Why Flexibility Matters When Navigating the Tariff Turbulence

The warehouse automation industry is entering a period of uncertainty as new tariffs are introduced, impacting global supply chains. At Locus, we’re watching this development closely, not just because of how it impacts us but also because of how it affects YOU.

The Interact Analysis report, “Trump’s Tariffs: Six Key Effects on the Warehouse Automation Market,” outlines six effects of the new tariffs. The message is clear: Customers are rethinking capital expenditures, supply chains are shifting, and confidence in long-term fixed automation investments is wavering. One critical factor stands out: the migration to the 3PL channel. 

As tariffs complicate supply chains, companies are increasingly likely to outsource operations to 3PL providers with expertise in navigating trade policy changes. This shift is expected to accelerate automation adoption among 3PLs.

Given the diverse customer base and varied SKU profiles managed by 3PLs, these firms typically prefer flexible automation solutions such as person-to-goods autonomous mobile robots. Locus is uniquely positioned to assist 3PL providers in managing these uncertainties through our flexible, scalable automation solutions.

The proposed 25% steel and aluminum tariff makes fixed automation more expensive and disrupts ROI calculations for fixed warehouse infrastructure systems. This is a tough pill for companies relying on steel-intensive fixed automation. However, at Locus, we offer an alternative path designed for flexibility, agility, and low dependency on metals.

Our mobile robot solution doesn't rely on steel racking or fixed infrastructure, which means faster deployment, lower capital risk, and no sticker shock. In this period of uncertainty, it’s more important than ever to be flexible with your warehouse automation. 

Here’s what we see as the effects of the tariffs and how we help:

• Longer Sales Cycles: Customers are hesitant, and volumes may fluctuate. That’s why we're working closely with our customers to tailor solutions that scale with their needs with no significant CapEx required.
• Movement to 3PLs: As more companies turn to 3PLs to navigate supply chain changes, Locus is uniquely positioned to support their dynamic, SKU-heavy environments with flexible automation.
• Expansion of Local Fulfillment Operations: As companies eye warehouse space in their local geographies, we’re ready to support fast, scalable deployments that meet tight go-live timelines.

These moments test business models. But they also present opportunities for those ready to act. We are having partner-centric conversations to help our customers navigate today’s complexity with clarity and confidence.

Warehouse leaders don’t need to pause progress. With the right partner, you can keep moving forward even when the path ahead looks uncertain.

Feel free to reach out to me: [email protected]