Automation Needed in Warehouses to Address E-commerce Requirements, Says Portland SEO's Augusto Beato

Augusto Beato, CEO of Portland SEO, advised warehouse operators to automate operations to counter the increase in the cost of running fulfillment centers due to e-commerce requirements. "With North American businesses lagging behind their Asian and European counterparts when it comes to automated shipments, this is a great option to explore," says Beato.

E-commerce firms seeking to boost online sales may engage the services of Portland SEO by clicking here. They may also contact Augusto Beato directly through this link.

U.S. warehouses and distribution centers need an additional 452,000 workers in total in 2018 and 2019 to increased requirements of e-commerce. However, the increased demand for warehouse workers is spiking labor costs. According to a report by commercial real estate brokerage CBRE Group Inc., a $1 increase in average hourly wages for a typical warehouse with 500 employees would raise annual labor costs by more than $1 million.

That number is higher for more labor-intensive e-commerce operations, especially during seasonal peaks in shipping activity around the end-of-year holidays. "Some companies are expanding in new regions with more available workers, but this goes against the need to be as close to customers as possible, which is necessary for providing inexpensive and speedy delivery for online retail orders," says Beato.

Many operators are searching for new labor pools, whether recruiting workers away from other industries or relocating fulfillment operations to regions where more workers are available.

Among the most attractive destinations, according to CBRE’s latest analysis, are Memphis, Tenn., Louisville, Ky., California’s Inland Empire, Indianapolis, Atlanta, Nashville, Tenn., and Dallas-Fort Worth.

"With digital commerce is driving record occupancy rates in warehouses and distribution centers, there should be a stable and cost-efficient solution to address its requirements!" Beato exclaimed.