Labor Challenges in the Industrial and Manufacturing Sectors Persist
3 Jan 2022
As the U.S. economy emerges from the 2020 recession, the U.S. labor market remains an area of concern for occupiers, investors, and the commercial real estate industry. The impact of the pandemic on the labor market has been sharp and severe, especially within urban areas. Although the economy is now well on its way to recovery, significant challenges remain, including labor supply-demand imbalances and a drop in labor force participation.
A Constant Pain Point
With unemployment benefits having ended for millions of Americans on September 5, it remains to be seen how labor markets will respond. The COVID-19 pandemic sparked the acceleration of e-commerce/online shopping demand, which drove a greater need for space in the industrial real estate world. This acceleration also brought about labor challenges for the industrial and manufacturing sectors. Though it’s been an issue throughout the current expansion, finding, training, and retaining an efficient industrial workforce remains a constant pain point for most distributors and manufacturers.