Special Questions

Texas Manufacturing Outlook Survey

Data were collected October 12–20, and 101 Texas manufacturers responded to the survey.

NOTE: 100 responses.

NOTES: 78 responses. This question was only posed to those currently trying to hire or recall workers.

NOTES: 64 responses. This question was only posed to those noting a lack of available applicants/no applicants.

NOTE: 100 responses.

NOTE: 100 responses.

Special Questions Comments

These comments have been edited for publication.

• The decline in available and willing U.S. skilled labor is astonishing due to the fiscal policy of this administration. For America to succeed, there has to be motivation to work, and that motivation is ever-dwindling. Skilled labor is less available than at any time in my 20-year career. The workers are not there because they have exited the workforce.
• No issues with credit for material; the issue is not enough material is available to buy.

• As with the last few months, onboarding and retaining employees continue to be a struggle. Just as we hire one and get them trained, another leaves for a higher-paying job elsewhere. Many of our applicants are more concerned with the pay rate they are getting rather than the benefits that may come with it—$12 per hour plus benefits versus $15 per hour with no benefits. Those that leave are willing to take the risk of having no benefits or moving to a job where their work schedule might fluctuate below the standard 40-plus-hour workweek that we generally guarantee.

• The combination of supply-chain disruptions and labor-pool limitations has significantly impacted our ability to meet consumer demand.
• Absent a change in economic [policy], we’re focusing on liquidity over reinvestment.
• Inflation is running away. An individual can’t make enough to keep up, much less us manufacturers that rely upon metal goods. There’s been a 50, 100, 120 percent rise in costs since Biden has taken office.

• If inflation isn’t reined in soon, wage pressures will be a major problem.

• Financing difficulties only come, in our case, as supply-chain difficulties make “just in time” inventories impossible. Customers preorder based on fear of higher prices. Working capital goes out of sight.

• We decided to increase our starting wage to $15 per hour, plus a signing bonus. We heavily promoted our open jobs, looking to hire approximately 150 people. As of today, we have received over 2,000 applications. In addition to that, we also gave all of our existing employees a 30 percent raise.

• We cannot find employees at any price.

Texas Service Sector Outlook Survey

Data were collected October 12–20, and 272 Texas business executives responded to the survey.

NOTE: 268 responses.

NOTES: 171 responses. This question was only posed to those currently trying to hire or recall workers.

NOTES: 123 responses. This question was only posed to those noting a lack of available applicants/no applicants.

NOTE: 271 responses.

NOTE: 270 responses.

Special Questions Comments

These comments have been edited for publication.

• Finding truck mechanics with decent skills is our biggest problem. We've taken a couple of students from the local technical program on a part-time basis just to have people working. We're paying good mechanics $30 to $35 an hour. We're testing $40 an hour with no applicants showing up.

• We are in maximize-cash-flow mode. Our systems have spare capacity from the projects before and during the COVID production reset, so capex levels are much reduced from previous years.

• My partner and I back our loans personally, which is why we do not have trouble getting financing.

• We're well-capitalized from prior activities and also have a large untapped line of credit to draw from as needed.

• The subordinated debt instruments are easily accessible for qualified borrowers, and the pricing is extremely competitive, providing very favorable pricing for the borrower. There is very strong demand for loans by lenders, and it is becoming more difficult to acquire loans due to the rabid competition for loans. Banks are seeing more lenders in the marketplace including private-equity investors and insurance companies.
• The PPP [Paycheck Protection Program] forgiveness proved to be the debacle I suspected all along. Tremendous amounts of time and energy went into a documentation process that showed that the SBA [Small Business Administration] had no understanding of our business or what we did and resulted in our application for forgiveness being rejected. Ultimately, we were successful in getting rid of the tar baby, but there were significant costs to us that will never be recouped.

• We are having a record year. There are an amazing number of out-of-state developers coming to Dallas–Fort Worth. The city of Dallas is preventing improvement and even more prosperity because it refuses to bring workers back. Its building permitting department is dramatically hurting Dallas.
• We have more cash in the bank than we have had in history and will be looking for equipment and capital expenditures to purchase in the coming months for our new office building, as well as giving employees extra bonuses.

• Community banks are strong out here in East Texas, so credit is easy to obtain and very competitive, which dictates borrower-friendly terms.

• The inability to staff our operations is affecting our revenue and profitability. We simply cannot complete projects in a timely manner. It pushes the overtime hours up significantly, which affects profits.
• The competition for employees is putting us in a difficult situation with our contract work. We cannot compete at our current rates and are being held to our contract. So, most likely we will lose those contracts when they come due.

• It’s not the money; it’s finding the people who are interested in working.
• Government is crushing us with regulation and the relentless drop in rates. Many and perhaps most physicians have limited access to patients and so have displaced care to urgent care centers or more likely, emergency rooms. Medicaid rates are well below cost of goods sold. Medicare rates are barely breakeven. This results in more and more mid-level providers who are not experienced and do not have robust training.

• Families are no longer interested in being foster parents. They feel that with COVID and the ongoing lawsuits, they do not want to take in children.

Texas Retail Outlook Survey

Data were collected October 12–20, and 47 Texas retailers responded to the survey.

NOTE: 46 responses.

NOTES: 32 responses. This question was only posed to those currently trying to hire or recall workers.

NOTES: 24 responses. This question was only posed to those noting a lack of available applicants/no applicants.

NOTE: 47 responses.

NOTE: 47 responses.

Special Questions Comments

These comments have been edited for publication.

• Business has been soft the last three years. Business activity has increased in 2021, but business history has prevented us from increasing our line of credit to keep pace with revenue opportunities.