Is Your Warehouse Automation-Ready? It Is Now a Real-Estate Question
For years, warehouse automation was a decision tenants made after the lease was signed. That order is breaking down. Automation Ready, a new iO Insight report published together with Miebach, shows that across the Czech Republic, Hungary, Romania, Serbia and Slovakia, automation has become a real-estate strategy question, and the winners will be the buildings that can adapt. Here is a first look at what the research found.
The labour advantage is still there. The equation is not.
CEE remains cost-competitive, but Eurostat data cited in the report shows labour costs climbing steeply in all five countries since 2020. Wages are only the opening act: scarce skilled roles such as qualified forklift operators, difficult working environments and the need for operating continuity push the case for automation well beyond payroll.
Take cold storage. At -20°C, the report's field notes show, the labour equation changes again, and the expert's reasoning is worth reading in full.
Automation is a continuum, and logistics is already on it
Forget the image of a dark, lights-out warehouse full of robots. The report describes four levels of automation, and one expert makes the point that it can begin before a single robot enters the building. There is no universal answer on how far to go: the right level depends on throughput, company scale, planning horizon, property tenure and how predictable future operations are.
This is not a distant scenario. According to the IFR figures cited in the report, transportation and logistics account for 47% of professional service robot installations, more than twice the next application. That scale is why the authors treat automation as a current property issue, with power resilience, wireless coverage and floor tolerances moving into the base-build conversation.
When the technology decides the building
At higher levels of automation, technology and real estate become one design problem. The report walks through eight building factors, from clear height and floor design to fire protection, permitting, power and data, and several are hard to change later.
The most striking example from the field is footprint. In one case, a warehouse of approximately 5,000 sqm using conventional technology could be replaced by around 1,200 sqm with a more vertical automated solution. It is project-specific, as the authors stress, but it shows how automation can reshape land use and building strategy. What that means for the warehouses being built today is one of the report's central questions.
Is a 12-year payback ever a good idea, and how long can you wait?
One manufacturer in the research was weighing a 15,000-pallet automated warehouse and accepted a 12-year payback. For that business, it was an acceptable call. Whether the same logic holds for yours depends on what you can see about your own future, and on whether you own your building or rent it. The report sets out a simple decision matrix to help you place yourself.
Time matters too. A large automated warehouse can take roughly two and a half to three years from investment decision to completion, so a company waiting to see whether a competitor's system works can end up years behind. The report is not a cheerleader, though: proven technology beats prototypes, and humanoid robots remain something to watch, held back by speed, reliability and battery limits. It also looks at where the next wave of investment is heading, and at the financing models that could put automation within reach of more companies.
What is inside the full report
- 20 automation projects mapped across five countries, from e-commerce hubs to food production
- Three case studies with candid lessons from JYSK in Hungary, PepsiCo in Romania and Redcare Pharmacy in the Czech Republic, including what each would do differently next time
- The eight building factors that decide whether a warehouse is ready for automation
- A decision framework for matching the level of automation to your business and your lease
- Practical steps for occupiers, developers, and owners and investors
Download Automation Report: Rethinking Logistics Facilities Across CEE to see the full picture.
Blanka Vačkova
