The COVID-19 pandemic affected constituent groups within the logistics industry in different ways, with some impacts temporary and others becoming more permanent.
First, it reinforced the fundamental role that trucking and logistics play in the US economy. These two segments were deemed essential early in the pandemic. Truckers and warehouse workers went back to work immediately and were instrumental in keeping essential goods flowing even as COVID-19 cases ravaged our communities.
Other service-based businesses and retail establishments were also affected to various degrees. Some shut down completely and didn’t reopen, and many others are still recovering and struggling to hire employees, restock inventories, and rebuild their business as restrictions are lifted.
And then there is the third group of literally millions of professionals now working from home, the majority of which likely will not return full-time to an office in the foreseeable future.
All these events have fundamentally changed the world of logistics and how services are provided, resulting in a disconnect between past practices and new realities.
As the pandemic eased, manufacturing volumes returned while e-commerce surged, putting that much more pressure on warehouse operators to staff up for soaring demand. Experienced warehouse workers, supported by COVID-19 relief funds, delayed returning to the workforce or chose other fields. Long-time truckers, already independent by nature, chose earlier retirement rather than dealing with mandates and restrictions that impacted their earnings and lifestyle. The normal ebb and flow of hiring was dramatically disrupted.
Lastly, companies hurt by “just-in-time” inventory practices reversed course, ordering and holding much higher levels of inventory. That further exacerbated pressure on warehouse space, already stretched thin and now secured at even more of a premium — if shippers can find it.
It’s a new world for logistics operators. Whether staffing, finding trucks, helping clients manage more inventory for longer periods, or pivoting to e-commerce fulfillment, all these realities present complicated challenges that will take time, planning, collaboration, and investment to solve.