The Hudson Valley enters 2022 with strong economic growth prospects, considering the increasing number of companies expanding manufacturing, fulfillment, and distribution operations, and opening new ones in the region. While the potential positives resulting are many, growth also poses challenges, especially when it comes to attracting and retaining skilled talent in an already-tight labor market.

Here’s a glimpse of the expansion underway… IBM’s footprint is growing in Poughkeepsie. RBW Studio moved its headquarters and is building factory in Ulster, and is being joined by Mio Marino Men’s Clothing Brand.  Amazon is opening a warehouse in Hawthorne and fulfillment centers in Montgomery and East Fishkill. Regeneron is planning a $1.8 billion expansion at its Tarrytown campus. Green Thumb Industries cultivation and manufacturing site is in Warwick. The Food Bank of the Hudson Valley’s new distribution center will be in Montgomery, while Frito Lay’s will be in East Fishkill.

There’s more to come, with Governor Kathy Hochul announcing a proposed $500 million investment for offshore wind ports, manufacturing, and supply chain infrastructure.

According to The Council of Industry, the U.S. is the world’s largest manufacturing economy, with 12.1 million employees and 21% of products worldwide. New York manufacturers employ 4.55% of the workforce (or 400,000 employees in 2020) and account for 4.01% of the state’s output (source: National Association of Manufacturing). While business conditions may be more favorable in other states, there’s still a resurgence taking place in the Hudson Valley, and business activity is growing swiftly.

Now for the kicker: as of December 2021, the Hudson Valley’s 2.7 percent unemployment rate is its lowest in over a decade. It’s lower than the U.S. unemployment rate (3.7 percent) and New York State’s (5 percent). That’s leading to significant challenges finding talent to take advantage of new opportunities and keeping existing talent safe from poachers. It can lengthen the time it takes to hire new employees, and up the ante in terms of what employees may be looking for from their employers.

With employees in the drivers’ seat when it comes to jobs, what can an employer do? The solution may rest with creating a multi-pronged strategy that addresses the challenge from several angles:

• Digitalize operations Increase efficiency and eliminate non- or low-value activities, so you can focus limited pools of talent on what’s most meaningful. Consider how AI, robotics, the IoT, and cloud computing can help streamline operations and take over low-value repetitive tasks.
• Engage your employees Hold focus groups with current employees and/or conduct a survey to gauge what’s working (and what’s not) in terms of your value proposition, from benefits and pay to promotion opportunities, development, culture, and more. Share results; develop a plan to address employee input; and communicate what the company is doing to better meet employees’ needs and reward their commitment and contributions.
• Promote your employment brand and employee value proposition What distinguishes your workplace from others? Is it a great place to work? What percent of employees stay their entire careers? What percent advance on the career ladder? What unique benefits and perks do you offer? How do your pay and benefits compare to other employers’ in the area? Let prospects know by promoting this on your website and via social media.
• Enhance recruiting Expand your presence and recruiting activities online. Take a more diverse view of the prospective employee population by reaching out to groups where you may find untapped talent (i.e., Veterans, disabled individuals, and others). Consider adding an employee referral program.
• Streamline hiring. Replace the paper application with a mobile app. Forget about bringing a prospect back and forth to your organization for interview after interview, and instead use Zoom and standardized candidate selection processes. At hiring events, have staff scan resumes and connect virtually with those in the office for on-the-spot interviews. Have templates for job offers ready and digitalize hiring and payroll paperwork.
• Foster relationships to build a talent pipeline. Check out the Council of Industry’s Hudson Valley Consortium Training; the New York State Manufacturers Intermediary Apprenticeship Program (MIAP); and Westchester’s Office of Economic Development pre-apprenticeship program.

Having enough employees with the right skills and in the right place may very well become one of the largest competitive differentiators in the coming decade. Position your organization to compete and win. Give RBT CPAs a call to partner with you on all tax and accounting matters, so you’re free to focus on creating and executing a winning talent acquisition strategy.