Shreveport, Louisiana, fulfillment center uses eight different robot models: Sequoia, Robin, Cardinal, Sparrow, Proteus, Hercules, Titan, and an automated packager.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
Mega-retailer Amazon says its newest fulfillment center, located in Shreveport, Louisiana, uses 10 times more robots than previous warehouse designs, and relies on artificial intelligence (AI) to direct the eight different models deployed in its bustling operation.
“Over the years, we’ve built and scaled the world’s largest fleet of industrial robotics that ease tasks for employees and improve operational safety while creating hundreds of thousands of new jobs along the way,” the company said in a blog post Wednesday. “For the first time, we have introduced technology solutions in all key production areas at the site, meaning our employees will work alongside our growing fleet of robotic systems seamlessly in a way that wasn’t possible until now.”
The Shreveport site spans five floors and more than 3 million square feet—equivalent to 55 football fields—making it one of Amazon's largest sites. It will employ 2,500 employees once it’s fully ramped up.
The technology at the center of the huge building is called Sequoia, a “multilevel containerized inventory system” that can hold more than 30 million items, making it five times bigger than Amazon’s first deployment of that system in Houston, Texas.
As inventory and packages move through the facility, Robin, Cardinal, and Sparrow—an AI-powered trio of robotic arms—sort, stack, and consolidate millions of items and customer orders. The latest version of Sparrow uses computer vision and AI systems that give it the versatility to handle over 200 million unique products of all different shapes, sizes, and weights.
And Proteus, which Amazon calls its “first fully autonomous mobile robot,” navigates carts of packages to the site’s outbound dock so they can be loaded into trucks, while safely moving around employees in open spaces. The remaining three robot models include larger AMRs called Hercules and Titan and a packaging automation system that creates custom-sized packages to fit each order’s dimensions.
Although the increased automation allows the facility to handle more orders than older sites, Amazon insists it is not replacing workers’ jobs. “As we deploy this new generation of robotics across our network, we expect our headcount to continue to grow and we’re really excited by how this technology also creates more opportunities for skilled jobs. In fact, our next-generation fulfillment centers and sites with advanced robotics will require 30% more employees in reliability, maintenance, and engineering roles,” the company said.
According to Amazon, it trains workers for skilled jobs by helping them earn certifications through a corporate “Career Choice program” and a “mechatronics and robotics apprenticeship” that provides hourly wages up to 40% higher than entry-level roles.
Facing an evolving supply chain landscape in 2025, companies are being forced to rethink their distribution strategies to cope with challenges like rising cost pressures, persistent labor shortages, and the complexities of managing SKU proliferation.
1. Optimize labor productivity and costs. Forward-thinking businesses are leveraging technology to get more done with fewer resources through approaches like slotting optimization, automation and robotics, and inventory visibility.
2. Maximize capacity with smart solutions. With e-commerce volumes rising, facilities need to handle more SKUs and orders without expanding their physical footprint. That can be achieved through high-density storage and dynamic throughput.
3. Streamline returns management. Returns are a growing challenge, thanks to the continued growth of e-commerce and the consumer practice of bracketing. Businesses can handle that with smarter reverse logistics processes like automated returns processing and reverse logistics visibility.
4. Accelerate order fulfillment with robotics. Robotic solutions are transforming the way orders are fulfilled, helping businesses meet customer expectations faster and more accurately than ever before by using autonomous mobile robots (AMRs and robotic picking.
5. Enhance end-of-line packaging. The final step in the supply chain is often the most visible to customers. So optimizing packaging processes can reduce costs, improve efficiency, and support sustainability goals through automated packaging systems and sustainability initiatives.
It’s getting a little easier to find warehouse space in the U.S., as the frantic construction pace of recent years declined to pre-pandemic levels in the fourth quarter of 2024, in line with rising vacancies, according to a report from real estate firm Colliers.
Those trends played out as the gap between new building supply and tenants’ demand narrowed during 2024, the firm said in its “U.S. Industrial Market Outlook Report / Q4 2024.” By the numbers, developers delivered 400 million square feet for the year, 34% below the record 607 million square feet completed in 2023. And net absorption, a key measure of demand, declined by 27%, to 168 million square feet.
Consequently, the U.S. industrial vacancy rate rose by 126 basis points, to 6.8%, as construction activity normalized at year-end to pre-pandemic levels of below 300 million square feet. With supply and demand nearing equilibrium in 2025, the vacancy rate is expected to peak at around 7% before starting to fall again.
Thanks to those market conditions, renters of warehouse space should begin to see some relief from the steep rent hikes they’re seen in recent years. According to Colliers, rent growth decelerated in 2024 after nine consecutive quarters of year-over-year increases surpassing 10%. Average warehouse and distribution rents rose by 5% to $10.12/SF triple net, and rents in some markets actually declined following a period of unprecedented growth when increases often exceeded 25% year-over-year. As the market adjusts, rents are projected to stabilize in 2025, rising between 2% and 5%, in line with historical averages.
In 2024, there were 125 new occupancies of 500,000 square feet or more, led by third-party logistics (3PL) providers, followed by manufacturing companies. Demand peaked in the fourth quarter at 53 million square feet, while the first quarter had the lowest activity at 28 million square feet — the lowest quarterly tally since 2012.
In its economic outlook for the future, Colliers said the U.S. economy remains strong by most measures; with low unemployment, consumer spending surpassing expectations, positive GDP growth, and signs of improvement in manufacturing. However businesses still face challenges including persistent inflation, the lowest hiring rate since 2010, and uncertainties surrounding tariffs, migration, and policies introduced by the new Trump Administration.
Atlanta, GA, Feb 6, 2025 - Today Exotec®︎, a global warehouse robotics provider, announced the commercial launch of the Next Generation of Skypod®︎ system with higher performance, improved storage density, and advanced software features.
The Next Generation of Skypod comes with a number of design improvements including a new and more compact Skypod robot, a workstation for robot-to-robot picking, high-throughput Exchanger, and denser storage. These redesigns combined with new software features improve the throughput at a single workstation by 50% while also enhancing storage density up to 30% compared to the previous generation.
The key differentiator for the Next Generation of Skypod is the ability to handle both each and case picking, positioning Exotec to better address multichannel needs with a single solution. The system also natively supports a number of value-added logistics features that traditionally require external equipment and complex subsystems. This not only enables customers to simplify the flow of goods through the warehouse, but also significantly shrinks the system footprint by cutting down the need for conveyors, sorters, external storage, and packing stations.
Specifically, the Next Generation of Skypod supports:
Integrated Buffer: Next-Gen Skypod handles buffering within the system. Following order preparation at the Workstation, completed or semi-completed orders get automatically stored inside the racks until they are ready for outbound, or further consolidation. This helps reduce the need for staging areas or any other external buffer systems.
Perfect Sequencing: Next-Gen Skypod handles strict outbound sequencing prior to ejecting orders by using robots and the Exchanger. The robots group orders and deliver them in a specific arrangement to the Exchanger, which then routes the orders to outbound. This enables precise loading of pallets, containers, or trucks based on delivery routes, store planograms, or other unloading requirements, all without the need for external sorting equipment.
Pick-and-Pack: Next-Gen Skypod handles packing as an integrated part of the picking process. Operators pick directly into fulfillment containers, removing the need for manual packing operations downstream. This functionality pairs extremely well with right-size packaging solutions. These solutions can be integrated with Next-Gen Skypod to enable picking into right-size containers, significantly cutting last-mile costs.
“When designing the Next Generation Skypod, our goal was to create a solution that would set the industry standard of operational excellence and elegance for the next decade and beyond," said Romain Moulin, CEO and co-founder of Exotec. “We’re already seeing our customers reimagine their entire supply chain around the transformative capabilities of this innovation, from combining case and each picking operations to leveraging outbound sequencing to improve transportation costs. Witnessing this level of impact has been incredibly rewarding.”
Exotec developed the Next Generation of Skypod in response to evolving market needs and feedback from the existing customer base, which increasingly demands warehouse robotics to address a wider range of processes within the warehouse walls. Over the past two years, Exotec has sold and deployed the Next Generation Skypod system globally in stealth mode. The company has successfully secured over 20 projects worldwide, totaling $400M to customers including Oxford Industries (Tommy Bahama, Lilly Pulitzer, Southern Tide, etc.), Grainger, and E.Leclerc to strengthen their supply chain operations.
“We chose Exotec for its storage density and its operational flexibility. Robotic advancements have enabled us to set up a larger buffer area for prepared orders within the system,” said Maxence Maurice, CEO E. Leclerc Seclin. “Previously, I estimated that the customer journey, from arriving at the drive to leaving with their groceries, took between 10 and 15 minutes. Today, with the Exotec solution, it takes less than 5 minutes.”
For more information on the Next Generation of Skypod system, please visit www.exotec.com.
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About Exotec Exotec is a global warehouse robotics company powering the world's largest brands. The company combines the best of hardware and software to offer elegant warehouse robotic systems that drive operational efficiency, add resiliency, and improve working conditions for warehouse operators. 50+ industry-leading brands including Gap Inc., Carrefour, Decathlon, and UNIQLO trust Exotec to improve their operations across 100+ sites worldwide.
Walk into any high-velocity distribution facility and you'll immediately grasp the complexity: dozens of forklifts move in orchestrated patterns while automated systems hum along conveyor lines, all working to meet demanding throughput targets. Yet what remains invisible to the casual observer is how maintenance challenges can bring this carefully choreographed dance to a halt.
For facilities moving millions of pieces weekly, maintenance demands fundamentally different solutions. The traditional approach to material handling maintenance that works for smaller operations isn't just constraining productivity—it's holding back your entire operation.
Warning signs that you need an upgrade
For facility leaders managing 40+ forklifts and complex material handling systems, the warning signs often hide in plain sight. The first clear indicator that your current maintenance strategy isn't keeping pace with your high-velocity facility appears when equipment downtime increasingly affects your ability to meet throughput targets. This challenge is compounded by climbing rental equipment costs as you struggle to compensate for unavailable machinery. The human impact becomes evident when floor supervisors and staff begin expressing mounting frustration about not having the machinery they need available to do their job.
More concerning still, safety incidents related to equipment issues may become more frequent, creating both operational and liability risks. The financial strain finally manifests in mounting overtime costs because you simply don't have enough functioning equipment to run operations efficiently. These interconnected issues signal a maintenance strategy that needs urgent reevaluation and restructuring.
If these symptoms sound familiar, you're not alone. Many high-velocity facilities have outgrown the same maintenance principles they applied as a smaller operation, only to find them inadequate at scale.
The scale challenge
The complexity of a large facility creates unique challenges that make traditional maintenance approaches insufficient. Equipment diversity presents a significant hurdle, as larger facilities must manage multiple types of forklifts, automated systems, and specialized equipment, each requiring different maintenance expertise and parts inventories. Communication complexity also poses a major challenge—while information flows easily in smaller facilities where everyone knows the status of every piece of equipment, this informal communication breaks down in large operations with multiple shifts.
The scale of impact becomes exponentially more significant in high-velocity facilities, where a single forklift breakdown in a critical area can impact dozens of downstream processes. Maintenance timing presents another crucial challenge, as continuous operations and high utilization rates make it increasingly difficult to find maintenance windows, and waiting for equipment to fail is simply not an option.
Building a maintenance strategy that matches your scale
High-velocity facilities require a transformed maintenance approach, not just scaled-up traditional processes. This starts with dedicated on-site teams who develop deep facility knowledge and conduct preventive maintenance strategically during optimal windows. Smart inventory management of parts ensures critical components are always available without overstocking, while data-driven systems help track equipment performance patterns and guide future investment decisions.
Before investing millions in facility expansion or automation, consider this: Implementing proper maintenance strategies can boost productivity 10%-20% at a fraction of the cost of facility expansion or automation. This comprehensive approach leads to reduced equipment downtime, improved safety outcomes, and enhanced staff satisfaction by transforming maintenance from a reactive necessity into a proactive tool for operational excellence.
Ready to transform your maintenance strategy? Here are the key steps to implementation:
Start with a thorough assessment phase, reviewing safety incidents, analyzing current maintenance costs, and evaluating how maintenance affects facility key performance indicators (KPIs).
Develop tailored processes by establishing proper preventive maintenance procedures and implementing robust data collection protocols.
Structure your maintenance team effectively, with clear roles, communication protocols across shifts, and comprehensive training programs.
By taking this methodical approach to maintenance strategy, facilities can achieve operational excellence without the massive capital expenditure typically associated with major operational improvements. The key lies not in maintaining more, but in maintaining smarter.
In today's fast-paced distribution environment, your maintenance strategy can't be an afterthought—it needs to be as sophisticated as your operations. In high-velocity facilities. Maintenance isn't just about fixing equipment, it's about maintaining productivity, safety, and competitive advantage. The time to evolve your maintenance strategy is now, before considering more costly alternatives. Your facility's full potential depends on it.
About the Author: Cory Monroe is Regional Sales Director at Concentric, a national distributed power services organization specializing in maintenance and power solutions that deliver resilient and sustainable facility systems for critical power and forklift mobility.
By the numbers, global logistics real estate rents declined by 5% last year as market conditions “normalized” after historic growth during the pandemic. After more than a decade overall of consistent growth, the change was driven by rising real estate vacancy rates up in most markets, Prologis said. The three causes for that condition included an influx of new building supply, coupled with positive but subdued demand, and uncertainty about conditions in the economic, financial market, and supply chain sectors.
Together, those factors triggered negative annual rent growth in the U.S. and Europe for the first time since the global financial crisis of 2007-2009, the “Prologis Rent Index Report” said. Still, that dip was smaller than pandemic-driven outperformance, so year-end 2024 market rents were 59% higher in the U.S. and 33% higher in Europe than year-end 2019.
Looking into coming months, Prologis expects moderate recovery in market rents in 2025 and stronger gains in 2026. That eventual recovery in market rents will require constrained supply, high replacement cost rents, and demand for Class A properties, Prologis said. In addition, a stronger demand resurgence—whether prompted by the need to navigate supply chain disruptions or meet the needs of end consumers—should put upward pressure on a broad range of locations and building types.