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Warehouse Automation Trends for 2023

Warehouse Automation Trends for 2023

Supply chain issues have become an all-too-common issue over the past few years. According to the executives surveyed in this 2022 report from Deloitte US:

  • 80% reported that their supply chain had been heavily impacted by at least one disruption over the last 12-18 months.
  • 90% agreed that the frequency of the disruptions has increased over the last ten years and that the impact has been exacerbated by the pandemic.
  • 50% agreed that these disruptions had a major effect on productivity and profits.

4 Warehouse Automation Trends You Can Expect in 2023

As a result of these looming supply chain disruptions, warehouses and distribution centers are doubling down on their automation efforts. Here are some trends in warehouse automation you can expect to see in the coming months.

 Automation Boom Spurred by Labor Shortage

The outlook for the labor shortage in 2023 is still uncertain. The COVID-19 pandemic, as well as the increasing number baby boomers retiring, have converged to put a serious dent in the labor pool. Add to this the increased pressure on distribution centers brought about by the rapid growth of e-commerce, and you can see why so many logistics managers are looking for automated solutions. Automation increases a warehouse's overall performance while reducing its reliance on manual labor.

Inventory Management Shift from "Just-in-Time" to "Just-in-Case"

"Just-in-Time" inventory management is a lean strategy that involves keeping just enough stock in inventory to meet demand. The idea is to avoid a massive backstock and keep your goods flowing out just as rapidly as they come in. Prior to the current logistics challenges, this was a great approach to staying competitive. However, in the wake of today's labor shortages and supply chain disruptions, a lot of warehouses and distribution centers are making a pivot to "just-in-case" inventory management.

While this year will probably see a decline in the mentality of "buying any inventory they can get their hands on," we probably won't see an immediate shift back to "just-in-time." Many distribution centers will continue to err on the side of caution and keep a little extra inventory on hand. As a result, you can expect to see more emphasis than usual on automated storage and retrieval solutions.

A Focus on Optimizing Floorspace

A recent Cushman & Wakefield Marketbeat Report reveals that the U.S. industrial vacancy rate fell to an all-time low of 3.2% in 2022 while rent reached an all-time high of $8.36/square foot. This trend is likely to continue in 2023, with rent continuing to increase while vacancy rates remain low. In short, warehouse floorspace in the U.S. is at a premium because it is in such high demand.

Last year saw an increase in "building up" as distribution centers sought ways to expand without obliterating their bottom line. You can expect this trend to continue well into the foreseeable future. You can also expect to see a greater emphasis on automated floor-to-ceiling storage solutions as warehouses look for ways to fit more inventory into less floorspace.

Increased Goods-to-Person Robotic Integrations

Last year was heralded as the "Golden Era of Robotics Adoption" by experts as labor shortages and increased customer demands led to an exponential rise in robotic warehouses. This trend shows no sign of slowing over the next few years. Distribution centers will continue to look to solutions like autonomous mobile robots (AMRs) and robotic cube storage to fulfill orders. In addition, we'll likely see an increased focus on collaborative robots ("cobots") that will work alongside humans in an effort to save space and maximize efficiencies.

80/20 T-Slot Profiles for Warehouse Automation

Whether you're looking to enhance your existing warehouse automation or build a new system from the ground up, 80/20 has the extruded aluminum T-slot profiles and accessories you need. For more information, please visit the Automation page on our website or order a copy of our Automation Solutions booklet.

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