Small and Mid-size Businesses Face Economic Recovery Challenges

Some economists say that the U.S. economy is experiencing an unprecedented labor shortage and particularly impacting small and mid-size businesses as they work toward their recovery. Temporary workers are being scooped up, and the agencies are charging a premium; finding direct labor employees is almost impossible. Large Fortune 100 companies that are well-capitalized are paying higher rates of pay to entry-level, unskilled workers as well as sign-on bonuses: making it difficult for middle-market companies to compete.

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Labor shortage is impacting business travel and Tom Desmond experienced this firsthand while traveling. Small to mid-size businesses are affected by the lack of workers, yet can recover more quickly with strategic business planning. (Photo: Business Wire)

New England Consulting Partners (NECP) Managing Partner, Tom Desmond is concerned about small and middle-market companies. “Recently, I tried to book a room in a hotel where I normally stay in a large metropolitan area and could not get one because the hotel did not have enough help to clean the vacant rooms. These labor shortages do not seem to be caused by natural market conditions and are concerning. Small- and middle-market companies are the backbone of the U.S. economy. If these companies cannot function and get their orders out the door, it will eventually affect GDP and create a ripple effect throughout the economy.”

Some economists say the GDP is already being affected, and workers should be concerned as well. While some might want to take advantage of benefits being extended to them, others may fill those jobs left open. Taking time out of the job market could dull working skills and habits, and the routine practice of work could be easily lost.

As workers eventually return from pandemic-related furloughs and layoffs or start work somewhere new, Human Resources may ask why they did not come back sooner when good-paying jobs were available. Wanting to take time off may not be the best answer and could affect future advancement.

New England Consulting Partners can help. Our experienced professionals and proprietary methodology can support your business through these challenging times like no one else.

About New England Consulting Partners (NECP)

The professionals at NECP are highly respected in the finance industry for their strategic expertise and years of experience in turnaround and crisis management. Through evaluation, finance, and restructuring, NECP has helped in clients in technology, manufacturing, healthcare, distribution, food service, printing and automotive achieve financial and operational stability. By strengthening accounting and control systems NECP implements and enhances client’s capabilities for cash management and future business cycles. With locations in Boston, Dallas, Denver, Detroit and now opening up offices on the west coast.

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