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Major Trends Driving Warehouse Automation

Logistics Tech Outlook | Friday, June 17, 2022

Technology advancements are opening the way for several warehouse automation trends that improve warehouse efficiency, accuracy, and safety.

Fremont, CA: In the past decade, the global market for warehouse automation has grown steadily, but recent international events have propelled the industry into hypergrowth. With so many fresh prospects on the horizon, you must consider some factors in the upcoming year. It is crucial for warehouse automation system providers to comprehend the trends driving warehouse automation in order to prepare for future growth. Increasing numbers of firms are using automated warehouse systems to decrease costs, increase efficiency, and streamline their warehouse operations.

The Major trends driving warehouse automation

Labor shortage driving opportunities in the automation market

Labor shortages have been a significant contributor to warehouse automation adoption, and they are expected to persist in this industry for the foreseeable future. Distribution centers and warehouses are forced to consider automation alternatives due to the abundance of employment openings to fulfill orders. Despite the fact that making major investments in warehouse automation solutions has been a significant challenge, they currently offer a larger return on investment than human labor. This increased return positions the market for exponential growth in the following years. Marketers must be able to expand their output to meet the needs of their clients to achieve this expansion.

Regulated growth due to supply chain issues

With so much development potential in the warehouse automation industry, complicated supply chain circumstances continue to be the critical impediment to seizing possibilities and the great equalizer for all suppliers. The semiconductor and steel industries still have the largest backlogs, but obtaining all raw materials will continue to be a challenge in the future. With global supply chains currently in crisis, one option to alleviate the problem is to form alliances with businesses that offer supply chain services that are well-established. This important distinction will not be a magic wand, but it will allow businesses the ability to create strong connections with many vendors that can be used during the manufacturing process.

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