Efficiency Overhaul Logistics Companies Go High-Tech (Communities - News & Events)

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Efficiency Overhaul Logistics Companies Go High-Tech


The logistics sector, steeped in a history of automation, is once again embracing high-tech solutions driven by labor shortages, booming online retail demand, and promising technological advancements. McKinsey Global Institute highlights the industry’s remarkable potential for automation, particularly benefiting contract logistics and parcel companies.

However, despite the compelling incentives, logistics companies remain cautious about fully embracing automation due to various challenges. These include competitive dynamics in e-commerce, uncertainties surrounding the most effective technologies, procurement issues, evolving distribution strategies, and the mismatch between contract lengths with shippers and the extended lifespan of automation equipment and distribution centers.

Automation emerges as a solution to tackle three major hurdles confronting contract logistics firms. Firstly, labor shortages, notably in the United States, where unemployment rates are at historic lows, demand more efficient workforce solutions. While automation can help bridge this labor gap, it also raises concerns about workforce displacement and the associated impact on communities and labor costs.

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Target State: New York
Target City : New York City
Last Update : Sep 15, 2025 1:16 AM
Number of Views: 6
Item  Owner  : focusoutlook
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2025-09-15 (0.390 sec)