Warehousing and logistics operators are under mounting pressure from persistent labour shortages, rising costs and growing demand for faster fulfilment. Automation adoption continues to accelerate globally, but the pace of investment differs significantly by country and region. Italy has taken a more targeted approach to encouraging automation investment through tax credit schemes for advanced machinery and robotics.
“Europe’s shift towards warehouse automation is being driven by a different set of pressures to other regions,” said Asaf Curelaru, Operations Director for UK & Ireland at Exotec. “For many operators, the priority is not only speed or scale. It is about improving efficiency and unit economics while dealing with persistent labour shortages and rising operating costs.”
Incentivising investment in Italy
Italy has taken a leading approach in Europe to incentivising investment in automation technologies, including advanced machinery and robotics. Through its Industry 4.0 and Transizione 4.0 programmes, organisations investing in automated solutions can claim tax credits against investment costs, with credits of up to 20% available on qualifying investments up to €2.5 million.
These programmes have helped make automation investment more attractive for businesses looking to modernise operations while responding to labour availability and productivity pressures.
“Labour availability is becoming one of the defining issues for warehouse operators in Europe,” Curelaru added. “In the UK, turnover remains high, and many businesses are finding it difficult to build stable, scalable warehouse teams. This makes automation increasingly relevant. It is not a standalone answer, but as part of a broader strategy to improve resilience, productivity and consistency.”
“Rising warehouse costs and the need for greater storage density are also key reasons businesses are investing in automation,” said Curelaru. “Automated systems can help operators improve throughput and make better use of existing warehouse space. However, the business case is often held back by the level of upfront investment required.”
Making the case for UK support
In the UK, government support for automation exists through broader mechanisms, but there is room for a more targeted conversation around automation adoption in warehousing and logistics.
“The UK’s limited targeted automation incentives risks leaving businesses at a competitive disadvantage. While other countries encourage automation, UK businesses are having to fund these investments themselves, making automation projects difficult to justify despite mounting labour pressures. The good news is that Italy has already shown what is possible. The UK has every opportunity to follow suit,” concluded Curelaru.
