Frankenmuth

I t's a question that's being asked frequently. Demand is high for nearly everything... Cars, lawn mowers, and appliances, just to name a few. But while demand is high, the supply of many goods is low. You may have noticed locally that sales lots don't have the same amount of inventory they did a year ago. There are a number of factors contributing the current situation, one being that people have more disposable income than they are accustomed to, so spending is up. There are political challenges and Covid-19 restrictions still impacting production, importing, exporting and even domestic shipping of goods. This is even true with local favorite Hofbrau Beer. It's been a staple on the menu at Bavarian Inn for many years, but is currently unavailable due to shipping issues as the beer comes directly from Germany. Frankenmuth certainly isn't alone in this unusual business environment. The Hofbrauhaus in Las Vegas shared their struggles in a news article about how the cost of shipping containers and lack of truckers have increased costs significantly, but also the lead time to get their own product to the US from Germany. What used to take 6 weeks is now taking 3 months. All of this is compounded with a challenging labor market. It's the biggest challenge facing many of our businesses right now, especially in sectors that rely on minimum wage front line workers to provide services at a low cost. Starting wages at many businesses, especially fast food establishments, have increased significantly and some are even offering hiring bonuses if the employee stays a certain amount of time. Still, the struggle to get enough workers continues. It's not uncommon to see the lobby of restaurants like McDonald's closed temporarily due to lack of staff, or for them to have restricted hours due to staffing shortages. We have some restaurants that have opted to close 1-2 days a week because they don't have enough staff to work all the necessary shifts. The slower times in restaurants used to be a breather for staff to get recharged, but because demand continues to be high, slower times are few and far between. Burnout is at an all-time high. Some businesses have even closed a day to take care of their very valued staff and give them the break they need. Hours at many of our shops have also been reduced to limit the number of shifts needed and to offer more appealing hours to potential employees. There are many contributing factors to the labor market challenges as well. Government incentives for the unemployed are certainly making the situation worse, especially for front line or entry level positions. That's compounded with the fact that more people have left the workforce all together due to a rising number of retirements and many women leaving the workforce post-pandemic to help address educational and family needs in their homes. The Frankenmuth Chamber is organizing educational seminars for businesses to help them adapt to the new hiring environment. While the Chamber prides itself on being able to tackle issues that impact our collective business community, this is one they can't fix. It will take time for some of the external factors to shift again, but there are ways many businesses can align themselves to navigate the bumps in the road. While some of this sounds like doom and gloom, it's important to remember that the majority of businesses in Frankenmuth are locally- owned and operated which means they are directly connected to the challenges facing their businesses. They are also more agile and able to adapt quickly to the changing environments they face. We are blessed with so many business owners who, in the face of challenge, reinvent themselves and are committed to figuring it out. That is likely why we have gained more new businesses in a time when we thought we'd see more loss. The hardworking and dedicated business owners of Frankenmuth are tired and sometimes frustrated, but remain optimistic and ready to tackle any issue. Another positive indicator is that demand for travel, especially to destinations that are smaller or perceived safe, continues to soar. This is great for Frankenmuth as a significant portion of our local economy is driven by tourism. The future continues to be bright for Frankenmuth. Many have asked how can they help. Simply having an awareness of the changing situation and making an SO, HOW'S BUSINESS? BUSINESSES IN FRANKENMUTH ARE LOCALLY-OWNED AND OPERATED WHICH MEANS THEY ARE DIRECTLY CONNECTED TO THE CHALLENGES FACING THEIR BUSINESSES. THEY ARE ALSO MORE AGILE AND ABLE TO ADAPT QUICKLY TO THE CHANGING ENVIRONMENTS THEY FACE. 6

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