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Labor Shortages Fuel Robotics Growth in Warehouses, New Study Finds

A recent study by Peerless Research Group shows that labor shortages and rising labor costs remain the top reasons companies adopt robotics in warehouses and distribution centers. What’s Related The January 2025 survey, conducted for Logistics Management, Modern Materials Handling, and Supply Chain Management Review, gathered responses from 217 professionals directly involved with robotic automation. […]


A recent study by Peerless Research Group shows that labor shortages and rising labor costs remain the top reasons companies adopt robotics in warehouses and distribution centers.

What’s Related

The January 2025 survey, conducted for Logistics Management, Modern Materials Handling, and Supply Chain Management Review, gathered responses from 217 professionals directly involved with robotic automation. The results provide a snapshot of the industry’s current state and future prospects.

Key findings

Top drivers of robotics adoption:

  • 55% cited labor availability constraints as the #1 motivator
  • 42% cited labor costs
  • Additional motivators include improving worker productivity and reducing physical strain

Top robotics use cases today:

  • Picking (33%)
  • Truck loading/unloading (33%)
  • Packing (29%)
  • Sorting (25%)

Impact on workers:

  • 55% said robotics reduces employee travel time
  • 50% said it reduces lifting of heavy loads
  • 46% said it helps create a better work environment and improves retention

Adoption trends:

  • 48% of companies already use robots
  • 32% plan to adopt within the next 3 years
  • 43% expect to increase robotics budgets in 2025

Challenges:

  • Only 32% have approved funding for new robotics initiatives
  • Companies cite integration hurdles and internal knowledge gaps as major obstacles
  • However, 46% are very or extremely willing to invest in robotics education

What’s next?

The study suggests that while many companies are still in the early stages of their robotics journey, momentum is building fast.

“Labor availability and costs are clearly driving the industry’s robotics push,” said Peerless Research Group. “Companies are looking for ways to boost productivity while supporting their workforce.”

As labor challenges persist, more companies are expected to move from pilots to full-scale deployments in the coming years.

 

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