As automation becomes increasingly integral to warehousing and distribution, operations professionals must understand the evolving relationship between traditional racking systems and modern automation technologies. In an episode of MHICast recorded at ProMat 2025, host Aubrey Stewart interviewed a panel of industry experts to unpack the critical issues around racking, automation, and the future of warehouse design.

Joining Stewart were three members of the Rack Manufacturers Institute (RMI):

Aprile, Edgy, and Oliver also presented RMI’s free, on-floor education seminar: “Pallet Racking Systems and Design for an Automated Future” at ProMat.

Traditional vs. Automated Racking: What’s the Difference?

Traditional racking systems, the backbone of warehousing, are relatively straightforward. Operators driving forklifts place pallets of product on static racks, eyeballing the placement of the pallet. These systems — because they rely heavily on visual estimation and manual handling — don’t require strict adherence to specific alignment tolerances

In contrast, automated systems demand significantly tighter, more precise tolerances. That’s because an automated shuttle doesn’t have the benefit of visual correction, explained Oliver.

“In a highly automated system, the computer sensors direct the equipment to take your pallet and bring it to a location. If the rack’s alignment is not perfect, the automated equipment could hit a rack or a beam,” he said.

These precision demands extend not only to the racking, continued Oliver. Automated systems also require precision in installation quality, floor flatness, and overall system planning.

Aprile added that European standards — particularly FEM tolerances — often exceed U.S. standards. This is driving domestic suppliers to meet higher benchmarks to remain competitive. “You’re talking about 30- to 40-foot racks with a deflection tolerance of under 10 millimeters,” he noted.

Building Blocks of a Successful Racking System

Designing an efficient racking and automation system starts with understanding operational requirements. Key factors include maximum and average loads, warehouse layout, forklift access — such as tunnels — and potential for future expansion. Aprile emphasized the importance of conservative structural engineering, especially in seismic zones. He also advised considering both hot-rolled and cold-formed steel based on durability and risk factors.

Material selection plays a crucial role as well, Aprile noted. “Cold-formed steel may offer cost advantages. However, it requires added protection against impacts — especially in manual systems — with accessories like column protectors,” he said.

Planning for Racking and Automation: Priorities and Pitfalls

Implementing automation is a complex process that requires long-term vision. Floor flatness, for example, is essential for automatic guided vehicles (AGVs), autonomous mobile robots (AMRs), and shuttle systems.

“Once a rack is installed, it’s extremely difficult to retrofit for automation,” Oliver warned. “Converting existing racking to an automated system is a big challenge. It often doesn’t work, because it requires dismantling, shimming, and reinstalling — and it still doesn’t achieve the tolerances required by the automation. That’s why many rack-based automated systems are greenfield projects.”

Edgy stressed the need for system integrators and rack engineers to gather accurate data from the outset. Building future proofing into the design ensures systems can evolve without total reinvestment.

“Know your end goal and plan for it,” Edgy said. “For instance, if the operation will be implementing AGVs into an automation system, the system designer needs to be aware of and plan for that.”

Is Automation Always the Answer?

Not necessarily. Automation is often best suited for environments with high throughput, expensive labor, limited space, or difficulty sourcing skilled workers. It also has multiple key requirements that operations frequently overlook, added Edgy. He cited power supply, WiFi capacity in the building, ease of maintenance, seismic concerns, and water supply for fire protection.

Cost justification based on reduced reliance on labor to maintain required throughput, however, remains the driving force behind most automation investments, Oliver noted.

“If you’re only moving two pallets per hour, automation doesn’t make sense. On the other hand, companies operating massive, fully automated facilities justify the investment due to severe labor shortages,” he explained.

The panel advised a phased approach to deploying automation. Start small, test semi-automated solutions, and build toward full integration. “It’s about scalability,” said Edgy. “Ease into it to understand your company’s appetite for automation.”

Real-World Trends and Applications

Current innovations in racking and automation focus on increasing density and throughput in pallet handling. While case handling remains harder to automate due to its variability and manual requirements, advances in this area are emerging, driven by labor costs and the need for efficiency.

Aprile and Oliver both highlighted the growing trend toward high-bay automated storage and retrieval systems (AS/RS). These systems maximize vertical space in land-constrained environments. This type of automation especially common in Europe, where land scarcity has forced vertical expansion. It’s a model North America is beginning to adopt — not because of property limitations, but rather due to intense labor shortages.

The Workforce Equation

The panel emphasized that, contrary to popular belief, automation does not eliminate jobs. Rather, it redefines them. For brownfield conversions, thoughtful implementation can reduce injuries, improve working conditions, and increase retention by creating more engaging jobs.

“Automation allows companies to repurpose employees into higher-value roles,” Edgy explained. “Automated systems need IT professionals, service technicians, and system managers. These are mechanical systems that require someone to maintain them. Ultimately, most companies implementing automation are going to operate more efficiently. That will allow them to afford higher wages to pay for repurposed employees.”

In many greenfield projects, there are no jobs to lose — automation fills a void, added Oliver.

“If you need 600 people to work across two shifts and there aren’t any in that market, there were no jobs to begin with,” he noted.

Final Advice: Do Your Homework

All three experts concluded with a common message: consult specialists, and don’t cut corners. “Get references. Know who you’re working with,” advised Oliver. “If you’re investing millions, make sure you’re doing it with the right partners.”

From structural standards to safety regulations, successfully deploying automation depends on deep industry expertise and careful planning. For help, RMI publishes “Considerations for the Planning and Use of Industrial Steel Storage Racks.” It includes guidance to help operations select the rack style that best supports their needs. Additionally, RMI members offer consultations, insights, and recommendations. For more information, visit mhi.org/rmi.