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OCTOBER NEWS Labor Trends May Challenge Industry Economist: Wages, lack of housing will force Napa to get competitive N apa, Calif.—Economist Robert Eyler predicts the labor situation in Napa Valley may get increasingly challenging, forcing wineries to pay higher wages and adopt more mechanization. winesandvines.com Eyler, the president of Economic ForenLearn more: sics and Analytics and a professor at SoSearch keywords "Napa labor." noma State University, delivered his sobering message at the Aug. 29 Impact Napa conference hosted by the North Bay (California) Business Journal. Eyler's forecast results partly from the increasing demand and wages for workers in nearby counties, plus limited housing in the Napa Valley. Continued improvement in the Mexican economy, which is growing at 3% per year, and changes in immigration policy and enforcement would only make things worse, Eyler said. The good news is that many people want to work in Napa, so there's not likely to be a worker shortage developing, but employers may have to pay them more. More and more workers are coming from outside the county—including the contract workers. Relatively cheap fuel encourages them to come from the larger population centers nearby, while high housing costs in Napa force many to live elsewhere. Eyler said one clear trend in Napa Valley is that the rise in grape tonnage since 2000 suggests outside contract labor and mechanization are filling local labor gaps. Interestingly, Napa County's mix of employment hasn't changed much since 2000. Six industries dominate hiring: hospitality, professional services, retail, winery, health care and government. He also noted that winery wages are generally lower than the average Napa County wages, yet many winery job skills are transferable to other industries. Eyler cited this among the factors that may force wine industry wages to rise. The sales sector, for example, has a mobile work force that can easily switch into hospitality or administrative jobs such as bookkeeping. The booming businesses of nut and fruit producers in California's Central Valley provide increasing competition for seasonal labor, but many Napa wineries are trying to train their personnel for other positions to keep them employed year-round. Some are adding olives and other crops that complement vineyards. They're also paying workers better and providing benefits like insurance to create a stable work force. Eyler said Napa County's growers and vintners might need to pay higher wages in a competitive market for skilled workers who will likely be living outside of the county. —Paul Franson Winery wages are generally lower than the average Napa County wages. THE ART LIVES ON… { To effect the quality of the day, that is the highest of arts. —Henry David Thoreau } Our barrels are works of art, crafted with expertise and perfection to honor wine. Partner with Tonnellerie Quintessence to create your masterpiece. 8 route de Canteloup—33750 Beychac & Caillau www.tonnelleriequintessence.fr Win es & Vin e s O C TO B ER 20 13 15