We do our best to always have our finger on the pulse of the customer and the vacuum industry.
Looking forward to 2022, in the economic forecast, we can expect a swelling of manufacturing job openings. In the United States, manufacturing job postings reached a new all-time-high benchmark, surpassing 1 million for the first time. At the same time, the Consumer Price Index has risen by nearly 7 percent over the last 12 months. It’s not ideal and is actually the fastest inflationary pace in nearly 40 years.
What does this all mean for 2022? Let’s take a look.
Rising Costs
First, it’s reasonable to expect rising costs as inflation continues to put pressure on the market. Material costs are going to be higher, but so are wages. Companies are paying more for employees and that’s why we’re seeing wages grow. There are more manufacturing job openings than available job candidates. Therefore, to hire an employee companies must hire them away from another company by paying more money.
Some companies are going with fewer employees as they streamline processes and learn new efficiencies. This will create a boost in output per employee.
High Demand
In this climate of rising wages and higher overall costs, we also expect that demand will continue to dominate the headlines this new year. One example of this economic scenario is the semiconductor industry. The stress is being felt both here and abroad as manufacturers crank out as many high-end electronic goods as possible.
Due to high demand, consumers will have to wait a little longer, and pay a little more for their goods this year.
Supply Chain Challenges
The supply chain is also a little dinged up. COVID-19 continues to upend business cycles and is clamping down on the supply chain. How long will these supply chain and labor shortages prolong? Well, it is probably safe to assume that these challenges are poised to stick around in 2022.
GNB believes that despite the array of challenges, we will continue to serve our customers’ every need and maintain our standard of excellence in delivering unmatched vacuum technology, parts and services. We want clients to say “Wow!” after every transaction, and we will remain steadfast in that pursuit.
In fact, we embrace the challenges and demands of being a leader in this industry. Our promise to our partners is that they will receive world-class vacuum products and services every time, on time. And it’s possible through GNB’s experience, expertise and never-ending pursuit of excellence.