Warehouse Labor Costs and Planning: Budgeting for Project Success

Fair warning. This statistic might give you heartburn if you’re planning a warehouse project: 98% of construction projects face delays. On average, projects go more than a third longer than estimated. The entire time, your warehouse labor costs  are rising. Downtime eats into profits. And you may be missing important deadlines that impact your reputation or have financial implications.

Whether you’re installing new racking, reconfiguring a layout, adding automation, or decommissioning a facility, warehouse projects demand more than materials and equipment. They require specialized labor and smart warehouse labor planning to finish on time and on budget.

Warehouse Labor Costs in Project Planning

Materials, equipment, and contractors often dominate a project plan. But labor? It’s frequently an afterthought. But that’s a critical mistake. Failing to plan can be costly.

Warehouse planning plays a central role in keeping project timelines and budgets under control. When labor needs are underestimated, you can face cascading delays, rushed work, and last-minute scheduling conflicts. You typically need specialized skills that go beyond what day laborers or warehouse workers handle. You need materials handling experts who are trained for specialized tasks.

Projects That Require a Specialized Labor Approach

Warehouse projects can be significantly different, and the labor you need is different, too. Here are some of the more common scenarios that need strategic warehouse planning.

Racking System Installation

Precision is key when installing pallet racking or multi-level pick modules. Improper installation can lead to safety hazards, structural issues, or failed inspections.

Automation and Conveyor Integration

More than half of warehouse operators say investment in automation is in the budget for 2025. Pick stations, conveyors, sortation systems, automated shuttles, AGVs, or AS/RS solutions all require specialization and coordination between electricians, technicians, and installers.

Layout Changes and Expansions

Shifting aisles, moving racking, or repurposing space while maintaining operational flow demands skilled crews who can work quickly and safely without disrupting operations.

Facility Transitions

When moving operations from one facility to another, everything from disassembly to transport to reassembly needs to be tightly choreographed.

Warehouse Closures and Strip-Outs

Dismantling racking, removing equipment, and restoring the facility to lease conditions involves a precise, high-pressure timeline. Mistakes can lead to property damage or missed handoff deadlines. Poor disassembly practices can seriously impact resale potential.

These projects aren’t for general laborers. Each one requires trained professionals who understand warehouse systems, safety codes, and operational pressures.

What Drives Warehouse Labor Costs Out of Scope?

Your warehouse planning typically starts with looking at the hourly rate or overall project cost. In reality, warehouse labor costs are about much more. If things don’t go smoothly and on schedule, the costs can rise significantly.

Here are the most common culprits:

• Underestimating crew size or skills: Assigning too few workers, or the wrong type of worker, can slow a project to a crawl. Inexperience leads to mistakes that must be fixed later.
• Poor scheduling or sequencing: If labor crews aren’t aligned with material deliveries or equipment installers, projects stall. Crews may be idle, or worse, leave before tasks are complete.
• Last-minute labor sourcing: Scrambling to find labor can result in hiring underqualified workers at premium rates. It also increases the risk of safety violations or compliance issues.
• Inefficient workflows: Without a team experienced in managing projects, tasks often take longer than expected. Incomplete knowledge of warehouse systems can lead to unnecessary steps or damage.

These indirect issues can become direct costs, and quickly.

These issues directly increase warehouse labor costs and can extend your project timeline significantly.

Effective Warehouse Labor Planning for Projects

Effective warehouse labor planning follows a few best practices to stay on track.

Identify Specialized Roles Early

Will your project require certified racking installers, welders, forklift operators, or technicians? Do you need help with your warehouse layout design, engineering, or permitting?

Build that into the plan from the start.

Align Labor with Project Phases

You don’t need every type of worker on site at the same time. Stage crews to match project phases or rely on an experienced material handling company like Conesco Storage Systems to manage the project for you.

Account for Safety and Compliance

Specialized warehouse projects often require adherence to OSHA, fire code, or seismic standards. The right crews will already understand these requirements and ensure you remain compliant.

Coordinate With Vendors and Trades

Your warehouse planning  must connect with outside vendors to avoid overlap, conflict, or delay.

A Partner for Skilled Warehouse Labor

Whether you’re building from scratch, upgrading, or decommissioning, project success depends on having the right team. Conesco Storage Systems can help you with every phase of your warehouse planning and provide experienced labor for:

• Racking system installations and dismantling
• Conveyor and equipment removal
• Full warehouse strip-outs
• Facility transitions and closures
• Automation installations and integrations

With Conesco, you get a team that knows how to work efficiently in warehouse environments, meet deadlines, and adhere to safety protocols. Our crews are trained for the unique demands of warehouse infrastructure projects, helping you avoid costly delays and mistakes.

Contact Conesco Storage Systems for your next warehouse project and get expert warehouse planning and specialized labor for projects of all sizes. Call (303) 690-9591 or contact us online for a free consultation.