Have Wine Industry Jobs Been as Susceptible to Decline as Other Industries?
Donald Trump is now the most powerful man on earth and, based on his inauguration speech, the savior of disenfranchised men and women in the United States.
Without introducing politics or ideology into my wine-centric column, which I will never do, I thought about what my perspective is as a wine writer, as opposed to other private citizens, in the new era of President Trump.
Does this “American carnage,” to use President Trump’s phrase in his inauguration speech, apply to the majority of Americans or to those who have been subjected to the “inequalities” in our country?
Without denigrating those who have been deeply impacted by the economics of the 21st century, allow me to focus on the one industry this column is dedicated to – the wine industry.
As factory jobs were impacted by robotics, technological advances and international trade treaties, scores of Americans were laid off.
As white collar jobs were impacted by gains in productivity techniques fostered by technology and hedge fund activists, Americans were laid off.
As new energy sources were mainstreamed, and as they replaced traditional sources, predominantly coal, American workers were laid off.
And the list goes on. Clearly, the days of traditional jobs in this country is in inexorable decline. Department of Labor statistics make it clear that demand for blue collar and white collar workers is waning, while jobs requiring advanced skills, predominantly engineers and software programmers, go unfilled.
A new Industrial Revolution is gaining traction. The Gartner Group predicts that by 2025, one-third of today’s jobs will be replaced by robots and technological advances. Another report, issued last week by the World Economic Forum, predicts a mixed jobs future: nearly 65 percent of children starting primary school today will end up working in jobs that don’t yet exist.
Through this evolutionary (some would say revolutionary) change in the market force, the wine industry has continually adapted and survived. For centuries, through industrial revolution, political revolution and economic revolution, the core of this industry has weathered numerous storms.
I attribute this to the ingenuity and entrepreneurial talents of winemakers. Here I am referring not to the 2 percent of wine industry companies who control 84 percent of the industry output, but the small producers who are in control of their own destiny, making decisions over dinner tables rather than boardroom tables.
In the face of annual challenges from nature, they have adapted and acclimated. Unlike their brethren laboring in factory jobs or coal mines, they can adapt to changing environments and technological challenges with an independent focus and are able to withstand cyclical business results. However, just as corporate business may succumb to sustained cash flow shortfalls, so too wine producers. If winemakers can’t withstand sustained shortages of cash, brought about by lower vineyard yields or market competition, they too will succumb.
Productivity on the factory floor and in white collar offices is typically driven by financial decisions in corporate boardrooms. Productivity in wineries is typically driven by the vagaries of nature in the vineyards. Ideal weather conditions bring high-yielding crops and greater sales; excessive rain, hail and/or drought bring lower yielding crops and reduced profitability. The sophisticated business models and quantitative analysis employed in corporate America to enhance productivity and bottom line results is irrelevant in a vineyard pummeled by rain or hailstorms at the peak of grape ripening.
Through all of this disruption, small wineries are expected to persist. Not driven by bottom lines, but by respect for tradition, and having a longer perspective of success than other industries, family-owned wineries persevere through unpredictable harvests and competitive pressures.
As we embark on a new administration, with unique perspectives on the American economy and populace, let us remember that personal success comes from inner drive and conviction, not necessarily from corporate and bureaucratic mandates.
Nick Antonaccio is a 40-year Pleasantville resident. For over 20 years he has conducted wine tastings and lectures. Nick is a member of the Wine Media Guild of wine writers. He also offers personalized wine tastings and wine travel services. Nick’s credo: continuous experimenting results in instinctive behavior. You can reach him at nantonaccio@theexaminernews.com or on Twitter @sharingwine.
