September 14, 2023 Tackling Labor Shortages in Warehouses & Manufacturing

Companies are turning towards new technologies to withstand a dwindling workforce during a period of high demand.

By Scott Walker, Vice President, Supply Chain Product Management at Powerfleet

The warehouse and manufacturing industries face one of the highest labor shortage rates of any U.S. industry, with two out of five manufacturing companies reporting an average of at least 20 percent annual turnover. This is due to a combination of issues, from an aging employee demographic to industry-wide safety concerns and a diminishing pool of skilled talent.

Adding to the workforce challenges these sectors face, there’s also been notable developments connected to the Inflation Reduction Act. While this law was designed to help the economy by putting money into new manufacturing projects, it has caused an influx of work, resulting in an intensifying talent gap.

To help offset these problems, we’re seeing companies turning toward technology solutions to help create more efficient, sustainable, and safer environments for workers to thrive.

As business leaders look for other solutions to help alleviate labor concerns, here are a few considerations:

Upskilling the Workforce to Meet Demand

As the talent gap widens and new projects begin stacking up, relying on a trained workforce is critical.

Skilled employees possess the expertise to navigate intricate processes, operate sophisticated machinery, and adapt seamlessly to evolving tasks. To ensure your workforce continues operating at a high level, prioritizing training is an invaluable strategy to counter labor shortages and help drive innovation across your organization.

Employers should take the time to train each employee, no matter how much prior experience they may have. It is important to document training and have employees sign off to indicate they are up to speed and make sure they abide by the same standards across the board.

Improving Safety is Critical to Retaining Talent

Mitigating the potential for incidents is a primary concern not only from an employee safety perspective, but accidents can also delay deliveries, tarnish a company’s reputation in the market, damage property or even lives.

Fostering an environment where a worker’s well-being is paramount and essential to retaining a workforce long-term. As employees seek workplaces that prioritize their physical and mental welfare, translating this into increased morale, engagement, and loyalty can be a challenge for business leaders.

Implementing new technologies can ensure that safety standards are met across the board. Using new platforms, such as an access control system that allows only trained operators or drivers to use certain types of equipment and locks vehicles that are in need of repairs, can minimize safety errors. Encouraging electronic safety lists that comply with OSHA regulations can identify mechanical issues before they become critical or dangerous, or leveraging collision detection and accident management software, which logs the identity of the driver when impact occurs fleet managers can also prioritize safety across the board. They can also invest in third-party data companies who can identify danger spots for drivers and work around them to further reduce risk.

Advanced hardware like wearable devices and AI-powered cameras are contributing to enhancing safety within warehouses as well. These technologies enable teams to take a proactive approach by alerting drivers to potential dangers in the path they are moving in.

Driving Efficiency with Telematics and Cloud Computing

The assimilation of new tools can improve operations across the board and directly ties into innovating training and safety standards. Through telematics it can offer a comprehensive approach to optimizing operations. By deploying real-time data collection from machinery and equipment, companies can proactively address maintenance needs, minimizing downtime and streamlining processes. This enhances productivity and reduces the need for manual oversight, easing the pressure of labor shortages.

Additionally, telematics can be utilized to enhance pedestrian safety. This involves tracking forklifts in real-time and promptly reporting any safety issues. These functionalities provide management with the means to easily evaluate productivity and safety, facilitating necessary adjustments as needed.

Overall, the integration of telematics and cloud computing empowers seamless collaboration and data-driven decision-making. The level of precision these platforms provide not only drives efficiency but also showcases the industry’s commitment to innovation, attracting a tech-oriented workforce.

Forging a Resilient Path Forward

As business leaders and workers across the warehouse and manufacturing industry continue to battle with labor shortages, taking a comprehensive approach is imperative. The combination of a trained workforce, improved safety and working conditions, and technological integration can help forge a path forward.

By championing a culture of continuous learning, enhancing employee well-being, and embracing cutting-edge solutions, the industry can not only address its immediate challenges but also emerge as a beacon of innovation and opportunity. The journey ahead is one of transformation, where adaptability and collaboration will reshape the landscape and secure the industry’s place in the digital age.

Mr. Walker serves as Vice President of Supply Chain Product Management for Powerfleet, leading Powerfleet’s supply chain product teams to drive innovative products and solutions. Mr. Walker has over 25 years of experience leading product strategy, technological innovation, and product development execution. For the last 15 years, Scott has led various roles within Powefleet’s product, implementation, and sales teams. Prior to joining Powerfleet, Mr. Walker held various leadership positions at Emerson Electric as part of the Industrial Automation group. Mr. Walker attended the University of Rhode Island, holding a BS in Chemical Engineering.

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