Warehousing and Logistics Industry Poised for Continued Growth Amid Workforce Transformation

The warehousing and logistics sector in Northeast Pennsylvania has witnessed remarkable expansion over the past decade, driven by the rapid rise of e-commerce and the establishment of large-scale distribution centers. With new logistics parks in development across the Midvalley and Upvalley regions, this upward trajectory is expected to continue. However, industry experts predict that automation will significantly reshape the nature of employment in the sector.

Strategic Growth in Logistics Infrastructure

"Lackawanna County is experiencing tremendous growth in warehousing and distribution, arguably more than almost anywhere else in the country," said John Augustine, President and CEO of Penn’s Northeast. "The region remains a largely untapped market with strong potential."

Major e-commerce players such as Amazon and Chewy have already set up operations in the Midvalley, capitalizing on the region’s strategic access to major interstates and its readily available workforce. Developers are now eyeing previously unused mine-scarred land along the Casey Highway corridor for new logistics hubs. While the expansion is expected to bring substantial investments and job opportunities to smaller municipalities like Mayfield, Archbald, and Carbondale Township, the industry’s increasing reliance on automation may reduce the demand for lower-skilled labor in favor of more specialized, higher-paying roles.

Why Invest in Lackawanna County?

Developer Mark Powell, owner of Reading-based Century Development Associates, plans to break ground this summer on nearly 1.4 million square feet of warehouse space in Lackawanna County. The $110-$120 million project, known as Century Logistics Center, will reclaim 87 acres of land using approximately $15 million in grant funding. The site will feature two warehouses: a 646,380-square-foot facility in Archbald and a 745,200-square-foot facility in Mayfield.

Powell, initially skeptical about investing in the Scranton area, was convinced after recognizing its logistical advantages. "This is the only place east of the Mississippi where six major interstates converge. The region offers an educated and affordable workforce compared to areas like Lehigh Valley, Carlisle, Harrisburg, and Philadelphia."

Warehouses in Lackawanna County are positioned to serve markets stretching from Southern Canada and New York to Atlanta and even Chicago, reinforcing the area’s appeal as a distribution hub. Powell estimates that his development could generate 500-700 jobs, with wages ranging from $20-$24 per hour for basic roles and significantly higher salaries for technology-driven positions such as AI specialists and automation technicians.

The Changing Workforce: Automation’s Growing Influence

As consumer demand for rapid deliveries continues to surge, automation is expected to play an increasingly dominant role in warehouse operations. "The warehousing and distribution sector is one of the fastest-growing industries for automation," Augustine noted. Instead of manual labor handling tasks such as product picking, packing, and labeling, machines will take over these functions, necessitating a shift toward more skilled labor for system maintenance and programming.

This shift presents an opportunity for local educational institutions to develop training programs that align with industry demands. "Colleges and universities have a chance to step up and equip the workforce with the necessary skills for tomorrow’s jobs," Augustine emphasized. Roles in logistics management, computer programming, and robotics maintenance are likely to offer competitive salaries, making upskilling a priority for both employers and employees.

While automation may lead to a reduction in traditional warehouse roles, Augustine believes that overall job availability in the region will remain stable. "A warehouse that once employed 500 workers may now need only 250, but those displaced workers will find opportunities at new companies expanding in the region."

Local Economic Benefits and Future Prospects

The expansion of warehousing infrastructure in Mayfield, Carbondale Township, and Archbald is expected to bring long-term economic benefits, including job creation and increased tax revenue. "These developments will inject money into local businesses and improve municipal finances," said Mayfield Mayor Al Chelik. While property tax incentives will initially offset some tax revenue, the long-term financial contributions of these logistics hubs will support infrastructure improvements and community development.

Chelik remains optimistic about the industry’s role in Mayfield’s future. "In 10 years, Mayfield will be transformed. The economic impact of these warehouses will extend beyond direct job creation, strengthening the community as a whole."

Powell echoed this sentiment, highlighting the significance of state-funded land reclamation efforts in reshaping the region. "With strategic investments, the landscape of Lackawanna County will be vastly different in the next decade."

Worldcraft Logistics' Expert Insight

From a global logistics perspective, the expansion of warehousing infrastructure in Northeast Pennsylvania aligns with broader industry trends emphasizing automation and strategic regional distribution. Companies investing in technology-driven logistics solutions will gain a competitive advantage, particularly in optimizing supply chain efficiency and meeting evolving consumer expectations.

However, the shift toward automation underscores the need for workforce development initiatives. As logistics operations become increasingly reliant on technology, upskilling programs and vocational training will be crucial in ensuring a sustainable and adaptive labor force. Collaboration between private enterprises, educational institutions, and local governments will be essential in navigating this transition.

This article has been edited to align with the readership of Worldcraft Logistics.