From Parcel to Full-Service Fulfillment: Where Warehouse Automation Is Headed in 2026

Tariffs, geopolitical shocks, delayed capital projects — the last two years have taught those in the material handling industry to operate in a permanent state of “wait-and-see.” Most warehouse automation and systems integrators felt it in their order books.

DCS didn’t.

According to Seth Taylor, Executive VP of Operations at DCS (pictured at right) who contributed input to STIQ Ltd.’s Market Report: System Integrators, 2026, DCS had its best year yet in 2025, noting: “In 2025, we delivered record-breaking revenue and profit all while completing more projects than at any other time in our company’s history.”

That performance didn’t happen by accident. Instead, it’s the product of a deliberate, decade-long shift in DCS’s focus.

Taylor noted that the current leadership team joined roughly 8–10 years ago, back when the business focused almost exclusively on the parcel market.

“Since then, DCS has steadily expanded our capabilities, expertise, and service offerings,” he said. “Today, our business has evolved to the point where distribution and fulfillment solutions represent over 50% of our portfolio.”

Taylor further explained that the reasons behind DCS’s success in 2025 also say a lot about where the industry is headed next.

Parcel and E-Commerce Investment Continues

The STIQ report points to positive growth in e-commerce investments, with Taylor citing continued investment across the parcel sector.

He’s quoted in the publication as saying, “Network transformations and modernizations are still occurring across the [parcel] industry. Some companies are consolidating multiple business units into more streamlined networks. Others are looking for automation solutions to reduce their reliance on labor. Some simply need to update end-of-life equipment.”

DCS Projects Include Both Greenfield and Brownfield

Much of the industry narrative in 2026 has centered on a swing toward brownfield and retrofit work as automation ages out and real estate stays tight.

DCS’s numbers tell a slightly different story. Taylor noted that greenfield work currently makes up roughly 50–60% of DCS’s business, even as large retrofit projects continue in parallel. He reported that DCS currently has several sizable greenfield distribution center design and implementation projects underway.

Shorter Life Cycles Put Flexible Systems, Phased Deployments in Demand

One of Taylor’s forward-looking points in the STIQ report concerns the pace of change itself. He described significantly shorter life cycles pushing customers to revisit their business plans and rework their fulfillment networks far more often than in the past. Taylor sees this as a core driver behind the shift toward more adaptable systems.

That thinking connects directly to how DCS is now structuring project delivery. Rather than locking customers into a single, monolithic system designed around a decade-long forecast, DCS is increasingly building projects around phased and program-based deployment.

Taylor described organizations becoming more intentional and strategic about warehousing automation and material handling systems integration.

“We are starting to see many clients move toward phased approaches, whether at the individual project level, or through program-based deployments,” he said. “Given the current economic environment, organizations are being more deliberate about capital investments and are seeking greater flexibility in how they execute initiatives. Our ability to scale solutions and implement them over an extended timeframe allows clients to manage risk while still realizing value incrementally.”

In today’s environment, customers no longer want to bet everything on a single seven-to-ten-year forecast. That means flexibility is becoming as equally important a differentiator as the hardware itself.

Moving Earlier in the Project Lifecycle

In the STIQ report, Taylor also discussed DCS’s strategic acquisition of Waller Consulting. Taylor framed the deal as a way to further expand the value DCS brings to clients by strengthening its upstream consulting capabilities.

“The acquisition allows us to engage with customers much earlier in the project lifecycle,” he said. “Instead of stepping in once a system has already been specified, DCS can now help clients identify the underlying business need, develop strategy, and shape a solution — all before supporting them through implementation.”

It’s a move that mirrors a broader trend STIQ identifies across the sector. The report notes that warehouse systems integrators are increasingly competing not just on hardware and software, but also on their ability to act as trusted advisors from the very first conversation.

Future-Proof Your Next Distribution Project with DCS

Whether you’re planning a greenfield facility, modernizing an existing network, or just trying to figure out where to start, DCS brings the upstream consulting expertise and phased deployment approach to help you build a solution that scales with your business. Connect with the DCS team to discuss ways to future-proof your next project.

Quotes and data referenced from STIQ Ltd’s “System Integrators, 2026” report.
Source: STIQ Ltd, 2026 System Integrator report.