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Surge in Logistics Hiring Driven by Digital Commerce
The growth of digital commerce is driving additional logistics job growth, with online sales distribution companies adding 10,000 jobs in January. The latest U.S. Department of Labor numbers reveal payrolls expanded rapidly at package-delivery operators, as well as at warehouse and storage companies.
The latest December labor report showed more hiring momentum than was originally believed at warehouse and storage companies, which added 5,300 jobs, while package-delivery operators hired 4,900 workers. Employment tied to online business helped boost by 44,900 the December estimate for jobs in the warehouse/fulfillment center sector. Overall, the sector gained 39,400 jobs since January 2017, with last month’s total employment in the industry reaching a new high at 1,016,500 jobs.
The growth in logistics jobs underscores the key role e-commerce now plays within distribution channels, and reflects just how it has emerged as a driver of the American economy. That shift has been evident in recent numbers from the Labor Department, which has tracked the increasing role shifts, as logistics operations carry more of the load.
Clearly, the pressure is on shippers, parcel carriers and retailers to meet increasing demand for quick and efficient deliveries. That was a significant challenge that presented itself as a tough test during the 2017 holiday season.
Amazon.com reported a record $1.9 billion in quarterly profit, up more than double as the e-commerce giant captured roughly 50% of all e-commerce holiday season sales. That achievement came as a result of greater supply chain efficiencies, as well as consumer’s changing online buying habits.
United Parcel Service Inc. plans to scale up its capex spend in 2018 to $7 billion, in an effort to ensure it isn’t caught short-handed again by unexpected surges in volume. It spent an extra $125 million to get trucks and planes into the 2017 holiday rush. The company plans to upgrade and expand automation at sorting centers and add 18 jumbo jets, in a move to add capacity to handle near future growth and quickly usher in a more digital commerce-friendly platform into its distribution network.
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