ST. LOUIS — A recent survey of business leaders found that 95% have raised wages to attract or keep employees.
St. Louis-based Stifel Financial Corp. said Monday that 81% of those surveyed said prices are being increased or will be soon to cover part or all of those higher labor costs.
"CEOs are really sweating it and they're having to pay up for labor, which they by and large are not complaining about," said Michael Kollender, Stifel’s managing director and head of consumer and retail and diversified industrials investment banking. "It's more about...filling the employment and then determining how much of those costs they can pass on to the end consumer or buyer of their product to maintain their margins."
The online survey of 57 corporate executives, business owners and private equity investors was conducted from Aug. 2-16. It focused on business people in consumer, retail and diversified industries.
The survey found that 86% of respondents said labor constraints were the biggest risks to their businesses.
Respondents were asked how they planned to address the long-term implications of the current labor market. They could select more than one response. The results were:
- 82% said by increasing investment in technology and automation.
- 54% said by increasing emphasis on acquisition and opportunities that “promote operational efficiency.”
- 23% said by shifting labor to lower cost regions.
- 18% said by divesting operations with “inelastic prices that constrain margins and growth.”
Kollender said while most companies are increasing investment in technology and automation, the survey found that 54% of respondents are also emphasizing potential acquisition opportunities that promote greater operational efficiency.
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