Despite growing labor costs, 71% of 3PL respondents intend to increase their workforce in 2023, while 27% intend to remain the same, and only 2% expect to reduce the size of their workforce. This indicates planned investment and a more positive outlook. Companies that experienced the highest order volume growth in 2022 are 5x more likely to expect labor growth than those with low to no growth. Considering low unemployment, rising labor costs, and the expectation that 3PLs will continue to grow their workforce in 2023, it’s no surprise that 53% of 3PLs see automating processes in the warehouse as one of their biggest opportunities for the year ahead. 3PLs will need to heighten focus on hiring and retention strategies to ensure they can expand their workforce and increase service demand or find new ways to automate and reduce manual processes through technology.