Several times over the past few years, I have written articles offering much-needed insight to the reality of what to expect using certain process and why. With this article I want to give my thoughts on where I see the future of our industry going for all of us — no matter your level of experience.
Over the past five years being in business, trying to find staffing has been the largest concern for everyone no matter the industry you are in. A significant number of industry veterans retired just before the COVID-19 pandemic. Then as the pandemic continued, several who had retired went back to work to try and offset losses in their retirement investments. Once the market bounced back in their favor, between two and three million people retired again, which sent a shock wave nationwide for several professions. That means, at minimum, around 38,000 people retired per state.
Meanwhile, the average person is simply thinking most people still do not want to work and yes, that is the case with some. But it’s not the actual reason why we are seeing these workforce challenges. I went to a seminar several months ago at Mohawk Valley Community College where I am an alum and had an eye-opening experience that has changed my complete mindset to prepare for the future faster so that I can be ahead of most in our industry.
The seminar speaker was Dr. Christopher Laney and the facts that he presented all made perfect sense but shocked and worried some in attendance. I, for one, was listening to his information and knowledge and treating it like gold.
In a nutshell, he explained why the workforce is depleting so quickly. It is due to the era of baby boomers retiring and that we are not having the same size families to replenish the workforce. By 2029, the majority of the baby boomer generation will be retired. This is coupled with the fact that the average young person is not hitting the workforce full time until the age of 25 because they’re spending more time in college.
Additionally, what had already started happening over the past five to 10 years in our industry? Small- to medium-size companies are buying each other out to gain market share. Manufacturers are doing the same exact thing each month, which means there will be less competition, but also a much smaller workforce to handle the needs of the United States.
You can see it in fast food chains and at larger big-box stores once minimum wage climbed along with cost of running a company. Kiosks and self-checkout replaced cashiers and other workers behind a register. In recent years, artificial intelligence has provided tools for efficiency in writing and design. Certain triggers have spurred the market to invest in these tools out to replace the depleting workforce.
What does this mean for all of us? Look at what happened during the pandemic. Several businesses in our line of work were close enough to retire and companies were paying a premium to acquire them.
The average business owner in our industry is 45 to 55 years old, according to multiple sources on the internet. During the next five years, I expect a high percentage will cut their losses and you will see another wave of people selling and retiring early to cash out and work for someone else.
For those of you not looking to close up or sell out and retire, let me tell you what I suggest you do and why. Take this entire year and focus on knowing your company inside and out. Identify your weak points. Could they be customer service, turnaround time, the quality of your work, or your pricing?
With our company, we had our own software developed over seven years ago. It helps us manage all orders and our workflow, lower our replacements, and so much more. On top of that, we invested in to several new processes like direct-to-film (DTF), UV printing, and 2D/3D/UV laser engraving. All of these processes are not only easier to learn, but allow you to produce more with less space. For example, in one of our rooms in our new building, it is 588 square feet and holds our DTF printer, UV printer, two sublimation printers, and a 54“ X 64“ vinyl printer, which is around $185,000 in equipment that can pack a punch for production.
Take DTF for example. We have the largest printer Coldesi offers and four Hotronix Air Fusion IQ heat presses. It takes up 250 to 270 square feet and we produced over $500,000 in production with that one process and did not max out what we could produce. I am estimating we can get it to handle more than $800,000.
In my professional opinion — with 21 years of experience building a company starting from a 15‘ X 15‘ room in my home with my wife to what it is today — if you have the energy and tenacity to keep going, I urge you to do so. Dealing with staff is always the biggest concern for any company in any line of work, but it has never been easier to learn how to customize thousands of products using so few processes. So, streamline what you are doing. Invest in key processes that allow you to do more with less.
Twenty-one years ago, the market was flooded with so many people willing to work for less, but fewer and fewer stayed in the industry and we are seeing that change occur again now. I remember before COVID-19 we had a sale price for 100 screen printed T-shirts with a one-color imprint on one location for only $4.98 per shirt. Today the same product is $7.49 each, which is up 50% in five short years. As businesses close, demand will increase and prices along with it.
Start putting your goals and plans in place now for the future of your company. Your line of work will be more valuable over the next few years than ever before — and many of you are seeing it already. Focus on your customer service, quality, and turnaround time. If you are delivering on those three, then you will always get what you are worth. Keep making moves toward your future!
