Despite the economy taking an uncertain twist, there is a rising demand for warehouse workers and many might wonder why this is happening. The latest industry statistics have indicated a strong trend of more employees being onboarded for working at warehouses.
Analysts have forecasted that this trend might continue growing stronger over the next couple of years. There are various reasons why this is happening that justify the forecasts of the rising demand for warehouse workers. Here are some of the most relevant reasons which explain the growing demand for warehouse workers.
Surge in e-commerce platforms
As e-commerce continues to grow steadily, there are different industries that are impacted, including warehousing. Some online shops do not have the money to open and maintain their own warehouses. As a result, they outsource them to existing warehousing businesses, and with the growing demand, more employees are needed.
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Expansion of large retailers
Large retailers, including e-commerce platforms such as Amazon, continue to have a global footprint. To help facilitate this growing demand, businesses are expanding their warehouse operations. This is happening either by opening new warehouses or outsourcing from current industry players.
Whatever the case may be, this has a direct impact on the employee count of warehouse workers. The growing retailers could also be tied to the dropshipping business model within e-commerce. Suppliers might not be directly selling and thus need warehouses closer to their end-users since retailers avoid stockpiling products.
Implementation of automated delivery systems
Although automated delivery systems seem to be aimed at taking jobs away from employees, this is actually creating work at warehouses. As autonomous driving vehicles do not have a driver and loader, more work is created at warehouses.
Warehouse workers are not compelled to load these vehicles and therefore, more hands are needed and not to mention the extra hands required by the drone delivery system. Since these shipments are handled in smaller quantities, it takes more time to load and ship out orders. To hasten the process, more warehouse workers are required to ship using this system.
Work policy changes
Due to changing circumstances, warehouse workers could face some work policy changes which might require that employees work in shifts. To ensure that there is a good rotation of staff that does not put a strain on the workforce, more employees might be needed. Also, work policies about safety, especially for staff that use heavy lifting equipment, might require shorter working hours to facilitate good rest.
To get the work done, more employees might be required for a healthy work routine with comfortable shifts. The work policy changes could also require more safety personnel to oversee warehouse employee teams.
Agile supply chain models
Agile supply chain models are flexible work processes that adapt to the current market requirements. This working model could require a more flexible workforce which might get very large during peak performance times. The agile supply chain model could require that employers have a standby workforce that can facilitate market growth.
Due to the rise in e-commerce and other growth contributing factors, agile supply chain models face a huge spike in demand for skilled manpower. This growth could steadily increase, but even if the trend slows down, the employees will continue working on an ad-hoc basis.