It’s all about labor

By Bob Trebilcock, Executive Editor
May 31, 2011 - MMH Editorial

Last week, I wrote a column on the prospects for materials handling automation over the next four or five years.

In part, I believe our opportunities lie in labor-related issues. Wages in China and other emerging economies are rising, which makes moving manufacturing back to the United States more attractive if other costs make sense. At the same time, American manufacturers and distributors are grappling with their own set of labor issues, including the silver tsunami, a shortage of skilled labor for manufacturing and a shortage of labor willing to work in a distribution center.

Then, there’s the cost of labor. This was driven home to me by a conversation I had last week with two systems engineers from a leading 3PL. They contacted me in response to a column I’d written about lift truck manufacturers getting into the AGV business. They had a lot of very detailed questions about which lift truck manufacturers were offering hybrid trucks and what kind of processes and applications they were targeting in distribution centers.

As it turns out, these guys weren’t just picking my brain. One of their customers was willing to fund a pilot study on the feasibility of using lift truck/AGVs in a distribution environment.

But AGVs are just the starting point. The customer, as it turns out, has recently completed labor negotiations with its unions and has asked the 3PL to review all of its distribution processes and look for areas where there is an economic justification to apply automation.

Based on things I heard at MHIA two weeks ago, I think variations of these conversations are going on at companies across North America. How and whether we can tap into them will say a lot about how our industry grows in the future.



About the Author

Bob Trebilcock
Executive Editor

Bob Trebilcock, executive editor, has covered materials handling, technology and supply chain topics for Modern Materials Handling since 1984. More recently, Trebilcock became editorial director of Supply Chain Management Review. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484.


Subscribe to Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world's most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

Company's multi-tenant SaaS solution enables quick onboarding of new trading partners and omni-channel capabilities.

The Institute for Supply Management’s (ISM) August edition of the Manufacturing Report on Business saw its PMI, the ISM’s index to measure growth, fall 1.6 percent to 51.1, following a 0.8 percent decline to 52.7 in July. Even with the relatively slow growth over the last two months, the PI has been at 50 or higher for 31 consecutive months.

Global demand remains stable as packaging equipment providers of all sizes shift focus.

Pack Expo 2014 grew five times faster than the average trade show.

Survey of economic activity shows July new business volume up 4% year-over-year, down 14% month-to-month, up 8% year-to-date.

Article Topics

Blogs · Automation · Lift Trucks · All topics

About the Author

Bob Trebilcock, editorial director, has covered materials handling, technology, logistics and supply chain topics for nearly 30 years. In addition to Supply Chain Management Review, he is also Executive Editor of Modern Materials Handling. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484 or email [email protected].

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA