Monday, January 25, 2016

Impact of Immigration (or Not) on US Logistics


What would be the potential impact of tightening the immigration noose on a workforce which has a significant proportion of foreign born labour in its ranks

  • Transportation: US industry and the Logistics business is already reeling under an acute driver shortage. The total % of immigrants working as drivers is higher than the total percent- age of immigrants in the U.S., which is estimated at 13 percent. The proportion of immigrant truck drivers is particularly high in certain states such as California (46.7%), New Jersey (40.4%), Florida (32.2%), and New York (25.7%). In case there is any pressure on their stay in US this pool of limited number of drivers will most probably shrink further
  • Warehousing: a significant proportion of the warehousing labour is foreign born. In US warehouses today, a large contingent of workers who speak English as a second language is not the exception, but the rule.While Automation is reducing dependence on manual labour for put ways, moves and picks, it will remain a significant portion of the total effort involved in these crucial functions. In fact multiple process and technology aids are being leveraged to bridge any communication gaps between the work force and the supervisors. 
Such beautiful welcoming words

  • Supply Chain Management: The supply chain industry will need to fill about 1.4 million new jobs between 2014 and 2018.  The number of available positions and the requirement of skilled high level management is also likely to inflate in coming years as the US Baby Boom generation reaches retirement age and the need for workers with experience in engineering, analytics and robotics continues to rise. Since these positions cannot be fulfilled entirely by the native born talent, there will be a need to fulfil them through foreign born graduates from US universities or even foreign located professionals working in Multi national businesses. 

From all aspects a blanket ban or antipathy towards immigration in an Immigrant country like the USA is going to immensely harm not only the functioning of the Logistics industry but by it the entire economy.  

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