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Monday, October 5, 2026

Warehouses and Distributions Centers Turn to Automation in Response to Ongoing Labor Shortage - Jackson Lewis

More than 43 million Americans quit their jobs in 2021, according to The Washington Post. This mass exodus has put a particular strain on operators of warehouses, distribution centers, and 3PL providers who have been forced to confront the labor shortage while e-commerce sales have surged over recent years. These staffing issues have been exasperated by high turnover rates among workers facing longer hours and added stress as they try to keep up with their employers’ fulfillment needs.

Automation offers significant benefits to employers struggling to adequately staff warehouse environments. In addition to reducing the need for labor and making work less demanding for current employees, automation stands to increase productivity, order accuracy, and reduce workplace injuries. Given these benefits, it should come as no surprise that the global warehouse automation market is expected to double in value over the next four years, based on a study conducted by the Harvard Business Review. Indeed, supply chain leaders who participated in the study indicated that automation is one of their top priorities for digital investment.

The net impact of automation is not inherently positive, however, at least not at the outset. While automation can save employers money in the long term, the front-end costs can be expensive and implementation time can be substantial.

The most commonly identified concern associated with automation is the assumed elimination of jobs. This perceived...



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