Forward Janesville - TheReport - Second Quarter 2021

SECOND QUARTER 2021 • 7 increased demand have sent prices through the roof. A May 30 Wisconsin State Journal story states, “The price of lumber reached a record high of nearly $1,700 per thousand board feet in early May, marking a more than 350 percent increase over the course of a year . . . The price of lumber alone has added more than $35,000 to the price of an average single-family home, according to the National Association of Home Builders.” Our unprecedented recovery is creating some unusual challenges. Has anyone driven by a car dealership recently? Auto dealers across the nation are dealing with unprecedented shortages in new car stock. The reason? A global shortage of computer chips that power everything from automobile safety systems to engines and brakes has forced automakers to slash production. The reason for the chip shortage? Demand from manufacturers of just about every kind of electronic device. (Remember how much you were on your phone during the pandemic? So was everyone else.) There are dozens of examples of these challenges. Here’s a good one: As many of you know, I am the architect of the pod system that was utilized for the Music at the Marv summer concert series in 2020. The pods were 10’ by 10’ white squares spray-painted on the grass to allow spectators to enjoy the concerts safely. I fully expected to use the pod system in 2021 but was told that we would have to fi nd another paint color, as there are shortages of white landscaping spray paint. (Remember that landscaping project you had done during the pandemic? Everyone else did one too.) Fortunately, the city allowed us to scrap the pod system in 2021, so crisis averted. The strength and longevity of our recovery will be tied to getting people back to work. Businesses simply cannot hire workers fast enough right now. According to the June 2 Wall Street Journal story, “the rate at which workers quit their jobs—a proxy for con fi dence in the labor market— matches the highest going back at least to 2000.” Businesses need workers to produce new cars, computer chips, white landscaping spray paint, and everything in-between. The workforce challenges facing businesses as the pandemic subsides are obvious. I’ve seen ‘Help Wanted’ signs on buses, billboards, banners, and buffet boxes. To fully understand our area’s workforce challenges, we are organizing a series of industry-speci fi c roundtable discussions with employers. In the meantime, Forward Janesville will continue to do what we do every single day: do everything in our power to make this community a place where people want to live and work. The last 18 months have been unlike any we have experienced in our lifetimes, and we now may be entering a new era: The Roaring Twenties. Dan Cunningham DOW JONES INDUSTRIAL AVERAGE IS UP NEARLY 18 PERCENT FROM ITS PRE-PANDEMIC PEAK IN FEBRUARY 2020 THE WALL STREET JOURNAL STATES THAT HOME PRICES HAVE SURGED BY 14 PERCENT SINCE FEBRUARY 2020 HOME PRICES IN THE JANESVILLE- BELOIT MARKET ARE UP 55 PERCENT SINCE 2017