August 6, 2025 | BOMA International, Ella Krygiel
Warehouses are fundamental to our supply chain, enabling same-day delivery and supporting countless businesses’ daily operations. Despite developments in automation, robotics and AI that improve warehouse efficiency, these facilities bring important challenges that need addressing. Below, we’ll examine the biggest issues facing warehouses and explore some strategies moving forward.
Layoffs
A report published by executive coaching firm Challenger, Gray & Christmas this past month, found that layoffs across the United States climbed to their highest level yet since the pandemic hit the economy in 2020. These layoffs—and their widespread impact—are striking the manufacturing industry in a particularly aggressive way, with many companies choosing to “scale back” their operations. This movement has led to the mass layoffs we see infiltrating the news, such as the latest headlines below:
- The layoff wave hit the freight sector hard as nearly 9,000 jobs were slashed with workers in trucking, warehousing, food suppliers and manufacturing (Freight Waves).
- Retailer JCPenney is laying off 296 workers at a warehouse it is closing, just north of Fort Worth (Kera News).
- Detroil Axle will close Ferndale warehouse, laying off 102 employees (CBS News).
Among these layoffs, Tradlinx cites tariffs as a significant factor for the wave of closures, layoffs and bankruptcies swept across logistics and freight companies. They report that this, combined with shipping volumes down as much as 50% year-over-year, is causing the industry to experience a “structural disruption.” However, despite these numbers, several companies are working hard to attract and retain employees by introducing new opportunities such as automation to the sector.
According to Mark Sonnenberg, Executive Vice President and Partner at CRG, “Automation in the industrial and warehouse sector is transforming local economies.” He explains: “At The Cubes at Mesa Gateway in Mesa, Ariz., we’re seeing companies like Hadrian deploy highly automated, AI-driven manufacturing platforms that create more high-skilled jobs for local workers. Their facility, known as Factory 3, will add 350 new positions in the Southeast Valley, ranging from advanced machine operators to software technicians and production engineers.”
Environmental Issues
Warehouses require a lot of energy. According to Hecht Group, a manufacturing warehouse can consume up to 100,000 kilowatt hours of electricity each month. This is pushing companies to reduce their environmental impact, by switching to renewable energy, transitioning to energy-efficient lighting and utilizing electric vehicles, to name a few strategies. Sonnenberg shares some solutions that are helping his company build the next generation of industrial spaces with the power requirements, climate control and tech infrastructure that automation requires:
- ESFR sprinkler systems
- Fully climate-controlled environments
- EV charging
- Solar-ready roofs
An article by Reliable Plant also notes that upgraded HVAC and refrigeration systems are other viable solutions for optimizing energy efficiency in a warehouse. “These features not only attract forward-thinking companies but also provide the foundation for sustainable, high-paying employment in communities like Mesa,” Sonnenberg says. “It’s a win-win—workers gain access to 21st-century skillsets, and our economy becomes more resilient and globally competitive.”
While warehouses may struggle with energy efficiency, we would be remiss if we didn’t address their impact on air quality as well. According to a Consumer Reports article, the tiny particles of diesel and gasoline that emit from warehouses located in residential areas increases a person’s chance of getting asthma, developing cancer or having a heart attack. In addition, their research shows that traffic exposure is a major health hazard—especially as trucks emit large amounts of carbon dioxide, carbon monoxide, nitrogen oxides and particulate matter. This remains a significant challenge for folks located in residential areas near these warehouses—which plays a large role in the community impact section we discuss next.
Community Impact
Families residing in neighboring areas to warehouses experience a variety of challenges that may impact their quality of life. One part of this issue is noise pollution. A 2025 Warehouse Boom report determined that nearly five times more warehouse-generated diesel truck trips are estimated to have occurred over the last decade, compared to the prior decade. A family from the Consumer Reports article shared what it was like to live next to a 680,000 square-foot Amazon warehouse, describing how they would keep the TV on all night — in addition to a portable air conditioner — to drown out the noise of the 2,300 diesel truck trips.
Sonnenberg shares how his company is addressing these concerns: “We actively engage with municipalities, local agencies and residents to align our developments with long-term community goals. For example, The Cubes at Mesa Gateway is part of a master-planned park that was intentionally placed near key transportation arteries like State Route 24 and Loop 202 to minimize disruption and enhance access.”
In addition to noise pollution, the Warehouse Boom report outlined that New York “state-defined disadvantaged communities cover 8.1% of the state but contain 50% of warehouses.” This is important context as we consider the disproportionate number of residents living within a half mile of a warehouse, specifically people of color and low-income.
As Sonnenberg points out, “green buildings is just one side of the equation.” As we look ahead, the Clean Deliveries Act (S.1180A/A.3575), a bill that would require warehouse operators to choose from an array of actions to reduce pollution is “back on the table,” according to an Earth Justice article. This policy would recognize the reality that communities of color are disproportionately impacted by “health-harming diesel truck pollution and would help create a healthier and fairer future for all.”
“Ultimately, our vision is to develop industrial spaces that elevate communities — not just economically, but also environmentally and socially,” Sonnenberg says. “We’re proud that The Cubes brand reflects that mission.”
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