There isn't enough time cover in depth all of the challenges business owners are facing today but one problem has become particularly bothersome: Staffing shortages and worker competency or, the lack of it.
"The staffing shortage continues to hold back the small business economy as owners try to retain their current employees and attract applicants for open positions, still at near-record levels. Reports of labor costs as the top business problem are at 48-year record high levels."
Nearly half of all business owners polled have unfilled job openings:
"Forty-seven percent (seasonally adjusted) of all owners reported job openings they could not fill in the current period, down 2 points from December. The number of unfilled job openings far exceeds the 48-year historical average of 23 percent.Nationwide, the number of job openings continues to exceed the number of unemployed workers (those looking for a job), producing a tight labor market and pressure on wage levels."
Most of the companies I speak with are dealing with staffing issues at a time when demand is higher than normal, prices keep going up and supplies are hard to get on time (or at all in some cases). Some industries are harder hit than others; 62% of Construction Companies have unfilled jobs, 54% for manufacturing, 48% for transportation.
These issues aren't only the by-product of mis-guided health policies and restrictions - there are decades-long economic factors which are coming to the surface so we should probably get used to this new landscape because even if the immediate challenges are met there are deep, structural changes happening which aren't going away soon.
On the other end of the demand equation there are pressures on consumers that will inevitably trickle down and effect profit margins:
"Volatile lumber prices have caused the average price of a new single-family home to increase by $18,600, according to a new statistic from the NAHB."
To attract and retain good quality staff requires capital on hand - many business owners are tapping into their revenue streams to fund extra working capital so they remain competitive when workers become available.
Borrowing capital right now even at higher rates can become profitable because the prices of all the basic supplies and services are exploding higher. The capital I fund you with today will have the same cost in 12 months - how much higher will lumber or fuel be by then?