The perennial thorn of labor remains a trouble spot for those in New Jersey, as well as throughout the country.
“Availability of labor, as well as the quality of labor, is an issue that gets worse by the week,” said Jeff Danner, general manager for Eastern Propak, LLC, BB #:159451 in Glassboro, NJ.
He said this was not the case three to four years ago. “Today, labor quality is marginal at best and challenging to get the numbers we need.”
Equally troubling in a business with razor thin margins is New Jersey’s mandate to raise minimum wage to $15 per hour by 2024.
“We will somehow have to absorb a 22 percent increase in labor cost,” said Danner, which “puts us at a tremendous disadvantage” when compared to neighboring states Pennsylvania and Delaware.
Bill Nardelli Jr., secretary and treasurer for grower-shipper Nardelli Brothers, Inc., BB #:101204 Cedarville, NJ, agrees labor is a significant challenge, so Nardelli Brothers is looking into further mechanization.
He concedes that while it is a viable option, equipment is still in its early stages and very expensive. “We hope technology continues to increase, with more offerings from different companies and manufacturers for mechanical harvests.”
Nardelli Brothers has dealt with the driver shortage by increasing its trucks and trailers over the past year. The expansion is driven by the desire to always live up to its tagline, “Fresher by Miles.”
Bob Von Rohr, director of marketing for Sunny Valley International, Inc., BB #:126304 Glassboro, NJ, agrees that transportation, labor, and weather continue to be among the industry’s biggest obstacles.
“Weather is unpredictable and uncontrollable,” he said. “Labor is always a challenge; trucking is seasonally tight.”
Regardless, though, he says none of the above have truly “had a major effect on our business.”
This is an excerpt from the most recent Produce Blueprints quarterly journal. Click here to read the full version.
