It has always made more sense to raise wages and invest in people rather than large capital projects. To keep up with this demand, deliver on time and keep shelves stocked, the industry has traditionally relied on its workforce. The food and beverage market is growing fast and the “Food and Beverages Global Market Report 2023,” by The Business Research Company expects it to reach to $9.23 billion by 2027. There’s no other way to do it.” Maximizing labor top of mind We still need to move the same amount of goods with less labor, and you have to rely on technology to be able to do that. “The pandemic, if anything, increased demand to a new level. Solutions that were reserved for the industry’s biggest players are now being implemented in warehouses across the country as companies struggle to attract the skilled labor needed to efficiently run their operations.įood and beverage are low margin contributors to profitability, so strains in labor costs, input costs, raw materials costs or transportation costs have a big impact. Advances in forklift technology, automated solutions and robotics that once seemed out of reach for small- to mid-sized companies are quickly becoming an everyday reality. To combat these strains on operations and profits, the industry is turning to technology. “Both food and beverage, from a distribution and wholesale standpoint, are very low margin contributors to overall profitability, so the slightest strain-whether that be labor costs, input costs, raw materials costs, transportation costs-all heavily affect the margins and the profitability of producers, wholesalers and distributors,” says Mark Koffarnus, director of major accounts at Yale Lift Truck Technologies. A nearly decade-long labor shortage tops this list, exacerbated by constantly changing consumer preferences and a growing demand for more variety. Those in the business of food and beverage have long worked to do more with less, but today, the industry faces some of its biggest challenges yet. For an industry historically challenged by thin margins and high costs, creative solutions and out-of-box thinking are not new.
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