Warehouse automation projects are spurring demand for industrial work platforms as facilities require more space and access to complex material handling systems.
Victoria Kickham started her career as a newspaper reporter in the Boston area before moving into B2B journalism. She has covered manufacturing, distribution and supply chain issues for a variety of publications in the industrial and electronics sectors, and now writes about everything from forklift batteries to omnichannel business trends for DC Velocity.
Industrial work platforms haven’t changed much in the past 10 or 20 years, but that doesn’t mean these warehouse staples should be an afterthought in today’s modern workspaces. On the contrary, as warehouses and distribution centers (DCs) become more automated, experts say demand is on the rise for steel support structures that can be integrated with the latest material handling technologies.
“The trend toward automation has really increased the need for platforms—and we’re seeing it at a much larger scale,” says John Murphy, key account sales manager for Waukesha, Wisconsin-based Wildeck, which makes steel work platforms, industrial lifts, and related material handling equipment. “[Today’s] DCs are huge; we’re talking a million square feet sometimes. The larger footprint creates a greater need for our projects.”
That's because work platforms, also called mezzanines, can support personnel and the increasing array of automated equipment in those large facilities while also providing access to the equipment and systems for service and routine maintenance.This is especially helpful in e-commerce environments, where companies are storing more products, processing orders at a higher rate, and striving to get packages out the door faster than ever before.
“Companies have [high] throughput goals, and automation is helping with that,” Murphy adds, emphasizing the growing demand for platforms that support conveyors, automated storage and retrieval systems (AS/RS), and robotic picking solutions that are augmenting human labor in the warehouse. “In many cases, you’re dealing with a small labor pool, so it’s important to automate. I definitely see this as a trend—and something that is driving growth in our business.”
MAKING SPACE FOR WORK
Mezzanines have long been used for basic needs in the warehouse: providing extra space for shelving, connecting catwalks throughout a facility, or supporting more racking solutions, including pick modules. They continue to fill those roles, simultaneously helping companies take advantage of ceiling height to maximize storage space and create clearance for work to be done underneath. Today, mezzanines and platforms are commonly used to create multilevel pick zones in a warehouse or DC and to support conveyors throughout a facility. And increasingly, they are being used to support robotic picking operations, especially those that incorporate autonomous mobile robots (AMRs).
Daniel Aguirre, sales manager for steel rack manufacturer Nucor Warehouse Systems, offers one example: Small AMRs that resemble Kiva- or Roomba-style robots are often combined with mobile shelving units to form a goods-to-person picking system, he says. The robots are programmed to move orders directly to workers by traveling through the aisles of a warehouse storage area, identifying the correct shelf of products, positioning themselves under the shelf, and then transporting the shelf to a picking station, where human workers fill orders. Aguirre explains that many companies are finding it easy to add mezzanines to the system to support the robots and shelf units, opening up floor space below for additional picking and other tasks.
“[This is] where we’re headed, and what we’re seeing more of,” Aguirre explains.
French warehouse automation company Scallog says customers are beginning to use its goods-to-person AMR solution in this way, creating up to 30% more picking space in a facility and tripling worker productivity. The system can be implemented either above or below a mezzanine: Scallog’s “Boby” robots, shelving units, and picking stations can be housed either on the main floor (with storage above, on the mezzanine) or on the mezzanine itself, with storage and additional picking space below. In both cases, the two levels are connected by a vertical conveyor. Scallog has implemented about a dozen such solutions to date, according to Remi Badaroux, the company’s international business developer.
Variations of this configuration are widely used in large DCs, primarily due to their scalability and because they don’t require major infrastructure changes. The equipment doesn’t need to be anchored to the ground, so the system can be installed easily using the space-saving platforms and mezzanines.
“This is definitely a growing space, especially with labor costs going up and infrastructure costs going up,” Aguirre says, referring to automation in general and the accompanying demand for racking, storage, and platforms to support it. “The return on the investment in automation systems is more validated [today]. So we are seeing more Fortune 500 companies looking to implement these systems in the next one to five years.”
PROVIDING ACCESS FOR MAINTENANCE
Work platforms are also commonly used to provide maintenance access to machinery and equipment in a facility, especially in manufacturing environments. The arrival of automated high-tech material handling systems is making this a more common application in the warehouse and DC as well. Automated storage and retrieval systems are a case in point: These high-density storage solutions are a mixture of software, controls, robotics, and hardware that shuttle products to picking stations for order fulfillment. Although they are programmed to run like a well-oiled machine, the systems require regular maintenance and occasional troubleshooting. And because the systems can take up considerable vertical space in a building—the grid-based AutoStore AS/RS can stand as high as 25 feet, for instance—they need support structures that can grant access to technicians and provide workspace for system monitoring.
“With some of the robotic systems we’re seeing—like AutoStore—our platforms are primarily service-access platforms,” Murphy, of Wildeck, explains. “We’ve done a lot of these recently, along with more comprehensive conveyor layouts.”
Mezzanines are frequently used to support conveyors and other equipment running through a warehouse or DC, for both safety and space-saving reasons, Murphy adds. They can be custom-built to support a project—some can be thousands of square feet in size—and they essentially put the conveyor system above the main floor of a facility, creating more workspace below and keeping workers from coming into contact with the machinery. Only those employees who need to access the automated equipment can get to it.
“Our systems support conveyors, scanners, sortation systems—and we’re seeing so much more of it, especially since Covid,” Murphy says, pointing to the acceleration of e-commerce over the past three years and the resulting demand for more automation in those ever-larger DCs that companies like Amazon, Walmart, and Target have built.
Wildeck recently moved into a 330,000-square-foot headquarters and manufacturing facility in Waukesha—which is three times the size of the company’s previous facility—to accommodate growing demand for its products.
“We’re at an exciting time in our industry,” Murphy says. “Many companies are working to set themselves up for future demand, and we see the automation trend continuing to grow [as a result]. And we’re happy to be a part of it.”
Parcel carrier and logistics provider UPS Inc. has acquired the German company Frigo-Trans and its sister company BPL, which provide complex healthcare logistics solutions across Europe, the Atlanta-based firm said this week.
According to UPS, the move extends its UPS Healthcare division’s ability to offer end-to-end capabilities for its customers, who increasingly need temperature-controlled and time-critical logistics solutions globally.
UPS Healthcare has 17 million square feet of cGMP and GDP-compliant healthcare distribution space globally, supporting services such as inventory management, cold chain packaging and shipping, storage and fulfillment of medical devices, and lab and clinical trial logistics.
More specifically, UPS Healthcare said that the acquisitions align with its broader mission to provide end-to-end logistics for temperature-sensitive healthcare products, including biologics, specialty pharmaceuticals, and personalized medicine. With 80% of pharmaceutical products in Europe requiring temperature-controlled transportation, investments like these ensure UPS Healthcare remains at the forefront of innovation in the $82 billion complex healthcare logistics market, the company said.
Additionally, Frigo-Trans' presence in Germany—the world's fourth-largest healthcare manufacturing market—strengthens UPS's foothold and enhances its support for critical intra-Germany operations. Frigo-Trans’ network includes temperature-controlled warehousing ranging from cryopreservation (-196°C) to ambient (+15° to +25°C) as well as Pan-European cold chain transportation. And BPL provides logistics solutions including time-critical freight forwarding capabilities.
Terms of the deal were not disclosed. But it fits into UPS' long term strategy to double its healthcare revenue from $10 billion in 2023 to $20 billion by 2026. To get there, it has also made previous acquisitions of companies like Bomi and MNX. And UPS recently expanded its temperature-controlled fleet in France, Italy, the Netherlands, and Hungary.
"Healthcare customers increasingly demand precision, reliability, and adaptability—qualities that are critical for the future of biologics and personalized medicine. The Frigo-Trans and BPL acquisitions allow us to offer unmatched service across Europe, making logistics a competitive advantage for our pharma partners," says John Bolla, President, UPS Healthcare.
The supply chain risk management firm Overhaul has landed $55 million in backing, saying the financing will fuel its advancements in artificial intelligence and support its strategic acquisition roadmap.
The equity funding round comes from the private equity firm Springcoast Partners, with follow-on participation from existing investors Edison Partners and Americo. As part of the investment, Springcoast’s Chris Dederick and Holger Staude will join Overhaul’s board of directors.
According to Austin, Texas-based Overhaul, the money comes as macroeconomic and global trade dynamics are driving consequential transformations in supply chains. That makes cargo visibility and proactive risk management essential tools as shippers manage new routes and suppliers.
“The supply chain technology space will see significant consolidation over the next 12 to 24 months,” Barry Conlon, CEO of Overhaul, said in a release. “Overhaul is well-positioned to establish itself as the ultimate integrated solution, delivering a comprehensive suite of tools for supply chain risk management, efficiency, and visibility under a single trusted platform.”
Artificial intelligence (AI) and data science were hot business topics in 2024 and will remain on the front burner in 2025, according to recent research published in AI in Action, a series of technology-focused columns in the MIT Sloan Management Review.
In Five Trends in AI and Data Science for 2025, researchers Tom Davenport and Randy Bean outline ways in which AI and our data-driven culture will continue to shape the business landscape in the coming year. The information comes from a range of recent AI-focused research projects, including the 2025 AI & Data Leadership Executive Benchmark Survey, an annual survey of data, analytics, and AI executives conducted by Bean’s educational firm, Data & AI Leadership Exchange.
The five trends range from the promise of agentic AI to the struggle over which C-suite role should oversee data and AI responsibilities. At a glance, they reveal that:
Leaders will grapple with both the promise and hype around agentic AI. Agentic AI—which handles tasks independently—is on the rise, in the form of generative AI bots that can perform some content-creation tasks. But the authors say it will be a while before such tools can handle major tasks—like make a travel reservation or conduct a banking transaction.
The time has come to measure results from generative AI experiments. The authors say very few companies are carefully measuring productivity gains from AI projects—particularly when it comes to figuring out what their knowledge-based workers are doing with the freed-up time those projects provide. Doing so is vital to profiting from AI investments.
The reality about data-driven culture sets in. The authors found that 92% of survey respondents feel that cultural and change management challenges are the primary barriers to becoming data- and AI-driven—indicating that the shift to AI is about much more than just the technology.
Unstructured data is important again. The ability to apply Generative AI tools to manage unstructured data—such as text, images, and video—is putting a renewed focus on getting all that data into shape, which takes a whole lot of human effort. As the authors explain “organizations need to pick the best examples of each document type, tag or graph the content, and get it loaded into the system.” And many companies simply aren’t there yet.
Who should run data and AI? Expect continued struggle. Should these roles be concentrated on the business or tech side of the organization? Opinions differ, and as the roles themselves continue to evolve, the authors say companies should expect to continue to wrestle with responsibilities and reporting structures.
Shippers today are praising an 11th-hour contract agreement that has averted the threat of a strike by dockworkers at East and Gulf coast ports that could have frozen container imports and exports as soon as January 16.
The agreement came late last night between the International Longshoremen’s Association (ILA) representing some 45,000 workers and the United States Maritime Alliance (USMX) that includes the operators of port facilities up and down the coast.
Details of the new agreement on those issues have not yet been made public, but in the meantime, retailers and manufacturers are heaving sighs of relief that trade flows will continue.
“Providing certainty with a new contract and avoiding further disruptions is paramount to ensure retail goods arrive in a timely manner for consumers. The agreement will also pave the way for much-needed modernization efforts, which are essential for future growth at these ports and the overall resiliency of our nation’s supply chain,” Gold said.
The next step in the process is for both sides to ratify the tentative agreement, so negotiators have agreed to keep those details private in the meantime, according to identical statements released by the ILA and the USMX. In their joint statement, the groups called the six-year deal a “win-win,” saying: “This agreement protects current ILA jobs and establishes a framework for implementing technologies that will create more jobs while modernizing East and Gulf coasts ports – making them safer and more efficient, and creating the capacity they need to keep our supply chains strong. This is a win-win agreement that creates ILA jobs, supports American consumers and businesses, and keeps the American economy the key hub of the global marketplace.”
The breakthrough hints at broader supply chain trends, which will focus on the tension between operational efficiency and workforce job protection, not just at ports but across other sectors as well, according to a statement from Judah Levine, head of research at Freightos, a freight booking and payment platform. Port automation was the major sticking point leading up to this agreement, as the USMX pushed for technologies to make ports more efficient, while the ILA opposed automation or semi-automation that could threaten jobs.
"This is a six-year détente in the tech-versus-labor tug-of-war at U.S. ports," Levine said. “Automation remains a lightning rod—and likely one we’ll see in other industries—but this deal suggests a cautious path forward."
Editor's note: This story was revised on January 9 to include additional input from the ILA, USMX, and Freightos.
The overall national industrial real estate vacancy rate edged higher in the fourth quarter, although it still remains well below pre-pandemic levels, according to an analysis by Cushman & Wakefield.
Vacancy rates shrunk during the pandemic to historically low levels as e-commerce sales—and demand for warehouse space—boomed in response to massive numbers of people working and living from home. That frantic pace is now cooling off but real estate demand remains elevated from a long-term perspective.
“We've witnessed an uptick among firms looking to lease larger buildings to support their omnichannel fulfillment strategies and maintain inventory for their e-commerce, wholesale, and retail stock. This trend is not just about space, but about efficiency and customer satisfaction,” Jason Tolliver, President, Logistics & Industrial Services, said in a release. “Meanwhile, we're also seeing a flurry of activity to support forward-deployed stock models, a strategy that keeps products closer to the market they serve and where customers order them, promising quicker deliveries and happier customers.“
The latest figures show that industrial vacancy is likely nearing its peak for this cooling cycle in the coming quarters, Cushman & Wakefield analysts said.
Compared to the third quarter, the vacancy rate climbed 20 basis points to 6.7%, but that level was still 30 basis points below the 10-year, pre-pandemic average. Likewise, overall net absorption in the fourth quarter—a term for the amount of newly developed property leased by clients—measured 36.8 million square feet, up from the 33.3 million square feet recorded in the third quarter, but down 20% on a year-over-year basis.
In step with those statistics, real estate developers slowed their plans to erect more buildings. New construction deliveries continued to decelerate for the second straight quarter. Just 85.3 million square feet of new industrial product was completed in the fourth quarter, down 8% quarter-over-quarter and 48% versus one year ago.
Likewise, only four geographic markets saw more than 20 million square feet of completions year-to-date, compared to 10 markets in 2023. Meanwhile, as construction starts remained tempered overall, the under-development pipeline has continued to thin out, dropping by 36% annually to its lowest level (290.5 million square feet) since the third quarter of 2018.
Despite the dip in demand last quarter, the market for industrial space remains relatively healthy, Cushman & Wakefield said.
“After a year of hesitancy, logistics is entering a new, sustained growth phase,” Tolliver said. “Corporate capital is being deployed to optimize supply chains, diversify networks, and minimize potential risks. What's particularly encouraging is the proactive approach of retailers, wholesalers, and 3PLs, who are not just reacting to the market, but shaping it. 2025 will be a year characterized by this bias for action.”