Honeywell Strengthens Presence in Warehouse Automation
Honeywell Strengthens Presence in Warehouse Automation
Honeywell is targeting expansion of its warehouse automation business at a time when macro trends such as rising e-commerce shipments and persistent labor shortages are favorable for the market.
Analysts predict warehouse automation sales will grow this year following slowdowns in 2022 and 2023. Kevin Graebel, head of product and marketing for Honeywell's Intelligrated unit, notes that a large portion of warehouse operators are struggling to find sufficient labor, and therefore the need for automation will continue.
Honeywell operates through multiple segments, including industrial automation. Addressing warehouse automation needs is "critically important" to the company's growth strategy. Honeywell's Intelligrated unit aims to strengthen its service portfolio through a partnership with Chinese startup Hai Robotics. The partnership combines Hai's robotics technology with Honeywell's Momentum warehouse management software suite.
Demand for warehouse automation increased as e-commerce accelerated in the post-pandemic period. However, in 2022, demand for end-to-end warehouse automation technologies, excluding robots, declined in response to excess capacity built during the pandemic, falling e-commerce rates, and a broader slowdown in the global economy.
Nevertheless, major warehouse operators like Amazon continue to invest heavily in technology while managing labor challenges and handling high e-commerce volumes. Amazon announced it will begin testing Digit, a two-legged robot, for use in warehouse operations.
Key Takeaways:
Rising e-commerce shipments and labor shortages are positive trends for the warehouse automation market.
Honeywell is pursuing expansion of its warehouse automation business.
Honeywell's Intelligrated unit is expanding its services through a partnership with Hai Robotics.
Demand for warehouse automation increased post-pandemic but declined in 2022.
Major warehouse operators continue to invest in technology.