The manufacturing industry is no stranger to soaring costs. In 2025, the industry has been impacted by labor shortages, tariff pressures, slowing demand, higher material costs, and more, each contributing to higher operational costs. These challenges also heighten uncertainty among manufacturers and facility managers, forcing them to rethink current strategies and infrastructure investments to navigate ongoing headwinds.

One key consideration for enabling market agility and building resilience is the focus on smart warehousing technologies and systems that support operations and boost productivity. A 2025 Deloitte report found that 80% of the 600 manufacturing executives surveyed plan to invest in smart manufacturing initiatives in 2026 to combat growing uncertainty. The technologies and tools that support these initiatives range from automated systems, data analytics, robots, sensors, and more.

Automated Guided Vehicle (AGV) and Automated Mobile Robot (AMR) fleets are becoming essential tools in the cost-management conversation, unlocking benefits like improved throughput, increased employee productivity, and greater overall capacity. In this piece, we’ll explore the benefits of AGV/AMR systems in reducing costs, as well as the key infrastructure considerations for facility managers to ensure they’re making the most of their fleet technology.

Relying on AGVs/AMRs to Manage Operational Costs

AGV/AMR systems are designed to do more with less. Moving more materials through a facility with less manual intervention. While investing in AGV/AMR technology requires an upfront cost, the long-term pay-off is hard to ignore. Below are a few key benefits of using AGV/AMR technology to reduce costs.

Lower Labor Costs

AGVs/AMRs help reallocate everyday tasks, taking on repetitive processes like moving materials throughout the value chain. This allows skilled workers to assume higher-value roles without sacrificing throughput. Once facilities begin to rely on automated fleets, they can more accurately predict their operating budgets because labor availability fluctuations are reduced.

Improved Uptime

Autonomous material movement helps to reduce bottlenecks between workstations and keep operations running at peak efficiency. Fewer production interruptions – from human error, delays, or misrouting – ensure projects are completed on time. Having a reliable fleet also allows facilities to handle greater capacity.

Increased Safety

AGV/AMR systems reduce incident-related costs, including downtime, worker compensation, and equipment damage. The ability to track fleet movements, charging patterns, and status indicators improves equipment and worker safety. By analyzing the type of data these systems collect, operators and managers can predict fleet shutdowns and equipment run-ins and optimize schedules to maintain a safe manufacturing floor.

Investing in the Right Infrastructure to Support Fleets

It’s important to note that simply investing in AGV/AMR technology is not enough to ensure efficient production and accurate cost management. An important, and often-overlooked, consideration for facility managers when adopting mobile robots is a well-engineered charging strategy. There is a strong connection between fleet power management and automation ROI.

Today’s facilities demand automation that is intelligent, mobile, and always available. This increased demand means facilities are deploying mixed fleets composed of vehicles from multiple manufacturers, each with different energy needs and communication protocols. Understanding the charging interfaces, connectors, or software control systems that mixed AGV/AMR fleets require is critical to operational success. The two primary charging methods – conductive and inductive – both provide unique advantages across fleets depending on the application.

Additionally, when considering charging infrastructure, it’s essential to invest in systems that can grow alongside fleets while also collaborating with charging technology providers early in the design process. Partnerships with charging technology providers can streamline vehicle design, ensure compliance with relevant standards, and facilitate certification testing for global markets. This type of collaboration can also limit the need for costly downtime or reconfigurations over time.

Automation as a Long-Term Cost Strategy

As we move into the new year, market uncertainty will remain ever-present. However, adopting smart manufacturing strategies today sets the foundation for cost advantages that grow exponentially over time. Technologies like AGVs/AMRs are no longer simply cutting-edge innovation projects – they are cost-management tools that can propel manufacturers ahead of their competition. The time is now to invest in scalable, cost-efficient automation deployments, keeping in mind the importance of power and data delivery solutions that support consistent, productive operations.

Brian Cook is the Director of Product Development at Conductix-Wampfler, a global leader in mobile electrification and data transfer systems for industrial machinery. In this role, he oversees new product planning and execution, collaborating closely with engineering teams to accelerate time-to-market and deliver innovative solutions that support automated material flow and efficient energy/data management for mobile equipment.