Rising revenues despite labour shortages in the food industry

A poll conducted in October 2023 among food industry entrepreneurs revealed a generally optimistic outlook. At that time, 26.7% of business owners anticipated increased revenues in the coming year, outweighing the 7.0% who expected a decline. This optimism extends to staffing forecasts, with nearly 80% expecting to maintain their current workforce levels into the next year. Over 15% even projected workforce expansion, while roughly 7% foresaw a reduction in staff numbers. These insights are part of a broader analysis of recent economic data by our editorial team.

Food industry upbeat about Q4

Early October predictions for Q4 revenue in the food industry were largely positive. An unprecedented peak in optimistic sentiment was recorded, with 24.1% of entrepreneurs expecting revenue growth, 68.9% predicting steady revenues, and only 7% anticipating a decline. Notably, confidence in export growth was lower than for domestic sales.

Entrepreneurs’ expectations for order intake in Q4 mirrored their positive revenue outlook: 66% anticipated steady orders, 21.4% expected an increase, and just 6.1% predicted a decrease. At the start of October, the order position stood at 2.8 months, slightly down from 2.9 months at the beginning of September.

Anticipated price increases

As of early October, about 20% of food industry entrepreneurs foresaw a rise in prices in Q4, while approximately 5% expected a decrease. The majority, about 75%, predicted price stability.

Labour shortages impacting 30% of food industry businesses

When asked about production impediments, 33% of entrepreneurs reported no constraints. However, over 30% indicated production limitations due to workforce shortages. Insufficient demand affected 17.5% of businesses, and financial limitations were cited by 16.2% as impacting production.