Can Kansas City’s Workforce Keep Up with Growing Logistics Demand?

January 31, 2025 –

By Ethan Sympson

With over 300 million square feet of industrial space—and growing—Kansas City has cemented itself as a logistics powerhouse. But with this rapid growth comes an important question: Can the local workforce keep pace with the demand for skilled labor in warehouses and distribution centers? This expansion fuels opportunities for businesses and the local economy, but it also presents challenges in securing a steady labor pool to keep operations running smoothly. In this article, we’ll examine the state of Kansas City’s logistics workforce and explore strategies to help businesses secure the right talent to meet their staffing needs.

Kansas City’s Current Workforce – Can It Meet The Growing Demand For Warehousing & Logistics Roles?

Currently, thousands of open positions exist in Kansas City spanning warehouse operations, fulfillment, material handling, and transportation. From forklift operators and order pickers to supervisors and logistics coordinators, these roles are essential to keeping supply chains running smoothly. Yet, competition for qualified workers is fierce, with many industries vying for the same talent pool. At the same time, Kansas City has a strong workforce eager to find stable, well-paying opportunities in logistics. Many job seekers are looking for positions that offer career growth, competitive wages, and benefits.

Let’s take a look at the numbers:

Kansas City’s warehouse labor force comprises approximately 41,791 workers, with a projected growth of 7.8% by 2034.
In Kansas, approximately 117,000 residents are employed in transportation, warehousing, and wholesale trade sectors.
The Kansas City industrial market has experienced significant growth, with a 7.6% year-over-year employment increase in the manufacturing sector during the third quarter of 2024.

Challenges for Warehouses in Recruiting and Retaining Skilled Workers in Kansas City

While there is a strong talent pool of individuals ready to work, warehouse operators in the Kansas City region still face several key challenges in recruiting and retaining skilled workers. This is driven by a combination of industry dynamics, workforce trends, and regional factors. Let’s take a look at some of the key challenges businesses are facing today:

Competition for Workers/Industry Overlap: The concentration of warehouses in specific areas of Kansas City creates heavy competition for a limited talent pool. Many warehouse and logistics businesses are located near transportation hubs and industrial zones, leading to an oversaturation of employers vying for the same workers. As a result, job seekers have multiple employment options, making it difficult for individual companies to secure long-term hires. This overlap not only complicates recruitment efforts but also drives up labor costs as businesses must offer increasingly attractive incentives to stand out.

Wage Pressures: Many workers now expect higher wages, signing bonuses, and robust benefits packages as standard offerings. For warehouse operators, this creates a financial challenge—maintaining competitive wages without eroding profitability. Additionally, companies that do not continuously evaluate and adjust their pay structures risk losing workers to competitors offering even slightly better compensation.

Retention Issues: High turnover rates continue to be a major obstacle for warehouse operations. Many employees leave their positions within months due to job dissatisfaction, a lack of career advancement opportunities, or better offers from competing employers. The repetitive and physically demanding nature of warehouse work has caused the average warehouse worker turnover rate to be at a staggering 49%. Companies that fail to address retention challenges often find themselves in a constant hiring loop, struggling to maintain a stable and experienced workforce.

Work Environment Challenges: Warehouse jobs are often associated with physically strenuous labor, long hours, and demanding conditions, all of which can deter potential candidates. Extreme temperatures, the need for heavy lifting, and monotonous tasks contribute to worker fatigue and increased turnover. In addition to physical concerns, workplace culture and management style play a significant role in worker satisfaction, making it essential for companies to foster an environment that prioritizes employee well-being and engagement.

Perception of the Industry: Many job seekers view the warehouse and logistics sector as a low-paying, low-skill industry with limited room for growth. This perception discourages skilled workers from considering warehouse careers and limits the talent pipeline for long-term employment. In reality, warehousing offers numerous career pathways, from supervisory roles to logistics coordination and operations management. Businesses must actively promote career development opportunities, competitive wages, and the role of technology in modern warehousing to attract a more skilled and motivated workforce.

Regulatory and Safety Concerns: Warehouses must adhere to strict safety regulations, which can be challenging to manage—especially with a constant influx of new hires. Training employees on proper safety procedures, ensuring compliance with OSHA regulations, and maintaining a safe work environment require ongoing investment and diligence. Failing to meet these standards not only puts workers at risk but also exposes businesses to costly fines and potential legal liabilities. Additionally, as automation and robotics become more integrated into warehouse operations, new safety concerns emerge, requiring continuous updates to training programs and workplace protocols.

How To Address Warehouse Staffing Challenges

To build and maintain a strong warehouse workforce in Kansas City, businesses must take a proactive approach. Addressing staffing challenges requires strategic planning, investment in employee well-being, and adapting to the evolving workforce landscape. By implementing the following strategies, warehouse operators can attract, train, and retain skilled workers, ensuring operational efficiency and long-term success.

Work With a Staffing Partner

A strong staffing partner can provide access to a larger talent pool, pre-screened candidates, and workforce solutions tailored to a warehouse’s needs. Partnering with a firm specializing in logistics and light industrial roles can help streamline hiring and reduce turnover.

Access to Qualified Candidates: Staffing firms have an extensive database of pre-screened job seekers ready to fill open positions quickly.
Reduced Hiring Time: The recruitment process can be time-consuming; a staffing partner helps businesses find the right candidates faster.
Flexibility in Workforce Management: Temporary, temp-to-hire, and direct-hire options allow businesses to scale their workforce up or down based on seasonal demand.
Administrative Support: Many staffing agencies handle payroll, compliance, and benefits administration, easing HR burdens for warehouse operators.

Enhanced Compensation Packages

Offering competitive wages and benefits is essential in a tight labor market where job seekers have multiple options. Providing attractive compensation helps retain skilled employees and keeps businesses competitive.

Competitive Base Pay: Regularly review and adjust wages to align with or exceed industry averages in Kansas City.
Performance-Based Incentives: Implement programs that provide additional pay or bonuses for productivity, attendance, and safety records.
Comprehensive Benefits: Go beyond basic healthcare by offering dental, vision, disability insurance, and mental health support.
Retirement & Financial Planning: A 401(k) match or financial wellness programs can make positions more appealing.
Pay Frequency Flexibility: Options like weekly pay or early wage access can improve employee satisfaction.

Training and Upskilling

Providing education and training programs ensures employees have the skills necessary for warehouse operations, reduces the skills gap, and improves job satisfaction.

On-the-Job Training: Implement structured onboarding and mentorship programs to help new hires integrate quickly.
Forklift & Equipment Certifications: Offer in-house certification programs to help employees gain technical skills and qualify for promotions to other warehouse roles.
Cross-Training Initiatives: Encourage employees to learn different roles within the warehouse to increase flexibility and career mobility.
Tuition Reimbursement Programs: Assist employees in furthering their education to develop skills that benefit both the individual and the company.
Leadership Development: Provide management training for high-potential employees to build an internal leadership pipeline.

Workplace Improvements

Investing in the work environment not only improves efficiency but also enhances job satisfaction and reduces physical strain on workers.

Ergonomic Equipment: Provide height-adjustable workstations, anti-fatigue mats, and lift-assist devices to minimize injury risks.
Climate Control Measures: Ensure warehouse temperatures are managed properly, particularly during extreme summer and winter months.
Employee Wellness Programs: Offer fitness programs, mental health resources, and access to on-site or virtual healthcare consultations.
Improved Safety Measures: Regularly update safety protocols, conduct training sessions, and incentivize adherence to best practices.

Flexible Scheduling

Providing scheduling options makes warehouse roles more attractive to a wider range of job seekers, including working parents, students, and those seeking supplementary income.

Part-Time & Split Shifts: Allow employees to work shifts that fit their personal schedules.
Weekend & Alternative Schedules: Offer weekend-only, evening, or 4-day workweeks to accommodate different lifestyles.
Predictable Scheduling: Avoid last-minute shift changes to help employees plan their work-life balance more effectively.

Career Growth Opportunities

One of the best ways to retain employees is to provide clear career pathways and opportunities for advancement. Employees are more likely to stay with a company that invests in their future.

Defined Promotion Paths: Clearly outline how employees can move from entry-level roles to supervisory and management positions.
Internal Hiring Prioritization: Give current employees first access to higher-paying or leadership roles before seeking external candidates.
Apprenticeship & Internship Programs: Provide structured programs that allow entry-level workers to gain valuable skills and experience.
Personalized Development Plans: Conduct career coaching and one-on-one meetings to set growth goals for each employee.
Recognition & Employee Engagement: Implement awards, incentives, and company events to celebrate achievements and promote a positive work culture.

How Is Automation Affecting Labor Needs in Kansas City Warehouses?

Automation will change labor needs in Kansas City’s warehouses, as companies adopt advanced technologies to meet growing demands for efficiency and scalability. A recent analysis indicates that approximately 10.2% of workers in the Kansas City area—about 110,000 individuals—are at risk of job displacement due to artificial intelligence (AI), ranking the city seventh-highest among large metropolitan areas for potential AI-related job disruptions.

While automation enhances productivity and scalability, its integration into warehouses is gradual, requiring a balanced approach that combines human labor with technology to meet the demands of Kansas City’s growing industrial market.

Reduced Manual Labor: Automated systems handle tasks such as picking, packing, and sorting, leading to a decreased need for manual labor in these areas.

Shift in Skill Requirements: There is a growing demand for workers skilled in operating and maintaining automated systems, including robotics and advanced software.

What Role Do Staffing Services Play In An Increasingly Automated Workforce?

It can seem counterintuitive that the demand for staffing services would rise. However, the relationship between automation and staffing services is more nuanced. Here are several ways an increase in automation leads to a greater demand for staffing services:

Skilled Labor Shortages and Reskilling Needs

- Increased Need for Specialized Roles: Automation technologies such as robotics, artificial intelligence (AI), and warehouse management systems (WMS) require highly specialized personnel to operate, maintain, and troubleshoot these systems. This creates demand for workers with expertise in robotics, software programming, AI, and system integration. These roles cannot be filled by unskilled labor, which is why staffing agencies specializing in placing workers with technical skills are in high demand.
- Training and Reskilling: As businesses adopt automation, there is a growing need for training and reskilling initiatives. Companies may rely on staffing services to provide training programs for existing employees, helping them transition from manual tasks to new roles that involve working with automated systems. This shift increases the demand for staffing services that can supply skilled labor capable of adapting to automated workflows.

Labor Gaps Due to Transitioning Workforces

- Temporary Staffing Solutions: During the transition to automated operations, companies may experience short-term disruptions in labor needs. For example, as manual jobs are phased out and new roles requiring specific skills are introduced, there could be a gap in workers available to fill these positions. Staffing agencies can help fill this gap by supplying temporary labor during the transition phase, ensuring operations run smoothly while the company trains or hires permanent employees.
- Supplementing Automation with Human Labor: Although automation handles many tasks, there are still functions in warehouses and fulfillment centers that require human oversight, especially in quality control, decision-making, and tasks that automation cannot fully replicate (e.g., complex problem-solving or customer interactions). Staffing agencies can provide temporary or contract workers to fill these essential roles.

Increased Demand for Labor in Non-Automated Areas

- Support Roles for Automated Systems: As more warehouses and distribution centers implement automation, the demand for support staff to handle tasks that automation cannot (or cannot yet) manage grows. This includes workers who are responsible for overseeing, maintaining, and repairing automated systems. Automation technicians, IT support, and system administrators will be needed to ensure smooth operations. Staffing agencies can meet this demand by sourcing workers with specific technical qualifications.
- Human Interaction in Customer-Facing Roles: Even as automation increases, the need for human customer service roles often remains strong. Automated systems might pick and pack products, but there is still a need for human workers to address customer inquiries, handle complaints, and provide service for complex situations. Staffing services can fulfill these ongoing demands for human interaction.

Flexibility in Staffing for Fluctuating Demand

- Seasonal Peaks and Operational Shifts: Many businesses that adopt automation, particularly in warehousing and logistics, still experience seasonal fluctuations in demand, especially during peak seasons like holidays. While automation systems can run continuously, the sheer volume of orders during busy times may require an increase in workforce to handle customer service, packaging oversight, or final-mile delivery. Staffing agencies provide the flexibility businesses need to scale their workforce up or down quickly based on demand.
- Adaptability for Diverse Automation Solutions: As automation becomes more prevalent, businesses may implement different types of systems, from automated storage and retrieval systems (ASRS) to robotic picking systems. These systems may need specific types of human support, which may not be consistent across all businesses. Staffing services offer the adaptability to provide workers with the skill sets that align with the specific automation technologies in use.

Implementation and Integration of Automation Systems

- Project-Based Staffing: The process of integrating automation into a business’ operations often requires specialized labor. Whether it’s installing new systems, conducting tests, or programming robots, the integration phase is usually project-based and time-sensitive. Staffing services specializing in project-based labor can supply the necessary workers to implement these systems, ensuring that the automation rollout happens smoothly without overburdening existing staff.
- Management and Supervision: Automation is a significant investment, and companies often require project managers, site supervisors, and consultants to manage the transition process. Staffing services can provide qualified professionals to oversee the successful implementation of automation and ensure that the new systems are fully integrated into existing operations.

Increased Focus on Employee Well-Being and Safety

- Safety Monitoring: With the implementation of automation, there may be an increased focus on ensuring the safety of employees working alongside automated machinery, especially in environments like warehouses or factories. Staffing agencies can play a critical role in providing safety officers or compliance specialists who ensure that all safety regulations are met and employees are properly trained in operating near automated systems.
- Employee Engagement: As automation may shift job responsibilities and alter workforce dynamics, staffing agencies may be called upon to offer employee engagement services, such as creating programs to help employees transition into new roles or maintaining morale during periods of operational change.

Get Staffing Support For Your Warehouse Labor Needs In Kansas City

If you’re looking for a reliable staffing partner with proven expertise in the logistics sector, we’re here to help. With firsthand experience staffing our sister 3PL company, we understand what it takes to place the right individuals in the right roles for long-term success. Over the past two years, we’ve successfully placed more than a thousand workers in warehouses across Kansas City. Let us do the same for you—reach out today to see how we can solve your staffing challenges.

Frequently Asked Questions

Where Should I Look for Warehouse Staff?

Job boards, staffing agencies, and local workforce development programs are great places to find warehouse staff. Partnering with a staffing agency can help you access pre-screened candidates quickly and efficiently.

How Can I Reduce Turnover in My Warehouse?

Offering clear career advancement opportunities and a positive work environment can improve employee retention. Providing proper training, recognition programs, and employee engagement initiatives also helps reduce turnover.

What Are the Most In-Demand Warehouse Positions?

Commonly sought-after roles include forklift operators, order pickers, warehouse associates, inventory specialists, and logistics coordinators. As warehouses become more automated, roles involving equipment operation and technology integration are also in high demand.

Should I Hire Temporary or Full-Time Warehouse Workers?

It depends on your business needs. Temporary workers are ideal for handling seasonal surges, while full-time employees provide stability and long-term growth. A mix of both can help optimize workforce efficiency.

How Can I Make My Warehouse More Attractive to Job Seekers?

Offering competitive pay, benefits, and a safe, well-maintained work environment can help attract workers. Providing training opportunities and career growth pathways also makes your company more appealing.