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A recent article on the challenges manufacturers will face in 2024 highlighted that the continued shortage of skilled labor remains one of the biggest obstacles in the way of productivity and growth. What’s more, consumer demand for new, innovative products — electric vehicles in the automotive space, or plant-based foods in the food and beverage industry — is pushing manufacturers to diversify production programs, and the more specialized skills required to facilitate these variable production programs only exacerbates the current labor shortage.

The material handling industry is projected to eclipse $300 billion in market size by 2029. Couple this with a recent report that found up to 25% of material handlers are currently experiencing labor shortages and you have a pathway for evolving warehouse automation to help material handlers process increased parcel quantities while also overcoming their staffing challenges. But there’s more to this story than a fast-growing market and labor shortages. Let’s look at a couple of other reasons why material handlers are retrofitting distribution centers for warehouse automation, and what automation designers and engineers should consider when retrofitting existing facilities for an industrial automation framework.