John Murdoch, CEO of Alfacon Solutions, discussed how higher labor rates are driving automated conveyor solutions across North America, in the recent issue of AutomationMedia.com.
Murdoch explained, “With near full employment in North America the costs of labor in a distribution center is quickly approaching $18 per hour, nearly double from the 2010 rate. At lower wages, it was more difficult to cost-justify the automation expense. Management could throw more labor at the volume issue. Now with much higher labor rates, which does not include health insurance, workers’ compensation, vacation time, and safety concerns, conveyor automation is axiomatic and needed more than ever before.”
Conveyors are a core component of all material handling or automation systems. Conveyors are used to transport, accumulate, and sort packages, boxes, or products. From receiving to order picking and fulfillment; from transportation of product to packing or shipping areas, conveyors are the freeway leading to final shipping sorting and accumulation.
The landscape for automated conveyor systems is changing as distribution changes. Distribution centers are handling more individual items than ever these days. Grocery store chains and big box retailers are receiving mixed-SKU pallets that are designed for specific aisles in a store. Retailers that once received full pallets of product once a week or month are now receiving a few cartons every day.
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Founded in 1983, Alfacon Solutions (www.alfaconsolutions.com) is a leading case and pallet conveyor handling systems company operating from an 80,000 square foot facility in Orangeville, Ontario, Canada. Based in lean manufacturing principles, including best-practice value stream mapping and continuous improvement, the Alfacon team designs, engineers, manufactures, and installs complete material handling solutions.
CEO John Murdoch is proud of the company’s hands-on approach when analyzing clients’ challenges and developing solutions based on experience and innovation. The combination of standard and custom engineered components enables Alfacon to create unique material handling solutions tailored to each client; this engineered-to-order (ETO) differentiator positions the company as one of the leading material handling manufacturers in North America. Alfacon provides services to its customer base in the courier, retail, manufacturing, and industrial sectors. The company is a proud member of MHI.
The core values of Alfacon Solutions ensure a customer-centric approach to every project and drives the entire team to consistently deliver exceptional results. From experience, passion, and integrity to commitment, innovation, and on-time delivery dependability, Alfacon Solutions anticipates double digit growth year over year for the next decade. Follow on Twitter @AlfaconSolution.
Company Name: Alfacon Solutions
Contact Person: John Murdoch
Address:595 Riddell Road