Staffing and supply chain issues remain as Covid stays active

Staffing and supply chain issues remain as Covid stays active

While the coronavirus keeps reminding the country, and Madison County, it’s not through with us as recent case numbers and hospitalizations rise in wake of the new sub-variant BA.5, the original COVID-19 is still having an impact.

Though perhaps not as significant as at the height of the pandemic, staffing and supply chain issues that began at the onset of the virus linger.

The restaurant and fast-food companies appear to be the hardest hit when it comes to workforces with “Now Hiring’’ and “help Wanted’’ signs dotting the landscapes outside and on windows of those businesses.

According to a bar manager for a national chain restaurant in the south part of the city, who remained anonymous due to corporate standards, expressed doubt that federal government stimulus checks given out earlier during the pandemic were enough to sustain individuals or families.

“That can’t last,’’ she said. “I literally don’t know how people are paying bills without working. I don’t know if people found another field to go to.’’

The latter is one theory as to why businesses seek a return of employees following pandemic shutdowns. The reasoning is jobs might have opened for higher wages than can be found in the food services and other lower-wage industries.

“We’re still seeing across-the-board a competitive labor market and talent landscape for sure,’’ Huntsville-Madison County Chamber of Commerce Vice President of Workforce Lyndsay Graham said. “One of the things that we have seen, we actually got data last month from the state level, and one of the things that we focus on a lot in addition to the unemployment rate is the workforce participation rate. So what we want to see is the greatest number of people that are able to be in the workplace actively working or looking for work.

“So we actually saw that labor-force participation rate increase by about a percentage point for our region over the last month. Seeing that number go up is a good trend for us, because it means more people are out there actively seeking employment opportunities and hopefully looking to get back into the workforce even in the case of those that maybe have been out of it and therefore wouldn’t have been captured in those unemployment numbers that we’ve been looking at.’’

Despite reports of the unemployment rate at a record-low 3.6 percent nationally for the past four months, industries including food services continue to report a lack of workers.

Alabama was at a 2.6 percent unemployment rate in May, according to U.S News and World Reports. The White House released a statement that same month saying Alabama was among 17 states where workers are “less likely to be unemployed than any other time on record.’’

The White House also reported in May that none of the 50 states reported an increase of unemployment and those payments were the lowest in 52 years. Those numbers suggest that workers have simply tried to climb the wage ladder instead of returning to lower paying jobs.

However, “Staffing is getting better,’’ an unnamed manager of a national restaurant chain in north Huntsville said.

“It’s not too bad in the back end (kitchen), but it’s hard to find servers.’’

Supply chain improving

Ships no longer sit idle at sea outside docks loaded with cargo as they did months ago while the globe experienced a supply-chain issue caused by the pandemic.

Goods are still being shipped at higher rates – Fleet Feet owner Suzanne Taylor reports a fee of $15 that once was $5 – but shortages have been minimized. 

And higher gas prices, a burr in the population’s collective saddle recently, have reportedly gone down for 30 straight days. Costco, for instance, had regular gas per-gallon listed at $3.79 July 15 and the same day a station in the city’s Five Points neighborhood had it at $3.99.

“(Supply chain) was a real thing for us,’’ Taylor said. “We’re in a good position now. Last fall, we actually overbought about 2,000 pairs of shoes and put them in our garage so we would have them. The first quarter (this year) was really bad. It was hard on our inventory. We were worried because it creates an upside down situation on your cash flow, but it paid off and we went through those pretty quick. 

“All of the shoe manufacturers for the most part, they may be like three weeks behind on delivery but not six months. There’s no stuff sitting on boats anymore. That was real.’’

Rising costs, like shipping, are not the fault of retailers.

“You’re kind of at (the suppliers) mercy,’’ Taylor said. “It trickles down to the consumer. Our costs go up, they’re costs go up. And everything we sell is suggested retail. We have limitations on how much we can mark down things.’’

Hangovers from the height of the pandemic exist.

“The cost of goods are way up,’’ the north Huntsville restaurant manager said, “and we are having trouble getting paper goods and some liquors.’’

Virus lives on

The COVID virus has been and remains “real’’ in the Tennessee Valley and nationwide. It keeps mutating and is currently introducing its latest strain BA.5 that has caused cases to rise.

According to Huntsville-Madison County Emergency Medical Agency Director Jeff Birdell, the number of cases is rising but not enough to overwhelm hospitals or their staff.

However, he said, case numbers “have been going up a little bit.’’

In the middle of July, the seven-day average of new cases was up at 162 but far from the peak number of 1,048. And while there were only eight people hospitalized with Covid weeks ago countywide, and there are 64 as of June 14, that’s far less than the peak of 300 at the height of the pandemic.

“(64) is not a great number, you don’t really want that number,’’ Birdwell said. “But, the important thing is the deaths are significantly reduced.’’

Return of mandates?

Redstone Arsenal released news recently that there would be mandatory masking at all base facilities in lieu of rising positive test cases in Madison County, which rates the state’s high-risk areas among several statewide. 

This order was widely maligned on facebook, including statements like: “This is beyond stupid.’’ “Ridiculous beyond measure.’’ “Heaven forbid anyone catches a cold.’’ 

North Alabama district medical officer for the Alabama Department of Public Health (ADPH) Dr. Wes Stubblefield is in touch with those sentiments and for now doesn’t see a widespread return to masking.

I don’t know if there’s really much of a public interest for masks mandates at this point,’’ he said. “Institutions can act in certain ways, but what the Centers for Disease Control (CDC) and the ADPH recommends – we don’t make policy but a direct recommendation.

“I just don’t think that there’s an appetite for (mandating masking) in our state, I really don’t.’’

He also adds that the data does show a rise in COVID cases.

“We do know the trend where we’re heading,’’ Stubblefield said, “which is this gradual rise.’’

Meanwhile, staffing and supply-chain issues appear to be easing. Fleet Feet, for instance, counts on summer employees who have sometimes began working there in high school and continue to return from college summer breaks.

Taylor is at once optimistic and cautious. While her store didn’t experience the so-called Great Resignation, there were some older workers who chose not to return once the pandemic began.

As for supply, shelves locally have never been vastly empty despite national and social media reports and currently only a few holes are seen here and there at grocery and large retailers.

The big picture does not appear blurred.

“Come August, we’ll probably be short-staffed again,’’ she said. “Apparel is still an issue as far as supply chain. That’s not as important, maybe it is for those of us who like to look good, but we’ve got clothes. People need shoes.’’

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