Manufacturing executives told The Journal that as well as struggling to find workers, they’re also being hit by higher prices of raw materials including fuel, lumber, and packaging amid the current shipping crisis, making it harder for them to afford new staff perks.
Some restaurants have been hiking up prices to offset the higher wages. But Paul Isely, a business professor at Michigan’s Grand Valley State University, told The Journal that it’s harder for manufacturers to raise prices because they have to compete with factories around the world, not just nearby restaurants.
Lawrence Mishel, an economist at left-leaning think tank the Economic Policy Institute, told the publication that global competition, outsourcing and contractors, and lower unionization rates were also causing manufacturing jobs to lose their wage premium.
As a result of all these changes, the proportion of US workers employed in the manufacturing industries was shrinking. Less than 9% of US workers are currently employed by manufacturers, The Journal reported. In the early 1980s this was more than 20%.