Toyota Material Handling has reported a significant increase in enquiries for its automated and robotic warehouse solutions following the UK government’s decision to raise National Insurance (NI) employer contributions in the Autumn Budget Statement.
The increase, which sees NI contributions rise from 13.8% to 15%, combined with a lower salary threshold for employer payments, is adding substantial costs to payroll expenses across the logistics sector.
According to Toyota, for companies employing forklift truck operators, the changes will add approximately £800 per operator, per year to staff costs for businesses employing drivers on an annual salary of £23,400 – the UK average for lift truck operators, according to Talent.com.
“Interest in automation was already high due to ongoing labour shortages, but since the Chancellor’s announcement, the number of serious enquiries about robotics and automation has risen significantly,” said Paul Freeman, head of business development at Toyota Material Handling.
With operational costs under increasing scrutiny, investment in warehouse automation is expected to continue rising as companies seek to mitigate the impact of higher labour costs and workforce shortages.
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