As we approach the end of 2022, you may be wondering what next year will bring for warehouse jobs in St. Louis. What do you think will happen in 2023 as far as the industry is concerned? Will we see more radical changes or will things return to how they were before the pandemic?
While the future is unpredictable, our warehouse staffing solutions experts can look to the past for clues about what might happen soon.
Before we dive in, note that our predictions are based on data collected from current trends, historical data, and future forecasts from credible sources including the Economist Intelligence Unit. Let's now explore these predictions.
Lack of training, technical skills gap, and labor shortage will continue to plague the warehouse industry
The global warehousing industry is expanding. According to Interact Analysis, the warehouse and storage market is anticipated to grow from 150,000 in 2020 to 180,000 by 2025. The main drivers of this growth are the continued rise of e-commerce, which drives up demand for warehouse space, and the growing popularity of just-in-time inventory management, which puts pressure on companies to maintain smaller inventories.
However, this growth is not without its challenges. One of the warehouse industry's biggest challenges is hiring more qualified workers. This shortage is expected to continue in 2023 as the warehouse industry struggles to attract and retain workers.
As the economy continues to improve and more companies start to reopen, these issues will likely only worsen. The warehouse industry must find a way to attract and retain workers and train them to keep up with the job demands.
The aggressive adoption of robotics and automation will rise
COVID-19 accelerated the trends toward robotics and automation in the warehouse. In response to the pandemic, many companies have invested in robots to help sanitize warehouses and pick orders. These investments are expected to continue in 2023 as companies look for ways to reduce their dependence on human workers and improve their warehouse operations.
Some warehouse jobs, such as order picking, are well suited to automation. However, other tasks, such as packing and shipping orders, are more challenging to automate. As a result, companies will need to find a balance between using robots and humans to staff their warehouses.
We expect to see more companies experimenting with robotics and automation in their warehouses in the coming year. However, these technologies will be limited by the need for more skilled workers to operate them.
Flexible work scheduling and contingency planning will become the norm
The pandemic has forced companies to reevaluate their warehouse operations. Many companies have mainly had to rely on temporary workers to fill in for employees who are out sick or quarantining as one of their warehouse staffing solutions.
Productivity can never be guaranteed when working eight hours per day. When it comes to working productively, there is no such thing as a one-size-fits-all solution. As a result, warehouse managers need to be flexible in their scheduling and have contingency plans for when productivity dips.
In 2023, we expect to see more warehouse managers adopt flexible work schedules and contingency plans to help deal with the challenges of the pandemic and the ever-changing warehouse environment and prepare for future disruptions.
Employee satisfaction will become a key metric
In the warehouse industry, employees have long been treated as expendable commodities. Several factors have put a lot of stress on them. They have had to work longer hours and deal with increased safety concerns.
Employee satisfaction is anticipated to become a crucial metric for warehouse managers in 2023. Companies need to realize that happy workers are productive workers. As a result, they will need to invest more in employee satisfaction initiatives, such as better pay and benefits, better working conditions, and more opportunities for career advancement.
Benefit from our specialized warehouse staffing solutions in 2023
The Economist Intelligence Unit's report shows that the pandemic has profoundly impacted the global economy. Even in 2023, most industries will still need to recover pre-COVID output levels. The warehouse industry is no different, and it is a challenge that they are grappling with as well.
With our specialized warehouse staffing solutions here at Action Logistix, we can help your company navigate through the challenges that 2023 may bring. Our pre-employment screening system eliminates about 25-30% of applicants, which leaves us with higher chances of recruiting high-quality employees.
Contact Josh Browell at 314-757-0904 today to find out more about our specialized warehouse staffing solutions for 2023!