Berkshire Grey Research Finds 64% of Chief Supply Chain Officers Say Generation Gap is a Leading Cause of the Labor Shortage in Warehouses.

Nearly three-quarters of executives see robotics automation in warehouses as a solution for the growing gap in younger job applicants

Over half (51%) of executives confirmed they were in the process of adopting or planning to adopt robotics, and 78% expect order fulfillment cost savings of more than 10%

Berkshire Grey, Inc., (Nasdaq: BGRY) a leader in AI-enabled robotic solutions that automate supply chain processes, today announced their 2022 State of Retail & eCommerce Fulfillment Report. The research, conducted in partnership with Hanover Research, surveyed Chief Supply Chain Officers at retail and ecommerce businesses on topics including labor issues, costs, pain points, automation and predicted areas of industry growth to uncover how organizations are meeting increasing consumer demands in today’s always-on retail world. 

The study found chief supply chain officers expect the labor shortage to continue to grow in their industry, with 64% noticing generational differences in employment preferences that will have a long-term impact on labor availability. Along with many warehouse laborers permanently leaving the field due to a multitude of factors including reskilling, pandemic-related illness and an aging workforce, the industry is also being hit with a combination of population forces: the lowest birth rate in U.S. history paired with Baby Boomers retiring out of the workforce, as well as a generational shift in what employees are looking for in their careers and workplaces.

“Labor issues across industries continue to vacillate, but unlike the temporary shortages seen in other industries, continued eCommerce growth and shifts in generational employment preferences are uniquely impacting the fulfillment industry and predicted to lead to long-term labor shortages that will only compound in the coming years,” said Steve Johnson, President and COO at Berkshire Grey. “In addition to compensation strategies, companies need to utilize robotics automation in order to stay ahead of this demographic shift. Not only is it a huge attractor for young talent due to the increased safety and specialized upskilling it enables, it is also a game changer in terms of cost reduction, throughput and ROI.”    

Robotics Automation Improves Talent Attraction and Retention, Closes Generational Gap

With more than half (57%) of executives believing labor shortages have hindered their ability to meet demand, it’s critical for supply chain decision makers to find a way to bridge the gap. 76% of executives believe they’ll need to raise wages and 63% believe they’ll need to increase bonuses to attract and retain workers. Executives also believe robotics automation is a promising talent attractor.

• Nearly three-quarters (71%) of executives believe robotics automation is necessary to counter reduced applications from younger generations.
• Although less than one quarter (13%) of executives say they are currently using robotic automation, they are keenly aware this is where the industry is headed, as evidenced by over half (51%) of executives being in the process of adopting or planning to adopt robotics.
• Over half (51%) of executives believe implementing automation will increase employee satisfaction, and 43% believe it will lead to a decrease in employee turnover.

Consumer Demands and Expectations Are Rising

Rising consumer expectations and on-demand shopping resulting from the COVID-19 pandemic are requiring retail and eCommerce companies to greatly step up their throughput, with experts predicting the eCommerce market to increase from $3.3 trillion to $5.3 trillion by 2026.

Free returns are growing to be table stakes — nearly three-quarters (72%) of executives believe they would lose customers if they didn’t offer free returns.

More than two-thirds (68%) of executives believe they will need same day or faster delivery speeds within two years.

More than three-quarters (80%) of executives that saw an increase in return rates in 2020 have needed to increase headcount to accommodate the increase of returns.

Automation’s Impact on the Bottom Line

Since 2019, the percentage of executives who believe automation is mainstream has increased by nearly 43%. This rise in awareness and adoption is no surprise given the huge cost savings and throughput increases robotics automation is providing amidst supply chain challenges.

• More than three-quarters (78%) of executives expect to save more than 10% on order fulfillment costs as a result of robotics automation.
• Most executives (85%) currently using robotics are planning to increase their investment.
• Executives are most likely to use automation to support packaging/labeling (62%), item sortation (59%), returns (58%) and goods retrieval (58%).

The results contained within the report are based on a survey of over 200 senior-level supply chain decision makers in the U.S. at eCommerce and retail businesses.

To learn more about Berkshire Grey, visit www.BerkshireGrey.com.

Guide to fire retardant conveyor belts for general use above ground

If a belt does not perform according to the manufacturer’s claims by wearing prematurely or ripping too easily for example, the risk to life is relatively small. But if a conveyor belt that is specified as being fire retardant catches fire but does not resist the fire the way that it should do then the consequences can be catastrophic.

No conveyor belt is fire proof

The most important thing to bear in mind is that conveyor belts cannot be totally fire proof. The rubber used for the covers and the rubber skim between the fabric plies can be engineered to resist fire but the complete structure of the belt cannot be made fireproof. When choosing a fire retardant conveyor belt, deciding on the actual level of fire retardancy needed for a specific application or environment is of crucial importance.

Envıronments with inflammable dust and gas

The most basic electrical and flammability safety requirement for general use (not underground) is EN 12882 Category 1. For ATEX regulated areas where coal dust, gas, fertilizer, grain or other potentially combustible materials are involved, it is essential that the conveyor belt cannot create static elericity that could ignite the atmosphere. At Dunlop we decided some time ago that the safest approach was for all of our belts to be anti-static and conform to EN/ISO 284 inter-national standards. This means that they can all be used in ATEX 95 (94/9/EC Directive) classified zones.

Above-ground and general service applications

Because fire safety is such an important issue there are numerous safety classifications and international standards for which there are many different tests used to measure the self-extinguishing properties of conveyor belts. The basis of most tests for belting used in normal industrial applications is EN/ISO 340. This standard makes the distinction between fire resistance with covers (K) and fire resistance with or without covers (S). The relevance of “with or without covers” is that wear reduces the amount of fire resistant rubber that protects the flammable carcass. The best way to decide between ‘K’ and ‘S‘ grades is to consider the material being carried. For moderately abrasive materials, grain for example, the ‘K’ grade is usually perfectly adequate. However, if the material is abrasive and tends to wear the top cover quite rapidly, or if carry-ing biomass (which can self-combust) then the safest option is to choose the ‘S‘ (Class 2B) grade. In both ‘K’ and ‘S’ grades, the rubber skim that bonds the fabric layers of the carcass together must also be fire resistant. In the case of ‘S’ grade (fire resistant without covers), the rubber skim should be thicker than the skim used for ‘K’ grade.

Fire and wear resistant

The ingredients used to create a fire resistant rubber compound generally have an adverse effect on its wear resistant properties. As the thickness of the rubber reduces so does the level of protection. At Dunlop our rubber compound technicians have developed fire resistant rubber compounds that are extremely resistant to abrasion. Buyers should always request a technical datasheet that shows the level of abrasion (wear) and should demand an average of less than 150mm³

EN/ISO 340 testing EN/ISO

340 tests involve exposing 6 individual samples of belt to a naked flame causing them to burn. The source of the flame is then removed. A current of air is then applied to the test piece for a specified time after the removal of the flame. The time it takes for the belt sample to self-extinguish after the flame has been removed is then measured. The duration of continued burning (visible flame) should be less than 15 seconds for each sample with a maximum cumulative duration of 45 seconds for each group of six test samples. This determines how fire can be carried along a moving belt. Even if a manufacturer states that their fire resistant belt has passed the ISO 340 test, the buyer should still exercise caution. A typical conveyor belt can easily spread the fire more than 40 meters within 15 seconds. For this reason Dunlop’s required time limit standard is no more than one second, ideally 0 seconds. Buyers of fire resistant belts are recommended to ask to see copies of the test results and to check that the laboratory that has carried out the tests complies with EN ISO 17025 (chapter 5).

What standard of fire resıstance do I need?

For the vast majority of belts being used in the open air, Class 2A or 2B is perfectly adequate. Class 2A demands that the belt is able to pass the ISO 340 with the covers intact on the belt samples (‘K’ grade). Class 2B requires that the belt can also pass the ISO 340 test with the top and bottom cover rubber removed (‘S’ grade). The electrical conductivity of the belt also needs to fulfill the requirements of ISO 284.

Don’t play with fire

Although manufacturers and suppliers provide test certificates, in some cases the certificate may only relate to the belting that the manufacturer produced for test certification purposes. The actual belt delivered to site may well not be up to the required standard. For greater peace of mind we rec-ommend ordering an extra meter of belt for testing by an ac-credited testing authority or laboratory.

Climate protection and sustainability are increasingly important success factors in the replacement parts business and for workshops. Continental has got on board with this trend and is presenting solutions that respond to the challenges at hand. The business area Power Transmission Group will unveil a trio of innovations for drive belts and belt drive components, as well as additions to its range of products. 

New timing belt based on synthetic rubber

Marking its debut will be a new timing belt whose profile side is made not from polychloroprene as usual, but from a new and patented synthetic rubber compound. This has many benefits for both the environment and the climate, which is becoming an increasingly effective selling point: “The raw materials used already have a significantly lower global warming potential,” says Hermann Schulte, responsible for the Timing Belt Development for the Automotive Aftermarket at Continental. “And the new compound generates an around 50 percent smaller carbon footprint – from its manufacture to the disposal of the belt.” There are also some interesting technical pluses: The new timing belts enable higher power transmission and offer improved cold and heat resistance. The new timing belt is ready for series production and is slated for introduction worldwide up to the middle of 2023.

SUSTAINABELT belt study

Continental is showcasing the potential of drive belts to enhance sustainability and climate protection with its SUSTAINABELT belt study. “This belt brings together pretty much everything our development engineers have come up with in terms of sustainability,” explains Karim Fraiss, responsible for the product range at Continental as Head of Product Line Management Automotive. This includes tension members and fabric made with organic fibers and biopolymers from renewable raw materials. Continental is looking to use the belt study to spark conversations with visitors to its show stand on increasing sustainability in the automotive aftermarket; after all, this will become the central success factor for workshops – and therefore also for the retail business – going forward. “We picked up on this trend early on and have therefore been investing continuously in researching which materials and processes we can use to make our products even more sustainable,” adds Fraiss. “The products that make it into series production will have been tailored to the wishes of our customers and partners so that their needs can be served precisely using our innovations.”

New packaging concept: smaller, lighter, more climate-friendly

Continental will introduce a new packaging concept for its accessory drive kits with water pump. Previously, the individual components of these kits (belts, water pump, tensioner pulleys, etc.) have been packed into individual boxes, which are then stacked together in a large outer box. In future, however, a specially folded cardboard insert will ensure that all components are held securely in place with good protection inside the box without the need for individual packaging. This means only half the amount of cardboard has to be produced, significantly reducing CO2 emissions. “There are also other climate-relevant advantages when it comes to transportation,” adds Anna Bentlage from Projects and Standards at Continental Power Transmission Group Automotive: “Since the new packaging is lighter and smaller, haulage companies will be able to transport just under 70 percent more belt drive kits with water pump on a pallet. And that substantially increases operating and fuel efficiency. By our calculations, this cuts our CO2 emissions by around 390 tons annually.” Added to which, the cardboard used for the new kit packaging is made entirely from recycled material and is itself recyclable. Dealers gain from having significantly more space on their shelves, while workshops can enjoy easier handling when unpacking, greater clarity in their workplaces and a lot less cardboard packaging waste.

Mild-hybrid kits

Belt alternator starters (BASs) like Continental’s 48V Eco Drive system cut fuel consumption and therefore CO2 emissions by up to 15 percent in many modern engines with hybrid drive. To ensure these benefits continue even after the belt is replaced, special belts are required which can withstand the particular challenges presented by hybrid drive systems. To this end, Continental is expanding its range of products here so it now covers practically all relevant vehicle applications in the European market. Among the new items are multi V-belt kits with the product designation “EXTRA” for over 670 special vehicle applications. The Omega tensioner pulleys typically found in these drive systems are included, as are all small parts required for assembly. This means fitters have everything they need easily to hand – enabling safe and efficient repairs to hybrid vehicles with BAS. Fitters can find the full range of products, together with helpful additional information, in the Product Information Center (PIC).