German, Logistics

German Logistics Sector Sees High-Tech Expansion Amid Fire Losses and Cyber Threats

Published on 07/05/2026 at 23:24 | Redaktion boerse-global.de

Two major fires cost tens of millions in damages, spotlighting safety risks as German logistics embraces automation, digital twins, and AI surveillance amid rising cyber threats.

German Logistics: Fires, Cyberattacks, and Automation Reshape Warehousing
German Logistics Sector Sees High-Tech Expansion Amid Fire Losses and Cyber Threats Illustration mit AI erstellt übermittelt durch boerse-global.de

Two major fires over the weekend inflicted damages in the tens of millions of euros, casting a spotlight on safety risks even as German logistics companies push ahead with automation, digital twins, and AI-powered surveillance.

On July 4, a blaze at Stuttgart’s wholesale market caused losses reaching a double-digit million-euro figure. The next day, a warehouse in Oranienburg also went up in flames. The incidents underscore the need for strict safety protocols, a message amplified by the industry’s growing reliance on complex, capital-intensive equipment.

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Meanwhile, cyberattacks have become a routine hazard. According to Bitkom, 87 percent of German companies were hit in 2025, racking up a total damage bill of more than 289 billion euros.

New Facilities Rise — and One Major Hub Faces Closure

Even as investment pours into modern logistics infrastructure, the human cost is visible in Erfurt. Zalando’s logistics center there is slated to shut at the end of September, threatening around 2,100 jobs. The works council is ratcheting up pressure ahead of a crucial negotiation round on July 9, where a social plan is on the table.

Contrast that with Scheidt & Bachmann, which opened a new logistics center in Mönchengladbach on July 4. Roughly 12 million euros were spent on the project, completed in under a year, with the goal of making material flows and storage significantly more efficient.

In Werdohl-Dresel, service provider CES leased about 8,500 square metres of warehouse space on a former industrial site. Investments in the millions are planned there.

Racking Up Efficiency

At the heart of modern warehousing are shelving systems finely tuned to conveyor technology. Companies track metrics like floor-space utilisation and picks per hour. For heavy loads, specialised metal racks are gaining ground — SimonRack, for example, now offers models that support up to 400 kilograms per shelf level.

A market overview of 29 intralogistics suppliers puts the payback period for such systems at between two and five years. Implementation of complex setups takes six to 36 months.

Just-in-Time, Cold Storage, and Drones

Many firms are adopting just-in-time principles to free up capital, which demands high digital planning depth and reliable suppliers. In cold-chain logistics, automation is gaining traction alongside urbanisation.

One illustration: Nikko Sangyo Transport is working with Daifuku to fully automate a deep-freeze warehouse. Mobile pallet racks can in some cases double capacity there.

Stationary tech is being supplemented by mobile monitoring. On July 5, an AI-powered indoor drone was unveiled, equipped with a special camera system for low-light conditions, designed to improve inventory management and security.

Digital Twins Cut Downtime

Digital twins are emerging as a key tool for saving resources. They allow firms to optimise processes virtually before deploying them physically. Combined with artificial intelligence, they save energy and raw materials; predictive maintenance reduces downtime.

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Challenges persist, however: ensuring data quality and covering the high initial investment.

Labour Market Strains

Demand for skilled workers remains intense. In Wilhelmshaven alone, 17 logistics jobs were advertised in early July, with hourly wages up to 23.39 euros.

The German logistics association DSLV is pressing for political reforms. The current government reform programme is a first step, the group says, but calls for further relief on energy costs and consistent red-tape cutting.

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