Last week Talent Talk pointed out that in one recent survey 100% of CFOs believe that a recession is unavoidable at some point. In that short week we have seen the Federal Reserve raise interest rates at a level not seen for 28 years, and the official arrival of a bear stock market.

We also pointed out that this could be a tremendous opportunity for companies that are prepared to use this time to correct what many have seen as their biggest headwind for growth — the ability to attract and hire top industry talent.

The US has experienced 12 recessions since WWII. While some panicked and some did suffer, those with a longer-term vision typically did quite well. In early 2009 you could have gotten into the S&P 500 in the low 1,000s. Even at today’s bear market prices, it has tripled.

This is not investment advice, but it is hiring advice. Survey after survey of CEOs and CHROs over the past year show that hiring is at the top of their list of priorities, challenges, and, most importantly, impediments to attaining growth goals.

Winston Churchill is quoted as saying that generals are always prepared to fight the last war. The pandemic recession saw unemployment rates near 15% in 2020. Expect the coming recession to top out in the 5 to 6% range, and there probably still will be more job openings than people qualified to fill them.

The Kellogg School of Management estimates that US companies are sitting on nearly $6 trillion in cash. Granted, most of that is not with plastics manufacturers, but many segments of our industry have done very well over the past years.

I believe we are entering a period when companies can proactively staff for many years to come. Might you be just a bit early? Possibly, but the past year has shown the true cost of being late to the game.

About 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].