Minimum Wage Laws Pose a Threat to Logistics and Warehousing

Minimum wage is a hot topic these days, with political candidates bandying about different numbers.  It’s an idea with traction on both sides of the political spectrum (Clinton, Sanders, and Trump among those who promise to increase minimum wages) and one that plays to concerns about the loss of middle class jobs and to economic inequality.

Without taking sides, it’s clear that increased minimum wage laws will change the logistics industry.  Labor tends to make up a large percentage of overall costs in supply chain.

 

Smart, connected cities are closer than you think; Inevitable minimum wage hike has supply chain implications

 

A piece in the Wall Street Journal Logistics report reads: “In a report released Friday, analysts with real-estate brokerage firm CBRE Inc. estimated a $1 increase in average hourly wages could add more than $1 million in annual costs to a warehouse operation employing 500 people. For e-commerce facilities, which can be two-to-four times more labor-intensive than a typical warehouse—especially during the busy holiday shipping season—the impact could be even greater, the report said.”

 

It’s a situation that has the attention of experts in all areas of logistics and supply chain.  Give us a call to talk to us about the latest in logistics trends.