I wrote earlier this year about labor problems in the supply chain, driven by a lack of truck drivers and the difficulty many companies face finding workers for warehouse and distribution center (DC) positions. These are issues that have long plagued the supply chain but were exacerbated by the Covid-19 pandemic and, more recently, a variety of economic and demographic challenges.
Heading into the final quarter of 2022, the problems persist.
Logistics technology vendor Berkshire Grey shed light on the issue in late August when it published survey data about warehouse labor challenges. The survey of more than 200 chief supply chain officers (CSCOs) revealed that a generation gap is at the heart of the struggle to find warehouse help. In a nutshell, an aging workforce and shrinking pool of young talent are combining to leave companies short-staffed. In response, CSCOs say they will raise pay and invest in warehouse automation—strategies they hope will help them better compete in today’s high-tech, “gig” economy.
There are many industry and government-sponsored programs in place to address the industry’s labor challenges, especially in trucking. Individuals and organizations are stepping up, too, by launching homegrown efforts to fill jobs and create an industry talent pipeline.
Aaron Smith, founder of Chicago-based media company Escaping the Odds, is one example. The company helps formerly incarcerated individuals start fresh and pursue their entrepreneurial goals. Logistics is a big part of that effort. A former inmate himself, Smith began working for a freight brokerage after his release from prison more than three years ago. He says he quickly realized the allure of a career in logistics, with its potential to earn a good wage and be your own boss. Earlier this year, Smith started an online course that teaches people (formerly incarcerated or not) how to start a delivery business using box trucks—vehicles that weigh less than 26,000 pounds and don’t require a commercial drivers license (CDL) to operate. Smith says the course is an “A to Z” for driving a box truck, teaching students about the legal requirements for starting a business as well as how to purchase a truck, book a load, and market your company. It also allows an easier path into trucking by removing the barrier of obtaining a CDL, which can cost applicants thousands of dollars. As of early September, about 25 people had completed the course.
“It’s gratifying to help someone get into a position to be their own boss—especially in an industry that is so needed,” Smith told me. “There are enough loads out there to move; we just need people to move them. And we’re teaching people to be good owner-operators.”
Escaping the Odds is partnering with financial organizations, nonprofits, and the logistics industry to grow the program and help students make it in supply chain. Logistics, technology, and factoring company OTR Solutions is one partner. Jonathan McCormack, vice president of partnerships, said the company provides back-end support by helping students build a branded website and email domain, a service OTR provides through its Elevate platform. McCormack says supporting Escaping the Odds was an easy decision because OTR Solutions wants to position itself as a partner and “true asset” to help people run a successful trucking operation.
“[Smith and his team] have this incredible mission to help people from many different backgrounds and walks of life find success in the transportation industry, and it is a mission that OTR is proud to stand behind,” McCormack told me, adding that OTR Solutions is focused on supporting small and mid-sized companies that may lack the resources of the largest industry players. “We’ve built our business model around supporting these carriers, who are undeniably the driving force behind our industry and the true backbone of America.”
Many would make the same argument about logistics overall—a message that is amplified as more industry professionals join forces to close the labor gap.
