Automation: a force for good?

AUTOMATION IS a disruptor. It changes how things have been and, in doing that, gives opportunity for further change. Logistics is very male-oriented and, in certain roles, very white and middle-aged. It tends to be low margin. And diversity is provably good for business. A combination of these factors made me interested in this important topic: the impact that automation can have on our sector.

By the time you read this, I will have spoken on behalf of Women in Logistics on this topic at least twice. The first time at Tomorrow’s Warehouse in Coventry, organised by Western Business Media, the publishers of Logistics Matters including this annual guide. The second time at CILT’s annual conference, invited after speaking at Coventry.

Twenty minutes hasn’t been long to cover everything that needs to be explored (understatement!). And there’s some really interesting material on the impact of automation out there, and there are also lots of gaps. But first, diversity provably good for business?

The importance of diversity

Diversity is important for business as it encourages innovation (a group of different types of people is more likely to come up with more and better ideas), widens talent-attraction (younger people don’t want to work for companies where they don’t see leadership walking the walk with respect to diversity – and there’s plenty of evidence that many older people don’t want to either) and sharpens decision-making (avoiding group think), which all then play into improved financials. The organisation Catalyst has a multitude of analysis and reports supporting this.

In my presentation at Coventry, I also mentioned a report that I had only heard about by chance. I happened to be in the car the day before, tuned into Women’s Hour on Radio 4, and heard that hospital teams with 35%+ female participation (could be anaesthetists as well as surgeons), were associated with the patient having measurably better post-operative outcomes. I’ve included a link from a similar piece in the Guardian.

Back to automation

There are different definitions of automation. Which aspects should be included and which not? How far are we already through the journey? This is actually one of the more difficult questions to answer. How many engineers work in logistics operations right now? I don’t know the answer to this one either as the statistics published about the number of engineers working in this country are by type: mechanical, electrical, electronic and so on, rather than by industry.

Automation will change the number and type of jobs, and the types of job that we have currently in logistics will be particularly affected by this change – according to some analysis published by the ONS, to a much greater extent than that UK as a whole. The flip side to the increased number of engineers required in logistics, many of whom will be male, is that potential jobs for young & low-educated men are at high risk from automation according to a report by PwC. One of the areas where I believe logistics is a positive force for good outside of its primary role, is the sector’s ability to take people who have not fared well in the education system, and to recognise and nurture individuals who will sometimes end up heading up major logistics functions and companies. It would be a shame if that aspect got lost in any change.

Don’t underestimate the importance of STEM skills going forward – for men and women, young and old. The PwC report, in thinking about the implications of increased automation, says: “Government, working with employers and education providers, should therefore invest more in the types of education and training that will be most useful to people in this increasingly automated world… more focus on STEM subjects (science, technology, engineering and mathematics) where countries like the US and the UK tend to lag behind…”

Changing roles

One of the graphs that I’ve used to demonstrate the impact that automation is due to have on our workforce shows the number of people that worked in a variety of roles in logistics in 2017 (blue for men, pink for women) and the impact that automation is predicted to have on those numbers (shown in grey). But if logistics grows at 4% per year, by 2040 the total number of people employed will be about the same as now, but with a completely different mix of roles.

Not just gender

An earlier paragraph referred to ‘men and women, young and old’, and it won’t be lost on the reader that diversity is not just about gender but also a range of other factors. One of the areas where automation will help logistics is in making the sector attractive and accessible to a wider range of people:

• Those who are older or less physically fit
• People who don’t mind routine and may even find it comforting
• Those (like me!) who don’t want to get dirty and break their nails
• People who don’t speak good English for whatever reason

And so on, you get the picture.

Nothing to do with automation per se, but GXO employs more people with Downs Syndrome than any other company in the UK. There is evidence in the most recent Prologis report, published in July, that seems to point to larger warehouses having a larger proportion of women. Newer distribution centres often have prayer rooms and other facilities that help to attract a more diverse workforce.

When I asked Chatbot Pro about the impact of automation on diversity and gender mix, it came up with an aspect I hadn’t thought of: “Automation can increase economic inequality if benefits are disproportionately directed towards those already in higher-skilled, better-paying jobs, which may favour men. This can further stratify economic sectors along gender lines.”. PS I had to correct the chatbot’s spelling for a UK audience!

Cranfield MSc thesis

Given that this topic is bigger than a twenty-minute presentation or a two-page article, “How automation is changing the demographic mix and pay in UK logistics” will be the subject of a Cranfield Supply Chain Management MSc thesis project, starting Spring 2025, initiated & supported by Women in Logistics.

To do this, the student will need to carry out interviews with representatives from logistics providers, and manufacturers and retailers who are carrying out their own logistics, to understand the impact, and future impact, that automation is bringing to their businesses “on the ground” and how that will affect demographics, positively or negatively, in both existing and newly-established locations.

If this is something that your company would be interested in supporting, please do get in touch!

Kirsten Tisdale, Women in Logistics UK

Links to articles and reports referred:

Catalyst on importance of diversity and inclusion: https://www.catalyst.org/research/why-diversity-and-inclusion-matter/

Guardian article on impact of having more women in hospital surgery teams: https://www.theguardian.com/world/article/2024/may/15/hospital-surgical-teams-with-more-women-improve-patient-recoverystudy-finds

ONS analysis: Which occupations are at highest risk of being automated: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/articles/whichoccupationsareathighestriskofbeingautomated/2019-03-25

PwC report: Will robots really steal our jobs? https://www.pwc.co.uk/economic-services/assets/international-impact-of-automation-feb-2018.pdf

Prologis research on logistics employment: https://www.prologis.co.uk/news-research/global-insights/critical-infrastructure-driving-employment-growth-within-uks

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