Dislocation of Factory Workers
Interesting indeed - ecommerce companies are paying better than factories. Simply, as ecommerce continues to grow, factories must improve wages or there would be a dislocation. Yes, the warehouses would need the items to be produced before they can be shipped to customers. This redesign is a big risk for the manufacturing sector if they cannot find people to work the machines.
Many factories are reporting labor shortages despite continuing high unemployment numbers, according to The Wall Street Journal. In some cases, the shortages have prompted companies to get creative by asking existing workers to cancel vacations, putting executives on the floor and asking support staff to pitch in. In addition to the fear of contracting COVID-19, experts say many factory workers are leaving for e-commerce warehouse jobs because the pay is often better.