Amazon Running out of Workers

I mentioned this a while back (I know a guy) and was met with some skepticism. But it is out in the open now. Amazon is at risk of burning through their entire pool of available workers. Part of the issue is that fulfillment centers need to be located in rural areas with lots of available land. Once you have hired everyone in that area that wants to be hired, there is no one else.

Amazon is facing a looming crisis: It could run out of people to hire in its US warehouses by 2024, according to leaked Amazon internal research from mid-2021 that Recode reviewed. If that happens, the online retailer’s service quality and growth plans could be at risk, and its e-commerce dominance along with it.

https://www.vox.com/recode/23170900/leaked-amazon-memo-wareh…

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Part of the issue is that fulfillment centers need to be located in rural areas with lots of available land. Once you have hired everyone in that area that wants to be hired, there is no one else.

I think this may be overstated, although I am sure there are some areas where it is true.

Amazon just took over the second largest mall in our area and is turning it into a fulfillment center. It was successful for 20 years but is in a mid- to down-scale area and spiraled down to mostly closed shops and nail salons; the 2008 debacle crushed them. But needless to say they are in a dense population area, have oodles of parking lots and a giant footprint to build the warehouse of their dreams.

Meanwhile, 20 minutes away, they have built another near the airport (they already have one 20 minutes on the other side of it), both near/in a second tier city next to me. So in tiny little Knoxville I will have 3 Amazon warehouses, 20 minutes in one direction, and 20 and 40 minutes in the other, all located, of course, within spitting distance of an interstate.

(And there are lots and lots of uh, not highly employable types being pushed out of the high schools here, so I don’t worry that Amazon won’t be able to find workers, at least around here.)

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I think this may be overstated, although I am sure there are some areas where it is true.

I read the article. It is worth reading. Using current labor practices, Amazon has looming labor shortages. However, technology, wages and
management changes can all solve these problems. So, yes, it is overstated. It is like me saying I have a weight problem while drinking beer and scarfing down oreos. Yes, my pant will soon no fit but I do have some control
over the situation.

On the other hand, you are correct, there are some areas that have already run out of labor in 2021 and others that will be out in a month or two, and others like Memphis will be tapped out before Black Monday 2023.

While there is some poor speculation, “Robotics will get social push back” most of the article is based on internal Amazon analytics and these are proven 94 percent accurate.

The article is worth the 5 minute read.

Cheers
Qazulight

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Amazon is facing a looming crisis: It could run out of people to hire in its US warehouses by 2024, according to leaked Amazon internal research from mid-2021 that Recode reviewed.

By 2024 they might be using TeslaBots! LOL

The Captain
kind of funny, no love lost between Jeff & Elon…

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“I mentioned this a while back (I know a guy) and was met with some skepticism. But it is out in the open now. Amazon is at risk of burning through their entire pool of available workers. Part of the issue is that fulfillment centers need to be located in rural areas with lots of available land. Once you have hired everyone in that area that wants to be hired, there is no one else.”

Working for Amazon Warehouse is a very ‘energetic’ job. You’re expected to walk MILES a day, day after day. Nowadays with 50% overweight/obese that limits the pool of folks to start with.

Had a friend who used to work for AMazon warehouse during the xmas rush period. He lived about 60 miles away from center in southern KS…and had a motor home. He would drive motorhome and stay in it in a campground that Amazon paid for - electricity and water and cable…and work 60+ hours a week. On days off (usually one) he’d head home to the wife. went on eight or 10 weeks weeks. Great pay with the overtime…but you walked 10 miles a day and hustled. Always moving and grabbing things, then on to the next isles. wore out some shoes. Bunch of other folks did same. Came from miles around.

Now with gas at $5 or more…might be harder to attract workers from further away - driving 40 or 60 miles each way…is going to eat up a lot of money. Not all have small eco-cars.

He did that for 10 years to supplement his small pension and SS. earned a lotta bucks in those
two months or so…thousands and thousands and that was 20 years ago. Had other problems after 10 years and that was that.

During the ‘off season’, he and wife would spend time as campground hosts on a Corps of Engr lake site park. Got paid (very small amount) plus free trailer spot, free utilities including cable, for 20-30 hours a week of ‘work’. Some hosts ran the entrance station. Others were designated ‘isle person’ to check in new campers to a row of spots and take care of problems. Essentially zero cost living plus a small stipend. Also had a small house in rural OK when not doing that.

Now passed away. Good memories…

t.

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“I mentioned this a while back (I know a guy) and was met with some skepticism. But it is out in the open now. Amazon is at risk of burning through their entire pool of available workers. Part of the issue is that fulfillment centers need to be located in rural areas with lots of available land. Once you have hired everyone in that area that wants to be hired, there is no one else.”

Working for Amazon Warehouse is a very ‘energetic’ job. You’re expected to walk MILES a day, day after day. Nowadays with 50% overweight/obese that limits the pool of folks to start with.

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The additional dynamic at play is that Amazon just isn’t using up all available labor in some of these communities, they are burning through that labor pool. It’s one thing if you are Apple and employ software engineers at $180,000/year and there are no more engineers available. I don’t think that is exactly the problem Amazon is encountering. They are finding that anyone left in the market in the age/skill bracket that was previously likely to consider this type of work is A) already doing so or B) has already tried and LEFT due to the conditions and pay and won’t come back.

While I understand people want to find work, I have been surprised so far how Amazon has attracted as many people as it has into these jobs. If you had suggested to the average person 20 years ago, “Hey, wanna work in a warehouse eight hours a day moving 20 pound packages like a banshee?” the answer would have been “Uhhhhh, hell no…” Do people think that warehouse work at Amazon is somehow different? Even if robotic pickers eliminate much of the walking, that’s not any better cuz now you’re STANDING still for eight hour shifts doing rapid, repetitive movements which is no better for your body.

WTH

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<Once you have hired everyone in that area that wants to be hired, there is no one else. >

This isn’t true. Amazon deliberately attracts many people who live full-time in their vehicles to work in their fulfillment centers. (Motor homes, etc.) This is partly seasonal to cover the holiday surge in orders, but the workers can also live and work full-time.

For a detailed description, read the non-fiction book, “Nomadland,” by Jessica Bruder. The movie that was based on the book includes some of the actual people as minor characters playing themselves.

https://www.amazon.com/Nomadland-Surviving-America-Twenty-Fi…

Which is not to say that some fulfillment centers may not attract enough workers under current conditions.

Wendy

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I guess they’ll have to build company towns, now. But with the overall worker shortage, I don’t think that will work all that well, unless they bring in immigrants. So I guess we’ll soon see some lobbying for loosening the requirements for green cards.

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Meanwhile Amazon CEO has stated they over built based on previous growth rates and construction time. Now they are leasing warehouse space to others and may be moving manpower to other sites.

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"Part of the issue is that fulfillment centers need to be located in rural areas with lots of available land. Once you have hired everyone in that area that wants to be hired, there is no one else. "


Not strictly true - there are other shipping firms that they can hire. I was talking to the mail
man Friday afternoon as he was unloading his van in the street in order to get to his next
container of mail in the neighborhood. He had a dozen boxes labeled “Amazon” of different
items which were to be delivered later in his route.

Howie52
I’ve seen FedEx and UPS deliver for Amazon - as well as several local firms.

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I guess they’ll have to build company towns, now.

Motor home parks!

The Captain

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By 2024 they might be using TeslaBots! LOL

LOL, not very likely. I probably won’t even have my cybertruck by 2024.