Western Pallet Magazine June 2021 | Page 17

JUNE 2021

How Automation Can Relieve Pallet Manufacturing Labor shortages

If you’ve been patiently waiting for the labor market to improve, it’s time to quit procrastinating and take action. Experts predict that finding new workers will only get harder for U.S. manufacturers over the coming years, and so it is high time to consider how investing in equipment can help lessen your dependency on employees in your production process.

According to a new report from Deloitte and the Manufacturing Institute, manufacturing job openings have been growing at double-digit rates since mid-2017, and are nearing the historical peak recorded in 2001. As many as 2.1 million manufacturing jobs will be unfilled through 2030, according to a study. The report warns the worker shortage will hurt revenue, production and could ultimately cost the US economy up to $1 trillion by 2030. Seventy-seven percent of surveyed manufacturers anticipate there will be ongoing difficulties in attracting and retaining workers in 2021 and beyond. US manufacturing executives surveyed believe that finding the right talent is now 36% harder than it was in 2018.

Pallet companies are also feeling the pinch of not having enough people. While there are various approaches available to attract and retain labor, one important area of consideration is to strategically expand investment in plant equipment. Equipment can replace the need for labor for some activities, and for others, it can make workers more productive. Whether you measure your output by pallets per labor hour or board feet per labor hour, having the right equipment can help increase productivity so that you can expand your business without adding a commensurate proportion of employees.

Here are some examples of how pallet companies can ease their dependency on employees through the strategic deployment of equipment

Move from a cell-based manufacturing process to an in-line process

Many smaller pallet shops still rely on a variety of workstations. In new manufacturing operations, for example, stringers might be stacked, then forklifted to the notching machine, and then restacked again before being moved yet again – this time to the pallet nailing department. To stick with this analogy, by moving the notcher in line with the stringer production line, stacking and forklift requirements are reduced, resulting in labor savings.

Cont'd on Page 18