As we dive into the evolving landscape of the materials handling and logistics industry, I’m thrilled to sit down with Rohit Laila, a seasoned expert with decades of experience in supply chain and delivery. Rohit’s career has spanned pivotal shifts in the sector, and his passion for technology and innovation offers a unique perspective on where the industry stands today. In this conversation, we’ll explore the cooling trends in salary growth, the impact of economic pressures on compensation, and how experience and responsibility shape earning potential. Let’s uncover the forces driving these changes and what they mean for professionals in the field.
How do you interpret the slight rise in average salary from $101,904 in 2024 to $104,301 in 2025 within the materials handling industry?
Honestly, while it’s a positive bump, it’s a pretty modest one when you consider inflation and the rising cost of living. It shows the industry is still growing, but the pace has definitely slowed down. From my experience, this kind of incremental increase often reflects caution from companies—they’re not pulling back entirely, but they’re not pushing for aggressive raises either. It feels like a wait-and-see approach, especially with the economic uncertainty we’re all navigating.
What’s your take on the median salary climbing to $99,000, and does this seem like a reasonable adjustment for most workers in the field?
A $3,000 increase in the median salary is a step in the right direction, but I’d hesitate to call it fully adequate for everyone. For mid-level professionals, it might keep pace with basic needs, but in high-cost regions or for workers with specialized skills, it may not feel like enough. I’ve seen firsthand how varied the cost of living can be across regions, and this kind of blanket increase doesn’t always account for those differences. It’s fair for some, but others might feel it falls short.
Why do you think salary growth is cooling off, with companies seemingly holding back on larger raises?
I believe it’s largely tied to the broader economic climate. Companies are feeling the squeeze from fluctuating demand, supply chain disruptions, and the need to control operational costs. Over the past few years, we saw bigger raises to retain talent during labor shortages, but now that the market has stabilized somewhat, employers are tightening the purse strings. From what I’ve observed, there’s also a focus on reallocating budgets toward technology and automation, which might be taking priority over payroll expansion.
With only 69% of professionals receiving a raise this past year compared to higher percentages in previous years, does this trend concern you?
It does raise an eyebrow, though I’m not entirely surprised. We’re coming off a period of intense competition for talent, and now that things have cooled, fewer raises signal a shift in priorities. It’s concerning because it could impact retention over time—people expect growth, especially in a demanding field like ours. I’ve seen teams get frustrated when they feel their hard work isn’t reflected in their pay, so this trend might brew some discontent if it continues.
How are smaller raises, averaging just 4.0% with a median of 3%, affecting morale among workers you’ve interacted with?
From what I’ve noticed, it’s a mixed bag. Some folks are just grateful to have a steady job and a slight bump, especially with layoffs happening in other industries. But for others, particularly those who’ve been grinding for years, these smaller raises feel like a letdown. I’ve heard grumblings about how the increases don’t match the workload or the rising costs they’re facing personally. It’s not a crisis yet, but it’s definitely dampening enthusiasm for some.
Bonuses have dropped significantly from an average of $26,048 last year to $22,780 in 2025. Have you seen changes in how bonuses are structured or perceived in the industry?
Absolutely, there’s a noticeable shift. Bonuses are often tied to company performance, and with tighter budgets, many organizations are scaling back or setting stricter targets to qualify for them. In conversations with peers, I’ve heard that some companies are moving away from large cash bonuses and focusing on other perks, like extra time off or small recognition programs. The perception, though, is that bonuses aren’t the reliable motivator they once were, which can sting for those who count on that extra income.
Given that only 17% of professionals reported an improved bonus plan, do you think companies are intentionally cutting back on incentives for specific reasons?
I do think it’s intentional, largely driven by cost management. Companies are under pressure to maintain profitability, especially with economic headwinds like inflation and supply chain costs. Incentives like bonuses are often the first to get trimmed because they’re seen as discretionary. From what I’ve seen, there’s also a growing emphasis on long-term investments—like tech upgrades—over short-term rewards for employees. It’s a pragmatic move, but it risks alienating talent if not balanced with other forms of appreciation.
How have you observed economic pressures influencing cost management within organizations in this sector?
It’s pretty evident across the board. In my circles, I’ve seen companies scrutinize every expense, from labor to logistics. There’s a big push to optimize operations—think leaner staffing models or delaying non-essential projects. Some warehouses I’m familiar with are stretching existing resources rather than expanding, which ties directly into why salary growth is stalling. It’s all about doing more with less right now, and unfortunately, compensation often takes a backseat to those immediate financial priorities.
Beyond salaries, are these cost-control measures impacting other areas like hiring or equipment investments in your experience?
Definitely. Hiring has slowed in many places I’ve worked with—there’s a reluctance to bring on new full-time staff unless it’s absolutely critical. Instead, there’s more reliance on temporary or contract workers to handle peak seasons. As for equipment, upgrades are happening, but they’re highly selective. Companies are investing in automation where it promises quick returns, but older machinery often gets patched up rather than replaced. It’s a balancing act, and sometimes it feels like short-term savings might cost us efficiency down the line.
Considering supervisors earn around $111,376 compared to $87,412 for non-supervisors, how do you view this pay gap in terms of role responsibilities?
I think the gap makes sense when you break down the roles. Supervisors carry a heavier load—managing teams, ensuring safety, hitting tight deadlines, and often dealing with the fallout when things go wrong. I’ve been in both positions, and the stress and accountability jump significantly when you’re in charge. That said, the gap can feel stark to non-supervisors who are often doing the hands-on work that keeps operations running. It’s justified, but companies need to ensure lower-level roles still feel valued.
With professionals who have budget authority earning about $21,000 more than those without, how crucial is gaining that kind of responsibility for career advancement in this field?
It’s incredibly important. Having budget authority often means you’re trusted with strategic decisions, which positions you as a key player in the organization. In my career, I’ve seen that those who control budgets get more visibility with upper management and have a direct hand in shaping projects or priorities. It’s not just about the pay bump—it’s a stepping stone to higher roles. For anyone looking to climb the ladder in materials handling, getting that responsibility is a game-changer.
What’s your forecast for salary trends and compensation growth in the materials handling industry over the next few years?
I’m cautiously optimistic. I think we’ll see stability in salaries for 2026, but I don’t expect a return to the rapid growth we saw a few years back unless there’s a significant labor shortage or economic rebound. Companies will likely keep focusing on efficiency and tech investments, which could limit big raises or bonuses. That said, if demand for skilled workers picks up—especially with e-commerce continuing to grow—we might see some upward pressure on pay. My hope is that employers start finding creative ways to reward talent, even if it’s not always through traditional salary hikes, to keep morale and retention strong.
