April 25, 2016
Logistics firms in the Inland Empire may be forced to make significant investment in robotic technology as a result of California’s minimum wage increase. Economists who closely track the area’s industrial industry say lower paid, hourly warehouse workers typically work part time.
The newly-passed pay hikes that are set to increase to $15 per hour by 2022 place financial pressure on logistics firms. The likely result is that companies will explore ways to improve efficiency and trim costs with logistics automation.
Economist John Husing says Skechers’ 1.8 million-square-foot distribution center in Moreno Valley, CA is a prime example. Opened in late 2011, the facility features advanced robotics systems that can pack and sort products, with few people on site, except for those who take care of the main computers and air conditioning system.