Managing a Multicultural Workforce

America’s workforce is becoming increasingly multicultural. At this year’s MHEDA convention, keynote speaker Steven Little predicted that changing demographics will redefine material handling workers and change the way we do business. As Baby Boomers retire and the U.S. workforce shrinks, industry will need to turn increasingly to foreign and immigrant workers. Within a decade, Little said, Spanish will be the primary language spoken in 20% of U.S. homes. Overcoming the language and cultural barriers presented by a multicultural workforce is expected to present a significant challenge for many industries, including material handling, warehousing and logistics operations.

As they have since the founding of America, immigrants bring with them a wealth of diverse languages, cultural traditions and customs. However, communication, productivity, and worker morale can suffer when differences are not addressed. This problem is already being experienced by businesses in the West and Southwest who employ Hispanic workers. Hispanics are one of the fastest-growing groups in the U.S. workforce. Unusually high injury rates and on-the-job deaths among foreign-born Hispanic workers prompted business owners to ask OSHA for help. In response OSHA is starting to offer classes on the social hierarchy of Latino and Asian cultures, both of which are more highly structured and rigid than American culture.

Accommodating the language, customs and social structure of foreign workers is necessary if immigrant workers are to be effectively integrated into the U.S. workforce. Material handling, logistics and warehousing firms that are proactive in accommodating language and cultural differences into their workplace routine will be able to profit from the increasing diversity of America’s workforce.

Webcast: World-Changing Material Handling Trends

The challenges facing American business and our world are mind boggling: recession, labor shortages, global warming, war, the brain drain. Politicians are ranting, people are discussing, and everyone is worrying about what to do. Solutions run the gamut from fantastic to ludicrous. Given the realities of moving and managing resources, surprisingly few of the ideas being bandied about in the press seem realistic. Modern Materials Handling magazine suggests that the most realistic solutions are coming from the world of logistics. The magazine has assembled a panel of experts to discuss some of the most promising solutions to the world’s problems and the trends in material handling that will make them possible.

Trends that will change materials handling — and the world is the subject of an upcoming webcast sponsored by Modern Materials Handling magazine. The live webcast will begin at 1:00 p.m. Eastern Daylight Time on Tuesday, August 29. Click here to register for the material handling trends webcast.

Editor-in-Chief Tom Andel will moderate a panel that will include:

  • John Hill, TranSystems/ESYNC, who will discuss enticing new talent to the logistics workforce through supply chain execution technology.
  • Ron Giuntini, OEM Products-Services Institute, will provide insight into the material handling implications of the service vs product model and its effect on both the economy and environment.
  • Col. Alan Will of the U.S. Marine Corps will share logistics best practices learned on the front lines in Iraq.
  • Dr. John Usher, PhD, a professor with the University of Louisville Department of Industrial Engineering, will describe a future in which Direct Digital Manufacturing will redefine material handling in production environments.

Material Handling Headed for a Workforce Crisis

Not a single one of America’s top players in material handling and logistics wanted their sons and daughters to be working in a distribution center as adults. That was the shocking result of a show-of-hands poll Benoit Montreuil, president of the College Industry Council on Material Handling Education, took during a speech at last summer’s Material Handling and Logistics Summit. The straw poll of industry leaders caused Montreuil to take a hard look at the future of material handling and the workforce issues that will help define that future.

Montreuil believes America’s growing workforce crisis, which he said is not industry specific, is rooted in three issues:

  1. As Baby Boomers retire, there are fewer workers to replace them. America’s workforce is shrinking.
  2. America’s next generation of workers prefers white collar jobs to jobs in factories and distribution centers. To cut costs, many businesses are outsourcing labor jobs to foreign countries. Immigrant laborers comprise the largest segment of factory and distribution workers, a trend that is growing.
  3. Material handling and logistics jobs are perceived to be dull, entry-level jobs requiring little skill and garnering bottom-rung pay.

The obvious short-term solutions are to import more foreign workers eager to work in America under current conditions and for present pay levels, undertake a major marketing initiative to change the negative image of material handling and attract a new workforce, and computerize and automate our operations to minimize manpower needs. However, Montreuil warned that long-term solutions will require a change in the material handling industry’s paradigm.

Next time: The future of the material handling industry.

What Is the Future of the Material Handling Industry?

The future of the material handling industry is at a crossroads in America. A declining workforce, decreased interest in blue collar jobs and negative perceptions about pay and job satisfaction threaten the future of material handling. The short-term solution for survival is to hire an increasingly immigrant workforce, mount a PR campaign to revamp our image, and automate to minimize manpower strain, says Benoit Montreuil of the College Industry Council on Material Handling Education (see our April 18 post). “I believe that each of these three solutions has merits in specific settings,” said Montreuil, “but that it will be insufficient for addressing the scale and scope of the emerging crisis.”

If we are to survive as an industry, material handling must change its basic paradigm, warns Montreuil. He believes that by automating many of the steps in warehousing and logistics, we have stripped workers of the opportunity to think, make decisions and have input into their jobs, the very things that provide job satisfaction. When workers are merely required to follow a pre-determined pattern, as in pick-to-light solutions, they become little better than robots, says Montreuil. By removing the challenge from the job, he believes, we are losing our most important resource — the intelligent, innovative worker.

The alternative paradigm that Montreuil envisions is a material handling industry that relies on highly-skilled, certified logistics professionals operating in self-sufficient teams in distribution centers, factories and logistics applications around the world. These professionals would be “trained to exploit all the physical handling and transport technologies,” says Montreuil, combining automation with manual operations to achieve maximum efficiency. In his utopia, Montreuil sees a material handling industry that offers “career paths for their talented workforce.”