The market has changed significantly since Q3 and Q4 2023. Companies formerly on the sidelines when considering bringing on key players have jumped back into the game. The inevitable soft landing or recession that has yet to materialize as trillions of stimulus dollars continue to roll through the economy has led employers to fill roles that had previously been part of an unspoken hiring freeze. With interest rates still high, not surprisingly companies are seeking leadership focused on driving costs out of operations. Hence, we are seeing demand for CEOs, COOs, and CFOs with strong backgrounds in continuous improvement, cost and project management, and turnaround experience. With low unemployment numbers and increases in private and public sector hiring, the likelihood that interest rates will remain high for much of 2024 will only increase pressure on management teams.
Another inescapable discussion is employer focus on automation. As companies struggle to attract or retain manufacturing labor, we are seeing search assignments with knowledge of automation, consulting experience working with clients to replace labor with robotics, and experience collecting, analyzing, and turning data into actionable solutions. This labor shortage and trend is not likely to end. “No one getting out of high school wants to work in the plant one of their parents worked in, regardless of what we pay,” noted one senior HR/Labor executive.
Here is to a strong Q2 and our best wishes for continued success,
BRAD &Alex
What We're Hearing
Q1 hiring is gaining momentum as Industrial America seems to have concluded that a recession is not imminent – joining Jamie Dimon and Ray Dalio who have expressed surprise at the strength of the U.S. economy. More on that in our “What We're Reading” section below.
Finding companies to buy is tough as sellers want 2022 valuations. “Owners are dug in.”
The surge in workouts has not yet hit, even as banks continue to tighten lending requirements.
EVs continue to stress the automotive supply base as new OE programs slow dramatically and existing program build rates are well below anticipated demand.
EV engineering talent, once scarce and expensive, is on the move as consumer adoption has plateaued for the time being. Battery technology specialists continue to be in demand – hardware and software.
The topic of managing an intergenerational workforce continues and therefore warrants a follow up from our 2023 Year End Review – see the article “Leading a six-generation workforce” below for a guide on how to bring together the 70+ “silent generation” and the under 25 “Gen Z.”
