The Impact of Robotics on Labor

Labor shortages are no longer a temporary hurdle but a long-term challenge reshaping supply chains worldwide. Robotics has emerged as a leading solution for industries like warehousing and fulfillment that are looking to increase operational efficiency and reduce costs.

This has fueled discussions about potential harm to human labor. But rather than simply asking, “Will robots take these jobs?” we should explore how people can collaborate with robotics to make work easier, safer, more efficient, and create new opportunities for employees. Most of that should be decided before the first robot arrives, during the system design phase.

Key Takeaways:

• Robots change the work: Automation changes the type of human labor each order needs. But in 2026, warehouses bought more robots and posted more job openings at the same time.
• Workers rate it well: In our survey of 400 US warehouse workers, 63% reported higher job satisfaction with automation, and 49% reported a pay increase because of it.
• Design decides the outcome: Which tasks robots take, and what work is left for people, is set when the system technology is designed and integrated.

Warehouses are under constant pressure to meet rising consumer demands for things like faster order fulfillment, broader product selection, and customized orders, all with perfect accuracy. Add the complexities of peak season sales, and the challenge becomes even greater.

In manually operated facilities, workers must tackle these demands while dealing with tough conditions like excessive walking, heavy lifting, and working near dangerous machinery. It’s no surprise that many warehouse operations struggle to hire and retain enough workers to keep things running smoothly. Warehouse labor turnover has hovered around 40% in recent years, and 17% of warehouse and storage workers are 55 or older.

Labor is now the main reason companies automate. In a Peerless Research Group study, 55% of warehouse and distribution operations named labor availability as their top reason for adopting robotics. By reducing the reliance on manual labor, warehouses can not only meet rising consumer expectations but also create safer and more sustainable operations to handle future growth.

In warehousing, some tasks are simply better suited for robots—especially order picking and sorting. These are among the most time-consuming and physically demanding tasks in a warehouse. A picker in a manual warehouse can walk 10 kilometers (about six miles) a day. This work can quickly become exhausting and doesn’t require much creativity, just a lot of time and energy. The more physically challenging and repetitive the task is, the less humans tend to want to do it—making it ideal for robots to handle.

To address this, many businesses are turning to automation, specifically robotic systems such as Automated Storage and Retrieval Systems (ASRS) and Autonomous Mobile Robots (AMR) to streamline operations and improve efficiency. These systems use robots to transport goods between storage racks and picking stations, where operators can quickly and accurately process orders. The result is minimal order errors, faster fulfillment, and improved customer satisfaction.

In these goods-to-person systems, robots take over the travel and the lifting, and people keep the work that needs a hand or a judgment call.

Automation creates roles in running, maintaining, and improving the system, and it raises the value of the roles that stay. In our survey of 400 US warehouse workers, 49% said they had received a pay increase thanks to automation, and 40% said it made a raise or promotion more likely.

Robotics is transforming workplaces by alleviating the physical strain of repetitive tasks and empowering employees to take on higher-value roles. With robots managing labor-intensive duties, employees can shift their focus to work such as:

• Process Improvement: Robotics has enabled businesses to allocate more employees to developing and implementing strategies that streamline operations, reduce waste, and boost productivity.
• Data Management and Analysis: Automation generates vast amounts of data, which must be analyzed to optimize performance. Someone has to read that data and act on it, whether that means rebalancing inventory or planning staff for a peak.
• Technical Training: As companies embrace automation, the need for employees trained in robotics management and maintenance continues to grow.  These roles call for knowledge of electronics, mechanics, and software, and they offer more room for pay growth than general warehouse work.
• Order Customization: The demand for personalized goods and packaging tailored to specific customer orders or branding is steadily increasing.
• Quality Assurance and Control: Inspecting products for defects and ensuring compliance with customer and regulatory standards is essential for successful operations, and more employees are often needed to manage this task effectively.

Workers who have used automation tend to agree. In the same survey, 80% said they did not oppose automated warehouses once they had worked in one. Those working with automation were also more than three times as likely to stay in their job longer as to leave early.

Robotic automation combines speed, density, and precision to improve operational performance and reduce costs. It also gives businesses a competitive edge by enhancing service quality, helping them attract and retain more customers.

Boosting Efficiency

Robotics significantly enhance throughput, exemplified by the Exotec^® Skypod^® system—a mobile ASRS that boosts throughput by up to 5x compared to manual operations. Its robots can retrieve any SKU from storage in under two minutes, enabling warehouses to meet growing consumer demands for faster delivery times. This efficiency is especially critical during peak seasons when operational speed is paramount. The result? Businesses process more orders accurately, boosting customer satisfaction and loyalty.

Maximizing Space

Many robotic systems use tall storage racks that go much higher than those in manual operations. Since robots handle the work, there’s no safety concern with accessing goods at greater heights. This allows warehouses to maximize vertical space, increasing storage density. As a result, operations can fit into smaller warehouses—an important advantage given the rising cost of real estate.

Reducing Errors

Human errors in picking can lead to costly returns and dissatisfied customers. Consider this: order picking accuracy of 99%, for 1,000,000 orders can translate to 10,000 unhappy customers. This can result in significant financial losses, damage to your brand reputation, and potential loss of customer loyalty. Robotic automation eliminates guesswork, ensuring precise and reliable order fulfillment.

Reducing Reliance on Manual Labor

Robotic automation reduces the need for manual labor by handling repetitive tasks like picking and packing orders, helping businesses overcome labor shortages and improve efficiency. It also enhances workplace safety and allows employees to focus on higher-value tasks like quality control and order customization that improves customer service.

Automation makes warehouse work safer by taking people out of the tasks that cause the most strain: heavy lifting, repetitive motion, and work at height or near moving equipment. Robots take on high-risk jobs, such as handling heavy loads and hazardous materials or operating in high-traffic areas. This significantly reduces common injuries like back strain and repetitive motion disorders. By redesigning workflows around robotics, employees can avoid awkward or taxing movements, promoting better ergonomics and long-term health.

Workers report the difference. In our survey, three in five workers who use automation reported fewer workplace injuries, and 59% reported less physical strain on their bodies.

Automation also allows robots to operate in environments that are too dangerous for humans—extreme temperatures, elevated storage areas, or other hazardous conditions—minimizing exposure to risks.  The benefit shows most at pea: 70% of workers said automation made them less stressed during busy periods.

The system design does, not the robots. Before installation, someone decides which flows to automate, where people work in the process, how stations are laid out, and how the system connects to your existing software and teams. Those choices set how much walking and lifting disappears, which roles you need to hire or train for, and how the change lands with the people already on your floor.

That is why it matters who designs the whole system. A traditional integrator assembles equipment from several vendors, and each vendor optimizes its own piece. As an OEM systems integrator, we design the full flow from inbound to outbound around the robots and software we build ourselves. The work left for people is then planned, rather than whatever falls in the gaps between systems.

Training belongs in that plan too. Workers in our survey who were trained on automation were nearly twice as likely to be optimistic about it as not. Training, communication, and a clear internal owner for the change are among the organizational risks that slow down implementation when they are left until the end.

The labor shortage is not easing, so for most operations the question is no longer whether to automate but how. That choice shapes more than throughput. It decides what your team spends its shifts doing, how safe that work is, and whether new workers see your warehouse as a place to build a career.

Start with the work you want your people doing, and plan the system around it. (To see how warehouse workers describe the change, read our Warehouse Worker Sentiment Report).

And, if you want to see how solutions like the Exotec Skypod system are transforming warehouse operations, go on our warehouse virtual tour.

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