Most analysts agree that the material handling industry is headed for a significant rise in automation, robotics and artificial intelligence integration in 2025 as companies focus on data-supported decision making, improved operational efficiency and sustainability through electrification.
All of it, industry watchers say, is aimed at addressing the continuing and growing demand of e-commerce logistics. Companies need real-time tracking of shipments and inventories, faster fulfillment and delivery, and ways to address an ongoing worker shortage.
At T&S Brass and Bronze Works, a commercial plumbing manufacturer in Travelers Rest, South Carolina, operational efficiencies were aided by the recent installation of integrated automation solutions including VNA racking, conveyors and automated storage and retrieval systems to replace manual processes. AMRs are next, according to Bob Clemment, T&S Manager of Production & Inventory Control.
“We’re unique in our industry with 95 percent of our orders shipped in two days or less,” Clemment said. “When you say lean, we’re about as lean as it comes. The trick for us is to make sure we have the right material for those orders that are being assembled, packaged and shipped usually the same day as entered.”
Another Carolina Handling customer said his company’s distribution facility is within about two years of having 100 percent automated unloading for about 40 percent of its SKUs.
And another said that while his company takes a more conservative approach to new technologies – one that favors tried, true and tested – he does see a future that is “on the systems side with very little human interaction.”
Each year, the Material Handling Equipment Distributors Association (MHEDA) publishes a list of the top 15 business trends shaping the material handling industry to help its members navigate challenges and opportunities. Automation, AI, emerging technologies and electrification all made this year’s list of 15 trends:
1. Economy
The economic outlook presents a cautiously optimistic scenario in certain regions and industry segments while others continue to have an unpredictable recovery as the market normalizes.
2. Artificial Intelligence
The integration of AI-driven technologies, such as autonomous robots, predictive analytics and real-time supply chain visibility, is transforming traditional processes and setting new standards for operational excellence.
3. Cash Flow
The industrial truck segment is experiencing cash flow pressure due to increased inventory, interest rates, tightening credit conditions and extended payment terms along with a reduction in rental utilization and used equipment values.
4. Market Pressure
The storage and handling segment is experiencing pressures from other segments entering their market and manufacturers’ capacities outpacing customer demand.
5. Emerging Technologies
Emerging technologies are requiring members to quickly develop tech driven solutions and integrate them into traditional automation solutions.
6. Cybersecurity
Heightened cybersecurity risks are impacting companies’ ability to safeguard sensitive data and to ensure customer trust, supply chain continuity and business stability.
7. Consolidation
Consolidation continues with acquisitions by private equity firms, manufacturers and distributors.
8. Corporate Governance
There are increased demands from customers and suppliers for members to adhere to environmental, social and corporate governance requirements.
9. Health & Wellness
Employees are facing increased pressure and look to employers for financial and mental health services.
10. Requirements
Requirements continue to increase for permitting and engineering as well as contractor licensing and safety.
11. Electrification
Equipment electrification, mobile robots and automated guided vehicles (AGV) will continue to impact member sales and aftermarket operations.
12. Geopolitics
The volatile geopolitical environment creates risks to global markets and business operations.
13. Talent Gap
The talent gap continues to grow, increasing the challenge of hiring skilled employees for members.
14. Partnerships
Strategic partnerships between manufacturers and distributors are more important than ever as demand for direct consumer business increases.
15. Imported Products
There is an increase in low cost imported products putting pressure on margins for both distributors and manufacturers.
In 2025, Carolina Handling will address material handling trends by sharpening its focus on the evolution from a forklift-only provider into one of the country’s leading integrated automation solutions companies, according to Chief Operating Officer Joe Perkins.
“We stress having conversations with our customers around technologies that we can employ so that they gain not only a better understanding, but also a comfort level about the return on that technology,” Perkins said.
For the last few years, customer discussions have covered issues such as narrowing aisles for better space utilization and adding automation solutions to reduce error rates and improve throughput. Being solution-centric rather than product-centric is the best way to help customers, according to Perkins.
“By asking the right questions and listening actively and objectively to the answers, we can make the right recommendations to drive efficiency and profitability,” he said. “By serving as a material handling partner, we create customer confidence that leads to a consultancy relationship rather than a sales-driven one.”
Learn more about integrated automation solutions from Carolina Handling.
