Retailers must automate

ALTHOUGH WAREHOUSE automation orders declined by 3% globally in 2024 (Interact Analysis), the future looks brighter – especially in the UK. According to market research group, IMARC, the UK warehouse automation market is forecast to increase from USD 2.2b in 2024 to USD 5.3b by 2033.

Growth is being driven by a number of factors. An increasing focus on cost efficiency is one. Automation not only reduces labour costs but also minimises human errors, thereby reducing costly returns. Smart automation and AI can also help lower energy costs by optimising power consumption. A more pressing factor in the logistics sector, however, is labour shortage. A shrinking workforce due to demographic changes has been exacerbated by migration restrictions resulting from Brexit (some sources estimate a loss of 300,000 employees) and, more recently, the rise in employers’ NI costs.

The drivers for warehouse automation are particularly strong in the retail and e-commerce sector. Consumer demands for next-day or even same-day delivery and instant order tracking are making intralogistics automation a necessity for retailers due to its speed, efficiency, capacity and accuracy. This is especially true during seasonal surges such as Black Friday and Christmas, when scalable automated systems can absorb peak volumes without compromising service levels. Retailers also need the real-time inventory tracking and data analytics that only automation can offer. Many are investing in warehouse automation simply to maintain competitiveness in a fast-paced market.

Consumers demand the same levels of service from retailers regardless of their size. In the past, smaller or regional retailers faced barriers to adopting automation due to the size of the investment required. With the increase in scalable systems offered by automation providers today – including mobile automation solutions – and the availability of Robotics-as-a-Service (RaaS) financing options, even SMEs can now join the retail automation trend. As the global tariff row rumbles on, nearshoring may also boost demand for their products and help them justify the CapEx to their Boards.

As well as expertise in large, turnkey solutions, AMHSA members possess a wealth of experience in the design and supply of smaller-scale solutions to help SMEs start their automation journey. If you want to find out more about the potential of warehouse automation for your business, you can meet with AMHSA and a number of its members at IMHX at the NEC from 9 to 11 September, or at the Tomorrow’s Warehouse event in Manchester on 30 September. Alternatively, call Matthew Jones on 07517 610514 or visit the AMHSA website.

Dave Berridge, secretary, AMHSA

For more information, visit www.amhsa.co.uk