Georgia Tech Procurement Assistance Center

  • Home
  • About Us
  • Training
    • Class Registration
    • On-demand Training
  • Useful Links
  • Team Directory
    • Albany Counselor
    • Atlanta Counselors
    • Augusta Counselor
    • Carrollton Counselor
    • Columbus Counselor
    • Gainesville Counselor
    • Savannah Counselor
    • Warner Robins Counselor
  • Directions
    • Atlanta – Training Facility
    • Atlanta – Office
    • Albany
    • Augusta
    • Carrollton
    • Columbus
    • Gainesville
    • Savannah
    • Warner Robins
  • New Client Application
  • Contact Us

Atlanta FRB: Small firms face challenges to find workers

February 25, 2019 By Nancy Cleveland

Amid a largely positive Beige Book report by the Federal Reserve Bank (FRB) on economic conditions in the Southeast, some small businesses report particular challenges competing with larger companies for a dwindling pool of available workers.

Across the board, businesses continued to report pressure to increase wages for low-skill, hourly jobs, notably in the hospitality and retail industries. That’s good news for workers.

But the January 16 report notes, “Challenges with escalating wage pressure were especially acute among small businesses.”

Growing numbers of Americans are switching jobs, according to the U.S. Bureau of Labor Statistics.  In that context, the past few Beige Book reports have captured a powerful focus on retaining employees in a tight labor market. The latest Beige Book includes a couple of newer nuggets:

  • The particular challenges facing smaller employers, and reports from a few contacts in construction, manufacturing, and health services that they are overstaffing certain jobs to prepare for anticipated growth, figuring it will be difficult to find people in the coming months.

Even as many confront hiring challenges, retailers across the Sixth Federal Reserve District reported steady holiday sales. Not surprisingly, online sales grew faster than those at traditional stores.  Travel and tourism contacts also reported growth in business and leisure travel.

In other sectors:

  • Companies reported input costs kept climbing, especially for products affected by tariffs.  So far, most firms report passing along tariff-related price increase with no serious impact on profit margins.
  • Demand for renewable power continued to grow compared to electricity generated by coal, gas, or nuclear plants.
  • In many parts of the district, sales of existing homes were flat or declined. Home construction is lagging demand, as builders focus on higher-priced houses in popular submarkets.
  • Commercial real estate reports were generally upbeat. Vacancy rates continued to decline, fueled by the industrial, multifamily, and medical sectors. In fact, demand for industrial space, such as big distribution centers, continues to exceed supply. However, contacts reported ongoing concerns about bankruptcies and generally difficult conditions among traditional big-box retailers.
  • Cargo shipments were up among contacts at seaports, air freight haulers, and railroads. Logistics firms reported higher volumes of packages delivered during the holidays compared to the previous year.
  • Financial institutions generally reported that conditions held steady.  Higher interest rates boosted net margins at most banks, while growth in loan volumes continued but at a slower pace, especially in real estate.  While measures of loan quality stayed mostly strong, some lenders noted increases in late payments by consumers.
  • In the farming business, the U.S. Department of Agriculture designated counties in Alabama, Florida, Georgia, and Mississippi as natural disaster areas because of damages and losses from hurricanes and flooding.

Source: https://www.frbatlanta.org/economy-matters/regional-economics/beige-book/2019/01/16/beige-book-small-firms-face-challenges-to-find-workers

Filed Under: Contracting Tips Tagged With: Bureau of Labor Statistics, cargo, farming, Federal Reserve, Federal Reserve Bank, interest rates, real estate, small business, tariffs, transportation, wage rates, workforce

Recent Posts

  • Contractors must update EEO poster
  • SBA scorecard shows federal government continues to prioritize small business contracting
  • The risk of organizational conflicts of interest
  • The gap widens between COFC and GAO on late is late rule
  • OMB releases guidance related to small business goals

Popular Topics

8(a) abuse Army bid protest budget budget cuts certification construction contract awards contracting opportunities cybersecurity DoD DOJ False Claims Act FAR federal contracting federal contracts fraud GAO Georgia Tech government contracting government contract training government trends GSA GSA Schedule GTPAC HUBZone innovation IT Justice Dept. marketing NDAA OMB SBA SDVOSB set-aside small business small business goals spending subcontracting technology VA veteran owned business VOSB wosb

Contracting News

SBA scorecard shows federal government continues to prioritize small business contracting

OMB releases guidance related to small business goals

OMB issues guidance on impact of injunction on government contractor vaccine mandate

Changes coming to DOD’s Cybersecurity Maturity Model Certification under CMMC 2.0

Judge issues nationwide injunction halting enforcement of COVID-19 vaccine mandate

Read More

Contracting Tips

Contractors must update EEO poster

The risk of organizational conflicts of interest

The gap widens between COFC and GAO on late is late rule

Are verbal agreements good enough for government contractors?

CMMC 2.0 simplifies requirements but raises risks for government contractors

Read More

GTPAC News

VA direct access program events in 2022

Sandia National Laboratories seeks small business suppliers

Navy OSBP hosting DCAA overview (part 2) event Jan. 12, 2022

Navy OSBP hosting cybersecurity “ask me anything” event Dec. 16th

State of Georgia hosting supplier systems training on January 26, 2022

Read More

Georgia Tech News

Undergraduate enrollment growth reflects inclusive excellence

Georgia Tech delivers $4 billion in economic impact to the State of Georgia

Georgia Tech awards first round of seed grants to support team-based research

Georgia Tech announces inaugural Associate Vice President of Corporate Engagement

DoD funds Georgia Tech to enhance U.S. hypersonics capabilities

Read More

  • SAM.gov registration is free, and help with SAM is free, too
APTAC RSS Twitter GTPAC - 30th Year of Service

Copyright © 2023 · Georgia Tech - Enterprise Innovation Institute