2024 has seen continuous evolution across all aspects of the warehouse and logistics sector, from the increased adoption of electric vehicles in logistics fleets to new sustainability initiatives being implemented across the industry. However, in an age where technology is rapidly evolving, leaders must be wary of the impact this has on their workforce and focus on employee satisfaction and upskilling. Looking ahead to 2025, the key themes set to shape the warehouse and logistics sector fall across robotics, sustainability, and the employee experience.
The Era of Humanoid Robotics
In an industry driven by precision, robots have proven to excel in compliance, whilst also improving accuracy in stock counting and speeding up the response time across the warehouse. The Robotics market in the UK is expected to grow at a rate of 17.37% annually until 2029, resulting in a market volume of £2.5bn by the end of the decade. Within that, there is a particular focus on the growth of humanoid robots that are projected to reach USD 1.3 billion by 2030.
This growth is largely fuelled by the rapid adoption of AI technologies across various industries, and the governments emphasis on digital transformation. Across the globe, we are already seeing an uptick in companies adopting robots within the warehouse sector, with companies such as Tesla and Boston Dynamics already beginning to develop their own humanoid robots at pace.
Earlier this year, Iron Mountain partnered with Dexory to implement its mobile robots and the AI powered DexoryView platform across its warehouses. These robots will be able to scan 15,000 locations per hour, without impacting day-to-day operations. Ultimately, this will enable staff to upskill and reduce the need for taking on laborious and often, time-consuming tasks.
The Race for Energy
In the final quarter of 2023, the UK reached a significant milestone in its renewable energy production and matched the previous peak in 2022. This milestone saw the proportion of electricity generated from renewable sources rise to a new UK record of 47.3% This is encouraging in a landscape of ongoing financial pressures facing businesses due to the rising energy costs and the challenges posed by environmental targets. Equally, the ongoing conflict in Ukraine is continuing to result in increased issues linked to the supply of non-renewable energy. Despite that, the warehouse and logistics industry must focus on making a sustainable energy future. With the April 2030 deadline for all warehouses to have an EPC B rating or above in order to sign a new lease, organisations are continuing to ramp up their sustainability efforts.
One of the initiatives being implemented is solar-based energy due to the substantial amount of available roof space at warehouses. For instance, at Iron Mountain’s Rugby Campus Energy Centre, there is an integration of rooftop solar PV, battery storage, and a combined heat and power plan. This system delivers resilient, 24/7 solar electricity and ensures supports sustainable energy consumption. By utilising a mix of energy sources and advanced distribution systems, it ensures continuous operation without heavy dependence on traditional power grids, significantly reducing its carbon footprint. As we look to the year ahead, and a greener future, we can expect to see more organisations finding new ways to futureproof their own infrastructure, address the energy challenges and reach their sustainability goals.
Reshaping The Employee Experience
It’s been over a year since the phenomenon known as “The Great Resignation” swept the world of work, and it doesn’t seem to be slowing down. The UK warehousing and logistics sector is in the grip of a labour shortage, with employers across the country expressing concerns over the shortage of drivers, engineers, pickers, and packers. Historically, warehouse employees have been viewed as short-term shift workers that ‘clock in and clock out.’ But things across the industry are steadily beginning to change. Employers are beginning to realise that to gain and retain talent, it is crucial for warehouses to create spaces that speak to today’s diverse workforce.
Whether it is a prayer room, a communal dining area, or a quiet room for employees to take personal phone calls, sit in counselling sessions, or break a religious fast, these details can lead to employees feeling more valued, more seen, and respected. With many of the UK’s warehouses being based in diversely populated areas of the country, including the famous Golden Logistics Triangle in the Midlands, there is a growing focus on reshaping the warehouse experience to serve the needs of the area’s population. In the coming year, the industry must continue to listen, learn, and create spaces for their employees to thrive at work. Doing so will motivate existing employees, while also attracting talent from a diverse range of backgrounds.
