ASA’s PHCP/PVF Labor Study Shows Progress in Some Areas and Continued Challenges in Others

ASA’s PHCP/PVF Labor Study Shows Progress in Some Areas and Continued Challenges in Others

Eight years after ASA conducted its first national labor study of the PHCP/PVF industry, the Association has repeated the study to understand the current state of the industry’s workforce and what changes have occurred since the first study in 2015.

The 2015 study illustrated the aging workforce in the industry and the need to attract potential employees to make up for the large number of anticipated retirements.  This resulted in the creation of ASA’s Project Talent, a strategic initiative to attract and grow the number of talented workers across the industry.

The latest study’s results show that more than 31 percent of the industry’s workforce are over the age of 55 with almost 10 percent 65 years old or older.  This is compared to 2015 where 26 percent of the industry’s workforce were over the age of 55 and nearly six percent 65 or older.

When you consider there are approximately 373,000 employees among PHCP/PVF distributors, manufacturers, and independent manufacturers reps, this means there are 116,000 employees who have reached or are close to reaching retirement.  ASA members report that they expect 27 percent of the workforce or approximately 101,000 people to retire in the next 10 years with 41,000 of those in the next five years. 

Furthermore, the number of employees between the ages of 19 and 24 has increased from six percent in 2015 to more than 10 percent now signaling the industry is working to address the large number of expected retirements.

PHCP/PVF Workforce Becoming More Diverse

Evident by the growth of ASA’s Women in Industry division and the increase in women attending industry events, 62 percent of ASA members reported the number women employed by their firms has increased since 2015 with 30 percent reporting that it’s stayed about the same.  Slightly more than one in five PHCP/PVF industry workers are women.

In addition to the growing population of women in the industry, similar increases are being seen in the number of Hispanic, African American, and Asian workers.

Full-Time Employees Still Dominate the Industry

Despite the evolving make-up of the U.S. workforce, the study also shows that more than 90 percent of workers in the industry are employed full-time.  This is consistent with the results from 2015.

This is notable given the growing number of people taking part in the gig economy made up of short-term employment, contractual jobs, and independent contractors. Gig economy workers have more than tripled since the 2015 study according to a study conducted by the University of Chicago.

Future Workforce Skill Needs

While the need for general administrative staff, drivers and warehouse workers dominates current and future needs, the study shows a small shift in the skills needed in the future.

The study shows that ASA members are expecting needing slightly less outside salespeople, but more counter salespeople and a consistent number of inside salespeople.  This is consistent with data recently reported in ASA’s Voice of the Contractor study that illustrates the changes in contractor buying habits.

Additionally, ASA members are reporting a more significant need for customer service and technical support staff in the future.

The Need for Automation and Better Use of Data

Aligning with the future need for more technical support staff, ASA members reported the high degree of importance for sales, marketing and office automation, data analytics and management, and e-commerce skills moving forward.

Less important, but on the radar of members is how artificial intelligence (AI) and warehouse robotics will affect future staffing.  These are often considered to be significant investments and tools for only larger companies. However, as these technologies progress and the understanding of how they can benefit companies becomes clearer, it’s expected more ASA members will begin embracing them.

This information and more details were recently the subject of a webinar for all ASA members.  Also, a copy of a full written report of the study will be distributed to members.

The PHCP/PVF National Labor Study supports the objective of ASA’s Project Talent to develop and implement a program to attract and grow the number of talented workers taking advantage of fulfilling career opportunities in the PHCP/PVF Industry. Project Talent is a part of ASA’s Employee Recruitment and Education goal, one of four mega goals included in the Association’s strategic plan.