Labor worries dog local companies

New survey of companies in the region finds an uptick in business conditions but continuing concerns about supply of workers

While the region’s manufacturing industry is in an expansion mode, companies in the area share a common concern that could stall future growth: a shortage of qualified workers.

The March Manufacturing Business Outlook Survey found broad indicators for new orders, shipments and employment were all improved or steady this month compared to February.

“The survey’s future indicators continued to improve and reflect a broadening base of optimism about future growth in manufacturing,” the report put out by the Philadelphia Federal Reserve Bank on Thursday said.

But a problem the industry has been facing for years cropped up in responses to the survey’s special question: “Has your firm experienced any significant labor shortages or mismatch between labor skill requirements and the labor supply?”

Of those responding, 60.3 percent said they experienced labor shortages versus 32.9 percent reporting labor shortages in 2014, when the same question was asked.

As for skills mismatch, 67.6 percent of companies responding said that was a problem

“The challenge is to get the message out to middle school-aged children that this is not your grandfather’s mill. There’s been so much advancement in safety and (workplace conditions). There are so many different opportunities now.” – Glenn Siegele, president of Omega Design in Exton

compared to 45.7 percent in 2014.

Just over 47 percent of the firms responding said they have had at least one position open for at least three months compared to 33 percent in 2014.

The responses accurately reflect what manufacturers in the region are experiencing, according to two Chester County businessmen who are part of the Manufacturing Alliance of Chester and Delaware Counties.

Ralf Weiser, a management team member at Aerzen USA near Coatesville and chairman of the alliance, and Glenn Siegele, president of Omega Design in Exton who sits on the alliance board, said the issue has been on

the minds of manufacturers for a while now.

“It’s one of the primary focal points” of the alliance, said Weiser, whose company makes industrial blowers.

The concern is mounting as baby boomers continue to reach retirement age, he said.

“Manufacturing has one of the oldest workforces,” Weiser said, noting that the alliance is working with schools and colleges in the region to educate young people of the opportunities for manufacturing careers and pathways to pursue the field. “That’s why we do career days an have an apprenticeship program. Attracting talent is tough, retaining talent is tougher.”

That effort is starting at middle schools, he noted, as the alliance’s “What’s So Cool About Manufacturing” video contest was held this year at that grade level. Due

to last week’s snowstorm, the awards program has been rescheduled to 6:30 p.m. April 4 at Penn State Great Valley, where students and teachers from 13 middle schools will gather to see whose videos will be recognized for promoting the manufacturing sector to other young people. The alliance also works with colleges and high schools to encourage more young people to enter the industry, Weiser said.

Siegele said the problem for the industry in many ways is a marketing one.

“The challenge is to get the message out to middle school-aged children that this is not your grandfather’s mill,” Siegele said. “There’s been so much advancement in safety and (workplace conditions). There are so many different opportunities now.”

Omega Design, a small family-owned company that

makes packaging machinery with about 80 employees, is in a growth mode. It’s challenging, Siegele acknowledged, for Omega to find the workers it needs.

“It’s very difficult to find mechanical engineers, it took us six months to find one,” he said, adding that field service technicians are also hard to find.

In addition to working with a national organization, Omega works with the alliance, the Chester County Economic Development Council, the county IU and school districts and area community colleges.

“It’s very encouraging that the local educators are listening to us,” Siegele said.

To contact Business Editor Brian McCullough, call 610235-2655 or send an email to bmccullough@dailylocal. com.

FILE PHOTOS - ASSOCIATED PRESS The manufacturing sector in the region is enjoying better results, according to a recent survey, but employers are finding it difficult to recruit all the workers they need.