
Labor costs are one of the biggest expenses for many businesses, especially in manufacturing, construction, warehousing, recycling, and other industries where materials have to be moved regularly.
Most business owners know this. What is easier to miss is how much employee time goes into small jobs that have to be done again and again.
An employee walks across the facility to empty a bin. Someone moves scrap to a larger container. A worker leaves a production area to clear waste. Sometimes, another employee has to help move something that is too heavy for one person.
Each job may take only a few minutes. But when it happens throughout the day, the time can add up.
This is where better material handling can help.
Reducing labor costs does not always mean reducing the number of employees. It can also mean giving workers equipment that helps them complete routine jobs with fewer steps and less physical effort.
The growing focus on better material handling can be seen in the wider Material Handling Equipment Market. According to Coherent Market Insights (CMI), the global market is estimated to be valued at US$258.00 billion in 2026 and is expected to reach US$398.35 billion by 2033, growing at a CAGR of 6.4% during the forecast period. Increasing automation in warehouses and manufacturing, along with the expansion of e-commerce and omnichannel retailing, is supporting this growth.
Automation is one of the major trends in the industry. Large warehouses and manufacturing facilities are using robotics, autonomous vehicles, and other automated systems to handle repetitive work. Smaller businesses may not need this level of automation, but they can still use simpler equipment to reduce some of the manual work involved in moving materials.
Connected equipment is another growing trend. IoT devices, sensors, and data-based systems can help businesses monitor equipment and find delays or problems in their material handling processes. These technologies are often used with larger automated systems, but the basic idea is simple: know where time is being lost and find ways to reduce it.
Sustainability is also getting more attention. Businesses are looking at recycling, waste management, energy use, and better use of materials. This is creating more interest in equipment that can help collect and move waste and other materials without unnecessary handling.
CMI analyzes the Material Handling Equipment Market by product and application. The product segments include cranes & lifting equipment, industrial trucks, continuous handling equipment, racking & storage equipment, and others. The application segments include automotive, food & beverages, chemical, semiconductor & electronics, e-commerce, aviation, pharmaceutical, and others.
The range of segments shows how widely material handling equipment is used. It is not only a concern for large warehouses. Manufacturing plants, construction sites, recycling facilities, and other businesses that move raw materials, finished products, scrap, or waste can also benefit from better handling methods.
Among the product categories, cranes and lifting equipment are expected to account for a 35.0% share of the global market in 2026. These systems are used in places where heavy loads need to be moved. Self-dumping hoppers serve a different purpose, but they follow a similar idea: use equipment to handle material instead of relying completely on manual work.
On the application side, the automotive segment is expected to lead the market with a 24.8% share in 2026. Automotive facilities handle large amounts of parts, raw materials, packaging as well as production waste. Keeping these materials moving is important for keeping production on track. Smaller manufacturing facilities face many of the same problems, even if the scale is different.
The Hidden Cost of Traditional Waste Handling
Waste removal may not seem like a major expense. It is not usually the work that directly brings in revenue.
It still takes employee time, though.
Workers may collect scrap, move debris into containers, transport full bins, transfer waste into larger dumpsters, and bring empty containers back. In some facilities, these jobs are repeated several times during a shift.
The cost is more than the time spent carrying or moving waste. When workers leave their normal jobs to deal with waste, other work may slow down. A second employee may have to help with a heavy container. Someone may also have to arrange a pickup or deal with a bin that has become too full.
Overtime can add to the cost as well.
If cleanup takes longer than expected, employees may stay late to finish it. A small task that takes a few minutes every day can therefore become a regular labor expense.
One useful question for businesses is: How many times is the same material moved before it leaves the facility?
If the answer is two or three times, there may be a way to cut out some of those steps.
Better Material Handling Supports Better Productivity
Productivity is not just about asking employees to work faster. It also depends on how the work is set up.
An employee who spends twenty minutes moving scrap is not spending that time on production, order preparation, quality checks, or other work.
The scrap still needs to be moved. The difference is how much work is involved in doing it.
Putting containers closer to where waste is produced can reduce walking. Larger containers can reduce the number of times they need to be emptied. Equipment that can move and unload containers can also reduce lifting and transferring.
These are not complicated changes. But when the same job is repeated every day, they can save time.
This is one reason the material handling equipment market includes so many different types of equipment. Some businesses need large automated warehouse systems. Others may only need forklifts, lifting equipment, storage systems, or better ways to deal with scrap and waste.
Small Process Improvements Can Create Real Savings
Businesses often look for large investments when they want to cut costs. Automation systems, software, and facility changes can all help, but they are not the only options.
Sometimes, the better place to start is with a job employees do every day.
Look at the current waste-handling process. Does someone move a small bin and then empty it into a larger one? Does the job require two employees? Do workers have to wait for a forklift before they can clear an area?
Every extra step takes time.
Many facilities can reduce these steps by using self-dumping hoppers that collect material near the work area, can be transported by forklift, and can be emptied without employees having to unload the contents manually.
The saving from one trip may not seem like much. But repeated several times a day, it can become noticeable.
Five minutes saved on one task becomes twenty-five minutes over five trips. Across a five-day workweek, that is more than two hours. If the same saving applies to several employees or work areas, the total can become much larger.
Lower Labor Costs Without Cutting Jobs
Labor cost reduction does not necessarily mean cutting jobs.
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Businesses can also reduce the amount of time employees spend on repetitive or physically demanding work. This gives them more time for production, quality checks, maintenance, order preparation, and other tasks.
It can also help when a business grows.
Suppose production increases by fifteen percent. If waste handling is already taking up a lot of time, the extra work may mean more overtime or another employee. A better process may allow the existing team to handle more material without increasing labor costs at the same rate.
This is one reason businesses look for ways to remove repetitive work from their daily processes.
The idea is not to make employees work harder. It is to avoid spending employee time on work that equipment can make easier.
Safety Improvements Can Reduce Indirect Labor Expenses
Labor costs also include expenses that are not directly part of an employee's wage.
Injuries, absences, lost working time, and lower productivity can affect a business as well.
Waste handling can involve bending, lifting, pushing, pulling, and twisting. These movements become harder when containers are heavy or filled with awkward materials.
Using equipment to move these loads can reduce the physical effort required from workers. They can focus on moving and positioning the container safely instead of repeatedly lifting or transferring heavy materials.
Keeping waste contained can also help keep walkways and work areas clearer.
Equipment does not remove every safety risk. Employees still need proper training, and equipment must be used within its load limits and according to safe operating procedures. Still, reducing unnecessary manual handling can be part of a safer work setup.
Cleaner Work Areas Keep Operations Moving
Overflowing bins and scattered scrap can also interfere with normal work.
They may block walkways, make equipment harder to reach, or force employees to stop what they are doing to clear an area.
A better waste collection process can help prevent this.
When containers are placed near the work area and employees have a clear place to put waste, there is less need to stop work and deal with overflowing bins or loose scrap.
It also makes the facility easier to move around.
Keeping work areas organized may seem like a small improvement, but it can help prevent interruptions that take employees away from their main tasks.
Measuring the Return on Investment
Before buying new equipment, businesses should look at what their current waste-handling process is costing.
Start by tracking how often waste is moved each day, how many employees are involved, and how long each trip takes. Include time spent lifting, transferring materials, waiting for equipment, cleaning spills, and returning containers.
Then calculate the labor cost.
For example, if waste handling requires three labor hours per day at an average loaded labor rate of thirty dollars per hour, the process costs ninety dollars per day. Over 250 working days, that equals twenty-two thousand five hundred dollars per year.
If a better system reduces the daily requirement by one hour, the business could save seven thousand five hundred dollars annually.
The actual savings will depend on the facility and its current process. Still, this calculation gives businesses a simple way to estimate whether new equipment could pay for itself.
Other benefits can also matter. Fewer interruptions, lower overtime, reduced physical effort, better use of floor space as well as the ability to handle more work can all add value.
A piece of equipment does not have to remove labor completely to be worthwhile. If it saves enough time or reduces enough unnecessary work to justify its cost, it can be a useful investment.
This is particularly relevant in the U.S., where manufacturing, warehousing, construction, e-commerce as well as logistics operations rely heavily on the movement of materials. Rising labor costs and the need to improve productivity are encouraging businesses to look for ways to reduce unnecessary manual work. Large warehouses may use robotics, autonomous vehicles, and connected systems, while smaller manufacturers and industrial facilities can improve their processes with forklifts, lifting equipment, storage systems, and practical waste-handling solutions.
The U.S. is also covered as a key market within North America in CMI's analysis. The region has a well-established manufacturing and logistics base, creating steady demand for equipment used to move as well as store materials. For many businesses, improving material handling does not mean automating the entire facility. A smaller change, such as making waste collection and removal easier, can also help.
Asia Pacific is expected to lead the global material handling equipment market in 2026, accounting for an estimated 41.7% share. This is mostly due to the regions’ strong manufacturing and logistics industries, growing warehouse automation, and rising demand for efficient material movement.
The wider market includes companies such as BEUMER GROUP, Daifuku Co., Ltd., Honeywell, KION GROUP AG, Mecalux, SSI SCHAEFER, Swisslog, Toyota Industries Corporation, and Vanderlande Industries B.V. These companies operate across areas including warehouse automation, industrial trucks, storage, conveyors, and logistics systems.
Sustainable Savings Start With Better Processes
Reducing labor costs does not always require a major investment.
Sometimes, the opportunity is in a routine job that employees perform several times a day.
Waste handling is one example. If employees are repeatedly walking, lifting, transferring, and emptying containers, there may be a better way to handle the same material.
Businesses can start by looking at the current process. How often is the material moved? How far do employees have to walk? How often do containers need to be emptied? Could some of the lifting or transferring be avoided?
Self-dumping hoppers have the tendency to help reduce some of these steps by collecting loose materials near the work area and allowing them to be moved and dumped with a forklift.
The aim is straightforward: reduce unnecessary handling and give employees more time for their main jobs.
As the material handling equipment market continues to grow, businesses are looking for both advanced systems and simple equipment that can improve everyday operations. For businesses that regularly handle scrap, waste, or other loose materials, a self-dumping hopper can be a practical way to reduce repetitive manual work and make better use of the workforce already in place.
Disclaimer: This post was provided by a guest contributor. Coherent Market Insights does not endorse any products or services mentioned unless explicitly stated.
