Modern Materials Handling published its 2026 Industry Outlook Survey showing that warehouse and materials-handling investment remains mixed in the near term but is more confident over a two-to-three-year horizon. Sixteen percent of respondents said the economy had little or no impact on plans, while 24 percent were holding off on investments and 42 percent were taking a wait-and-see stance. Among those still spending, the highest-priority buckets were information systems such as WMS (59 percent), lift trucks (40 percent), automation technologies (41 percent), storage (40 percent), and conveyors and sortation (38 percent).
Average planned spend over the next twelve months rose to about $542,000 from under $402,000 a year earlier, and 42 percent now expect materials-handling spending to increase over the next two to three years versus 35 percent last year. AMR and AGV current use climbed to 16 percent from 10 percent, with another 27 percent planning to evaluate them within one to two years. Industrial robot use rose to 21 percent from 13 percent.
Top AMR/AGV applications cited were storage (42 percent), each pick-and-place (31 percent), bin picking (28 percent), and goods-to-person fulfillment (27 percent). Interest in WCS software increased eight points to 19 percent, and LMS interest rose five points. Safety, growth, cost containment, capital availability, and labor availability remain the leading operational challenges.
The survey also recorded rising interest in automated KPI generation for inventory, fulfillment cost, and other metrics, plus greater use of 3PL services. Consultants noted that companies evaluating new DCs and manufacturing layouts now routinely include AMR, AGV, and piece/case/pallet automation options because labor reduction and throughput remain the dominant design drivers.