Baking industry’s workforce shortages only expected to worsen

It’s no secret — the baking industry is grappling with severe labor shortages, leaving many manufacturers unable to fill shifts, properly maintain equipment, satisfy throughput demands and more. 

According to Baking & Snack’s 2024 Capital Spending Study, conducted by Cypress Research and sponsored by BEMA, 73% of baker respondents said attracting and retaining a quality workforce is their biggest challenge for the next 12 to 18 months, outpacing all other concerns, including increased raw material costs and inflationary pressures. 

Unfortunately for many of these bakers, their workforce woes won’t be a short-term issue. 

“Current workforce shortages are expected to worsen over the coming years, with an expected 53,500 unfilled jobs by 2030,” said Rasma Zvaners, vice president of government relations, American Bakers Association (ABA).  

The industry faces multiple headwinds in overcoming these shortages. The skilled labor needed to operate increasingly advanced baking equipment is scarce and highly competitive, observed Bill Paterakis, chief executive of H&S Bakery, Baltimore.

Moreover, fewer people today are attracted to roles in the bakery environment, said Jeff Dearduff, owner of JED Mechanical Services and Baking & Snack Pro Tip columnist. 

“We know that the jobs in the baking industry are not all that appealing to those who don’t know something about it before they go in,” Dearduff said. “The effort required to do some of the roles, especially in some of the older technology bakeries, is far beyond what most of today’s workforce are willing to put in.”

Long hours, night and weekend shifts, and repetitive or physically demanding jobs are a tough sell to many in the workforce today. Even when bakeries find new employees, many are realizing that these workers have little attachment to their roles compared to previous generations — and have no problem quitting quickly. 

“What we experience is a lot of people ‘test driving,’ ” explained Barbara Aker, corporate director of More Than A Bakery, Versailles, Ky. “They come in and test drive for a few weeks, and then are like ‘I can go find a job somewhere else.” 

Simply put, manufacturing jobs don’t have the appeal they used to, Aker said. This has forced bakers to evolve to remain competitive in the labor market and keep production going strong.

 A growing number are accomplishing this by welcoming in segments of the workforce that many others have turned their back on. This includes the formerly incarcerated, immigrants and refugees. Hiring from these communities can help bakeries solve their labor struggles while also making a meaningful impact on their employees’ lives and building a more dedicated workforce.

“Opening our doors to individuals whose doors are often closed due to the traditional hiring practices of background checks/drug tests has been Rubicon Bakers’ talent competitive advantage for years,” said Garrett Pounds, chief operating officer of the Richmond, Calif-based bakery. “Giving our community a chance to change their lives by offering steady employment has been a very successful staffing formula.”

This article is an excerpt from the June 2024 issue of Baking & Snack. To read the entire feature on Workforce, click here.