Advisory Board: What do you want to be when you grow up?
By John Hill, principal, ESYNC | Transystems -- Modern Materials Handling, 9/1/2008
It's been so long ago that I can barely remember how I answered that question, although I faintly recall responding that life as a P-51 Mustang pilot would be my choice. I certainly didn't mention a life in warehousing—and, even many years later with a sheepskin in hand, the thought still did not occur to me. Zipping forward to the present day, how would your children, grandchildren or kids in the neighborhood respond to the question? My guess is that warehousing, materials handling and logistics would garner few mentions. And, that does not bode well for our industry.
As shown in the table below, the U.S. Bureau of Labor Statistics (BLS) reports that roughly 660,000 people are employed in the Warehousing and Storage market sector—less than half a percent of the total employed U.S. workforce. After a dip from 2000 to 2001 and a rapid up-tick from 2003 through 2006, growth has come to a near standstill over the past 16 months.
Looking at another BLS chart, shown below, on projected growth in the sector through 2016, the picture is equally bleak. For the 10-year period shown, annual growth is less than 2.2% with the lowest gains expected in the highlighted areas of scheduling, dispatching and material moving—critical components of the warehousing business model.
Note that other BLS reports suggest even slower growth through 2016, attributing a portion of the trend to the growing use of technology and systems. The state of the economy notwithstanding (and the downturn will not last for the next eight years), one would like to think that advances in technology and process improvement have indeed contributed to the slower workforce growth. Those of us in the industry would certainly hope so, but why then do we hear so many companies complaining that they cannot find people to fill warehousing positions? Some blame the predicament on the aging U.S. workforce while others cite the absence of commitment and loyalty in the makeup of younger workers, many of whom will abandon ship for an additional $.50 per hour.
The real issue is not that the jobs are disappearing, but rather that the people with the skill sets, motivation and chutzpah employers are looking for to fill available positions are going elsewhere. Face it; many employee candidates see little to excite them about working in a warehouse. It's a job. And somehow, we have to change that paradigm. Who is “we?” The task falls to all of us; that is, academicians, warehousing equipment and systems suppliers and distributors, the user community, consultants, media and the government. Yes, I said the government. Read on.
Academia
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Materials handling and warehousing are given short shrift in most university engineering programs while more esoteric supply chain-oriented curricula that garner research funding are replacing them. Users and suppliers need to find ways to work with the schools to revitalize these critical program components.
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De-emphasis of materials handling and warehousing at the undergraduate and graduate levels does not appear to have trickled down to the secondary or vo-tech schools that have programs, but these institutions need help in repackaging and selling their programs. And, we need more of them!
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Suppliers and users have to get behind secondary and vocational programs that train the next generation of warehouse employees. Look at what MHIA and MHEDA are doing.
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It might be a long shot, but universities could help by engaging with local secondary schools to offer support.
User community
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Users need to look at deployment of new equipment, technologies and systems not only for performance improvement, but as tools for recruiting the text messaging and iPod savvy generation to fill the growing holes in the warehousing workforce. (And, by the way, suppliers should be thinking along similar lines).
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The warehouse environment has to be improved. When considering a “green” initiative, also think about what better lighting, heating, cooling and an environmentally friendly paint job might do for current and prospective employees.
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Incentive programs have to be developed to recognize and reward achievement – period!
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Time has to be allocated for personnel development and on-going training with clearly defined programs for career advancement to build loyalty and fuel retention.
| Warehousing and storage | 2006 number | 2016 number | Percent change | Numeric change |
| Management, business and financial occupations | 27,812 | 36,721 | 32.03 | 8,909 |
| Professional and related occupations | 6,914 | 9,640 | 39.43 | 2,726 |
| Service occupations | 11,740 | 15,882 | 35.29 | 4,142 |
| Office and administrative support occupations | 171,946 | 207,745 | 20.82 | 35,799 |
| Material recording, scheduling, dispatching and distributing occupations | 114,025 | 136,134 | 19.39 | 22,109 |
| Installation, maintenance and repair occupations | 21,519 | 28,862 | 34.12 | 7,343 |
| Production occupations | 31,340 | 40,302 | 28.6 | 8,962 |
| Transportation and material moving occupations | 344,559 | 419,441 | 21.73 | 74,882 |
| Supervisors, transportation and material moving workers | 24,853 | 33,203 | 33.6 | 8,350 |
| Motor vehicle operators | 47,238 | 62,661 | 32.65 | 15,423 |
| Other transportation workers | 429 | 573 | 33.5 | 144 |
| Material moving occupations | 271,975 | 322,919 | 18.73 | 50,944 |
| Total for Sector, all occupations | 636,400 | 785,900 | 23.49 | 149,500 |
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