Over 85% of UK fulfilment warehouses are expected to be automated by 2030. Major brands such as Ocado and John Lewis are already automating a large proportion of their fulfilment and moving with the shift as they integrate AI and robotics to their systems.[1] A new standard for operational speed and efficiency is being set. But do their real estate landlords keep up with these demands?
Automation brings undeniable advantages: faster order processing, improved accuracy and the ability to scale operations rapidly. Robotics, AI-driven inventory management, and advanced conveyor systems are transforming workflows and freeing up staff to focus on higher-value tasks. But the path to fully automated facilities isn’t always straightforward. As Stuart McCallion from SEGRO noted at the recent Bisnow UK Industrial and Logistics Transformation event, automation is complex and power-hungry, requiring careful planning around infrastructure, robotics integration, and future adaptability.
The reality is that automation does not always work perfectly the first time. Developers and operators must anticipate challenges and do what they can to plan for them. This includes having reliable connectivity to underpin industrial spaces and building up a tech stack that works to keep automations running smoothly.
One common misconception is that automation means eliminating the workforce entirely. In truth, it is about evolution and agility. Automation enables staff to transition into more strategic roles, supporting a more engaged and resilient workforce. However, buildings must be designed to adapt: what works for a fully automated occupier today may not suit the next. For example, a company that does automate away a significant proportion of its workforce might not need extensive parking, but future occupiers could have very different requirements.
That’s why forward-thinking developers are building flexibility into their spaces from the ground, ensuring that facilities can accommodate both current automation needs and future changes in occupier requirements. As Oliver Winchcombe (Pannattoni) pointed out, industrial properties should allow occupiers to evolve their automation strategies over time, ensuring long-term retention and satisfaction.
Developers who stand out are those who actively help tenants with automation fit-outs and even support operational investments. Kris Britland (Mirastar) highlighted how providing dynamic services and funding options for automation upgrades can differentiate a property and foster lasting partnerships.
While automation often requires significant upfront capital expenditure, it is a win-win: occupiers benefit from improved efficiency and lower operating costs, while developers/ landlords see increased asset value and long-term stability.
With warehouse automation continuing to grow, now is the time for industrial businesses to embrace this transformation. At NCG, we deliver the digital infrastructure and smart solutions that make automation seamless, covering everything from robust site connectivity to intuitive space management platforms.
Ready to future-proof your industrial operations? Talk with us today to see how NCG can support your automation journey and keep your industrial site ahead of the curve.
[1] https://ecommercenews.uk/story/uk-fulfilment-warehouses-85-automated-by-2030-study-finds
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