How the Supply Chain Talent Shortage Will Affect 2022
The demand for supply chain pros will exceed availability in the new year. Why does this supply chain talent shortage exist? Supply chain shortages began when baby boomers retired en masse, leaving companies without the knowledge and physical skills to meet productivity goals.
Soon after, the COVID pandemic took a toll on our nation’s workforce. Thousands of people quit their jobs or lost them due to budget cuts or business closures. The combination of supply chain disruptions due to the virus and the lack of workers has wreaked havoc on many of America’s businesses.
The Extent of the Supply Chain Talent Shortage
The extent of the supply chain talent shortage is evidenced by more than 10 million open jobs in the U.S. today. Economists predict the skills gap will result in 2.1 million unfulfilled manufacturing jobs by 2030.
The supply chain economy represents industries that sell to businesses and the government. According to Harvard Business Review, it contains 37% of all jobs employing 44 million people. Some of the jobs in this category include truck drivers, computer programmers, operation managers, and more.
Many industry leaders believe high demand for talent contributes to the shortage, but demand is not the most significant contributor. Other variables impact a company’s ability to find the right employees. For example:
Advancements in Technology
Technological innovations are creating higher demand for talent in various roles such as:
In today’s job market, people with these skills are difficult to find due to high demand; more than 40% of the jobs in the current labor market demand at least an intermediate level of technical skill.
With concerns about wage inflation and competition for employees with high technical aptitude, employers in supply chain companies face more challenges in 2022 than ever before.
Changes in Job Requirements
The supply chain has evolved, and the resulting changes in job requirements hinder a company’s ability to find skilled workers.
Supply chain companies need people proficient with specific types of software, but they also depend on workers who have excellent problem-solving skills and leadership abilities. The shortage of people with these specialized skills has a detrimental impact on many organizations.
With this in mind, companies may need to focus on reskilling their existing employees to make up for the gaps in the labor market.
Negative Perceptions Among Young Professionals
Many up-and-coming Generation Z workers and millennials are unaware of the benefits of supply chain careers and this happens to be one of the leading causes of the supply chain talent shortage. They tend to view these jobs as repetitive and boring with no real opportunity for advancement.
This negative image keeps many young professionals from seeking careers in supply chain management. By adapting to modern employment strategies, such as flexible scheduling, employers can overcome this obstacle and present an attractive opportunity for a new generation of workers.
The actual reasons to work in the logistics field are immense. For starters, underneath the logistics umbrella, you have customer service, transportation, operations, purchasing, warehousing, materials handling, strategy, inventory control, and forecasting–many industry divisions equate to many opportunities to advance or move laterally.
Supply chain careers will also always keep you on your toes. Your day-to-day life will never look the same. One day you are working with a notable fortune-500 company, and the next, a small start-up from your hometown. Burnout will be minimal as each day will bring new challenges, tasks, and accomplishments.
Even better, you may be some of the first to work with new technologies. Like drones and driverless vehicles, emerging trends are already beginning to make waves in the supply chain industry. With a career in logistics, you’ll get to work with that technology and be part of an operation that propels businesses forward all over the globe.
Manage Supply Chain Disruptions with R2 Logistics
Is your organization struggling due to supply chain talent shortages? If so, we have a solution. Our TMS logistics platform helps you plan and coordinate incoming and outgoing shipments for a more efficient, streamlined, cost-effective operation.
The system allows you to view and compare carrier rates, request spot quotes, and audit carrier invoices. At R2 Logistics, a dedicated account representative will oversee your portfolio to ensure that we meet and exceed your company’s needs.
We offer a full line of logistics solutions that provide real-time operations visibility to enhance every aspect of your business.
As a 3PL service provider, we are committed to providing superior services to shippers of all sizes. Contact R2 Logistics today to learn more about our supply chain management services.