to increase. The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Within this category, the US Bureau of Labor Statistics reports the All Items Index increased 6.2% over past 12 months. We’ve all experienced higher prices at the gas pump in recent time. Gas prices have surged to a 7-year high as demand exceeds supply for fuel. Gas is over $1 higher than it was this time last year, as the Organization of the Petroleum Exporting Countries has decided not to increase production. We can anticipate price increases as School Year 2022-2023 Bid Season begins, due to operational cost increases. LEARN MORE HERE School Nutrition continues to be a career with constant challenges, but our industry is ready to roll with the punches. It took a global pandemic for universal free meals to become a reality. We’ve never experienced such high levels of participation for school breakfast and school lunch, but never experienced such product shortages and labor deficits. So, which came first, the chicken or the egg? All we know is there is not one cure-all solution for this global supply chain crisis. It is easy to point fingers and play the blame game, but ultimately that will only increase tension and frustration. Now is the time for collaboration and communication. Troubleshoot with your peers and industry partners to generate new ideas and camaraderie. Utilize our talented staff to creatively tackle daily problems. Focus on the required tasks and delegate wherever possible. You are NOT in this alone! If you’re looking for a great educational tool to inform your parents and administration to the global supply chain issues impacting your program, check out SNA’s educational video below: LEARN MORE HERE
Dubbed The Great Resignation, The U.S. Bureau of Labor Statistics reports 4 million Americans quit
Labor Shortage
G l o b a l S u p p l y C h a i n C r i s i s : The Challenge is Real
their jobs in July 2021. Employees began resigning steadily since April 2021 and resignations have remained high ever since resulting in a staggering 10.9 million open jobs. Many speculate that the pandemic afforded the labor force time to evaluate their current employment and make steps towards changing their circumstances to better suit their family and personal goals. The highest resignation rates are amongst employees between 30 and 45 years in mid-level positions. LEARN MORE HERE Where did all the foodservice workers go? The Bureau of Labor Statistics reports a peak of 7% of US food service employees quitting their jobs in August 2021. Employment in the foodservice industry is down 8% compared to pre-pandemic levels. Reasons for leaving their positions include high turnover, lack of benefits, long hours, and potential exposure to COVID-19. Keep inmind, this same labor shortage is being seen at every level of the supply chain including food manufacturers and distributors. A foodservice operation cannot exist without goods and materials to serve. The ongoing truck driver shortage is continuing to strain the foodservice industry. With a current deficit of 80,000 truck drivers in the US, it is getting worse as our labor force ages and the Boomer Generation retires. The Infrastructure Bill, that was recently passed, has a challenge to recruit 1 million new drivers in the next 9 years to haul 72.5% of all freighted transport in the US. WHO IS DRIVING THE GREAT RESIGNATION? LEARN MORE HERE
By Jack Farling, Greg Brooks, Cindy Husar-Marschke and Alison Powers (Industry Advisory Committee Members)
When the going gets tough, the tough get going! If there was ever a time for a pep talk, this would be it. Unfortunately, supply chain issues continue with no clear end in sight. Economists are saying 2023 is when our world will begin to regulate. This is no longer crisis management mode; rather, this is our new normal.
home. This instantaneous surge in non-traditional buying threw a big monkey wrench in the US supply chain. As the world began to re-open the supply chain continued to experience cracks in every aspect resulting in our current supply chain crisis. From a foodservice management perspective, our biggest issues lie in raw material shortage, labor shortage, and increased operational costs.
Gen Z has even begun referring to the pandemic as a “panini” which at least sounds more fun, right?!
By now, everyone has seen the stunning photos of approximately 200,000 shipping containers sitting idle off the coast
GRAPHIC BY SARAH SCHLEEDE LEARN MORE HERE
Raw Material Shortage
Let’s get down to business, what exactly is going on out there anyway? We’re months into School Year 2021-2022 and it
Reality Check
of Los Angeles. Looking for paper trays, anyone? They’re likely sitting in a shipping container waiting to get a dock appointment for skilled labor to unload the shipping containers, transfer them on to a rail car or delivery truck, bring them to your distributor, wait for a dock appointment and labor to unload the delivery, make it into the distributor’s inventory, and be available for you to purchase with a generous lead time. There are countless opportunities for breakdown in this system.
still feels like we’re in start-up mode with a laundry list of stock outs, countless open positions, and forecasting is non-existent. The one saving grace: no one is exempt from the current state of business.
TRUCK DRIVER SHORTAGE
LEARN MORE HERE INFRASTRUCTURE BILL
LEARN MORE HERE
Increased Operational Costs
Big Points of Tension in the Supply Chain
Due to the labor crisis many organ i za t i ons are increasing wages, offering sign-onbonuses,
CLICK HERE TO VIEW CALIFORNIA’S GRIDLOCK
At the beginning of the pandemic, the world shut down sending everyone home
SNA VIDEO
In addition to paper goods and shelf stable items, manufacturers are also experiencing ingredient shortages resulting in delays with processed foods. Everyone has experienced egg, potato, milk, and even bread shortages in recent time.
for varying lengths of time. What do idle people do with no where to go? We shop. During the pandemic retail soared and everyone began DIY projects at
Your ISNA’s Executive Board and Industry Advisory Committee is here to help. If you don’t know where to start, utilize the contact information of Indiana’s School Nutrition leaders HERE.
and other incentives to attract talent. This only adds to the ever-increasing cost of doing business during the pandemic. The cost of production, equipment repairs, and inflation are all causing the cost of goods
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