Hiring Headaches? Here’s How to Achieve Labor Savings in Your Warehouse

The country is facing a record demand for workers. That means thousands of businesses like yours are struggling to hire employees. But there’s an upside to the national labor shortage. You have a valuable opportunity to boost productivity by implementing labor saving machines for material handling.

Read on to discover how material handling equipment can ease the labor shortage in your warehouse. You’ll also learn about the top labor saving solutions and how to achieve the highest return on your investment.

In this article:

• What’s the State of the U.S. Labor Market?
• How Can Material Handling Equipment Ease Labor Shortages?
• What Are the Top Labor Saving Machines for Material Handling?
• How to Prepare a Business for Labor Saving Material Handling Equipment?
• Need Help with Labor Saving Equipment in Your Warehouse?

Why Are U.S. Businesses Focused on Labor Savings?

The country is experiencing an unprecedented labor shortage. CNBC reported that there are more job openings than ever before. The number of layoffs and discharges has remained steady, but more workers continue to quit their jobs.

Federal labor data for June 2021 shows that:
The U.S. has a record 10.1 million openings, a 6.5% increase month-over-month.
In the trade, transportation, and utilities industry, job openings increased by 45% from June 2020 to June 2021.
Manufacturing saw an 80% rise in the job opening rate from June 2020 to June 2021.

The implications of the labor shortage are clear. According to a recent Deloitte report on U.S. manufacturing, 8 in 10 manufacturers said unfilled jobs lowered their revenue growth and productivity. If these jobs remain unfilled, Deloitte estimates that the openings could cost the national economy $1 trillion.

The current state of the U.S. job market means manufacturers should consider implementing more labor saving measures.

 

What’s Contributing to the Labor Shortage?

Many factors are fueling the labor shortage, and some vary by industry. Let’s take a look at a few examples.

Growing Aging Population

The population of older adults is growing. As a result, labor is becoming more scarce. The U.S. Census Bureau estimates that by 2030, all Baby Boomers will be age 65 or over. That means 1 in 5 Americans will be at retirement age. As more older adults exit the workforce, companies in every industry will be left to fill their jobs.

Though certain industries will have more difficulty than others. For example, the production, transportation, and material moving industry has the fourth-highest number of workers aged 65 or over. Plus, 18% of workers in this industry are aged 55 to 64 and approaching retirement.

In sectors with many older workers, companies may struggle to replace employees as quickly as they retire.

Increased Warehousing Demand

The coronavirus pandemic has exacerbated the labor shortage by sparking rapid growth in many industries. One example is warehousing. Before COVID-19, it was already dealing with unmet labor needs. Then the pandemic began.

Modern Materials Handling credits the pandemic for the surge in e-commerce and structural shifts in supply chain dynamics. The result? Significantly higher demand for warehousing. Material Handling & Logistics estimates that newly constructed industrial spaces will require over 280,000 additional workers to operate them starting this year.

Businesses in many industries stand to benefit from the higher demand created by COVID-19. But only those that can keep up will reap the rewards.

Evolving Worker Expectations

Another factor in the labor shortage is evolving perspectives on work. The coronavirus pandemic has pushed many Americans to redefine their expectations and preferences.

According to a survey by Prudential Financial, workers now say the most important factors when considering a new job are:
1. Job Stability: 68%
2. Work/Life Balance: 62%
3. Salary/Pay: 58%
4. Comprehensive Benefits: 54%
5. Sense of Purpose: 50%
6. Work Aligns with Skills: 49%
7. Advancement Opportunities: 45%

To find the right fit, many jobless workers are taking their time to find new positions. That’s left companies operating with tens and even hundreds of unfilled jobs. Companies looking to attract new workers have to provide what’s in demand. Those with flexible schedules, competitive pay, and opportunities for professional advancement will rise above the rest.

 

How Can Material Handling Equipment Ease Labor Shortages?

Stepping up your recruitment and retention efforts is one way to address labor scarcity in your warehouse. But this strategy takes time—time that can threaten your productivity and profits.

Using more labor saving technology is a fast and effective way to reduce your reliance on manual labor. According to a recent survey by the National Association of Manufacturers, respondents used automation technologies to fill approximately 1 in 5 open jobs.

Labor saving machines can help complete your material handling tasks with less manual effort. As a result, you can keep up with demand in a scarce labor environment. They can also help you improve employee retention and boost productivity. Continue reading to learn how.

Manual Labor
Material handling equipment can eliminate or reduce the need for manual labor. These machines can automate certain tasks and undertake others with just a single operator.

By implementing labor saving machines in your warehouse, you can limit the risk of relying on employees to handle tasks manually. You can also minimize redundancy and waste and even reallocate manual labor to other areas of your operation.

Employee Retention
Putting labor saving material handling equipment to work in your warehouse is a capital purchase that shows you care about your employees. It can make tasks easier, less repetitive, and, most importantly, safer. The machines can reduce the risk of injury when manually handling large, unstable, and heavy loads. These improvements can boost employee morale, enabling you to retain workers longer.

Productivity
An added benefit of labor saving equipment is potentially higher productivity. Some material handling machines are designed to complete jobs faster. By putting more products into the hands of clients and consumers, the equipment can increase your profits and help you see a faster return on investment (ROI).

A great example of improved productivity comes from a cheese manufacturer that implemented a pallet and spacer retriever (PSR) from Cherry’s. The company was experiencing growing demand for its products overseas but lacked the manual labor to keep up. One reason is that it moved every case of product onto export pallets manually. The process was time-consuming, labor-intensive, and had caused injuries.

Cherry’s custom-engineered a PSR that tipped the load on its side, so the operator could quickly change out the pallet. The labor saving machine sped up the transport process by 90%. With the added productivity, the company could hit its targets and take on more clients.

What Are the Top Labor Saving Machines for Material Handling?

If you’re new to material handling equipment, you may be unsure about your options. You may also be overwhelmed by all of the choices. Labor saving machines for pallet handling are a practical place to start.

Pallet inverters, pallet retrievers, and pallet changers take on tasks that otherwise require manual labor. No matter your industry application, your business will benefit from employing more labor saving pallet handling equipment.

Read on to learn how these machines can help you ease the labor shortage in your warehouse.

Pallet Inverters
Pallet inverters create labor savings by turning over full pallet loads of products, eliminating the need for workers to stack and unstack products manually. They can also invert an entire stack of products as a unit instead of rotating each individually.

You may need to turn over a pallet for many reasons:

• Access the bottom of a load without having to unload all of the products manually.
• Square up canted or crooked loads.
• Turn products to stop contents from settling or change their orientation.
• Transfer products from one type of pallet to another, e.g., wood to plastic pallets.

If your business handles pallets, then you can achieve labor savings by using pallet inverters.

Pallet Retrievers
Safely retrieving pallets by hand can require multiple employees. Pallet retrievers produce labor savings by automating the series of movements needed to move a pallet, cutting down on the number of workers.

You can use a pallet retriever to:

• Transport or re-orient objects from truck to storage and vice versa.
• Transfer pallets without turning loads upside down.
• Raise and/or lower loads to an ergonomic working height.
• Turn loads to the side to remove one kind of pallet and insert another before storage or shipment.

Many industries use pallet retrievers to switch out heavy shipment pallets for a lighter type. Labor saving pallet retrievers eliminate the laborious and potentially dangerous steps a worker would take to complete this task manually.

Pallet Changers
Pallet changers can also help you generate labor savings. Designed for load transferring tasks, pallet changers cradle, lift, and tip loads to move them to a pallet or another surface without manual handling. A pallet changer operator never has to touch the pallet.

Businesses employ pallet transfer systems in many different applications. You can use them to:

• Load and unload pallets when arriving or leaving your facility.
• Switch to a sanitary pallet upon entering a clean processing center.
• Transfer loads to a larger or smaller pallet when changing load requirements.

How to Prepare a Business for Labor Saving Material Handling Equipment?

Now that you know the benefits of using labor saving equipment for material handling, let’s examine how you can best prepare your facility. Introducing new processes takes planning and thought. You want to ensure a smooth transition that generates the highest ROI.

The exact steps you’ll take to implement labor saving material handling machines depend on your business needs. Here are a few considerations that are relevant across all industries.

Application Requirements
Labor saving equipment is engineered to handle various types of pallets and loads. To obtain the most effective machine, you’ll need to understand the specifics of your application.

These are a few essential questions to think about:
What materials do you handle?
Do you handle loads of various sizes and weights?
How much space do you need for the machine?
How will the machine integrate with your existing logistics, workflow, and floor layout?
Will the machine work with all of your pallet types?

You can identify the right machine for your specific requirements by working with a quality supplier.

Employee Training
Labor saving equipment can significantly reduce manual exertion for material handling tasks. But you’ll still need at least one employee to operate each machine. It’s crucial to decide who will use the equipment and how you will train them. The more thorough your employee training, the more labor savings you can count on.

A good equipment supplier will tell you what training is required and how long it will take. An excellent supplier will provide you with comprehensive training and support, helping you get your machines up and running as fast as possible.

Return on Investment
You may be putting off material handling equipment because of the upfront costs. That choice may be losing you money in the long run. Maintaining old equipment can be costly, and you may also be missing opportunities with potential clients who need more productivity than you can handle.

Finding the capital to buy labor saving equipment can be challenging. But you can save money by investing in it right now. At Cherry’s, we find that many of our customers achieve their target ROI in six to 12 months.

Before implementing labor saving machines in your warehouse, lean on your supplier to understand the cost and timeframe for achieving ROI.

Need Help with Labor Saving Equipment in Your Warehouse?

The labor shortage doesn’t have to hinder your operations and productivity. You can use the current labor market conditions to adopt labor saving equipment that will benefit your business now and in the future.

No matter your manufacturing niche, you can count on Cherry’s to help achieve labor savings during pallet handling. Cherry’s provides high-quality pallet inverters, pallet retrievers, and pallet changers designed to:

• Handle loads of all weights and sizes.
• Integrate seamlessly into your operation.
• Get up and running fast, with intuitive controls and minimal training required.
• Function as production lines or stand-alone machines.

When you work with Cherry’s, you’ll have a trusted partner from day one. We’ll keep you updated on your job timeline and milestones and provide you with detailed start-up instructions so you can start working right away. You can also opt for professional installation and training assistance.

Are you ready to generate more labor savings in your warehouse?

For more information or a quote, contact us online or call 800-350-0011 today.