Iowa is facing a labor shortage that makes recreational activities more important, says a group of companies. (Photo by Perry Beeman, Iowa Capital Dispatch)
Iowa is facing the worst of labor shortages, but large corporations are still more optimistic than they have been since early 2018, and Iowa Business Council quarterly survey found.
“Companies are really at a turning point in terms of their workforce,” Council Executive Director Joe Murphy said in an interview. “You need people more than ever.”
Labor shortages and difficulties in sourcing supplies have made it difficult for companies to meet increased demands since the pandemic, Murphy said. “… So much money is flowing into the economy at the moment. So much catching up to do. We’ve never really seen anything like this and it has been extremely difficult for companies to actually do, ”he said.
The council that praised the legislature for progress at the last session Childcare, Workforce, and Broadband Access Problems, plans to push for changes to federal immigration law and changes to state corporate tax law to attract workers into the state. Improve recovery will be important too, said Murphy.
Despite the challenges, the members of the works council have never been more positive in the past three years.
The survey of the largest employers in Iowa gave a macroeconomic outlook of 67.08. Anything over 50 is considered a positive sign.
The index landed in positive territory for the fourth straight quarter as the economy recovered from a recession at the start of the coronavirus pandemic in early 2020.
Members of the bipartisan council include some of Iowa’s largest employers, including Pella Corp., investor-owned utility companies, Casey’s, Principal Financial Group, Corteva, and Deere & Co.
Highlights of the current survey:
– The sales forecasts for the next six months increased by 8.75 points to 71.25 points.
– Most members expected to hire more staff for the remainder of the year, with the index increasing 6.25 points to 68.75.
– The investment value increased by 5 points to 61.25. Most respondents said they expected “significantly higher” investments, which shows better prospects in the weeks following the one year anniversary of the pandemic.
– Employee problems continued to be a challenge for the company. 90% of the respondents named them as the main problem.
– Material costs were a concern for 65% of those surveyed.
Business Council chairman Tim Yaggi said in a statement that a streak of four positive quarters was “significant”.
“This survey shows that demand for Iowa goods and services has recovered rapidly,” said Yaggi. “As companies across the state roll back to pre-pandemic results, executives are understandably concerned about the talent pipeline and supply chain issues.”
The survey has been conducted quarterly since 2004.