Businesses across industries are grappling with an increasingly complex landscape. As a recruiter in the fresh produce and FMCG sector, I hear from operations and leadership teams daily about the mounting pressures they face in this environment driven by a combination of inflationary pressures, political changes, and evolving market dynamics. Here’s a snapshot of some key challenges impacting companies and the workforce today:
Margin Erosion: Inflation in raw materials, packaging, utilities, and labour is impacting margins. Companies are implementing better procurement strategies, exploring renewable energy investments, and reviewing contracts to mitigate these challenges. These strategies can help secure a larger profit margin which is essential in the battle to stay competitive.
Political Uncertainty: Legislative changes, including new labour laws and the unpredictability around budgets, add layers of complexity to long-term planning. Now with the budget being released last week it will be interesting to see how businesses will tackle the new challenges they will be facing in the new tax year.
Competitive Edge: In an ever-competitive market, the phrase "don’t sleep at the wheel" couldn’t be more relevant. Understanding market trends and consumer demands is vital for success.
Operational Investments in Technology: Strategic investments in capital expenditure (CAPEX) are necessary to enhance capabilities and cut operating costs. Transitioning from outdated processes to smarter, automated solutions allows businesses to gain greater control and respond more effectively to market changes. But this transition isn’t always straightforward—automation isn’t simply a tech upgrade; it’s a shift in operational mindset and with that come all new metrics which need to be measured and analysed.
Climate Challenges: Climate change is affecting production, logistics, and quality control. Recent extreme weather conditions in Winter and Spring have drastically affected yields in arable and berry growing environments whilst a significantly hotter summer in 2023 led to increased operational costs in coldstores. These unpredictable weather patterns aren’t just a seasonal inconvenience, they’re a major operational risk.
Cybersecurity and AI Risks: As technology evolves, so do the risks. Companies that neglect to invest in cybersecurity and AI strategies may find themselves vulnerable to significant threats.
Talent Acquisition & Retention: In today’s competitive environment and with UK unemployment sitting around 3.8%, fostering a culture of high performance and appreciation is key to attracting and retaining top talent. Businesses with a clear vision and a strong commitment to employee development are thriving; others are feeling the pinch. High salaries are often enough to attract talent initially but if you are looking to retain this as mentioned previously challenge and development opportunities are the best way to guarantee yourself as an employer that people want to work for. Gen Z are demonstrating that they are attracted to employers with clear and thought-out values that are lived and breathed, rather than posted on a wall or homepage. Topics such as sustainability and inclusion are typically high on the agenda. The other main focus for this generation appears to be having a clear career pathway. Whilst this can be misinterpreted as wanting “everything now”, we are seeing that candidates are less fearful of working hard, rather wanting to ensure that their hard work pays off and is rewarded. Less a guarantee and more of a vision of what they can expect from a strong work ethic within your organisation.
The fresh produce industry is navigating a complex landscape filled with obstacles and opportunities. As we move forward, it’s crucial for businesses to remain resilient, adaptive, and proactive. I recently read an article about how the FPC and HTA are urging the Government to make drastic changes to the border control processes for Fresh goods coming in as UK businesses are encountering problems such as rising logistics costs, increased waste, damaged goods and delays. These issues are straining business relationships, eroding confidence in border processes, and, ultimately, tarnishing the UK's business reputation.
As a recruiter within the industry, we have an external point of view and will try to consult our clients where possible. Although I would never class myself as an expert in any Operational matter, I have learnt a lot from speaking to Operational professionals five days a week. So, if there’s ever a question about what your competitors may be doing or what you could be doing better, we are only a phone call away.
