Warehouse Hiring Surges on Rising E-commerce Demand

eCommerce

In April, many warehouse operators increased hiring to meet the high e-commerce demand that
drove up distribution center employment. Because of this growth other sections of freight and
transportation have slowed down.


In just a few months, there were around 5,400 new jobs added by warehouse and storage companies.
This figure comes from the Labor Department as growth has risen over the course of four months.
This growth also includes fulfillment centers which process and ship thousands of orders online.
This sector alone has added close to 70,000 new jobs in the past year alone.


Among the messenger and courier services there were an additional 1,000 new jobs added this past
April.

E-commerce Demand


As warehousing and delivery grow they can thank the growth of e-commerce as they too push
companies to add more fulfillment centers with close proximity to population centers. This will
ensure that customer deliveries will be made on time. Because of this the U.S. Census Bureau
reported that online sales in 2018 had jumped as high as 14.2%.


As Amazon.com gets ready to invest $800 million, an influx of job opportunities could be seen
among warehouse and storage companies due to their want to start one-day deliveries.

With Amazon’s new one-day delivery service in place we could easily see a growth in e-commerce
almost immediately. This will force other retailers to speed up their own distributors in order to stay
competitive. Because of this fast service many “last-mile” delivery companies could benefit
significantly such as J.B. Hunt Transport Services.

In April, 263,000 jobs were added to the U.S. economy. Not only did this exceed the expectation of
economists but it occurred as the employment rate reached a low of 3.6%. This decline in
unemployment is the lowest ever seen in the last 50 years along with a declined amount of labor-
force participation.

There were 11,100 new jobs created in the Transportation and warehousing sector which also
included 5,100 new jobs in ground passenger transport and transit companies.

Many sectors in the report were mixed when it came to dealing with freight and logistics because of
their relation to healthcare and other administrative services which deal very little with shipping.

In the manufacturing sector there were 4, 000 new jobs added as U.S. factory activity slowed. This
caused businesses to experience uncertainty as trade tariffs continue to loom regardless of the global
economy cooling.

The trucking industry seems to be refiguring itself following a huge amount of expansion. This is
causing truckers to be careful not to leave a big gap between them and the freight market.

Take control of your freight with an Asset-Based 3PL Warehousing Company
that can keep your cargo secure. Request a free quote today!

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