May 2024 Volume 6

INDUSTRY NEWS

proved more resilient than many expected, accelerating over the course of the year. We can also see that growth has slowed substan tially from the post-pandemic peak seen in 2021 and early 2022. The latest consumer-related economic indicators show that the U.S. economy (which is two-thirds consumer driven - see pie chart below) remains resilient and by some measures thriving at the start of 2024.

ment rate declined to 3.8%, and wages were up 4.1% year-over-year. At the same time, the labor gap (the difference between the total number of job openings in the U.S. and the number of unemployed people actively looking for work) has shrunk to the lowest level since early 2022. National Labor Market Performance

GDP Breakdown

Forging Revenue is part of Business Investment

March 2024

Government Spending 17%

Business Investment 17%

3.8% 4.1% Past 12 Months

303K

Personal Consumption 66%

Source: Bureau of Labor Statistics | LaborIQ | Bundy Group

Personal Consumption Business Investment Government Spending

Some organizations are ill-prepared to handle the challenges of an increasingly complex labor market, shackled by the “we’ve always done it this way” mentality. Others are thriving, armed with analyt ical insights that allow them to attract highly performing impact players and outperform their competition. The following are some practical ways that forging companies can develop and improve their talent strategy.

Leading Indicators: PMI

80

20

US ISM PMI vs US IP - 12 month lead

rce: Bureau of Economic Analysis| Bundy Group

60

15

40

10

20

5

0

0

-20

-5

The Labor Gap has Shrunk

-40

-10

-60

-15

25

Prominent Sectors

Open Jobs in the US Number of Unemployed

-80

-20

2.0M Education & Healthcare

20

USIP Y-o-Y

PMI M-o-M Offset by 12 months

Source: Institute for Supply Management | Bundy Group

1.7M Professional & Business

15

1.0M Leisure & Hospitality

However, the industrial (or B2B) sector, as measured by Industrial Production, hasn't been growing for the past year. High interest rates have stifled business borrowing costs, and capital-intensive proj ects have borne the brunt of the headwinds. Manufacturing has added essentially no jobs in over a year. Cost pressures will persist throughout 2024, so keep an eye on profitability in the year ahead. But fear not, there is light at the end of the tunnel. Leading indicators (see PMI chart above, which leads U.S. Industrial Production by a full 12 months) largely suggest a cyclical rising trend will take hold in the latter part of this year and persist into 2025. While tempering expectations for robust growth in 2024, forging industry business leaders and decision makers should focus on: Growth by market share gains. Removing unnecessary steps in the production process to increase efficiency and throughput. Protecting margins by reducing costs. Despite the macro headwinds facing the industrial economy, compe tition for talent remains fierce in 2024. March saw another month of solid job growth, with over 300,000 jobs added. The unemploy

1.0M Government

Millions

10

662K Retail Trade

5

601K Manufacturing

449K Construction

0

224K Wholesale Trade

Source: Bureau of Labor Statistics | Bundy Group

Target the Right Kind of Candidate The first step in improving your attractiveness to job seekers is to understand that not all candidates are cut from the same cloth. If you’re struggling to understand why no one is responding to the job ads your business is running in online portals such as monster. com or indeed.com, in local advertising, or on your website, you are not alone. Millions of businesses around the country are failing to attract workers because they are not targeting the right individuals. Few companies understand the difference between active and passive talent, yet it is a key element in increasing the efficacy of your talent attraction strategy.

FIA MAGAZINE | MAY 2024 76