From an unprecedented pandemic to a widespread talent shortage, the supply chain industry has faced its fair share of obstacles in recent years. But as we approach 2023, a return to normal is becoming less of a far-fetched hope and more of an imminent reality than many may realize.
In this blog, we’ll recap some of the most impactful trends in the supply chain industry from the past year, forecast what they imply for 2023, and share how you can ensure your business is staffed with the best possible talent to capitalize.
1) Labor Mismatches = Talent Shortage
As the above headline predicts, there is simply a deficit between the number of open supply chain jobs and the candidates available to fill them.
Since the onset of the pandemic, job openings have risen starkly as the economy continues to gain momentum. Confounding this, though, is the sharp decline in labor participation—the workforce is nearly five million smaller than before the pandemic.
As we head into 2023, expert forecasts don’t paint much of a better picture for hiring efforts in the supply chain industry. Seeking out innovative and effective ways to hire and retain talent in the new year will be a business imperative going forward.
2) ESG & Sustainability Practices Becoming More Important
While Environment, Social and Corporate Governance (ESG) and sustainability concerns have been increasingly important to consumers and stakeholders for years, the pandemic has moved the needle dramatically.
Now, more than ever, consumers are insistent on supply chain transparency. How you source, ship, and handle a product, how you affect the environment and how ethical the entire process is are now paramount concerns.
3) AI and IoT Technologies Rise
The momentum propelling artificial intelligence (AI) and internet of things (IoT) technologies in the supply chain industry has only increased. As AI has played a larger role in applications and deployments, it has become even more useful in mitigating the effects of the talent shortage.
As a new year quickly approaches, we anticipate investment and application of AI and IoT to only Increase.
What This Means for Supply Chain Recruitment in 2023
Because of the massive stressors on recruitment efforts, we’ve seen organizations increasing wages at all employee levels in an effort to compete at all costs.
For example, transport and warehouse labor wages have increased four times faster than pre-pandemic rates. Even with this drastic measure, job openings across the country are still 50% above pre-covid levels.
For all that the supply chain industry has had to contend with in the past few years, hope for a “return to normal” sooner rather than later is certainly legitimate.
A recent report from Sea-Intelligence, a supply chain analysis firm, argues that nearly 50% of the congestion in the shipping industry from the past calendar year has resolved, implying that the rate of recovery is increasing. Furthermore, it makes the case that “a full reversal to normality should come in March 2023.”
Vector Technical: Supply Chain Recruitment Experts
At Vector Technical, our stable of experienced supply chain recruiters dedicate their careers to helping their clients overcome their hiring challenges. As the supply chain is set to rebound in the new year, we’re here to empower you to hire with certainty and speed. No matter what you’re dealing with, the supply chain experts at Vector Technical are here to empower you to overcome them. Contact us today to hire your next top performer.