The warehouse automation landscape has undergone more transformation in the past five years than in the previous 25, fundamentally altering how distribution facilities must be designed and operated.
Sean Ledbury, who has recently become Director at Prological after earlier roles at Swisslog and Dematic, highlights a key challenge facing the industry: the growing disconnect between existing and spec-built warehouse infrastructure and the demanding requirements of modern automated systems.
The acceleration in e-commerce and modern distribution requirements has left many businesses with facilities that were previously state-of-the-art, now completely inadequate for automation integration.
Requirements Modern Warehouses Must Meet
There are many considerations for automation-readiness. Sean identifies five requirements that define modern automation-ready warehouses:
Vertical Capacity and Structural Precision: Modern automation systems can utilise vertical space up to 50 metres on a single level, compared to the 8-9 metre ceiling heights that were standard decades ago. This vertical expansion demands precise aisle tolerances and floor specifications measured in millimetres rather than centimetres. Floor flatness has become critical because robotics and automated picking systems require precise navigation paths and must accommodate equipment weights that far exceed those of traditional racking systems.
Robust Power Infrastructure: While standard grid connections are adequate for basic automation solutions, more energy-intensive automated systems require robust power infrastructure, often with backup power, as the mission-critical nature of these systems means power failures can halt entire operations.
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Advanced Connectivity Systems: High-speed, reliable data communication systems must provide comprehensive coverage within buildings and seamless integration with external networks. This digital infrastructure supports real-time inventory management, predictive maintenance systems, and the sophisticated software platforms that orchestrate modern automated operations.
Environmental Controls: Modern automated systems impose strict climate requirements that extend beyond traditional warehousing needs. Robotics typically struggle in high dust, high humidity, and high temperature environments, necessitating climate-controlled facilities in some cases that maintain optimal operating conditions for both equipment and stored goods.
Strategic Location Access: While traditional distribution centres were often built close to CBDs where land was readily available, modern facilities require seamless access to highways and intermodal hubs and the available land at an equitable price point in which to build.
“Connectivity to road, rail, and air transport – which was previously a bonus – is now infrastructure that’s almost as important as the building itself.”
The Spec Building Challenge
The most significant disconnect in today’s market stems from what Sean identifies as the “spec building” problem. Developers continue to construct standardised warehouse facilities without considering specific automation requirements, typically building to ceiling heights of 13-14 metres with standard slab specifications.
“When automation is later introduced, either the cost of storage becomes significantly greater, or you need to change the slab to support the automation, which drives up costs or, worse, makes the building unsuitable.”
This mismatch forces businesses into expensive retrofitting projects or compels them to seek greenfield developments, both of which carry substantial cost premiums. The financial impact extends beyond immediate construction costs, as it has a flow-on effect for timelines, operational disruption, and the opportunity cost of delayed automation benefits.
Retrofit or Relocate
Many existing warehouses simply weren’t built with automation in mind, leaving companies facing a critical decision: attempt to retrofit their current facility or relocate to a purpose-built building.
The financial implications of this choice are substantial. Sean estimates that relocating existing operations typically adds 15-30% to project costs and extends timelines by a similar percentage.
For businesses caught in this situation, the strategic importance of getting the next decision right cannot be overstated. The principle of ‘measure twice, cut once’ applies particularly well to warehouse infrastructure decisions, as the cost of making wrong choices compounds over the entire lifecycle of the facility, potentially spanning decades.
The Consultation Process
When customers recognise that their automation vision exceeds their facility’s capabilities, Sean advocates for a structured approach beginning with what he terms a “reality check.” This assessment uncovers all limitations of existing buildings before any implementation planning begins.
“Customers often start with great enthusiasm about fixing all their current problems, only to discover months down the track that the building height is insufficient, floors can’t bear the loads, or there isn’t adequate power infrastructure,” he explains.
Following the initial assessment, a comprehensive impact analysis evaluates available technologies and potential solutions. This might involve changing equipment specifications, modifying building infrastructure, or, in some cases, relocating to a more suitable facility. Sean’s preference remains clear: “If there were an unlimited budget, I would always prefer to design the building around the automation rather than trying to shoehorn automation into an existing building. However, it is a case-by-case basis, and we can only know the answer once we go under the hood and fully understand the vulnerabilities of an organisation.”
The process culminates in a financial analysis comparing all viable options, including their respective returns on investment. This analysis must incorporate future-proofing considerations to ensure facilities remain relevant throughout their entire lifecycle.
What does a warehouse of the future look like?
Energy infrastructure tops Sean’s list of future requirements, driven by Australia’s soaring power costs and automation’s intensive demands. “We’re seeing businesses struggle with energy bills that have doubled in some cases, while their automation systems require 24/7 power reliability,” he explains. Future warehouses will require integrated energy systems including solar installations, battery storage, and potentially micro-grid capabilities to manage increasingly complex power demands.
Electric vehicle charging infrastructure is another emerging requirement that requires strategic planning today. Sean recommends preparing for future needs even when current operations don’t require it.
“Design the electrical capacity now, even if you’re not installing charging stations immediately – retrofitting power infrastructure later costs significantly more.”
This forward-thinking approach extends to hydrogen fuel cells and other emerging technologies that may become standard within the next decade.
Data connectivity continues to evolve at an unprecedented pace, driven by artificial intelligence and real-time decision-making requirements. Future facilities must accommodate not just current data needs but the exponential growth in information processing that AI systems demand, including the associated HVAC requirements for cooling high-performance computing equipment.
Despite the focus on automation, Sean emphasises that future warehouse design must prioritise human interface considerations.
“The person you’re trying to hire can choose between your 1980s-style warehouse or Amazon’s climate-controlled facility with ergonomic workstations and natural lighting – it’s not a difficult choice for them,” he says.
The human-focused transformation seen in office environments over the decades is now catching up to warehouse design. The facilities that can attract and retain quality staff while integrating seamlessly with automated systems will have a competitive advantage.
Overall, the transformation toward tech-ready warehouses requires more than infrastructure investment; it demands strategic thinking about how automation integrates with broader business objectives.
For businesses navigating this, the cost of building automation-ready infrastructure from the outset is invariably lower than the cost of retrofitting. More importantly, facilities designed with automation in mind from conception create competitive advantages that compound over decades of operation.
Prological Director, Sean Ledbury has 35 years experience in automation, having previously worked for companies like Swisslog and Dematic.
