Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
What was your biggest headache during the depth of the Covid-19 pandemic? For many forklift fleet managers, it was the constant churn among lift truck operators. Six-month turnover of 100% with daily absentee rates of 30% or more was not unheard of. Those numbers have since declined, but they remain high. In our May 2024 article “Playing it safe in a high-turnover environment,” forklift suppliers cited annual turnover in their customers’ fleets of 35%, 45%, or higher.
The consequences of high turnover can be serious. Safety could be compromised when operators don’t stay on the job long enough to fully understand their responsibilities, the equipment they’re using, or the operations of the facilities where they work. Supervisors and managers may have to devote more time to hiring, training, and ensuring shifts are covered, leaving less time for their other responsibilities, says Jared Green, director of global sales for automation and emerging technology at Crown Equipment Corp. Facilities may have to make do with suboptimal processes when fleets are shorthanded, he adds.
Clearly, it’s in everyone’s interest to improve retention. But how? Here are 10 recommendations from forklift providers and an end-user on ways to keep operators wanting to work for you.
1. Pay them fairly. According to a blog post titled “Fair Pay for Forklift Operators: What Should They Earn?” by the online equipment vendor Forklift Inventory, the average hourly wage for operators in the U.S. is about $20, and many make less than that. It’s not surprising, then, that some forklift operators would jump ship for a slight boost in hourly pay. Even if the hourly rate is comparatively high, if it’s the same for all operators, then it may not satisfy everyone. Sources we consulted suggested that operators will feel they are being fairly compensated and will be less likely to leave if their pay reflects such factors as experience, seniority, work environment (hot/cold/outdoor), task difficulty, and the local cost of living.
Benefits and other perks can also help to attract and retain operators. Scott Alexander, vice president of sales and marketing for LiftOne, an authorized dealer of forklifts from Hyster Co. and Yale Lift Truck Technologies, says that in his experience, “customers who spend a little more and put more effort and investment into total compensation—while also supporting facets of the operator experience like ergonomics, safety, positive reinforcement, and training—generally see fewer operators leaving for a small change in pay.” Considering the physical risks inherent in the job, the most important benefits to an operator may be health insurance, disability policies, and support services like employee assistance programs.
2. Give them the right equipment. Inappropriate equipment undermines operators’ ability to work safely and efficiently, leading to frustration and a lack of confidence. That’s why it’s important that the equipment is specifically designed to “do the job you’re asking the operator to do,” says Ron Flanary, senior vice president of national operations for Southern Glazer’s Wine & Spirits, the largest distributor of beverage alcohol in the United States.
Southern Glazer’s is careful to deploy the right mix of equipment in each of its 40-plus distribution centers. The DCs use forklifts of various types, such as sit-down counterbalanced trucks, order pickers, reach trucks, and turret trucks. Most are electric, but some propane-powered forklifts are also in service. Because the important thing is to deploy the best truck for each application, Southern Glazer’s runs equipment from multiple providers.
3. Keep them comfortable. Operators may be subjected to physical stresses like pressure on the spine and legs, exposure to vibration and noise, hot or cold temperatures, and muscle strain. Providing comfortable equipment with ergonomic features like suspension seats, easy-to-reach controls, and fatigue-reducing flooring, together with good ventilation, comfortable temperatures, and any necessary protective gear, can enhance operators’ health and well-being and, in turn, their willingness to keep showing up for work. Mike Hance, technology center manager at Equipment Depot, which represents Cat lift trucks, Mitsubishi forklift trucks, and Jungheinrich in 25 states, knows of one operator who had planned to retire—until he started using a new Jungheinrich forklift with advanced ergonomic features. His back stopped hurting, and he felt so much better after his shifts, Hance says, that he stayed on and worked for a couple more years.
4. Focus on the “three Cs.” Operators who are satisfied in their jobs typically possess what Keith Ingels, lean management manager for The Raymond Corp., calls the “three Cs”: **ital{confidence} in their understanding and skills, the **ital{capability} to do the job safely and efficiently, and **ital{clarity} on what is expected of them. Without all three, he says, operators will become frustrated and more likely to leave.
The main way to instill confidence and develop operators’ capabilities is through an effective, well-executed training program. In Ingels’ experience, confidence, in particular, gets a boost when trainees practice in a setting that’s similar to the actual operating environment. He tells of one customer that has three DCs with the same layout, storage setup, and training program—yet one of them had a third less operator turnover than the others. It turned out that in two of the facilities, new operators practiced driving with loads around cones and barrels. In the DC with the lower turnover rate, new operators practiced, also with loads, but in a training area with a short, unbolted rack and other features that were similar to the location where they’d be working. Operators in that DC told Ingels’ team that getting a realistic feel for what their work would actually be like built up their confidence from the start and made for a smooth transition to the floor.
As for clarity, no one can meet expectations if they don’t know what they are. To ensure that forklift operators at Southern Glazer’s understand expectations as well as “what success looks like,” the facilities hold pre-shift meetings where managers explain the workload and set expectations for the shift, Flanary says. Southern Glazer’s also tries to notify operators as early as possible if overtime will be necessary, so they and their families can plan ahead. This policy also lets operators who are unable to work overtime notify their supervisors early enough that they can line up a substitute.
5. Don’t put roadblocks in their way.Operators get frustrated when conditions slow them down—especially when their compensation is based on productivity. For example, nobody will be happy if product has been dropped in aisles or travel areas, forcing operators to follow a longer, less-efficient travel path or get off their trucks to remove the obstacle. Poorly planned traffic flow that causes congestion and delays will also create dissatisfaction.
Similarly, good housekeeping practices, such as removing packaging and other waste, and generally keeping a facility neat, clean, and well organized, has a beneficial impact on operator retention because it demonstrates pride in the workplace and respect for the people who work there.
6. Show you care about their safety. Operators are more likely to feel valued and respected in facilities that consistently demonstrate that employee safety is a top priority. That describes the culture in the Southern Glazer’s DCs, according to Flanary, who’s convinced that making safety “a high—and highly visible”—priority at both the corporate and local levels contributes to the company’s low operator turnover rates. Holding weekly safety meetings at every DC and responding to safety issues right away also demonstrate a sustained commitment to employees’ well-being.
Many operators appreciate being involved in workplace safety initiatives. Such efforts can be sensitive, however. For instance, it’s common to ask operators to report any unsafe behaviors they observe, but they may be reluctant to do so out of fear of damaging personal relationships or getting a co-worker in trouble. Still, operators often will be more receptive to guidance from their peers than to feedback from their managers. For that reason, some companies have had great success with teaching forklift operators how to collegially approach peers about safety issues they’ve personally observed and then coach their co-workers on proper procedures.
7. Recognize and reward their achievements. Celebrating employees’ milestones, such as years of service and number of hours without an incident, can boost performance and encourage longevity. Monetary incentives for achieving productivity or safety goals are especially effective because the longer an operator stays, the more opportunities there are for extra compensation. Group recognitions—for example, programs in which individuals’ safety records count toward a team goal with a reward for the entire team—encourage co-workers to support each other’s efforts. Other ways to recognize operators’ accomplishments and contributions include publicity through company newsletters, social media, and the local press; awards like plaques or gifts; and in-person celebrations.
8. Give feedback appropriately.It’s not easy for anyone to accept criticism, so the way you talk to operators about errors and how to correct them has a big impact on their attitude. Experts recommend framing such feedback in terms of benefits: The purpose is not to criticize but rather to help operators improve their skills and productivity while keeping themselves and their co-workers safe.
Different age groups want different levels of feedback. Ingels says younger generations “have grown up with computers and online chat and texts, so they like much more frequent and ‘small bite’ feedback” than older generations do. Younger operators also may enjoy getting feedback through video game-style applications.
Southern Glazer’s is one company that has taken that route. Its new warehouse management system includes a “gamification” option that lets forklift operators test themselves against company-set targets, their co-workers, or their own “personal best” performance. Flanary notes that users must meet their goals safely—they’ll be penalized every time they fail to follow prescribed safety practices.
“When done right, gamification is a very, very effective tool for motivating operators,” he says. “In my opinion, we’re moving away from engineered labor standards and stopwatches. In the future, it will be more about [giving] operators tools that help us set expectations and motivate them to be efficient.”
Other technologies that provide feedback include wireless fleet and operator management tools that collect an array of data, then create reports that measure performance and identify issues, such as a pattern of repeated mistakes. Because these reports are based on data, they take the emotion out of negative feedback, Crown Equipment’s Green says. He adds, however, that the most effective approach in his experience is a combination of data-driven feedback and personal coaching.
Technologies like object detection, operator-presence sensors, and operator-assist systems provide feedback in real time by responding to operators’ actions or to the surrounding environment. For example, operator-assist systems like Hyster Reaction and Yale Reliant, to name just two of the options currently on the market, automatically adjust a truck’s performance if the system senses activity that exceeds certain established thresholds. Such systems’ capabilities vary depending on the OEM and the truck model; examples include controlling a mast’s tilt angle and lift/lower speed and adjusting a forklift’s travel speed, acceleration, or deceleration to maintain stability and help prevent tipping. In addition to feeling the change in the truck’s performance, operators receive a visual alert indicating what is happening and why.
9. Ask for theirrecommendations. Operators want to be heard and to know that their employers care about what they think. Raymond’s Ingels suggests having informal conversations, asking questions like: What’s difficult about your job? Is the traffic flow efficient and safe for you? What changes would you like to see?
At a beverage company that LiftOne’s Alexander works with, team leads conduct end-of-shift debriefs, giving operators a chance to discuss what’s working and what’s not. He reports that attitudes and engagement seemed to improve under this approach, which solicits operators’ opinions on what the facility should start doing, what it should stop doing, and what it should continue doing.
But it’s not enough to simply listen; you also have to act on the operators’ recommendations. That extra step paid off for one of Green’s customers, which was planning to deploy new technologies that threatened to create some challenges for forklift operators. With support from Crown Equipment’s experts, a team of operators and their supervisor investigated how the new technologies and some planned layout changes would affect their productivity, then offered recommendations for improvement. Based on the group’s feedback, facility managers made adjustments to both the layout and the technology rollout that made it easier for the operators to do their jobs.
10. Forge a personal connection. In a large facility with multiple shifts, operators may feel overlooked and unrecognized. Tony Parsons, regional operator training manager at forklift dealer Wolter Inc., which represents Linde, Doosan Bobcat, and other brands across the Midwest, tells of one operator working in a large DC with high operator turnover. After three months, the operator said, he still did not know who the warehouse operations manager was—he had only met his direct supervisor. Parsons contrasts that with another, smaller customer, where the owner walks around every payday and personally hands each employee a paper confirmation of their direct deposit. He addresses them by name and often takes a few minutes to chat with them—one reason that facility experiences less than 10% annual turnover among its forklift operators.
Another way to provide a personal connection is through a mentoring program, where experienced operators are paired with inexperienced co-workers. “Often, newer operators don’t want to ask questions in front of a manager because they’re worried it will make them look bad,” Ingels says. “With a peer, they can be far more open because that gives them a ‘safe zone’ to have conversations and ask questions.”
THE BROAD VIEW
Flanary believes that while many factors contribute to operator retention, it’s important for managers to also consider a broader perspective. “A big part of our role as leaders is to create an environment that’s safe and productive, where [operators] can be effective,” he says.
The competition for quality operators is intense, and paying good wages and offering good benefits certainly helps get them in the door. But, he stresses, “if you’re going to keep them, they have to know that what they do has value. That’s a basic human need—they need to know they’re not just a cog in the wheel.” What’s more, he adds, “you can’t fake it. It has to be real and genuine. That’s not easy, but in our company, it is real and important, and because of that, we have a team that loves what they do.”
Autonomous inventory management system provider Corvus Robotics is delivering drone technology for lights-out warehouse environments with the newest version of its Corvus One drone system, announced today.
The update is supported by an $18 million funding round led by S2G Ventures and Spero Adventures.
“Corvus Robotics fits our mission to invest in companies that truly transform the way business is conducted,” Marc Tarpenning, co-founder of Tesla and partner at Spero Ventures, said in a press release Tuesday. “Other than a landing pad, its drone-powered system requires no infrastructure, is quick and easy to deploy, and cost-effective to manage. It literally merges with the existing warehouse environment.”
Corvus Robotics’ drone-based inventory management system uses computer vision and generative AI to understand its environment, flying autonomously in both very narrow aisles—a minimum width of 50 inches—and in very wide aisles. It uses obstacle detection to operate safely in warehouses and features an advanced barcode scanning system that can read any barcode symbology in any orientation placed anywhere on the front of cartons or pallets, according to the company.
The lights-out feature is already in use at customer locations.
“Being able to run inventory checks 24/7 without operator assistance has been a game changer,” Austin Feagins, senior director of solutions at third-party logistics services (3PL) provider Staci Americas, said in the release. “The lights-out capability in the Corvus One system allows our inventory teams to correct discrepancies off-shift and pre-shift before production starts each day, limiting fulfillment delays and production impacts.”
The warm waters of the Gulf of Mexico are brewing up another massive storm this week that is on track to smash into the western coast of Florida by Wednesday morning, bringing a consecutive round of storm surge and damaging winds to the storm-weary state.
Before reaching the U.S., Hurricane Milton will rake the northern coast of Mexico’s Yucatan Peninsula with dangerous weather. But hurricane watches are already in effect for parts of Florida, which could see heavy rainfall, flash and urban flooding, and moderate to major river floods, according to forecasts from the National Oceanic and Atmospheric Administration (NOAA).
As it revs its massive engines with fuel from the historically warm Gulf of Mexico, Hurricane Milton could possibly hit Tampa as a Category 5 storm, according to the FEWSION Project at Northern Arizona University, which tracks supply chains throughout the country.
With that much power, Milton could shut down the port and seriously disrupt the fuel supply into western and central Florida, which could then hinder recovery efforts. That’s because fuel supplies for much of Florida, especially central Florida, arrive from Texas and Louisiana through the Port of Tampa. That means that anyone who depends on generators or fuel for critical functions should plan for an extended period without access to fuel. And recovery crews and logisticians should consider bringing their own fuel when responding to the storm, FEWSION said.
One of those disaster recovery efforts will be led by nonprofit group the American Logistics Aid Network (ALAN), which is already mobilizing its forces for Hurricane Milton, even as it devotes other energy to the Hurricane Helene response. “In an ideal world we’d have plenty of time to focus all of our efforts on Hurricane Helene clean-up and recovery,” Kathy Fulton, ALAN’s Executive Director, said in a release. “But in the real world, major hurricanes don’t always wait for their turn. As a result, we are officially activating for Hurricane Milton.”
In the meantime, many weary residents of the region are thinking of moving to another part of the country instead of getting hit by vicious storms several times a year. Nearly one-third (32%) of U.S. residents aged 18-34 say they’re reconsidering where they want to move in the future after seeing or hearing about the damage caused by Hurricane Helene, according to a survey commissioned by real estate brokerage Redfin.
“Scores of Americans flocked to the Sun Belt during the pandemic because remote work allowed them to take advantage of the region’s relatively low cost of living. Some thought Appalachia was insulated from hurricane risk, not realizing that the area is prone to flooding and that hurricanes can sometimes cause flash flooding far away from the ocean,” Redfin Chief Economist Daryl Fairweather said in a release. “Americans are beginning to realize that nowhere is truly immune to the impacts of climate change, and we’re starting to see that impact where people want to live—even people who haven’t experienced a catastrophic weather event firsthand.”
The report is based on a commissioned survey conducted by Ipsos on Oct. 2-3, fielded to 1,005 U.S. adults. After making landfall in Florida in late September, Hurricane Helene wreaked havoc across Appalachia, becoming the deadliest storm to hit mainland America in almost two decades. In North Carolina, the death toll has surpassed 100 and the city of Asheville has been devastated.
Demand for warehouse and industrial space continued to slump in the third quarter as the overall national industrial vacancy rate edged higher, climbing 30 basis points (bps) to 6.4%, according to the latest research by Cushman & Wakefield.
Although vacancy rose again, it increased by the lowest quarterly gain in vacancy since Q4 2022. The primary cause of the rising empty space was “vacant speculative deliveries,” as developers flooded the market, the report said.
“Industrial vacancy rates remain below the 10-year pre-pandemic average of 7% as new supply slowed and overall absorption remained soft, but positive,” Jason Price, Senior Director, Americas Head of Logistics & Industrial Research, said in a release. “We expect that net absorption will more than double in 2025 as leasing activity accelerates with greater economic certainty.”
Through the first three quarters of 2024, the strongest absorption totals of new real estate were seen in Dallas/Ft. Worth at 18.8 million square feet (msf), Houston at 17 msf, Phoenix at 15.1 msf, and Savannah at 7.4 msf. Conversely, the Los Angeles, New Jersey, Oakland/East Bay, Reno, Seattle, and Portland markets have yielded the highest amounts of negative absorption year to date.
Speculative developments continue to dominate the delivery landscape, accounting for 83% of the YTD new supply total. Expect Q4 deliveries to moderate a bit further nationwide as the construction pipeline has dwindled substantially over the last two years.
The average asking rental rate for industrial space exceeded the $10 per square foot (psf) level for the first time in history at the close of Q3 at $10.08 psf. This marked a 4.3% rise year-over-year as some markets continue to see rents tick higher despite softer fundamentals than the past three years.
“Industrial construction is in the final stages of adjusting to the more normalized levels of demand and absorption and we expect to see markets stabilize in 2025,” said Price. “The pipeline has shrunk to a low (309.3 msf) not seen since year-end 2018 and will continue to dissipate into early next year as construction starts remain muted. We anticipate demand reaccelerating in the second half of next year amid softer delivery totals, coupled with healthy leasing totals.”
E-commerce giant Amazon is in the process of hiring 250,000 people across the U.S. as it heads into the holiday season, saying it will pay all seasonal employees at least $18 per hour and provide full-time hires with health care from the first day on the job.
The positions include full-time, part-time, and seasonal roles across the company’s customer fulfillment and transportation operations in the U.S., according to a blog post by Sandy Gordon, Amazon’s vice president, Global Operations Employee Experience.
The cloud-based solution, now called QAD Advanced Scheduling, optimizes production decisions by determining what products to make on each production line in the best possible sequence to minimize changeovers, optimize inventory, and align cost and service goals.
According to Santa Barbara, California-based QAD, manufacturers seek technology to become more efficient, agile and resilient in their pursuit of better competitiveness and profitability. The firm says its platform helps in these areas by scheduling related products together, in the best sequence, with visibility to inventories, capacity, product attributes and changeover costs. This improves the synchronization of manufacturing processes, resource utilization and on-time delivery, while also helping to reduce inventory levels and waste.
Laguna Beach, California-based Phenix Software Inc. originated from Zinata Inc. seven years ago after identifying that customers were experiencing major performance loss due to suboptimal changeovers and inventory levels, with no suitable tool to sustain the gains made with existing scheduling solutions. Committed to continuing to provide the best scheduling solutions available, Zinata has since become a QAD distributor to sell, support, and implement the product as a partner.