Amazon will soon be deploying Proteus robots in its fulfillment and sortation centers.
Amazon
What is the state of the retail and e-commerce market? When it comes to order fulfillment, all the work has been left to the robots and there is no going back.
That’s the conclusion of a new State of the Industry report from Berkshire Gray. The reasons will be familiar to anyone who has tracked industries such as durable goods manufacturing, agriculture, and commercial trucking. A new generation of workers does not want low-paying, low-security, high-fatigue jobs. This can be framed through many different lenses (the one that always makes me laugh is “They’re lazy!”), but the undoubted result is a massive shift toward automation, especially robots.
also: Urbanization is creating new demand for construction robots.
“While labor issues continue to commotion across the industry, unlike the temporary shortages seen in other industries, the continued growth of e-commerce and changing generational employment preferences will have a unique impact on the fulfillment industry, with long-term labor shortages likely to occur. We expect this to follow in the coming years,” said Steve Johnson, President and COO of Berkshire Grey. “Companies must leverage robotics automation in addition to their compensation strategies to stay ahead of this demographic shift. This is not only a huge attraction for young talent due to improved safety and increased professional skills, but it is also a game changer. Cost savings, throughput, etc. and in terms of ROI.”
also: Yes, robots have their place. (So why don’t we care?)
Nearly three-quarters (71%) of executives responding to Berkshire believe robotic automation is necessary. This is driven partly by changing labor dynamics and partly by consumer trends that are putting pressure on online retailers. For example, free returns are becoming more common, and a similar percentage of executives (72%) believe they will lose customers if they don’t offer free returns. Combined with the need for increased delivery speeds and significant increases in return rates (80% of executives are experiencing an increase, requiring increased headcount), it’s clear that retailers are in a trap of sorts. This is to reduce costs and increase efficiency.
That, my friends, is fertile conditions for robots. There has now been a significant increase in the number of executives who believe automation is the standard for fulfillment (nearly 43% increase since 2019). Almost all (85%) of companies using robots will invest more in automation.
also: No, robots will soon take over many jobs.
Here’s why this matters to consumers: In the short term, it will enable the comfort and convenience we are rapidly demanding. But in the long term, no one can guess what impact increased automation in sectors as diverse as warehousing, fast food, construction, and manufacturing will have on the blue-collar leg of the national economy that has always been present in modern times. A significant number of low-wage workers.
Optimists argue that increased productivity due to automation will lead to new opportunities, but this only works in relatively fair markets, not in markets where abundance tends to accumulate at the top. With the country facing a possible recession, a shortage of low-wage jobs could soon catch up with the strong labor market workers have enjoyed for years. Automation hatched in relatively sunny times could lead to serious trouble in the turbulent times ahead.
also: How to get a job during a recession
In any case, there is general agreement that e-commerce will continue to grow at a record pace. The market size is expected to grow from $3.3 trillion to $5.3 trillion by 2026.
