Warehouse Staffing Shortages Are At New Lows

But why exactly is there such a big surge in demand for warehouse workers and the ensuing warehouse worker shortage? During covid, people increased their online buying due to which more workers are needed at warehouses for order fulfilment and logistics.  People now prefer online purchases to observe covid safety and also to get around lockdowns.

The consumer trend for eCommerce buying has a strong influence on warehouse operations and logistics.

Since eCommerce orders are often personalized and smaller, more workers now need to pick and pack to process online orders. This process is more labour-intensive, and thus, more workers are needed, due to which employment rates are rising even as the outbreak continues. This is contributing to the warehouse worker shortage.

Since the warehouse labor demand exceeds labor supply, wages are rising especially for package handlers. Warehouses now have to adjust their shifts and workflow to adjust to the eCommerce surge.

Companies are having a hard time hiring enough workers. Better unemployment benefits, high childcare costs and covid fears are some of the main reasons for a shortfall in labor supply. In addition to the shortage of warehouse workers, there is also a shortfall in the supply of drivers due to similar factors.

The warehouse sector is also seeing increased pressure from the retail sector. As a result of the pandemic, big retailers like Target, Walmart and Costco have raised their hourly wage rates. Although it may not have been planned, in effect, they are competing for labor with the warehouse sector. Warehouse workers have noted retailer wage rate hikes and now want to work for these retail giants for higher earnings. Better working conditions at retailers are also a key driver for these observations.

Warehouses had to raise wages for their workers as a result of this. They are also offering greater flexibility for their workers to keep them content so that they don't leave.

To help cope with all these changes, warehouses are turning towards increased automation. This can help logistics and storage facilities to minimize costs since they will be less reliant on increasingly expensive workers. However, the move towards increased automation is still in its early stages and quite slow.

In short, there are challenges as well as opportunities for warehouses. Opportunities come in the form of increasing eCommerce and online buying. Challenges include higher worker wages, worker shortages, expensive worker training and the pressure for increased automation from retail giants like Amazon – this will require vast expenditure, something, not all warehouses can afford.

Warehouses will have to develop tactics for dealing with challenges and maximizing available opportunities to stay relevant and fend off high pressure from Amazon, AliExpress and other retail giants.

Improve the efficiency of warehouse workers by reducing unnecessary steps in processes.  Here at MIDCOM we offer solutions to help make warehouse workers more efficient.  Mobile workstations and wearable barcode scanners are designed to accomplish this goal.  Talk to a Specialist now call (800) 643-2664.