There is no doubt that supply chain interruptions and shipping delays are real. Not only are ships stacked up in harbors to be unloaded, especially on the west coast, but that also means ships and barges are not able to get the product out rapidly either. That in turn means grain storage will also be at a premium. In addition, looking ahead it is predicted that getting fertilizer and chemicals for next spring’s planting season will also be a challenge. Farmers will be scrambling to get this year’s harvest out and next year’s supplies purchased and delivered in a timely manner. They will likely be paying more for their inputs in 2022. However, you can, of course, come to their rescue with AgPack. Make sure they know you, and only you, as a CAD member who can offer thousands of dollars in exclusive rebates and discounts on products they need and use on the farm with every truck purchased or leased from you.
Owen Palm, the CEO of 21st Century Equipment, a 16-dealership John Deere network that straddles the Nebraska, Wyoming and Colorado state borders, had hoped the end of the federal government's extra unemployment stipend, an added $300, would bring back prospective employees who had become desperately difficult to find. In Nebraska, the stipend ended in late May. In early October, Palm was still sweating the same problems. "We were hoping things would loosen up a bit," he said. "Nebraska was one of the first states to terminate those extended benefits and we saw absolutely no movement in terms of available employees. It wasn't even a blip on the radar."
Palm wasn't alone in hoping the nationwide labor shortage was a symptom of unemployment benefits. But now, a month after the national extended stipend ended and five months after some states, like Nebraska, began to end that stipend, there's no sign of want-to-be employees swarming out of the woodwork looking for jobs.
This labor shortage is also impacting ag equipment manufacturers today and some are wondering how it's going to change the future of the industry.
EDITOR’S TAKE:
If the equipment dealers and manufacturers thought they were short-handed before the pandemic started, they are really scrambling today. And, to make matters worse, many companies, like John Deere, are in the midst of some very tough labor negotiations that are sure to take a bite from their bottom line going forward. Equipment dealers have been desperately trying to attract and retain qualified workers through a variety of initiatives and incentives. Mechanics/service techs are a perfect example of where they have created programs to train the techs and then immediately hire after graduation only to have them hired away by others. In addition, the equipment has become so sophisticated that it requires an even higher level of training. Dealers could dramatically improve their profitability by simply having more service techs available, but now it’s an even greater challenge. I know we are probably preaching to the choir, but it is a serious problem that requires a new, serious strategy.
