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In
southern California, automation is already
being used in some warehousing facilities,
according to John Husing, an international
trade economist for the Inland Empire.
Shoe
company Skechers, for instance, operates
a more than one million-square foot distribution
centre in Moreno Valley that is fully automated,
Mr Husing said. While the facility employs
600 people, all the employees handle technology
that does all the manual labour, he said.
Mr
Husing said throughout history, technological
advancements have reduced the use of labour,
but have also increased efficiency and productivity,
leading to higher pay for the people who
can handle the new technology.
"It's
changing the nature of the jobs in that
it takes fewer people to do things,"
he said. "But somebody has got to take
care of all that equipment. So what you
end up with is a different kind of job being
created than the jobs we've had before."
While
labour unions have concerns about how technological
advancements, such as automation, will change
the workforce, industry leaders say companies
have no other choice but to automate to
stay competitive.
BJ
Patterson, CEO and founder of Pacific Mountain
Logistics, and a member of the International
Warehouse Logistics Association (IWLA),
said work stoppages at local ports caused
by labour disputes between the ILWU and
the Pacific Maritime Association (PMA) were
"devastating" to the industry
and harmed the local workforce's reputation.
The
only way to rebuild trust in the dependability
of US west coast ports long term is to become
more efficient by implementing new technology
and automation, he said.
"We
have to protect ourselves, our business
and our industry from these mind numbing
stoppages," Mr Patterson said. "It's
unfortunate. We lost a lot of business.
It's going to take a long time to recoup
that."
According
to PMA officials, the new five year contract
reached with the ILWU earlier this year
comes with a new arbitration system that
will help reduce work slowdowns and stoppages
while providing a "clear path forward
for automation projects."
Numerous
efforts were made to reach the ILWU for
comment, but calls were not returned.
Barriers
to implement technological advancements
at the ports, however, go beyond just labour,
Mr Friedmann said. He noted that local governments
enforcing burdensome permitting processes
and environmental regulations in California
have also stymied various technological
advancements, such as making rail connections
more efficient.
For
instance, Burlington Northern Santa Fe Railway
(BNSF) has been prevented from building
its Southern California International Gateway
(SCIG) rail yard as the City of Long Beach
and other entities have sued the Port of
Los Angeles over potential environmental
impacts.
Mr
Friedmann said local governments should
have allowed the rail yard to be built years
ago, adding that the project would implement
new technology and automation, both which
would help reduce emissions.
He
said technological advancements in cargo
handling are inevitable, adding that both
labour unions and local governments should
realise that other ports now have more of
a chance to take cargo away from the US
west coast ports.
"The
rules are changing whether we like it or
not, so you might as well take advantage
of the efficiencies it offers," Mr
Friedmann said. "Because, if California
doesn't, other areas will."
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