2021 Marcum National Manufacturing Survey

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FINANCIAL OVERVIEW (continued)

EMPLOYMENT GROWTH/ RETENTION/RECRUITING Manufacturers Feeling the Labor Pinch Almost half of respondents had a smaller staff than they did a year prior, and 54% plan to increase staffing in the coming year. Not surprisingly, finding skilled labor was among the top three priorities for 72% of respondents, many of whom expect to be hit by a significant number of retirements in the next four years (15% expect to lose as much as a quarter of their staff in that timeframe). It’s no wonder 34% of respondents said losing skilled workers to retirement is their biggest challenge for the coming year. To address the staffing difficulties, more than 80% of respondents say they plan to increase wages and/or benefits. Many companies are also partnering with outside entities to train and recruit employees. For example, 47% of respondents are working with vocational schools and hosting events or interns, and 36% are collaborating with schools on training.

PPP LOANS Paycheck Protection Program (PPP) Loans Proved Invaluable

Manufacturers used PPP loans both to keep people working and to drive growth, with 74% of respondents tapping the federal program in 2020. PPP loans were designed to provide resources to maintain workforces and cover applicable overhead. For businesses meeting certain conditions, the loans converted to grants, making them an exceptional tool for protecting both workers and revenues.

PPP loans were designed to provide resources to maintain workforces and cover applicable overhead. When businesses met the right conditions, the loans converted to grants, making them an exceptional tool for protecting both workers and revenues. “ ”