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The future of the material handling industry is at a crossroads in America. A declining workforce, decreased interest in blue collar jobs and negative perceptions about pay and job satisfaction threaten the future of material handling. The short-term solution for survival is to hire an increasingly immigrant workforce, mount a PR campaign to revamp our image, and automate to minimize manpower strain, says Benoit Montreuil of the College Industry Council on Material Handling Education (see our April 18 post). ¡°I believe that each of these three solutions has merits in specific settings,¡± said Montreuil, ¡°but that it will be insufficient for addressing the scale and scope of the emerging crisis.¡±

If we are to survive as an industry, material handling must change its basic paradigm, warns Montreuil. He believes that by automating many of the steps in warehousing and logistics, we have stripped workers of the opportunity to think, make decisions and have input into their jobs, the very things that provide job satisfaction. When workers are merely required to follow a pre-determined pattern, as in pick-to-light solutions, they become little better than robots, says Montreuil. By removing the challenge from the job, he believes, we are losing our most important resource — the intelligent, innovative worker.

The alternative paradigm that Montreuil envisions is a material handling industry that relies on highly-skilled, certified logistics professionals operating in self-sufficient teams in distribution centers, factories and logistics applications around the world. These professionals would be ¡°trained to exploit all the physical handling and transport technologies,¡± says Montreuil, combining automation with manual operations to achieve maximum efficiency. In his utopia, Montreuil sees a material handling industry that offers ¡°career paths for their talented workforce.¡±

Not a single one of America¡¯s top players in material handling and logistics wanted their sons and daughters to be working in a distribution center as adults. That was the shocking result of a show-of-hands poll Benoit Montreuil, president of the College Industry Council on Material Handling Education, took during a speech at last summer¡¯s Material Handling and Logistics Summit. The straw poll of industry leaders caused Montreuil to take a hard look at the future of material handling and the workforce issues that will help define that future.

Montreuil believes America¡¯s growing workforce crisis, which he said is not industry specific, is rooted in three issues:

1. As Baby Boomers retire, there are fewer workers to replace them. America¡¯s workforce is shrinking.
2. America¡¯s next generation of workers prefers white collar jobs to jobs in factories and distribution centers. To cut costs, many businesses are outsourcing labor jobs to foreign countries. Immigrant laborers comprise the largest segment of factory and distribution workers, a trend that is growing.
3. Material handling and logistics jobs are perceived to be dull, entry-level jobs requiring little skill and garnering bottom-rung pay.

The obvious short-term solutions are to import more foreign workers eager to work in America under current conditions and for present pay levels, undertake a major marketing initiative to change the negative image of material handling and attract a new workforce, and computerize and automate our operations to minimize manpower needs. However, Montreuil warned that long-term solutions will require a change in the material handling industry¡¯s paradigm.

Next time: The future of the material handling industry.