Materials Handling Experts Challenge the Industry

Materials Handling Experts Challenge the Industry

The 21st century thus far has been one of challenge. Beginning with 9/11 up to the recession of 2008, it has been challenge on top of challenge. They have affected every part of the economy. The materials handling industry in particular has been in the thick of the fight.

These challenges have been addressed at seminars and conferences around the nation. Materials handling executives repeat two common themes at these gatherings. The ways to tackle the challenges of the new millennium are to make improvements in the chain of supply and to come to grips with the realities of the global economy.

Large companies who rely on international trade have to take their own steps to protect themselves from the threat of terrorism, one materials handling expert said recently. While his words were not directly related to smaller domestic companies, the general advice he gave was. He stressed the importance of strengthening existing supply line links while at the same time establishing new links, to protect the flow of supplies in case one link breaks.

A speaker art another seminar spoke about the need for America to wake up and face the fact that we are in a global economy. In his view, we cannot solve the problem of unemployment by creating jobs for unskilled workers. We cannot compete with overseas wages when the cost of living is so much lower in developing countries than it is in the U.S. What is needed is to create a smarter workforce.

These are good points, but how do they apply to a warehouse in the United States that was doing just fine until the recession hit? Now it finds itself facing higher labor costs at the same time that its business is slowing down.

A company like this, which deals only with a domestic market, probably doesn't need to think about a terrorist threat to its survival. However, it can learn a lesson from the executive who spoke about links in the chain of supply. Has this warehouse complacently relied on its existing customer base to provide it with work? Maybe it needs to branch out and find other customers to serve, without neglecting its existing clients.

Nobody likes to see the unemployment figures for the United States. It would be nice if all a company like this small warehouse could simply offer more jobs. However, it knows if it did that, the cost of labor would quickly put it out of business. As the speaker said at the materials handling conference, we have to start working smarter. This warehouse could do its part by offering skilled training programs to its existing employees and implementing them in its business.

No one is saying that these are not simplistic ideas that would not apply to every materials handling enterprise. Every company has to find its own answers. However, even a small company can enter the global marketplace if it establishes supply line links overseas and aggressively markets its products online. The point is that in a challenging new century, new solutions are needed.

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