When decision-makers consider warehouse upgrades that will provide quick returns on investment and favorable margins, they often prioritize solutions that will solve pain points or support future growth. In other cases, these leaders want to remain competitive through strategic enhancements. Which upgrades should they consider and why?
Exosuits
Warehouse roles are physically demanding, making workers more likely to experience strains, sprains and other issues that could result in them needing time off. Training can reduce the likelihood, especially if people learn fundamentals, such as the correct way to lift heavy items. Some companies have also invested in exosuits for their team members. These wearable products enhance people’s natural capabilities, enabling them to do more before feeling tired. That is a crucial benefit because accident risks rise due to fatigue.
In one example, executives associated with an international grocery retailer had distribution center team members wear exosuits for a nine-week study. After a month of wearing a soft version while picking orders, the research demonstrated a 30% decrease in worker-reported discomfort and over 8% rise in productivity. Worker openness to the products was also high, with 81% willing to continue using them after the investigation was finished.
Specifics vary by brand, but many exosuits adjust to fit people within a particular height and weight range. Warehouse managers could have multiple workers use them on different shifts, allowing them to maximize the ROI with smaller initial investments.
Storage Racks
Well-organized warehouses streamline operations by enabling people to store more items, find them faster and prevent accidents that can occur because of clutter. Purchasing storage racks to accommodate the most frequently stored merchandise also pays off by reducing damage to these items.
Decision-makers in the United States hoping to maximize the associated financial incentives with such equipment should become familiar with Section 179 of the Internal Revenue Code, which allows parties to deduct the entire purchase price of software or equipment they begin using during a tax year. In 2025, the maximum deductible amount rose to $2.5 million, representing a 100% increase from 2024.
Leaders interested in storage racks should also consult with vendors to discuss their current layouts and the arrangements or models best suited for those environments. Using a digital twin or interior design tool can let them try different layouts before committing to one.
Robots-as-a-Service Solutions
Even as robots have become more accessible, not everyone can afford these warehouse upgrades. The robots-as-a-service model significantly increases affordability by offering subscription models that typically include expenses such as installations, training, maintenance and repairs. It is then easier for leaders to budget for these advanced machines. Some providers also do not require customers to begin paying until they see returns on investment or meet other stated goals with the technology.
One analysis suggests that the market will show an 18% compound annual growth rate from 2025 to 2035. The researchers identified numerous factors for the projected growth, including an increasing demand for automation, a desire for lower capital investment, and advancements in technology such as cloud computing, 5G and artificial intelligence. Challenges such as rising labor costs and widespread workforce shortages have also encouraged affected parties to think creatively about how to overcome these obstacles and anticipate future successes.
The RaaS model appeals to executives curious about warehouse robotics who want to explore the benefits before making more substantial, long-term investments. One robotics company offers a bipedal, human-sized robot designed for tasks and warehouses and other logistics facilities. This innovation can lift up to 55 pounds and do repetitive tasks that humans would rather avoid. The company offers this product on a subscription basis, and in 2024, the CEO stated that customers could expect a return on investment within less than two years.
Convert Plans to Meaningful Warehouse Upgrades
Moving beyond the planning phase for a particular investment is not always easy. Still, leaders usually feel more confident when choosing options that have proven successful for similar businesses and positions. These technologies are excellent starting points because they help users achieve meaningful results without incurring high up-front costs.
