D istribution centers (DCs) are busy places these days, and the demands on them are growing. Ecommerce led to new expectations, challenges, and opportunities that DC operators are eager to meet. Their most pressing concerns include nding ways to operate more ef ciently as orders rush in, customer expectations for rapid deliveries build, and the labor market remains tight. The demands associated with nding and keeping workers are among the main drivers of innovation and an intensifying embrace of sophisticated technological tools in the distribution center environment. “The biggest issue that we consistently hear about is turnover,” says Stefan Friedrich, product marketing manager for Gorbel, a Victor, New York-based provider of a wide range of cranes and ergonomic lifting, fall protection, and warehouse solutions. “A facility’s entire workforce can turn over in one year or less because it can be physically demanding, tedious, and repetitive work.” “The labor squeeze is tighter than ever,” agrees Robert Nilsson, chief commercial of cer for VARGO, a material handling solutions company based in Dublin, Ohio. “The number of labor resources needed to operate in a warehouse has not gone down, and the turnover is signi cant. But labor will always be part of the equation. “Ecommerce remains a constant growth vector as far as the eye can see,” Nilsson adds, and that will continue. An Eye Toward Automation The industry also is witnessing an accelerated rate of advancement and progress in the tools that DCs are using. “The market’s R&D is higher than it has ever been,” Nilsson says. Against that backdrop, many DCs are ambitiously turning to automation. “If you look back one decade ago, you see a lot of additions to the marketplace, such as goods-to-person, automated mobile robots, and other advances,” Nilsson says. “Many facilities have added these tools, and the choices are plentiful.”
When it comes to automation, “We’ve come a long way,” says Don Caddy, CEO of Engineering Innovation, an automation company based in Lafayette, Indiana. One decade ago, automation was out of reach for many operations. Today, “it’s more accessible, faster to deploy, and just better,” he notes. “We work with many companies just starting their automation journey, and we notice that these smaller operations look to support their existing teams and build more resilient systems,” Caddy says. Investing for the Future The DC and warehouse space is entering “a period of massive investment,” Caddy adds. “Over the next few years, spending on automation and robotics is expected to double,” he says. “For many of our customers, that means greater access to tools that used to be out of reach. For businesses like ours, it means growing demand—for hardware and for smart, practical solutions. “The companies that manage this boom well will be the ones that build real partnerships between their workforce and their automation,” he adds. “That’s how you stay ready for the ups and downs that are bound to come in this industry.” It is a complicated journey to implement new automation in a warehouse, whether starting with an all-manual facility or adding more automation to existing automated tools, Nilsson says. Those managing DCs must determine which solutions are the best t for them, including what they are equipped to implement and maintain. “Warehouse buildings are expensive, so you have to create an automation journey with those constraints in mind,” Nilsson says. “Space is at a high cost.” The signi cant expense of warehouse space is one reason that goods-to- person automated tools are “here to stay,” Nilsson says. “Those tools deal fundamentally with space savings. “The importance of labor availability is huge, so how do you maintain the labor balance that you need?” Nilsson asks. “Will workers go across the street
November 2025 • Inbound Logistics 49
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