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Labor Shortage in the Logistics Industry

16 Feb 2024

By Jennifer Chang    Photo:Canva

 

A recent survey reveals that resource shortages are most severe in the transportation and warehouse sectors, reaching 61% and 56% respectively. Despite being highly labor-intensive industries, the survey also highlights a concerning trend, with 55% of supply chain and logistics leaders stating that recruiting knowledge workers is the most challenging. Knowledge workers are individuals who contribute value and solve problems in their work through their professional expertise and skills. These workers typically possess rich professional knowledge, skills, and experience, enabling them to provide specialized advice and guidance in specific fields or industries, contributing to the success of their teams.

In recent years, the economic downturn and control of the COVID-19 pandemic led many to believe that the issue of labor shortages would be alleviated. However, the reality seems to be different. Research indicates that post-pandemic, the supply chain and logistics industries continue to struggle in acquiring the workforce needed for robust development. Supply chain and logistics play an indispensable role in the modern economic system, facing multiple challenges. On one hand, a shortage in the supply of labor makes it difficult for businesses to fill critical job vacancies. On the other hand, the quality of the workforce has also become an issue, as workers lacking skills and relevant experience find it challenging to handle complex job tasks.

The transportation industry has always been a key driver of economic activity, but resource shortages have noticeably impacted it. This phenomenon is fueled by the continuous expansion and globalization of supply chains, leading to a significant increase in transportation demand. However, faced with a shortage of labor, the logistics industry must explore innovative approaches to cope, such as enhancing transportation efficiency through the introduction of automation and technology. Similarly, the warehousing sector is also affected by resource shortages, as it requires a substantial workforce for inventory management and handling of goods. Despite being a labor-intensive field, surveys indicate a rising demand for knowledge workers.


In the next five years, the issue of labor shortage is expected to become more severe. According to Gartner's forecast, by 2028, the number of smart robots in the manufacturing, retail, and logistics industries will surpass the actual human workforce due to a lack of sufficient workers. Businesses now need to contemplate how to address this labor gap, as it has become a significant issue affecting operational performance. In the near future, the challenges faced by the logistics industry will not just be solely about whether to use automation to fill job gaps, but rather the question of how, when, and where humans and automation can collaborate effectively
  

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