News / 'Blue collar' supply chain jobs squeezed out as technology comes in

Supply chain jobs have been melting away at a rapid pace in North America as shippers and logistics providers grapple with challenging conditions.

But according to Douglas Kent, EVP of strategy and alliances at the Association for Supply Chain Management (ASCM), the outlook is still bright for fresh talent entering the industry.

In the space of eight weeks, companies in the US and Canada announced more than 7,100 job cuts in the supply chain arena, continuing a steady decline that built up over the past year. The latest wave of redundancies marked the fifth round in the sector since early October.

The casualties are strewn across a broad array of shippers and logistics providers, ranging from cargo owners like PepsiCo, Del Monte ,and True Value, over Amazon and the integrated express carriers, to Kuehne + Nagel, GXO and cold storge giant Americold.

Some redundancies are the result of plant closures or strategic shifts. Some 2,000 were casualties of Amazon’s decision to close its seven fulfilment centres in Quebec and outsource this activity. Another 1,200 jobs disappeared when US Logistics ceased operations this month, and Lineage Logistics is closing a warehouse in Maryland next month, in response to low demand.

Mr Kent blames a mix of economic headwinds, slowing demand, and continual disruption. The new US administration’s spate of announcements of tariffs on imports has added to the uncertainty, prompting firms to adopt a defensive stance for the time being, he added.

He noted that supply chains still employed large numbers of ‘blue collar’ workers and tended to react to changes in economic conditions with increases or decreases in the labour force.

The number of workers in the warehousing sector, which employs a large percentage of manual labour, has been shrinking for some time. By the end of 2023, the number in the US had sunk to 1.85 million, the fewest since November 2021.

The elimination of blue collar jobs also converges with increasing deployment of technology in supply chains, Mr Kent noted, but he added that his trend was running into challenges.

“One of our concerns is whether talent can keep pace with technology,” he said. “We need workers who know how to use AI, we need workers who can make strategic sourcing decisions. A higher-level skill set is required.”

ASCM reworked its education content last year to focus on three critical areas that have been rising in importance: risk mitigation and management; sustainability; and technology and how to integrate it effectively.

For talent entering the industry the outlook has not dimmed. He said: “It’s not at all difficult to find jobs. Placement rates remain high. The recognition that came out of the pandemic is the contribution that supply chains make to companies’ success, and I think that’s being reinforced.”

The outlook is less promising for lower-level positions. Mr Kent expects to see further job erosion in supply chains in the months ahead. But he added: “I don’t think we’re going to see the levels of unemployment we have seen in other economically struggling times.

“I don’t think we’re going to get into the high single-digit unemployment rates we have seen in the past.”