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.
When the discount online retailer Hollar announced in December that it was migrating its warehouse from California to Ohio in a bid to trim shipping and logistics costs, observers may have thought the move would hobble the firm's operations during the critical peak holiday shopping season.
However, on Jan. 7, Hollar announced that its fulfillment operations were already up and running at the new location, giving credit to its fleet of 80 mobile robots from inVia Robotics. Even while Hollar managers were still recruiting new warehouse staff, their new DC was operational and busy shipping orders of everything from toys and electronics to home, beauty, and apparel items, the company said.
The inVia Picker bots used in Hollar's fulfillment center streamline operations by enabling a goods-to-person workflow, operating alongside the facility's human workers to pick and move items, automating the fulfillment process, the company says. InVia's system uses autonomous mobile robots (AMRs) that can navigate through DCs, pick boxes off shelves, and transport them to new locations. Together, the fleet's bots function as a kind of rolling automated storage and retrieval system (AS/RS), freeing up human workers to perform complex tasks like piece picking and quality control instead of walking long distances through cavernous DCs.
InVia Picker bots operate alongside human workers to pick and move items, freeing up people to perform complex tasks like piece picking.
By lightening the load on their human co-workers, "collaborative robots" or cobots can bring about enormous efficiency gains, manufacturers say. For instance, Hollar reports that its initial deployment of inVia robots at its California warehouse last year boosted productivity 300 percent.
So does this mean that warehouses have relegated human workers to replacing robots' spent batteries and squeaky wheels, or that they've even dispensed with humans altogether?
Not at all, the experts say. While the new technology, whether it's an AMR, a cobot, or an automated guided vehicle (AGV), may be providing warehouse workers with a valuable assist in certain tasks, fulfillment centers will continue to employ large staffs of human labor for the foreseeable future, doing roughly the same work they're doing now.
ROBOTS AMPLIFY HUMAN EFFORTS IN THE DC
When robots doing the traveling, workers don't get as tired, so they're more actively engaged, and more productive, too, says Tim Sprosty of DHL Supply Chain..
To understand just how robots can ease the physical burdens of warehouse work, you need look no farther than the operations run by DHL Supply Chain, the contract logistics arm of German logistics giant Deutsche Post DHL Group. The company, which is known for its pioneering work in applying emerging technologies, has conducted a number of pilots with robots in recent years. DHL does not provide details on the specific robot models involved, but in the past, it has said it used technology from the former Rethink Robotics—which provided stationary piece-picking arms capable of sorting each-picks—and from Locus Robotics, which makes autonomous mobile robots that carry bins of goods and tablet computers, accompanying and instructing human pickers and then delivering the selected goods to the next station.
To date, the greatest impact of robots on logistics work has been to supercharge human workers by taking on some of their more onerous assignments. For example, robots often do the heavy lifting on the warehouse floor, so human workers no longer spend their days pulling a pallet jack, climbing off a forklift, or physically handling items, says Tim Sprosty, senior vice president for human resources at DHL Supply Chain.
"Associates were walking six, seven, eight miles a day as they traveled up and down the aisles," Sprosty says. "Now, there isn't the fatigue, because a robot is doing the traveling for the associate, so people don't get as tired, they're more actively engaged, and they're more productive as well." In fact, their productivity may rise to the point that companies need to adjust their labor standards, he adds.
Reducing the physical demands of warehouse work has also made it easier for employers to find workers, according to DHL. "Many warehouses have [jobs] to be filled, but not enough applicants, so there's a war for talent at the warehouse level," Sprosty says. "That is why DHL has invested time and energy in making the work easier; it helps with recruiting, not just with training and onboarding."
A NEW TWIST ON OLD JOBS
The typical DC worker on the floor won't need additional technology skills or robotics expertise to work with cobots, says DHL Supply Chain North America CIO Sally Miller.
As robotics continue to change the nature of warehouse work, it might seem inevitable that job requirements for workers would change as well. But companies that have used the cobots say no technical wizardry is required. The typical hourly worker on the floor won't need any additional technology skills or robotics expertise, according to Sally Miller, chief information officer (CIO) for DHL Supply Chain North America. In fact, many floor workers are comfortable with basic cobot technology without specific training—thanks to their use of consumer electronics like tablets and smartphones, she says. "We're seeing that with our associates about 40 years old and younger, who have grown up around technology—they understand it very fast."
And if those associates do encounter problems, DHL has a plan in place. As workers become more proficient at working alongside robots, DHL certifies its most technologically adept employees as "warehouse super-users," a role that requires them to provide the first line of tech support and answer colleagues' questions about everything from cobots to warehouse management system (WMS) software, Miller says.
While the introduction of robots may not demand much in the way of new skills for DC laborers, it could have a slightly bigger impact on their bosses. "The managers will have to understand how the technology works; they will have to be more tech-adept than they were in the past," Miller says.
Even so, the impact on managers will likely be only moderate, according to DHL. A few technicians may be needed to perform preventive maintenance, but serious repairs or software upgrades are typically handled by the robot vendors themselves, the company says.
THE HUMAN TOUCH
Robots may reduce the number of people needed at DHL Supply Chain, but there will still be a need for uniquely human skills like dexterity and decision-making, says Miller.
Given the advances in robotics capabilities over the past few years, some may wonder whether the bots will soon be putting humans in the unemployment line. At DHL, at least, the answer is a firm no. While the company acknowledges that over time, its fleet of warehouse robots may reduce the number of humans needed, it emphasizes that there will still be a need for uniquely human skills like dexterity and decision-making. Although the cobots have proved quite effective at enhancing workers' productivity, they still rely on humans for tasks like physically reaching into a bin of products and pulling out individual units, Miller points out.
"We are deploying cobots, but it's a misconception that they're going to one hundred percent replace what human employees do," Miller says. "Bots are used to reduce the travel time of associates, which will reduce the number of associates in the building, but not a hundred percent. The feedback is that [workers] like working with the bots and will be able to be more efficient and to level-load their work activity."
Artificial intelligence (AI) and data science were hot business topics in 2024 and will remain on the front burner in 2025, according to recent research published in AI in Action, a series of technology-focused columns in the MIT Sloan Management Review.
In Five Trends in AI and Data Science for 2025, researchers Tom Davenport and Randy Bean outline ways in which AI and our data-driven culture will continue to shape the business landscape in the coming year. The information comes from a range of recent AI-focused research projects, including the 2025 AI & Data Leadership Executive Benchmark Survey, an annual survey of data, analytics, and AI executives conducted by Bean’s educational firm, Data & AI Leadership Exchange.
The five trends range from the promise of agentic AI to the struggle over which C-suite role should oversee data and AI responsibilities. At a glance, they reveal that:
Leaders will grapple with both the promise and hype around agentic AI. Agentic AI—which handles tasks independently—is on the rise, in the form of generative AI bots that can perform some content-creation tasks. But the authors say it will be a while before such tools can handle major tasks—like make a travel reservation or conduct a banking transaction.
The time has come to measure results from generative AI experiments. The authors say very few companies are carefully measuring productivity gains from AI projects—particularly when it comes to figuring out what their knowledge-based workers are doing with the freed-up time those projects provide. Doing so is vital to profiting from AI investments.
The reality about data-driven culture sets in. The authors found that 92% of survey respondents feel that cultural and change management challenges are the primary barriers to becoming data- and AI-driven—indicating that the shift to AI is about much more than just the technology.
Unstructured data is important again. The ability to apply Generative AI tools to manage unstructured data—such as text, images, and video—is putting a renewed focus on getting all that data into shape, which takes a whole lot of human effort. As the authors explain “organizations need to pick the best examples of each document type, tag or graph the content, and get it loaded into the system.” And many companies simply aren’t there yet.
Who should run data and AI? Expect continued struggle. Should these roles be concentrated on the business or tech side of the organization? Opinions differ, and as the roles themselves continue to evolve, the authors say companies should expect to continue to wrestle with responsibilities and reporting structures.
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.
Logistics industry growth slowed in December due to a seasonal wind-down of inventory and following one of the busiest holiday shopping seasons on record, according to the latest Logistics Managers’ Index (LMI) report, released this week.
The monthly LMI was 57.3 in December, down more than a percentage point from November’s reading of 58.4. Despite the slowdown, economic activity across the industry continued to expand, as an LMI reading above 50 indicates growth and a reading below 50 indicates contraction.
The LMI researchers said the monthly conditions were largely due to seasonal drawdowns in inventory levels—and the associated costs of holding them—at the retail level. The LMI’s Inventory Levels index registered 50, falling from 56.1 in November. That reduction also affected warehousing capacity, which slowed but remained in expansion mode: The LMI’s warehousing capacity index fell 7 points to a reading of 61.6.
December’s results reflect a continued trend toward more typical industry growth patterns following recent years of volatility—and they point to a successful peak holiday season as well.
“Retailers were clearly correct in their bet to stock [up] on goods ahead of the holiday season,” the LMI researchers wrote in their monthly report. “Holiday sales from November until Christmas Eve were up 3.8% year-over-year according to Mastercard. This was largely driven by a 6.7% increase in e-commerce sales, although in-person spending was up 2.9% as well.”
And those results came during a compressed peak shopping cycle.
“The increase in spending came despite the shorter holiday season due to the late Thanksgiving,” the researchers also wrote, citing National Retail Federation (NRF) estimates that U.S. shoppers spent just short of a trillion dollars in November and December, making it the busiest holiday season of all time.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
The overall national industrial real estate vacancy rate edged higher in the fourth quarter, although it still remains well below pre-pandemic levels, according to an analysis by Cushman & Wakefield.
Vacancy rates shrunk during the pandemic to historically low levels as e-commerce sales—and demand for warehouse space—boomed in response to massive numbers of people working and living from home. That frantic pace is now cooling off but real estate demand remains elevated from a long-term perspective.
“We've witnessed an uptick among firms looking to lease larger buildings to support their omnichannel fulfillment strategies and maintain inventory for their e-commerce, wholesale, and retail stock. This trend is not just about space, but about efficiency and customer satisfaction,” Jason Tolliver, President, Logistics & Industrial Services, said in a release. “Meanwhile, we're also seeing a flurry of activity to support forward-deployed stock models, a strategy that keeps products closer to the market they serve and where customers order them, promising quicker deliveries and happier customers.“
The latest figures show that industrial vacancy is likely nearing its peak for this cooling cycle in the coming quarters, Cushman & Wakefield analysts said.
Compared to the third quarter, the vacancy rate climbed 20 basis points to 6.7%, but that level was still 30 basis points below the 10-year, pre-pandemic average. Likewise, overall net absorption in the fourth quarter—a term for the amount of newly developed property leased by clients—measured 36.8 million square feet, up from the 33.3 million square feet recorded in the third quarter, but down 20% on a year-over-year basis.
In step with those statistics, real estate developers slowed their plans to erect more buildings. New construction deliveries continued to decelerate for the second straight quarter. Just 85.3 million square feet of new industrial product was completed in the fourth quarter, down 8% quarter-over-quarter and 48% versus one year ago.
Likewise, only four geographic markets saw more than 20 million square feet of completions year-to-date, compared to 10 markets in 2023. Meanwhile, as construction starts remained tempered overall, the under-development pipeline has continued to thin out, dropping by 36% annually to its lowest level (290.5 million square feet) since the third quarter of 2018.
Despite the dip in demand last quarter, the market for industrial space remains relatively healthy, Cushman & Wakefield said.
“After a year of hesitancy, logistics is entering a new, sustained growth phase,” Tolliver said. “Corporate capital is being deployed to optimize supply chains, diversify networks, and minimize potential risks. What's particularly encouraging is the proactive approach of retailers, wholesalers, and 3PLs, who are not just reacting to the market, but shaping it. 2025 will be a year characterized by this bias for action.”
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.