Final answer:
Warehouse automation is growing rapidly due to advancements in technology that make automation more cost-effective and productive, integration with global supply chain efficiencies, and the scaling up of operations driven by Artificial Intelligence and increased global GDP.
Step-by-step explanation:
Warehouse automation is experiencing substantial growth due to several key reasons. First, technological advances have made automation more reliable and efficient, allowing for tasks such as bookkeeping, clerical work, and production assembly to be performed faster and at a lower cost than manual labor. Advances in technology have facilitated rapid adoption of new methods of production at very low marginal costs, increasing productivity growth. Secondly, a decrease in trade barriers and improvements in global transportation and communication have also supported the growth of warehouse automation; automated systems can integrate seamlessly into the global supply chain, reducing labor needs and costs in logistics.
Finally, with the advent of Artificial Intelligence (AI) and the global economy's increase in scale and complexity, there is a higher demand for systems that can manage large volumes of goods efficiently. AI is expected to contribute to significant growth in global GDP, which in turn spurs further investment in automating warehouses to optimize operations and meet increased demand. Despite concerns about labor displacement, the efficiencies gained from warehouse automation suggest its continued expansion.