Workforce, supply chain issues are problems in South Dakota, Thune says

Provide chain points and the wrestle to seek out staff to fill open jobs are the 2 matters Sen. John Thune, R-S.D., hears about chronically as he travels the state.

Each got here up throughout a Thursday go to to Banner Engineering in Aberdeen.

Banner Chief Working Officer Andy Barnauskas stated provide chain challenges have meant what was a 16-week lead time to order the elements Banner must make numerous digital components is now 70 weeks. However, he stated, the corporate is adapting and improvising as these challenges come up.

Whereas Banner has seen progress in previous 12 months, Barnauskas stated it might have been larger if not for provide chain points.

Banner Engineering provides 45,000 sq. ft

Banner lately added 45,000 sq. ft of manufacturing area to its Aberdeen plant, and area beforehand used for components storage will quickly turn into manufacturing area.

Senior Human Assets Supervisor Angella Miller stated a current enhance in wages has helped with a brand new inflow of hires who will likely be going by means of the week-long onboarding course of within the coming weeks.

Through the subsequent three weeks, Miller stated about 30 folks will likely be added to Banner’s Aberdeen workforce. With extra Spanish-speaking workers, Miller stated, the enterprise can also be additionally hiring somebody to assist with Spanish translation.

May a visa program assist?

In relation to employment options, Thune speculated {that a} visa program could be a useful choice. He stated one firm he visited lately had workers from Ukraine and the employer was impressed with their work ethic.

Thune stated there are particular visa applications for short-term workers within the service business and agriculture jobs, however added that there’s a want for an additional visa program.

Barnauskas additionally introduced up analysis and improvement tax credit, which, he stated, have been an enormous profit for Banner, permitting the corporate to right away reinvest in product analysis and improvement.

These tax credit are a part of the 2017 tax act.

However, Thune stated, the parameters of that program will quickly be altering. As a substitute of instantly seeing the credit score, he stated, firms must unfold it out over a 10-year interval.

“It is an enormous incentive,” Thune stated of the present program.

He stated there’s been an effort to make that program extra everlasting, however there’s additionally political resistance to codifying parts of the 2017 tax act.