A leading executive with French warehouse robotics specialists Exotec, is calling on the UK government to follow the lead of Italy, by supporting business investment in automation through tax credits.

Asaf Curelaru, Exotec’s operations director for UK & Ireland, says automation needs to be supported as European warehousing and logistics operators face mounting pressure from persistent labour shortages, rising costs and growing demand for faster fulfilment. 

While acknowledging automation adoption is accelerating globally, the pace of investment in the technology differs “significantly” by country and region with Italy taking the targeted approach of incentivising automation investment through tax credit schemes for advanced machinery and robotics.

“Europe’s shift towards warehouse automation is being driven by a different set of pressures to other regions,” Curelaru says. “For many operators, the priority is not only speed or scale, but improving efficiency and unit economics while dealing with persistent labour shortages and rising operating costs.”

Through Italy’s Industry 4.0 and Transizione 4.0 programs, organisations investing in automated solutions can claim tax credits against investment costs, with credits up to 40% available on qualifying investments up to EUR2.5 million (USD2.9 million).

Curelaru argues these programs have helped make automation investment more attractive for businesses looking to modernise operations while responding to labour availability and productivity pressures.

“Labour availability is becoming one of the defining issues for warehouse operators in Europe,” Curelaru adds. “In the UK, turnover remains high, and many businesses are finding it difficult to build stable, scalable warehouse teams. 

“This makes automation increasingly relevant, not as a standalone answer, but as part of a broader strategy to improve resilience, productivity and consistency.”

Curelaru says rising warehouse costs and demand for greater storage density are also key reasons businesses need to invest in automation.

He adds that in the UK, government support for automation exists through broader mechanisms, but there is room for a more targeted conversation around automation adoption in warehousing and logistics.

“The UK’s limited targeted automation incentives risks leaving businesses at a competitive disadvantage,” Curealru continues. “While other countries encourage automation, UK businesses are having to fund these investments themselves, making automation projects difficult to justify despite mounting labour pressures. 

“The good news is that Italy has already shown what is possible — and the UK has every opportunity to follow suit.”

In August, the UK Government announced GBP20 million in funding for robotics and automation in the farming sector, through its Innovate UK innovation organisation which funds business and tech research.

The UK Government also funds, among other programs, GBP40 million (GBP54.6 million) in robotics adoption hubs and offers a GBP1 million (USD1.36 million) Annual Investment Allowance for businesses investing in new technologies.