New Survey Finds Warehouses Struggling with Space, Labor, and Accuracy in 2025

100+ warehouse leaders highlight top operational pressures and strategies shaping the future of warehouse management.

WEXFORD, PA, UNITED STATES, September 9, 2025 /EINPresswire.com/ -- Warehousing leaders are facing one of the most complex operating environments in recent memory, with rising labor costs, space shortages, mounting customer demands, and lingering supply chain instability pushing facilities to their limits.

To better understand these pressures, Kardex Remstar conducted a survey on warehouse challenges, gathering responses from more than 100 warehouse leaders across North America in industries ranging from manufacturing and e-commerce to pharmaceuticals and logistics. The survey results were published in an article titled The Top 12 Warehouse Challenges: A Study of 100+ Warehouse Leaders. Facilities represented in the survey varied widely in scale, from less than 25,000 square feet to more than 500,000, with operations managing anywhere from hundreds to tens of thousands of SKUs.

The findings highlight the most urgent challenges shaping warehouse operations today and the strategies companies are adopting to stay competitive – including:
- Inventory control, space utilization, and pick accuracy remain the top three operational hurdles for warehouse leaders
- Labor-related pressures, including rising costs, workforce shortages, and employee retention, continue to impact daily performance
- External uncertainty such as tariffs and trade policy remains on the radar, though nearly half of respondents reported they are “not concerned” about global trade volatility
- Automation adoption is accelerating with 96% of survey participants saying automation plays a role in their long-term growth strategy

“These findings confirm what we hear every day from our customers—visibility, accuracy, and space optimization are at the heart of warehouse performance,” said Mark Dunaway, President of Kardex Remstar – Americas. “It’s also clear that automation has become a strategic necessity, not just a ‘nice to have.’ The right solutions not only address these challenges but also create competitive advantage by improving speed, accuracy, and overall efficiency.”

Inside the Challenges Warehouses Are Facing
- Inventory management: As SKU counts climb and customer expectations tighten, inventory control and visibility remain the number one pain point. 62.3% of respondents named inventory control as their top challenge, citing the ripple effects of errors, from missed orders to rework and lost customer trust.
- Space constraints: Nearly half (46.2%) of warehouse leaders said space limitations are constraining growth. Rising real estate costs and crowded facilities are forcing many to evaluate costly expansions or offsite storage, even while vertical space goes underutilized.
- Picking accuracy: Order fulfillment continues to be a make-or-break operation. 41.5% of respondents said maintaining pick accuracy is one of their hardest challenges, especially in e-commerce and high throughput environments where demand spikes can overwhelm manual processes.
- Labor costs and availability: While automation can’t erase workforce pressures, it can help facilities do more with fewer people. About one in six warehouse leaders named labor costs or shortages as a top challenge. Many reported longer onboarding times, higher wages, and difficulty retaining skilled workers,
all while accuracy and throughput targets rise.
- External pressures: Though tariffs, supply chain volatility, and global trade uncertainty remain factors, survey respondents were surprisingly pragmatic. Half said they were “not concerned” about trade shifts, likely reflecting the resilience they’ve built into operations through better inventory strategies and
automation.

The Impact of Automation
While the survey highlights significant operational challenges, it also shows how warehouse leaders are responding.
Among Kardex Remstar customers:
- 46% reported better space utilization after adopting automation
- 56% are scaling picking speed with the same team size (average 24 or less people)
- 59% achieved measurable ROI within six months
- 41.5% saw improved inventory accuracy
- Consistently pointed to softer benefits such as easier onboarding, improved ergonomics, and stronger employee retention

About Kardex
Kardex is a leading global partner for intralogistics solutions in an attractive and growing market. The Group offers premium automated products, standardized systems and lifecycle services that guarantee high availability and low total cost of ownership. Kardex provides an intelligent entry into automation with its dynamic storage and retrieval systems, offers integrated material handling systems, small parts storage systems and automated high-bay warehouses and acts as a global AutoStore™ partner, offering flexible and modular storage and order fulfillment solutions. The Group employs around 2,500 people in over 30 countries. Kardex Holding AG has been listed on the SIX Swiss Exchange since 1989. For more information visit: www.kardex.com.

Christina Dube
Kardex
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