Warehouse Automation Thrives Amidst Construction Slowdown in Logistics
The logistics warehouse market in the United States has experienced a slowdown in recent years due to factors such as higher capital costs and decreased demand. This has also affected investments in warehouse automation, resulting in contracting order levels and longer sales cycles. However, experts believe that the downturn in warehouse construction will be short-lived due to ongoing e-commerce demand and the need for buffer stock to prevent supply chain disruptions. Automation investments are expected to continue regardless of the macro environment, as companies strive to improve efficiencies and overcome labor shortages.
According to a global survey, supply chain leaders are investing more in technology and innovation to enhance resiliency, transparency, sustainability, and address workforce shortages. However, incorporating automation technology into existing facilities is challenging due to height and structural limitations in legacy warehouses. Infrastructure modifications are necessary to accommodate automation.
Despite challenges, warehouse operators are eager to use automation to reduce costs and improve order processing. Collaborative robots are a popular choice as they are lightweight and require minimal facility modifications. Furthermore, despite prevailing economic challenges, the long-term prospects for automation remain promising. Companies are expected to persist in their investments towards automation technologies, driven by the goal of achieving improved efficiency and productivity even in the face of labor shortages and evolving market demands.
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