As the UK economy navigates the impacts of the 2024 Autumn Budget, businesses – especially those in manufacturing and logistics – are propelled toward greater digital and physical transformation. The Budget’s support for automation across industries underscores The Government’s recognition of automation as a driver of efficiency, productivity, and long-term sustainability. At Industore, we see these measures reinforcing the necessity of advanced storage solutions like our Lean-Lifts and Rotomats for British businesses. Here’s why the Budget makes the business case for automation more compelling than ever.
Investment Incentives for Automated Storage and Retrieval Systems:
One of the Budget’s standout features is the continuation of full expensing for capital investments. This policy allows businesses to deduct the full cost of machinery and equipment from taxable profits, easing the financial burden of automating operations. For every £1 invested in machinery, businesses can effectively reclaim 25p in corporation tax. You can read more about this in our recent news story on the topic here. The initiative offers an opportunity to offset expenses and drive long-term efficiency and throughput.
The Hänel Lean-Lifts top 5 Features and Benefits
- Space Savings: Efficiently store inventory vertically in a fraction of your footprint
- Inventory Protection: PIN protection, fingerprint scanning, and more protects against unauthorised access
- Integration: Smart technologies seamlessly integrate with existing IT systems, or use existing, in-built options
- Flexibility: Adaptable to your changing needs, ensuring future-proof storage solutions
- Resource Saving: Improved efficiency and higher throughput streamlines operations, reducing overheads and improving throughput
The Hänel Rotomats top 5 Features and Benefits
- Greater Throughput: Utilising the Ferris wheel motion, the Rotomat returns requested items automatically within seconds, to the correct the ergonomic access point
- Eliminate Manual Search: Bring the correct items to your picker quickly, improving selection speed, eliminating picking errors, and enhancing security through automated processes
- Space-Saving Design: Reclaim and repurpose your space, using vertical height on a small footprint thanks to the Rotomat’s elegant and compact design
- Integration: Seamlessly integrate your Rotomat with existing IT systems or leverage the built-in options for a cohesive storage management and warehouse management system
- Resource Saving: Remove repetitive, manual tasks and reduce costly errors by optimising your workflow and automating processes, while also reducing your storage footprint
The Made Smarter Programme and Industore
With funding for the Made Smarter programme doubled to £16 million, the Budget provides robust support for SME transformation. This programme enables SMEs to adopt technologies, including automation solutions that drive productivity and resilience. Adoption not only streamlines processes but enhances accuracy, as automated systems reduce human error and allow companies to maintain 100% inventory control.
Ross Powell, Industore’s Managing Director: “Industore’s automated storage systems, (such as our Lean-Lift and Rotomats), address common SME challenges like excessive search time, under or overordering stock, and misplaced inventory – to name a few. By aligning operations with The Government’s upgrade agenda, businesses can boost productivity, withstand economic pressures, and gain a competitive advantage.”
While the Budget introduced incentives, it also presents challenges to business. Employer National Insurance Contributions (NICs) is set to rise from 13.8% to 15% in 2025, and as a result, staffing costs will increase.
Ross Powell continues: “Many businesses will now seek creative workaround to mitigate these costs – and automation provides a viable path to achieve this. By adopting AS/RS, businesses can maintain or even increase productivity with fewer resources, minimising the impact of higher NICs, and protecting profitability.”
Our Pneumatics case study demonstrates two Hänel l Lean-Lifts, performing the task of six pickers – now just requiring one operator. This of course isn’t an isolated case. It’s commonplace today for picking or warehouse staff to be repurposed into other parts of businesses, once Lean-Lifts have been installed.
The Budget reflects a broader goal: transforming the UK’s industrial landscape with high-tech, sustainable industries. Automation plays a critical role in this vision, as ASRS optimise resource allocation, and support energy-efficient operations. Our solutions enable businesses to reduce their building footprint, while increasing storage capacity. Additionally, our lifts will decrease energy consumption – most obviously with with costs associated with heating, lighting, and rent – for example.
Our lifts, and broader solutions do more than streamline operations. They build resilience. The Government’s support for transformation and industrial growth will drive AS/RS adoption across the UK, as companies seek to maximise their competitiveness and contribute to a sustainable economy. For UK companies, the case for adopting ASRS has never been stronger. The Budget provides both the financial incentives and strategic support to make automation a reality – while driving down the growing costs associated to expansion. Don’t get left behind.
Improve Productivity | Reduce Overheads | Optimise Space
