1) Surge in Last-Mile Delivery
Consumer behavior was already trending toward same-day delivery prior to the start of the pandemic. Amazon’s ability to turn delivery in 48-hours changed consumer expectations. COVID-19 simply accelerated the consumer interest that already existed in last-mile options. To be proficient in last-mile services, companies (large and small) had to begin increasing their investment in automated options. Fulfillment needed to be quick, accurate, take place at the store-level, or in mini-warehouses.
2) Automated Solutions for Smaller Spaces
The growth in automated storage and retrieval solutions that work in under 5,000 square feet of space has increased interest and demand for smaller to mid-sized businesses. The solutions are more affordable and better integrated with smaller operations, in some cases, there isn’t even a need to purchase a second location for distribution.
3) Labor Crisis
Across the U.S., there is at least one open job for every American seeking work. The U.S. had 10.4 million job openings as of the end of September, according to the latest report from the Bureau of Labor Statistics (BLS).
And, a report from the Peterson Institute for International Economics estimates the U.S. economy is still short 6.2 million jobs. Half of the 11,000 employees recently surveyed by CNBC in October reported their companies are understaffed.
What this all adds up to is an ongoing labor crisis with no visible end in sight. It’s no surprise then that companies are looking for other solutions to fill the gap and find answers in automation.
4) Inflation & Robotics
There are two ways that technology can help reduce production and warehousing costs. One is to add automation or robots to production. The other is by implementing a software system that provides total control of your operation and avoids human errors.
You can delay the price increase as long as possible with cost control actions, but raising prices is inevitable in an inflationary environment. With proper manufacturing software, and warehouse management systems, you have all the variables to decide when, how, and by what proportion to raise prices and do so in a way that positions you better than your competitors.
