Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
The rise of robotics is one of the fastest-growing trends in logistics, with announcements of warehouses that have invested in robots or autonomous vehicles coming almost weekly. Distribution center managers are now using robotics and advanced automated equipment to solve challenges at every stage of the material handling game.
But how exactly will all these new bots fit into the typical DC? In their rush to forge a robotic link in the supply chain, planners are still trying to predict what sort of buildings and infrastructure they will need to support the complex machines.
A century ago, architects wrestled with a similar issue when the industrial revolution brought widescale changes to residential housing design. Now that most people commute by automobile instead of horseback, modern homes have attached two-car garages instead of hay barns and stables.
So will the warehouses of 2050 look different because they're designed to accommodate squadrons of robots instead of shifts of human workers? (After all, robots don't need restrooms, but they might need extra electrical outlets.) In fact, warehouse design is already evolving to accommodate robots' needs, and experts say that a few simple changes can make all the difference.
THE BIG EMPTY BOX
The easiest way to go robotic is to start from scratch, incorporating any required features like charging stations, Wi-Fi networks, and smooth floors into the design of a brand-new building, says Doug Rabeneck, director in the operations excellence practice at business and technology consulting firm West Monroe Partners. That approach is clearly more expensive than adding robotics to an existing warehouse, but it avoids the challenges of overlaying a new robotic system onto the existing work force and systems.
Despite the expense, that approach was common 20 years ago, when early generations of automated guided vehicles (AGVs) required wire-guided controls buried in cement warehouse floors so the vehicles could follow predetermined routes like streetcars moving through a city, Rabeneck says.
More recent offerings—such as the robots developed by Amazon Robotics, Clearpath Robotics, and Locus Robotics—require less infrastructure, using unobtrusive technologies like "lidar" and vision systems for navigation instead of relying on permanent hardware like wires, magnets, or beacons. Thanks to those advances, companies are finding it easier to add robots to a warehouse, whether the building is new or old.
"Your building just needs to be a big empty box," Rabeneck says. "To retrofit it, you might need a lot of electronics and communications up on the roof, like wireless router boxes, and either a server in one corner of the facility or communications through the cloud. And you'd probably need charging stations for the units."
GETTING ROBOT-READY
In addition to wiring a building with advanced charging and communications systems, several basic details in the design and layout of a facility can affect its readiness to host material handling robots, says Tom Galluzzo, founder and CEO of Pittsburgh-based Iam Robotics.
"The name of the game is optimizing a solution to whatever your goal is, whether that's an each-picking solution or [one where machines] collaborate with the work force," Galluzzo says. But the needs of people aren't always aligned with those of the machines, he says. "For example, people usually like working in a temperature of 70 degrees, whereas robots might want it to be 50 degrees. If you're going to use both manual and robotic solutions, you need a happy medium."
Even interior design can affect the choice of robotics. For instance, people will gladly walk around on carpeting all day, but robots don't like carpets, Galluzzo says.
"We look for pristine, bare, flat concrete floors," says Galluzzo. "We've been in places with hundred-year-old wooden floors and they're really beat up. To drive robots on that would be like driving your car on cobblestones all day long."
The layout of a DC is also important, since most robots need to be insulated from the elements, not operating anywhere near a loading dock where rain or snow could blow in and affect their electronics, he says.
Finally, just as any building has features dedicated to its human workers' needs—such as a soda machine or a break room—a warehouse designed for robots would need its own "amenities." For instance, an automated DC design could call for a reinforced power grid to handle the extra charging stations and a redundant electric generator so the building doesn't shut down every time a storm knocks the power out.
Safety is another crucial consideration in a robotic fulfillment facility. Recent laptop and smartphone recalls have highlighted the potential for lithium-ion batteries to overheat and even spark fires. A lot of robots today use similar lithium-ion battery technology, which not only raises the question of fire safety but also has implications for operations where DC workers are trained to safely handle the lead-acid batteries commonly used in forklifts but not their lithium-ion counterparts.
"Lithium-ion batteries need a little more care and maintenance than lead-acid," Galluzzo says. "Because you have all that energy density [with lithium-ion], you need to be sure you have your safety precautions in line, like fire safety. What it comes down to is that you're storing more energy in a smaller package."
To address that issue and create a safer working environment, engineers are already working on a next generation of batteries designed for long life and safe operation. The new designs use lithium iron phosphate (LiFePO4) cHemiätry instead of the current lithium polymer designs, Galluzzo says.
BOOSTING STORAGE DENSITY
Once a warehouse has satisfied those basic design requirements, it might start to look a lot different inside, as the introduction of robots tends to change inventory storage patterns. A warehouse with automated storage and retrieval systems (AS/RS), for instance, can pack more inventory into a given space than one that relies on human pickers, since computer-guided retrieval vehicles can easily navigate aisles with just an inch or two of clearance, Rabeneck says.
Similarly, many goods-to-person robotic systems allow for higher-density storage than a warehouse that has to leave aisles between racks for human pickers or forklifts. But some of that advantage is lost if the bots also need a dedicated staging area to place racks of products, which can be the case in operations that use robots to deliver racks of products to a human picker for selection, says Bruce Welty, chairman and founder of warehouse automation vendor Locus Robotics Inc. and fulfillment specialist Quiet Logistics Inc. One way around that problem is to adopt a different goods-to-person strategy, using mobile robots to collect only the items needed for orders—as opposed to entire racks—and deliver them to humans at packing stations, Welty says.
Future developments in robotic technologies will doubtless continue to influence warehouse design in terms of the patterns of inventory storage, the flow of goods between work stations, and the interactions between robots and human associates.
THE ECONOMICS OF ROBOTICS
Likewise, the rise of robotics could affect the actual shape of the warehouse. For instance, a company planning to deploy rolling robots like AGVs might seek a vast one-story building, while a company planning to use robotic cranes might want a facility with extra vertical space.
When it goes to automate a facility, UPS Inc. considers each building's space, capacity, volume, and velocity of throughput, says Frank Perez, vice president of industrial engineering at UPS Global Logistics & Distribution. "Automation is a significant capital investment," Perez says. "If you're considering automation with a longer ROI [return on investment], you need to have a good growth strategy. When we evaluate real estate, if a DC is landlocked, it's a great opportunity to use automation to drive density and efficiency within the existing footprint."
If a plan calls for increasing density by creating more vertical storage, the company would choose a robotic solution such as an AS/RS, goods-to-person system, or cranes, as opposed to AGVs that are designed to roll across wide, flat spaces, he says.
Those considerations may sound pedestrian compared with the leading-edge technology that makes a robot tick, but the need to stay profitable carries a lot of weight when it comes to choosing the best type of automated material handling equipment for a facility and picking the best facility to fit the robot.
"We have just begun to scratch the surface as an industry," Iam Robotics' Galluzzo says. The same could be said about the logistics industry's evolution to include advanced robotics in buildings originally designed for people and goods.
“The past year has been unprecedented, with extreme weather events, heightened geopolitical tension and cybercrime destabilizing supply chains throughout the world. Navigating this year’s looming risks to build a secure supply network has never been more critical,” Corey Rhodes, CEO of Everstream Analytics, said in the firm’s “2025 Annual Risk Report.”
“While some risks are unavoidable, early notice and swift action through a combination of planning, deep monitoring, and mitigation can save inventory and lives in 2025,” Rhodes said.
In its report, Everstream ranked the five categories by a “risk score metric” to help global supply chain leaders prioritize planning and mitigation efforts for coping with them. They include:
Drowning in Climate Change – 90% Risk Score. Driven by shifting climate patterns and record-high temperatures, extreme weather events are a dominant risk to the supply chain due to concerns such as flooding and elevated ocean temperatures.
Geopolitical Instability with Increased Tariff Risk – 80% Risk Score. These threats could disrupt trade networks and impact economies worldwide, including logistics, transportation, and manufacturing industries. The following major geopolitical events are likely to impact global trade: Red Sea disruptions, Russia-Ukraine conflict, Taiwan trade risks, Middle East tensions, South China Sea disputes, and proposed tariff increases.
More Backdoors for Cybercrime – 75% Risk Score. Supply chain leaders face escalating cybersecurity risks in 2025, driven by the growing reliance on AI and cloud computing within supply chains, the proliferation of IoT-connected devices, vulnerabilities in sub-tier supply chains, and a disproportionate impact on third-party logistics providers (3PLs) and the electronics industry.
Rare Metals and Minerals on Lockdown – 65% Risk Score. Between rising regulations, new tariffs, and long-term or exclusive contracts, rare minerals and metals will be harder than ever, and more expensive, to obtain.
Crackdown on Forced Labor – 60% Risk Score. A growing crackdown on forced labor across industries will increase pressure on companies who are facing scrutiny to manage and eliminate suppliers violating human rights. Anticipated risks in 2025 include a push for alternative suppliers, a cascade of legislation to address lax forced labor issues, challenges for agri-food products such as palm oil and vanilla.
That number is low compared to widespread unemployment in the transportation sector which reached its highest level during the COVID-19 pandemic at 15.7% in both May 2020 and July 2020. But it is slightly above the most recent pre-pandemic rate for the sector, which was 2.8% in December 2019, the BTS said.
For broader context, the nation’s overall unemployment rate for all sectors rose slightly in December, increasing 0.3 percentage points from December 2023 to 3.8%.
On a seasonally adjusted basis, employment in the transportation and warehousing sector rose to 6,630,200 people in December 2024 — up 0.1% from the previous month and up 1.7% from December 2023. Employment in transportation and warehousing grew 15.1% in December 2024 from the pre-pandemic December 2019 level of 5,760,300 people.
The largest portion of those workers was in warehousing and storage, followed by truck transportation, according to a breakout of the total figures into separate modes (seasonally adjusted):
Warehousing and storage rose to 1,770,300 in December 2024 — up 0.1% from the previous month and up 0.2% from December 2023.
Truck transportation fell to 1,545,900 in December 2024 — down 0.1% from the previous month and down 0.4% from December 2023.
Air transportation rose to 578,000 in December 2024 — up 0.4% from the previous month and up 1.4% from December 2023.
Transit and ground passenger transportation rose to 456,000 in December 2024 — up 0.3% from the previous month and up 5.7% from December 2023.
Rail transportation remained virtually unchanged in December 2024 at 150,300 from the previous month but down 1.8% from December 2023.
Water transportation rose to 74,300 in December 2024 — up 0.1% from the previous month and up 4.8% from December 2023.
Pipeline transportation rose to 55,000 in December 2024 — up 0.5% from the previous month and up 6.2% from December 2023.
The supply chain risk management firm Overhaul has landed $55 million in backing, saying the financing will fuel its advancements in artificial intelligence and support its strategic acquisition roadmap.
The equity funding round comes from the private equity firm Springcoast Partners, with follow-on participation from existing investors Edison Partners and Americo. As part of the investment, Springcoast’s Chris Dederick and Holger Staude will join Overhaul’s board of directors.
According to Austin, Texas-based Overhaul, the money comes as macroeconomic and global trade dynamics are driving consequential transformations in supply chains. That makes cargo visibility and proactive risk management essential tools as shippers manage new routes and suppliers.
“The supply chain technology space will see significant consolidation over the next 12 to 24 months,” Barry Conlon, CEO of Overhaul, said in a release. “Overhaul is well-positioned to establish itself as the ultimate integrated solution, delivering a comprehensive suite of tools for supply chain risk management, efficiency, and visibility under a single trusted platform.”
Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.
The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of port facilities up and down the coast.
Details of the new agreement on those issues have not yet been made public, but in the meantime, retailers and manufacturers are heaving sighs of relief that trade flows will continue.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” Gold said.
The next step in the process is for both sides to ratify the tentative agreement, so negotiators have agreed to keep those details private in the meantime, according to identical statements released by the ILA and the USMX. In their joint statement, the groups called the six-year deal a “win-win,” saying: “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
The breakthrough hints at broader supply chain trends, which will focus on the tension between operational efficiency and workforce job protection, not just at ports but across other sectors as well, according to a statement from Judah Levine, head of research at Freightos, a freight booking and payment platform. Port automation was the major sticking point leading up to this agreement, as the USMX pushed for technologies to make ports more efficient, while the ILA opposed automation or semi-automation that could threaten jobs.
"This is a six-year détente in the tech-versus-labor tug-of-war at U.S. ports," Levine said. “Automation remains a lightning rod—and likely one we’ll see in other industries—but this deal suggests a cautious path forward."
Editor's note: This story was revised on January 9 to include additional input from the ILA, USMX, and Freightos.
Under terms of the deal, Sick and Endress+Hauser will each hold 50% of a joint venture called "Endress+Hauser SICK GmbH+Co. KG," which will strengthen the development and production of analyzer and gas flow meter technologies. According to Sick, its gas flow meters make it possible to switch to low-emission and non-fossil energy sources, for example, and the process analyzers allow reliable monitoring of emissions.
As part of the partnership, the product solutions manufactured together will now be marketed by Endress+Hauser, allowing customers to use a broader product portfolio distributed from a single source via that company’s global sales centers.
Under terms of the contract between the two companies—which was signed in the summer of 2024— around 800 Sick employees located in 42 countries will transfer to Endress+Hauser, including workers in the global sales and service units of Sick’s “Cleaner Industries” division.
“This partnership is a perfect match,” Peter Selders, CEO of the Endress+Hauser Group, said in a release. “It creates new opportunities for growth and development, particularly in the sustainable transformation of the process industry. By joining forces, we offer added value to our customers. Our combined efforts will make us faster and ultimately more successful than if we acted alone. In this case, one and one equals more than two.”
According to Sick, the move means that its current customers will continue to find familiar Sick contacts available at Endress+Hauser for consulting, sales, and service of process automation solutions. The company says this approach allows it to focus on its core business of factory and logistics automation to meet global demand for automation and digitalization.
Sick says its core business has always been in factory and logistics automation, which accounts for more than 80% of sales, and this area remains unaffected by the new joint venture. In Sick’s view, automation is crucial for industrial companies to secure their productivity despite limited resources. And Sick’s sensor solutions are a critical part of industrial automation, which increases productivity through artificial intelligence and the digital networking of production and supply chains.