Complete Guide to Warehouse Project Labor: Material Handling, Installation and Decommissioning Services

Over the next year, companies plan to spend more than $400,000 on material handling equipment, automation, and IT solutions. And the amount they are investing is increasing. About a third of warehouse operators say they expect significantly more spending on material handling solutions in 2025 compared to last year. Even those with more modest budgets are adopting automation to reduce labor costs and improve throughput; 68% of those surveyed said they are accelerating modernization efforts.

What are they investing in? A 2025 survey by Modern Material Handling and Peerless Research Group shows investments are planned for:

• Automation and technology (64%)
• Forklifts and lift trucks (55%)
• Racking and storage equipment (36%)
• WMS and ERP system upgrades (32%)

With increased investments in material handling solutions, warehouse operators face a new challenge: specialized labor—not the day-to-day staff managing inventory, but project-based labor that can install, move, upgrade, or decommission equipment safely and efficiently.

Whether you’re launching a new automation system, expanding racking to maximize storage, or shutting down an underperforming site, specialized labor is essential. These aren’t basic maintenance tasks. They are complex engineering-driven projects that require coordination, technical skill, and risk management.

Why Warehouse Project Labor Is Different

Warehouse operations are becoming more expensive. Although average revenue has grown at an annual rate of 4.7% over the past five years, the average margins are declining. Add that to constantly changing consumer behavior and it’s been a rocky road for many warehouse operators who find themselves shifting as trends come and go.

These shifts often require physical changes to the warehouse, requiring the right project labor team to execute safely and cost-effectively.

Warehouse project labor is distinct from regular warehouse labor, including:

• New facility setups
• Warehouse expansions or redesigns
• Relocations and consolidations
• Equipment removal and shutdown

Project labor involves a broad range of certified professionals: OSHA-trained installers, riggers, millwrights, electricians, automation technicians, and safety coordinators. These roles are coordinated according to project phases, budgets, and site-specific needs. It’s not about covering shifts; it’s about matching the right type of labor with the project you’re undertaking.

Material Handling Installation: Getting It Right from Day One

Warehouse operators plan to spend more than $8 million in 2025 globally on racking as they modernize. Besides basic pallet racks, demand for multi-tier racking systems, AS/RS solutions, narrow-aisle racks, and automation-friendly racking are driving investments.

Proper material handling installation involves much more than simply bolting racks to the ground. Labor teams are responsible for:

• Staging and inventorying equipment
• Reading and interpreting CAD drawings
• Assembling components to specs
• Implementing safety measures
• Running system diagnostics

Skilled material handling labor includes racking installers, forklift operators, conveyor and robotics technicians, and integration professionals. You likely need engineering support as well, including stamped drawings, permits, and planning for inspections, especially when automation is involved.

Without experienced warehouse labor solutions, even well-planned installations can suffer delays, rework, or safety violations, and that can be costly.

Warehouse Expansions and Retrofits: Phased Labor Planning

Expanding an existing facility while maintaining operations is one of the most complex warehouse labor management challenges. Labor crews must work in stages, during off-hours, or in restricted zones to avoid disrupting day-to-day activity.

• Tasks often include:
• Modifying or removing existing racking
• Adding new racking and mezzanines
• Installing conveyors or AGVs
• Upgrading lighting, docks, and fire suppression systems

Managing multiple contractors can also be tricky. Overlaps might make it difficult to get work done and force some crews to sit idle, racking up hourly wages while waiting around for others to complete their job. Scheduling becomes critical for efficiency. Many warehouse operators prefer a single-source provider for material handling installations and labor management. A coordinated approach makes sure everything is phased properly from start to finish.

Facility Relocations and Consolidations

Relocating or consolidating warehouse operations also needs specialized labor. Experienced crews are needed to dismantle, label, and prepare equipment for safe relocation. Using regular warehouse workers or day hires runs the risk of damaging expensive equipment and driving up costs. Worse, damage could significantly delay completion and cause considerable downtime.

At the new facility, skilled workers must reinstall and recommission every component to match design specs, often integrating new equipment and tying systems together for a seamless throughput.

Some of the more labor-intensive tasks include:

• Dismantling racking and mezzanines
• Labeling and packaging for transport
• Floor marking and layout verification
• Safe transport and loading
• Assembly and functional testing at the new site

Facility relocation is a high-risk, high-reward scenario where experienced warehouse labor services can make the difference between a seamless move and weeks of disruption.

Facility Decommissioning

With advances in automation and a need to increase margins, a growing number of operators are shutting down nonperforming warehouses or consolidating and stripping out existing ones. When a warehouse is decommissioned, the labor demands are as rigorous as for a new installation. A complete facility decommissioning service typically includes:

• Racking tear-down and removal
• Power and data disconnection
• Disposal, resale, or recycling coordination
• Floor patching, debris removal, and environmental cleanup

A comprehensive material handling project should always include labor plans for the end-of-life phase.

Improper decommissioning can result in code violations, fines, or loss of lease deposits. If you plan to resell or liquidate equipment, you need it done properly to reduce damage and package equipment for shipment to optimize resale value.

Managing Labor Across Multi-Site Projects

For warehouse operators with multiple sites, managing labor across projects can be a logistical nightmare. Different subcontractors may use different safety protocols, install to different standards, or simply communicate poorly.

By working with a national labor provider, warehouse owners gain consistency, accountability, and speed. Benefits include:

• Unified safety training
• Standardized documentation and reporting
• Centralized communication and scheduling
• Scalable labor capacity for rollouts and rapid deployments

Whether you’re launching a regional fulfillment network or updating your racking systems nationwide, centralized warehouse labor management improves performance and reduces risk.

Technology Integration and Labor Needs

As automation and warehouse modernization accelerate, the demand for skilled labor extends beyond physical installation. Today’s material handling systems are deeply intertwined with software, controls, and networked infrastructure. That means labor teams must go beyond just installing equipment and integrate it seamlessly with your operational technology stack.

Installing conveyors, AS/RS systems, AGVs, or robotics now requires collaboration between mechanical installers, controls engineers, and IT professionals. Labor crews must understand how to position and power up the equipment as well as how to connect it to WMS, ERP, and PLC systems to ensure real-time visibility and coordination.

This often includes tasks like:

• Connecting equipment to a central controls panel or SCADA system
• Testing sensors, control logic, and safety interlocks
• Verifying network cabling, Wi-Fi connectivity, and server integration
• Supporting commissioning and load testing of automated systems

In modern facilities, downtime due to a misconfigured automation system can be just as costly as physical damage. That’s why you need warehouse labor providers who offer cross-functional expertise. It’s not uncommon for installers to work side-by-side with your IT team or automation vendors to complete a fully integrated build.

The more advanced your systems become, the more critical it is to have skilled labor that understands both the mechanical and digital layers of your operation. Labor planning now includes not just workers, but tech fluency. Investing in the right warehouse labor services ensures your automation works the way it’s supposed to from day one.

Pre-Project Planning and Site Readiness

Successful warehouse labor projects begin long before boots hit the floor. Site readiness and pre-project planning are often the hidden drivers behind on-time and on-budget execution. Without proper preparation, even the most skilled labor team can face unnecessary delays and avoidable rework.

Site Assessment

The first step is a comprehensive site assessment. This involves checking floor conditions for load-bearing capacity, confirming ceiling height and sprinkler clearance for high-bay racking, and identifying potential obstacles such as column spacing or dock accessibility.

Labor teams also evaluate whether staging areas are available to store incoming equipment before installation begins.

Engineering and Permitting

Permitting is another critical step. Many municipalities require stamped engineering drawings, seismic calculations, or special inspections before racking or automation systems can be installed. This makes early coordination with building inspectors, fire marshals, and facility managers essential.

Power and Lighting

Don’t overlook power availability and lighting, either. Adding conveyors, robotics, or AS/RS equipment means ensuring proper power distribution is in place before commissioning begins.

Likewise, clear communication about access points, shift schedules, and traffic flow helps prevent interference with ongoing warehouse operations.

Reduce Risk and Improve Efficiency

Pre-project planning is the best opportunity to reduce risk and increase efficiency. A coordinated labor partner will handle site verification, documentation, and scheduling logistics to ensure your warehouse is ready on day one and stays on track through project closeout.

Safety and Compliance Considerations

Warehouses are dynamic environments with multiple trades operating heavy equipment, working at height, and installing complex systems under strict timelines. Without rigorous safety and compliance measures in place, projects are vulnerable to costly incidents, downtime, or legal liabilities.

Experienced warehouse labor providers prioritize safety from the start. That means sending only OSHA-trained and site-certified personnel who have experience working in active warehouse environments. Specialized tasks like rigging, electrical work, or working on mezzanines require advanced certifications such as NFPA 70E, forklift operation, or fall protection training.

Site-specific safety plans (SSPs) need to be developed to align with your facility’s protocols. These plans may include daily safety briefings, job hazard analyses (JHAs), and proper PPE requirements for each trade. When multiple contractors are involved, clear roles and safety responsibilities must be established to prevent confusion.

Insurance and Liability Coverage

You will want to review your insurance and liability coverage as well as that of any contractors you hire. Reputable warehouse labor providers carry sufficient general liability, workers’ compensation, and umbrella policies to protect against unexpected events.

You should get documentation before starting a project and coordinate with your carrier to make sure coverage is adequate in line with your policies.

Documentation

All work should be documented from incident reports to inspection sign-offs to provide a clear paper trail of compliance. Whether you’re preparing for a safety audit or closing out a project, these records provide peace of mind that every standard has been met.

Choosing the Right Warehouse Labor Services Partner

When you’re looking for specialized labor, there are a few choices. Typically, local staffing agencies do not have workers with the specific skill sets needed for warehouse projects. Even if they do, they may not be able to handle the work efficiently. So, you want to look for a partner with teams of experienced installers and integrators. Look for:

• Proven industry experience with material handling projects
• Skilled crews with current certifications
• Ability to scale teams up or down as needed
• Clear safety protocols and project documentation

A strong labor partner provides:

• Turnkey installation and decommissioning
• Single-point project management
• Integration with equipment vendors and IT teams
• Transparent pricing and performance tracking

Avoid working with multiple subcontractors who may not coordinate effectively, if possible. A trusted labor services provider ensures smooth execution from planning to punch list.

Don’t Let Poor Labor Planning Delay Your Warehouse Project

Today’s warehouse projects are complex, expensive, and heavily dependent on labor execution. Whether installing new systems, upgrading existing facilities, relocating operations, or shutting down sites, the right warehouse labor solutions ensure safety, efficiency, and ROI.

Conesco Storage Systems can provide the full range of expert material handling solutions, warehouse labor services, and facility decommissioning service support. We have experienced installers, integrators, engineers, and warehouse planners to meet all of your needs. As one of the nation’s largest warehouse liquidators, we can also help you get top dollar for your used equipment.

Ready to execute your warehouse project with confidence? Request your free project consultation and discover how Conesco’s comprehensive labor solutions, engineering expertise, and equipment liquidation services can maximize your ROI while minimizing risk.