Logistics, small and medium enterprises, and an unappealing outlook: Is there a solution?
5 Feb 20256 min read
Summary
- Singapore’s logistics sector faces mounting challenges from a shrinking labor pool and an aging population, making it increasingly difficult for small and medium enterprises (SMEs) to attract and retain talent. While multinational corporations continue to thrive due to global reputations and resources, SMEs struggle to compete, highlighting the urgent need for technological adoption to maintain competitiveness.
- Industry 4.0 technologies, particularly automation, present a practical solution to these challenges by streamlining operations and reducing the reliance on manual labor. With Singapore ranking second globally in robot adoption, automation is helping logistics SMEs enhance productivity, improve job appeal, and align with national goals to build a future-ready, technology-driven workforce.
- However, barriers remain as SMEs often lack the capital, technical expertise, and scale to adopt advanced automation at pace with larger firms. Solutions such as OnRobot’s D:PLOY platform are helping bridge this gap by offering accessible, cost-effective automation options, enabling SMEs to modernize operations, boost efficiency, and strengthen their position within Singapore’s evolving logistics ecosystem.
It is a numbers game when it comes to skilled labor in Singapore. After falling to a historic low of 0.97 earlier in the year, Singapore’s dwindling fertility rate does not bode well for the future of the nation’s workforce. In fact, one in four citizens will be aged 65 and older come 2030, putting strain on the workforce and sectors that typically rely on physical labor.
The logistics sector is one example, and its physical nature means it is viewed less favorably compared to other trending sectors. This comes in spite of strong demand for industrial spaces due to supply chain adjustments amidst international corporations making Singapore their supply-chain hub, as logistics continues to paint an unappealing image for young Singaporeans entering the workforce.
While these international corporations still find enough talent to operate comfortably due to their global reputation, Small and Medium Enterprises (SMEs) within the sector find it particularly difficult to compete for incoming talent due to fewer resources and less-attractive compensation packages.
Logistical SMEs in Singapore must then turn to other solutions to both attract talent as well as meet operational demands in light of these challenges — which is where Industry 4.0 comes in.
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