1. Increasing competition: As the demand for 3PL services grows, more companies are entering the market, resulting in heightened competition.

2. Rising customer expectations: Customers demand faster delivery times, higher levels of shipment visibility, and more personalized services.

3. Capacity constraints: During peak seasons, 3PLs may face capacity constraints as they try to meet the growing demand for their services.

4. Talent shortage: The logistics industry is facing a shortage of skilled workers, making it difficult for 3PLs to find and retain talent.

5. Global economic uncertainty: Global economic uncertainty, geopolitical tensions, and trade policy changes can impact supply chain and logistics operations, presenting challenges for 3PLs.

Therefore, more 3PL companies are seeking warehouse automation solutions to improve their operations and stay competitive in the market.