AutoStore Holdings — A cycle like no other

AutoStore is a structural growth story in a cyclical market. The mechanisation and automation of warehouses is a structural trend because labour in developed markets is becoming increasingly expensive, largely because the available workforce is shrinking. However, these are large capital projects and customer willingness to invest is sensitive to economic certainty and cycles. Recent tariff moves have left certainty in short supply and, as investing in new warehouse automation can be easily deferred, the impact has been obvious. Management believes it is at the bottom of an unnecessary cycle.