The skilled labor shortage remains a leading concern among manufacturers throughout the U.S.—and as more companies embrace Industry 4.0, the demand for workers with advanced technology skills will continue to rise. A 2024 study predicts that as many as 3.8 million positions will open in U.S. manufacturing before 2033, and that half of these positions may go unfilled if the talent challenge remains unsolved.

Let’s talk about some of the causes of the labor shortage in the industry and what’s being done to address this critical issue.

Factors Contributing to the Labor Shortage

The U.S manufacturing sector has experienced a shortage of workers across all skill levels for the last several years. Below are some factors contributing to the shortage, according to Manufacturing Today:

• The retirement of high numbers of baby boomers.
• Shifting career preferences amongst younger generations.
• Economic disruptions from the Covid-19 pandemic causing workers to seek more job flexibility and security.
• Regional disparities as rural areas struggle to attract skilled workers due to a lack of infrastructure, education systems, and resources.

The Skilled Labor Shortage or “Skills Crisis”

Most recently, the advent of Industry 4.0 has increased the need for employees with technology-focused expertise in areas such as AI, cybersecurity, data analytics, robotics, and additive manufacturing. According to the National Association of Manufacturers (NAM), the demand for certain skilled workers—including statisticians, data scientists, logisticians, engineers, computer and information systems managers, software developers, and industrial maintenance technicians—will continue to rise over the next several years. However, there aren’t currently enough qualified applicants to fill these roles. This phenomenon, combined with the causes listed above, is a major contributing factor to the skills gap issue facing the industry.

Potential Solutions to the Skilled Labor Shortage

1. Automation: The automation of manufacturing tasks and processes reduces reliance on human workers and helps improve the efficiency of operations. While automation can certainly improve speed and productivity, the adoption of innovative technologies requires employees with the specialized skills needed to operate them.
   So, what is being done to develop and acquire the talent with these specialized skillsets?

2. Education Solutions: Collaborations between local high schools, post-secondary institutions, and employers are helping to prepare students for careers in advanced manufacturing by equipping them with critical industry-specific skills and creating direct talent pipelines to jobs. For example, Ivy Tech in Indiana offers college credits and credentials to high school students through dual credit and enrollment programs, many in career and technical education (CTE) fields. Students can earn manufacturing certifications recognized by national industry associations such as the American Welding Society (AWS), National Institute for Metalworking Skills (NIMS), and the Smart Automation Certification Alliance (SACA)—free of charge. Ivy Tech partners with employers in Indiana to offer graduating students entry-level manufacturing roles.
3. Apprenticeships, Internships, and University Partnerships: Internships, apprenticeships, and partnerships with higher education institutions all represent opportunities for manufacturers to establish a talent pipeline of highly skilled and qualified students—many trained on the latest technologies—to fill critical roles at their companies.
4. In-house Training Initiatives: In addition to recruiting skilled workers, many manufacturers are focusing their efforts on developing talent from within. In-house training programs aim to upskill and reskill the current workforce in areas such as robotics, AI, and advanced data analytics. Upskilling existing employees saves employers the time, energy, and costs associated with hiring new workers.
5. Workplace Culture and Incentives: Maintaining a positive workplace culture is another way to attract and retain high-value employees. Incentives such as flexible work arrangements, an emphasis on work-life balance, career development opportunities, and employee wellness programs can all make a company much more attractive to talented prospective employees.

Let Us Help

Tackling the skilled labor shortage in manufacturing will require a combination of technology solutions, educational partnerships, training initiatives, and retention efforts. While you work to implement your own solutions to the skilled labor challenge, let RBT CPAs handle all of your accounting, tax, audit, and advisory needs. Contact us today to find out how we can be Remarkably Better Together.

Amid tariffs, trade wars, and continuing geopolitical tensions, supply chain disruptions remain one of the primary concerns among manufacturers in 2025. Let’s look at some of the supply chain-related challenges manufacturers are currently facing, as well as some of the ways businesses are attempting to mitigate these challenges.

Fictiv, a global manufacturing and supply chain company, published its 10^th Annual State of Manufacturing & Supply Chain report for 2025 based on insights from leaders in the industry. The following are some of this year’s most significant supply chain challenges and strategies, according to Fictiv’s report.

Supply Chain Challenges

• Trade policies and global uncertainty: Changing tariff policies, geopolitical tensions, and climate-related issues such as natural disasters and major weather events within the past year have led to an increasing state of global uncertainty. This uncertainty impacts supply chains by increasing the risk of disruptions, driving up production costs, and making planning and forecasting more difficult.
• Lack of resources: Companies report continued staffing shortages, rising labor costs, and lack of capital as significant factors preventing effective management of supply chains.
• Supplier issues: Manufacturers are facing challenges related to supplier quality, reliability, and compliance, making it difficult to maintain production standards.
• Lack of supply chain visibility: Lack of visibility along the supply chain hinders manufacturers’ ability to anticipate and manage issues.
• Barriers to product innovation: Sourcing has become an obstacle for some when it comes to developing new products. Manufacturers are having difficulty sourcing high-quality product prototypes in small volumes within a fast enough production timeline. In addition, many companies report that their engineers are spending too much time focused on sourcing instead of designing new products.

Supply Chain Strategies

• Onshoring and nearshoring: To minimize risk in the face of global uncertainty, many manufacturers are moving operations closer to home, either to the U.S. or other North American countries. Fictiv reports that, of the industry leaders surveyed, “68% of leaders report onshoring to the U.S. as key strategy in 2025, followed by nearshoring (50%) and diversifying global manufacturing operations (39%).”
• Diversifying suppliers: Diversifying suppliers helps to strengthen the resilience of supply chains against unpredictable events and circumstances.
• Digital manufacturing solutions: “Smart supply chains,” featuring AI and predictive analytics, utilize automation to predict disruptions, forecast demand, assist in maintaining strategic stock levels, and improve visibility.
• Focus on sustainability: According to IBM, sustainability in supply chains can “make operations more cost efficient—for example, by reducing waste and minimizing energy requirements—and improve reliability and resiliency within the supply chain. Together, these benefits can deliver significant savings and improve profitability.” Fictiv’s survey indicates sustainability as a priority for manufacturers in 2025, as companies turn to nearshoring and onshoring—along with other strategies—to reduce environmental impact, build more resilient supply chains, and meet customer demand for sustainable practices.

Navigating supply chain challenges and implementing strategic solutions is no simple task, especially given the current climate. For additional guidance, the Manufacturing Extension Partnership (MEP) National Network offers resources and services to help improve supply chain performance and manage disruptions, including supply chain mapping, risk assessment, supplier scouting, procurement strategy, and more.

While you focus on your supply chain and other priorities, you can count on RBT CPAs to handle your accounting, advisory, audit, and tax needs. Give us a call and find out how we can be Remarkably Better Together.

MIT defines additive manufacturing—often referred to as 3-D printing—as the process of creating an object by building it one layer at a time. Additive manufacturing has risen to the forefront of discussions in the manufacturing world over the last several decades. Many types of materials can be used in additive manufacturing, including polymers, metals, concrete, plastics, ceramics, gels, and even biological materials. This innovative technology has been used to create a wide range of products, including furniture, airplane parts, hearing aids, medical prosthetics, and even human organs (yes, organs!).

While you may not be in the business of 3-D printing organs, your company may still stand to benefit from the ever-evolving potential of additive manufacturing. There are many advantages associated with the adoption of additive manufacturing technology, such as increased customizability, cost-saving potential, simplified supply chains, the ability to create lightweight products, and sustainability. However, the cost of additive manufacturing equipment has long been an issue for small and medium-sized manufacturers. Let’s take a look at some of the benefits of adopting additive manufacturing, as well as the problem of affordability facing many small and medium-sized businesses.

Benefits of Additive Manufacturing (AM)

• With AM, designs can be sent directly to 3-D printers for production, cutting out several steps along the supply chain. This can significantly reduce time spent on product development and production.
• AM can reduce operating costs by accelerating the design process, decreasing labor costs, and cutting down on wasted materials.
• With AM, companies are able to produce only the amount of product that they need, reducing waste and improving sustainability.
• With AM, products can be manufactured in small batches, which cannot be done as cost-effectively through traditional manufacturing methods.
• Products become easier to customize (for example, medical prosthetics) when produced in small batches using AM.
• AM gives manufacturers the ability to create products with different materials on the inside and the outside, something that is difficult to accomplish in conventional manufacturing.
• AM allows companies to create lightweight products, an especially useful capability for the aerospace and automobile industries.

The Downside: Cost

Despite its potential benefits, additive manufacturing is not without its flaws and challenges. One of the most significant issues with additive manufacturing is its high cost, a factor that has long acted as a barrier to entry for small and medium-sized manufacturing businesses. Not only are 3-D printing machines typically very expensive, but the raw materials required for 3-D printing can also be highly specific and costly. Staff also need to be trained on the new technology, requiring an additional investment of resources. However, over the last several years, additive manufacturing equipment has become significantly more affordable. Additionally, the cost savings associated with additive manufacturing can help small businesses achieve a high return on investment, potentially making up for high startup costs. In the end, the potential benefit of adopting additive manufacturing depends largely on a company’s individual goals and products. Businesses with specific goals, such as creating lightweight or highly customized products, likely stand to benefit the most from investing in 3-D printing technology.

Conclusion

Additive manufacturing isn’t for every business. Certain manufacturers will benefit more than others from investment in AM. The cost of equipment and materials can be a barrier for smaller companies, though the technology is becoming more affordable with time. While you decide whether additive manufacturing is a worthwhile investment for your business, you can depend on RBT CPAs to support all of your tax, audit, accounting, and advisory needs. Contact us today to find out how we can be Remarkably Better Together.

The United States economic landscape has seen a great deal of change since the arrival of the new administration in January. One of the most widely discussed and debated topics of the past year has been the possibility of increased tariffs on goods imported to the U.S. in 2025. That possibility became a reality early this month.

What tariffs have been announced?

On February 1, the White House announced a 25% additional tariff on imports from Canada and Mexico, a lower 10% tariff on energy resources from Canada, and a 10% additional tariff on imports from China.

The tariffs on Canada and Mexico have been temporarily paused after negotiations between the U.S. government and the Canadian and Mexican governments regarding increased border patrol. The tariffs for these countries are now delayed until March 4, when the status of borders will be reassessed.

However, the 10% additional tariff on imports from China went into effect on February 4. China has responded with retaliatory tariffs on certain U.S. products.

President Trump has also reinstated the 25% tariff on steel imports and increased the tariffs on aluminum imports to 25%, eliminating exemptions previously granted for certain countries. These tariffs are slated to take effect in March.

Reciprocal tariffs on additional countries are expected to be announced in the near future.

How will the tariffs impact U.S. businesses?

The increased tariffs have the potential to impact U.S. manufacturing businesses both positively and negatively. One of the stated goals of the tariffs is to encourage American domestic production by raising prices of imported goods and reducing the country’s dependence on foreign imports. The increased tariffs may result in growth for certain U.S. manufacturing businesses, as well as the creation of new jobs, as has happened in the past.

However, there are also challenges and complications that come with such broad-sweeping tariffs. Some industries may suffer more than others due to retaliatory tariffs placed by other countries. Due to higher production costs, businesses that rely on foreign imports will either have to raise prices for consumers or take a hit to their profits. If product prices go up, consumers may reduce spending. The tariffs may result in the loss of jobs across the country if businesses resort to lay-offs to make up for financial losses.  Additionally, manufacturers might encounter significant supply chain disruptions or delays as a result of the new policies.

How can manufacturers prepare?

The current uncertainty surrounding the tariffs and potential retaliatory measures makes it hard to predict the full effect of these policy changes. However, there are ways you can prepare your business for the impact of tariffs.

In preparation for potential tariffs, businesses can take the following measures:

• Identify which imports may be affected and estimate cost increases
• Identify potential supply chain vulnerabilities
• Consider the benefits of pricing increases versus the potential impact on demand
• Explore alternative sourcing options—either domestic or in regions less affected by tariffs
• Improve supply chain resilience by diversifying suppliers
• Invest in technology to improve efficiency, reduce production costs, and strengthen supply chain management

It is critical that business leaders stay abreast of the latest tariff developments as the situation is changing rapidly. Planning ahead—and adjusting your business strategies accordingly—will help to mitigate the impact of tariffs when they take effect.

Our experts at RBT CPAs can assist with cash flow projections and help to determine reasonable sales price increases if needed. While you work on strategies to adapt to the new tariffs, please know that RBT CPAs is here to support your business’s accounting, tax, audit, and advisory needs. Visit our website or give us a call to learn more about what we do.

In an ever-evolving business landscape, the importance of succession planning, particularly in manufacturing businesses, cannot be overstated. An unexpected or unplanned for departure of a key employee can be devastating to a company’s productivity, reputation, and business. Proactively protect what you’ve built by making succession planning an ongoing part of doing business.

Succession planning is a strategic process that ensures business continuity by identifying and developing potential successors for key positions, thereby mitigating the risks associated with unexpected absences, departures, or retirements.

In the realm of manufacturing, the stakes are even higher as these businesses are often highly specialized, with unique operational nuances and specific skill requirements. This sector thrives on stability and predictability, and unexpected leadership gaps can have a disruptive impact on production, client relationships, and overall business performance.

Succession planning involves forecasting the future needs of the business, identifying the competencies and skills required for key roles, and developing existing employees to take on these roles when the need arises. It is a proactive approach, focusing on the development of a talent pipeline that can step up when an executive or key staff member leaves.

There are several steps to effective succession planning. First, recognize critical roles that are vital to the organization’s operations and performance. These positions often have a high degree of responsibility and require specific skill sets.

Next, identify high-potential employees who demonstrate the aptitude and ambition to rise to these roles. Utilize performance appraisals, leadership assessments, and feedback from supervisors to pinpoint these individuals. Remember, potential does not only refer to performance. It also includes the ability to learn, adapt, and grow, which are crucial in a manufacturing environment.

Once potential successors are identified, invest in their professional growth. Tailored development plans can help them acquire the necessary skills and knowledge. This could involve on-the-job training, mentoring, job rotations, or even further education.

Communication is also a key aspect of succession planning. Be transparent about the process, the identified successors, and their development plans. This can help manage expectations and ensure everyone is on board with the plan.

Periodic review of the succession plan is crucial. As the business changes, so too may the requirements for key roles, and the identified successors. Regular reviews allow for adjustments and ensure the plan remains aligned with the business’s strategic direction.

However, the succession planning process does not end with the appointment of a successor. There should be a structured handover process to facilitate a smooth transition. This includes knowledge transfer, introduction to key stakeholders, and gradual assumption of the role’s responsibilities.

Succession planning is an indispensable strategic process for manufacturing businesses. It fosters a culture of continuous learning and development, ensures leadership continuity, and minimizes disruption during transitions.

By identifying and nurturing potential successors, manufacturing businesses can ensure their long-term sustainability and success. Remember, the future can be unpredictable, but with a robust succession plan, your business can be prepared for whatever comes its way.

RBT CPAs business advisory services professionals are available to assist you with creating, monitoring and updating succession plans. We are also prepared to handle all of your accounting, tax, and audit needs. Interested in learning more? Please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Do you feel like you’re losing time trying to track down data and spreadsheets to make important decisions? Are you overwhelmed by the number of programs or systems you have that don’t “talk” to each other?  Have you lost business, profits, or productivity due to data issues? Do compliance and regulatory issues keep you awake at night? Maybe it’s time for you to consider adopting an Enterprise Resource Planning or ERP System.

Who can adopt an ERP?

While a commonly held belief is that ERPs are only for large public companies that’s simply not true. The cloud and technology advancements have made it more affordable and accessible to businesses of all sizes. Today, ERP systems are available for small, medium, and large businesses.

What is it?

ERP stands for Enterprise Resource Planning. It’s a business software solution that can help you manage your data, resources, and operations. Rather than having different systems for distinct functions, an ERP integrates and automates a variety of processes and functions, which can include accounting, customer relationship management, e-commerce, finance, Human Resources, inventory management, manufacturing, marketing, procurement, productivity tracking, sales, supply chain, time systems, scheduling, and more.

An ERP can be modular and scalable, making it easy to add new features and capabilities as your business grows and/or needs change. Some are even customized by industry. While available on-premises (which requires heavy IT infrastructure and staffing investments), the cloud has made it possible to offer ERP capabilities on a subscription basis, prompting businesses big and small to adopt one as part of a larger digital strategy.

When should you consider moving to an ERP?

If you’re losing time, customers, productivity, profits and/or opportunities because of your current systems (or lack thereof)…if you can’t use data to make informed decisions in a timely manner…if you don’t have a big picture view of all aspects of your operation at any given moment…if you’re operating inefficiently…or if your business is having a growth spurt with no end in sight, it may be time to consider adopting an ERP.

Where can it deliver improvements and value?

It can help your business be more competitive by identifying and changing processes to operate more efficiently and effectively; use data to schedule production and projects more effectively; more accurately estimate and track product costs; make better, faster decisions; improve customer service; automate mundane tasks so staff can focus on value-added activities; operate more efficiently and reduce lead times while maximizing production and profitability; and use data for predictive modeling (what would happen if…) and real-time decision-making.

It can also improve your internal controls for accounting and financial reporting and compliance; set the stage for growth, whether that’s with a new business model or a new line of business; and support remote and distributed workers.

It may be considered by lenders, investors, potential business partners or a business sale as governance and business practices come under scrutiny.

Why move to an ERP?

It can offer numerous benefits. An ERP can help you improve data security, reduce operational and administration costs, make data-driven decisions, and serve as a framework that can support future growth. It also requires you to define controls that can help protect your business from fraud and other criminal activities, while boosting regulatory compliance.

How do I get started?

Start by doing some research of your own to learn about ERP systems tailored for manufacturing businesses like yours, what they offer, and pricing (many offer monthly subscription options). You may want to reach out to colleagues in trade associations to learn about their experiences with an ERP. It’s also a good idea to define your budget up front and even conduct a cost-benefit analysis to make sure it’s the right time and move for your business. Plan accordingly – it can take an average of three to nine months to implement a new system, train staff, and monitor outcomes. Finally, don’t underestimate the amount of work involved. An ERP implementation requires dedicated resources and hard work. When done right, the pay off can be quick and bountiful.

You may also consider reaching out to your RBT CPAs contact to learn how we’ve helped other clients choose and implement ERP systems. Also remember, to free you up to focus on projects like ERP implementations, RBT CPAs is here to help with your accounting, tax, audit, or business advisory needs. Interested in learning more? Give us a call today.

RBT CPAs is proud to say 100% of its work is prepared in America. Our company does not offshore work, so you always know who is handling your confidential financial data.

Later this year, new rules are expected to be issued, standardizing what and how large public companies report on ESG (environment, social and governance).

Even if your business is not subject to these rules, it will likely feel the impact, so it’s a good idea to get acquainted with ESG and start preparing (or updating) your own ESG plans now.

As previously reported by RBT CPAs, “This October, the Security and Exchange Commission (SEC) is expected to issue rules to standardize how companies assess, measure, manage and disclose ESG related risks, including emissions resulting from assets not owned or controlled by a reporting organization. So, even if you aren’t subject to SEC rules, someone may be asking for your ESG measures for their own reporting purposes.  

Investors want information about it. Clients are looking for it. Lenders and credit rating agencies may consider it and it’s becoming a growing part of insurance and regulatory conversations. Communities judge by it, as do employees and recruits. It can impact business valuations and capital raising, and increase interest from larger organizations looking to grow through mergers and acquisitions.”

Let’s look at what this means specifically for manufacturers.  A recent Forbes.com article, entitled ESG Principles: Why Manufacturers Must Embrace Sustainability (Henrichsen, Jorge Gonzalez. July 11, 2023), defines ESG for manufacturing this way: “Environmental principles refer to a company’s environmental impact, including its carbon footprint, waste management and energy consumption. Social principles refer to a company’s impact on society, including employee welfare, diversity and inclusion, and community engagement. Governance principles refer to a company’s internal policies and procedures, including transparency, accountability, and risk management.”

It goes onto say, “Pressure continues to mount on manufacturers to meet these sustainability standards, a chorus joined by governments, boards, investors and consumers.”

At the same time, though, one of the biggest motivators for getting on the ESG bandwagon is very simply that it’s good for business. It can help your business operate more efficiently, identifying new ways to get work done and reducing waste. It can help you attract and retain talent – employees feel good about working for a company that genuinely cares about them and the planet. And, it can even help you compete and lead you to new business opportunities, as buyers look to source locally (and reduce fossil fuel use for transportation, for example) and look for businesses that can contribute to their ESG goals (by using more sustainable packaging, as an example).

Another Forbes.com article — Behind All The ESG Virtue Signaling, There’s A Real Opportunity For Manufacturers (Karp, Ethan. March 31, 2023) – discusses three ways small manufacturers can jumpstart their ESG plans:

1. Adopt industry 4.0 technology. “Sensors help factories increase machine efficiency on the production line and reduce fuel consumption. Automation can increase profits and employee safety. If manufacturers look for opportunities to use technology to simultaneously improve the bottom line and advance ESG, it will make significant Industry 4.0 investments even easier to justify.”
2. Innovate using ESG. Numerous start-up manufacturers are building their businesses around an ESG value proposition, both in terms of what they make and how they make it. As a result, they’re working smarter and tapping into the growing percentage of consumers willing to pay a premium for products that reflect ESG values.
3. Focus on your supply chain. From increasing dependability and reducing the risk of ESG violations (i.e., using child labor) to promoting competitiveness and managing operating expenses, reinventing a supply chain to align with ESG values can offer numerous advantages.

We’ll provide more information when the new SEC rules and standards are issued this Fall. In the meantime, if you need time to focus on ESG plans and other work, remember, you can count on RBT CPAs to handle your accounting, tax, audit, and business advisory needs. We believe we succeed when we help our clients succeed. To learn more, give us a call today.

RBT CPAs does not outsource work to any other country. All of our work is prepared in the U.S.A.

Survey after survey is showing the same thing – businesses need to get back to basics to create the type of work environment that attracts and keeps employees. With almost 50% of employees looking for a new job in the first half of 2023 (Solutions, 2022), creating a workplace that attracts and retains talent has shifted from an HR problem to a C-suite strategic imperative, and time is of the essence.

The current labor situation is different from any in our country’s history in one major way: there are simply more jobs than people to fill them. A recent article on Bloomberg.com summed up the result, stating, “The time has arrived when America’s demographics are conspiring against its economic ambitions.” (Donnan, 2023) This sentiment holds true, according to a 2022 Manufacturing Institute/Deloitte study reporting almost half of manufacturing executives had turned down business opportunities due to the lack of workers (Institute, 2022). The situation is not going to get better any time soon, with the Congressional Budget Office predicting the American workforce will grow by less than .2% a year through 2031 (Office, 2023).

Many employers have set their sights on finding new, leading-edge solutions to address the crisis. No doubt innovation has its place, but so does creating a mutually beneficial, healthy employer-employee relationship and workplace based on fundamentals.

In January, Gallup reported that employee engagement is at its lowest since 2015, with the biggest declines in clarity of expectations; connection to the mission or purpose of the company; opportunities to learn and grow; opportunities to do what employees do best; and feeling cared about at work. The path to drive improvements isn’t new (ask employees for feedback; make changes based on feedback; clarify expectations; share and celebrate positive results); but, Gallup does have decades of proof that it works (Harter, 2023).

Another survey’s results issued in January, this time by the Conference Board, reinforce the crucial role fundamentals play in creating a workplace that works for today’s employee. The 2023 C-Suite Outlook Survey identified four strategies to create a better workplace: prioritize employee wellness to promote physical, mental, and financial health, as well as stress management; embrace flexible work arrangements; invest in all employees’ professional development; and strengthen succession plans. (Board, 2023)

There’s more. Executive Networks’ “The 2023 Future of Working and Learning Report” points to upskilling as the most critical aspect of organizational success this year. 45% of knowledge workers and 30% of front-line workers said people are leaving their company due to insufficient career advancement or development opportunities. About 83% of HR leaders and 79% of business leaders agree skills-based training should be used as a retention tool. (Networks, 2023)

Together, these survey findings and reports tell a powerful story: businesses need to get back to basics and walk the talk when it comes to creating the type of work environment that attracts, retains, and grows skilled talent. Still, this appears easier said than done.

The Manufacturing Institute with support from Colonial Life issued a report in November called: “The Manufacturing Experience: Closing the Gender Gap.” It says: “As it stands, women make up more than 29% of the manufacturing workforce. By raising the percentage of women in the manufacturing sector to 35% of total employment in the sector, there could be 800,000 more female manufacturing employees. This would be enough to fill almost every open job in the manufacturing sector today.” (Life, 2022)

It sounds easy enough until you look at decades-old issues like pay equity. The Pew Research Center issued a report in March stating, “The gender pay gap in the U.S. persists, and in fact, has barely budged during the past two decades.” In 2002 women earned 80 cents on the dollar as compared to men. Twenty years later, the pay equity gap improved by just 2 cents, with women earning 82 cents for every dollar earned by men in 2022. (Kochhar, 2023)

Another disconnect relates to diversity, equity, inclusion and belonging (DEIB) initiatives. A survey commissioned by Indeed.com earlier this year found 49% of Black workers are considering or actively looking for another job due to unfair compensation, lack of career advancement, and lack of managerial support. Survey respondents indicate the actions companies take for DEIB (i.e., diverse hiring practices, diversity committees and awareness events) simply do not align with what Black employees want (i.e., pay transparency and equity; scheduling flexibility for work/life balance; and increased representation). (Team, 2023)

A presentation at the International Manufacturing Technology Show reinforced the disconnect. Cofounder of Thurgood Industries Darnell Epps said, “Black unemployment in our big cities is extraordinarily high, yet there’s very little outreach and recruitment in communities of color throughout our big cities. In Philly, LA, NYC…black unemployment in February was above 15%. In Detroit it was about 20%. More could be done with regard to the industry and with trade schools in focusing on those populations that have been underserved and have historic levels of unemployment and underemployment.” (Webster, 2022)

No doubt there is a place for innovations like artificial intelligence, employer/education/government collaborations, and more to address the labor crisis, but equal focus and effort should be given to getting back to the basics that create a great workplace, and really committing to drive long-lasting progress.