Top Wisconsin businesses wrestled with worker shortage, supply chain issues during 2021

The coronavirus pandemic in 2020 caused businesses to make adjustments such as allowing their employees to work from home or work flexible hours.

In many cases, companies adjusted their hours or closed.  

When 2021 arrived, vaccines were available to combat COVID-19 but employers faced new challenges and supply chain issues.  

During the pandemic, workers were asked to make drastic adjustments. Now many workers are reconsidering their options and that puts companies in deep competition with each other, across sectors, for employees.  

That's part of the reason so many companies participate in the Journal Sentinel's Top Workplaces for Southeastern Wisconsin survey. Being named a Top Workplace helps an employer stand out.

The pandemic upended many industries and among the hardest hit was hospitality, particularly restaurants.  

Amy Kerstein, administrator for Black Shoe Hospitality which operates Maxie’s, Blue’s Egg and Story Hill BKC, all in Milwaukee, and Buttermint in Shorewood, said some workers left the hospitality industry entirely. Black Shoe is searching for those who are willing to learn. 

“Pre-pandemic we operated seven days a week. We currently are on a five-day model because staffing our restaurants is such a challenge,” Kerstein said. “We are slowly growing our staffs and will open a sixth day.” 

New Berlin based, family owned, ITU Absorb Tech has been based in Wisconsin for nearly 100 years, providing environmental industrial laundry services. The pandemic caused “significant labor shortages that negatively affected our customers and our own sales, and service operations,” said Mariah Eiben, human resources administrative assistant for Absorb Tech. 

“In the current climate, workforce shortages are inevitable. In the past year, like many other companies we have been compelled to address staffing challenges,” Eiben said.

“We work in a very team-oriented environment. Employees are assisting in areas they don’t normally work in order to meet our customers’ needs. We have added sign-on bonuses to attract more candidates to fill our openings and increase staffing levels.” 

With unemployment so low during much of 2021, businesses are having issues finding the bodies needed to fill job openings.  

Companies like ITU Absorb Tech have been reevaluating how employees are being treated and listening to concerns they raise. 

“Most importantly, employees don’t leave jobs because of companies, they leave because of people. So we have to ensure we have the right people in the right seats at all times and provide a culture people want to work in,” said Kristen Tracy, public relations manager for Cousins Subs at its Menomonee Falls corporate office.

“We celebrate successes, recognize milestone work anniversaries and invest in our teams personal and professional development.” 

Supply chain issues across industries

Some companies have benefited from the workforce changes. 

Dean Stier, marking director for IEWC Global Solutions in New Berlin, said the company has grown during the last two years. IEWC is an international distributor of wire, cable and wire management products.

“We feel that IEWC is actually benefiting from the record number of people rethinking their careers and professional paths,” Stier said.

“Our ongoing efforts to create an empowering place to work are paying off as we attract talented people looking for something better. IEWC has a fantastic culture and a very generous benefits package, including the (employee stock ownership plan), that creates an incredible environment.” 

Challenges arose for IEWC after businesses started opening back up. 

“After the initial COVID shutdowns ended, manufacturing came back in a big way and with it, a crush of demand. Fortunately, IEWC was very careful in managing costs during the downturn and, in fact, invested in those areas that would make us stronger in the rebound,” Stier said.

“We also worked very closely with suppliers to better understand their specific challenges and develop strategies with them to help us both become stronger as demand improved. All of that allowed us to remain nimble in our strategic approach to managing an uncertain supply chain.” 

Supply chain concerns

Supply chain disruptions have been a major concern with some companies incorporating delays into their planning.  

“We experienced supply chain issues in all our product categories,” said Krista Hanamann, human resources and safety manager for Illing Packaging in Richfield.

“We use close communication with our vendors and customers to ensure we have the right materials at the right time. We expanded warehouse offerings to accommodate targeted growth amid the shortage and broadened our manufacturing base," she said.

"We provide creative alternatives to our customers where there are pinch points. For example, when tin paint cans started having supply chain issues and pricing escalated, Illing brought on a line of decorated plastic paint cans that reduce cost and lead time and better secure supply for our customers.” 

Black Shoe Hospitality also experienced supply problems.

 "We have had to look elsewhere other than our normal food, beverage and product suppliers to get some of the very basic products that we use daily," Kerstein said. "Costs have skyrocketed."

Viking Masek Packaging Technologies in Oostburg, points to its versatility, proactive planning and adaptation that have enabled the company to grow.

"We invested heavily in keeping equipment and components in stock at our U.S. headquarters to alleviate supply chain uncertainties, enabling us to get our clients what they need faster than the competition. We absorb some of the risk of carrying contingency inventory to meet the needs of our customers," said Danielle Ohl, marketing specialist.