Chapter 72: Labor Shortage Crisis
Arthur continued to contemplate the progression of the war as he made his way toward the industrial district. If the war dragged on, he doubted that the Usman Empire could withstand the onslaught of the Syvatoslav Kingdom. Given the considerable loans and support he had extended to the Usman Empire, it would inevitably be necessary for Pendralis to intervene in the conflict to secure its interests. These thoughts occupied his mind as he approached the heart of the nation's industry.
When Arthur first designed the industrial district, he ensured that it was established on land separate from residential areas. The first factories constructed under his direct ownership included steel mills, textile factories, and ironworks. Over time, the district expanded with rail connections to the harbor, the construction of worker housing, and the gradual emergence of neighborhoods around the area. The availability of labor and infrastructure attracted numerous entrepreneurs, leading to a continuous expansion of the industrial sector, shaping it into its current form.
Arriving at the industrial district, Arthur proceeded toward William's office. William was already waiting at the entrance to greet him. As Arthur approached with his guards, William stepped forward and offered a respectful nod.
"Welcome, Your Highness," he said.
Arthur acknowledged the greeting with a slight nod. "Hello, William. Are all preparations complete?"
"Yes," William replied confidently. "We can begin whenever you wish."
"Then let's not waste any time," Arthur responded. Together, they set off toward the newly constructed factories in the established arms manufacturing sector.
As they walked, their conversation turned to the intricacies of the production process. The weapon factories, constructed with security as a top priority, were heavily guarded to prevent technological espionage and sabotage. Every individual entering and exiting the facilities was meticulously monitored. Employees, from engineers to assembly workers, were bound by confidentiality agreements, and Pendralis intelligence actively scrutinized key personnel to prevent foreign agents from coercing or bribing them into leaking classified information.
Upon completing the security procedures, Arthur and William entered the restricted zone. The first factory they visited was dedicated to the production of mortars. Inside, workers meticulously assembled the mortar tubes, ensuring they were forged with high-quality steel to withstand repeated firings. The baseplates were reinforced for stability, and the bipods were crafted with precision to allow accurate angle adjustments. Special attention was given to the internal smoothness of the tubes to ensure proper projectile trajectory. Each component was rigorously tested to withstand battlefield conditions, ensuring durability and reliability. The entire process was optimized for efficiency, allowing the factory to produce several hundred mortar tubes each month.
Next, they proceeded to the grenade manufacturing facility. This factory was built with reinforced structures to minimize damage in case of accidental detonations. The production line was divided into multiple sections—casing fabrication, explosive filling, fuse assembly, and final inspection. Workers moved with disciplined precision, ensuring that each grenade met stringent safety and performance standards before being packed into wooden crates bound for the military depots.
The last facility on their itinerary was the rocket launcher factory. This plant specialized in the mass production of shoulder-fired explosive projectiles, a revolutionary addition to Pendralis' arsenal. Engineers meticulously oversaw the assembly of the launch tubes, warheads, and propulsion systems. The integration of standardized components allowed for rapid manufacturing, ensuring that the army would soon be equipped with these powerful new weapons. Security in this facility was even tighter, given the advanced nature of the weaponry.
After the inspections, Arthur and William returned to the office building. Upon stepping inside, Arthur immediately noticed the rhythmic clatter of typewriters filling the room. Rows of clerks diligently typed away, rapidly producing documents, reports, and orders with unparalleled efficiency. The typewriters had revolutionized office work, significantly reducing the time needed to draft and process paperwork.
Arthur observed how each department benefited from the newfound efficiency. Contract negotiations, which once took days of handwritten correspondence, were now concluded within hours. Production reports from various factories were compiled and analyzed in real time, allowing executives to make swift, informed decisions. Supply chain management had also improved, with requisition orders being processed and delivered far quicker than before.
This efficiency extended beyond the corporate realm. Government offices, inspired by the success of typewriters in industry, had adopted similar mechanization. Tax records, legal documentation, and military correspondence were now handled with greater speed and accuracy. As a result, decision-making at the highest levels of government had become more agile, ensuring that Pendralis remained at the forefront of industrial and bureaucratic progress.
Arriving at William's office, the two men sat across from each other, and William offered Arthur a cup of tea. Arthur took a sip before setting the cup down and turning to the matter at hand.
"What will be the monthly production output of the factories?" he asked.
William retrieved a set of documents and presented the figures. "The mortar factory is set to produce 600 units per month, along with 4,000 mortar shells. The grenade factory will manufacture approximately 15,000 grenades, while the rocket launcher plant is expected to produce 500 launchers along with 3,000 rockets monthly."
Arthur nodded, absorbing the numbers. "And when will the first batch be ready for deployment?"
"The first shipments will be delivered next month," William confirmed. "We have arranged secure transport via railway to the military depots, where they will be stored under guard. Additionally, we will stagger deliveries to different units to prevent logistical bottlenecks and minimize security risks." "The initial allocation will be sent to an elite division for testing and training. Once they have familiarized themselves with the weapons, we will gradually introduce them across the entire army."
Arthur approved of the plan. It was critical that the new weaponry be integrated in a controlled manner, ensuring that soldiers were properly trained before widespread adoption.
As they continued their discussion, William brought up a concern. "Your Highness, there is an issue with production costs. The expenses have risen by at least 20% above our initial estimates."
Arthur raised an eyebrow. "Why?"
"We are facing labor shortages," William explained. "Despite continuous migration from rural areas, the demand for workers has outpaced supply. The expansion of factories has forced employers to raise wages to attract labor. Competing industries have also increased their wages to retain their workforce."
Arthur was puzzled. "I thought rural migration was still ongoing. Why are we suddenly experiencing labor shortages?"
William sighed. "While mechanized farming initially drove large numbers of workers into the cities, the pace of migration has slowed considerably over the past year. With fewer people leaving the countryside, labor scarcity has become a growing problem."
Arthur tapped his fingers on the armrest of his chair, considering the implications. "We have already negotiated fixed weapon prices with the government. How will this affect our profitability?"
"Profits are still healthy," William assured him. "However, rising wages are driving up the costs of raw materials like steel and coal. If this trend continues, profitability could decline significantly in the future."
Arthur exhaled sharply, his mind already racing through potential solutions. He needed to address the labor shortage without jeopardizing industrial expansion. One option was increasing incentives for rural workers to move to cities by providing housing and guaranteed employment. Another was introducing apprenticeships for young workers, ensuring a steady influx of skilled labor. He also considered expanding mechanization further in certain industries to reduce dependence on manual labor. Whatever the course, it had to be implemented quickly to prevent production delays and rising costs from spiraling out of control.
They continued discussing the economic impact of the war. The conflict between Syvatoslav and the Usman Empire had triggered a surge in demand for military supplies. The Usman Empire, relying on loans from Pendralis, had been purchasing vast quantities of arms, ammunition, and other war materials. This influx of orders had temporarily boosted the economy, creating lucrative opportunities for manufacturers and suppliers alike.
After concluding their meeting, Arthur left the industrial district and returned to the palace. By the time he arrived, night had fallen. Seeking relief from the day's exhaustion, he took a hot bath before changing into comfortable attire. Summoning a servant, he ordered dinner to be brought to his room.
As he dined, he retrieved reports from the statistics bureau and began reviewing demographic data. The numbers confirmed that rural-to-urban migration had slowed significantly. When he first introduced mechanized agriculture, large estates and noble landowners had eagerly adopted the technology, reducing their need for manual labor. The displaced workforce had initially been absorbed by the burgeoning industrial sector, as new factories and expanding infrastructure projects created a high demand for labor. However, as industrial growth accelerated, the need for workers began to outstrip the available workforce. While initial migration from rural areas provided a steady stream of laborers, the slowing pace of migration was driven by several factors. Many rural families, seeing the decline of small-scale farming, had already relocated, leaving fewer willing to make the transition.Social resistance also played a role, as some rural populations clung to traditional ways of life, preferring to endure economic hardship rather than uproot themselves. This stagnation in migration, combined with a booming industrial sector, led to an imbalance—more jobs were opening up than could be filled by new arrivals, creating rising wages and competition for workers. This shift led to rising wages and competition among industries for skilled and unskilled workers, presenting new economic challenges. The most affected sectors were heavy industry, arms manufacturing, and mining, where the demand for specialized labor outstripped supply. Production slowdowns and rising operational costs began to emerge, forcing factory owners to increase wages to retain workers and prevent disruptions. The shortage also impacted infrastructure projects, delaying the construction of railways and industrial complexes essential for economic expansion. However, smaller farmers, relying on common lands and outdated methods, had managed to survive despite growing inefficiencies.
Arthur realized that these small-scale farmers were delaying the inevitable shift toward industrial labor. If left unchecked, this would hinder both urbanization and agricultural efficiency. He recalled how this problem had been addressed in his previous world and began drafting a policy proposal.
The plan centered on enacting an Enclosure Act, which would privatize common lands, forcing small farmers to sell their land to larger estate owners. Higher agricultural taxes would further pressure inefficient farms to consolidate, ensuring land was transferred to those who could implement large-scale mechanized farming most effectively. The goal was to eliminate small-scale farming in favor of large, highly productive agricultural estates.
To ensure a smooth transition, the government would facilitate land purchases by providing financial backing to noble and wealthy landowners, allowing them to acquire small farms more easily. Displaced small farmers and their laborers would be absorbed into the expanding industrial workforce, with incentives encouraging their relocation to cities.
Rather than attempting to support small or medium-scale farms, the policy was designed to concentrate agricultural land into fewer hands, optimizing efficiency and increasing large-scale food production. To prevent short-term food shortages during the transition, the government would establish strategic grain reserves and secure temporary import agreements, ensuring that urban food supplies remained stable.
By systematically shifting rural workers into industrial labor and consolidating agricultural production, Pendralis would not only enhance food security but also ensure a steady workforce to sustain its expanding industries and military needs.
This shift would not only drive rural workers into the cities but also impact food production, reducing the reliance on subsistence farming and increasing overall agricultural output. The increased efficiency in large-scale farms would stabilize food prices, ensuring a steady supply to support the growing urban population. To mitigate short-term food shortages during the transition, Arthur planned to implement temporary grain reserves and import agreements to supplement domestic production. Additionally, a phased approach to land privatization would allow small farmers time to adjust, either by adopting modern techniques or transitioning into industrial employment. Government-backed agricultural loans would also be introduced to assist medium-scale farmers in scaling up operations, preventing abrupt disruptions in food supply chains. However, the policy would also disrupt traditional rural communities, leading to potential resistance.
To counterbalance the displacement, Arthur considered introducing vocational training programs in industrial centers to help former farmers integrate into factory work more easily. Infrastructure investments, such as improved roads and housing developments, would further support urban expansion and accommodate the incoming labor force.
Beyond agriculture and industry, the policy was expected to influence trade and taxation. A more efficient agricultural sector would allow for increased food exports, strengthening Pendralis' economic position internationally. At the same time, a growing industrial workforce meant higher tax revenues, allowing for expanded public services and military funding.
In turn, these interlinked policies would accelerate urban migration, enhance agricultural efficiency, and reinforce Pendralis' industrial dominance, ensuring long-term economic and military stability. However, Arthur recognized the potential risks involved. A sudden influx of displaced rural workers could lead to overcrowding in cities, straining housing, sanitation, and public services. The rapid transformation of rural life might also provoke unrest among those who resisted losing their land and traditional way of life. To mitigate these risks, Arthur considered implementing strict urban planning measures, including controlled housing development and expanded public infrastructure. He also anticipated the need for increased law enforcement presence to maintain order during the transition. Despite these challenges, he remained convinced that these reforms were essential for Pendralis' continued growth and strength.
After carefully reviewing his proposal, Arthur compiled the documents and set them aside. The policies, once implemented, would accelerate urban migration while enhancing agricultural efficiency. With his plan in place, he glanced at the clock, realizing how late it had become. Placing the papers in a secure drawer, he rose from his chair and retired to bed, his mind already contemplating the next phase of his nation's transformation.