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Almost 70% of CFOs expect a recession in the first half of 2023, but twice as many say their companies will increase rather than decrease spending over the next year, according to a survey.

Paul Sturgeon

June 13, 2022

2 Min Read
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Image: Milles Studio/Adobe Stock

Financial author Morgan Housel said, "People are very good at forecasting the future, except for the surprises, which tend to be all that matter." When it comes to talent acquisition within the plastics industry, Talent Talk has a pretty good track record. Back in April 2020 we advised businesses that there was a brief open window of opportunity for hiring.

The past two years have seen that brief opportunity turn rapidly into the tightest labor market of our lifetimes. Candidates have had multiple opportunities, almost always a counteroffer, and there has been a bidding war for top talent.

For plastics companies that have been crushed by staffing issues, there is good news and bad news. I believe there will be a window to correct those imbalances if they are proactive and ready to take advantage of the opportunity. The bad news? What will trigger that means a different set of issues.

A recent survey of CFOs conducted by business network CNBC showed that 68% believe a recession will occur during the first half of 2023. One hundred percent believe a recession is unavoidable at some point.

But this is not a gloom and doom forecast. Twice as many CFOs say their companies will increase spending over the next year than will cut back, and 82% plan to maintain at least their current spending levels. Those planning to increase headcount outnumber those planning to decrease it by three to one.

Today, there are still more than 11 million jobs open, far more than the available workforce, so this is not a prediction of an immediate reversal of the last two years. The great resignation has not fully run its course, with millions of Americans still leaving their jobs every month. What I am saying is that there is something just over the horizon that will be a problem for some companies and an opportunity for others. Stay tuned.

 

paul-sturgeon-150.jpgAbout the author

Paul Sturgeon is CEO of KLA Industries, a national search firm specializing in plastics, packaging, and polymer technology. If you have a topic you would like to see discussed, a company that is growing, or other ideas for this blog, e-mail Sturgeon at [email protected].

About the Author(s)

Paul Sturgeon

Paul Sturgeon is CEO of KLA Industries, a national search firm specializing in plastics, packaging, and polymer technology. If you have a topic you would like to see discussed, a company that is growing, or other ideas for this blog, e-mail Sturgeon at [email protected].

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