The supply chain industry in Asia Pacific is struggling to attract young talent.
Technology has changed the type of skillsets required in supply chain roles, but new research revealed the industry is not prepared for the advancement in tech.
Research conducted by Bastian Consulting, revealed that the overwhelming majority of respondents think graduates are unlikely to apply for roles in supply chain.
Seventy-two per cent of respondents said graduates are more likely to explore roles in sectors other than supply chain.
Why are young people avoiding jobs in a booming industry?
The survey of more than 500 supply chain executives from Australia, New Zealand, Singapore, Malaysia, Hong Kong, Japan and Thailand, showed that 76 per cent of respondents say there is not enough being done to raise awareness of the opportunities available in the supply chain.
“Over the past 12 months, supply chain has made the headlines and made the public more aware of its important role in society as well the major contribution it makes to the global economy. These results clearly show that the industry can do more to communicate the diverse opportunities available in this growing and exciting sector,” Tony Richter, Founder of Bastian Consulting said.
“We’ve never been busier… it is a bit puzzling as to why the staff is not available” tony says.
Respondents were also in agreement that employers are not doing enough to engage with young people, as 70 per cent said organisations are lacking in apprenticeships or graduate recruitment program opportunities.
Industry needs to do more to “communicate the diverse opportunities available”
Tony Richter says that while there is a lot of investment going into technology, the industry needs to do more to invest in raising awareness of the profession as well as market the many opportunities available to young people.
“People use to think about logistics as warehousing and trucking, transport and forklifts. From a diversity perspective, it was almost entirely male driven”
Tony says.
Tony adds that the sector is on an evolutionary journey, but notes there is more work to be done in terms of the gender balance.
In New Zealand, Singapore, Malaysia, Hong Kong and Japan, the majority of survey respondents think there is a gender imbalance across the supply chain workforce.
On the contrary, just over half of respondents from Australia and Thailand do not think there is a gender imbalance issue in the supply chain industry.
How does supply chain tackle this?
“The tech side of supply chain see’s more gender balance. Not only supply chain, but the tech sector as a whole,” Tony says.
Interestingly, despite the perception that the supply chain sector is grappling with an ageing workforce, less than half of respondents said there is an ageing workforce issue in supply chain.
However, he admits diversity in supply chain is going to be a long term journey,
“Typically in the warehouse and operational areas, that are really male dominant in terms of culture,” Tony says.
"There needs to be a lot of work around investing, encourage and welcoming in those environments. But it won't happen overnight"
Technology is playing a huge role in supply chain and its changing the game
Just over half of respondents said technology has changed the type of skillsets required in supply chain roles. Respondents were more united in their view that the industry is not ready for this change, as 68 per cent of respondents said that the industry is not prepared for the shift in skillsets that will be required.
Tony on the growth of digital supply chains.
Tony says AI and blockchain are a “huge” focus, especially when it comes to adapting the technology to supply chain.
“One of the big areas we’re seeing a lot of focus on right now is implementation and integration.”
Tony notes the opportunities in connectivity of multiple technologies, in a logistics or supply chain environment, is in demand.
“One of the biggest issues facing the supply chain industry is a lack of talent”
Tony says.
This is clearly being felt across the entire APAC region.
“Creating an inclusive culture, equal opportunities and career development programs alongside a united effort to demonstrate that this industry is more than just forklifts and warehouses, should be high on the agenda for any business looking to attract new talent in this sector,” Tony concluded.
U.S. small-business confidence reached its highest point in nearly 3-1/2 years in November, according to the National Federation of Independent Business (NFIB).
The NFIB’s Small Business Optimism Index increased by 8.0 points to 101.7, marking the highest level since June 2021.
This surge followed the recent elections, which saw Donald Trump winning the presidential race and the Republican Party gaining control of Congress.
Small business owners, who typically lean Republican, showed increased confidence, a trend anticipated by economists.
Other sentiment surveys also reported improvements in consumer confidence post-election.
Economic improvement
The percentage of small business owners expecting economic improvement rose significantly, indicating a shift in outlook.
More owners believe now is a good time to expand their business, with expectations for higher sales growth increasing. Concerns about inflation slightly lessened, as fewer owners cited it as their primary issue.
Additionally, the uncertainty index for small businesses dropped, reflecting increased stability in economic expectations.
Despite ongoing labor shortages in various sectors, the number of businesses planning to hire rose to the highest level in a year.
Compensation for employees saw an uptick; 32% of owners reported increases, while a notable percentage plans further raises in the coming months.
An upcoming inflation report will assess the strength of the U.S. stock market rally and influence the Federal Reserve’s rate cut strategy.
The S&P 500 has recorded its third consecutive weekly gain, increasing over 27% year-to-date.
This upward momentum in equities is influenced by expectations of additional Fed interest rate cuts amid a resilient economy.
Friday’s employment report indicated stronger than expected job growth, reinforcing this positive outlook. However, this data is not expected to change the Fed’s rate plans for its upcoming December meeting.
The consumer price index data due on Wednesday may alter this optimistic sentiment if inflation exceeds expectations, posing risks for well-performing stocks.
Experts note that if inflation rates are high, it could create uncertainty for investors before the Fed meeting.
Following the recent jobs report, the probability of the Fed cutting rates has increased, with nearly a 90% chance predicted for a 25 basis point cut.
The consumer price index is expected to rise by 2.7% over the past year.
If CPI results are higher than expected, it might prompt a cautious approach on future cuts, affecting outlooks for 2025.
Additionally, inflation concerns are heightened by the potential introduction of tariffs by President-elect Donald Trump.
Despite these factors, stock prices continue to rise, although there are warning signs of overly optimistic sentiment in the market.
Some analysts maintain a positive view on stocks heading into the year-end, citing a reduction in concerns surrounding the economy and interest rates.
