Job postings alone will not solve labor shortages! Tips for improving labor shortages in manufacturing and logistics sites.

"Labor shortages are expected to become a significant challenge in the manufacturing and logistics industries. With Japan's aging population and declining birth rate, relying solely on job postings is insufficient to address the labor shortage effectively. This article provides insights into the causes of labor shortages in manufacturing and logistics sites and offers tips for problem-solving.

The Ripple Effects of the 2030 Problem on Manufacturing and Logistics

What is the 2030 Problem?

The 2030 Problem refers to the potential social issues expected to arise in Japan around 2030. As the country faces a declining birth rate and aging population, it is projected that the current labor force of approximately 70 million people will decrease to around 63 million by 2030, a decline of approximately 10%.

Moreover, the 2030 Problem extends beyond labor force reduction. In the manufacturing and logistics sectors, where the majority of the workforce has traditionally been adult males, there will be a shift in the demographics. The proportion of adult males is expected to decrease, while the proportion of women, seniors, and foreign workers will increase. This poses challenges in assigning physically demanding tasks to women and seniors and dealing with language barriers when employing foreign workers.

Given these impending challenges, securing talent has become a pressing issue in the manufacturing and logistics industries. However, due to the following factors, it is difficult to attract sufficient manpower.

The Significant Impact of Labor Shortages on Manufacturing and Logistics Sites

Several factors contribute to the exacerbation of labor shortages in manufacturing and logistics sites

Aging Population

The manufacturing and logistics sectors are particularly affected by the ongoing trend of an aging population.
The proportion of individuals aged 65 and above has increased from 4.5% in 2000 to 8.8% in 2019 within the manufacturing industry.
The proportion of individuals aged 15-34, which has traditionally formed a significant portion of the workforce, has declined.

source
https://www.meti.go.jp/report/whitepaper/mono/2020/honbun_html/honbun/102011_1.html

Prolonged Working Hours

Long working hours have become commonplace in manufacturing and logistics sites due to chronic labor shortages.
Insufficient manpower leads to increased workload per employee, resulting in prolonged working hours.
The normalization of long working hours contributes to high employee turnover, further exacerbating labor shortages.

Negative Industry Image (""3K"")

The manufacturing and logistics industries are vital for supporting people's lives, but they often suffer from negative perceptions associated with physically demanding work, unclean environments, and safety risks, commonly referred to as the ""3K"" image.
Such negative perceptions deter young individuals from entering these industries.
The industry also faces challenges in promoting female participation due to perceived gender barriers.

Key Points for Resolving Labor Shortages in Logistics

To break free from the negative spiral of labor shortages, it is crucial to focus on automating logistics processes and reducing the burden on workers. The following are two main approaches

Utilize Robots

Implement ""complete automation"" using robots for tasks such as heavy lifting and data verification, reducing the burden on employees.
Automation leads to increased overall process speed and reduced employee workload.
Collaborative automation can support workers in performing complex tasks, improving efficiency and enabling the engagement of younger workers.

Harness Logistics Systems

Utilize Warehouse Management Systems (WMS) to manage overall functions and processes, including receiving, inventory management, shipping, and inventory counting.

Automate and streamline manufacturing and logistics processes through the use of robots and logistics systems.
By reducing reliance on human skills and experience, standardization becomes possible, enabling the industries to adapt to the challenges of an aging population and labor shortages.

Solve Labor Shortages with LOGITO's Logistics Automation

As an engineering-focused machinery trading company, First Jitsugyo offers LOGITO, a logistics automation solution. Leveraging their extensive knowledge and experience as a comprehensive machinery trader, they provide optimal proposals for technical support, workload reduction, and problem-solving at various sites.

Furthermore, First Jitsugyo provides end-to-end support, including analysis of the current situation, layout proposals, equipment selection, construction, and after-sales maintenance.

If you are interested in resolving labor shortages through logistics automation, please refer to the following material."