In today’s competitive business environment, warehouse and logistics companies face pressure like never before. With rising labor costs and increasing demand for faster and more efficient shipping, finding ways to streamline operations is more important than ever. That’s where automation comes in.
Global Automation Trend
According to the Warehouse Automation Global Market Report 2022, the global market for warehouse automation was valued at $15.21 billion in 2021. In 2022, the market jumped by 14.86% to $17.47 billion. By 2026, the market is projected to reach $31.03 billion.
Who is Leading the Automation Industry?
China has dominated the robotics industry since 2012 and continues to set new benchmarks. In 2018, China became the first country to operate a warehouse without humans. Instead of employing over 400 employees to handle picking and packing processes, the 43,000 sq. ft. facility now only requires a handful of mechanics to maintain the robotic systems. In Europe, government initiatives focused on workers’ health and safety have accelerated the adoption of automation. Recent studies indicate that the top factor driving workers’ optimism around automation is its potential to improve safety. Workers have reported that automation has significantly improved their overall health and wellness by reducing injuries and the need to take sick leave.
The Lag in North American Automation
Despite the clear advantages of robotic technology, many North American companies remain hesitant to embrace automation and modernize their outdated systems. However, the landscape is shifting. 90% of warehouse owners and managers acknowledge that the COVID-19 pandemic changed consumer shopping habits and increased demand for automated shipping. This heightened demand places pressure on logistics companies to accelerate their operations, making automation essential. In today’s fast-paced market, automation is no longer a luxury—it’s a necessity for staying competitive.
Automation Helps Solve Labor Challenges
The adoption of warehouse automation is driven not only by the need for speed but also by rising labor costs and a dwindling pool of warehouse workers. Year after year, the U.S. Bureau of Labor Statistics reports millions of job vacancies. Meanwhile, the demand for e-commerce continues to grow. Companies have no choice but to raise wages to retain their workforce and attract new employees—yet competition with e-commerce giants like Wayfair, Walmart, and Amazon makes it difficult to offer competitive pay. In 2022, worker compensation costs surged by 5.1% in just 12 months. Automation is helping companies navigate these labor challenges by reducing dependence on manual labor and enabling more efficient, cost-effective operations.
Benefits of Automation in Warehousing and Logistics
Automation addresses the labor crisis by taking on the heavy lifting in warehouse environments. Robotic systems handle physically demanding and repetitive tasks, such as moving inventory and picking and packing orders. This shift not only increases efficiency but also benefits employees by reducing the need to work overtime to meet increasing demands. Instead, workers can focus on higher value tasks that require human interaction, such as customer service. Automation also creates a safer work environment by minimizing workers’ exposure to potential hazards, such as moving heavy payloads in dynamic settings. Automation therefore helps improve job satisfaction and retention.
The successes of warehouse automation in China and European countries highlight the urgency for logistics companies to invest in this technology. Automation enables warehouses to accelerate operations and meet ever-growing consumer demands. Rather than adopting a wait-and-see approach, it’s important for warehouse owner operators to be proactive. Leading the charge in automation implementation helps companies stand apart from competitors, being at the forefront of this widespread transformation.
Prime Robotics is America’s Warehouse Automation Provider
Prime Robotics is a leading provider of warehouse automation solutions in the United States. Our team of experts design and implement custom solutions for each unique warehouse environment. Our goods-to-person robotic systems, including shelf-moving and pallet-moving robots, conveyor systems, and case picking arms, improve warehouse efficiency and productivity by up to 5X.
Contact us today to schedule your workflow assessment and learn how Prime can help you automate your warehouse operation.
