Warehouse robotics can help improve throughput, productivity and use of existing storage space, according to Exotec
The UK risks losing ground to European rivals on warehouse automation unless more targeted incentives are introduced to help businesses invest in robotics and advanced machinery, Exotec has warned.
The warehouse automation specialist said countries such as Italy are using dedicated tax credits to encourage investment, while UK businesses rely more heavily on broader support mechanisms.
Italy’s Industry 4.0 and Transizione 4.0 programmes allow organisations investing in qualifying automated equipment to claim tax credits against part of the cost.
Credits of up to 20% are available on qualifying investments worth up to €2.5 million.
Exotec said the approach is helping Italian businesses modernise warehouses at a time when operators across Europe are facing labour shortages, rising costs and pressure to fulfil orders more quickly.
Asaf Curelaru, operations director for UK and Ireland at Exotec, said: “Europe’s shift towards warehouse automation is being driven by a different set of pressures to other regions.”
He added: “For many operators, the priority is not only speed or scale, but improving efficiency and unit economics while dealing with persistent labour shortages and rising operating costs.”
Exotec said labour availability has become an increasingly important issue for warehouse operators, particularly where businesses are struggling to recruit and retain stable teams.
Curelaru said: “Labour availability is becoming one of the defining issues for warehouse operators in Europe.”
“In the UK, turnover remains high, and many businesses are finding it difficult to build stable, scalable warehouse teams.”
He said automation could form part of a wider strategy to improve productivity, consistency and resilience rather than being treated as a standalone solution.
Rising warehouse costs and pressure to make better use of available space are also encouraging investment in automated systems.
Curelaru said: “Automated systems can help operators improve throughput and make better use of existing warehouse space, but the business case is often held back by the level of upfront investment required.”
Exotec argues that this is where more targeted government incentives could make a difference.
While support for business investment exists in the UK through wider mechanisms, the company believes warehousing and logistics automation would benefit from a more focused approach.
Curelaru said: “The UK’s limited targeted automation incentives risks leaving businesses at a competitive disadvantage.”
He added: “While other countries encourage automation, UK businesses are having to fund these investments themselves, making automation projects difficult to justify despite mounting labour pressures.”
Exotec pointed to Italy as an example of how tax incentives can lower the barrier to investment in robotics and other advanced warehouse technologies.
Curelaru said: “The good news is that Italy has already shown what is possible — and the UK has every opportunity to follow suit.”
The company believes more targeted support could help UK warehouse operators increase productivity, tackle labour constraints and make automation projects easier to justify financially.