Feeding Predictions: The Future of Food Manufacturing
In January, SHRM released their predictions for this year’s job market. I shared my initial reaction to that article on LinkedIn (read it here) but wanted to take an opportunity to reflect on Q1 and further anticipate the months ahead.
I’m not an economist, but I have devoted over a decade to recruiting roles from mid-level management to the C-suite for major players in the food and beverage industry. One year, I placed several dozen candidates and another, only twenty total. Success has come to me easily and with great difficulty, and sometimes it hasn’t come at all. I’m still a recruiter, and like everyone who sticks around, I’ve developed a sixth sense for identifying opportunities and challenges from year to year.
Here are my observations about the current state and project future of food manufacturing.
Reduced Consumer Spending
Reduced consumer spending has impacted production and while fewer hires will happen, high-caliber talent remains available in the market. Future-minded organizations will profit from targeting valuable professionals while demand is low.
Rising Costs
Rising input costs continue to drive the transition to automation. Most companies will invest in technologies that reduce labor costs—including yours! —but remember: there remains a distinction between acquiring new tools and optimizing their potential. Consider budgeting the time and resources to research available solutions and train employees on best practices.
Supply Chain Disruptions
Persistent supply chain disruptions will continue to affect production efficiency. Anyone specializing in shipping and receiving, logistics, or warehousing these past few years knows that these complaints aren’t unique—remember that Suez Canal disaster? —but their solutions continue to advance.
More automation companies (Gray Solutions, InLine Engineers, A Gray Company) have started to partner with food manufacturers to reach creative solutions in robotics and control system design. Research a few and think about scheduling a call.
Convenience Rules
TV dinners have made a comeback at home and in the office. (My wife and I love the taquitos from Ruiz Foods.) Whether packing school lunchboxes or meals on-the-go, consumers will prioritize convenience: ready-to-eat and frozen foods will experience increased demand this year on grocery shelves.
Healthier Habits
American spending habits have shifted. Healthier and more sustainable brands will continue to attract more consumer attention if—if! —their leadership pursues more opportunities in product development and marketing. In recent years, I’ve noticed an uptick in creative messaging among smaller and emerging brands (poppi, Oatly, Fishwife) while more established ones tend to lag behind. Good products may make a successful brand, but good marketing makes successful sales. Don’t neglect it.
As the US Labor market cools, the landscape for food manufacturing talent will raise obstacles and opportunities for growth in 2024.
Are you hiring this year? Let’s chat.