disinterested in digitization and the higher risk of data breaches and identity theft. However, top executives not prioritizing the transition or being unwilling to allocate the necessary funding have been the primary reasons.

The pandemic has created an environment where companies must adapt or fail. Implementing the necessary changes becomes critical considering that competitors are opening up to newer and more streamlined operational techniques. It comes down to adapting or going out of business. Catering to customer demand with stress on offerings that comply with the new health and hygiene requirements has necessitated the adoption of digital avenues for conducting business.

Companies Are Offering WFH Options

Companies are now open to raising the costs of hiring trained personnel to run operations and purchasing advanced equipment to serve customers. That includes software and hardware complete with cutting-edge solutions to prevent data breaches and provide secure platforms for conducting transactions and sales. Cutting back on in-office teams and providing work-from-home options seems to be the new normal.

Organizations and the people working in them have recognized the positives of remote working options before the pandemic. From the business perspective, operational costs and overheads are lower while productivity levels are higher. Since the COVID-19 lockdowns, employees are being encouraged to work from home. Some are also provided with the necessary equipment, such as laptops and secure Wi-Fi connections to safeguard intellectual property and company data. Video conferencing and document sharing apps allow teams to coordinate efforts and keep up with their deliverables.

Hiring Remote Teams Is an Economical Work Process

Hiring the services of online freelance contractors to keep the company operational is also the way to go. Several aspects can function with the assistance of a remote notary, accountant, SEO, digital advertising and marketing specialist, bookkeeping, attorney, data analyst, and various others. In the past, executives would take up to 12 months or more to develop and implement remote working solutions, but this timeline has been cut down to as low as a couple of weeks during the pandemic.

Digitization Has Opened New Employment Opportunities.

The demand for digital services and professionals providing those services has led to more people turning to the industry to find jobs. The COVID pandemic has resulted in the loss of an estimated 114 million jobs, with close to $3.7 trillion lost in labor income. Although people are returning to work in 2021, the International Labour Organization predicts that global working hours are unlikely to return to their pre-pandemic numbers.

The workforce must look for other avenues to earn a livelihood, considering that close to 97,966 companies have closed down permanently in the US alone. Digital marketing has emerged as an industry that has the potential to absorb a large section of the newly available talent. As long as they have a computer and a fast and reliable internet connection, any person can train and start working in this sector. Not only are there lots of accredited courses available for professionals wishing to work in the digital sphere, but there are also several websites and social media platforms offering access to jobs and employment.

The New Normal and Digitization Is Here to Stay

The COVID-19 pandemic is permanently altering how companies, consumers, and employees live and work. Experts predict that even after the crises have passed, the reliance on digital avenues for conducting business and working will continue. The protocols and behavior adopted during the pandemic are likely to last, and organizations must evolve to function according to customer demand. Employing digital channels has become indispensable in providing a holistic customer experience and remaining competitive in their respective industries. Organizations may also have to overhaul their long-term visions for business strategies and objectives to accommodate digital integration.

Over time, as digital solutions advance and innovations emerge, companies may have to employ them to deliver more customer-centric products and services. Adopting suitable approaches while experimenting with new technology is critical for survival. From the individual professional’s perspective, digital avenues could prove to be a viable source of primary income or even a side hustle to make some extra money to supplement their earnings.

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3pls, Archives, Global Logistics, Global Trade Daily

The Labor Shortage is the Next Major Issue Facing the Supply Chain

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The labor shortage is fast becoming the next significant problem for the supply chain. Many frontline warehouse employees fall into the category of shift workers who have yet to return to the workforce, even as the economy bounces back, and the demand for workers still continues to climb. While these critical jobs remain difficult to fill, employers are focusing on optimizing the labor force they have and introducing incentives and employee recognition programs to keep the team they do have engaged and happy. 

A particularly painful category of workers that’s in short-supply and high demand is supply-chain planners. Now, in addition to having to manage the current logistics issues and shortages, employers are having to figure out how to fill the position that would have traditionally helped alleviate some of these bottlenecks or re-allocate duties to current employees who are likely already overworked. With job openings close to a 20-year high, supply chains are struggling to keep up with a new boom in consumer demand.1  

The labor shortage within the supply chain will ultimately end up costing manufacturers and the end customer more money as distribution teams continue to be backlogged and understaffed. While manufacturers and suppliers work to hire and train as quickly as possible, many are utilizing supply chain visibility tools to alleviate the strain of labor shortages within operations. With much of the strain falling on frontline employees, real-time warehouse visibility is more important than ever.

Industries Where Labor Shortages are Having the Greatest Impact 

Several companies, from fast food chains like Chipotle Mexican Grill, Inc. to chicken producer Pilgrim’s Pride Corp., and MGM Resorts International say they can’t find or even attract enough workers.2 In addition to the hospitality and warehousing industry suffering labor shortages, the automotive industry is also experiencing their own shortages due to reduced demand due to the chip crisis.3 Short-term shutdowns to sanitize facilities combined with difficulties hiring workers continues to cause strain and slow down growth for manufacturing.4 Because of this, many companies are now turning to labor management visibility for a better understanding of how to utilize their existing workforce more efficiently.  

Labor Management Solutions Producing Measured Success 

When short-staffed, it’s imperative to make smart decisions about the different tasks and activities being allocated to each employee inside the warehouse. Incorporating a warehouse visibility tool focused on labor management allows employers to see how the workforce is performing at the company, region, warehouse, shift or any other level defined in real-time. Having the ability to drill-down into the metrics and pinpoint measured versus unmeasured work issues helps identify the next steps needed to optimize labor utilization and productivity.  

Having a labor management visibility solution in place also provides real-time insight into those employees that are going above and beyond their assigned job functions. Employee recognition, pay for performance, and high-performance incentives for employees is more important than ever before to keep the existing workforce satisfied as well as engaged with their work. 

In a recent Rebus by Longbow customer case study, it was reported that the implementation of a labor management visibility solution enabled labor sharing across multiple sites, which reduced the need for two full-time equivalent employees per site as well as most of the overtime hours. This ultimately equated to 9% in labor savings equating to $1.3 million.5 

Intelligent Labor is the New Normal  

In the era of the “New Normal”, many of the former workforce remains unable to return to work due to health fears or the inability to find child or elder care. Because of this, it’s more important more than ever to utilize warehouse visibility and labor management tools to optimize productivity. The important thing to remember is to find an appropriate labor management system that is built for measuring tasks on the floor, not just reporting on them.  

With this enhanced real-time visibility, warehouse operators will be able to see where they can reallocate their labor force on the spot to maximize daily supply shipments in order to fulfill more orders each day.  

___________________________________________________________________

Alex Wakefield is the CEO of Longbow Advantage with over 20 years of experience in supply chain technology and implementations including leadership roles at IBM and Blue Yonder (formerly JDA/Red Prairie). His focus is on enabling distribution teams to better manage, leverage and action their data across the supply chain through the use of Rebus, the only real-time warehouse visibility and labor platform purpose-built for the supply chain. 

 ____________________________________________________________________

Sources: 
1: https://www.bloomberg.com/opinion/articles/2021-04-30/labor-shortage-rising-costs-supply-chain-hiccups-hit-manufacturers    
2: https://www.bloomberg.com/news/articles/2021-05-06/companies-warn-of-u-s-labor-shortages-economists-call-temporary  
3: https://www.autonews.com/manufacturing/plants-big-worry-missing-demand-because-chip-crisis  
4: https://www.industryweek.com/the economy/article/21156586/manufacturing-in-february-rapid-growth-checked-by-supply-hurdles  
5: https://meritmileinc-my.sharepoint.com/:b:/g/personal/jsternal_meritmile_com/EV7ZODTg1mhKrTWuE31cOw0BVB2L85t–qJckupxvHaWPg?e=Uu1KM0 

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How to Be a Leader, Not Just a Manager, Even Working from Home.

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Nothing in the business is as valuable as the people, and nobody can help you more than an empowered team of like-minded people. Over the past twenty years, we had a few turning points for our company when we had to make significant changes to catch up with the world around us. Every time, our team helped us, supported us, and collaborated with us to make these changes happen. I could not even imagine doing all that on my own.

This is how I learned that leaders lead by inspiring others, while managers focus on what needs to get done on a daily basis. Both are needed, but only one will truly inspire your team to move through even the hardest times.

In the beginning, a lot of our team had to work nights and long weekends, just like any other start-up. Our management team always stayed with the teams even if we could not help them professionally. I always made sure that the team had something to eat (as simple as getting them a take-out or ordering a pizza) or could get home if buses were no longer going (driving them myself or getting them a cab). We lead by example, not just by telling our team what to do.

As a result, in 2008, our CTO and a few trusted employees opened our first US-based office. These people left the comfort of their established lives at home, they encountered a profoundly changing environment around them, and they practically had to travel halfway around the globe. However, they did it for us and with us. Some of our employees practically became part of the family.

How did this all happen? Through connectedness. When it comes to connectedness, it is essential that people feel that they are still working together even when no one is around.

Here are 5 tips to lead your team to a place that feels truly connected:

1. Make sure that everyone understands the common goal. Think of that as providing your employees with a North Star to guide them. It is the only way to align their efforts and your company’s vision and goals.

2. Make sure that they have enough means to communicate effectively. During COVID-19, we introduced multiple tools for our employees: forums, corporate discord servers, group chats on Skype, Zoom, Google Meet, etc. There are hundreds of products available on the market right now, so choose what works best for your business.

3. Ensure that your teams have at least one daily meeting where they share what they did yesterday to make you all closer to the goal; what is their commitment for today, and are there any obstacles on their way right now?

4. Visualize! Visualization is one of the most effective tools to keep everyone connected—Burndown charts, shared documents with progress, kanban boards, etc. There are plenty of instruments for visualization that allows everyone to keep track of what is going on. And that helps them to feel connected to the company and each other.

5. Make sure that information is being spread around. When people are working from home, you lose osmotic communication. So find ways to connect them. We introduced things like a monthly newsletter and town hall meetings. We share all the news and everything we think is essential in a newsletter. And then we assemble everyone at a general meeting, where anyone can ask management anything. Or share their information with everyone if they want to. That helps a lot.

Above all, ask questions and listen to your team. As leaders, you’re there to motivate, so listen hard and often.

__________________________________________________________________

Gehtsoft USA LLC is a software development and agile consulting company from Raleigh, NC. For more than 20 years, we help businesses to develop and support their products, resolve their IT problems, and do the Agile transformation of their business processes. Our technical experts, certified technical trainers, professional scrum masters, and product owners have a unique skill set and experience.

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Archives, Global Trade Daily, Special Reports

Best-Paying Cities for Recent College Grads

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As college education costs climb higher, landing a well-paying job after graduation is even more important than ever before. Over half of young adults who attended college incurred some debt, with typical levels of student loans in the range of $20,000 to $25,000 post-graduation. According to the latest data from the Bureau of Labor Statistics (BLS), median earnings for recent college graduates working full-time is approximately $50,000 per year. However, the number varies widely by city, college major, and occupation, among other factors.

The good news is that while the median wage for recent graduates (adjusted for inflation) has fluctuated over the last several decades, the number hit a new peak last year, climbing by nearly $4,500 from 2019 to 2020. What’s concerning is that the $50,000 annual wage figure for 2020 is from survey data collected in March of last year, so it does not adequately reflect the impact of the COVID-19 pandemic. College graduates seeking employment last spring faced the worst job market since the Great Depression, and it remains to be seen how wages will be affected in the coming years.

Attaining a bachelor’s degree boosts earning potential by a large margin—median annual earnings of recent college graduates is about $20,000 more than workers of the same age with only a high school diploma. However, some fields of study pay off much more than others. The highest-paying majors for recent college graduates are computer science and several types of engineering degrees, such as chemical, computer, and electrical. Median earnings for recent graduates within these majors is $70,000 per year, or about 40 percent higher than the typical graduate.

While academic major is one of the strongest predictors of earnings post-graduation, so too is location. Additionally, large differences in cost of living across locations affect how comfortable it is to live on a given wage and how easy it is to pay off loans. At the state level, recent graduates working full-time in North Dakota and Montana have the highest median earnings after adjusting for cost of living, at $53,751 and $51,337, respectively. Despite being one of the lowest-cost states to live in, New Mexico also reports the lowest cost-of-living adjusted median wage for full-time recent graduates, at just $36,224 per year.

To find the best-paying metropolitan areas for recent college graduates, researchers at Self analyzed the latest earnings data from the U.S. Census Bureau and cost of living data from the U.S. Bureau of Economic Analysis. The researchers ranked metro areas according to the cost-of-living adjusted median earnings for full-time working college graduates aged 22 to 27 with a bachelor’s degree only. Researchers also calculated the unadjusted median earnings for recent graduates and the recent college graduate proportion of the population. Only the 50 largest metropolitan areas were included in the analysis.

Here are the best-paying U.S. metros for recent college graduates.

Metro Rank   Median earnings for recent college grads (adjusted)    Median earnings for recent college grads (actual)    Recent college grad proportion of the total population    Cost of living

 
San Jose-Sunnyvale-Santa Clara, CA     1      $56,827 $72,000 3.3% 26.7% above average
St. Louis, MO-IL     2      $53,274 $48,000 2.1% 9.9% below average
Kansas City, MO-KS     3      $52,802 $49,000 2.3% 7.2% below average
Pittsburgh, PA     4      $52,706 $48,700 2.8% 7.6% below average
Detroit-Warren-Dearborn, MI     5      $52,466 $50,000 2.1% 4.7% below average
Cleveland-Elyria, OH     6      $52,280 $47,000 2.1% 10.1% below average
San Francisco-Oakland-Hayward, CA     7      $52,045 $70,000 3.4% 34.5% above average
Columbus, OH     8      $51,856 $47,500 2.7% 8.4% below average
Dallas-Fort Worth-Arlington, TX     9      $49,407 $50,000 2.3% 1.2% above average
Austin-Round Rock, TX     10      $49,345 $49,000 3.2% 0.7% below average
Houston-The Woodlands-Sugar Land, TX     11      $49,164 $50,000 1.9% 1.7% above average
Providence-Warwick, RI-MA     12      $48,853 $49,000 2.5% 0.3% above average
Chicago-Naperville-Elgin, IL-IN-WI     13      $48,638 $50,000 2.8% 2.8% above average
Minneapolis-St. Paul-Bloomington, MN-WI     14      $48,591 $50,000 3.0% 2.9% above average
Cincinnati, OH-KY-IN     15      $48,565 $44,000 2.4% 9.4% below average
United States     –      N/A $45,000 2.1% Average

 

For more information, a detailed methodology, and complete results, you can find the original report on Self Financial’s website: https://www.self.inc/blog/best-paying-cities-for-recent-college-grads

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Archives, Global Logistics, Global Trade Daily

Why Upskilling in Manufacturing Is Key to Bridging the Skills Gap

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Before COVID-19, manufacturers understood the importance of continuously training their workforce.

They planned to spend a collective $26.2 billion in 2020 to help employees improve their existing skills, and around three-quarters said they were either launching or expanding workforce training efforts. The pandemic put many of those investments on hold — but it also rearranged their priorities. As we emerge into the fated “new normal,” training must reevaluate any slated reskilling and upskilling efforts.

So what’s the difference between reskilling and upskilling? Reskilling moves someone laterally between different jobs so they’re competent at multiple skills. On the other hand, upskilling moves someone vertically through a process of gaining skill and specialization around the job they have currently or the career path they’re following. It’s the difference between training an employee broadly versus deeply.

Both approaches are imperative coming out of the pandemic. But with many changes happening at once in manufacturing, upskilling, in particular, can help employees adapt so they can continue on their pathways successfully, ensure efficiency, and achieve operational excellence.

The Post-Pandemic Manufacturing Workforce

The pandemic proved that it’s time to commit to digital transformation and ensure internet-connected and data-driven technologies steer all aspects of production and links within a supply chain.

Technology will play a drastically larger role in manufacturing in 2021 and beyond as companies strive to make themselves more dynamic, efficient, and resilient. The Fourth Industrial Revolution has clearly arrived in the form of artificial intelligence, robotics, and analytics, and it’s up to the post-pandemic workforce to use these transformative technologies effectively.

At the same time, it will be up to manufacturers to prepare them. As production becomes more technical, it creates a skills gap in manufacturing — one that’s far too wide to fix with recruiting alone. For workers to make the most of technologies such as IoT or augmented reality, they will need to build on their existing skills and acquire new ones.

Manufacturers that apply upskilling and reskilling efforts intelligently— and succeed at both — can expect their workers to make a bigger impact in less time. Alternately, factories that update technology without updating their workforce are only courting failure. And for those few manufacturers not widely embracing new technologies, a skilled workforce will be crucial for surviving in the post-pandemic economy.

The tools garner all the attention, but it’s the users who really matter. Manufacturers that subscribe to this maxim will start planning their upskilling initiatives now and make them a top priority throughout 2021 and beyond.

3 Ways to Build the Workforce of the Future

The sooner workers adapt to the new normal, the better. Unfortunately, the human mind isn’t great at retaining tons of new information at once: We forget up to half of what we learn 20 minutes after learning it, and another half by a day later (a phenomenon known as the forgetting curve). But if only one-fourth of reskilling and upskilling efforts stick, the workforce will lag behind.

Repetition has been shown to help with information retention and memory recall, but it’s not always clear how to circle back through key concepts without the exercise becoming redundant or inefficient. Use these strategies in your upskilling initiatives instead:

1. Create video content. In-person training requires careful scheduling and could distract participants for hours. (And of course, questions remain about when it will be feasible again.) Delivering those same training modules via video helps workers access them whenever it’s convenient and consume information in smaller chunks. Plus, it’s especially helpful for those who prefer to learn using a video medium or find it easier to follow.

2. Leverage virtual reality. If video provides education, virtual reality provides experience. It gives users a way to walk through new processes and practice new skills in a hands-on environment as opposed to, say, watching or reading about processes. When used alongside the video, VR allows manufacturers to deliver training whenever, wherever, and to whoever needs it. It secures results, too: Users retain 75% of information using VR training compared to just 5% for lecture-style learning.

3. Install a training platform. Manufacturers often think of training as something they perform occasionally. For it to make an impact, however, they should start thinking of it as a resource to provide constantly.

With this in mind, create a digital channel where training content (videos, VR programs, guides, etc.) is housed and managed so workers can access this content on-demand and managers can check their progress. But don’t stop there — supplement the channel with quizzes, activities, and contests to keep workers immersed in the material.

With the right commitment to upskilling and reskilling, manufacturers can turn a workforce built for the past into one that’s fine-tuned for the future. The key will be to get started as soon as possible to ensure the information sticks. Are your workers well-braced for technology’s upcoming tidal wave?

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Daniel Sztutwojner is chief customer officer and co-founder of Beekeeper, the single point of contact for your frontline workforce. Beekeeper’s mobile platform brings communications and tools into one place to improve agility, productivity, and safety. Daniel is passionate about helping businesses operate more efficiently.

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Archives, Global Trade Daily, State Spotlight

Cities With the Most Construction Workers

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The COVID-19 pandemic has had sweeping impacts on the economy and virtually every industry sector. While the construction industry has weathered the storm better than some hard-hit industries—such as leisure and hospitality—construction is facing some unique challenges. Construction companies are currently contending with project cancellations and delays, supply chain disruptions, and COVID infections among workers. Some parts of the country are more reliant on the construction industry than others, and some are facing worse COVID outbreaks and more stringent business restrictions, meaning the pandemic’s impact on the construction industry has had differential geographic impacts. While construction jobs account for 5.2 percent of all jobs nationally (according to the Bureau of Labor Statistics), some cities rely more heavily on the construction industry for employment.

Historically, construction employment tends to follow the business cycle, fluctuating with economic expansions and recessions. During the Great Recession that lasted from late-2007 to mid-2009, construction employment fell by 20 percent and then continued to fall until early 2010. It then steadily increased until early 2020. Along with overall employment, employment in the construction industry fell sharply in the spring during the early stages of the pandemic. It started rebounding in May but is still below pre-pandemic levels. Compared to a year ago, construction employment is currently down 2.4 percent.

Construction employment varies substantially on a geographic level. Some cities and states are much more reliant on the construction industry than others, with some areas employing large shares of construction workers. The West tends to depend more heavily on the construction industry while the Midwest and Northeast have lower shares of construction employment. At the state level, Wyoming and Utah boast the largest shares of employment in construction, at 8.5 and 7.6 percent, respectively. Connecticut has the lowest share of employment in construction in the country at just 3.6 percent.

Compared to a year ago, most states experienced declines in construction employment. Down 25 percent from the end of 2019, Vermont had the largest drop in construction employment out of all states. Some states, including Virginia and Missouri, saw employment in construction increase from 2019. Construction employment grew by 5.7 percent in Virginia and by 8 percent in Missouri.

To find the metros with the most construction workers, researchers at Construction Coverage analyzed the latest data from the Bureau of Labor Statistics. The researchers ranked metro areas according to the share of employment in construction. Researchers also calculated the construction employment share compared to the national average, the total number of construction employees, and the year-over-year change in construction employment.

Here are the metropolitan areas with the most construction workers.

Metro Rank Share of employment in construction Share of employment in construction (compared to average) Total number of construction employees Year-over-year change in construction employment

 
Lake Charles, LA     1 19.0% +267.9% 18,600 -16.2%
Baton Rouge, LA     2 11.8% +129.3% 46,800 -3.7%
Vallejo, CA     3 9.7% +87.4% 12,800 -3.8%
Santa Rosa-Petaluma, CA     4 8.6% +65.9% 16,600 -5.1%
Coeur d’Alene, ID     5 8.0% +54.3% 5,200 -13.3%
Salem, OR     6 7.7% +49.5% 12,300 -1.6%
Tacoma-Lakewood, WA     7 7.5% +44.5% 23,600 -6.7%
Casper, WY     8 7.5% +45.5% 2,800 0.0%
Reno, NV     9 7.4% +43.3% 17,800 -2.7%
Riverside-San Bernardino-Ontario, CA     10 7.3% +41.8% 107,300 +1.9%
Las Vegas-Henderson-Paradise, NV     11 7.3% +41.2% 68,800 -6.6%
Houston-The Woodlands-Sugar Land, TX     12 7.2% +39.5% 220,000 -9.3%
Orlando-Kissimmee-Sanford, FL     13 7.0% +35.5% 85,500 -2.8%
San Rafael, CA     14 7.0% +36.1% 7,600 -2.6%
Anaheim-Santa Ana-Irvine, CA     15 6.9% +33.2% 107,200 +1.6%
United States     – 5.2% N/A 7,430,000 -2.4%

 

For more information, a detailed methodology, and complete results, you can find the original report on Construction Coverage’s website: https://constructioncoverage.com/research/cities-with-the-most-construction-jobs