Material Handling Equipment Manufacturers NAICS 333921, 333922, 333923, 333924

May 30, 2025 - Tariffs Impacting Warehouse Ops and Costs

• Tariffs on US imports are having a significant impact on warehouse operations and logistics costs, according to supply chain software provider ASC Software. As US businesses rushed to get ahead of President Trump’s tariffs they stockpiled inventory resulting in increased storage costs and demand for more warehouse storage space, particularly in regions close to major ports. Moreover, tariffs can result in supply chain delays, as goods are held up at customs, requiring warehouses to adjust their operations to accommodate these disruptions, per ASC. Inventory management plays an important role in mitigating the impact of tariffs. For example, warehouses can implement just-in-time (JIT) inventory systems to reduce the need for large stockpiles, thereby minimizing storage costs. Beyond selling equipment, makers of materials handling equipment can help customers navigate fluctuating trade policies and devise strategies to defray the cost of tariffs on their operations.
• Companies are adopting robotics and automation to help offset the ongoing warehouse labor shortage and meet the demands of the booming ecommerce channel, Modern Materials Handling (MMH) reports citing data from an Intralogistics 2025 Robotics Study conducted by Peerless Research Group (PRG). Intralogistics (or internal or warehouse logistics) involves the integration of advanced technology, like AI and automation, into the internal processes that take place in a warehouse or distribution center. Intralogistics solutions include automatic guided vehicles (AGVs), robotic picking systems, automated storage and retrieval systems (AS/RS), or humanoid robots to streamline material flow, speed up throughput, and improve accuracy and workplace safety. Between its first and fourth annual surveys PRG found a 46% increase in respondents who said they are already using one or more robots in their operations, with robotic integration having transitioned from a “future possibility” to a “present day imperative” for growing DCs and warehouses.

• Persistent labor shortages, ecommerce growth, and need to optimize current space are all pushing warehouse and distribution center operators to invest in automation, experiment with robotics, and find new ways to increase speed and efficiency, according to Modern Materials Handling’s 2025 Industry Outlook Survey. The poll of managers and personnel involved in the purchase decision process for materials handling equipment found that companies making investments say they’re spending on automation and technology (64%), forklifts and lift trucks (55%), storage equipment (36%), and technology information systems like warehouse management systems (WMS) and enterprise resource planning (ERP) platforms (32%). However, current economic uncertainty appears to be impacting spending on materials handling equipment, technologies, services and solutions, with 34% of companies saying it’s “business as usual” on the investment front, 43% of respondents taking a “wait-and-see” approach, and 23% holding off on investing altogether.
• Average spending on materials handling equipment is expected to rise this year, according to Modern Materials Handling’s 2025 Industry Outlook Survey of managers and personnel involved in making purchasing decisions. Over the next 12 months, companies surveyed say they plan to spend an average of nearly $402,000 on materials handling equipment and information systems solutions – up from about $329,000 in 2024. The survey found that 14% of organizations plan to spend $1 million to $2.5 million-plus, while nearly half (46%) are allocating anywhere from less than $25,000 up to $49,999. The majority of survey respondents (59%) say they’ll either be buying new or upgrading existing solutions. To maintain automated materials handling systems, 62% of companies rely on internal/in-house staff, 33% use both internal staff and outsourcing, and 17% outsource it, creating opportunities for equipment manufacturers to enter into service contracts with customers.