The ROI of Automating Pallet Conveyor Systems
For manufacturing, logistics and distribution operations handling pallets, the move from manual or semi-manual pallet handling to a fully automated pallet conveyor system pays dividends.
By Diamond Phoenix
// 18 Dec 2025
For manufacturing, logistics and distribution operations handling pallets, the move from manual or semi-manual pallet handling to a fully automated pallet conveyor system pays dividends. In this blog, we dive into how you should evaluate ROI, measure savings and plan for success.
Why pallet conveyor automation is becoming essential
- The global pallet conveyor market is growing (e.g., expected to reach USD 2.84 bn by 2030 with CAGR ~5.8%) thanks to demand in e-commerce, manufacturing and food & beverage.
- Traditional pallet movement (forklifts, manual transfers) is labour-intensive and carries risk of damage, downtime or bottlenecks.
What ROI factors to include
| Factor | Description | Impact on ROI |
| Labour cost savings | Fewer operators handling pallets | Direct Opex reduction |
| Throughput increase | More pallets moved per hour | Higher capacity without more shifts |
| Damage / downtime cost | Less manual handling and fewer stops | Lower risk, higher uptime |
| Space and layout savings | Better flow, less staging area | Allows higher storage density |
| Integration & future scalability | Connects with WMS/WCS, robotics | Long-term value, less re-investment |
Step-by-Step: Building your pallet conveyor ROI case
- Baseline: Current pallet movement data (pallets/hr, labour £/hour, forklift hours).
- Define target: What throughput do you need? What labour savings are possible?
- Estimate investment: Cost of automated pallet conveyor system, integration cost.
- Calculate pay-back period: (Investment) ÷ (Annual savings) = Pay-back years.
- Risk-adjust: Account for installation downtime, change management, integration complexity.
- Monitor KPIs: After install, measure against baseline and refine.
Common mistakes to avoid
- Underestimating integration cost (control systems, WMS/WCS link)
- Ignoring change management (operators need training, process change)
- Choosing a “one-size-fits-all” solution vs tailored design (your business isn’t generic)
- Overlooking service & support (downtime kills ROI)
- Failing to plan for future growth (system must scale)
Why Diamond Phoenix is your ideal partner for pallet conveyor automation
- We specialise in large-order projects, for pallets, cartons and totes.
- Our process: 1-2 week quotation, experienced professionals onsite, full system integration expertise.
- 24/7 service and support ensure your investment is protected.
- We help calculate ROI, design the right system and future-proof your operation.
Automating pallet conveyor systems isn’t an optional upgrade, it’s a strategic investment that can deliver significant labour savings, capacity gains and enhanced flow. If you’re ready to build your business case or you want a tailored site-visit to evaluate how pallet conveyor automation can work for you, let’s talk.
