By Timothy Aeppel

ELKHART, Ind. ELKHART, Ind.

This is the moment when the RV Capital of the World will be revealed.

As with many manufacturing centres in America, the area of northern Indiana located about 100 miles (161km) east from Chicago has been struggling to fill factories jobs since the pandemic. This is due to a boom in recreational vehicles that dominates the region’s economy.

The United States created new manufacturing jobs at an average rate of 32,000 per month in the last year. This is the fastest pace for a quarter-century, but regional differences are significant. The Labor Department reports that 51.5% of Elkhart’s total workforce is involved in manufacturing and factories, while 8% nationwide.

According to Labor Department figures, the December jobless rate for the region was 0.9%. It is currently slightly higher than the national average.

This is why many Elkhart businesses were shocked to hear that Amazon would be opening a large fulfillment center in addition to a smaller, last-mile station.

Bob Martin, Chief Executive of the company said that he was not completely clear about how to add 1,000 more jobs in this labor-strapped market. Thor Industries (NYSE:) Inc is the nation’s biggest RV manufacturer, with plants scattered around Elkhart.

Employers of all kinds are scrambling to keep up with the demands for new jobs. Amish Shah is the chief executive officer of Kem Krest. Kem Krest distributes automotive chemicals and other accessories like paint pens that are used to fix scratches in cars.

Shah estimated that his 700-employee firm is down 100 workers. He also noted that he’s gone to extremes in order to retain and make employees happy. For example, the company opened its first medical clinic in its warehouse last week. It also held a contest to reward workers who had maintained perfect attendance for six months. The top prize is: Top prize: A Chevrolet Trailblazer SUV for one year, usually selling for more than $26,000

Shah said that Amazon has already called people to offer work and added that nobody had yet jumped ship.

BOOM

Amazon’s new warehouse has been built from a field of mud in one of the most visible spots of County. It is located across from the RV Hall of Fame and Museum. The warehouse will boast 14 football field-sized spaces when it opens next spring. Although the other facility is intended for last-mile delivery, it has not yet been completed but will open next year.

Amazon did not discuss its concerns about Elkhart’s labour market. It also declined to comment on whether Amazon expected to pay higher wages to lure willing employees.

The company is being criticized for poor working conditions at its plants and fighting unions to organize its employees. However, it has maintained that their starting salary of $18 an an hour. Last week, workers in an Amazon New York City facility voted for a union, despite opposition from the company.

When creating new jobs, the company emphasizes other benefits such as health care and assistance for continued education.

Andre Woodson (Amazon spokesperson) stated in a statement that “Amazon is proud” of the job creation.

Elkhart has a tight labor market because of the RV boom. This industry is booming as Americans seek new ways to travel and avoid strangers in the aftermath of the pandemic.

Elkhart County is home to between 35,000 and 40.000 commuters each day. This gives the otherwise rural roads a steady supply of traffic. According to state Department of Workforce Development the county has a total workforce of 115,000. Therefore, commuters are essential for filling the existing jobs which were just below 140,000 as of September. Federal employment data shows that the number of workers in the county was only about 115,000.

The numbers don’t seem to make much sense. “They already have far fewer jobs than workers,” stated Michael Hicks of Ball State University, who is an economist and studies Indiana’s industrial economies.

Who WILL COME?

The key question here is how much Amazon’s jobs are going to pay. Local officials believe that Amazon will require the company to pay higher than $18 per hour, due to the tight labor market. Elkhart County was ranked No. The latest Labor Department data show that Elkhart County ranked No. 4 in the United States for year-over-year wage growth, as per the third quarter 2021.

Chris Stager, President of Elkhart County Economic Development Corporation said that he believes they would do whatever it takes to satisfy the demand for labor.

Stager, along with other officials from the area, said that even without a large new employer, there is a huge challenge facing the region. Elkhart has seen a decrease in housing supply, and many companies have begun to expand in other parts of the country in an effort to get enough employees.

Thor Industries is among them. In its most recent expansion phase, Thor Industries built several factories 30 miles from Sturgis in Michigan. It also recently purchased a Alabama-based company, which gives the company access to more labor.

Martin, Thor’s CEO said that Amazon is competition and competition can make you a better business.

However, analysts think that big RV companies are better protected than most other types of employers from the possibility of losing their workers to Amazon. In order to boost wages in good times like these, the RV industry employs a wage structure with production-driven incentives. In many cases, assembly workers can earn $50 per hour.

It is unclear how long this boom will last.

Pete McCown of the Community Foundation of Elkhart County stated that “the music will stop at some time.” Although there are no signs of major decline, rising gas prices and interest rates may put a damper upon the sector.

‘A GLOW’

There are many Elkhart workers who could get an increase by moving to Amazon, including those who make less from restaurants or other low-paid services.

Labor Department data last week revealed that the average wage for food-service workers in the county was $12.46/hour. All told, half the county workers earned less that $19 an hour. Although that average wage is now $18 an hour, the number of workers in the county would be less than Amazon’s advertised starting salary.

Jason Lippert is the chief executive at LCI Industries (NYSE :), which supplies the most parts to the RV industry. He said that there are many companies offering good work conditions and competitive salaries in the region. LCI was also included.

He said that restaurants get the most attention because they make the least.

He thinks Amazon will burnish the region’s “glow.”

“Others may look at Elkhart and see a big tech company.