The cold storage market in North America is at an inflection point driven by an increasing focus on supply chain efficiency, quality and safety against a landscape of increased demand and changing consumption patterns. With the average age of cold storage facilities at 40+[1] years, increased capacity demand and high capital expense for new construction are driving industry leaders to look for ways to get more life out of existing assets. Expected to grow at a CAGR of 11.8% between 2026 and 2033[2] cold storage operators, who play a critical role in storing and preserving perishable or temperature-sensitive goods, including food products, medicines, and chemicals are turning to robotic automation to help reduce labor challenges, modernize aging facilities for operational efficiency, reduce energy cost and spoilage, comply with track and trace regulations, and drive competitive advantage.
Cold Storage Turnover Rate is 2-3X Compared with Ambient Facilities
Average Workplace Injury for Cold Chain Facilities Costs $40,000+
Worker Turnover Costs Employers
16-50% of Annual Salary
High Labor and Operating Costs
In addition to the increased cost to build, high utilities cost of operating a cold storage warehouse and challenges of maintaining consistently low temperatures, especially when there’s a lot of movement in and out of the warehouse, the next highest cost is labor.
The cost of finding and retaining employees to work in cold-adapted environments is particularly challenging. Operating in low temperatures for prolonged periods may have negative impacts on both people and equipment. Employees require specialized training, equipment, and safety measures, like protective clothing. Working in cold environments may cause humans to experience complications such as loss in concentration, decrease in dexterity, and frostbite. Slips and falls are more common in cold storage warehouses due
to condensation from the accumulation of frozen or cold fluids. Turnover in cold storage facilities is 2-3X that of ambient warehouses. With recruiting expenses averaging $1,500–$3,000 per warehouse position, new hire training costs up to 50% of annual salary, and as much as 40% productivity decrease while replacements ramp up, the cost of that turnover is staggering.
Cold storage conditions may also cause premature wear and failure of equipment. These warehouses require specialized equipment designed to withstand cold temperatures.
Additionally, humans must take additional breaks when working in the cold, whereas robots can operate 24/7 to maximize productivity and save costs. Automated solutions, such as robotic palletizing systems that are designed to operate in cold environments, help fill in the labor gap, optimize existing resources, and reduce costs associated with training and high turnover.
Cold Storage Challenges and Considerations
Operating a cold storage warehouse comes with unique challenges. Several factors impact the productivity of cold storage facilities, but automation specifically designed for below zero temperatures can help overcome them.
Safety, Security and Compliance Requirements
Autonomous mobile robots (AMRs) and automated storage and retrieval systems (AS/RS) that are adapted for cold temperature environments are gaining popularity due to their durability and reliability. These pallet moving robots and systems are made with unique batteries and materials and can operate at maximum productivity even in extreme temperatures. Automated solutions also handle tasks formerly done by humans and limit their exposure to the cold. Robots autonomously transport and place goods in storage to reduce labor costs, enables faster order fulfillment, and improves overall throughput. Prime Robotics offers AMRs and AS/RS shuttle systems that are highly customizable for any cold storage climate and operate in environments as low as –20 °F.
Security measures, fire suppression systems, and backup power sources are essential to protect products and maintain compliant operations. Cold storage facilities require a robust inventory management system. Traditionally, warehouse management software, must be compatible with execution and controls software to enable accurate tracking, efficient order fulfillment, and real-time inventory monitoring for compliance with FDA, CFR, FSMA and USDA requirements.
Optimizing Space for Capacity and Airflow
With construction cost per square foot averaging $150-$300 per square foot[1], and energy consumption accounting for 60-70% of facility expense[2], maximizing the use of available climate-controlled storage space is a key challenge. Traditional pallet racking requires wider operating aisles for forklifts and takes up too much or too little space to allow proper airflow and temperature distribution, limiting total storage capacity.
High-density storage systems, which store goods vertically in racks, are a more efficient option for temperature-controlled warehouses. These systems reduce the width of operating aisles and make better use of space. Within an AS/RS, four-way pallet shuttles effortlessly move and store heavy pallets with a wide range of SKUs vertically. This allows cold storage warehouses to increase capacity, storing more goods within the same footprint—an important benefit to offset the high costs of running these facilities.
Safety and Quality in High Moisture Environments
Cold chain facilities are typically designed for storage and handling requirements of the variety of products that flow through them. Failing to meet these requirements may compromise product safety and quality.
The same facility may handle everything from fresh produce and ice cream to pharmaceutical products. These items require different temperature and humidity levels. To consistently maintain these specific conditions and prevent cross-contamination between products, modular insulated wall systems or compartmentalized refrigerated containers are often used to create this separation. When employees must traverse these different temperature zones this increases utility cost and temperature variation and the resulting humidity can create fall hazards like standing water and ice. Automated solutions, like Prime’s cold-adapted pallet-moving robots, designed to withstand both frozen and refrigerated cold storage environments, allow the seamless movement of goods through different climates and sections of the warehouse – increasing energy efficiency and worker safety.
Operational disruptions:
Delays or disruptions in cold storage operations can be detrimental. Any disruption that impacts cooling systems and causes temperature fluctuations runs the risk of product spoilage and losses. This includes power outages, equipment breakdowns, or even delays in loading or unloading truckloads.
Automated picking and pallet-moving robots designed to operate in the cold are built with protective measures and materials, including regularly scheduled maintenance checks to prevent malfunctions. These systems also incorporate advanced navigation capabilities and obstacle avoidance features to ensure that goods are promptly moved to storage without risk of delays, spoilage, or damage.
Automated Solutions are the Future of Cold Storage Warehousing
Cold storage warehousing is a complex and integral part of the supply chain. Global trade of temperature-sensitive goods is on the rise. The efficient and safe handling of these perishable goods—from frozen foods to pharmaceuticals and chemicals—is critical to meet increasing demands.
Robotic automation helps cold storage facilities improve efficiency and overcome operational challenges. However, every cold storage environment is different. Working with an automation partner that understands your specific processes and requirements—and builds solutions tailored to those needs—ensures a successful deployment.
As global demand for cold storage continues to grow, cold storage robots will help warehouses maintain the highest product quality and achieve maximum productivity.
Contact us today to schedule your workflow assessment and learn how Prime Robotics’ solutions optimize your cold storage operations.
[3] Global Cold Chain Alliance
[4] WorkDay Global Workforce Report/Hanover Research 2025
