Calder Brothers Corp. is under pressure to raise wages after rivals lured away some of its workers. With willing workers in short supply across the United States and companies frantically vying for them, Calder knows his firm cannot hold off pay increases. At the same time, however, soaring prices for the raw materials used in the asphalt paving machines his company builds have left it with no wiggle room. American manufacturers of all sizes are grappling with the strongest inflationary pressure in three decades following a relentless rise in raw-materials prices in the past 13 months, Reuters reported. Harley-Davidson Inc. said last week it would impose an average pricing surcharge of 2% from July 1 on select models sold in the United States to mitigate the cost pressure, which shaved off 5 percentage points from its profit in the latest quarter. Yet the motorcycle maker expects earnings to suffer in the second half of the year. Higher commodity prices are eating into corporate budgets, making it tougher for manufacturers to compete in a tight labor market. American manufacturers have long complained about labor shortages. But until this April, wage gains for production workers failed to keep pace with the overall trend in the economy. This year, the U.S. labor supply has been further limited by a combination of enhanced jobless benefits, lingering concern about returning to work, childcare issues and pandemic-related retirements as well as career changes. The number of job openings at manufacturers is at the highest level in two decades, according to data from the U.S. Labor Department. Adding to the challenge, more workers are quitting their jobs than at any time in at least two decades. Meanwhile, a booming economy has sparked a competitive frenzy as manufacturers are now jostling for workers with companies like McDonald's Corp. and Amazon.com Inc., which are offering higher wages as well as signing bonuses. As a result, employee wages are projected to rise over the next 12 months at the fastest pace in two decades, according to a survey by the National Association of Manufacturers.
