For many decades, workers throughout the country traveled to a nearby factory in order to make a living. The Industrial Revolution required large numbers of factory workers to work assembly lines and perform various repetitive tasks. Digitization and e-commerce have changed this up a bit, and now factories in the industrial sense of the word are much less common. But something has replaced them. Not so quietly, distribution warehouses have popped up in an effort to meet rising e-commerce demand. This created a new future of warehouse work for many who might have otherwise worked at a factory. The promise of future warehouse jobs came at precisely the right time.
(The big D.E.I. experiment was a bust–read why in this Bold story.)
In the U.S., there are roughly 1.3 million warehouse workers. These individuals perform a variety of tasks including picking, packing, transporting, and stocking. But unlike factory workers of the past, these workers tend to work in parallel rather than alongside one another. This new dynamic is important for several reasons when the future of warehouse work is considered. Future warehouse jobs are already threatened as advanced technologies replace people performing various tasks, and the lack of labor organization weakens opportunities for a collective worker voice. Understanding this, it’s evident that this new warehouse landscape is quite different from the factory environment of old.
Today’s Typical Warehouse Worker
The snapshot profile of a warehouse worker today is not a lot different from factory workers of the past. Women comprise a larger segment of warehouse workers, representing one in every five employees. The average age is more comparable with most being in their mid-30s. And in terms of race, a significant number are Latino and Spanish-speaking. This is particularly true in many of the smaller Midwest towns where factories used to be. Based on this, it’s evident that those who may have worked in a factory now do so in a warehouse. But this is where most of the comparisons end. As the future of warehouse work evolved, so did the social and task-related aspects. These future warehouse jobs are therefore nothing like factory work and its associated culture.
In most warehouses, workers are under tight schedules to complete their assigned tasks, and oversight is notable. In many, conversations between employees are not permitted in an effort to promote maximum efficiency. At the same time, warehouse workers are widely distributed. Some are pickers while others fulfill orders and handle packaging. And still others transport packages and supplies to and from warehouses as part of the distribution process. In this regard, the future of warehouse work is much more independent and solo than prior factory jobs. As future warehouse jobs replaced factory ones, less and less interaction now takes place between cohorts. As a result, these workers perform in small silos not much different from someone in a remote work job. Thus, the social environment is nothing today in warehouses like it used to be in factories.
The Future of Warehouse Work
For those who used to work in factories across the American heartland, a steady paycheck and benefits offered some security. Of course, wages as well as benefits were often hard-fought through collective bargaining agreements over time. For warehouse workers, however, benefits are often lacking, and a cohesive voice is non-existent. On average, annual income for warehouse workers hover around $33,000. Given recent inflation and economic shifts, this is hardly a salary that provides much discretionary income. It’s therefore not surprising that few warehouse workers are looking to make a career of their work. Instead, future warehouse jobs are likely to see significant turnover as workers view positions as temporary. Employers recognize this, but for other reasons, most don’t seem too concerned.
The biggest threat currently to future warehouse jobs is notably automation and advanced technologies. Robotics, drones, and autonomous vehicles are expected to become an increasing presence in years to come. Likewise, AI and machine learning will be utilized to better integrate systems and streamline processes. Based on this, the future of warehouse work will be one where humans interact with smart machines to achieve tasks. And without question, fewer warehouse workers will be needed as a result. Based on the fact that upward opportunities are limited and automation looms, few envision their jobs as lifelong occupations. Don’t be surprised if future warehouse jobs become part of the gig economy as workers are sought on-demand. These features of warehouse work is also markedly different when compared to the stereotypical factory worker.
The Impact of Warehouses on Communities
Across several states, there are concerns about the growing number of warehouses and distribution centers. Amazon, Walmart, and many other large e-commerce companies seek out large parcels of land for these centers. In the process, many states are seeing a loss of green space, particularly on the outskirts of urban areas. And since distribution and delivery demands transportation, traffic issues are also becoming an increasing problem. These states can now add worries over the future of warehouse work to their list of issues. As the number of future warehouse jobs decline, unemployment rates could rise unless alternative jobs are found. Warehouses provided job opportunities that were lost when factories vanished. But that doesn’t mean future warehouse jobs will continue to be available.
For states, positives and negatives exist when it comes to a rising warehouse landscape. Notably, these commercial properties generate revenues for the state and for municipalities through taxes. But at the same time, warehouses may not be the best use of these properties from both revenue and aesthetic perspectives. In addition, if future warehouse jobs progressively decrease, then states must address these concerns. Worker training, education, and skills development will be required to offset these declines. And most importantly, further research into how warehouses impact community cohesiveness and social wellness are needed. Balancing each of these pros and cons will be essential in determining how best to approach this new era of digitization.
Outsourcing is essential for business growth–read why in this Bold story.
