Labour shortages top obstacles to business, chemical industry reports greatest difficulties – survey
The Breakdown
Amid persistent disruptions and evolving business risks, Ukraine’s industrial sector is reporting an acute and growing shortage of qualified personnel. In July, 66% of surveyed businesses identified labour shortages as their number one obstacle, with the chemical sector experiencing the challenge most acutely—84% of chemical companies cited workforce constraints. Larger enterprises are disproportionately impacted, with 88% of large firms facing staff shortages compared to only 34% of microenterprises. Alongside labour constraints, businesses are contending with raw material price volatility, supply chain hurdles, and demand fluctuations. These dynamics are contributing to cautious outlooks and a gradual, yet still negative, business activity environment.
Analyst View
Recent survey data from 472 Ukrainian enterprises underscores a challenging environment where labour scarcity is increasingly the gating factor for growth and operational stability. For chemical and polymer industry leaders, the significance is intensified: skills shortages, primarily driven by employee mobilization and restricted retention, are impacting production capabilities and narrowing delivery horizons. This is not merely a short-term resource constraint, but a structural shift in workforce availability that is likely to influence both near- and long-range planning.
Capital allocation decisions must now account for higher input costs, greater competition for qualified personnel, and prolonged lead times. Functional capacity is only slightly improved, with 64% of enterprises working at or near prewar levels—signaling slow and uneven recovery. Organizations are forced to re-examine not just hiring, but the entire talent and training strategy, productivity enhancements, and process automation opportunities. Downstream impacts along the value chain—such as disruptions in raw material flows, variable customer demand, and limited logistical agility—require scenario-based planning and agility.
Strategically, leaders must recalibrate expectations for demand growth and operational flexibility. While the Business Activity Recovery Index is advancing, its negative value reflects more deterioration than improvement, underscoring the need for continued operational discipline alongside investment in capability-building. Executive priorities should focus on reinforcing workforce pipelines, securing critical supply channels, and adjusting go-to-market activities to counter volatility—both in workforce and in market demand.
Navigating the Signals
Leaders in specialty chemicals and polymers must anticipate ongoing workforce challenges as a defining constraint on growth. The combination of mobilization, retention barriers, and a small pool of skilled talent signals the need for a strategic workforce plan and investments in automation and process innovation. Organizational resilience will depend on agile responses to talent shortages—both at the recruitment and retention stages.
Additionally, questions around capacity utilization and shifting customer demand must inform sales forecasts, production scheduling, and working capital management. Decision makers should be actively reassessing partner agreements, distribution channel robustness, and supply chain alternatives to mitigate future disruptions. An evolving regulatory environment—combined with inflationary pressures and extended uncertainty about future economic conditions—necessitates leadership vigilance and scenario planning for multiple operating environments over the next 6–24 months.
Internally, organizations should ask: Are our talent development and retention strategies fit for a constrained market? Do we possess actionable visibility into upstream and downstream supply dynamics? How robust are our business continuity and workforce contingency plans? These questions are crucial for maintaining competitive positioning under continued uncertainty.
What’s Next?
Breakthrough Marketing Technology enables B2B leaders to navigate high-uncertainty conditions by turning market signals into focused action. Our solutions are designed to:
- Decode competitive and supply chain pressures impacting growth and margin.
- Integrate granular workforce insights into market planning and scenario analysis.
- Accelerate cross-functional alignment for capacity, demand, and talent management in volatile markets.
Through customized market intelligence and executive workshops, we help leaders redefine risk parameters and spot high-value opportunities—even as visibility remains limited. Stay ahead of the curve by assessing where strengths and vulnerabilities converge in your operating model.
Source
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