Growing demand and economic uncertainty are prompting businesses to rethink how they invest in warehouse automation
Warehouse operators are being urged to rethink costly automation investments as economic uncertainty and rising demand make it increasingly difficult to predict future storage and distribution needs.
Global tensions, operational pressures and changing consumer demand are creating challenges for businesses planning major warehouse upgrades, according to robotics specialist Exotec.
The company believes operators should avoid committing to large-scale automation projects based on uncertain long-term forecasts, instead adopting systems that can expand as requirements change.
Asaf Curelaru, head of deployment and maintenance for the UK and Ireland at Exotec, said flexibility was becoming increasingly important when planning investments worth millions of pounds.
He said: “Uncertainty matters when automation projects that involve multi-million-pound investments are being planned.”
He added: “Rather than trying to solve an uncertain future today, organisations should commit to what they can see clearly, while building an expansion path for what comes next”.
With warehouse sizes increasing and operational requirements becoming harder to predict, Exotec argues that businesses should focus on their immediate needs while preparing for future growth.
The company believes attempting to forecast requirements more than five years ahead can be particularly challenging, especially as demand, supply chains and wider economic conditions continue to change.
Mr Curelaru said warehouse operators did not need to commit immediately to systems designed around what their businesses might require a decade from now.
Instead, businesses could invest in automation that meets current demands while allowing additional capacity to be introduced when required.
The approach comes as warehouse automation remains relatively limited worldwide.
According to the UK Warehousing Association (UKWA), only around 10% to 15% of warehouses globally currently use robots, suggesting considerable scope for further adoption.
The association has highlighted the potential for businesses to introduce automation gradually within existing warehouse facilities rather than relying entirely on new developments.
Artificial intelligence is also expected to play a growing role in warehouse operations, supporting demand forecasting, predictive maintenance and improved integration between automated systems.
Exotec believes planning for expansion from the outset can help businesses understand the likely costs of increasing capacity, reducing uncertainty around future investment decisions.
Mr Curelaru said: “Long-term forecasts will not always be accurate. But with good planning, an organisation can establish what scaling a system could look like before investing in automation.”
By considering potential expansion requirements early, operators can identify the additional equipment, infrastructure and investment that may be needed as their businesses grow.
For example, a warehouse could initially install a system capable of meeting expected demand in 2029, while developing plans to increase capacity by 2035.
Automation providers can model different growth scenarios, allowing businesses to assess future requirements, likely costs and the time needed to implement upgrades.
This could help operators avoid investing heavily in capacity they may not need for several years, while reducing the risk of their systems becoming unsuitable as operations expand.
Mr Curelaru said taking a phased approach could also provide businesses with greater budget visibility and more control over long-term spending.
He concluded: “The future warehouse does not need to be designed today around assumptions about requirements many years away. A more practical approach is to meet today’s operational needs while maintaining a clear path for future expansion”.